Core Insights - Aemetis, Inc. has received approval from the California Air Resources Board for seven dairy digesters under the Low Carbon Fuel Standard, effective January 1, 2025, with an average carbon intensity of -384 [1][2] - The approval is expected to double the number of LCFS credits generated by these digesters, enhancing Aemetis' renewable natural gas production capabilities [2] - Aemetis is actively expanding its renewable energy projects, including new dairy digesters, an ethanol plant, a carbon sequestration project, and a sustainable aviation fuel facility [3][4] Group 1: Company Developments - The seven approved pathways will allow Aemetis to immediately increase its LCFS credit quantity for RNG produced in the first quarter of 2025 [2] - Aemetis operates eleven digesters and is completing a four-dairy cluster digester, with additional pathway filings expected to be approved quickly [2] - The company is focused on innovative technologies to replace petroleum products and reduce greenhouse gas emissions [4] Group 2: Project Highlights - New dairy digesters are projected to generate over 1 million MMBtu per year of renewable natural gas [3] - The Keyes ethanol plant's mechanical vapor recompression system is anticipated to generate an additional $32 million in annual cash flow starting in 2026 [3] - The Riverbank carbon sequestration project aims to inject 1.4 million tons of CO2 underground annually [3] - Aemetis is developing a biorefinery in California for sustainable aviation fuel and renewable diesel, utilizing renewable hydrogen and hydroelectric power [4]

Company Overview - Aemetis, Inc. reported total revenues of $42.9 million in Q1 2025, a decline from $72.6 million in the same period last year, primarily due to shifts in timing for new government biodiesel contracts in India [1] - The net loss for the quarter was $24.5 million, relatively flat compared to a net loss of $24.2 million in Q1 2024, reflecting ongoing investments in growth initiatives and higher interest expenses [1] - The company ended the quarter with $0.5 million in cash, down from $0.9 million at year-end, although liquidity was supported by $19.0 million in cash proceeds from the sale of transferable investment tax credits [1] Industry Developments - Federal and state-level policy developments include a nationwide move from E10 to year-round E15 ethanol blends, expanding low-carbon fuel standards, and the IRS establishing provisional emissions rates for dairy RNG and 45Z production tax credits [6] - Aemetis RNG is gaining traction with operational production facilities, reporting a 140% year-over-year revenue increase in Q1 2025, with 19 dairy digesters operational and 26 expected to be online by year-end [6] - The ethanol and India biofuels segments continue to perform well due to long-term infrastructure upgrades and favorable policy support, despite short-term pricing pressures; ethanol operations benefit from completed solar microgrid upgrades and the development of the MVR system, while India biofuels grew by 27% in Q1 and is preparing for a potential IPO [6]

Core Points - Aemetis, Inc. is actively engaging with U.S. government officials to advocate for the One Big Beautiful Bill Act, which aims to support domestic energy and rural communities through Section 45Z production tax credits for biofuels and biogas [2][3] - The Section 45Z production tax credit was established in 2022 and is set to be modified to extend its availability from 2027 to 2031, require domestic feedstocks, and eliminate the indirect land use penalty for biofuels [2][3] - Aemetis is expanding its biogas production capabilities, with plans to increase the number of operational dairies from 12 to 16 this summer, contributing to the production of renewable natural gas [3][4] Company Overview - Aemetis is headquartered in Cupertino, California, and focuses on renewable natural gas and renewable fuels, operating a biogas digester network and pipeline system to convert dairy waste into renewable natural gas [5] - The company operates a 65 million gallon per year ethanol production facility in California and an 80 million gallon per year biodiesel production facility in India [5] - Aemetis is developing a sustainable aviation fuel and renewable diesel biorefinery in California, utilizing renewable hydrogen and hydroelectric power [5] Financial Impact - The expansion of dairy renewable natural gas production is expected to generate over 1 million MMBtu per year [4] - The Keyes ethanol plant's mechanical vapor recompression system is projected to increase annual cash flow by $32 million starting in 2026 [4] - The Riverbank carbon sequestration project aims to inject 1.4 million tons of CO2 underground annually [4]

