Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 224

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 224
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federal income tax rate to the Company’s effective tax rate is as follows:

    December 31,  
    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.0% 
     21.0%
  
    State taxes, net of federal tax benefit 
     0.0% 
     0.0%
  
    Change in fair value of warrants 
     0.0% 
     0.0%
  
    Change in valuation allowance 
     74.9% 
     (21.0)%
  
    Income tax provision 
     95.9% 
     0.0%

The Company’s effective
tax rates for the periods presented differ from the expected (statutory) rates due to changes in fair value in warrants, transaction
costs associated with warrants and the recording of full valuation allowances on deferred tax assets.

The Company files income
tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing
authorities.

NOTE 10. FAIR VALUE MEASUREMENTS

ASC 820, “Fair
Value Measurement,” defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants. Fair value measurements are classified on a three-tier hierarchy as follows:

    ●
    Level 1 — defined as observable inputs such as quoted prices (unadjusted)
    for identical instruments in active markets;

    ●
    Level 2 — defined as inputs other than quoted prices in active markets
    that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices
    for identical or similar instruments in markets that are not active; and

    ●
    Level 3 — defined as unobservable inputs in which little or no market
    data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in
    which one or more significant inputs or significant value drivers are unobservable.

F-18

The fair value of the Representative
Shares was determined using the Monte Carlo Simulation Model. The Representative Shares have been allocated between temporary equity
and stockholders’ deficit and will not require remeasurement after issuance. The following table presents the quantitative information
regarding market assumptions used in the valuation of the Representative Shares:

    November