Financial Performance - For the three months ended June 30, 2023, the net income was $197,988, compared to a net loss of $65,554 for the same period in 2022[53] - For the six months ended June 30, 2023, the net income was $462,279, while the net loss for the same period in 2022 was $289,923[53] - The basic and diluted net income per share for the three months ended June 30, 2023, was $0.08, while for the same period in 2022, it was $(0.05)[53] - Basic and diluted net income per share for the six months ended June 30, 2023, was $0.17, compared to a loss of $0.07 per share for the same period in 2022[54] - For the six months ended June 30, 2023, the company reported a net loss of $222,797 compared to a net loss of $114,637 for the same period in 2022, reflecting an increase in losses[54] Shareholder Equity - The weighted-average shares outstanding for the three months ended June 30, 2023, was 3,356,406, compared to 1,727,000 for the same period in 2022[53] - As of June 30, 2023, the company has 3,356,406 ordinary shares subject to possible redemption, classified as temporary equity[82] - On September 21, 2022, the company redeemed 2,393,594 shares at approximately $10.12 per share, totaling $24,223,171[82] - As of June 30, 2023, a total of 7,477,000 ordinary shares have been issued, with 1,727,000 classified as equity[84] Cash and Investments - The Company’s cash equivalents as of June 30, 2023, were reported as zero, with all cash consisting of deposits with financial institutions[46] - As of June 30, 2023, the company held $35,143,815 in U.S. Treasury Securities in its Trust Account, an increase from $34,344,102 as of December 31, 2022[62] - The company earned dividend income of $745,232 in the Trust Account for the six months ended June 30, 2023, compared to $506,602 for the same period in 2022[63] - The fair value of the company's U.S. Treasury Securities held in the Trust Account is based on Level 1 inputs, indicating a high level of market observability[58] - The company has no unrealized holding gains on its available-for-sale marketable securities as of June 30, 2023, and December 31, 2022[62] Expenses and Liabilities - The accretion of carrying value to redemption value for the six months ended June 30, 2023, was $799,713, compared to $5,942,740 for the same period in 2022[49] - The net loss including accretion of carrying value to redemption value for the six months ended June 30, 2023, was $(337,434), compared to $(6,232,663) for the same period in 2022[53] - The Company recorded a net loss including accretion of carrying value to redemption value of $(230,956) for the three months ended June 30, 2023, compared to $(3,163,646) for the same period in 2022[53] - The company incurred $60,000 in administrative service expenses for both the six months ended June 30, 2023, and 2022, related to its agreement with the sponsor[73] - As of June 30, 2023, the company had a temporary advance of $210,000 from a related party for administrative expenses, up from $150,000 as of December 31, 2022[72] Corporate Governance and Compliance - The Company has not recognized any unrecognized tax benefits or accrued interest and penalties as of June 30, 2023[50] - 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[43] - The company assessed its public and private warrants as equity in accordance with ASC 480 and ASC 815[81] - The company may call the public warrants for redemption at a price of $0.01 per warrant if the ordinary shares' price exceeds $16.5 for 20 trading days within a 30-day period[83] Future Operations - The company is evaluating the potential impact of the COVID-19 pandemic on its future financial position and operations[85] - The company will cease operations and redeem 100% of outstanding public shares if it cannot complete a business combination within the Combination Period[85] - The company deposited $9,080 into the Trust Account on July 23, 2023, to extend the time available for completing a business combination until August 23, 2023[89] - The company issued an unsecured promissory note of $80,000 to its CEO, which is interest-free and repayable on August 7, 2024[90] IPO and Offering Costs - The company raised gross proceeds of $57,500,000 from its Initial Public Offering (IPO) completed on September 23, 2021[74] - The company allocated $2,284,236 of offering costs to Public Shares and $432,787 to Public Warrants and Public Rights following its IPO[66] - The underwriters received an underwriting fee of 3.2% of gross proceeds from the offering, capped at $1,615,000, with $805,000 paid at the IPO closing[87]
HHG Capital (HHGC) - 2023 Q2 - Quarterly Report