Core Points - Aemetis, Inc. is actively engaging with U.S. government officials to advocate for support of domestic energy and rural communities through the federal tax bill, specifically focusing on Section 45Z production tax credits for biofuels and biogas [3][4] - The Section 45Z production tax credit, established in 2022 and effective from January 2025, aims to extend credit availability from 2027 to 2031, mandate the use of domestic feedstocks, and remove the indirect land use penalty for biofuels [5][6] - Aemetis is expanding its biogas production capabilities, with plans to increase renewable natural gas output to over 1 million MMBtu per year and enhance cash flow through various projects, including a mechanical vapor recompression system at its Keyes ethanol plant [7][8] Company Overview - Aemetis is headquartered in Cupertino, California, and focuses on renewable natural gas and renewable fuels, operating a biogas digester network and ethanol production facility [9] - The company operates a 65 million gallon per year ethanol production facility in California and an 80 million gallon per year biodiesel production facility in India, while also developing a sustainable aviation fuel and renewable diesel biorefinery [9]

Core Viewpoint - Aemetis, Inc. has signed a $27 million agreement with Centuri Holdings to construct biogas cleanup systems for 15 dairy digesters, which will enhance the production of renewable natural gas (RNG) from dairy waste [2][3]. Group 1: Agreement and Impact - The agreement with Centuri will facilitate the rapid scaling of dairy digesters, enabling Aemetis Biogas to produce RNG for a total of 50 dairies [3]. - Aemetis Biogas plans to have 16 dairies operational this summer as part of the Central Digester Project near Modesto, California, which includes a biogas pipeline and a production facility delivering RNG into the PG&E utility gas pipeline [3]. Group 2: Strategic Relationship - Aemetis is expanding its strategic relationship with Centuri, which includes plans for construction management and pipe assembly for future energy efficiency and carbon sequestration projects [4]. - Centuri's expertise in utility distribution and renewable natural gas projects aligns well with Aemetis' goals, adding significant value to upcoming projects [5]. Group 3: Renewable Energy Projects - Aemetis aims to generate over 1 million MMBtu of RNG from the 50 dairies involved in the project [6]. - Other projects include a Keyes ethanol plant expected to generate $32 million in annual cash flow starting in 2026, and a carbon sequestration project to inject 1.4 million tons of CO2 per year [6]. - Aemetis is also developing a sustainable aviation fuel and renewable diesel plant, which has received necessary permits and approvals [6]. Group 4: Company Overview - Aemetis is focused on the operation, acquisition, development, and commercialization of technologies that replace petroleum products and reduce greenhouse gas emissions [7]. - The company operates a biogas digester network and pipeline system in California, converting dairy waste gas into RNG, and has ethanol production facilities in both California and India [8].

Financial Data and Key Metrics Changes - Revenues decreased to $42.9 million from $72.6 million year-over-year, primarily due to delayed biodiesel contracts in India [4] - Operating loss was $15.6 million, reflecting a $1.6 million increase in SG&A expenses, mainly from legal and transaction costs related to the sale of investment tax credits [5] - Net loss remained roughly flat at $24.5 million compared to Q1 last year [5] - Cash at the end of the quarter was $500,000 after $15.4 million of debt repayment and $1.8 million invested in carbon intensity reduction and dairy RNG expansion [6] Business Line Data and Key Metrics Changes - Dairy RNG business is scaling gas production, expecting to reach 550,000 MMBtu capacity this year and grow to 1,000,000 MMBtu annually by the end of 2026 [8] - Ethanol plant revenue increased by $1.7 million due to stronger ethanol pricing, with expectations for margin expansion from recent EPA approval of summer E15 blending [9] - RNG volumes increased by 17% year-over-year [5] Market Data and Key Metrics Changes - The California Low Carbon Fuel Standard (LCFS) amendments are expected to significantly increase credit prices as supply tightens [12] - Aemetis anticipates generating over $60 million annually from LCFS credits once provisional pathways are approved [12] - The company expects a significant ramp in RNG revenues starting in Q3, driven by LCFS pathway approvals and volume growth [16] Company Strategy and Development Direction - Aemetis is preparing for an IPO of its India subsidiary, targeting late 2025 or early 2026, while evaluating expansion into RNG and ethanol production in India [10] - The company is focused on diversifying its revenue streams through sustainable aviation fuel and carbon capture projects [11] - Aemetis aims to benefit from federal and state policies that enhance the value of its low carbon fuel operations [11] Management's Comments on