Company: VGASW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025504
Chunk: 49

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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)(8,323)Net cash provided by financing activities49,950,000 - Net change in cash, cash equivalents and restricted cash$46,236,293 $(2,837,573)

27

Cash Flows Used in Operating Activities

Net cash used in operating activities increased approximately $0.9 million during the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to cash paid for D&O insurance and excise taxes, partially offset by an increase in interest and dividend income.

Cash Flows Used in Investing Activities

Net cash used in investing activities increased marginally during the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily attributable 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 consolidated financial statements for further information.

Cash Flows Provided by Financing Activities

Net cash provided by financing activities was $49.9 million for the three months ended March 31, 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 Investment in January 2025. 

Commitments and Contractual Obligations

The Company had a restricted cash balance of $100,000 as of both March 31, 2025 and December 31, 2024. The restricted cash balance is maintained in support of a letter of credit.

Off-Balance Sheet Arrangements

As of March 31, 2025, we have not engaged in any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Critical Accounting Policies and Estimates

Our unaudited consolidated financial statements are based on the selection and application of significant accounting policies. The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of expenses and allocated charges during the reporting period. Actual results could differ from those estimates. However, we are not currently aware of any reasonably likely events or circumstances that would result in materially different results.

We describe our significant accounting policies in Note 2 – Significant Accounting Policies, of the notes to the consolidated financial statements included in our Annual Report on Form