2022 Q2 Form 10-Q Financial Statement

#000121390022051172 Filed on August 26, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 Q1 2021 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $442.7K $279.9K
YoY Change
% of Gross Profit
Research & Development $72.56K $97.24K
YoY Change
% of Gross Profit
Depreciation & Amortization $2.640K $2.714K
YoY Change
% of Gross Profit
Operating Expenses $442.7K $279.9K $383.1K
YoY Change 13354.71% 13421.26%
Operating Profit -$442.7K -$1.425M
YoY Change 13375.25%
Interest Expense $204.0K $16.56K -$18.82K
YoY Change
% of Operating Profit
Other Income/Expense, Net $204.0K
YoY Change
Pretax Income -$238.6K -$263.3K -$401.9K
YoY Change 7164.6% 12620.77%
Income Tax $5.088K $0.00
% Of Pretax Income
Net Earnings -$243.7K -$935.4K -$401.9K
YoY Change 7319.48% 45154.28%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$11.20K -$12.11K -$18.48K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q2 2022 Q1 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $174.5M $155.9K $505.5K
YoY Change 482448.0% 270.47%
Cash & Equivalents $86.28K $558.7K $505.5K
Short-Term Investments $174.5M
Other Short-Term Assets $75.96K $170.0K $223.1K
YoY Change 183.43% 534.33%
Inventory
Prepaid Expenses $75.96K $223.1K
Receivables
Other Receivables
Total Short-Term Assets $162.2K $325.9K $728.7K
YoY Change 157.65% 373.12%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $174.5M $174.2M $174.2M
YoY Change
Other Assets $25.00K $0.00
YoY Change -91.51%
Total Long-Term Assets $174.5M $174.2M $174.2M
YoY Change 59128.84% 64827.61%
TOTAL ASSETS
Total Short-Term Assets $162.2K $325.9K $728.7K
Total Long-Term Assets $174.5M $174.2M $174.2M
Total Assets $174.6M $174.6M $175.0M
YoY Change 48743.12% 51661.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $969.8K $790.8K
YoY Change 2424375.0%
Accrued Expenses $1.060K $241.6K
YoY Change -98.66%
Deferred Revenue
YoY Change
Short-Term Debt $125.0K $0.00 $0.00
YoY Change -52.53% -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.101M $118.7K $241.6K
YoY Change 221.34% -62.79%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $6.038M $6.038M $6.038M
YoY Change
Total Long-Term Liabilities $6.038M $6.038M $6.038M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $1.101M $118.7K $241.6K
Total Long-Term Liabilities $6.038M $6.038M $6.038M
Total Liabilities $7.138M $6.156M $6.279M
YoY Change 1983.55% 1829.61%
SHAREHOLDERS EQUITY
Retained Earnings -$6.725M -$5.546M
YoY Change
Common Stock $19.00 $19.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$6.725M -$6.481M -$5.546M
YoY Change
Total Liabilities & Shareholders Equity $174.6M $174.6M $175.0M
YoY Change 48743.12% 51661.9%

Cashflow Statement

Concept 2022 Q2 2022 Q1 2021 Q4
OPERATING ACTIVITIES
Net Income -$243.7K -$935.4K -$401.9K
YoY Change 7319.48% 45154.28%
Depreciation, Depletion And Amortization $2.640K $2.714K
YoY Change
Cash From Operating Activities -$194.6K -$349.6K -$84.09K
YoY Change 5907.41% 1110.91%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 125.0K 50.00K
YoY Change -4781.65%
NET CHANGE
Cash From Operating Activities -194.6K -349.6K -84.09K
Cash From Investing Activities 0.000 0.000
Cash From Financing Activities 125.0K 50.00K
Net Change In Cash -69.64K $0.00 -34.09K
YoY Change 1078.34% -100.0%
FREE CASH FLOW
Cash From Operating Activities -$194.6K -$349.6K -$84.09K
Capital Expenditures $0.00
Free Cash Flow -$194.6K
YoY Change

