Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 870

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 870
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 to the terms of the underwriting agreement.

65

JOBS Act

The JOBS Act contains provisions
that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth
company” and under the JOBS Act are allowed to comply with new or revised accounting pronouncements based on the effective
date for private (not publicly-traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as
a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required
for non-emerging growth companies. As a result, the financial statements may not be comparable to companies that comply with new or revised
accounting pronouncements as of public company effective dates.

Additionally, subject to
certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we plan to rely on rules which
allow us to, among other things, delay the required (i) provision of an auditor’s attestation report on our system of internal
controls over financial reporting pursuant to Section 404, (ii) provision of all of the compensation disclosure that may be required
of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) compliance with any
requirement that may be adopted by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit rotation or a supplement
to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis),
and (iv) disclosure certain executive compensation related items such as the correlation between executive compensation and performance
and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years
following the completion of our IPO or until we are  longer an “emerging growth company,” whichever is earlier.

Common Stock Subject to Possible Redemption

We account for our common
stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”)
Topic 480 “Distinguishing Liabilities from Equity.” Shares of common stock subject to mandatory redemption (if any)
are classified as liability instruments and are measured at fair value. Shares of conditionally redeemable common stock (including common
stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of
uncertain events not solely within our control) are classified as temporary equity. At all other