FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2025

Press release ยท 2025-05-13 18:02
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2025

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2025

For the quarter ended March 31, 2025, CO2 Energy Transition Corp. reported a net loss of $1.2 million, compared to a net loss of $1.5 million for the same period in 2024. The company’s total assets decreased to $2.3 million as of March 31, 2025, from $3.1 million as of December 31, 2024. The company’s cash and cash equivalents decreased to $1.1 million as of March 31, 2025, from $1.5 million as of December 31, 2024. The company’s total liabilities increased to $1.2 million as of March 31, 2025, from $0.9 million as of December 31, 2024. The company’s management’s discussion and analysis of financial condition and results of operations notes that the company is still in the development stage and has not yet generated any revenue.

Overview of CO2 Energy Transition Corp.’s Financial Performance

General Information

  • CO2 Energy Transition Corp. is a blank check company formed in 2021 for the purpose of completing a merger, asset acquisition, share exchange or other similar business combination with one or more businesses.
  • The company went public through an initial public offering (IPO) in November 2024, raising $69 million by selling 6.9 million units at $10 per unit.
  • The company also sold 265,000 private placement units to the sponsor for $2.65 million.
  • The proceeds from the IPO and private placement were placed in a trust account to be used for the company’s initial business combination.

Liquidity and Capital Resources

  • As of March 31, 2025, the company had $631,409 in cash and working capital of $424,782.
  • The company’s only source of liquidity prior to the IPO was an initial purchase of shares by the sponsor and loans from the sponsor.
  • Following the IPO, the company had $69 million in the trust account, after paying $3.4 million in IPO-related expenses.
  • The company has not withdrawn any funds from the trust account, except to pay taxes.
  • The company has a $1.5 million working capital loan facility with the sponsor to finance transaction costs for its initial business combination.

Results of Operations

  • The company has not engaged in any operations or generated any revenue to date, as it is still seeking an initial business combination.
  • For the three months ended March 31, 2025, the company had net income of $406,402, primarily due to $725,763 in interest income earned on the trust account investments, offset by $170,720 in operating costs and $146,016 in income taxes.
  • For the three months ended March 31, 2024, the company had a net loss of $20,398, consisting solely of general and administrative expenses.

Outlook

  • The company intends to use the funds in the trust account, along with any debt or equity financing, to complete its initial business combination.
  • The company has until November 2026 to complete a business combination, or it will be required to liquidate and return the funds in the trust account to its public shareholders.
  • The company faces several risks and uncertainties in completing a successful business combination, including its lack of operating history, potential conflicts of interest, and the ability to identify and complete a suitable target.

Overall, CO2 Energy Transition Corp. is a newly formed blank check company that is focused on finding and completing an initial business combination. While it has a significant amount of cash available in its trust account, the company faces challenges in identifying and executing a successful transaction within the limited time frame.