Financial Position - As of September 30, 2023, the company had cash of approximately $3,000 and negative working capital of approximately $4,569,000[121] - As of September 30, 2023, the company had approximately $3,000 in cash and approximately $4,396,000 of negative working capital[140] - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2023[148][149] Shareholder Actions - On October 12, 2023, the company redeemed 8,295,189 shares of Class A common stock for approximately $86,171,000, or approximately $10.39 per share[123] - The company entered into non-redemption agreements with investors to retain 25,688,054 shares of Class A common stock, with an estimated fair value of approximately $1,825,000 for the transferred Founder Shares[125][126] - The Company entered into a Subscription Agreement with HCG and Polar, agreeing to return the Capital Contribution to Polar, which may be received in cash or shares at a rate of one share for every $10 of Capital Contribution[152] Revenue and Expenses - The company has not generated any revenues to date and has incurred increased expenses since its initial public offering on October 1, 2021[128] - For the three and nine months ended September 30, 2023, the company reported a loss from operations of approximately $3,505,000 and $4,153,000, respectively[130] - Other income for the three and nine months ended September 30, 2023 was approximately $3,953,000 and $11,938,000, respectively, primarily from interest income on investments in the Trust Account[132] - The provision for income taxes for the three and nine months ended September 30, 2023 was approximately $943,000 and $2,553,000, respectively, due to significant taxable interest income[134] Business Combination Efforts - The company is actively pursuing discussions with potential business combination partners but has not yet entered into a definitive agreement[117] - The company extended the deadline for completing its initial business combination from October 1, 2023, to January 10, 2024[122] - The company may face significant dilution of equity interests if additional shares are issued during the initial business combination[120] - The company has begun to incur significant costs in the pursuit of an initial business combination[121] - The company intends to use substantially all funds held in the Trust Account to complete its initial Business Combination[136] Management and Compensation - The Company has compensated its President, COO, and CFO $29,000 per month, with $14,000 payable upon the completion of the initial Business Combination, totaling approximately $220,000 for operations in Q3 2023[153] - Payments to the Chief Operating Officer ceased in August 2023 due to his resignation, with approximately $27,000 charged to operations for September 2023 cash compensation[154] - Upon completion of the initial Business Combination or liquidation, the Company will cease paying or accruing monthly fees[155] - The Company may enter into engagement letters with consultants for the initial Business Combination, which can include contingent or success fees charged to operations upon consummation[156] Financial Obligations and Loans - A subscription agreement was entered into on October 13, 2023, with a cash contribution of $900,000 from Polar Multi-Strategy Master Fund to cover working capital expenses[127] - The Sponsor loaned $200,000 to the company in June 2023, which may be converted into Warrants at the lender's option[142] - The company has made plans to receive working capital loans from its Sponsor and another investor to address liquidity uncertainties[140] Accounting and Reporting - Management does not believe the Company has any critical accounting estimates that could materially differ from reported results[157] - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[158]
Hennessy Capital Investment VI(HCVI) - 2023 Q3 - Quarterly Report