UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ___________ TO __________

COMMISSION FILE NUMBER: 001-41164

AleAnna, Inc.

(Exact name of registrant as specified in its charter)

Delaware		1311		98-1582153
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		(I.R.S. Employer Identification Number)

300 Crescent Court, Suite 1860, Dallas, Texas

(Address of principal executive offices)

(469) 398-2200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	ANNA	The Nasdaq Capital Market
Warrants, each whole warrant exercisable for one share of Class A common stock	ANNAW	The Nasdaq Capital Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 11, 2025, 40,659,881 shares of Class A common stock, par value $0.0001 per share, and 25,994,400 shares of Class C common stock, par value $0.0001 per share, of the registrant were outstanding.

Table of Contents

PART I FINANCIAL INFORMATION

Item 1. Financial Statements and Supplementary Data		1

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24

Item 3. Controls and Procedures		35

PART II OTHER INFORMATION

Item 1. Legal Proceedings		36

Item 1A. Risk Factors		36

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		37

Item 4. Mine Safety Disclosures		37

Item 5. Other Information		37

Signatures		39

Item 1. Financial Statements and Supplementary Data

Condensed Consolidated Balance Sheets		2

Condensed Consolidated Statements of Operations and Comprehensive Loss		3

Condensed Consolidated Statements of Changes in Stockholders’ and Members’ Equity		4

Condensed Consolidated Statements of Cash Flows		6

Notes to the Condensed Consolidated Financial Statements		7

ALEANNA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024

	September 30, 2025			December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	31,198,846		$	28,330,159
Restricted cash		1,172,540			-
Accounts receivable		2,244,447			1,225,297
Prepaid expenses and other assets		1,901,025			1,666,155
Total Current Assets		36,516,858			31,221,611

Non-current assets:
Natural gas and other properties, successful efforts method, net of accumulated depreciation and depletion of $549,572 and $0 respectively		42,352,060			33,979,014
Renewable natural gas properties, net of accumulated depreciation of $416,395 and $132,094, respectively		10,828,124			9,296,039
Value-added tax refund receivable		8,530,282			6,845,030
Operating lease right-of-use assets		1,832,346			1,744,897
Total Non-current Assets		63,542,812			51,864,980
Total Assets	$	100,059,670		$	83,086,591

LIABILITIES AND STOCKOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	7,281,859		$	2,204,208
Income tax payable					-
Lease liability, short-term		195,973			163,865
Contingent consideration liability, short-term		10,771,277			-
Total Current Liabilities		18,249,109			2,368,073

Non-current Liabilities:
Asset retirement obligation		4,475,851			4,375,919
Lease liability, long-term		1,634,579			1,579,443
Contingent consideration liability, long-term		17,366,165			24,994,315
Total Non-current Liabilities		23,476,595			30,949,677
Total Liabilities		41,725,704			33,317,750

Commitments and Contingencies (Note 6)
Stockholders’ Equity:
Class A Common Stock, par value $0.0001 per share, 150,000,000 shares authorized, 40,659,881 and 40,560,433 shares issued and outstanding as of September 30, 2025 and December 31, 2024		4,066			4,056
Class C Common Stock, par value $0.0001 per share, 70,000,000 shares authorized, 25,994,400 shares issued and outstanding as of September 30, 2025 and December 31, 2024		2,599			2,599
Additional paid-in capital		227,866,066			226,722,424
Accumulated other comprehensive loss		(3,324,618	)		(5,803,378	)
Accumulated deficit		(189,391,251	)		(191,047,953	)
Noncontrolling interest		23,177,104			19,891,093
Total Stockholders’ Equity		58,333,966			49,768,841
Total Liabilities and Stockholders’ Equity	$	100,059,670		$	83,086,591

The accompanying notes are an integral part of these financial statements.

ALEANNA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024

Revenues	$	11,224,868		$	648,328		$	15,899,878		$	648,328

Operating expenses:
Cost of revenues	$	2,155,189		$	538,607		$	3,295,105		$	538,607
Lease operating expense		654,092			-			1,748,500			-
General and administrative		2,071,051			1,497,357			7,185,948			4,473,833
Depreciation and depletion		582,604			51,311			885,140			51,311
Accretion of asset retirement obligation		33,318			33,310			98,519			99,930
Total operating expenses		5,496,254			2,120,585			13,213,212			5,163,681

Operating income (loss)		5,728,614			(1,472,257	)		2,686,666			(4,515,353	)

Other income:
Interest and other income		146,655			396,200			538,291			1,325,660
Change in fair value of derivative liability		-			-			-			173,177
Total other income		146,655			396,200			538,291			1,498,837

Income (loss) before income taxes		5,875,269			(1,076,057	)		3,224,957			(3,016,516	)
Income tax expense		(556,592	)		-			(600,987	)		-
Net income (loss)		5,318,677			(1,076,057	)		2,623,970			(3,016,516	)
Deemed dividend to Class 1 Preferred Units redemption value					-			-			(155,423,177	)
Net loss (income) attributable to noncontrolling interests		(2,004,779	)		-			(967,268	)		-
Net income (loss) attributable to Class A Common stockholders or holders of Common Member Units	$	3,313,898		$	(1,076,057	)	$	1,656,702		$	(158,439,693	)

Other comprehensive income (loss)
Currency translation adjustment		716,316			2,163,984			4,797,503			1,311,160
Comprehensive income (loss)		6,034,993			1,087,927			7,421,473			(1,705,356	)
Comprehensive loss (income) attributable to noncontrolling interests		(2,729,530	)		-			(3,286,011	)		-
Total comprehensive income (loss) attributable to Class A Common stockholders or holders of Common Member Units	$	3,305,463		$	1,087,927		$	4,135,462		$	(1,705,356	)

Weighted average shares of Class A Common Stock outstanding, basic and diluted		40,615,773						40,631,315
Net income per share of Class A Common Stock, basic and diluted	$	0.08					$	0.04

The accompanying notes are an integral part of these financial statements.

ALEANNA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ AND MEMBERS’ EQUITY (unaudited)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

	Stockholders’ Equity
	Class A				Class C				Additional					Accumulated other					Total
	Common Stock		Amount		Common Stock		Amount		paid-in capital		Accumulated deficit			comprehensive income (loss)			Noncontrolling interest		Stockholders’ Equity
Balance, June 30, 2025		40,659,881		4,066		25,994,400		2,599		227,866,066		(192,705,149	)		(3,316,185	)		20,447,574		52,298,971
Exercises of warrants				-						-										-
Foreign currency translation															(8,433	)		724,751		716,318
Net income (loss)												3,313,898						2,004,779		5,318,677
Balance, September 30, 2025		40,659,881		4,066		25,994,400		2,599		227,866,066		(189,391,251	)		(3,324,618	)		23,177,104		58,333,966

	Stockholders’ Equity
	Class A				Class C				Additional					Accumulated other					Total
	Common Stock		Amount		Common Stock		Amount		paid-in capital		Accumulated deficit			comprehensive income (loss)			Noncontrolling interest		Stockholders’ Equity
Balance, December 31, 2024		40,560,433		4,056		25,994,400		2,599		226,722,424		(191,047,953	)		(5,803,378	)		19,891,093		49,768,841
Exercises of warrants		99,448		10		-		-		1,143,642		-			-			-		1,143,652
Foreign currency translation		-		-		-		-		-		-			2,478,760			2,318,743		4,797,503
Net income (loss)		-		-		-		-		-		1,656,702			-			967,268		2,623,970
Balance, September 30, 2025		40,659,881		4,066		25,994,400		2,599		227,866,066		(189,391,251	)		(3,324,618	)		23,177,104		58,333,966

ALEANNA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ AND MEMBERS’ EQUITY (unaudited)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

	Temporary Equity				Members’ Equity
	Class 1				Common				Additional					Accumulated other			Total
	Preferred Units		Amount		Member Units		Amount		paid-in capital		Accumulated deficit			comprehensive income (loss)			Members’ Equity
Balance, June 30, 2024		105,711	$	369,987,776		266,503	$	-	$	-	$	(303,753,003	)	$	(5,712,757	)	$	(309,465,760	)
Shares issued						-		-		-		-			-			-
Deemed dividend to redemption value		-				-		-		-					-
Capital contributions due from members		-		-		-		-		-		-			-			-
Foreign currency translation		-		-		-		-		-		-			2,163,984			2,163,984
Net income (loss)		-		-		-		-		-		(1,076,057	)		-			(1,076,057	)
Balance September 30, 2024		105,711	$	369,987,776		266,503	$	-	$	-	$	(304,829,060	)	$	(3,548,773	)	$	(308,377,833	)

	Temporary Equity				Members’ Equity
	Class 1				Common				Additional					Accumulated other			Total
	Preferred Units		Amount		Member Units		Amount		paid-in capital		Accumulated deficit			comprehensive income (loss)			Members’ Equity
Balance, December 31, 2023		43,611	$	152,464,599		266,503	$	-	$	-	$	(146,389,367	)	$	(4,859,933	)	$	(151,249,300	)
Shares issued		62,100		62,100,000		-		-		-		-			-			-
Deemed dividend to redemption value		-		155,423,177		-		-		-		(155,423,177	)		-			(155,423,177	)
Capital contributions due from members		-		-		-		-		-		-			-			-
Foreign currency translation		-		-		-		-		-		-			1,311,160			1,311,160
Net income (loss)		-		-		-		-		-		(3,016,516	)		-			(3,016,516	)
Balance September 30, 2024		105,711	$	369,987,776		266,503	$	-	$	-	$	(304,829,060	)	$	(3,548,773	)	$	(308,377,833	)

The accompanying notes are an integral part of these financial statements.

ALEANNA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

	For the Nine Months Ended September 30,
	2025			2024

Cash flows from operating activities
Net income (loss)	$	2,623,970		$	(3,016,516	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation, depletion, and amortization		885,140			51,311
Accretion of asset retirement obligation		98,519			99,930
Change in fair value of derivative liability		-			(173,177	)
Changes in working capital items:
Accounts receivable		(825,050	)		-
Operating lease expense					39,615
Prepaid expenses and other assets		(24,173	)		(2,714,546	)
Value-added tax refund receivable		(786,328	)		(1,433,286	)
Accounts payable and accrued expenses		4,578,415			718,793
Related party payables		-			(525,276	)
Change in operating lease liability		(139,176	)		33,014
Net cash provided by (used in) operating activities		6,411,317			(6,920,138	)

Cash flows from investing activities
Additions to renewable natural gas properties		(346,280	)		(9,168,328	)
Additions to conventional natural gas properties		(3,910,409	)		(9,381,638	)
Net cash used in investing activities		(4,256,689	)		(18,549,966	)

Cash flows from financing activities
Proceeds from exercises of warrants		1,143,652			-
AleAnna Energy Class 1 Preferred Units issued for cash		-			62,100,000
Net cash provided by financing activities		1,143,652			62,100,000

Effect of foreign currency translation on cash		742,947			(18,986	)
Change in cash, cash equivalents and restricted cash during the period		4,041,227			36,610,910
Cash, cash equivalents and restricted cash, beginning of period		28,330,159			6,759,265
Cash, cash equivalents and restricted cash, end of period	$	32,371,386		$	43,370,175

Noncash investing and financing activities:
Deemed dividend to Class 1 Preferred Units redemption value	$	-		$	155,423,177

The accompanying notes are an integral part of these financial statements.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

NOTE 1 – NATURE OF OPERATIONS AND RECENT EVENTS

AleAnna, Inc. (together with its subsidiaries, the “Company” or “AleAnna”), a Delaware corporation, was formed on December 13, 2024, in connection with the Business Combination (defined below). AleAnna Energy, LLC (“AleAnna Energy”), a Delaware Limited Liability Company, was formed on July 13, 2007. AleAnna Energy is comprised of wholly owned subsidiaries AleAnna Resources, LLC, AleAnna Italia S.p.A. (“AleAnna Italia”) and AleAnna Renewable Energy S.r.L. (“AleAnna Renewable”). AleAnna Renewable is comprised of various subsidiaries that hold its renewable natural gas assets (the “RNG Subsidiaries”).

