Company: VGASW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052351
Chunk: 33

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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,Lease CostClassification2025202420252024Operating lease costGeneral and administrative expense$94 $86 $283 $250 Variable lease costGeneral and administrative expense48 48 141 122 Total operating lease cost$142 $134 $424 $372 Supplemental information related to the Company’s operating lease arrangements are as follows:(in thousands)Nine Months EndedSeptember 30,Operating lease – supplemental information20252024ROU assets obtained in exchange for operating lease$309 $353 Remaining lease term – operating leases0.8 years1.4 yearsDiscount rate – operating leases7.50%7.50%CommitmentsAs of September 30, 2025 and December 31, 2024, the Company had restricted cash of $100. The Company's restricted cash is maintained in support of a letter of credit.ContingenciesAs of September 30, 2025 and December 31, 2024, the Company was not party to any litigation and has not recorded any contingent liabilities.

NOTE 8 – STOCKHOLDERS’ EQUITY

Earn Out ConsiderationEarn out shares potentially issuable as part of the Business Combination are recorded within stockholders’ equity as the instruments are deemed to be indexed to the Company’s common stock and meet the equity classification criteria under ASC 815. Earn out shares contain market conditions for vesting and were awarded to eligible stockholders, as described further below, and not to current employees.As consideration for the contribution of the equity interests in Intermediate, Holdings received earn out consideration (“Holdings earn out”) of 3,500,000 shares of Class C common stock and a corresponding number of Class C OpCo Units subject to vesting with the achievement of separate market conditions. One half of the Holdings earn out shares will meet the market condition when the volume-weighted average share price (“VWAP”) of the Class A common stock is greater than or equal to $15.00 for any 20 trading days within any period of 30 consecutive trading days within five years of the Closing Date. The second half will vest when the VWAP of the Class A common stock is greater than or equal to $18.00 over the same measurement period.Additionally, the Sponsor received earn out consideration (“Sponsor earn out” and, together with Holdings earn out, the “Earn Out Equity”) of 3,234,375 shares of Class A common stock subject to forfeiture which will no longer be subject to forfeiture with