Company: VGASW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040155
Chunk: 52

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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. As the exercise price of our Warrants is $11.50 per share of Class A common stock, we do not expect that Warrants will be exercised in the foreseeable future. In addition, to the extent we raise funds through the sale of additional equity securities, our stockholders would experience additional dilution. If we raise funds through the issuance of debt securities or through loan arrangements, the terms of such debt securities or loan arrangements could require significant interest payments, contain covenants that restrict our business, or contain other unfavorable terms. The current high interest rate environment adds additional risk and expense to the issuance of debt securities or loan arrangements to fund capital investment.

Summary Statement of Cash Flows for the Six Months Ended June 30, 2025 and June 30, 2024

The following table sets forth the primary sources and uses of cash and cash equivalents for the periods presented below:

Six Months Ended June 30,20252024Net cash used in operating activities$(5,883,483)$(5,016,976)Net cash used in investing activities(551,927)(552,300)Net cash provided by financing activities49,446,108 - Net change in cash, cash equivalents and restricted cash$43,010,698 $(5,569,276)

Cash Flows Used in Operating Activities

Net cash used in operating activities increased approximately $0.9 million during the six months ended June 30, 2025 as compared to the same period in 2024. The increase was primarily due to cash paid for D&O insurance and excise tax, partially offset by higher interest and dividend income earned on our cash and cash equivalents, which increased due to the net proceeds received from the closing of the PIPE Investment in January 2025.

Cash Flows Used in Investing Activities

Net cash used in investing activities during the six months ended June 30, 2025 was largely consistent as compared to the same period in 2024. The activities were primarily related to development costs incurred in connection with the JDA, partially offset by cash reimbursements for such capital expenditures received from Cottonmouth. See Note 4 in the accompanying unaudited condensed consolidated financial statements for further information.

Cash Flows Provided by Financing Activities

Net cash provided by financing activities was $49.4 million for the six months ended June 30, 2025 as compared to $0 for the same period in 2024. The increase was due to the net proceeds from the closing of the PIPE