Conventional Natural Gas

AleAnna is a natural gas resource developer focused on delivering critical natural gas supplies to Europe through both onshore conventional natural gas exploration and renewable natural gas development in Italy. The Company has several conventional natural gas discoveries including the Longanesi field, located in the Po Valley in Northern Italy, which is one of Italy’s largest modern gas discoveries. AleAnna retains a 33.5% working interest in the Longanesi field with its working interest partner, and operator, Societa Padana Energia (“Padana”). AleAnna acquired its working interest in the Longanesi field through a 2016 transaction with Enel. The Company also retains wholly owned concessions, permits, and pending applications on other exploration and development prospects across Italy which are supported by proprietary modern 3D seismic reservoir imaging.

On October 29, 2024, the Company entered into a gas sale agreement (“GSA”) with Shell Energy Europe Limited (“SEEL”), whereby SEEL became the exclusive buyer of AleAnna’s share of the natural gas produced from the Longanesi field net of (i) any consumption and/or losses incurred in the transport, treatment and compression of gas before delivery; (ii) any volume to be allocated for regulated royalties auctions, if applicable; and (iii) any other volume contractually allocated to other parties before August 31, 2022. Future sales under the GSA are contingent upon the commencement of gas production.

On March 13, 2025, AleAnna achieved a key milestone with the first production from its working interests in five wells in the Longanesi field, and the field reached sustained maximum production during the second quarter of 2025. The Company began recognizing revenue and related expenses, including depreciation and depletion, associated with Longanesi production in the second quarter of 2025.

Renewable Natural Gas (“RNG”)

In 2021, AleAnna launched a renewable natural gas (“RNG”) development business focused on bringing to market carbon negative renewable natural gas derived from animal and agricultural waste.

Between March 2024 and July 2024, the Company successfully completed three separate strategic acquisitions of renewable natural gas (“RNG”) assets in Italy for an aggregate of approximately $9.7 million. The plant assets are fully permitted and are in various stages of the development lifecycle, with one greenfield plant asset that is a new development (Campagnatico) and two brownfield plant assets (Casalino and Campopiano) that are currently generating bio-electricity. The Company plans to develop and upgrade these assets for RNG production in the future.

Campagnatico Asset Acquisition

In the first quarter of 2024, the Company closed the acquisition of the Campagnatico Greenfield (“Campagnatico”) natural gas asset in Tuscany, Italy for approximately $2.1 million. The greenfield site is fully permitted for future construction of a biomethane plant asset.

Casalino and Campopiano Asset Acquisitions

On July 8, 2024, the Company closed the acquisition of the Societa Agricola Fattoria delle Jersey S.S. plant asset (“Casalino”) for approximately $3.6 million. On July 29, 2024, the Company closed the acquisition of a 90% interest in the Società Agricola Campopiano Società in nome collettivo di Vasellini Amedeo (“Compapiano”) plant asset for approximately $3.8 million. The plant assets are fully permitted and operational for production of electricity through conversion of crop and animal waste bio feedstocks. The plant assets currently create raw biogas, which is burned to create electricity for sale to the state-owned electrical utility (Gestore dei Servizi Energetici SpA or “GSE”). Revenues are based on actual output and a non-company specific predetermined price for small renewable energy producers of €280/MWh, established under Ministerial Decree (D.M.) 18 December 2008, which sets tariff rates for small renewable energy producers in Italy. Energy generation revenue is recognized as the electricity generated by the Casalino and Campopiano assets is delivered to GSE.

The Company plans to begin upgrading the sites to refine biogas into biomethane through upgrading units. Following the upgrade process to transition the assets to biomethane to renewable natural gas conversion, the Company expects to sell renewable natural gas to customer(s) by trucking or via connection to the interstate pipeline system (SNAM).

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

The Company has a 90% direct controlling interest in the Campopiano asset, while unaffiliated owners retain a 10% economic interest in the asset. The unaffiliated outside ownership in Campopiano is shown as noncontrolling interests (“NCI”) in stockholders’ equity in the Company’s consolidated financial statements.

AleAnna Energy Member Contributions

During 2024, AleAnna Energy received $62.1 million in capital contributions from its members, resulting in the issuance of 62,100 Class 1 Preferred Units, which have since been converted to Class A common stock and Class C common stock as a result of the Business Combination (see Note 2 below). These funds were used to fund the Longanesi tie-in and will continue to be used to fund permanent gas plant construction obligations, to develop and upgrade existing RNG assets, to acquire new RNG assets (at the discretion of management), as well as to fund general and administrative expenses of AleAnna and its subsidiaries.

NOTE 2 – REVERSE RECAPITALIZATION TRANSACTION

On December 13, 2024 (the “Closing Date”), the previously announced business combination was consummated pursuant to that certain Agreement and Plan of Merger (as amended by that certain First Amendment to the Merger Agreement, dated as of October 8, 2024, the “Merger Agreement”), dated June 4, 2024, by and among Swiftmerge Acquisition Corp., a Cayman Islands exempted company (“Swiftmerge”), Swiftmerge HoldCo LLC, a Delaware limited liability company and wholly-owned subsidiary of Swiftmerge (“HoldCo”), Swiftmerge Merger Sub LLC, a Delaware limited liability company and wholly-owned subsidiary of HoldCo (“Merger Sub”) and AleAnna Energy (the “Merger”). The transactions contemplated by the Merger Agreement are collectively referred to herein as the “Business Combination.”

The Business Combination included, among other things:

●

(i) SPAC undergoing the Domestication and changing its name to “AleAnna, Inc.”; (ii) each Swiftmerge Class A Ordinary Share converting into one share of Class A Common Stock; (iii) each Swiftmerge Class B Ordinary Share converting into one share of Class B Common Stock in the Domestication and then each share of Class B Common Stock converting into one share of Class A Common Stock at the completion of the Business Combination; (iv) each warrant to purchase Swiftmerge Class A Ordinary Shares becoming exercisable by its terms to purchase an equal number of shares of Class A Common Stock; and (v) a series Class C Common Stock being authorized, each share of which will have voting rights equal to a share of Class A Common Stock but which shall have no entitlement to earnings or distributions of the Company;

●

following the Domestication but prior to the Merger, (i) the Company contributed to HoldCo (a) all of its assets (excluding its interests in HoldCo), including, for the avoidance of doubt, the Available Cash (as defined herein), and (b) a number of shares of Class C Common Stock equal to the number of Class C HoldCo Units designated to be issued to the AleAnna Members, and (ii) HoldCo issued to the Company a number of Class A HoldCo Units which equaled the number of shares of Class A Common Stock issued and outstanding immediately after the Closing; and

●

following the Pre-Closing Contribution, Merger Sub merged with and into AleAnna Energy, with AleAnna Energy being the surviving company and a wholly-owned subsidiary of HoldCo. Each AleAnna Energy Member received its pro rata portion of 65,098,476 shares of (a) Class A Common Stock or (b) Class C Common Stock (with one Class C HoldCo Unit to accompany each share of Class C Common Stock) in the Merger, as determined by the AleAnna Energy Board. At the Closing:

●

AleAnna, Inc. received 40,560,433 Class A HoldCo Units, corresponding to the 40,560,433 shares of Class A Common Stock outstanding as of December 31, 2024.

●

Nautilus Resources LLC received 25,994,400 Class C HoldCo Units, together with 25,994,400 shares of Class C Common Stock, which carry voting rights but no economic interest in AleAnna, Inc.

●

Bonanza Resources (Texas) Inc., the only other AleAnna Energy Member, received 1,969,882 shares of Class A Common Stock but did not receive any Class C HoldCo Units or Class C Common Stock.

The Business Combination was accounted for as a common control transaction with respect to AleAnna Energy, which is akin to a reverse recapitalization. Nautilus Resources LLC (“Nautilus”), the majority owner of AleAnna Energy, had a controlling financial interest in AleAnna Energy prior to the Business Combination and has a controlling financial interest in the Company, as AleAnna Energy is a subsidiary of HoldCo, in which AleAnna, Inc. holds a majority economic interest. The net assets of Swiftmerge are stated at their historical carrying amounts with no goodwill or intangible assets recognized in accordance with U.S. GAAP. The Business Combination with respect to AleAnna Energy was not treated as a change in control primarily due to Nautilus receiving the controlling voting stake in the Company and the ability of Nautilus to nominate the full board of directors and management of the Company.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

In accounting for the Business Combination, Swiftmerge was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of AleAnna Energy issuing stock for the net assets of Swiftmerge, accompanied by a recapitalization.

The Class A common stock, par value $0.0001 per share, of AleAnna, Inc. (the “Class A Common Stock”) and the original 11,250,000 warrants issued as part of units in the initial public offering of Swiftmerge (the “Public Warrants”) commenced trading on Nasdaq under the symbols “ANNA” and “ANNAW,” respectively, on December 16, 2024. Each share of Class C Common Stock has voting rights equal to a share of Class A Common Stock but have no entitlement to earnings or distributions of AleAnna. Each share of Class C Common Stock is exchangeable, subject to certain conditions, for one share of Class A Common Stock. The exchange feature does not allow for cash settlement. AleAnna is organized in an “Up-C” structure effective with the Business Combination, and the only direct assets of AleAnna consist of equity interests in HoldCo, whose only direct assets consist of equity interests in AleAnna Energy. The Company’s business is conducted through AleAnna Energy and its subsidiaries.

Total proceeds raised from the Business Combination were $0.6 million, representing the proceeds from the Swiftmerge operating account after Swiftmerge public shareholder redemptions. These proceeds were offset by $9.5 million of transaction expenses. Approximately $0.6 million of the transaction expenses were recorded as a reduction to additional paid-in capital (up to the amount of cash proceeds from the Business Combination). Approximately $0.5 million represented prepaid directors and officers insurance premiums and were recorded to prepaid expenses and other assets. The remaining $8.4 million of costs incurred were expensed.

As of September 30, 2025, no shares of Class C Common Stock had been exchanged for shares of Class A Common Stock.

NOTE 3 – BASIS OF PRESENTATION

Basis of Presentation — The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements contain all adjustments necessary for a fair statement of the results of the interim periods presented. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”). Results for interim periods are not necessarily indicative of results to be expected for a full year or any future period. The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to November 12, 2025, the date that the financial statements were issued.

Immaterial Restatement of Prior Period Financial Statements — In the fourth quarter of 2024, we identified an error in the classification of the contingent consideration liability and an error in the computation of foreign currency translation adjustments as of and for the nine months ended September 30, 2024. Refer to Note 16 for quantification of the prior period restatement impacts. Additionally, comparative prior period amounts in the applicable notes to the condensed consolidated financial statements have been restated.