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Document Type
DocumentType
10-Q
dei Document Quarterly Report
DocumentQuarterlyReport
true
dei Document Period End Date
DocumentPeriodEndDate
2022-06-30
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2022
dei Document Transition Report
DocumentTransitionReport
false
dei Entity File Number
EntityFileNumber
001-40743
dei Entity Registrant Name
EntityRegistrantName
CENAQ Energy Corp.
dei Entity Incorporation State Country Code
EntityIncorporationStateCountryCode
DE
dei Entity Tax Identification Number
EntityTaxIdentificationNumber
85-1863331
dei Entity Address Address Line1
EntityAddressAddressLine1
4550 Post Oak Place Dr.,
dei Entity Address Address Line2
EntityAddressAddressLine2
Suite 300
dei Entity Address City Or Town
EntityAddressCityOrTown
Houston
dei Entity Address State Or Province
EntityAddressStateOrProvince
TX
dei Entity Address Postal Zip Code
EntityAddressPostalZipCode
77027
dei City Area Code
CityAreaCode
(713)
dei Local Phone Number
LocalPhoneNumber
820-6300
dei Security12b Title
Security12bTitle
Class A common stock, par value $0.0001 per share
dei Trading Symbol
TradingSymbol
CENQ
dei Security Exchange Name
SecurityExchangeName
NASDAQ
dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
dei Entity Interactive Data Current
EntityInteractiveDataCurrent
Yes
dei Entity Filer Category
EntityFilerCategory
Non-accelerated Filer
dei Entity Small Business
EntitySmallBusiness
true
dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
true
dei Entity Ex Transition Period
EntityExTransitionPeriod
false
dei Entity Shell Company
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true
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cenqu Founder Shares Description
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The Company estimated the aggregate fair value of these founder shares attributable to anchor investors to be $6,270,000, or $7.60 per share.
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us-gaap Concentration Risk Credit Risk
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Concentration of Credit Risk</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16.2pt">Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. At June 30, 2022, the Company has not experienced losses on this account.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.55pt"> </p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Use of Estimates</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.55pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.55pt">The preparation of unaudited condensed financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of revenues and expenses during the reporting period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.55pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.55pt">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. The most significant estimates that affected the financial statements as of June 30, 2022 and December 31, 2021 are the calculations of the fair values of the over-allotment option, fair values of the representative shares and the fair values of the anchor shares. Such estimates may be subject to change as more current information becomes available. Accordingly, the actual results could differ significantly from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
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cenqu Proposed Public Offering Description
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Additionally, upon consummation of the IPO, the Sponsor sold 75,000 Founder Shares to each of the 11 Anchor Investors that purchased at least 9.9% of the units sold in the IPO, at their original purchase price of approximately $0.0058 per share. The aggregate fair value of these founder shares attributable to anchor investors is $6,270,000, or $7.60 per share. The Company allocated $6,265,215, the excess of the fair value over the gross proceeds from these Anchor Investors, among Class A common stock, Public Warrants and Private Placement Warrants. 
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cenqu Business Combination Description
BusinessCombinationDescription
However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period, which occurs (i) in the case of the Founder Shares, on the earlier of (A) six months after the completion of the initial Business Combination or (B) subsequent to the initial Business Combination, (x) if the last sale price of our Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 75 days after the initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property and (ii) in the case of the Private Placement Warrants and the respective Class A common stock underlying such warrants, 30 days after the completion of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
CY2022Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2022Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2021Q3 cenqu Founder Share
