Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 167

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 167
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and officers, the post- business combination entity may need to purchase additional insurance with respect to any such claims (“run-off insurance”).
The need for run-off insurance would be an added expense for the post-business combination entity, and could interfere with
or frustrate our ability to consummate an initial business combination on terms favorable to our investors.

Risks Related to Ownership of Our Securities 

Inflation Reduction Act of 2022 may result in the imposition
of an excise tax on the Company

On August 16, 2022, then
President Biden signed into law the Inflation Reduction Act of 2022 (the “IR Act”), which, among other things, imposes
a 1% excise tax on any publicly traded domestic corporation that repurchases its stock after December 31, 2022 (the “Excise
Tax”). The Excise Tax is imposed on the fair market value of the repurchased stock, with certain exceptions. Because we are
a Delaware corporation and our securities are traded on Nasdaq, we are a “covered corporation” within the meaning of
the IR Act. While not free from doubt, absent any further guidance from the U.S. Department of the Treasury (the “Treasury”),
who has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the Excise Tax,
the Excise 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