Company: VGASW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015480
Chunk: 154

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 154
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 and research and development financial statement line items on the consolidated statements of operations. The Company's significant expenses are primarily related to compensation, outside services, and insurance. Other segment items represent the difference between reported significant segment expenses and consolidated operating loss. Significant segment expenses and other segment items are reviewed by the CODM on a disaggregated basis as follows:For the Year EndedDecember 31,2024December 31,2023Outside services$4,947,965 $4,436,230 Employee compensation-related2,632,371 1,524,777 Insurance1,394,539 1,497,402 Share-based compensation1,354,005 2,901,569 Rent, property and office888,209 988,546 Contingent consideration- (1,299,000)Other segment items (1)439,753 495,862 Total operating loss$11,656,842 $10,545,386 (1)Other segment items primarily include depreciation and amortization, meals, travel and conference expense and franchise taxes.

NOTE 15 — SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions that occurred after the balance sheet date, up to the date which the consolidated financial statements were issued. Based upon this review, the Company did not identify any other subsequent events, not previously disclosed, that would have required adjustment or disclosure in the consolidated financial statements, except as described below:PIPE InvestmentOn December 18, 2024, the Company entered into a Class A Common Stock Purchase Agreement (the “Purchase Agreement”) with Cottonmouth pursuant to which the Company agreed to issue and sell to Cottonmouth in a private placement an aggregate of 12,500,000 shares of its Class A common stock, par value $0.0001 (“Class A Common Stock”), at a price of $4.00 per share for an aggregate purchase price of $50,000,000 (the “PIPE Investment”). Closing of the PIPE Investment occurred on January 29, 2025. The Company expects to use proceeds from the PIPE Investment to further the development and construction of potential natural gas-to-gasoline production plants in the Permian Basin and for other general corporate purposes.

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Table of Contents

The investment represents the second investment by Cottonmouth in Verde over the past two years, for a total investment of $70 million, making Cottonmouth the second largest stockholder of the Company.Organizational ChangesIn connection with the consummation