Company: VGASW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025504
Chunk: 30

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 net of amounts reimbursable by Cottonmouth of $2,783,228. See Note 3 for further information. 

NOTE 5 - ACCRUED LIABILITIES

Accrued liabilities consist of the following:As ofMarch 31, 2025December 31, 2024Accrued bonus$467,856 $331,398 Accrued construction in progress18,200 - Accrued legal fees238,967 467,645 Accrued professional fees79,875 68,000 Accrued income taxes53,000 - Accrued excise tax liability- 978,412 Other accrued expenses52,238 61,710 Total accrued liabilities$910,136 $1,907,165 Inflation Reduction Act of 2022On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. The amount of repurchases applicable to the excise tax can be reduced by the fair market value of any issuances at the time of issuance that occurred during the year, as well as certain exceptions provided by the U.S. Department of the Treasury. Based on Congressional initiatives, it is possible that some or all of the IR Act may be subject 

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to amendment or repeal, including through Congressional budget reconciliation. The Company is currently monitoring the status of any efforts to amend or repeal the IR Act.As of December 31, 2024, the Company had recorded an accrual for excise tax liability of $978,412. During the three months ended March 31, 2025, the accrued excise tax liability was paid in full.

NOTE 6 – RELATED PARTY TRANSACTIONS

HoldingsThe Company has a related party relationship with Holdings whereby Holdings holds a majority ownership in the Company via voting shares and has control of its Board of Directors. Further, Holdings possesses 3,500,000 earn out shares. The Holdings equity compensation instruments consist of