Principles of Consolidation — The Company’s policy is to consolidate all entities that the Company controls by ownership interest or other contractual rights giving the Company control over the most significant activities of an investee. The condensed consolidated financial statements include the accounts of AleAnna and its wholly-owned subsidiaries HoldCo, AleAnna Energy, AleAnna Resources, LLC, AleAnna Italia S.p.A., AleAnna Renewable and the RNG Subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of expenses, assets, and liabilities and disclosure of contingent assets and liabilities. The Company regularly assesses these estimates; however, actual amounts could differ from those estimates. The most significant items involving management’s estimates include estimates of contingencies including contingent consideration and estimates of the timing and amount of asset retirement obligations. The impact of changes in estimates is recorded in the period in which they become known.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Emerging Growth Company — The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed consolidated financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult because of the potential differences in accounting standards used.

Risks and Uncertainties — The development of the Company’s projects is subject to a number of risks and uncertainties including, but not limited to, the receipt of the necessary permits and regulatory approvals, commodity price risk impacting the decision to go forward with the projects, and the availability and ability to obtain the necessary financing for the development of projects.

The Company’s ability to develop and operate commercial production facilities, as well as expand production at future commercial production facilities, is subject to many risks beyond its control, including regulatory developments, construction risks, and global and regional macroeconomic developments.

Significant Accounting Policies — The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosures related to these amounts at the date of the financial statements. The Company evaluates these estimates and assumptions on an ongoing basis based on current and historical developments, market conditions, industry trends and other information that the Company believes to be reasonable under the circumstances. The Company can make no assurance that actual results will conform to its estimates and assumptions; reported results of operations may be materially affected by changes in these estimates and assumptions.

There have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024, other than updates to the Company’s restricted cash policy and revenue recognition policy in connection with the Company’s achieving first revenue from Longanesi during the second quarter of 2025, as described below.

Restricted Cash — Restricted cash consists of amounts that are held in escrow accounts or otherwise segregated to satisfy specific contractual obligations. The Company’s restricted cash relates to amounts reserved in connection with its contingent consideration liability (see Note 6). The reconciliation of the beginning-of-period and end-of-period total amounts shown in the condensed consolidated statements of cash flows includes cash, cash equivalents, and restricted cash.

Revenue Recognition — The Company follows the guidance of the ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle underlying revenue recognition under ASC 606 is that revenue should be recognized as goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. ASC 606 defines a five-step process to achieve recognition and mandates additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments, and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Renewable Natural Gas (“RNG”) — The RNG Subsidiaries earn revenue through electricity generation sales from the conversion of bio feedstocks to biomethane which is then converted to electricity through reciprocating generators. Such electricity is then delivered onto the grid through a metered interconnection and sold to the local state-owned electrical utility responsible for the purchase and marketing of energy produced by small-scale renewable energy assets. Upon delivery of the electricity to the grid, all performance obligations have been satisfied, and energy generation revenue is recognized based on actual output and non-company specific predetermined prices for small renewable energy producers of €280/MWh (D.M. 18/12/2008).

Revenue is recognized over time as the Company transfers the electricity to the grid at a metered interconnection. The customer obtains control of the product upon delivery onto the electrical grid. The Company generally has a single performance obligation in its arrangements with its customers. The Company has no long-term contracts containing quantity or electricity volume production requirements and there is no variable consideration present in the Company’s performance obligations. Per ASC 606-10-25-27(a), delivery of units of power that are simultaneously received and consumed by the customer would satisfy the criteria in to be accounted for as a performance obligation satisfied over time and the same method would be used to measure the entity’s progress towards complete satisfaction of the performance obligation to transfer each distinct unit of power in the series to the customer. The Company’s performance obligation related to the sales of electricity are satisfied over time upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products. The Company applies a practical expedient in FASB ASC 606-10-55-18 applicable to its sales by assessing whether the Company’s right to consideration corresponds directly with the value to the Company’s customer (the “invoice practical expedient”). The Company concluded that pricing that corresponds to the value provided to the customer. Consideration for each transaction is based upon non-company specific predetermined prices for small renewable energy producers of €280/MWh, established under Ministerial Decree (D.M.) 18 December 2008, which sets tariff rates for small renewable energy producers in Italy. Payment terms are typically two months after the invoice date and there are no return or refund rights.

Conventional Natural Gas (“Conventional”) — On October 29, 2024, the Company entered into a gas sale agreement (“GSA”) with Shell Energy Europe Limited (“SEEL”), under which SEEL became the exclusive purchaser of AleAnna’s share of natural gas produced from the Longanesi field net of (i) any consumption and/or losses incurred in the transport, treatment and compression of gas before delivery; (ii) any volume to be allocated for regulated royalties auctions, if applicable; and (iii) any other volume contractually allocated to other parties before August 31, 2022.

The GSA features variable pricing based on a published benchmark, the Punto di Scambio Virtuale (“PSV”), with fixed discounting. Accordingly, revenue under the GSA is highly sensitive to market prices and may fluctuate significantly as natural gas prices rise or fall. SEEL typically remits payment monthly, shortly after delivery. The timing of payment does not introduce a significant financing component.

AleAnna is not subject to return or refund obligations under the GSA unless the transmission operator refuses delivery of gas that does not meet industry-standard specifications. The gas sold generally conforms to such specifications, which are verified at the point of transfer to the transmission system.

All consideration under the GSA is variable, reflecting both price and volume. Revenue is recognized based on the amount of variable consideration allocated to distinct units of natural gas delivered. This allocation reflects the total consideration AleAnna expects to receive for completed deliveries, and the variability in consideration is directly tied to the satisfaction of the performance obligations. Our performance obligations under our hydrocarbon sales agreements are to deliver our entire working interest in the natural gas production from the Longanesi field.

Under the working interest agreement with Padana, AleAnna receives its share of processed gas in-kind and sells it to SEEL. AleAnna’s performance obligation is satisfied upon delivery of the processed gas to SEEL at the designated delivery point, which is the entry point on the Italian transmission system, as defined in the GSA.

Trade receivables arising from these sales of electricity and natural gas are evaluated for impairment under ASC 326 using the simplified approach. Based on the short-term nature of the receivables and the credit quality of the customers, the Company generally does not record an allowance for credit losses.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

NOTE 4 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In November 2024, the FASB issued ASU 2024-03 to improve the disclosures about a public business entity’s expenses. The update requires more detailed information on expense components, such as inventory purchases, employee compensation, depreciation, amortization, and depletion, within commonly reporting categories like cost of sales, SG&A, and research and development. These amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements and disclosures.

In December 2023, the FASB issued ASU 2023-09 to improve disclosures and presentation requirements to the transparency of the income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments are effective in annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated financial statements and disclosures.

NOTE 5 – LEASES, RIGHT-OF-USE ASSETS AND RELATED LIABILITIES

Leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources (see ASC 930, Extractive Activities — Mining, and ASC 932, Extractive Activities — Oil and Gas) are excluded from the scope of ASC 842, Leases. The Company has surface and use agreements for Longanesi, Gradizza, Trava, and Armonia in Italy. These agreements are directly related to accessing the subsurface minerals and are assessed as part of the oil and gas properties. As of December 31, 2023, all leases in AleAnna’s portfolio, in addition to its lease of office space, are short-term leases (12 months or less) and did not require recognition on the balance sheet.

In July 2024, in conjunction with the Casalino acquisition, AleAnna entered into a lease of the land that holds the biomethane processing and conversion asset utilized to produce electricity. The lease term is from July 1, 2024 through December 31, 2032, with an option to extend the lease until December 31, 2041. The annual rent is €278,200 and must be paid in advance in four installments by the end of each calendar quarter. The total rent for the lease term until December 31, 2032 is €2,364,700. As of September 30, 2025, the Company’s operating lease right of use assets totaled $1.8 million, short term lease liabilities totaled $0.2 million, and long-term lease liabilities totaled $1.6 million. The Company recognized $0.2 million of operating lease expense during the year ended September 30, 2025, which was included in cost of revenues as the land being leased is directly related to the production and sale of electricity at Casalino. As of December 31, 2024, the Company’s operating lease right of use assets totaled $1.8 million, short term lease liabilities totaled $0.2 million, and long-term lease liabilities totaled $1.6 million.

The Company does not have any borrowings; therefore, it does not have a readily determinable incremental borrowing rate readily determinable, and there was no incremental borrowing rate implicit in the Casalino land lease. As such, the Company utilized a discount rate of 7.709% to measure its lease liability. This represents the Company’s estimated incremental borrowing rate, determined using the 3-month EURIBOR rate of 3.709% as of July 2024, plus an estimated spread of 400 basis points (4.000%), to reflect the Company’s credit risk profile. This reflects best estimate of the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term.

NOTE 6 – CONTINGENT CONSIDERATION LIABILITY

On July 13, 2016, AleAnna Europa S.r.L., a former subsidiary of AleAnna Resources LLC (which was subsequently merged into AleAnna Italia S.p.A. in December 2022), purchased a 33.5% working interest in the Longanesi field, which was accounted for as an asset acquisition. Consideration paid included €7 million cash and up to €24 million of deferred consideration payable upon production of the Longanesi field. The deferred consideration is payable based on a formulaic calculation which is predominantly dependent on sales volumes and spot natural gas prices during the first 12 years of production (the “Earn-Out Period”). There will be no deferred consideration due if Longanesi is not developed and no deferred consideration due if average annual gas prices are less than €3.65/Mcf over the Earn-Out Period.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

The Company recognized a liability for the contingent consideration in accounting for the asset acquisition in accordance with ASC 450, Contingencies (the “contingent consideration liability”).

In connection with Longanesi start-up in May 2025, AleAnna issued a $3.1 million bank guarantee to secure its contingent consideration obligation to Enel. The guarantee required $1.2 million in cash collateral, which was classified as restricted cash as of September 30, 2025. The collateral may be used to satisfy the contingent consideration liability as payments become due. Payments become due 14 months after the first day of the month following the date of first production, which for contractual purposes began on May 8, 2025.

As of September 30, 2025, the contingent consideration liability was recorded at $28.1 million, with $10.8 million being classified as short-term, as the first payment is due August 2026, and $17.4 million being classified as long-term. As of December 31, 2024, the contingent consideration liability was recorded at $25.0 million, with the entire balance classified as long-term since all payments are due more than one year after the respective balance sheet date. The estimate of the contingent consideration liability was determined based on inputs including the following as of September 30, 2025 and December 31, 2024: futures prices for European natural gas, Euro to USD exchange rates of 1.17 and 1.04, respectively, and management’s future expected annual Longanesi production. AleAnna is required to make formulaic deferred consideration payments effectively equating to 20% to 50% of revenue based on certain European natural gas threshold prices. The calculation and timing of such payments are primarily driven by future expected Longanesi production, as modeled by DeGolyer and MacNaughton, as well as forward European natural gas prices.

Changes in the contingent consideration liability attributable to factors other than foreign currency exchange rates are recognized in the condensed consolidated statements of operations. Changes in the contingent consideration liability attributable to foreign currency translation are recognized in other comprehensive loss within the condensed consolidated statement of operations and comprehensive loss. The change in the contingent consideration liability for all periods presented is attributable to changes in foreign exchange rates.