Operating Environment and Future Outlook - Management expects multiple revenue streams from India, LCFS credits, and federal tax incentives to ramp up as the year progresses, positioning the company for a stronger second half of 2025 [6] - The company anticipates a significant increase in LCFS revenues due to the approval of dairy pathways and the 45Z production tax credit starting January 2025 [22] - Management expressed confidence in the recovery of India revenues with resumed biodiesel shipments and improving ethanol margins supported by policy tailwinds [16] Other Important Information - Aemetis received $19 million in cash proceeds from the sale of investment tax credits in Q1 2025 [14] - The company is actively working on financing structures for its sustainable aviation fuel project and carbon capture initiatives [10][11] Q&A Session Summary Question: Impact of tariffs on RNG production for 2025 and 2026 - Management indicated that the RNG value chain is primarily domestic, with no direct impact anticipated from tariffs [18] Question: Improvement in the balance sheet and debt outlook for 2025 - Management highlighted the repayment of $15.5 million of debt in Q1 and anticipated continued repayments through the year, supported by increased LCFS revenues and an upcoming India IPO [21] Question: Dairy RNG OpEx trends and long-term targets - Management expects a dramatic decrease in OpEx per MMBtu as production increases, with seasonality also affecting production levels [27][28] Question: Ethanol segment's outlook for EBITDA positivity - Management noted that the E15 approval and increased demand during summer could lead to improved margins, with a generally positive trend expected [30][31] Question: India business IPO and potential expansion into RNG and ethanol - Management confirmed plans for the India IPO and expressed interest in exploring RNG and ethanol opportunities in the Indian market [36][39] Question: Opportunities for cheaper debt from EB-5 financing - Management confirmed approval for $200 million in EB-5 financing with net interest costs below 3%, indicating a proactive approach to securing investors [44] Question: Progress on 45Z production tax credit - Management discussed the pending appointment of the head of tax policy at Treasury and the potential for significant increases in RNG value based on provisional emissions rates [52][54]

Financial Data and Key Metrics Changes - Revenues decreased to $42.9 million from $72.6 million year-over-year, primarily due to delayed biodiesel contracts in India [4] - Operating loss was $15.6 million, reflecting a $1.6 million increase in SG&A expenses, mainly from legal and transaction costs related to the sale of investment tax credits [5] - Net loss remained flat at $24.5 million compared to Q1 last year [5] - Cash at the end of the quarter was $500,000 after $15.4 million of debt repayment and $1.8 million invested in carbon intensity reduction and dairy RNG expansion [6] Business Line Data and Key Metrics Changes - The Quays ethanol plant experienced a revenue increase of $1.7 million due to stronger ethanol pricing [5] - RNG volumes increased by 17% year-over-year [5] - The dairy RNG business is scaling gas production, expecting to reach 550,000 MMBtu capacity this year and grow to 1,000,000 MMBtu annually by the end of 2026 [8] Market Data and Key Metrics Changes - The California Low Carbon Fuel Standard (LCFS) amendments are expected to tighten credit supply and increase credit prices significantly [12] - Aemetis anticipates generating over $60 million annually from LCFS credits once provisional pathways are approved [12] Company Strategy and Development Direction - Aemetis is preparing for an IPO of its India subsidiary targeting late 2025 or early 2026, while evaluating expansion into RNG and ethanol production in India [10] - The company is focused on sustainable aviation fuel and carbon capture projects, with significant regulatory support expected [11] - Aemetis plans to monetize tax credits and advance development projects, positioning for growth and improved cash flow in the second half of 2025 and into 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expects multiple revenue streams from India, LCFS credits, and federal tax incentives to ramp up as the year progresses, leading to a stronger second half of 2025 [6] - The company is optimistic about the impact of E15 ethanol blend expansion and the potential for increased domestic demand for ethanol [15] - Management highlighted the importance of the 45Z production tax credit starting January 2025, which is expected to significantly enhance revenue and debt repayment capabilities [22] Other Important Information - Aemetis received $19 million in cash from the sale of investment tax credits in Q1 2025, with expectations for additional sales throughout the year [14] - The company is actively working on financing structures for