Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 213

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 213
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 and Right Instruments

The Company accounted for
the Public Warrants and Private Warrants and Public Rights and Private Rights issued in connection with the Initial Public Offering and
the private placement in accordance with the guidance contained in FASB ASC Topic 815 “Derivatives and Hedging”. Accordingly,
the Company evaluated and classified the warrant and right instruments under equity treatment.

F-12

Common Stock Subject to Possible Redemption 

The Public Shares contain
a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if
there is a stockholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance with ASC
480-10-S99, the Company classifies Public Shares subject to redemption outside of permanent equity as the redemption provisions are not
solely within the control of the Company. The Public Shares sold as part of the Units in the Initial Public Offering were issued with
other freestanding instruments (i.e., Public Warrants and Public Rights) and as such, the initial carrying value of Public Shares classified
as temporary equity are the allocated proceeds determined in accordance with ASC 470-20. The Company recognizes changes in redemption
value immediately as it occurs and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each
reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book
value to redemption amount value. The change in the carrying value of redeemable shares will result in charges against additional paid-in
capital (to the extent available) and accumulated deficit. Accordingly, at December 31, 2024 and 2023, common stock subject to possible
redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s
balance sheets, respectively. At December 31, 2024 and 2023, the common stock subject to possible redemption reflected in the balance
sheet is reconciled in the following table:

    Gross proceeds 
    $69,000,000 
  
    Less: 

    Proceeds allocated to Public Warrants 
     (207,000)
  
    Proceeds allocated to Public Rights 
     (621,000)
  
    Common stock issuance costs 
     (3,354,893)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     4,416,151 
  
    Common stock subject