NOTE 7 – DERIVATIVE LIABILITY

As of December 31, 2023, the Company recorded a $0.2 million derivative liability related to an embedded 3.5x redemption feature within the Class 1 Preferred Units issued prior to the Business Combination. This feature was bifurcated and recorded at fair value pursuant to ASC 815. During the nine months ended September 30, 2024, the liability was reduced to zero, with the resulting gain recognized in the condensed consolidated statement of operations and comprehensive loss. The derivative liability was derecognized in conjunction with the closing of the Business Combination as the related Class 1 Preferred Units were exchanged for AleAnna common stock.

NOTE 8 – NATURAL GAS PROPERTIES

Conventional Natural Gas Properties

A summary of conventional natural gas properties is as follows:

	September 30, 2025			December 31, 2024
Natural gas properties	$	67,638,692		$	56,977,091
Less: Accumulated impairment		(24,320,665	)		(22,998,077	)
Less: Accumulated depreciation and depletion		(965,967	)		-
Natural gas and other properties, net	$	42,352,060		$	33,979,014

The Company uses the successful efforts method of accounting for conventional natural gas-producing activities. Under this method, the cost of productive wells and related equipment, development dry holes, and any permits related to productive acreage are capitalized and depleted using the unit-of-production method. Costs for exploratory dry holes, exploratory geological and geophysical activities, and delay rentals as well as other property carrying costs are charged to exploration expense.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

There were no exploratory wells drilled and there were no capitalized exploratory well costs incurred during the three and nine months ended September 30, 2025 or September 30, 2024. Asset additions during the three and nine months ended September 30, 2025 primarily related to the construction of the Longanesi processing facility. Asset additions during the three and nine months ended September 30, 2024 primarily related to the drilling and testing of three incremental Longanesi development wells. The company recorded no impairment of natural gas properties during the three months or nine months ended September 30, 2025, or during the year ended December 31, 2024. The change in accumulated impairment relates to the effects of foreign currency translation adjustments.

First Production at Longanesi

On March 13, 2025, AleAnna achieved a key milestone with the first production from its five wells in the Longanesi field and began recognizing revenue and related expenses, including depreciation and depletion, related to this production during the second quarter of 2025. AleAnna generated approximately $10.6 million and $13.9 million of revenue from sales of natural gas from the Longanesi field during the three and nine months ended September 30, 2025.

Renewable Natural Gas Properties

Between March 2024 and July 2024, the Company successfully completed three separate strategic acquisitions of renewable natural gas (“RNG”) assets in Italy for an aggregate of approximately $9.4 million. The plant assets are fully permitted and are in various stages of the development lifecycle, with one greenfield plant asset that is a new development (Campagnatico) and two brownfield plant assets (Casalino and Campopiano) that are currently generating bio-electricity. The Company plans to develop and upgrade these assets for biomethane production in the future.

During the three and nine months ended September 30, 2025, all RNG revenue was derived from a single source (sales of electricity) and a single customer (the local state-owned electrical utility). As of September 30, 2025, the Company had $0.4 million of revenue receivable related to electricity sales. As of December 31, 2024, the Company had $1.2 million of revenue receivable related to electricity sales.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Participation Agreements

In conjunction with the closing of the Enel acquisition, AleAnna became a participant in the Longanesi Unitization Agreement (“UA”) with Societa Padana Energia (“Padana”). The UA governs the combination of Padana’s San Potito Concession and AleAnna’s San Marco Concession into a production unit. At the same time, AleAnna became a participant in the Unified Operating Agreement (“UOA”), which governs the bylaws by which Padana and AleAnna agree to develop the unit and fund future operations.

Under the UOA, AleAnna and Padana have agreed to jointly develop the Longanesi per a plan approved by the Italian Ministry of the Environment (“MISE”). AleAnna and Padana entered the UOA with initial participating shares in the Longanesi field equal to 33.5% for AleAnna and 66.5% for Padana, with Padana appointed as the operator. Padana is obliged to maintain the accounting records concerning the operations under the UOA in compliance with the laws and generally accepted accounting practices followed in the Italian oil and gas industry.

AleAnna and Padana fund their respective working interest shares of the capital required for Longanesi development and will receive their respective shares of the production output from the unitized field. However, such working interest percentages may be subsequently amended as more certainty is obtained over the Gas Originally in Place (“GOIP”) through redetermination procedures prescribed by the UOA. The redetermination process evaluates the results of the current development drilling program (well logs, production tests, etc.) and other data that may be gathered prior to or during the drilling process (such as 3D seismic imaging) to determine if new data gathered have changed the respective working interest percentages. If a redetermination process suggests GOIP changes, but AleAnna and Padana do not agree on revised working interest percentages, an independent third party will opine and set the revised working interest allocations. Adjustments to future production entitlements and capital contributions may be made accordingly. Cash payments may be made between the participants where there is insufficient production to true up contributions to date. If a true up of historical capital contributions is required as a result of redetermination, such capital true-up amounts will include an interest charge based on the nine-month Euro interbank offered rate (“Euribor”) and the date of the original capital contribution.

On October 26, 2023, Padana formally called for the First Redetermination process, as defined in the UOA, to begin. However, the outcome of this or any future redetermination, which may impact working interest percentages and require a capital contribution rebalancing, is highly uncertain and such amounts are not estimable at this time. Accordingly, AleAnna has not recorded any receivable from or payable to Padana related to the redetermination process.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Contingencies and Legal Proceedings

The Company is subject to loss contingencies related to litigation, claims, investigations and legal and administrative cases and proceedings arising in the ordinary course of business. The Company evaluates these contingencies on a regular basis and accrues a liability for such matters when the Company believes that a loss is probable, and the amount of the loss can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changed circumstances. In the event the Company determines that (i) a loss to the Company is probable, but the amount of the loss cannot be reasonably estimated, or (ii) a loss to the Company is less likely than probable but is reasonably possible, then the Company is required to disclose the matter herein, although the Company is not required to accrue such loss.

When able, the Company determines an estimate of reasonably possible losses or ranges of reasonably possible losses, whether in excess of any related accrued liability or where there is no accrued liability, for legal proceedings.

In instances where such estimates can be made, any such estimates are based on the Company’s analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties and may change as new information is obtained.

The ultimate outcome of the matters described below, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the range of loss is reasonably estimable, is inherently uncertain.

Furthermore, due to the inherent subjectivity of the assessments and unpredictability of outcomes of legal proceedings, any amounts accrued or estimated as possible losses may not represent the ultimate loss to the Company from the legal proceedings in question and the Company’s exposure and ultimate losses may be higher, and possibly significantly so, than the amounts accrued or estimated.

As described in Note 1, AleAnna acquired a 33.5% working interest in the Longanesi field. As part of the purchase, a legacy owner, Blugas Infrastructure S.r.L. (“Blugas”), retained an interest akin to an overriding royalty interest (“ORRI”), whereby Blugas is entitled to physical delivery of 20% of the first 350 million standard cubic meters (“SCM”) produced from the Longanesi field. In accounting for the acquisition of the 33.5% working interest, the Company did not recognize an asset or liability in the condensed consolidated financial statements related to the Blugas ORRI. Further, in December 31, 2023, the Company’s SEC Case reserves estimates contemplated the contractual arrangement and physical gas delivery to Blugas, such that the net cash flows related to the gas reserves attributable to the Company’s 33.5% working interest were reduced.

On May 28, 2024, the Company reached a settlement agreement (the “Blugas Settlement Agreement”) with Blugas regarding the Blugas ORRI. Under the terms of the Blugas Settlement Agreement, the Company paid Blugas approximately €5 million, plus an additional €1.1 million in applicable VAT, or approximately $6.6 million. In exchange, the Company was released from any future liability related to the Blugas ORRI. As a result of the transactions contemplated by the Blugas Settlement Agreement, the Company’s 33.5% working interest (net revenue interest) in the Longanesi field, as established under the terms of the Unified Operating Agreement arrangement originally signed between ENI and Grove and dated September 26, 2009, is now unencumbered except for normal government royalties (10%).

The Blugas Settlement Agreement was accounted for as an acquisition of the Blugas ORRI claim with a corresponding increase to the estimated future cash flows from our reserves. As such, the cost of the acquisition is included in natural gas and other properties, with the VAT portion included in value-added tax refund receivable in the consolidated balance sheet as of September 30, 2025 and December 31, 2024. The Company’s year-end December 31, 2023 reserve quantities included the 20% of 350 million standard cubic meters (approximately 2,472 10⁶ft³) allocable to the Blugas ORRI in the Company’s proved gas reserves. However, the required payments to Blugas associated with the sale of such quantities were reflected as cash outflows (costs) in the Company’s year-end December 31, 2023 reserve report as if such amounts were paid to Blugas. Following settlement, the Company’s year-end December 31, 2024 reserve quantities continue to include the 20% of 350 million standard cubic meters (approximately 2,472 10⁶ft³); however, the previously required payments to Blugas associated with the sale of such quantities are no longer reflected as cash outflows (costs) given the acquisition of the Blugas ORRI. As the cash outflows (costs) were no longer reflected as if paid to Blugas, such amounts were reflected in the Company’s December 31, 2024 reserve report as allocable to the Company’s unencumbered 33.5% working interest.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

NOTE 10 – EQUITY

AleAnna Common Stock and Noncontrolling Interests – As of September 30, 2025, the Company had 40,659,881 shares of Class A Common Stock outstanding and 25,994,400 shares of Class C Common Stock outstanding. See Note 2, Reverse Recapitalization Transaction, for more details of the Company’s Class A Common Stock and Class C Common Stock.

Following the Business Combination, AleAnna, Inc. became the sole managing member of HoldCo and received 40,560,433 Class A HoldCo Units, representing a controlling economic interest in HoldCo. AleAnna, Inc. consolidates HoldCo and its subsidiaries in its consolidated financial statements. The remaining 25,994,400 Class C HoldCo Units are held by Nautilus Resources LLC and are presented as noncontrolling interest (“NCI”) in the Company’s consolidated financial statements. Holders of Class C HoldCo Units have a direct economic interest in HoldCo but no direct economic interest in AleAnna, Inc. The Class C Common Stock is paired with the Class C HoldCo Units and provides voting rights in AleAnna, Inc. on a one-to-one basis with Class A Common Stock but carries no economic rights. Each Class C HoldCo Unit may be exchanged, together with a share of Class C Common Stock, for one share of Class A Common Stock.

As of September 30, 2025, AleAnna, Inc. held approximately 60.94% of the economic interest in HoldCo through its Class A HoldCo Units, and Nautilus held approximately 39.06% through its Class C HoldCo Units. These interests are reflected as controlling and noncontrolling interests, respectively, in the Company’s consolidated financial statements. The NCI may decrease as holders of Class C HoldCo Units (which represent an economic interest in HoldCo) and their corresponding shares of Class C Common Stock (which provide voting rights in AleAnna, Inc.) exchange both securities together for shares of Class A Common Stock. Each share of Class C Common Stock must be surrendered along with a corresponding Class C HoldCo Unit in order to receive one share of Class A Common Stock. As of September 30, 2025, no such exchanges has occurred.

As of September 30, 2025, the noncontrolling interest presented in the Company’s consolidated financial statements primarily relates to the 39.06% economic interest in HoldCo held by Nautilus Resources LLC through Class C HoldCo Units. A small portion of the noncontrolling interest also relates to a third-party minority interest in the Campopiano RNG project-level subsidiary discussed in Note 1.

