Financial Position - As of March 31, 2023, the company had cash of approximately $340,000 and negative working capital of approximately $1,364,000[100]. - As of March 31, 2023, the company has no long-term debt, capital lease obligations, or operating lease obligations[117]. - The company has no obligations, assets, or liabilities considered off-balance sheet arrangements[116]. Operational Performance - For the three months ended March 31, 2023, the company reported a loss from operations of approximately $1,045,000, primarily due to public company costs and expenses related to searching for a suitable business combination[103]. - The company incurred other expenses of approximately $1,114,000 for the three months ended March 31, 2023, reflecting an increase in the fair value of warrant liabilities[105]. - An aggregate of approximately $249,000 was charged for operations for the three months ended March 31, 2023[118]. Revenue Generation - The company has not generated any revenues to date and will not do so until after completing its initial business combination[101]. Interest Income - Interest income for the three months ended March 31, 2023, was approximately $3,655,000, significantly higher than the $25,000 reported for the same period in 2022 due to increased interest rates[106]. Initial Public Offering and Trust Account - The net proceeds from the initial public offering were approximately $343,940,000, with about $340,930,000 deposited into the Trust Account[107]. - The company plans to use substantially all funds in the Trust Account to complete its initial business combination and cover taxes[108]. Business Combination Plans - If the company cannot complete a business combination before October 1, 2023, it may be forced to liquidate unless it receives an extension approval from shareholders[111]. - The company has engaged in discussions with potential business combination partners but has not yet entered into a definitive agreement[97]. - The company expects to incur significant costs in pursuing an initial business combination, which may continue to increase substantially[101]. Compensation and Administrative Costs - The company pays Hennessy Capital Group LLC $15,000 per month for administrative support[117]. - Compensation for the President and Chief Operating Officer, as well as the Chief Financial Officer, is $29,000 per month, with $14,000 payable upon the completion of the initial Business Combination[118]. - Deferred compensation related to key personnel amounts to approximately $691,000 from September 29, 2021, to March 31, 2023[118]. Financing Considerations - The company does not expect to raise additional funds following the initial public offering to meet operating expenditures[114]. - If the cash portion of the purchase price exceeds the amount available from the Trust Account, the company may need to seek additional financing[114]. - The company may enter into engagement letters with consultants and advisors for the initial Business Combination, which may include contingent or success fees[120].
Hennessy Capital Investment VI(HCVI) - 2023 Q1 - Quarterly Report