Financial Position - As of March 31, 2024, the company had cash of approximately $6,000 and negative working capital of approximately $7,708,000, excluding income and franchise taxes paid from the trust account[130]. - The Company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2024[175]. Share Redemptions - On October 12, 2023, the company redeemed 8,295,189 public shares for approximately $86,171,000, or approximately $10.39 per share[135]. - In January 2024, the company redeemed 20,528,851 shares of Class A common stock for approximately $215,340,000, or approximately $10.49 per share[136]. - The company recorded a liability of approximately $861,000 as of December 31, 2023, related to the October 2023 redemptions under the Inflation Reduction Act[137]. - Stockholders holding 25,688,054 public shares agreed not to redeem their shares in exchange for founder shares, which is part of the Non-Redemption Agreements[138]. - The estimated fair value of founder shares transferred under the January 2024 Non-Redemption Agreements was approximately $1,500,000[142]. Business Combination Efforts - The company is actively pursuing discussions with potential business combination partners but has not yet entered into a definitive agreement[126]. - The company extended the deadline for completing its initial business combination from January 10, 2024, to September 30, 2024[131]. - The Company may face delisting from NASDAQ if it does not complete a business combination within three years of its IPO registration statement[134]. - If the Company cannot complete a Business Combination by September 30, 2024, it may be forced to wind up operations and liquidate[167]. Financial Contributions and Agreements - The Company entered into the Polar Subscription Agreement I, with Polar contributing $900,000 for working capital, to be repaid in cash or shares at a rate of one share for every $10 contributed[143]. - Under the Polar Subscription Agreement II, Polar agreed to make a second capital contribution to cover working capital and potential tax obligations, with an estimated fair value of $1,750,000 upon subscription[145][148]. Operating Results - For the three months ended March 31, 2024, the Company reported a loss from operations of approximately $2,322,000, primarily due to costs associated with founder shares and public company expenses[153]. - The Company incurred other expenses of approximately $1,733,000 for the same period, including a $744,000 increase in fair value of warrant liabilities[155]. - The provision for income taxes for the three months ended March 31, 2024, was $213,000, resulting from taxable interest income offset by deductible franchise taxes[157]. - The Company has not generated any operating revenues to date and only generates non-operating income from interest on cash and investments[149]. Trust Account and IPO Proceeds - The total proceeds from the initial public offering were approximately $343,940,000, with about $340,930,000 deposited into the Trust Account[159]. - The Company plans to use funds in the Trust Account primarily to complete its initial Business Combination and cover taxes[160]. Accounting Estimates and Liabilities - The estimated fair value of the 2024 Subscription Agreement was based on a risk-adjusted discount rate of 12.5% and a merger closing probability of 14%[148]. - The Company accounts for warrants as liabilities, requiring fair value measurement at issuance and each reporting period, impacting operating results significantly[150]. - The fair value of the Company's extension promissory notes is a critical accounting estimate, with a probability of closing a business combination increasing from 9.7% to 30% between October 2023 and March 31, 2024[184]. Executive Compensation - The Company has agreed to compensate its executives a total of approximately $162,000 for operations for the three months ended March 31, 2024[181].
Hennessy Capital Investment VI(HCVI) - 2024 Q1 - Quarterly Report