Warrants – There were 11,150,543 and 11,250,000 Public Warrants outstanding as of September 30, 2025 and December 31, 2024. Each warrant entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing 30 days after the completion of our Business Combination.

The Company may call the Public Warrants for redemption:

●

in whole and not in part;

●

at a price of $0.01 per Public Warrant;

●

upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each Public Warrant holder;

●

if, and only if, the reported last sale price of the Class A Common Stock equals or exceeds $18.00 per share (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and the like) on each of 20 trading days within a 30-trading day period ending on the third trading day before the Company sends the notice of redemption to the Public Warrant holders; and

●

if, and only if, there is a current registration statement in effect with respect to the Class A Common Stock underlying such Public Warrants.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

In the event that the Company elects to redeem all of the redeemable Public Warrants, it will fix a date for the redemption. Pursuant to the terms of the warrant agreement, notice of redemption will be mailed by first class mail, postage prepaid, by not less than 30 days prior to the redemption date to the registered holders of the redeemable Public Warrants to be redeemed at their last addresses as they appear on the registration books. Any notice mailed in the manner provided in the warrant agreement will be conclusively presumed to have been duly given whether or not the registered holder received such notice.

The Company has established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the Public Warrant exercise price. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Public Warrants, each Public Warrant holder will be entitled to exercise his, her or its Public Warrant prior to the scheduled redemption date. However, the price of the Class A Common Stock may fall below the $18.00 redemption trigger price (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and the like) as well as the $11.50 Public Warrant exercise price after the redemption notice is issued.

Through September 30, 2025, holders had exercised an aggregate 99,448 Public Warrants, resulting in the issuance of 99,448 shares of Class A Common Stock at an exercise price of $11.50 per share. These exercises generated approximately $1.1 million in cash proceeds.

AleAnna Energy Members’ Equity (pre-Business Combination) – Prior to the Business Combination the Company had Common Units and Class 1 Preferred Units issued and outstanding. Due to the redemption features of the Class 1 Preferred Units, they were recorded at redemption value and classified as temporary equity in the consolidated balance sheets. The difference between the book value of Class 1 Preferred Units issued and the redemption value, less the amount attributable to the derivative liability discussed in Note 7, was recorded as a deemed dividend in periods prior to the Business Combination. AleAnna Energy’s Class 1 Preferred Units and Common Units were exchanged for AleAnna common stock in connection with the Business Combination (see Note 2).

NOTE 11 – EXECUTIVE COMPENSATION

Employment Agreements

On September 1, 2022, the Company entered into an employment agreement with the CEO. Within this employment agreement, there is a Medium/Long Term Incentive Plan (“M/LTIP” or the “Plan”) outlined, which includes cash bonus amounts to be paid based on the completion of certain milestones within the established thresholds. Such payments could result in total payments ranging from €375,000 to €1,125,000. Threshold dates for such payments range from May 31, 2024, through December 31, 2026.

The Company tracks each of the milestones for the executive compensation package based on the current and future business plans. Based on the metrics and performance indicators outlined in the executive compensation package, management has concluded that the likelihood of achieving each of these metrics is not probable as of September 30, 2025.

AleAnna, Inc. 2025 Long-Term Incentive Plan

On June 12, 2025, the stockholders approved and adopted the AleAnna, Inc. 2025 Long-Term Incentive Plan (“LTIP”). The LTIP provides for the grant of both incentive stock options (“ISOs”) and nonqualified stock options (“NSOs” and together with ISOs, “Stock Options”), as well as the grant of stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalent rights, and other awards, which may be granted separately or in combination or in tandem with other awards, and which may be paid in cash or shares of our common stock.

The Company filed a registration statement on Form S-8 to register the underlying shares on October 1, 2025. On October 29, 2025 the Compensation Committee granted awards under the 2025 Long-Term Incentive Plan. Restricted stock units (“RSUs”) generally vest one-third each year over a three-year period following the grant date based on a continuous service requirement. Certain RSUs vest the earliest of the one year anniversary of the grant date or the next annual meeting of the stockholders, provided that such annual meeting occurs at least 52 weeks following the prior annual meeting of the stockholders, and further provided that the participant is employed by or providing services to the Company or subsidiary on such date. Performance stock units (“PSUs”) vest in their entirety on the date the Compensation Committee determines the applicable performance milestone has been satisfied.

ALEANNA, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025

NOTE 12 – INCOME TAXES

As of September 30, 2025 and December 31, 2024, AleAnna, Inc. held 60.94% of the economic interest in HoldCo, which is treated as a partnership for U.S. federal income tax purposes. As a partnership, HoldCo generally is not subject to U.S. federal income tax under current U.S. tax laws as its net taxable income (loss) and any related tax credits are passed through to its members and included in their tax returns, even though such net taxable income (loss) or tax credits may not have actually been distributed. AleAnna, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to its distributive share of the net taxable income (loss) and any related tax credits of HoldCo.

AleAnna Energy was historically and remains a disregarded subsidiary of a partnership for U.S. Federal income tax purposes with each partner being separately taxed on its share of taxable income or loss. As a direct result of the Business Combination, HoldCo became the sole member of AleAnna Energy. As such, HoldCo’s distributive share of any net taxable income or loss and any related tax credits of AleAnna Energy are then distributed to the Company. For the days and periods prior to the closing of the Business Combination, AleAnna Energy was a disregarded subsidiary of an entity treated as a partnership. As such, its net taxable loss and any related tax credits were allocated to its members.

AleAnna’s Italian subsidiary (AleAnna Italia, S.p.A.) is a joint stock company or S.p.A. and is considered a corporation under the Italian tax code. Therefore, the statutorily determined cumulative taxable loss of AleAnna Italia was tax affected and recognized as a deferred tax asset as of September 30, 2025 and December 31, 2024. The Company has also recorded deferred tax assets for temporary differences between the book and tax basis in the underlying assets and liabilities. Given AleAnna’s history of losses, and because future production remained uncertain as of September 30, 2025 and December 31, 2024, a full valuation allowance was applied against the deferred tax assets.

The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The company recognized $0.6 million in income tax expense during both the three and nine months ended September 30, 2025, respectively, primarily related to temporary differences of its Italian subsidiaries. The Company’s effective tax rates were 9.5% and 18.6% for the three and nine months ended September 30, 2025, respectively, and 0.0% for the same periods in 2024. The effective tax rates during the three and nine months ended September 30, 2025 and 2024 were lower than the applicable statutory rates primarily due to the application of a full valuation allowance against the Company’s deferred tax assets as of both September 30, 2025 and September 30, 2024 and taxable losses as of September 30, 2024. The applicable U.S. and Italian corporate tax rates were 21% and 24%, respectively, during the three and nine months ended September 30, 2025 and 2024.

The Company has assessed the realizability of the net deferred tax assets, and in that analysis, has considered the relevant positive and negative evidence available to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. In making such a determination, the Company considered all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations.

ALEANNA, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

After consideration of all available positive and negative evidence, the Company maintained a full valuation allowance against its deferred tax assets as of September 30, 2025 and December 31, 2024. While the Longanesi field commenced production during the second quarter of 2025 and the Company recognized its second quarter of income before taxes, the Company has a history of losses and limited demonstrated profitability. In accordance with ASC 740, the Company considers cumulative losses in recent years to be significant negative evidence that is difficult to overcome with subjective forecasts of future taxable income. As such, the Company determined that it is not yet appropriate to release any portion of the valuation allowance. The Company will continue to evaluate all available evidence in future periods. As noted above, the valuation allowances completely offset the deferred tax assets, which resulted in a net zero impact to the Company’s consolidated balance sheets as of September 30, 2025 and December 31, 2024.

The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. To the extent the Company’s assessment of such tax positions changes, the change in estimate will be recorded in the period in which the determination is made. As of September 30, 2025 and December 31, 2024, the Company had not recorded any uncertain tax positions or accrued interest and penalties on the consolidated balance sheets.

The Company’s income tax filings will be subject to audit by various taxing jurisdictions. The Company will monitor the status of U.S. Federal, state and local income tax returns and Italian tax returns that may be subject to audit in future periods. No U.S. Federal, state and local income tax returns or Italian tax returns are currently under examination by the respective taxing authorities.

NOTE 13 – RELATED PARTY TRANSACTIONS

The Company follows FASB ASC subtopic 850-10, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

Certain executive officers of AleAnna are currently employed by and participate in employee benefit plans sponsored by an affiliate of Nautilus and provide administrative and support services to AleAnna under a master services agreement. As of September 30, 2025, AleAnna had outstanding payables of $0.1 million to the affiliate of Nautilus pursuant to such agreements. Services provided include insurance, risk management, legal, information technology, purchasing, executive management, accounting, finance, human resources, and other administrative services.

NOTE 14 – INCOME (LOSS) PER SHARE

The Business Combination was accounted for as a common control transaction with respect to AleAnna Energy which is akin to a reverse recapitalization. This conclusion was based on Nautilus’s controlling financial interest in AleAnna Energy prior to the Business Combination and its continued control over the combined entity. Following the Business Combination, Nautilus holds Class A Common Stock, representing a direct controlling economic interest, and Class C HoldCo Units and Class C Common Stock, representing a noncontrolling economic interest classified as NCI in stockholders’ equity in the Company’s consolidated financial statements.

Prior to the closing of the Business Combination, AleAnna Energy operated as a limited liability company with ownership interests consisting of Common Units and Class 1 Preferred Units. The application of a hypothetical exchange ratio to convert these units into shares of Class A and Class C Common Stock for periods prior to the Business Combination would not reflect the Company’s post-transaction capital structure. Accordingly, the Company has not retroactively applied the exchange ratio or presented earnings (net loss) per unit for those historical periods, as such information would not be meaningful or comparable to earnings (net loss) per share presented for periods after the Business Combination. See Note 2, “Reverse Recapitalization Transaction,” for further discussion.

For the three and nine months ended September 30, 2025, basic net income (loss) per share was computed by dividing net income (loss) attributable to holders of Class A Common Stock by the weighted average number of shares of Class A Common Stock outstanding during the respective periods. Diluted net income (loss) per share was computed by dividing net income (loss) attributable to holders of Class A Common Stock by the weighted-average number of shares of Class A Common Stock outstanding, adjusted to give effect to potentially dilutive securities.

ALEANNA, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

For the three and nine months ended September 30, 2025, the Company excluded potentially dilutive securities from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive. As a result, the weighted average number of shares of Class A Common Stock outstanding used to calculate basic and diluted net income (loss) per share was the same for each period.

The 25,994,400 shares of Class C Common Stock were excluded from the computation of diluted earnings per share because they are not participating securities and are exchangeable on a one-for-one basis for shares of Class A Common Stock at the option of the holders. The Company also excluded the 11,150,543 Public Warrants from the calculation of diluted weighted average shares of Class A Common Stock outstanding, as their inclusion under the treasury stock method would have been anti-dilutive.

