Company: VGASW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015480
Chunk: 126

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 126
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ization. The net assets of Intermediate are stated at their historical value within the financial statements with no goodwill or other intangible assets recorded.Property, Plant and EquipmentProperty, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. The estimated useful lives of assets are as follows:Computers, office equipment and hardware3 – 5 yearsFurniture and fixtures7 yearsMachinery and equipment7 yearsLeasehold improvementsShorter of the lease term (including estimated renewals) or the estimated useful lives of the improvementDirectly identifiable costs incurred in connection with constructing an asset are capitalized as construction in progress assets from the time that a project is deemed probable of occurring. Depreciation expense is not recorded for construction in progress assets until construction is completed and the construction in progress assets are placed into service. Cost reimbursement from project participants related to assets under construction is recorded as an offset to the construction in progress assets. Upon entry into the JDA with Cottonmouth, the Company determined that the Permian Basin Project was probable of occurring and began capitalizing associated costs as construction in progress, net of reimbursements received. See Notes 1, 4 and 13 for further information.Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recorded in the period realized.

F-10

Table of Contents

Indefinite-Lived Intangible AssetsThe Company’s intangible asset consists of its intellectual property and patented technology associated with the Company’s patented STG+® process technology, and is considered an indefinite-lived intangible and is not subject to amortization. ImpairmentsLong-Lived AssetsThe Company evaluates the carrying value of long-lived assets when indicators of impairment exist. The carrying value of a long-lived asset is considered impaired when the estimated separately identifiable, undiscounted cash flows from such asset are less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the estimated cash flows discounted at a rate commensurate with the risk involved. During the years ended December 31, 2024 and 2023, the Company did not record any impairment charges.Intangible AssetsA qualitative assessment of indefinite-lived intangible assets is performed in order to