Global Gas(HGAS) - 2024 Q1 - Quarterly Report

Revenue Generation - Global Gas Corporation has not yet generated any revenue and anticipates starting revenue generation from the sale of systems and equipment in 2023 or 2024[112]. - As of March 31, 2024, the Company has not generated any revenue and has incurred total costs and expenses of $77,159, resulting in an operating loss of$77,159[125][126]. - The Company reported a net loss of $178,743 for the three months ended March 31, 2024, compared to a net loss of$616 for the period from February 16, 2023, to March 31, 2023, representing a 28,917% increase in loss[126][129]. 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[108]. - Global Gas aims to serve the hydrogen-as-energy-carrier market, particularly targeting heavy-duty transportation operators transitioning to hydrogen fuel cell vehicles[110]. - The company plans to utilize carbon capture technology in projects that require clean hydrogen production from high greenhouse gas output energy sources[109]. - Global Gas's growth strategy includes placing modular generation and recovery solutions closer to end customers to reduce costs and enhance competitiveness[111]. - The company has established relationships with independent equipment suppliers and is actively reviewing its project development pipeline with potential customers[108]. - Global Gas is targeting projects supported by government incentives for hydrogen production and carbon recovery in North America and Western Europe[111]. Financial Position - As of March 31, 2024, the Company had $286,522 in cash, a working capital deficit of$248,063, and an accumulated deficit of $478,919[131]. - Net cash used in operating activities for the three months ended March 31, 2024, was$1,029,372, primarily due to the net loss for the period[136]. - Net cash provided by investing activities during the same period was $1,128,532, related to proceeds from the redemption of marketable securities[137]. - The Company intends to raise additional financing through equity raises to support future operations and growth[133]. Business Combination and Stock Trading - The Business Combination with Dune Acquisition Corporation was completed on December 21, 2023, resulting in the company being renamed Global Gas Corporation[118]. - Following the Business Combination, the company's Class A Common Stock began trading on Nasdaq under the symbols "HGAS" and "HGASW" on December 22, 2023[118]. Expenses and Liabilities - General and administrative expenses increased by$77,117, primarily due to franchise tax expense, legal fees, and listing fees[127]. - The change in fair value of warrant liabilities recognized as an expense for the three months ended March 31, 2024, was $109,150[130]. - The Company has entered into Forfeiture Agreements, resulting in the forfeiture of 1,600,000 shares of Class B common stock[124]. Going Concern and Compliance - 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[134]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of certain accounting standards[154]. - Compliance with government regulations is necessary for the construction of hydrogen production facilities, including local zoning and permitting[159]. - The distribution of hydrogen and other gases will depend on compliance with federal and state regulatory regimes[159]. Intellectual Property and Operations - Global Hydrogen does not hold material intellectual property beyond logos and domain names[156]. - The Company plans to own and operate hydrogen generation plants, requiring relevant licensing for production, storage, and sale of gases[157]. - Carbon recovery systems will be deployed to significantly reduce or eliminate CO2 emissions during hydrogen production[158].