The following table sets forth the computation of net income (loss) used to compute basic net income (loss) per share of Class A Common Stock for the three and nine months ended September 30, 2025:

	Three months ended September 30,			Nine months ended September 30,
	2025			2025
Net income (loss)	$	5,318,677		$	2,623,970
Income (loss) attributable to noncontrolling interests		(2,004,779	)		(967,268	)
Net Income (loss) attributable to holders of Class A Common Stock		3,313,898			1,656,702

Weighted average shares of Class A Common Stock outstanding, basic and diluted		40,615,773			40,631,315
Net income (loss) per share of Class A Common Stock, basic and diluted		0.08			0.04

NOTE 15 – SEGMENT REPORTING

During the second quarter of 2025, in connection with the commencement of production at the Longanesi field, the Company’s evaluation of operating results between conventional and renewable operations became more relevant to the chief operating decision maker, resulting in further disaggregation of the Company’s single reportable segment. As a result, the Company determined it has two operating segments, each of which also qualifies as a reportable segment, based on the manner in which the chief operating decision maker (“CODM”)—the Company’s Executive Director and Chief Executive Officer, collectively—reviews financial information to assess performance and allocate resources.

●

The Conventional segment consists of the natural gas exploration and production activities conducted by AleAnna Italia. The primary product of this segment is conventional natural gas produced from onshore exploration and development in Italy.

●

The Renewable segment consists of the RNG and electricity production activities conducted by AleAnna Renewable and the RNG Subsidiaries. The segment’s primary output is electricity generated from RNG derived from animal and agricultural waste.

Reconciling items include includes items not directly attributable to either reportable segment. These include corporate financing and investing activities, as well as administrative functions that support the Company’s overall operations. These items are presented in the segment reconciliation but do not constitute a reportable segment.

The CODM evaluates segment performance primarily using segment operating income (loss), which is consistent with the presentation in the Company’s consolidated statements of operations. The CODM monitors revenues and operating expenses by segment for purposes of strategic decision-making and resource allocation, including the evaluation of the timing and amount of future investment in, or development of, the conventional and renewable reportable segments. . The expense categories reviewed by the CODM are consistent with those presented in the consolidated statements of operations and in the segment operating results presented below.

All of the Company’s revenue is generated with external customers and located in Italy. All of the Company’s assets, other than corporate assets primarily comprised of cash located in the U.S., are located in Italy.

ALEANNA, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Selected financial information by segment is presented in the tables below:

	Three Months Ended September 30, 2025
	Conventional		Renewable			Total
Revenues	$	10,577,395	$	647,473		$	11,224,868

Less:
Cost of revenues	$	1,348,779	$	806,410
Lease operating expense		654,092		-
Segment general and administrative		674,287		684,462
Depreciation and depletion		492,696		89,908
Accretion of asset retirement obligation		33,318		-
Segment operating income (loss)	$	7,374,224	$	(933,307	)	$	6,440,917
Reconciling items:
Less: Corporate general and administrative						$	712,302
Interest and other income							146,655
Income before income taxes						$	5,875,269

Segment assets	$	64,906,177	$	15,666,120		$	80,572,297
Corporate and other assets							19,487,373
Total assets						$	100,059,670

	Three Months Ended September 30, 2024
	Conventional			Renewable			Total
Revenues	$	-		$	648,328		$	648,328

Less:
Cost of revenues	$	-		$	538,607
Segment general and administrative		920,203			451,372
Depreciation and depletion		-			51,311
Accretion of asset retirement obligation		33,310			-
Segment operating income (loss)	$	(953,513	)	$	(392,962	)	$	(1,346,476	)
Reconciling items:
Less: Corporate general and administrative							$	125,781
Interest and other income								396,200
Income (loss) before income taxes							$	(1,076,057	)

Segment assets	$	41,333,513		$	12,995,721		$	54,329,234
Corporate and other assets								39,940,436
Total Assets							$	94,269,670

ALEANNA, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

	Nine Months Ended September 30, 2025
	Conventional		Renewable			Total
Revenues	$	13,893,184	$	2,006,695		$	15,899,878

Less:
Cost of revenues	$	1,348,779	$	1,946,326
Lease operating expense		1,748,500		-
Segment general and administrative		2,544,156		1,048,022
Depreciation and depletion		628,150		256,989
Accretion of asset retirement obligation		98,519		-
Segment operating income (loss)	$	7,525,079	$	(1,244,643	)	$	6,280,435
Reconciling items:
Less: Corporate general and administrative						$	3,593,769
Interest and other income							538,291
Income (loss) before income taxes						$	3,224,957

Segment assets	$	64,906,177	$	15,666,120		$	80,572,297
Corporate and other assets							19,487,373
Total assets						$	100,059,670

	Nine Months Ended September 30, 2024
	Conventional			Renewable			Total
Revenues	$	-		$	648,328		$	648,328

Less:
Cost of revenues	$	-		$	538,607
Segment general and administrative		1,996,832			916,002
Depreciation and depletion					51,311
Accretion of asset retirement obligation		99,930			-
Segment operating income (loss)	$	(2,096,762	)	$	(857,592	)	$	(2,954,354	)
Reconciling items:
Less: Corporate general and administrative							$	1,560,999
Interest and other income								1,325,660
Change in fair value of derivative liability								173,177
Income (loss) before income taxes							$	(3,016,516	)

Segment assets	$	41,333,513		$	12,995,721		$	54,329,234
Corporate and other assets								39,940,436
Total Assets							$	94,269,670

NOTE 16 – IMMATERIAL RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS

Subsequent to the issuance of the Company’s unaudited consolidated financial statements as of and for the nine months ended September 30, 2024, errors were identified in the computation of foreign currency translation adjustments. As a result, the Company has restated the prior period financial statements to correct the errors. Management evaluated the materiality of the errors and concluded that they were not material to the prior period financial statements.

ALEANNA, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

The following tables reflect the effects of the correction on all affected line items of the Company’s previously reported September 30, 2024 consolidated financial statements presented in this Form 10-Q:

	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2024
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)	Previously Reported			Correction			As Corrected
Operating expenses:
Change in contingent consideration liability	$	304,929		$	(304,929	)	$	-
Total operating expenses		5,468,610			(304,929	)		5,163,681
Operating loss		(4,820,282	)		304,929			(4,515,353	)
Net loss		(3,321,445	)		304,929			(3,016,516	)
Net loss attributable to Common Member Units		(158,744,622	)		304,929			(158,439,693	)

Other comprehensive income (loss):
Currency translation adjustment		(18,986	)		1,330,146			1,311,160
Comprehensive loss	$	(3,340,431	)	$	1,635,075		$	(1,705,356	)

	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2024
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)	Previously Reported			Correction			As Corrected
Cash flows from operating activities:
Net loss	$	(3,321,445	)	$	304,929		$	(3,016,516	)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of contingent consideration		304,929			(304,929	)	$	-
Net cash used in operating activities	$	(6,920,138	)	$	-		$	(6,920,138	)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes and the section titled “Management’s Discussion and Analysis of Financial Condition and included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2025.

This discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs that involve risks and uncertainties that may be outside our control. Actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set for under “Risk Factors” in our Annual Report on Form 10-K. Unless the context otherwise requires, all references in this section to “we,” “us,” “our,” “AleAnna,” or the “Company” refer to AleAnna, Inc.

Overview

AleAnna is a natural gas resource developer focused on delivering critical natural gas supplies to Europe through both onshore conventional natural gas exploration and renewable natural gas development in Italy. We have several conventional natural gas discoveries including the Longanesi field, located in the Po Valley in Northern Italy, which is one of Italy’s largest modern gas discoveries. We retain a 33.5% working interest in the Longanesi field with our working interest partner, and operator, Padana. We acquired our working interest in the Longanesi field through a 2016 transaction with Enel. We also retain wholly owned concessions, permits, and pending applications on other exploration and development prospects across Italy which are supported by proprietary modern 3D seismic imaging.

Our recent drilling and exploration activities involve the drilling and testing of three Longanesi development wells (during 2022 and 2023) as well as the re-completion of two original discovery wells. We had no drilling activity during the three and nine months ended September 30, 2025 or 2024. We had no other exploratory or development drilling during three and nine months ended September 30, 2025 or 2024. Our Longanesi, Trava and Gradizza wells were classified by DeGolyer as proved undeveloped reserves as such wells had not yet started production as of December 31, 2024 and require future investments to install production facilities prior to being fully completed and producible. However, as noted in the “Recent Developments” section below, we achieved first production from the Longanesi field in 2025.

In 2021, we launched a renewable natural gas development business focused on bringing to market carbon-negative renewable natural gas derived from animal and agricultural waste. We currently generate revenue from electricity sales from two renewable natural gas assets.

The Transactions

On December 13, 2024, we consummated the previously announced business combination pursuant to the Merger Agreement, dated June 4, 2024, by and among Swiftmerge, HoldCo, Swiftmerge Merger Sub LLC, a Delaware limited liability company and wholly-owned subsidiary of HoldCo, and AleAnna Energy. Pursuant to the terms of the Merger Agreement, on December 13, 2024, SPAC migrated to and domesticated as a Delaware corporation in accordance with Section 388 of the Delaware General Corporation Law, as amended, and the Companies Act (As Revised) of the Cayman Islands and changed its name to AleAnna, Inc. The transactions contemplated by the Merger Agreement are collectively referred to herein as the “Business Combination.”

The Business Combination was accounted for as a common control transaction with respect to AleAnna Energy which is akin to a reverse recapitalization. This conclusion was based on the fact that Nautilus Resources LLC (“Nautilus”) had a controlling financial interest in AleAnna Energy prior to the Business Combination and has a controlling financial interest in AleAnna, which includes AleAnna Energy as a wholly owned subsidiary. The net assets of SPAC are stated at their historical carrying amounts with no goodwill or intangible assets recognized in accordance with the accounting principles generally accepted in the United States of America (“GAAP”). The Business Combination with respect to AleAnna Energy was not treated as a change in control primarily due to Nautilus receiving the controlling voting stake in AleAnna and the ability of Nautilus to nominate the full board of directors and management of AleAnna.

Under a reverse recapitalization, SPAC is treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination is treated as the equivalent of AleAnna Energy issuing stock for the net assets of SPAC, accompanied by a recapitalization.

We incurred $9.5 million in transaction costs related to the Business Combination. Approximately $0.6 million of these costs were recorded as a reduction to additional paid-in capital, up to the amount of cash proceeds received in the transaction. Of the remaining $8.9 million, approximately $0.5 million represented prepaid directors and officers insurance premiums that were recorded to other assets in the consolidated balance sheet, and $8.4 million represented legal, accounting, consulting and advisory fees which were recorded as Business Combination transaction expenses in the consolidated statement of operations and comprehensive loss.

Recent Developments

Gradizza Concession – Regional Intesa Approval

On August 6, 2025, AleAnna reached an agreement with the Emilia Romagna Region (the “Intesa”) in support of its pending application for a production concession related to the Gradizza field. This represents one of two major regulatory approvals required prior to first production. The second required approval—authorization from the Federal Ministry—remains pending.

AleAnna holds a 100% working interest in the Gradizza field and will serve as operator. If and when a production concession is granted, Gradizza is expected to become the Company’s first operated producing asset. According to the Company’s reserve report as of December 31, 2024, Gradizza contains 380 MMcf of proved reserves.

First Production at Longanesi

On March 13, 2025, AleAnna achieved a key milestone with the first production from its working interest in five wells in the Longanesi field, and the field reached sustained maximum production during the second quarter of 2025. The Company began recognizing revenue and related expenses, including depreciation and depletion, associated with Longanesi production in the second quarter of 2025.

In connection with the Longanesi start-up in May 2025, AleAnna issued a $3.1 million bank guarantee to secure its contingent consideration obligation to Enel. The guarantee required $1.2 million in cash collateral, which was classified as restricted cash as of September 30, 2025. The collateral may be used to satisfy the contingent consideration liability as payments become due.

