Verde Clean Fuels, Inc. Reports First Quarter 2024 Results

Published

HOUSTON--(BUSINESS WIRE)-- Verde Clean Fuels, Inc. (“Verde” or the “Company”) (Nasdaq: VGAS), a renewable energy company focused on the development of commercial production facilities to convert syngas derived from diverse feedstocks into gasoline, today reported first quarter 2024 GAAP diluted net loss per share of $(0.13). The first quarter net loss consists of ongoing general and administrative and research and development expenses related to the Company’s continuing focus on development of its first commercial facility based on Verde’s proprietary STG+® technology which is designed to produce gasoline utilizing either stranded natural gas or waste feedstocks.

Business Update Highlights Through May 14, 2024

  • Verde is participating in a US Department of Energy (DOE) funded consortium that is studying the production of zero emission methanol. A consortium, led by TDA Research, Inc. and which also includes the University of ColoradoDenver, plans to complete a conceptual design study for a system having the potential of capturing and then utilizing ambient CO2 to produce “green” methanol. TDA will design a direct air capture (DAC) process for sourcing of CO2 from the atmosphere and lead the integration of the DAC with the methanol plant. Verde plans to design and model the methanol production unit using its proprietary STG+® technology, with the goal to utilize CO2 from the DAC, and hydrogen from a carbon-free source, to potentially produce green methanol. Total funding under the award to the consortium is $400,000. An additional $100,000 is expected to come from non-DOE sources, for aggregate funding of up to $500,000 for the project. Based on the results of the study, other project phases may follow. The Company expects that methanol may play a vital role in decarbonizing the maritime and chemical industries.
  • Verde continues to proceed with the selection process for FEED/EPC services for the Cottonmouth Ventures Permian Basin project. Since the execution of the Cottonmouth Ventures JDA in February 2024, Verde continues with the selection process of a front-end engineering and design (“FEED”) and engineering, procurement, and construction (“EPC”) partner.
  • Verde is in preliminary discussions with various potential offtake parties of carbon credits and gasoline. Verde is in preliminary discussions with various parties with respect to long-term offtake arrangements for the purchase of D3 RINs, LCFS Credits, and gasoline that may be produced in any future projects. Such potential arrangements, if entered into, could help manage price risk associated with these commodities and could support expected project finance requirements.

VERDE CLEAN FUELS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

General and administrative expenses

 

$

2,789,376

 

 

$

4,265,640

 

Contingent consideration

 

 

-

 

 

 

(1,299,000

)

Research and development expenses

 

 

85,835

 

 

 

82,662

 

Total operating loss

 

 

2,875,211

 

 

 

3,049,302

 

 

 

 

 

 

 

 

 

 

Other (income)

 

 

(346,128

)

 

 

-

 

Interest expense

 

 

-

 

 

 

67,825

 

Loss before income taxes

 

 

(2,529,083

)

 

 

(3,117,127

)

Provision for income taxes

 

 

-

 

 

 

-

 

Net loss

 

$

(2,529,083

)

 

$

(3,117,127

)

Net loss attributable to noncontrolling interest

 

$

(1,756,712

)

 

$

(2,542,666

)

Net loss attributable to Verde Clean Fuels, Inc.

 

$

(772,371

)

 

$

(574,461

)

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Weighted average Class A common stock outstanding, basic and diluted

 

 

6,173,716

 

 

 

6,124,245

 

Net loss per share of Class A common stock

 

$

(0.13

)

 

$

(0.09

)

VERDE CLEAN FUELS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

As of

 

 

 

March 31, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,941,604

 

 

$

28,779,177

 

Restricted cash

 

 

100,000

 

 

 

100,000

 

Prepaid expenses

 

 

1,406,010

 

 

 

373,324

 

Total current assets

 

 

27,447,614

 

 

 

29,252,501

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Security deposits

 

 

160,669

 

 

 

160,669

 

Property, plant and equipment, net

 

 

67,791

 

 

 

62,505

 

Operating lease right-of-use assets, net

 

 

453,862

 

 

 

524,813

 

Intellectual patented technology

 

 

1,925,151

 

 

 

1,925,151

 

Total non-current assets

 

 

2,607,473

 

 

 

2,673,138

 

Total assets

 

$

30,055,087

 

 

$

31,925,639

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

367,036

 

 

$

184,343

 

Accrued liabilities

 

 

2,227,546

 

 

 

1,976,812

 

Operating lease liabilities – current portion

 

 

326,446

 

 

 

297,380

 

Other current liabilities

 

 

32,027

 

 

 

-

 

Total current liabilities

 

 

2,953,055

 

 

 

2,458,535

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Promissory note – related party

 

 

-

 

 

 

409,612

 

Operating lease liabilities

 

 

147,472

 

 

 

232,162

 

Total non-current liabilities

 

 

147,472

 

 

 

641,774

 

Total liabilities

 

 

3,100,527

 

 

 

3,100,309

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Class A common stock, par value $0.0001 per share, 9,428,797 and 9,387,836 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

 

 

943

 

 

 

939

 

Class C common stock, par value $0.0001 per share, 22,500,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023

 

 

2,250

 

 

 

2,250

 

Additional paid in capital

 

 

35,673,145

 

 

 

35,014,836

 

Accumulated deficit

 

 

(24,695,101

)

 

 

(23,922,730

)

Noncontrolling interest

 

 

15,973,323

 

 

 

17,730,035

 

Total stockholders’ equity

 

 

26,954,560

 

 

 

28,825,330

 

Total liabilities and stockholders’ equity

 

$

30,055,087

 

 

$

31,925,639

 

About Verde Clean Fuels, Inc.

Verde Clean Fuels, Inc. is a renewable energy company focused on the development of commercial production plants to convert syngas, derived from diverse feedstocks including biomass or stranded or flared natural gas into gasoline through its innovative and proprietary liquid fuels technology, the STG+® process. Through its STG+® process, Verde converts syngas into fully finished fuels that require no additional refining, such as Reformulated Blend-stock for Oxygenate Blending (“RBOB”) gasoline. To learn more, please visit www.verdecleanfuels.com.

Forward-Looking Statements

The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding Verde’s expectations and any future financial performance, as well as Verde’s strategy, future operations, financial position, prospects, plans and objectives of management are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “plans,” “goal,” “project,” “preliminary discussions,” “designed,” “potential,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Verde management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Verde disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. Verde cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Verde. These risks include, but are not limited to: general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the failure to realize the anticipated benefits of a particular transaction; the risks related to the growth of Verde’s business and the timing of expected business milestones; the ability of Verde to obtain financing in connection with a particular transaction or in the future; and the effects of competition on Verde’s future business. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. There may be additional risks that Verde presently do not know or that Verde currently believe are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact Verde’s expectations and projections can be found in Verde’s filings with the Securities and Exchange Commission (the “SEC”). Verde’s SEC filings are available publicly on the SEC’s website at www.sec.gov.

Source: Verde Clean Fuels, Inc.

Investor Contact: Caldwell Bailey (ICR) verdeIR@icrinc.com

Source: Verde Clean Fuels, Inc.

In This Story

VGAS