Company: NOEMW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042720
Chunk: 65

Company: CO2 Energy Transition Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 ended March 31, 2025, and 2024, respectively. The effective tax rate differs from
the statutory tax rate of 21% due to the valuation allowance on the deferred tax assets.

The Company recognizes accrued
interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts
accrued for interest and penalties as of March 31, 2025 and December 31, 2024. The Company is currently not aware of any issues under
review that could result in significant payments, accruals or material deviation from its position.

The Company has identified
the United States as its only “major” tax jurisdiction. The Company may be subject to potential examination by federal and
state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions,
the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does
not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (Loss) per Common Stock

The Company complies with
accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares,
which are referred to as redeemable common stock and non-redeemable common stock. Income and losses are shared pro rata between the two
classes of shares. Net (loss) income per common share is calculated by dividing the net (loss) income by the weighted average shares of
common stock outstanding for the respective period.

The calculation of diluted net (loss) income does not consider the
effect of the warrants underlying the Units sold in the Initial Public Offering (including the consummation of the Over-allotment) and
the private placement warrants to purchase an aggregate of 7,165,000 shares of common stock in the calculation of diluted (loss) income
per share, because their exercise is contingent upon future events. As a result, diluted net (loss) income per share is the same as basic
net (loss) income per share for the three months ended March 31, 2025 and 2024. Accretion associated with the redeemable Class A common
stock is excluded from earnings per share as the redemption value approximates fair value.

12

CO2 ENERGY TRANSITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025