Company: HVIIR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023283
Chunk: 52

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 2025 the assets held in the Trust Account amounted to $193,308,208. The Company classifies its U.S. Treasury and equivalent
securities as held to maturity in accordance with ASC Topic 320, “Investments - Debt and Equity Securities.” Held-to-maturity
securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities
are recorded at amortized cost on the accompanying balance sheets and adjusted for the amortization or accretion of premiums or discounts.
When the Company’s investments held in the Trust Account are comprised of money market securities, the investments are classified
as trading securities. Gains and losses resulting from the change in fair value of these securities are included in interest earned on
marketable securities held in the Trust Account in the accompanying statement of operations. The estimated fair values of investments
held in the Trust Account are determined using available market information.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Deferred
Offering Costs

The
Company complies with the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses
of Offering.” Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering.
FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible
debt into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds, on January
21, 2025, from the Units between Class A ordinary shares and Share Rights, using the residual method by allocating Initial Public Offering
proceeds first to assigned value of the Share Rights and then to the Class A ordinary shares. Offering costs allocated to the Class A
ordinary shares subject to possible redemption were charged to temporary equity and offering costs allocated to the Share Rights included
in the Units and Private Placement Units were charged to shareholders’ deficit because the Share Rights included in the Units and
Private Placement Units, after management’s evaluation, were accounted for under equity treatment. As of June 30,