Verde Clean Fuels(VGAS) - 2022 Q1 - Quarterly Report

IPO and Fundraising - The company completed its initial public offering (IPO) on August 17, 2021, raising gross proceeds of $150 million from the sale of 15 million units at $10.00 per unit[118]. - An additional $22.5 million was generated from the full exercise of the underwriters' overallotment option[118]. - Underwriters were granted a 45-day option to purchase an additional 2,250,000 units to cover over-allotments, which were fully exercised on August 19, 2021[144]. - The underwriting discount paid to underwriters was 2% of the gross proceeds, totaling $3,450,000, with a deferred underwriting discount of 3.5% upon completion of the initial Business Combination[145]. Financial Performance - As of March 31, 2022, the company reported a net loss of $263,321, with general and administrative expenses amounting to $279,885 and interest income of $16,564[123]. - The company had $155,930 in its operating bank account and working capital of $207,198 as of March 31, 2022[125]. - The company has no long-term debt or capital lease obligations as of March 31, 2022[134]. - The company has not commenced any operations and will not generate operating revenues until after completing a Business Combination[122]. Business Combination and Operations - The company has committed to provide up to $1.5 million in Working Capital Loans to finance transaction costs related to a Business Combination[127]. - If the company fails to complete a Business Combination by August 17, 2022, it will cease operations and liquidate the Trust Account[130]. Accounting and Reporting - The company recognized a change in the carrying value of redeemable common stock, resulting in charges against additional paid-in capital and accumulated deficit[138]. - The company is evaluating the impact of recent accounting standards updates on its financial position and operations[140]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to comply with new accounting standards based on the effective date for private companies[146]. - The company has opted out of the extended transition period under the JOBS Act, meaning it will adopt new accounting standards at the same time as public companies[146]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years or until it is no longer an "emerging growth company"[147].