Gas Sale Agreement

On October 29, 2024, we entered into a gas sale agreement (“GSA”) with Shell Energy Europe Limited (“SEEL”), under which SEEL became the exclusive buyer of our share of the natural gas produced from the Longanesi field net of (i) any consumption and/or losses incurred in the transport, treatment and compression of gas before delivery; (ii) any volume to be allocated for regulated royalties auctions, if applicable; and (iii) any other volume contractually allocated to other parties before August 31, 2022.

Key Factors Affecting our Performance, Prospects and Future Results

We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including competition from other carbon-based and non-carbon-based fuel producers, regulatory hurdles posed by the Italian government, and other factors. We believe the factors described below are key to our success.

Continued Development of Conventional Natural Gas Projects

As previously discussed, we and Padana achieved first production of the five wells in the Longanesi field in March 2025 through use of a temporary processing facility. The permanent processing facility is expected to be constructed over the remainder of 2025 and 2026.

We believe our achieving first production of the Longanesi field was a key milestone that will fuel our potential growth. We also have potentially viable discoveries in our Gradizza and Trava fields that are expected to achieve first production in the future.

Expanding Renewable Natural Gas Operations

In 2021, we launched a renewable natural gas development business focused on bringing to market carbon negative renewable natural gas derived from animal and agricultural waste. As previously discussed, the first three renewable natural gas assets were purchased between March 2024 and July 2024, with additional renewable natural gas projects expected to be purchased in the future.

We believe expanding the renewable natural gas business is another key to our potential growth and may unlock potential partnership or joint venture opportunities.

Key Components of Results of Operations

We are an early-stage company, and our historical results may not be indicative of our future results. Accordingly, the drivers of our future financial results, as well as the components of such results, may not be comparable to our historical results of operations or our future results of operations.

Revenue

During both the three and nine months ended September 30, 2025, we generated approximately $10.6 million and $13.9 million of revenue from sales of our share of natural gas from the Longanesi field. Results from the Longanesi field have been above expectations, with a stabilized production rate of approximately 28 million cubic feet per day (“MMcf/d”), which was achieved ahead of the anticipated 3-month ramp up timeline for this milestone.

During the three and nine months ended September 30, 2025, we generated approximately $0.6 million and $2.0 million, respectively, of revenue from electricity sales at two renewable natural gas assets acquired in July 2024 (the “Casalino” and “Campopiano” plants). The plant assets are fully permitted for production of electricity through conversion of crop and animal waste bio feedstocks. The plant assets are currently biomethane to electricity conversion assets. It is our intention to begin upgrading the sites to refine biomethane into renewable natural gas through upgrading units. Following the upgrade process to transition the assets to biomethane to renewable natural gas conversion, we expect to sell renewable natural gas to customer(s) by trucking or piping the renewable natural gas to the interstate pipeline system (SNAM). Until the plant assets are upgraded, we will actively source bio feedstocks for the assets in order to produce biomethane which will be processed through reciprocating generators in order to generate electricity which is then sold onto the grid through a metered interconnection. Casalino and Campopiano derive revenues from the sale of such electricity to the local state-owned electrical utility (Gestore dei Servizi Energetici SpA or “GSE”). Energy generation revenue is recognized as the electricity generated by the Casalino and Campopiano assets is delivered to GSE. Revenues are based on actual output and “on-the-spot” predetermined prices for small renewable energy producers.

Expenses

General and Administrative (G&A) Expense

G&A expenses consist of compensation costs for personnel in executive, finance, accounting, and other administrative functions. G&A expenses also include legal fees, professional fees paid for accounting, auditing and consulting services, and insurance costs. As a newly public company, we expect that we will incur higher G&A expenses for public company costs such as compliance with the regulations of the Securities and Exchange Commission (the “SEC”) and the Nasdaq Capital Market.

Cost of Revenues

Cost of revenues primarily consists of biofeedstock purchased by the RNG Subsidiaries. This feedstock fuels the anaerobic digesters (“ADs”), which produce biomethane that is then converted to electricity and sold onto the grid.

Lease Operating Expenses

Lease operating expenses reflect ongoing costs related to the Longanesi field which commenced production in the second quarter of 2025. Such costs are passed down to us by the Longanesi field operator, Pradana, and include accrued royalties payable to the Italian government, pipeline fees, repairs and maintenance, and other field-related costs.

Depreciation and Depletion

Depreciation includes expense related to the Casalino and Campopiano renewable plant assets, which is recorded on a straight-line basis over the estimated useful lives of the assets. It also includes depreciation of lease and well equipment at the Longanesi field, which is calculated using the units-of-production method based on estimated proved developed reserves.

Depletion reflects the systematic allocation of the capitalized costs of our natural gas properties over the estimated proved developed reserves on a units-of-production basis. These costs include acquisition, exploration, and development expenditures associated with the Longanesi field. Depletion expense fluctuates based on production volumes and changes in our reserve estimates.

Income Tax Effects

AleAnna’s income tax consequences have been reflected in its consolidated financial statements in accordance with ASC 740, Income Taxes. Despite the start of Longanesi production, given AleAnna’s history of losses, and because future production remains uncertain, a full valuation allowance was applied against deferred tax assets as of September 30, 2025 and 2024.

We are also subject to a Valued-Added Tax (“VAT”), a broadly-based consumption tax assessed on the value added to goods and services. VAT generally applies to most goods and services bought and sold within the EU. In certain cases, including cross-border sales to business customers and sales of biogas within Italy, we are not required to collect VAT on revenues. To date, we have incurred higher VAT on purchases (input VAT) than we have collected on sales (output VAT), resulting in a net VAT refund receivable. As of September 30, 2025 and December 31, 2024, we had VAT receivables of $8.5 million and $6.8 million, respectively. Under Italian tax law, VAT receivables may be used to offset other tax liabilities, including payroll taxes, income taxes, and other taxes payable to the Italian government.

Operations

Our net income attributable to common stockholders was $3.3 million and $1.7 million for the three and nine months ended September 30, 2025, respectively, as compared to net loss attributable to common stockholder of $1.1 million and $158.4 million for the same periods in 2024. As of September 30, 2025 and December 31, 2024, we had an accumulated deficit of $189.4 million and $191.0 million, respectively. The majority of these accumulated losses stem from costs associated with the Longanesi field drilling and development, including asset impairments from previous years, as well as seismic imaging, exploratory costs for other conventional natural gas prospects, and general and administrative expenses. The accumulated deficits also include historical deemed dividends to the redemption value of AleAnna Energy’s previous Class 1 Preferred Units (exchanged for Class A and Class C common stock in connection with the Business Combination) based on the redemption features of those units and the related accounting requirements. See “Note 10 — Equity” to the audited condensed consolidated financial statements for further details. We expect to continue to incur substantial expenses related to our operations, exploration, and development activities, including pre-commercialization efforts as we continue our development of, and seek regulatory approval for, our discoveries and exploration prospects. Since inception, we have incurred net losses annually. We achieved quarterly net income for the first time during the second quarter of 2025. We achieved net income during the three and nine months ended September 30, 2025 and 2024. We expect to continue sustained profitability.

Results of Operations

Comparison of the three and nine months ended September 30, 2025 and 2024

	For the Three Months Ended September 30,						Dollar			Percentage
	2025			2024			Change			Change

Revenues	$	11,224,868		$	648,328		$	10,576,540			1631	%

Operating expenses:
Cost of revenues	$	2,155,189		$	538,607		$	1,616,582			300	%
Lease operating expense		654,092			-			654,092			NM
General and administrative		2,071,051			1,497,357			573,694			38	%
Depreciation and depletion		582,604			51,311			531,293			1035	%
Accretion of asset retirement obligation		33,318			33,310			8			0	%
Total operating expenses		5,496,253			2,120,585			3,375,668			159	%

Operating income (loss)		5,728,615			(1,472,257	)		7,200,872			489	%

Other income:
Interest and other income		146,655			396,200			(249,545	)		-63	%
Total other income		146,655			396,200			(249,545	)		-63	%

Income (loss) before income taxes		5,875,269			(1,076,057	)		6,951,326			646	%
Income tax expense		(556,592	)		-			(556,592	)		NM
Net income (loss)		5,318,677			(1,076,057	)		6,394,734			594	%
Net loss (income) attributable to noncontrolling interests		(2,004,779	)		-			(2,004,779	)		NM
Net income (loss) attributable to Class A Common stockholders or holders of Common Member Units	$	3,313,898		$	(1,076,057	)	$	4,389,955			408	%

Other comprehensive income (loss)
Currency translation adjustment		716,316			2,163,984			(1,447,668	)		-67	%
Comprehensive income (loss)		6,034,993			1,087,927			4,947,066			455	%
Comprehensive income attributable to noncontrolling interests		(2,729,530	)		-			(2,729,530	)		NM
Total comprehensive income (loss) attributable to Class A Common stockholders	$	3,305,463		$	1,087,927		$	2,217,536			204	%

	For the Nine Months Ended September 30,						Dollar			Percentage
	2025			2024			Change			Change

Revenues	$	15,899,878		$	648,328		$	15,251,550			2352	%

Operating expenses:
Cost of revenues	$	3,295,105		$	538,607		$	2,756,498			512	%
Lease operating expense		1,748,500			-			1,748,500			NM
General and administrative		7,185,948			4,473,833			2,712,115			61	%
Depreciation and depletion		885,140			51,311			833,829			1625	%
Accretion of asset retirement obligation		98,519			99,930			(1,411	)		-1	%
Total operating expenses		13,213,212			5,163,681			8,049,531			156	%

Operating income (loss)		2,686,666			(4,515,353	)		7,202,019			160	%

Other income:
Interest and other income		538,291			1,325,660			(787,369	)		-59	%
Change in fair value of derivative liability		-			173,177			(173,177	)		-100	%
Total other income		538,291			1,498,837			(960,546	)		-64	%

Income (loss) before income taxes		3,224,957			(3,016,516	)		6,241,473			207	%
Income tax expense		(600,987	)		-			(600,987	)		NM
Net income (loss)		2,623,970			(3,016,516	)		5,640,486			187	%
Deemed dividend to Class 1 Preferred Units redemption value		-			(155,423,177	)		155,423,177			100	%
Net loss (income) attributable to noncontrolling interests		(967,268	)		-			(967,268	)		NM
Net income (loss) attributable to Class A Common stockholders or holders of Common Member Units	$	1,656,702		$	(158,439,693	)	$	160,096,395			101	%

Other comprehensive income (loss)				$	-
Currency translation adjustment		4,797,503			1,311,160			3,486,343			266	%
Comprehensive income (loss)		7,421,473			(1,705,356	)		9,126,829			535	%
Comprehensive income attributable to noncontrolling interests		(3,286,011	)		-			(3,286,011	)		NM
Total comprehensive income (loss) attributable to Class A Common stockholders	$	4,135,462		$	(1,705,356	)	$	5,840,818			342	%

Revenues and Cost of Revenues

During the three and nine months ended September 30, 2025, our revenue was earned through sales of our share of natural gas production from the Longanesi field and from electricity generation and sales at the Casalino and Campopiano renewable natural gas plants. Cost of revenues from sales of electricity consists of feedstock costs, direct labor and overhead necessary to produce RNG and generate electricity. Cost of revenues from sales of natural gas consists of gas tariffs and royalties, as well as rent expense.

