Company: VGASW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025504
Chunk: 59

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 59
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Other Income

Other income primarily consists of interest and dividend income earned on our cash and cash equivalents balances.

Income Tax Effects

We hold 49.49% of the economic interest in OpCo, which is treated as a partnership for U.S. federal income tax purposes. As a partnership, OpCo generally is not subject to U.S. federal income tax under current U.S. tax laws. We are subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to our distributive share of the net taxable income (loss) and any related tax credits of OpCo.

Intermediate was historically and remains a disregarded subsidiary of a partnership for U.S. Federal income tax purposes. As a direct result of the Business Combination, OpCo became the sole member of Intermediate. As such, OpCo’s distributive share of any net taxable income or loss and any related tax credits of Intermediate are then distributed to us.

Results of Operations

Comparison of the three months ended March 31, 2025 and March 31, 2024

Three Months EndedMarch 31,20252024General and administrative expenses$2,997,522 $2,789,376 Research and development expenses183,306 85,835 Total operating loss3,180,828 2,875,211 Other (income)(530,243)(346,128)Loss before income taxes2,650,585 2,529,083 Income tax expense53,000 — Net loss$2,703,585 $2,529,083 

General and Administrative

General and administrative expenses increased approximately $0.2 million, or 8%, for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to additional headcount. 

Of our general and administrative expenses for the three months ended March 31, 2025 and 2024, $65,829 and $222,407, respectively, were business development costs. The decrease was primarily due to development costs associated with the Permian Basin Project incurred in the comparative period prior to our entry into the JDA. 

Research and Development

Research and development expenses increased approximately $0.1 million, or 114%, for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to additional headcount and higher software costs.

Other Income

Other