Company: NOEMW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110040
Chunk: 66

Company: CO2 Energy Transition Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

Cash and Cash Equivalents

The Company considers all
short-term investments with an original maturity of three months or less when purchased to be cash equivalents. As of September 30, 2025
and December 31, 2024, the Company had $343,499 and $953,069 in cash, respectively, and no cash equivalents.

10

CO2 ENERGY TRANSITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited) 

Investments in Trust Account

As of September 30, 2025
and December 31, 2024, the assets held in the Trust Account were held in money market funds which are invested primarily in U.S. government
securities. The Company accounts for its investments as trading securities under ASC 320 “Investments—Debt and Equity Securities”,
where securities are presented at fair value on the balance sheets. Gains and losses resulting from the change in fair value of investments
held in the Trust Account are included in interest earned on investments held in the Trust Account in the condensed statements of operations.

Concentration of Credit Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could
have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. 

Offering Costs

The Company complies with
the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Offering costs
consist principally of professional and registration fees that are related to the Initial Public Offering. Financial Accounting Standards
Board (“FASB”) ASC 470-20, “Debt with Conversion and Other Options”, addresses the allocation of proceeds
from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate Initial Public
Offering proceeds from the Units between common stock, warrants, and rights, using the residual method by allocating Initial Public
Offering proceeds first to the assigned value of the warrants and rights and then to the common stock. Offering costs allocated to Public
Shares were charged