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HOUSTON, August 13, 2024--(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 second quarter 2024 GAAP diluted net loss per share of $(0.14). The second quarter 2024 consolidated net loss was $2.8 million, of which $0.9 million was attributable to Verde. The second quarter net loss consists primarily 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. The Company ended the second quarter with $23.2 million of cash and cash equivalents.
Business Update Highlights Through August 13, 2024
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Verde selected Chemex Global as its FEED services partner for the Cottonmouth Ventures Permian Basin project. As announced in June 2024, Chemex Global was selected to spearhead the front-end engineering and design for the proposed development, construction, and operation of a natural gas-to-gasoline facility in the Permian Basin. With the selection of Chemex Global, FEED work has commenced and is expected to be completed in early 2025.
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Verde is in preliminary discussions with various potential offtake parties with respect to carbon credits and gasoline. Verde is in preliminary discussions with various parties with respect to potential offtake arrangements for the purchase of D3 RINs and LCFS credits as well as gasoline that may be produced in any future project. The goal of any such potential arrangements, if finalized and entered into, would be to help manage price risk associated with these credits and the gasoline as well as to possibly support expected project finance requirements.
"Kicking off work with our FEED services partner, Chemex Global, on the Cottonmouth project was an important step forward in pursuing our first commercial scale facility for producing gasoline from waste natural gas in the Permian Basin," said Verde CEO Ernest Miller. "We continue to work with Cottonmouth on this proposed project, with the goal to help Diamondback Energy reduce flaring and overall environmental impact from its Permian operations."
| VERDE CLEAN FUELS, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
|
| |||||||||||||||||
|
|
| Three Months Ended |
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| Six Months Ended | ||||||||||||
|
|
| 2024 |
| 2023 |
|
| 2024 |
| 2023 | ||||||||
| General and administrative expenses |
| $ | 2,988,774 |
|
| $ | 2,457,882 |
|
|
| $ | 5,778,150 |
|
| $ | 6,723,522 |
|
| Contingent consideration |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,299,000 | ) | |
| Research and development expenses |
|
| 173,020 |
|
|
| 85,812 |
|
|
|
| 258,855 |
|
|
| 168,474 |
|
| Total operating loss |
|
| 3,161,794 |
|
|
| 2,543,694 |
|
|
| 6,037,005 |
|
|
| 5,592,996 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Other (income) |
|
| (316,208 | ) |
|
| (94,887 | ) |
|
|
| (662,336 | ) |
|
| (94,887 | ) |
| Interest expense |
|
| - |
|
|
| 101,443 |
|
|
|
| - |
|
|
| 169,268 |
|
| Loss before income taxes |
|
| (2,845,586 | ) |
|
| (2,550,250 | ) |
|
|
| (5,374,669 | ) |
|
| (5,667,377 | ) |
| Income tax (benefit) |
|
| (13,866 | ) |
|
| - |
|
|
|
| (13,866 | ) |
|
| - |
|
| Net loss |
| $ | (2,831,720 | ) |
| $ | (2,550,250 | ) |
|
| $ | (5,360,803 | ) |
| $ | (5,667,377 | ) |
| Net loss attributable to noncontrolling interest |
| $ | (1,928,013 | ) |
| $ | (1,801,103 | ) |
|
| $ | (3,684,725 | ) |
| $ | (4,343,770 | ) |
| Net loss attributable to Verde Clean Fuels, Inc. |
| $ | (903,707 | ) |
| $ | (749,147 | ) |
|
| $ | (1,676,078 | ) |
| $ | (1,323,607 | ) |
|
|
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|
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|
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| ||||
| Earnings per share |
|
|
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| ||||
| Weighted average Class A common stock outstanding, basic and diluted |
|
| 6,297,162 |
|
|
| 6,130,487 |
|
|
|
| 6,235,439 |
|
|
| 6,127,383 |
|
| Loss per Share of Class A common stock |
| $ | (0.14 | ) |
| $ | (0.12 | ) |
|
| $ | (0.27 | ) |
| $ | (0.22 | ) |
| VERDE CLEAN FUELS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
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| ||||||||
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| As of | ||||||
|
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| June 30, |
| December 31, | ||||
| ASSETS |
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| Current assets: |
|
|
|
| ||||
| Cash and cash equivalents |
| $ | 23,209,901 |
|
| $ | 28,779,177 |
|
| Accounts receivable - other |
|
| 644,194 |
|
|
| - |
|
| Restricted cash |
|
| 100,000 |
|
|
| 100,000 |
|
| Prepaid expenses |
|
| 1,012,989 |
|
|
| 373,324 |
|
| Total current assets |
|
| 24,967,084 |
|
|
| 29,252,501 |
|
|
|
|
|
|
|
|
| ||
| Non-current assets: |
|
|
|
|
|
| ||
| Security deposits |
|
| 160,669 |
|
|
| 160,669 |
|
| Property, plant and equipment, net |
|
| 405,311 |
|
|
| 62,505 |
|
| Operating lease right-of-use assets, net |
|
| 377,362 |
|
|
| 524,813 |
|
| Intellectual patented technology |
|
| 1,925,151 |
|
|
| 1,925,151 |
|
| Total non-current assets |
|
| 2,868,493 |
|
|
| 2,673,138 |
|
| Total assets |
| $ | 27,835,577 |
|
| $ | 31,925,639 |
|
|
|
|
|
|
|
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| ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
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| ||
| Current liabilities: |
|
|
|
|
|
| ||
| Accounts payable |
| $ | 211,986 |
|
| $ | 184,343 |
|
| Accrued liabilities |
|
| 2,816,869 |
|
|
| 1,976,812 |
|
| Operating lease liabilities – current portion |
|
| 287,289 |
|
|
| 297,380 |
|
| Other current liabilities |
|
| 24,977 |
|
|
| - |
|
| Total current liabilities |
|
| 3,341,121 |
|
|
| 2,458,535 |
|
|
|
|
|
|
|
|
| ||
| Non-current liabilities: |
|
|
|
|
|
| ||
| Promissory note – related party |
|
| - |
|
|
| 409,612 |
|
| Operating lease liabilities |
|
| 108,989 |
|
|
| 232,162 |
|
| Total non-current liabilities |
|
| 108,989 |
|
|
| 641,774 |
|
| Total liabilities |
|
| 3,450,110 |
|
|
| 3,100,309 |
|
| Commitments and Contingencies |
|
|
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| Stockholders’ equity |
|
|
|
|
|
| ||
| Class A common stock, par value $0.0001 per share, 9,549,621 and 9,387,836 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
| 955 |
|
|
| 939 |
|
| Class C common stock, par value $0.0001 per share, 22,500,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
| 2,250 |
|
|
| 2,250 |
|
| Additional paid in capital |
|
| 36,050,663 |
|
|
| 35,014,836 |
|
| Accumulated deficit |
|
| (25,598,808 | ) |
|
| (23,922,730 | ) |
| Noncontrolling interest |
|
| 13,930,407 |
|
|
| 17,730,035 |
|
| Total stockholders’ equity |
|
| 24,385,467 |
|
|
| 28,825,330 |
|
| Total liabilities and stockholders’ equity |
| $ | 27,835,577 |
|
| $ | 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.