FounderShare
562500 shares
cenqu Percentage Of Conversion Shares
PercentageOfConversionShares
0.20 pure
CY2022Q2 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
19612500 shares
cenqu Public Warrants
PublicWarrants
12937500 shares
cenqu Private Placement Warrants
PrivatePlacementWarrants
6675000 shares
us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
usd
us-gaap Class Of Warrant Or Right Reason For Issuing To Nonemployees
ClassOfWarrantOrRightReasonForIssuingToNonemployees
We may call the warrants for redemption, in whole and not in part, at a price of $0.01 per warrant:  ●at any time after the warrants become exercisable;   ●upon not less than 30 days’ prior written notice of redemption to each warrant holder;   ●if, and only if, the reported last sale price of the shares of Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period commencing at any time after the warrants become exercisable and ending on the third business day prior to the notice of redemption to warrant holders; and   ●if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants.  
cenqu Earn Out Period Shares
EarnOutPeriodShares
3500000 shares
CY2022Q2 us-gaap Common Stock No Par Value
CommonStockNoParValue
0.0001
us-gaap Sponsor Fees
SponsorFees
2475000 usd
cenqu Underwriters Letter Description
UnderwritersLetterDescription
In connection with the execution of the Business Combination Agreement, on August 12, 2022, the Company, Intermediate and Holdings entered into a letter agreement with the underwriters, pursuant to which, among other things, (i) Imperial Capital, LLC agreed to forfeit all of its 1,423,125 Private Placement Warrants and all of its 156,543 Representative Shares, (ii) I-Bankers Securities, Inc. agreed to forfeit all of its 301,875 Private Placement Warrants and all of its 33,207 Representative Shares and (iii) the underwriters agreed to reduce their deferred underwriting fees related to the IPO from $6,037,500 to $4,312,500. 
cenqu Subscription Agreements Description
SubscriptionAgreementsDescription
In connection with the execution of the Business Combination Agreement, on August 12, 2022, the Company entered into separate subscription agreements with certain investors (the “PIPE Investors”), pursuant to which the PIPE Investors agreed to purchase, and the Company agreed to sell to the PIPE Investors, an aggregate of 8,000,000 shares of Class A common stock for a purchase price of $10.00 per share and an aggregate purchase price of $80,000,000 in a private placement (the “PIPE Financing”). Of the $80,000,000 of commitments, Holdings has agreed to purchase 800,000 shares to be sold in the PIPE Financing for an aggregate commitment of $8,000,000. Arb Clean Fuels Management LLC (“Arb Clean Fuels”), an entity affiliated with a member of the Sponsor, has agreed to purchase 7,000,000 shares to be sold in the PIPE Financing for an aggregate commitment of $70,000,000; provided, that, to the extent funds in the Trust Account immediately prior to the consummation of the business combination, after giving effect to the Company stockholders’ redemption rights, exceed $17,420,000, each $10.00 increment of such excess funds shall reduce Arb Clean Fuels’ commitment by $10.00 up to a maximum reduction of $20,000,000. Additionally, an entity unaffiliated with the Sponsor has agreed to purchase 200,000 shares for an aggregate commitment of $2,000,000. 
cenqu Exceed Aggregate
ExceedAggregate
50000000 usd
CY2021Q2 us-gaap Interest Income Securities Other Us Government
InterestIncomeSecuritiesOtherUSGovernment
usd
us-gaap Interest Income Securities Other Us Government
InterestIncomeSecuritiesOtherUSGovernment
usd
CY2021Q2 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
usd
us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
usd
CY2021Q2 us-gaap Marketable Securities Unrealized Gain Loss
MarketableSecuritiesUnrealizedGainLoss
usd
us-gaap Marketable Securities Unrealized Gain Loss
MarketableSecuritiesUnrealizedGainLoss
usd
CY2021Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
usd
cenqu Interest Earned On Cash And Marketable Securities Held In Trust Account
InterestEarnedOnCashAndMarketableSecuritiesHeldInTrustAccount
usd
us-gaap Gain Loss On Investments
GainLossOnInvestments
usd
us-gaap Increase Decrease In Due To Related Parties Current
IncreaseDecreaseInDueToRelatedPartiesCurrent
usd
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
usd
us-gaap Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction
DebtIssuanceCostsIncurredDuringNoncashOrPartialNoncashTransaction
usd
cenqu Accrued Deferred Offering Cost
AccruedDeferredOfferingCost
usd
cenqu Deferred Offering Costs Paid By Sponsor In Promissory Notes
DeferredOfferingCostsPaidBySponsorInPromissoryNotes
usd
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Central Index Key
EntityCentralIndexKey
0001841425
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
usd

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