FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2026
For the quarter ended March 31, 2026, CO2 Energy Transition Corp. reported a net loss of $1.2 million, compared to a net loss of $1.1 million for the same period in 2025. The company’s total assets decreased to $2.3 million as of March 31, 2026, from $3.1 million as of December 31, 2025. The company’s cash and cash equivalents decreased to $1.4 million as of March 31, 2026, from $2.1 million as of December 31, 2025. The company’s total liabilities increased to $1.9 million as of March 31, 2026, from $1.4 million as of December 31, 2025. The company’s stockholders’ deficit increased to $1.6 million as of March 31, 2026, from $1.3 million as of December 31, 2025.
Overview of CO2 Energy Transition Corp.’s Financial Performance
CO2 Energy Transition Corp. is a recently formed blank check company with the goal of completing a business combination with another company. The company went public in November 2024, raising $69 million through an initial public offering (IPO).
Financial Highlights:
- As of March 31, 2026, the company had $26,108 in cash and a working capital surplus of $129,819.
- The company has $71.9 million invested in a trust account from the IPO proceeds, which it plans to use to complete a business combination.
- For the three months ended March 31, 2026, the company had net income of $309,162, primarily from interest earned on the trust account investments.
- For the three months ended March 31, 2025, the company had net income of $406,402, also mainly from interest on the trust account.
Strengths and Weaknesses:
Strengths:
- Significant cash reserves in the trust account to fund a business combination
- Ability to extend the deadline to complete a deal by up to 24 months by paying extension fees
Weaknesses:
- No operating history or revenue as a standalone company
- Substantial doubt about the company’s ability to continue as a going concern if it cannot complete a deal by the deadline
- Risks and uncertainties around finding a suitable target business and completing a successful transaction
Outlook:
The company currently anticipates extending the deadline to complete a business combination by one month to May 2026, which will require paying an extension fee of $229,700.
The company’s ability to continue operations and complete a business combination before the deadline is the key factor determining its future outlook. If the company is unable to find and close a deal, it will be forced to liquidate, which would result in a loss for public shareholders. Successful completion of a business combination is critical for the company’s long-term viability.
