Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 322

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 322
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 for special purpose acquisition companies has changed in ways adverse to us and
our management team. Fewer insurance companies are offering quotes for directors and officers liability coverage, the premiums charged
for such policies have generally increased and the terms of such policies have generally become less favorable. These trends may continue
into the future.

The increased cost and decreased
availability of directors and officers liability insurance could make it more difficult and more expensive for us to negotiate an initial
business combination. In order to obtain directors and officers liability insurance or modify its coverage as a result of becoming a public
company, the post-business combination entity might need to incur greater expense, accept less favorable terms or both. However,
any failure to obtain adequate directors and officers liability insurance could have an adverse impact on the post-business combination’s
ability to attract and retain qualified officers and directors.

In addition, even after we
were to complete an initial business combination, our directors and officers could still be subject to potential liability from claims
arising from conduct alleged to have occurred prior to the initial business combination. As a result, in order to protect our directors
and officers, the post- business combination entity may need to purchase additional insurance with respect to any such claims (“run-off insurance”).
The need for run-off insurance would be an added expense for the post-business combination entity, and could interfere with
or frustrate our ability to consummate an initial business combination on terms favorable to our investors.

Risks Related to Ownership of Our Securities 

Inflation Reduction Act of 2022 may result in the imposition
of an excise tax on the Company

On August 16, 2022, then
President Biden signed into law the Inflation Reduction Act of 2022 (the “IR Act”), which, among other things, imposes
a 1% excise tax on any publicly traded domestic corporation that repurchases its stock after December 31, 2022 (the “Excise
Tax”). The Excise Tax is imposed on the fair market value of the repurchased stock, with certain exceptions. Because we are
a Delaware corporation and our securities are traded on Nasdaq, we are a “covered corporation” within the meaning of
the IR Act. While not free from doubt, absent any further guidance from the U.S. Department of the Treasury (the “Treasury”),
who has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the Excise Tax,
the Exc