Financial Performance - For the three months ended March 31, 2023, the company reported a net income of $264,291, compared to a net loss of $224,369 for the same period in 2022[54]. - The net loss including accretion of carrying value to redemption value for the three months ended March 31, 2023, was $(106,478), compared to $(3,069,017) for the same period in 2022[54]. - Basic and diluted net loss per share for the three months ended March 31, 2023, was $0.09, compared to $(0.02) for the same period in 2022[55]. - The company recorded an accretion of carrying value to redemption value of $370,769 for the three months ended March 31, 2023, down from $2,844,648 in the same period of 2022[48]. Shareholder Information - The weighted-average shares outstanding for the three months ended March 31, 2023, was 3,356,406, compared to 1,727,000 for the same period in 2022[55]. - As of March 31, 2023, the Company held 3,356,406 ordinary shares subject to possible redemption, consistent with the amount as of December 31, 2022[88]. Tax and Regulatory Matters - The company has not recognized any unrecognized tax benefits or accrued interest and penalties as of March 31, 2023[50]. - The company recorded no income tax provision for the three months ended March 31, 2023, as it is considered an exempted British Virgin Islands Company[52]. - The company is classified as an "emerging growth company" and has elected not to opt out of the extended transition period for new or revised financial accounting standards[40]. Cash and Investments - The company did not have any cash equivalents as of March 31, 2023, and December 31, 2022[44]. - As of March 31, 2023, the Company held $34,714,871 in U.S. Treasury Securities in its Trust Account, an increase from $34,344,102 as of December 31, 2022, representing a growth of approximately 1.08%[64]. - The fair value of the company's investments held in the Trust Account is based on Level 1 inputs, approximating the carrying amounts as of March 31, 2023[60]. - The Company earned dividend income of $343,529 in the Trust Account for the three months ended March 31, 2023, compared to $506,602 for the same period in 2022, indicating a decrease of approximately 32.2%[65]. Expenses and Obligations - The Company incurred $30,000 in administrative service expenses for both the three months ended March 31, 2023, and 2022, indicating stable administrative costs[75]. - The Company is obligated to pay a monthly fee of $10,000 to its Sponsor for administrative services, which will terminate upon the completion of the Business Combination[75]. - The Company has a temporary advance of $180,000 from a related party as of March 31, 2023, up from $150,000 as of December 31, 2022[74]. IPO and Financing Activities - The Company raised gross proceeds of $57,500,000 from its Initial Public Offering (IPO) completed on September 23, 2021, by issuing 5,750,000 Public Units[77]. - The Company completed a private placement simultaneously with the IPO, generating total proceeds of $2,550,000 from the sale of 255,000 Private Units[70]. - The underwriters received an underwriting fee of 3.2% of the gross proceeds from the offering, capped at $1,615,000, with $805,000 paid at the IPO closing[91]. - A cash payment to underwriters at the closing of any Business Combination will be the greater of $575,000 or 4.5% of the proceeds, subject to the same cap of $1,615,000[91]. Business Operations - The Company is currently evaluating the potential impact of the COVID-19 pandemic on its future financial position and operations, with no significant impact noted as of the date of the financial statements[89]. - The Company deposited $9,080 into the Trust Account to extend the time available for completing a business combination until May 23, 2023[93]. Financial Classification - The Company has classified its Public and Private Warrants as equity in accordance with ASC 480 and ASC 815, reflecting a strategic financial classification[86].
HHG Capital (HHGC) - 2023 Q1 - Quarterly Report