Revenue Generation and Financial Performance - 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[103]. - As of June 30, 2024, the Company has not generated any revenue, with total expenses of 252,310 for the same period in 2023[117]. - The Company reported a net income of 252,261 for the same period in 2023, representing a change of 261%[117]. - General and administrative expenses decreased by 338,784 in cash and cash equivalents and a working capital deficit of 1,119,544, primarily due to decreases in accounts payable and accrued expenses[129]. - The Company intends to raise additional financing through equity raises to support future operations and growth[127]. Business Development and Strategy - The company has established a project development pipeline but has not yet closed on any projects, with recent projections revised due to the loss of a forecasted project[103]. - Global Gas aims to serve the hydrogen-as-energy-carrier market, targeting heavy-duty transportation operators transitioning to hydrogen fuel cell vehicles[101]. - The company plans to utilize renewable waste feedstock for gas generation and may deploy carbon capture technology on certain projects[100]. - Global Gas is focused on developing modular generation and recovery solutions to produce clean hydrogen and carbon dioxide at competitive market prices[102]. - The company is targeting both privately- and publicly-funded hydrogen development projects, supported by government incentives in North America and Western Europe[102]. - The company’s growth strategy includes securing local feedstocks and offering multiple gas products from a single feedstock input[102]. - Global Hydrogen plans to operate hydrogen generation plants and will acquire necessary licenses on a project-by-project basis[149]. Business Combination and Corporate Structure - The Business Combination was completed on December 21, 2023, resulting in the company changing its name to Global Gas Corporation and its Class A Common Stock beginning to trade on Nasdaq under the symbol "HGAS"[109]. - The Business Combination involved a SPAC structure, allowing sellers to retain equity ownership in Holdings, classified as a partnership for tax purposes, potentially providing future tax benefits[111]. Compliance and Regulatory Matters - Compliance with government regulations is required for the construction and distribution of hydrogen and other gases[150]. - The Company received a notice from Nasdaq regarding potential delisting due to failure to meet initial listing standards, with a hearing requested to address compliance issues[116]. Accounting and Financial Reporting - The Company utilizes the acquisition method for business combinations, measuring goodwill as the fair value of consideration transferred, including non-controlling interest, less identifiable assets and liabilities at fair value[141]. - Contingent consideration is recorded at fair value at the acquisition date, with changes recognized in the consolidated statements of operations[142]. - Provisional amounts are reported if initial accounting for a business combination is not finalized by the end of the reporting period, with adjustments made within one year from the acquisition date[143]. - The Company follows the asset and liability method for income taxes, recognizing deferred tax assets and liabilities based on future tax consequences from existing assets and liabilities[144]. - The Company is classified as an "emerging growth company," allowing it to delay the adoption of certain accounting standards and reduced disclosure requirements[146]. Operational and Management Aspects - The Company has a limited operating history, and its liquidity and capital resources may change substantially from past results, raising concerns about its ability to continue as a going concern[128]. - The Company does not hold material intellectual property beyond certain logos and domain names[148]. - The Company maintains disclosure controls and procedures to ensure timely reporting of required information[151]. - As of June 30, 2024, the Company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level[152].
Global Gas(HGAS) - 2024 Q2 - Quarterly Report