its sustainable aviation fuel project and awaiting clarity on tax credits to support project financing [10] Q&A Session Summary Question: Impact of tariffs on RNG production for 2025 and 2026 - Management indicated that the RNG value chain is primarily domestic, with no anticipated direct impact from tariffs [18] Question: Improvement in the balance sheet and debt outlook for 2025 - Management expects to continue paying down debt, with significant increases in LCFS revenues anticipated from approved dairy pathways [21] Question: Long-term target for dairy RNG OpEx - Management expects a dramatic decrease in OpEx per MMBtu as production increases, with seasonality also affecting costs [27] Question: California ethanol segment's EBITDA outlook - Management is optimistic about the potential for an EBITDA positive quarter, driven by E15 approval and improving ethanol margins [29] Question: Opportunities for RNG and ethanol in India - Management elaborated on the strong market position in India, with plans for diversification into RNG and ethanol production [36] Question: Potential hiccups due to geopolitical issues in India - Management stated that current geopolitical tensions have had no impact on operations or supply chains [41] Question: Opportunities for cheaper debt from EB-5 financing - Management confirmed approval for $200 million in EB-5 financing, which is expected to be a cost-effective funding source [45] Question: Progress on 45Z tax credits and timing - Management provided updates on the expected timeline for final rules from Treasury regarding 45Z tax credits [51] Question: Ethanol and corn crush margins outlook - Management expressed a positive outlook for ethanol margins, especially with the potential adoption of E15 across more states [60]

Financial Data and Key Metrics Changes - Revenues decreased to $42.9 million from $72.6 million year-over-year, primarily due to delayed biodiesel contracts in India [3] - Operating loss was $15.6 million, reflecting a $1.6 million increase in SG&A expenses, mainly from legal and transaction costs related to the sale of investment tax credits [4] - Net loss remained roughly flat at $24.5 million compared to Q1 last year [4] - Cash at the end of the quarter was $500,000 after $15.4 million of debt repayment and $1.8 million invested in carbon intensity reduction and dairy RNG expansion [5] Business Line Data and Key Metrics Changes - Dairy RNG business is scaling gas production, expecting to reach 550,000 MMBtu production capacity this year and grow to 1,000,000 MMBtu annually by the end of 2026 [5] - Ethanol plant revenue increased by $1.7 million due to stronger ethanol pricing, with expectations for margin expansion from recent EPA approval of summer E15 blending [4][6] - RNG volumes increased by 17% year-over-year [4] Market Data and Key Metrics Changes - The California Low Carbon Fuel Standard (LCFS) amendments are expected to significantly increase credit prices as supply tightens and demand increases [10] - Aemetis anticipates generating over $60 million annually from LCFS credits once provisional pathways are approved [10] Company Strategy and Development Direction - The company is preparing for an IPO of its India subsidiary, targeting late 2025 or early 2026, and evaluating expansion into RNG and ethanol production in India [7] - Aemetis is focused on sustainable aviation fuel projects and has received necessary permits for a 90 million gallon per year facility [8] - The company is positioned to benefit from federal and state policies enhancing the value of low carbon fuel operations [9] Management's Comments on Operating Environment and Future Outlook - Management expects multiple revenue streams from India, LCFS credits, and federal tax incentives to ramp up as the year progresses, positioning for a stronger second half of 2025 [5] - The company anticipates significant ramp-up in RNG revenues starting in Q3, driven by LCFS pathway approvals and volume growth [14] - Management expressed optimism regarding ethanol margins supported by policy tailwinds and reduced costs from the NVR project beginning in 2026 [14] Other Important Information - Aemetis received $19 million in cash proceeds from the sale of investment tax credits in Q1 2025 and expects additional sales in 2025 [12] - The company is actively working on marketing production tax credits, which will significantly increase its ability to pay down debt during 2025 and 2026 [23] Q&A Session Summary Question: Impact of tariffs on RNG production for 2025 and 2026 - Management indicated that the RNG value chain is primarily domestic, with no direct impact anticipated from tariffs [18] Question: Improvement in the balance sheet and debt outlook for 2025 - Management highlighted the repayment of $15.5 million of debt in Q1 and anticipated continued repayments through the year, supported by increased LCFS revenues and an upcoming IPO [21][22] Question: Dairy RNG OpEx trends - Management expects a dramatic decrease in OpEx per MMBtu as production increases, with current costs affected by startup phases and seasonal factors [28][29] Question: Ethanol segment EBITDA outlook - Management noted that ethanol margins are improving, driven by E15 approval and expected demand increases during the summer [30][32] Question: India business expansion and potential RNG and ethanol opportunities - Management confirmed ongoing exploration of RNG and ethanol opportunities in India, supported by government policies favoring these sectors [39][40] Question: Potential hiccups due to geopolitical issues in India - Management stated that current geopolitical tensions have not impacted their operations or supply chain [42] Question: Opportunities for cheaper debt from EB-5 financing - Management confirmed approval for $200 million in EB-5 financing with net interest costs below 3%, indicating a proactive approach to securing investors [46] Question: Update on 45Z tax credits and emissions rates - Management provided insights on the timing of final rules from Treasury and the potential for increased RNG value based on provisional emissions rates [55][56] Question: Ethanol fundamentals and E15 adoption - Management expressed optimism regarding the impact of E15 adoption in California and the overall positive outlook for ethanol margins [62][64]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I--FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Aemetis reported a Q1 2025 net loss of $24.5 million, with declining assets and improved operating cash flow, but faces substantial going concern doubts [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Key financial statements reveal Aemetis's Q1 2025 net loss, declining assets, and improved operating cash flow Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $499 | $898 | | Total current assets | $28,493 | $44,696 | | Total assets | $242,518 | $259,302 | | Total current liabilities | $174,601 | $143,968 | | Total liabilities | $523,213 | $523,230 | | Total stockholders' deficit | $(280,695) | $(263,928) | Consolidated Statements of Operations (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $42,886 | $72,634 | | Gross loss | $(5,080) | $(612) | | Operating loss | $(15,555) | $(9,462) | | Net loss | $(24,529) | $(24,231) | | Net loss per share (Basic & Diluted) | $(0.47) | $(0.58) | Consolidated Statements of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $160 | $(10,278) | | Net cash used in investing activities | $(1,825) | $(1,683) | | Net cash provided by financing activities | $1,252 | $10,603 | [Note 1: Business Overview](index=8&type=section&id=Note%201.%20General) Aemetis operates in renewable fuels, focusing on ethanol, dairy RNG, and biodiesel, with plans for SAF/RD and CCUS facilities - Aemetis is a renewable fuels company focused on producing low and negative carbon intensity fuels. Its operations are divided into three main segments[26](index=26&type=chunk) - **California Ethanol:** Operates a 65 million gallon/year ethanol plant in Keyes, CA, producing ethanol, animal feed, and CO₂[26](index=26&type=chunk) - **California Dairy Renewable Natural Gas (RNG):** Produces RNG from dairy waste via anaerobic digesters and a 36-mile pipeline, with plans for expansion[27](index=27&type=chunk) - **India Biodiesel:** Owns an 80 million gallon/year biodiesel plant in Kakinada, India, one of the largest in the country[28](index=28&type=chunk) - The company is also developing a Sustainable Aviation Fuel (SAF)/Renewable Diesel (RD) plant and a Carbon Capture and Underground Sequestration (CCUS) facility[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 5: Debt](index=12&type=section&id=Note%205.%20Debt) The company's significant debt, primarily with Third Eye Capital, includes a substantial current portion and a detailed repayment schedule Total Debt Composition (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt | $336,291 | $338,061 | | Less current portion | $(119,547) | $(90,534) | | Total long term debt | $216,744 | $247,527 | - A significant portion of the company's debt is with Third Eye Capital, secured by first-priority liens on nearly all North American assets. The debt facilities contain various covenants and cross-default provisions[48](index=48&type=chunk) Debt Repayment Schedule (in thousands) | Twelve Months ended March 31, | Repayments | | :--- | :--- | | 2026 | $119,547 | | 2027 | $167,263 | | 2028 | $4,412 | | 2029 | $3,579 | | 2030 | $1,406 | | Thereafter | $42,688 | [Note 7: Revenue](index=18&type=section&id=Note%207.