Workflow
Hennessy Capital Investment Corp. VI(HCVIU) - 2023 Q3 - Quarterly Report

Financial Position - As of September 30, 2023, the company had cash of approximately 3,000andnegativeworkingcapitalofapproximately3,000 and negative working capital of approximately 4,569,000[119] - As of September 30, 2023, the company had approximately 3,000incashandapproximately3,000 in cash and approximately 4,396,000 of negative working capital[139] - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2023[146][147] Stockholder Activity - On September 29, 2023, stockholders redeemed 8,295,189 shares of Class A common stock for approximately 86,171,000,orapproximately86,171,000, or approximately 10.39 per share[121] - On October 12, 2023, the company redeemed 8,295,189 shares of Class A common stock for approximately 86,171,000,orapproximately86,171,000, or approximately 10.39 per share[138] Revenue and Expenses - The company has not generated any revenues to date and has incurred increased expenses since its initial public offering on October 1, 2021[126] - For the three and nine months ended September 30, 2023, the company reported a loss from operations of approximately 3,505,000and3,505,000 and 4,153,000, respectively[128] - Other income for the three and nine months ended September 30, 2023 was approximately 3,953,000and3,953,000 and 11,938,000, respectively, primarily from interest income on investments in the Trust Account[130] - The provision for income taxes for the three and nine months ended September 30, 2023 was approximately 943,000and943,000 and 2,553,000, respectively, due to a significant increase in taxable interest income[132] Business Combination Efforts - The company is actively pursuing discussions with potential business combination partners but has not yet entered into a definitive agreement[115] - The deadline for completing the initial business combination has been extended to January 10, 2024[120] - The company intends to use substantially all funds held in the Trust Account to complete its initial Business Combination[135] - The company may need to seek additional financing to complete its initial Business Combination if cash on hand is insufficient[145] - The company may face risks related to its ability to complete the initial business combination and secure additional financing[111] Financing and Loans - A subscription agreement was entered into on October 13, 2023, with a cash contribution of 900,000fromPolarMultiStrategyMasterFundtocoverworkingcapitalexpenses[125]TheSponsorloaned900,000 from Polar Multi-Strategy Master Fund to cover working capital expenses[125] - The Sponsor loaned 200,000 to the company in June 2023, which may be converted into Warrants at the lender's option[141] - The Company entered into a Subscription Agreement with HCG and Polar, agreeing to return the Capital Contribution to Polar, which may be received in cash or shares at a rate of one share for every 10ofCapitalContribution[149]ManagementCompensationTheCompanyhascompensateditsPresident,COO,andCFO10 of Capital Contribution[149] Management Compensation - The Company has compensated its President, COO, and CFO 29,000 per month prior to the initial Business Combination, with 14,000payableuponcompletionand14,000 payable upon completion and 15,000 currently, totaling approximately 220,000foroperationsinQ32023[150]PaymentstotheChiefOperatingOfficerceasedinAugust2023duetohisresignation,withapproximately220,000 for operations in Q3 2023[150] - Payments to the Chief Operating Officer ceased in August 2023 due to his resignation, with approximately 27,000 charged to operations for September 2023 cash compensation[151] - Upon completion of the initial Business Combination or liquidation, the Company will cease paying or accruing monthly fees[152] - The Company may enter into engagement letters with consultants for the initial Business Combination, which can include contingent or success fees charged to operations upon consummation[153] Accounting and Reporting - Management does not believe the Company has any critical accounting estimates that could materially differ from reported amounts[155] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[156] Regulatory and Compliance - The company recorded a liability of approximately 861,000asofSeptember30,2023,relatedtotheInflationReductionAct[122]Thecompanyexpectsitsannualfranchisetaxobligationtobecappedatthemaximumamountof861,000 as of September 30, 2023, related to the Inflation Reduction Act[122] - The company expects its annual franchise tax obligation to be capped at the maximum amount of 200,000 as a Delaware corporation[135] - The issuance of additional shares or debt could significantly dilute existing investors' equity interests and affect market prices[116][118]