Company: NOEMW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042720
Chunk: 17

Company: CO2 Energy Transition Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 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 March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024, the common stock subject to possible redemption reflected in the balance
sheets 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 to possible redemption, December 31, 2024 
    $69,233,258 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     611,303 
  
    Common stock subject to possible redemption, March 31, 2025 
    $69,844,561 

Recent Accounting Standards

In November 2023, the FASB
issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”.
The amendments in this ASU require disclosures, on an annual and interim