%20Revenue) Total revenue declined significantly due to a sharp drop in India Biodiesel sales, partially offset by a slight increase in California Ethanol Revenue by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | California Ethanol | $37,748 | $36,089 | | California Dairy RNG | $2,443 | $3,792 | | India Biodiesel | $2,695 | $32,753 | | **Total** | **$42,886** | **$72,634** | - India Biodiesel revenue plummeted from **$32.8 million to $2.7 million YoY** due to a pause in purchases by government-owned Oil Marketing Companies. Sales in this segment for Q1 2025 consisted of glycerin and raw materials[62](index=62&type=chunk)[114](index=114&type=chunk) - California Ethanol revenue increased slightly due to higher ethanol prices, while California Dairy RNG revenue decreased due to lower sales of D3 RINs and LCFS credits[62](index=62&type=chunk) [Note 11 & 15: Biogas Preferred Financing & Subsequent Events](index=25&type=section&id=Note%2011.%20Aemetis%20Biogas%20LLC%20%E2%80%93%20Series%20A%20Preferred%20Financing) An amendment requires Aemetis Biogas LLC to redeem all outstanding Series A Preferred Units for $116.8 million by August 31, 2025, or convert to a new credit agreement - In May 2025, an amendment to the Series A Preferred Unit Purchase Agreement requires Aemetis Biogas LLC (ABGL) to redeem all outstanding units by August 31, 2025[79](index=79&type=chunk)[94](index=94&type=chunk) - The total redemption price is **$116.8 million**. If not redeemed, the obligation will convert into a new credit agreement maturing August 31, 2026, with an interest rate of the greater of prime + 10% or 16%[79](index=79&type=chunk)[94](index=94&type=chunk) [Note 16: Liquidity and Going Concern](index=31&type=section&id=Note%2016.%20Liquidity) Substantial doubt exists about the company's ability to continue as a going concern due to negative capital and operating losses, necessitating debt refinancing or lender cooperation - The financial statements were prepared assuming the company will continue as a going concern, but negative capital, operating losses, and reliance on its senior lender raise substantial doubt about this ability[95](index=95&type=chunk)[99](index=99&type=chunk) - To meet obligations over the next twelve months, the company needs to refinance debt or receive continued cooperation from its senior lender[95](index=95&type=chunk) - Management's strategies to improve liquidity include improving Keyes Plant efficiency, expanding the RNG business, a potential public offering of its India subsidiary, and raising additional debt and equity[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Management's Discussion and Analysis (MD&A)](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) MD&A highlights a 41% revenue decline due to India Biodiesel sales halt, widened gross loss, severe liquidity constraints, and ongoing going concern doubts [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenue declined 41% driven by India Biodiesel, while gross loss widened and operating expenses increased due to higher interest and SG&A Revenue Change by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | California Ethanol | $37,748 | $36,089 | $1,659 | 4.6% | | California Dairy RNG | $2,443 | $3,792 | $(1,349) | (35.6)% | | India Biodiesel | $2,695 | $32,753 | $(30,058) | (91.8)% | | **Total** | **$42,886** | **$72,634** | **$(29,748)** | **(41.0)%** | Gross Profit (Loss) by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 | Q1 2024 | Change ($) | | :--- | :--- | :--- | | California Ethanol | $(4,938) | $(5,658) | $720 | | California Dairy RNG | $305 | $2,210 | $(1,905) | | India Biodiesel | $(447) | $2,836 | $(3,283) | | **Total** | **$(5,080)** | **$(612)** | **$(4,468)** | - The decrease in India Biodiesel gross profit was due to a pause in production and sales to government OMCs. Shipments resumed in April 2025[114](index=114&type=chunk)[127](index=127&type=chunk) - Selling, general and administrative (SG&A) expenses increased **18.4% to $10.5 million**, primarily due to higher taxes, insurance, rent, utilities, and professional fees[128](index=128&type=chunk) - Interest expense and related fees increased significantly due to higher variable interest rates and larger debt balances[129](index=129&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces severe liquidity constraints with a low current ratio, relying heavily on its senior lender, despite positive operating cash flow from a tax credit sale Key Liquidity Metrics (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $499 | $898 | | Current assets | $28,493 | $44,696 | | Current liabilities | $174,601 | $143,968 | | Current Ratio | 0.16 | 0.31 | - The company is reliant on its senior lender, Third Eye Capital, for extensions on debt maturities, with significant amounts due in 2025 and 2026[133](index=133&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) - During Q1 2025, the company sold **2.4 million shares** through its at-the-market (ATM) stock sales program, generating net proceeds of **$5.1 million**[146](index=146&type=chunk) - Cash from operations was positive **$0.2 million**, a significant improvement from a **$10.3 million** use of cash in Q1 2024. This was primarily