Company: VGASW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015480
Chunk: 139

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 139
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 classified as a finance lease. On August 31, 2023, the Company terminated the land lease in Maricopa, Arizona. In connection with the termination, the Company incurred a termination fee of three months’ base rent. The termination was effective four months after the termination notice; thus, the Company had a continued right-of-use and obligation to make rental payments for use of the land through December 31, 2023. The Company accounted for the termination with a continued right-of-use as a lease modification resulting in a reclassification of the lease from finance to operating as of the lease modification date. Accordingly, the Company incurred finance lease costs up to the modification date and operating lease costs subsequent to the modification until lease termination. The Company exited the lease as of December 31, 2023. Lease costs for the Company’s operating and finance leases are presented below.Lease CostStatements of Operations ClassificationFor theYear EndedDecember 31, 2024For theYear EndedDecember 31, 2023Amortization of finance lease ROU assetGeneral and administrative expense$- $127,617 Interest on finance lease liabilityInterest expense- 236,699 Total finance lease cost$- $364,316 Operating lease costGeneral and administrative expense$336,415 $431,245 Variable lease costGeneral and administrative expense169,541 151,731 Total operating lease cost$505,956 $582,976 Total lease cost$505,956 $947,292 

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Table of Contents

Maturities of the Company’s operating leases as of December 31, 2024 are presented below.Maturity of lease liabilitiesOperating Leases2025$162,409 202669,531 202711,823 2028- Thereafter- Total future minimum lease payments243,763 Less: interest(11,601)Present value of lease liabilities$232,162 Supplemental information related to the Company’s operating lease arrangements was as follows:Operating leases - supplemental informationAs ofDecember 31,2024As ofDecember 31,2023ROU assets obtained in exchange for operating lease liabilities$353,162 $524,813 Remaining lease term - operating leases16 months23 monthsDiscount rate - operating leases7.50 %7.50 %CommitmentsThe Company had a restricted cash balance of $100,000 as of both December 31, 2024 and 202