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Hennessy Capital Investment Corp. VI(HCVIU) - 2023 Q2 - Quarterly Report
HCVIUHennessy Capital Investment Corp. VI(HCVIU)2023-08-11 21:02

Financial Position and Liquidity - The company had cash of approximately 163,000andnegativeworkingcapitalofapproximately163,000 and negative working capital of approximately 2,690,000 as of June 30, 2023[107] - The company has approximately 163,000incashandapproximately163,000 in cash and approximately 2,690,000 of negative working capital as of June 30, 2023, including 813,000ofdeferredcompensationpayableupontheclosingofaBusinessCombination[122]−ThecompanymayneedadditionalfinancingtocompleteitsinitialBusinessCombinationortomeetobligationsifcashonhandisinsufficient[126]−ThecompanyfacessubstantialdoubtaboutitsabilitytocontinueasagoingconcernifitcannotcompleteaBusinessCombinationbeforeOctober1,2023[122]OperationalPerformanceandLosses−ForthethreeandsixmonthsendedJune30,2023,thecompanyreportedalossfromoperationsofapproximately813,000 of deferred compensation payable upon the closing of a Business Combination[122] - The company may need additional financing to complete its initial Business Combination or to meet obligations if cash on hand is insufficient[126] - The company faces substantial doubt about its ability to continue as a going concern if it cannot complete a Business Combination before October 1, 2023[122] Operational Performance and Losses - For the three and six months ended June 30, 2023, the company reported a loss from operations of approximately 2,173,000 and 3,217,000,respectively[111]−Thecompanyhasnotgeneratedanyoperatingrevenuestodateandreliesonnon−operatingincome,primarilyinterestfromtheTrustAccount[108]−Thecompany’sexpenseshaveincreasedsignificantlysinceitsinitialpublicoffering,primarilyduetocostsassociatedwithbeingapubliccompanyandsearchingforasuitablebusinesscombination[108]−Anaggregateofapproximately3,217,000, respectively[111] - The company has not generated any operating revenues to date and relies on non-operating income, primarily interest from the Trust Account[108] - The company’s expenses have increased significantly since its initial public offering, primarily due to costs associated with being a public company and searching for a suitable business combination[108] - An aggregate of approximately 249,000 was charged for operations for the three months ended June 30, 2023[130] Non-Operating Income and Trust Account - The company generated other income of approximately 3,271,000and3,271,000 and 4,767,000 for the three and six months ended June 30, 2023, primarily due to a decrease in warrant liability fair value and interest income from the Trust Account[113] - Interest income from the Trust Account was approximately 4,144,000and4,144,000 and 7,798,000 for the three and six months ended June 30, 2023, respectively[113] - Net proceeds from the initial public offering and private placement warrants totaled approximately 343,940,000,with343,940,000, with 340,930,000 deposited into the Trust Account[116] - The company plans to use funds from the Trust Account, including interest earned, to complete its initial Business Combination[118] Tax and Franchise Obligations - The company incurred income tax provisions of 840,000and840,000 and 1,610,000 for the three and six months ended June 30, 2023, driven by increased taxable interest income[115] - The company expects annual franchise tax obligations to be capped at 200,000duetoDelawaretaxregulations[118]ExecutiveCompensationandDeferredPayments−ThecompanycompensatesitsPresident,ChiefOperatingOfficer,andChiefFinancialOfficer200,000 due to Delaware tax regulations[118] Executive Compensation and Deferred Payments - The company compensates its President, Chief Operating Officer, and Chief Financial Officer 29,000 per month, with 14,000deferreduntilthecompletionoftheinitialBusinessCombination[130]−ThecompanycompensatesaVicePresident14,000 deferred until the completion of the initial Business Combination[130] - The company compensates a Vice President 25,000 per month, with 12,500deferreduntilthecompletionoftheinitialBusinessCombination[130]−Deferredcompensationrelatedtokeyexecutivestotalsapproximately12,500 deferred until the completion of the initial Business Combination[130] - Deferred compensation related to key executives totals approximately 813,000 for the period from September 29, 2021, to June 30, 2023[130] Loans and Financing - The company received a 200,000loanfromtheSponsorinJune2023,whichmaybeconvertedinto133,333Warrantsattheoptionofthelender[124][129]−Thecompanyhasnooff−balancesheetfinancingarrangementsorobligationsasofJune30,2023[127][128]AdministrativeandOperationalCosts−Thecompanypays200,000 loan from the Sponsor in June 2023, which may be converted into 133,333 Warrants at the option of the lender[124][129] - The company has no off-balance sheet financing arrangements or obligations as of June 30, 2023[127][128] Administrative and Operational Costs - The company pays 15,000 per month to Hennessy Capital Group LLC for office space, utilities, and administrative support[128]