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Hennessy Capital Investment Corp. VI(HCVIU) - 2022 Q3 - Quarterly Report
HCVIUHennessy Capital Investment Corp. VI(HCVIU)2022-11-07 23:22

Financial Position - As of September 30, 2022, the company had cash of approximately 1,073,000andworkingcapitalofapproximately1,073,000 and working capital of approximately 592,000[114] - As of September 30, 2022, the company had approximately 1,073,000incashand1,073,000 in cash and 592,000 in working capital, raising concerns about its ability to continue operations beyond one year without completing a Business Combination[142] - The company has no long-term debt, capital lease obligations, or operating lease obligations as of September 30, 2022[132] Operational Performance - The company reported a loss from operations of approximately 580,000and580,000 and 1,736,000 for the three and nine months ended September 30, 2022, respectively[117] - The company has not generated any revenues to date and only incurs non-operating income from interest on cash and cash equivalents[115] - The company incurred approximately 19,741,000incostsrelatedtoitsinitialpublicoffering,including19,741,000 in costs related to its initial public offering, including 18,750,000 in underwriters' discount[150] Business Combination Plans - The company expects to incur significant costs in pursuit of an initial Business Combination, which may increase substantially following the initial public offering[115] - The company plans to use substantially all funds in the Trust Account to complete its initial Business Combination[121] - If the company cannot complete a Business Combination before October 1, 2023, it may be forced to liquidate unless it receives an extension approval from shareholders[125] - The company plans to complete a Business Combination prior to October 1, 2023, to avoid liquidation of its operations[142] - The company has engaged in discussions with potential business combination partners but has not yet entered into a definitive agreement[111] Taxation - The Company recorded an income tax expense of approximately 300,000forthethreemonthsendedSeptember30,2022,comparedto300,000 for the three months ended September 30, 2022, compared to 0 for the same period in 2021[152] - The effective tax rate for the three and nine months ended September 30, 2022, was approximately 10% and 2%, respectively[152] - As of September 30, 2022, the Company has a deferred tax asset of approximately 440,000,primarilyrelatedtostart−upcosts[152]−Managementhasdeterminedthatafullvaluationallowanceofthedeferredtaxassetisappropriateatthistime[152]−TherewerenounrecognizedtaxbenefitsasofSeptember30,2022,orDecember31,2021[153]−TheCompanyissubjecttoincometaxexaminationsbymajortaxingauthoritiessinceinception[153]ShareholderandFinancingInformation−Thenetproceedsfromtheinitialpublicofferingwereapproximately440,000, primarily related to start-up costs[152] - Management has determined that a full valuation allowance of the deferred tax asset is appropriate at this time[152] - There were no unrecognized tax benefits as of September 30, 2022, or December 31, 2021[153] - The Company is subject to income tax examinations by major taxing authorities since inception[153] Shareholder and Financing Information - The net proceeds from the initial public offering were approximately 343,940,000, with about 340,930,000depositedintotheTrustAccount[120]−ThegrossproceedsfromthePublicOfferingamountedto340,930,000 deposited into the Trust Account[120] - The gross proceeds from the Public Offering amounted to 340,930,000, with shares of Class A common stock subject to redemption totaling 342,171,000asofSeptember30,2022[157]−TheCompanyhas34,092,954publicsharesthatcontainaredemptionfeature,whichmustnotcausenettangibleassetstofallbelow342,171,000 as of September 30, 2022[157] - The Company has 34,092,954 public shares that contain a redemption feature, which must not cause net tangible assets to fall below 5,000,001 upon closing a business combination[155] - The company may need to seek additional financing to complete its initial Business Combination if the cash portion of the purchase price exceeds the amount available from the Trust Account[129] Warrant and Stock Information - The estimated fair value of the Public Warrants was 0.26perwarrantasofSeptember30,2022,comparedto0.26 per warrant as of September 30, 2022, compared to 0.84 per warrant at December 31, 2021[140] - The fair value of the Warrants is estimated using a binomial lattice simulation approach, with changes recognized as a non-cash gain or loss on the statements of operations[159] - The company has not considered the effect of the Warrants sold in its initial public offering in the calculation of diluted income per share, as their inclusion would be anti-dilutive[144] - Changes in the carrying amount of redeemable Class A common stock are affected by adjustments to additional paid-in capital[157] Compensation - The company has agreed to compensate its President and Chief Operating Officer, as well as its Chief Financial Officer, $29,000 per month prior to the consummation of the initial Business Combination[133]