General and Administrative (G&A) Expenses

General and administrative expenses consist of salaries and benefits, outside professional services including legal, human resources, audit and accounting services, and development stage expenses. We expect to continue to incur expenses to support operations as a public company, including expenses related to existing and future compliance with rules and regulations of the SEC and the Nasdaq, insurance expenses, investor relations, audit fees, professional services and general overhead and administrative costs.

General and administrative expenses increased by $0.6 million or 38% and $2.7 million or 61% for the three and nine months ended September 30, 2025, compared to same periods in 2024. The increases were primarily due to increases in legal, audit and consulting fees to support public company operations.

Lease Operating Expenses and Depreciation and Depletion

Refer to the descriptions of lease operating expenses and depreciation and depletion provided in the “Expenses” section above. As of September 30, 2024, the Longanesi field had not commenced production. The Casalino and Campopiano plants were acquired during the third quarter of 2024. Accordingly, period-over-period comparisons for these expense categories are not meaningful.

Contingent Consideration Liability

As of September 30, 2025 and December 31, 2024, the contingent consideration liability was recorded at $28.1 million and $25.0 million, respectively. The estimate of the contingent consideration liability was determined based on inputs including the following as of September 30, 2025 and December 31, 2024: the intercontinental exchange futures prices for European natural gas, Euro to USD exchange rates of 1.17 and 1.04, respectively, and management’s future expected annual Longanesi production. We are required to make formulaic deferred consideration payments effectively equating to 20% to 50% of revenue above certain European natural gas threshold prices. The calculation and timing of such payments are primarily driven by future expected Longanesi production, as modeled by DeGolyer, as well as forward European natural gas prices. While the timing and quantities of expected Longanesi production were unchanged from December 31, 2024 to September 30, 2025, and we had fully accrued the total capped Euro amount of the liability, average annual European natural gas forward prices declined slightly.

Since the total capped Euro-denominated liability was recorded as of September 30, 2025 and December 31, 2024, and September 30, 2024 and December 31, 2023, any changes in the USD-equivalent amount were entirely due to foreign exchange rate fluctuations. As such, these changes were included in currency translation adjustment for the three and nine months ended September 30, 2025 and 2024.

Interest and Other Income (Expenses)

Interest and other income (expenses) primarily includes interest earned on cash and cash equivalents. Interest and other income decreased by $0.2 million or 63% and $0.8 million or 59% during the three and nine months ended September 30, 2025 compared to the same periods in 2024, primarily due to higher interest (higher rates) earned on larger average cash balances during the 2024 periods compared to the 2025 periods presented.

Change in Fair Value of Derivative Liability

The change in the fair value of derivative liability related to the Class 1 Preferred Units was nil during the three and nine months ended September 30, 2025, compared to nil during the three months ended September 30, 2024 and $0.2 million during the nine months ended September 30, 2024. The fair value gain recorded during the nine months ended September 30, 2024 (representing a decrease in the liability) was primarily due to a higher liquidation threshold which was driven by capital contributions made during the first quarter of 2024 through the Class 1 Preferred Units. The derivative liability was reduced from $0.2 million as of December 31, 2023 to zero during the first quarter of 2024 and was ultimately derecognized in conjunction with the Business Combination.

Currency Translation Adjustment

For the purpose of presenting consolidated financial statements, the assets and liabilities of our Euro operations are translated to USD at the exchange rate on the reporting date. The income and expenses are translated using average exchange rates. Foreign currency differences that arise on translation for consolidated purposes are recognized as a currency translation adjustment in other comprehensive loss on the consolidated statements of operations and comprehensive loss.

The currency translation adjustment decreased by $1.7 million and increased by $3.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The decrease and increase were primarily driven by fluctuations of the exchange rates between the Euro and the U.S. Dollar as well as the level of our activities. This change was primarily driven by fluctuations in the Euro to U.S. Dollar exchange rates and the level of our Euro-denominated activities. The spot rate strengthened from December 31, 2024 to September 30, 2025, and the average exchange rates were higher during the 2025 periods, resulting in larger positive currency translation adjustments relative to the 2024 periods.

Segment Results

During the second quarter of 2025, in connection with the commencement of production at the Longanesi field, the Company’s evaluation of operating results between conventional and renewable operations became more relevant to the chief operating decision maker, resulting in further disaggregation of the Company’s single reportable segment. As a result, as of September 30, 2025, we determined that we have two operating segments, each of which also qualifies as a reportable segment, based on the manner in which the chief operating decision maker (“CODM”)—the Company’s Executive Director and Chief Executive Officer, collectively—reviews financial information to assess performance and allocate resources.

●

Reconciling items include items not directly attributable to either reportable segment. These include corporate financing and investing activities, as well as administrative functions that support the Company’s overall operations. These items are presented in the segment reconciliation but does not constitute a reportable segment.

The CODM evaluates segment performance primarily using segment operating income (loss), which is consistent with the presentation in the Company’s consolidated statements of operations. The CODM monitors revenues and operating expenses by segment for purposes of strategic decision-making and resource allocation, including the evaluation of the timing and amount of future investment in, or development of, the conventional and renewable reportable segments. The expense categories reviewed by the CODM are consistent with those presented in the consolidated statements of operations and in the segment operating results presented below.

The three and nine months ended September 30, 2025 reflect the revenue and expense categories noted above in the consolidated Results of Operations. For the three and nine months ended September 30, 2024, the Company had no revenues, immaterial RNG assets, and minimal operating expenses outside of corporate general and administrative expenses. The vast majority of natural gas development activities were capitalized prior to the second quarter of 2025.

Selected financial information by segment is presented in the tables below:

	Three Months Ended September 30, 2025
	Conventional		Renewable			Total
Revenues	$	10,577,395	$	647,473		$	11,224,868

Less:
Cost of revenues	$	1,348,779	$	806,410
Lease operating expense		654,092		-
Segment general and administrative		674,287		684,462
Depreciation and depletion		492,696		89,908
Accretion of asset retirement obligation		33,318		-
Segment operating income (loss)	$	7,374,224	$	(933,307	)	$	6,440,917
Reconciling items:
Less: Corporate general and administrative						$	712,302
Interest and other income							146,655
Income before income taxes						$	5,875,269

Segment assets	$	64,906,177	$	15,666,120		$	80,572,297
Corporate and other assets							19,487,373
Total assets						$	100,059,670

	Three Months Ended September 30, 2024
	Conventional			Renewable			Total
Revenues	$	-		$	648,328		$	648,328

Less:
Cost of revenues	$	-		$	538,607
Segment general and administrative		920,203			451,372
Depreciation and depletion		-			51,311
Accretion of asset retirement obligation		33,310			-
Segment operating income (loss)	$	(953,513	)	$	(392,962	)	$	(1,346,476	)
Reconciling items:
Less: Corporate general and administrative							$	125,781
Interest and other income								396,200
Income (loss) before income taxes							$	(1,076,057	)

Segment assets	$	41,333,513		$	12,995,721		$	54,329,234
Corporate and other assets								39,940,436
Total Assets							$	94,269,670

	Nine Months Ended September 30, 2025
	Conventional		Renewable			Total
Revenues	$	13,893,184	$	2,006,695		$	15,899,878

Less:
Cost of revenues	$	1,348,779	$	1,946,326
Lease operating expense		1,748,500		-
Segment general and administrative		2,544,156		1,048,022
Depreciation and depletion		628,150		256,989
Accretion of asset retirement obligation		98,519		-
Segment operating income (loss)	$	7,525,079	$	(1,244,643	)	$	6,280,435
Reconciling items:
Less: Corporate general and administrative						$	3,593,769
Interest and other income							538,291
Income (loss) before income taxes						$	3,224,957

Segment assets	$	64,906,177	$	15,666,120		$	80,572,297
Corporate and other assets							19,487,373
Total assets						$	100,059,670

	Nine Months Ended September 30, 2024
	Conventional			Renewable			Total
Revenues	$	-		$	648,328		$	648,328

Less:
Cost of revenues	$	-		$	538,607
Segment general and administrative		1,996,832			916,002
Depreciation and depletion					51,311
Accretion of asset retirement obligation		99,930			-
Segment operating income (loss)	$	(2,096,762	)	$	(857,592	)	$	(2,954,354	)
Reconciling items:
Less: Corporate general and administrative							$	1,560,999
Interest and other income								1,325,660
Change in fair value of derivative liability								173,177
Income (loss) before income taxes							$	(3,016,516	)

Segment assets	$	41,333,513		$	12,995,721		$	54,329,234
Corporate and other assets								39,940,436
Total Assets							$	94,269,670

Liquidity, Capital Resources and Operations

We have begun generating revenue from our operations. We had an accumulated deficit of $189.4 million as of September 30, 2025. We had $31.2 million in unrestricted cash and cash equivalents on September 30, 2025. The Company’s continuing operations, as intended, are dependent upon its ability to generate cash flows or obtain additional financing. Between January 2024 and May 2024, prior to the Business Combination, we received an aggregate of $62.1 million in capital contributions from AleAnna Energy members resulting in the issuance of 62,100 Class 1 Preferred Units, to fund operating costs, capital expenditures, Business Combination related transaction expenses, and to provide working capital to meet our liabilities and commitments as they become due. We also received approximately $1.1 million from exercises of Public Warrants between January 2025 and May 2025. In addition, we are exploring Resource Backed Loan (“RBL”) financing, renewable natural gas project loan products and other financing arrangements with several financial institutions; however, there is no guarantee that such financing will be available to us. As a normal part of our business, depending on market conditions, we may from time to time consider opportunities to issue equity or debt securities to raise additional capital. Changes in our operating plans, lower than anticipated revenues, increased expenses, acquisitions or other events may cause us to seek additional debt or equity financing in future periods. There can be no guarantee that financing will be available on acceptable terms or at all.

Presently, Padana is the operator of the Longanesi field under a Unitized Operating Agreement, and other companies in the future may operate some of the properties in which we have an interest. The failure of an operator of our wells or joint venture participant to adequately perform operations, an operator’s breach of the applicable agreements or an operator’s failure to act in ways that are in our best interest could reduce our production and revenues.

To mitigate operator risks, we monitor the operational risks, credit risk, financial position and liquidity of Padana. Operational risks are monitored and acted on through: (i) periodic meetings with Padana, through a formal committee known as the “Technical Committee”, to examine upcoming activities and discuss questions and concerns, (ii) through the receipt and analysis of daily reports, (iii) through requesting unscheduled calls with Padana where areas of concern are identified, and (iv) through occasional site visits. Further, Padana’s credit risk, financial position, and liquidity are periodically evaluated through review of the financial condition of Padana’s parent organization, Gas Plus S.p.A., which is a publicly-traded company on the Italian Stock Exchange (Euronext Milan). We are able to continuously monitor financial health of Gas Plus S.p.A. through exchange-required public disclosures, including half-annual and annual financial statements, corporate presentations, and press releases.

Cash Flows

The following table includes our cash flow data for the nine months ended September 30, 2025 and 2024:

	For the Nine Months Ended September 30,
	2025		2024
Consolidated Statement of Cash Flows Data:
Net cash generated (used) in operating activities		6,411,317		(6,920,138	)
Net cash used in investing activities

SEC Form 10-Q filed by AleAnna Inc.