Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 323

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 323
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ise Tax may apply to any redemptions of our common stock, including redemptions in connection with an initial business combination,
extension vote or otherwise, unless an exemption is available. The Excise Tax would be payable by us and not by the redeeming holders.
Generally, issuances of securities by us in connection with our initial business combination transaction (including any PIPE transaction
at the time of our initial business combination), as well as any other issuances of securities not in connection with our initial business
combination, would be expected to reduce the amount of the Excise Tax in connection with redemptions occurring in the same calendar year,
but the number of securities redeemed may exceed the number of securities issued.

Whether and to what extent
we would be subject to the Excise Tax in connection with a business combination, extension vote or otherwise would depend on a number
of factors, including (i) the fair market value of the redemptions and repurchases in connection with the business combination, extension
vote or otherwise, (ii) the structure of a business combination, (iii) the nature and 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