Latest news with #VerdeCleanFuels
Business Wire
5 days ago
- Business
- Business Wire
Verde Clean Fuels, Inc. Reports Q2 2025 Results
HOUSTON--(BUSINESS WIRE)--Verde Clean Fuels, Inc. ('Verde' or 'the Company') (NASDAQ: VGAS) today reported results for the second quarter and first half of 2025. 'We continue to advance our plans to deploy our proprietary liquid fuels processing technology through the development of commercial production plants. To this end, we also continue to advance front-end engineering and design ("FEED") for the Permian Basin project, a proposed natural gas-to-gasoline plant to be jointly developed with Cottonmouth, a wholly owned subsidiary of Diamondback. The proposed plant would utilize our technology and associated natural gas from Diamondback's operations. We also continue to identify and evaluate other potential opportunities to deploy our technology while remaining disciplined with our resources,' said Ernest Miller, CEO of Verde. For the three months ended June 30, 2025, the Company recorded a net loss of $(2.5) million and diluted net loss per share of Class A common stock of $(0.07). For the six months ended June 30, 2025, the Company recorded a net loss of $(5.2) million and diluted loss per share of Class A common stock of $(0.15). The Company's net loss for the three and six months ended June 30, 2025 was primarily due to ongoing general and administrative expenses. As of June 30, 2025, the Company had cash and cash equivalents of $62.1 million and no debt. Also as of June 30, 2025, the Company had capitalized $2.2 million of FEED costs related to the proposed Permian Basin project, net of amounts reimbursable under the joint development agreement between Verde and Cottonmouth. About Verde Clean Fuels, Inc. Verde is a clean fuels company focused on the deployment of its innovative and proprietary liquid fuels processing technology through development of commercial production plants. Verde's synthesis gas ("syngas")-to-gasoline plus (STG+ ®) process converts syngas, derived from diverse feedstocks, into fully finished liquid fuels that require no additional refining. Verde is currently focused on opportunities to convert associated natural gas into gasoline, which is expected to provide a market for such natural gas with the added potential benefits of flare mitigation and production of gasoline with a lower carbon intensity than conventional gasoline. Forward-Looking Statements This press release contains '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 in this press release, regarding the Company's expectations and any future financial performance, the Company's strategy, future operations, financial position, prospects, plans, goals and objectives of management are forward-looking statements. The words 'could,' 'should,' 'would,' 'will,' 'aim,' 'may,' 'focus,' 'believe,' 'anticipate,' 'intend,' 'estimate,' 'expect,' 'advance,' 'project,' 'plan,' 'potential,' "goal,' 'strategy,' 'proposed,' 'positions,' 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. Such forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the Company, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. These forward-looking statements are based on 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, the Company 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. The Company 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 Company's control. These risks and uncertainties include, but are not limited to: changes in general economic, financial, legal, political and business conditions; changes in domestic and foreign markets; the failure of Verde to develop its first commercial facility, whether due to the inability to obtain the required financing or for any other reason; the failure of Verde to develop any additional commercial facility for any reason; the risks and uncertainties relating to the implementation of Verde's business strategy and the timing of any business milestone; and delays in acquisition, financing, construction and development of any potential projects. 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 the Company presently does not know or that the Company currently believes 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 the Company's expectations and projections can be found in the Company's filings with the Securities and Exchange Commission (the 'SEC'). The Company's filings with the SEC are available publicly on the SEC's website at VERDE CLEAN FUELS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) As of June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 62,054,765 $ 19,044,067 Restricted cash 100,000 100,000 Accounts receivable – other 1,009,197 226,157 Prepaid expenses and other current assets 809,318 804,186 Total current assets 63,973,280 20,174,410 Non-current assets: Property, plant and equipment, net 2,315,784 1,096,270 Intellectual property and patented technology 1,925,151 1,925,151 Operating lease right-of-use assets, net 351,754 215,806 Deposits 160,669 160,669 Total non-current assets 4,753,358 3,397,896 Total assets $ 68,726,638 $ 23,572,306 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,814,373 $ 734,374 Accrued liabilities 751,223 1,907,165 Operating lease liabilities 328,198 153,917 Other current liabilities 39,252 15,129 Total current liabilities 2,933,046 2,810,585 Non-current liabilities: Operating lease liabilities 45,742 78,245 Total non-current liabilities 45,742 78,245 Total liabilities 2,978,788 2,888,830 Commitments and Contingencies Stockholders' equity Class A common stock, par value $0.0001 per share, 22,049,621 and 9,549,621 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2,205 955 Class C common stock, par value $0.0001 per share, 22,500,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2,250 2,250 Additional paid in capital 62,797,055 37,502,903 Accumulated deficit (29,763,927 ) (27,257,086 ) Noncontrolling interest 32,710,267 10,434,454 Total stockholders' equity 65,747,850 20,683,476 Total liabilities and stockholders' equity $ 68,726,638 $ 23,572,306 Expand
Yahoo
16-05-2025
- Business
- Yahoo
Here's Why We're Not Too Worried About Verde Clean Fuels' (NASDAQ:VGAS) Cash Burn Situation
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse. So should Verde Clean Fuels (NASDAQ:VGAS) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'. We've discovered 2 warning signs about Verde Clean Fuels. View them for free. A company's cash runway is calculated by dividing its cash hoard by its cash burn. In March 2025, Verde Clean Fuels had US$65m in cash, and was debt-free. Looking at the last year, the company burnt through US$13m. That means it had a cash runway of about 5.1 years as of March 2025. While this is only one measure of its cash burn situation, it certainly gives us the impression that holders have nothing to worry about. You can see how its cash balance has changed over time in the image below. View our latest analysis for Verde Clean Fuels Because Verde Clean Fuels isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. Over the last year its cash burn actually increased by 39%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Verde Clean Fuels makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow. Given its cash burn trajectory, Verde Clean Fuels shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Verde Clean Fuels' cash burn of US$13m is about 8.4% of its US$151m market capitalisation. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. It may already be apparent to you that we're relatively comfortable with the way Verde Clean Fuels is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. Although its increasing cash burn does give us reason for pause, the other metrics we discussed in this article form a positive picture overall. Looking at all the measures in this article, together, we're not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. Taking an in-depth view of risks, we've identified 2 warning signs for Verde Clean Fuels that you should be aware of before investing. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
