Beard Energy Transition Acquisition (BRD) - 2022 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, changes in stockholders' (deficit) equity, and cash flows, along with detailed notes explaining the company's organization, significant accounting policies, and financial instruments Condensed Consolidated Balance Sheets Presents the company's financial position, detailing assets, liabilities, and stockholders' deficit as of specific dates Condensed Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2022 (Unaudited) ($) | December 31, 2021 ($) | | :----------------------------------------- | :---------------------------- | :-------------------- | | Assets: | | | | Total current assets | $1,920,535 | $2,441,595 | | Investments held in Trust Account | $234,949,448 | $234,626,959 | | Total assets | $236,869,983 | $237,068,554 | | Liabilities: | | | | Total current liabilities | $630,063 | $359,061 | | Deferred underwriting fee payable | $8,050,000 | $8,050,000 | | Total liabilities | $8,680,063 | $8,409,061 | | Class A common stock subject to redemption | $234,949,448 | $234,626,959 | | Total stockholders' deficit | $(6,759,528) | $(5,967,466) | Condensed Consolidated Statements of Operations Details the company's revenues, expenses, and net loss over specific reporting periods Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2022 ($) | Three Months Ended June 30, 2021 ($) | Six Months Ended June 30, 2022 ($) | Period from Feb 8, 2021 (inception) through June 30, 2021 ($) | | :------------------------------------------------------------------ | :----------------------------------- | :----------------------------------- | :--------------------------------- | :------------------------------------------------------------ | | Operating and formation costs | $313,415 | $7,195 | $682,443 | $11,261 | | Franchise tax | $50,000 | — | $100,000 | — | | Loss from operations | $(363,415) | $(7,195) | $(782,443) | $(11,261) | | Interest and dividend income on investments held in Trust Account | $307,345 | — | $322,489 | — | | Loss before income taxes | $(56,070) | $(7,195) | $(459,954) | $(11,261) | | Income tax expense | $(9,619) | — | $(9,619) | — | | Net loss | $(65,689) | $(7,195) | $(469,573) | $(11,261) | | Net loss attributable to Beard Energy Transition Acquisition Corp. | $(65,685) | $(3,598) | $(469,547) | $(5,631) | | Basic and diluted net loss per share, Class A common stock | $0.00 | $(2.88) | $(0.01) | $(4.50) | | Basic and diluted net loss per share, Class V common stock | $(0.01) | — | $(0.03) | — | Condensed Consolidated Statements of Changes in Stockholders' (Deficit) Equity Outlines the changes in stockholders' deficit, including net loss and accretion of Class A common stock Changes in Stockholders' Deficit (Six Months Ended June 30, 2022) | Metric | Redeemable Class A Common Stock ($) | Class V Common Stock Amount ($) | Accumulated Deficit ($) | Total Stockholders' Deficit ($) | | :------------------------------------------------------------------ | :---------------------------------- | :------------------------------ | :---------------------- | :------------------------------ | | Balance – December 31, 2021 | $234,626,959 | $575 | $(5,887,803) | $(5,967,466) | | Subsequent accretion of Class A common stock to redemption amount | $322,489 | — | $(322,489) | $(307,345) | | Net loss | — | — | $(469,547) | $(469,573) | | Balance – June 30, 2022 | $234,949,448 | $575 | $(6,679,839) | $(6,759,528) | Condensed Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | Six Months Ended June 30, 2022 ($) | Period from Feb 8, 2021 (inception) through June 30, 2021 ($) | | :-------------------------------------- | :--------------------------------- | :------------------------------------------------------------ | | Net cash used in operating activities | $(410,395) | $(10,160) | | Net cash provided by financing activities | $1,553 | $54,841 | | Net Change in Cash | $(408,842) | $44,681 | | Cash - End of period | $1,323,932 | $44,681 | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Provides detailed accounting policies and disclosures related to description of organization and business operations - The Company is a blank check company (SPAC) incorporated on February 8, 2021, formed to effect a business combination[21] - The Initial Public Offering (IPO) was consummated on November 29, 2021, raising $230,000,000 from 23,000,000 units[22] - Simultaneously, 12,225,000 Private Placement Warrants were sold to the Sponsor for $12,225,000[22] - A total of $234,625,500 from the IPO and private placement proceeds was placed in a Trust Account, to be invested in U.S. government treasury obligations[23] - The Company has a working capital surplus of $1,290,472 as of June 30, 2022, but anticipates cash outside the Trust Account will not be sufficient to operate until the Business Combination deadline of May 29, 2023, raising substantial doubt about its ability to continue as a going concern[28][31] NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Provides detailed accounting policies and disclosures related to summary of significant accounting policies - The condensed consolidated financial statements are prepared in conformity with U.S. GAAP and SEC rules, consolidating the Company and its majority-controlled operating subsidiary (Opco)[32][33] - Warrants are accounted for as equity-classified instruments based on specific terms and ASC 480/815 guidance, with changes in fair value not recognized after initial measurement[41] - Offering costs of $13,308,754 were incurred, with $12,512,144 recorded as a reduction of temporary equity and $796,610 as a reduction of permanent equity[42] - Class A common stock subject to redemption is classified outside of permanent equity, with changes in redemption value recognized immediately and adjusted to retained earnings or additional paid-in capital[55] - Net income (loss) per common share calculation considers accretion to redemption value of Class A common stock as dividends paid to Class A holders, and then allocates pro rata between Class A and Class V common stock[46] NOTE 3. INITIAL PUBLIC OFFERING Provides detailed accounting policies and disclosures related to initial public offering - The IPO was declared effective on November 23, 2021, and consummated on November 29, 2021[