Segment Reporting

3 Months Ended

Mar. 31, 2025

NOTE 11 — SEGMENT REPORTING

In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280); Improvements to Reportable Segment Disclosure” which introduced new annual and interim disclosure requirements for all public companies.

As a Special Purpose Acquisition Company (“SPAC”), the Company has not commenced any operations and its activities consist of seeking to identify a suitable Business Combination candidate and to perform the diligence, contractual, reporting and other obligations associated with completing a Business Combination.

For purposes of ASU 2023-07, the Company is considered to operate in one segment, seeking to identify and close a Business Combination. As such, our expenses consist of the costs of identifying a Business Combination candidate and the diligence, contractual, reporting and other obligations associated with completing such Business Combination, as well as expenses for ongoing professional and other costs to maintain our reporting, listing, compliance and administrative requirements of being a publicly traded company. In addition to such expenses, the Company had over $35,000,000 of cash in the Trust Account at March 31, 2025 and December 31, 2024 and such assets generate interest or dividend income.

The new information required by ASU 2023-07 includes:

Significant segment expenses: Our operating expenses for the three months ended March 31, 2025 and 2024 were approximately $1,369,000 and $2,322,000, respectively including approximately $1,500,000 of non-cash charges in the three months ended March 31, 2024 for the estimated fair value of non-redemptions agreements.

Other segment items: Other income in the three months ended March 31, 2025 and 2024 includes approximately $318,000 and $927,000, respectively, of interest income, primarily on the Trust Account and approximately $2,421,000 and $2,660,000, respectively, of non-cash charges for fair value accounting adjustments.

Identification of the chief operating decision maker (“CODM”): The chief operating decisions makers are the Chief Executive and Chief Financial Officers of the Company.

Explanation of how the CODM uses the disclosure measure of segment profit or loss: The CODM works to maintain costs at a competitive level in its everyday operations. The CODM works to optimize its investment income on the limited choices of available assets based on market conditions. The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the statement of operations as net income or loss. The measure of segment assets is reported on the balance sheet as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in net income or loss and total assets, which include the following: (a) expenses of maintaining its public reporting including accounting, auditing, legal, listing, insurance and regulatory, (b) search for a Business Combination candidate, (c) diligence, financing, reporting and closing activities and (d) managing investments in the Trust Account in order to generate return for stockholders consistent with the regulations surrounding such investments.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Hennessy Capital Investment Corp. VI 10-Q