Company: VGASW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040155
Chunk: 33

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 33
---
 Project. Also in June 2024, the parent organization of Holdings, through a separate subsidiary, made an unrelated preferred equity investment in the Shaw Group and, in connection with the investment, Jonathan Siegler, a Company director, was appointed as a director of the Shaw Group. Total FEED study costs incurred as of June 30, 2025, net of reimbursement from Cottonmouth, were $2,245,700 and are recorded to Construction in Progress within Property, Plant and Equipment, Net on the Company’s unaudited Condensed Consolidated Balance Sheets. See Notes 3 and 4 for further information. Five Star Clean FuelsA subsidiary of the Company is a party to a letter agreement with Five Star Clean Fuels LLC, formerly known as Arb Clean Fuels Management LLC (“FSCF”), whereby it granted FSCF certain non-exclusive rights to utilize the STG+® technology and agreed to enter into mutually acceptable to be negotiated agreements related to a potential site in Odessa, Texas. To date, there have been no material developments with respect to this arrangement, nor has the Company received any consideration from FSCF or incurred any expense in connection therewith. Martijn Dekker, a Company director, is an officer and director of FSCF and his affiliate has an ownership interest in FSCF.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

LeasesThe Company leases office space and other office equipment under operating lease arrangements with initial terms greater than 12 months. The office lease in Hillsborough, New Jersey was extended until 2026. In August 2023, the Company entered into a 40-month office lease in Houston, Texas which commenced in November 2023. Office space is leased to provide adequate workspace for all employees.

16

Lease costs for the Company’s operating leases are presented below.Statements of OperationsThree Months EndedJune 30,Six Months EndedJune 30,Lease CostClassification2025202420252024Operating lease costGeneral and administrative expense$94,313 $84,104 $188,626 $163,909 Variable lease costGeneral and administrative expense45,558 34,599 93,732 73,460 Total operating lease cost$139,871 $118,703 $282,358 $237,369 Supplemental information related to the Company’s operating lease arrangements was as follows:Six Months EndedJune 30,Operating lease – supplemental information20252024ROU assets