Company: HVIIR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010497
Chunk: 19

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 the partial
exercise and the subsequent forfeiture of the over-allotment option by the Underwriters, 500,000
founder shares are no longer subject to forfeiture and 375,000
founder shares were forfeited, resulting in the Sponsor (after giving effect to the founder share transfers described below) holding 5,203,333
founder shares.

On December 1, 2024
and January 1, 2025, the Sponsor transferred 250,000 and 750,000 founder shares to each of Nicholas Geeza, the Company’s Executive
Vice President, Chief Financial Officer (“CFO”) and Secretary, and Thomas Hennessy, the Company’s President and Chief
Operating Officer (“COO”), respectively. The founder shares were transferred for total consideration of $0.004 per share,
or $1,000 and $3,000, respectively, due to the Sponsor. On December 19, 2024, the Sponsor transferred an aggregate of 130,000 founder
shares to its independent directors, for total consideration of $0.004 per share, or $520, due to the Sponsor. The founder shares are
automatically forfeited back to the Sponsor if the holder of such founder shares is no longer providing services to the Company prior
to its Business Combination. The sale of the founder shares to the Company’s CFO, COO, and its independent directors, are in the
scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation
associated with equity-classified awards is measured at fair value upon the grant date. The fair value of the 1,130,000 shares granted
to the Company’s CFO, COO, and its independent directors were $1,118,700, or $0.99 per share. The founder shares were granted subject
to a performance condition (i.e., providing services through the Company’s Business Combination). Compensation expense related to
the founder shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature
in this circumstance.

    12

HENNESSY CAPITAL INVESTMENT CORP. VII

NOTES
TO CONDENSED FINANCIAL STATEMENTS

MARCH
31, 2025

(UNAUDITED)

The Company’s
initial shareholders have agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary shares issued upon
conversion thereof