10-Q: Haymaker Acquisition Corp. 4 Reports Net Income of $2.3 Million for Q1 2025 Amidst Business Combination Pursuit
Quarterly Report
Haymaker Acquisition Corp. 4 announced a net income of $2.3 million for the quarter ended March 31, 2025, while continuing its search for a business combination target.
Summary
- Haymaker Acquisition Corp. 4, a Cayman Islands-based blank check company, reported its financial results for the quarter ended March 31, 2025.
- The company's primary focus remains on identifying and completing a business combination.
- For the three months ended March 31, 2025, Haymaker reported a net income of $2,275,706, primarily driven by interest earned on cash held in the Trust Account.
- General and administrative expenses for the quarter totaled $358,970, including $60,000 in related party expenses.
- As of March 31, 2025, the company held $31,152 in cash outside of the Trust Account and had a working capital deficit of $868,865.
- The Trust Account held $252,395,330, invested in money market funds.
- The company has until July 28, 2025, to complete a business combination.
- Failure to complete a business combination by this date will result in liquidation of the company.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The company is generating income from its Trust Account, but it faces a deadline to complete a business combination and has a working capital deficit.
Positives
- The company generated a net income of $2,275,706 for the quarter ended March 31, 2025.
- The Trust Account continues to generate interest income, amounting to $2,634,676 for the quarter.
- Disclosure controls and procedures were effective as of the end of the quarterly period ended March 31, 2025.
Negatives
- The company has a working capital deficit of $868,865 as of March 31, 2025.
- The company's liquidity condition raises substantial doubt about its ability to continue as a going concern.
- The company faces a deadline of July 28, 2025, to complete a business combination, and failure to do so will result in liquidation.
Risks
- The company's ability to continue as a going concern is dependent on completing a business combination by July 28, 2025.
- Failure to complete a business combination will result in liquidation and dissolution.
- Geopolitical instability, including the Russia-Ukraine conflict and the Israel-Hamas conflict, could adversely affect the company's search for a business combination target.
- Changes in international trade policies and tariffs could negatively impact the company's ability to complete a business combination or the performance of a post-business combination company.
- The 2024 SPAC Rules may materially affect the company's ability to negotiate and complete its initial Business Combination and may increase the costs and time related thereto.
Future Outlook
The company is focused on completing a business combination by July 28, 2025. Failure to do so will result in liquidation.
Industry Context
The report reflects the typical financial activity of a SPAC in its search phase, primarily generating income from its Trust Account while incurring administrative expenses. The company's focus is on identifying a suitable target for a business combination within the consumer and consumer-related products and services industries.
Comparison to Industry Standards
- It is difficult to compare Haymaker Acquisition Corp. 4 to industry standards as each SPAC has a different investment strategy.
- The net income of $2,275,706 is typical for a SPAC of this size.
- The general and administrative expenses of $358,970 are typical for a SPAC of this size.
- The working capital deficit of $868,865 is typical for a SPAC of this size.
Related Party Transactions
- The company pays an affiliate of its Vice President $20,000 per month for office space, secretarial, and administrative services.
- The company will pay an affiliate of its Chief Financial Officer $20,000 per month for services rendered prior to the consummation of the initial Business Combination, only payable upon successful completion of the Business Combination.
- The Sponsor may loan the Company funds for working capital expenses, convertible into units of the post-Business Combination company.
Stakeholder Impact
- Shareholders face the risk of liquidation if a business combination is not completed by July 28, 2025.
- The company's employees and management team are dependent on the successful completion of a business combination for their continued employment.
- The target business will be impacted by the terms of the business combination agreement.
Next Steps
- The company will continue to seek a business combination target.
- The company must complete a business combination by July 28, 2025.
Key Dates
| Date | Description |
|---|---|
| March 7, 2023 | Company incorporated in the Cayman Islands |
| March 13, 2023 | Sponsor agreed to loan the Company up to $300,000 pursuant to a promissory note |
| March 15, 2023 | Sponsor acquired 5,750,000 Class B Ordinary Shares (Founder Shares) |
| July 3, 2023 | Initial Public Offering Registration Statement initially filed with the SEC |
| July 25, 2023 | IPO Registration Statement declared effective |
| July 28, 2023 | Initial Public Offering consummated, generating gross proceeds of $230,000,000 |
| July 28, 2023 | Company consummated the sale of 797,600 Private Placement Units to the Sponsor, generating gross proceeds of $7,976,000 |
| July 28, 2023 | Company repaid the outstanding balance under the IPO Promissory Note in full |
| September 15, 2023 | Holders of the Units may elect to separately trade the Public Shares and Public Warrants |
| June 10, 2024 | Company issued a promissory note (the WCL Promissory Note) in the principal amount of up to $1,500,000 to the Sponsor |
| July 1, 2024 | The 2024 SPAC Rules became effective |
| March 31, 2025 | End of the quarterly period for this report |
| May 15, 2025 | Date of report filing |
| July 28, 2025 | Deadline to complete a business combination |
Keywords
business combination, SPAC, acquisition, Haymaker Acquisition Corp. 4, financial results, Trust Account, liquidation, merger
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