Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 168

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 168
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 amount of any “PIPE”
or other equity issuances in connection with a business combination (or otherwise issued not in connection with a business combination
but issued within the same taxable year of a business combination) and (iv) the content of regulations and other guidance from the
Treasury. Consequently, the Excise Tax may make a transaction with us less appealing to potential business combination targets. Finally,
based on recently issued interim guidance from the Internal Revenue Service and Treasury, subject to certain exceptions, the Excise Tax
should not apply in the event of our complete liquidation.

We will not use trust funds
to pay any excise tax that may be incurred.

Additionally, our Chief Executive
Officer and our Chief Financial Officer concluded that as of December 31, 2024, the design and operation of our disclosure controls and
procedures were not effective, due to the material weakness in our internal control over financial reporting related to the Company’s
accounting for complex financial instruments. As a result, we performed additional analysis as deemed necessary to ensure that our financial
statements were prepared in accordance with U.S. generally accepted accounting principles. Accordingly, management believes that the financial
statements included in this Annual Report on Form 10-K present fairly in all material respects our financial position, results of
operations, and cash flows for the period presented.

51

Effective internal controls
are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate steps to remediate the material
weakness. These remediation measures may be time consuming and costly and there is no assurance that these initiatives will ultimately
have the intended effects. If we identify any new material weaknesses in the future, any such newly identified material weakness could
limit our ability to prevent or detect a misstatement of our accounts or disclosures that could result in a material misstatement of
our annual or interim financial statements. In such case, we may be unable to maintain compliance with securities law requirements regarding
timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our
financial reporting and our stock price may decline as a result. We cannot assure you that the measures we have taken to date, or any
measures we may take in the future, will be sufficient to avoid potential future material weaknesses.

The ability of our public stockholders to
exercise redemption rights with respect to a large number of our shares could increase the probability that our initial business combination
would be unsuccessful and that you would have to