Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 210

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 210
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 ASC 320 (Investments—Debt and Equity Securities), where securities
are presented at fair value on the balance sheets. Gains and losses resulting from the change in fair value of investments held in the
Trust Account are included in interest earned on investments held in the Trust Account in the statements of operations.

F-10

Concentration of Credit Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds
could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. 

Offering Costs

The Company complies with
the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Offering
costs consist principally of professional and registration fees that are related to the Initial Public Offering. Financial Accounting
Standards Board (“FASB”) ASC 470-20, “Debt with Conversion and Other Options”, addresses the allocation
of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate
Initial Public Offering proceeds from the Units between common stock, warrants, and rights, using the residual method by allocating
Initial Public Offering proceeds first to the assigned value of the warrants and rights and then to the common stock. Offering costs
allocated to Public Shares were charged to temporary equity, and offering costs allocated to Public Rights, Public Warrants and Private
Units were charged to stockholders’ deficit, as Public and Private Rights and Warrants, after management’s evaluation, were accounted
for under equity treatment.

Fair Value of Financial Instruments

The fair value of the Company’s
assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,”
approximates the carrying amounts represented in the balance sheets, primarily due to its short-term nature.

Income Taxes

The Company follows the
asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities
are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts
of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary differences are