Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 368

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 368
---
) 
    $689  
    $1,943  
     $ —  
    $(184,365)
  
    Denominator: 

    Basic weighted average common stock outstanding 
     735,246  
     2,073,072  
      —  
     2,000,000 
  
    Basic net income (loss) per common stock 
    $0.00  
    $0.00  
     $—  
    $(0.09)

Derivative Financial Instruments

The Company accounts for
derivative financial instruments in accordance with ASC 815, “Derivatives and Hedging”. For derivative financial instruments
that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value upon issuance and remeasured
at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative financial
instruments is evaluated at the end of each reporting period. There were no derivative financial instruments as of December 31, 2024
and 2023.

Warrant 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