Global Gas(HGAS) - 2023 Q4 - Annual Report

Revenue Generation - Global Gas Corporation has not yet generated any revenue since its inception on February 16, 2023, and anticipates revenue generation from the sale of systems and equipment in 2023 or 2024[206]. - As of December 31, 2023, the Company has not generated any revenue, with total costs and expenses amounting to $409,027, resulting in an operating loss of$409,027[220]. - The Company reported a net loss of $300,176 for the period from February 16, 2023 (inception) to December 31, 2023, with interest income of$1,051 and a change in fair value of derivative warrants liabilities of $107,800[220]. Business Development and Strategy - The company is focused on developing a project pipeline for hydrogen and carbon recovery, targeting both renewable and non-renewable feedstocks for gas production[202][203]. - Global Gas aims to serve the hydrogen-as-energy-carrier market, particularly targeting heavy-duty transportation operators transitioning to hydrogen fuel cell vehicles[204]. - The company plans to utilize carbon capture technology in projects that require it, particularly when using non-renewable energy sources[203]. - The company’s growth strategy includes placing modular generation and recovery solutions closer to end customers to reduce costs and enhance competitiveness[205]. - Global Gas is targeting both privately- and publicly-funded hydrogen development projects across North America, Western Europe, and Great Britain[202]. Financial Position - The Company had an aggregate cash balance of$62,362 and a net working capital deficit of $303,470 as of December 31, 2023[221]. - Cash flows from operating activities resulted in a net cash used of$160,162, while net cash used in investing activities was $1,120,000, and net cash provided by financing activities was$1,342,524[225]. - Management has raised substantial doubt about the Company's ability to continue as a going concern for the next twelve months due to liquidity concerns[224]. Business Combination - The Business Combination with Dune Acquisition Corporation was completed on December 21, 2023, resulting in the company being renamed Global Gas Corporation and its shares trading on Nasdaq under the symbols "HGAS" and "HGASW" starting December 22, 2023[213]. - The Business Combination was structured as a reverse recapitalization, with Dune treated as the acquired company and Global Hydrogen as the accounting acquirer[216]. Future Financing - The Company intends to raise additional financing through equity raises to support future operations and growth[223]. Employment and Stock - The Company has entered into employment agreement amendments, restructuring compensation for key personnel based on gross profit[218]. - An aggregate of 1,600,000 shares of Class B common stock were forfeited by certain holders, including key personnel, resulting in a total of 2,700,000 shares remaining[219]. Project Licensing - The Company plans to operate hydrogen generation plants and will require relevant licensing to produce, store, and sell gases in various jurisdictions[239]. Supplier Relationships - The company has established relationships with independent equipment suppliers but has not yet finalized contracts with paying customers or suppliers[202]. Management Projections - Management has revised projections to reflect the loss of a previously anticipated systems and equipment project expected to close in Q3 2023[206]. Government Incentives - Global Gas is positioned to benefit from government incentives for hydrogen production and carbon recovery projects, including tax credits from the Inflation Reduction Act of 2022[205].