Financial Performance - For the three months ended June 30, 2022, the net loss was $65,554, compared to a net loss of $10,729 for the same period in 2021[41] - For the six months ended June 30, 2022, the net loss was $289,923, compared to a net loss of $36,659 for the same period in 2021[41] - The Company recorded a net loss including accretion of carrying value to redemption value of $(6,232,663) for the six months ended June 30, 2022[41] - The basic and diluted net income (loss) per share for the six months ended June 30, 2022, was $0.20, compared to a loss of $(0.83) for the same period in 2021[42] Shareholder Information - The weighted-average shares outstanding for the six months ended June 30, 2022, was 5,750,000, compared to 1,727,000 for the same period in 2021[42] - The Company raised gross proceeds of $57,500,000 from the Initial Public Offering (IPO) by issuing 5,750,000 Public Units at a price of $10.00 per Unit[60] - The Company completed a private placement of 255,000 Private Units simultaneously with the IPO, generating total proceeds of $2,550,000[52] - The Company incurred total offering costs of $2,717,023, with $2,284,236 allocated to Public Shares and $432,787 allocated to Public Warrants and Public Rights[50] Cash and Investments - As of June 30, 2022, the Company had no cash equivalents and all cash was held in deposits with financial institutions[33] - As of June 30, 2022, the fair value of the Company's investment securities in the Trust Account was $58,158,783, compared to $58,076,283 as of December 31, 2021, reflecting a slight increase of 0.14%[46] Obligations and Liabilities - The Company has a monthly obligation of $10,000 for administrative services to the Sponsor, which will terminate upon completion of the Business Combination[59] - The Company issued an unsecured promissory note of $500,000 to a related party, with a principal amount of $0 due as of June 30, 2022[58] Accounting and Compliance - The Company is classified as an "emerging growth company" and has elected not to opt out of the extended transition period for new accounting standards[31] - The Company recorded zero income tax provision for the six months ended June 30, 2022, and 2021, as it is considered an exempted British Virgin Islands Company[40] - The Company has classified its Public and Private Warrants as equity in accordance with ASC 480 and ASC 815[67] Market and Risk Assessment - The Company is evaluating the potential impact of the COVID-19 pandemic on its future financial position and operations, although no significant impact has been observed to date[69] - The Company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[94] Registration Rights - The holders of insider shares and Private Units are entitled to registration rights as per the agreement signed on September 20, 2021[70] - Majority holders can demand registration of securities up to two times, starting three months before the release of ordinary shares from escrow[70] - Registration rights for Private Units and warrants can be exercised after the Company completes a Business Combination[70] - The Company will cover expenses related to the filing of registration statements post-Business Combination[70] Subsequent Events - The Company evaluated subsequent events from June 30, 2022, to August 2, 2022, prior to issuing unaudited financial statements[71] Financial Instruments - The fair value hierarchy for financial instruments is categorized into three levels, with Level 1 based on unadjusted quoted prices in active markets[47] Warrants - The Public Warrants will become exercisable on the later of the completion of a Business Combination or 12 months from the IPO closing date[64]
HHG Capital (HHGC) - 2022 Q2 - Quarterly Report