driven by a **$12.3 million** decrease in tax credit sale receivable (i.e., receipt of cash)[142](index=142&type=chunk)[143](index=143&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to material weaknesses in IT general controls and documentation, with remediation ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025[151](index=151&type=chunk) - The ineffectiveness is due to material weaknesses related to IT general controls and documentation, which were identified in the 2024 Form 10-K. Remediation plans are in progress[151](index=151&type=chunk)[153](index=153&type=chunk) [PART II - OTHER INFORMATION](index=42&type=section&id=PART%20II--OTHER%20INFORMATION) [Other Disclosures](index=42&type=section&id=Other%20Disclosures) The company reported no new legal proceedings or defaults, disclosed unregistered equity issuance, and a significant subsequent event regarding a **$116.8 million** biogas subsidiary redemption - No new legal proceedings were reported during the quarter[154](index=154&type=chunk) - The company issued warrants for **113,000 shares** to two subordinated lenders as part of a debt extension, which were subsequently exercised. This was exempt from registration as a non-public offering[156](index=156&type=chunk) - A subsequent event was filed regarding the Ninth Amendment to the Series A Preferred Unit Purchase Agreement, requiring Aemetis Biogas LLC to redeem all outstanding units for **$116.8 million** by August 31, 2025[160](index=160&type=chunk)

[Q1 2025 Financial & Operational Highlights](index=1&type=section&id=Aemetis%20Reports%20First%20Quarter%202025%20Financial%20Results) Aemetis reported Q1 2025 revenues of $42.9 million, a decrease due to India Biodiesel production halt, offset by Dairy RNG growth and tax credit sales Q1 2025 Financial Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $42.9 | $72.6 | | Net Loss | $24.5 | $24.2 | - The decline in revenue was primarily due to a pause in production and supply under the OMC contracts in the India Biodiesel segment. New letters of intent for **$31 million** were received in April 2025 for deliveries in May, June, and July[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - The company generated **$19.0 million** in cash proceeds from the sale of investment tax credits during the quarter[5](index=5&type=chunk) - The Aemetis Biogas segment increased sales by **10,100 MMBtu** compared to the same quarter last year[5](index=5&type=chunk) - The California Ethanol segment surpassed the **$2 billion** cumulative revenue milestone[5](index=5&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025) This section analyzes Aemetis's Q1 2025 financial results, covering income statement, balance sheet, and cash flow performance [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) Aemetis reported a Q1 2025 gross loss of $5.1 million and an operating loss of $15.6 million, with net loss at $24.5 million, driven by lower revenue and increased SG&A Income Statement Summary (in millions) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Revenues | $42.9 | $72.6 | | Gross Loss | $(5.1) | $(0.6) | | Operating Loss | $(15.6) | $(9.5) | | Interest Expense | $13.7 | $10.5 | | Net Loss | $(24.5) | $(24.2) | - Selling, general and administrative (SG&A) expenses rose by **$1.6 million** to **$10.5 million**, primarily due to legal and transaction costs associated with the sale of tax credits[7](index=7&type=chunk) - Interest expense increased to **$13.7 million** from **$10.5 million** in the prior-year quarter[9](index=9&type=chunk) [Balance Sheet and Cash Flow Analysis](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) Aemetis's cash balance was $0.5 million as of March 31, 2025, with total assets at $242.5 million and liabilities at $523.2 million, reflecting capital investments and debt repayments Balance Sheet Summary (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $499 | $898 | | Total current assets | $28,493 | $44,696 | | Property, plant and equipment, net | $199,435 | $199,392 | | **Total assets** | **$242,518** | **$259,302** | | **Liabilities and stockholders' deficit** | | | | Total current liabilities | $174,601 | $143,968 | | Total long term liabilities | $348,612 | $379,262 | | Total stockholders' deficit | $(280,695) | $(263,928) | | **Total liabilities and stockholders' deficit** | **$242,518** | **$259,302** | - The company invested **$1.8 million** in capital projects for carbon intensity reduction and dairy digester construction[11](index=11&type=chunk) - Payments of **$15.4 million** were applied to the repayment of debt during the first quarter[11](index=11&type=chunk) [Segment Performance](index=7&type=section&id=PRODUCTION%20AND%20PRICE%20PERFORMANCE) This section details the performance of Aemetis's key segments, including California Ethanol, Dairy RNG, and India Biodiesel, highlighting production and sales [California Ethanol](index=7&type=section&id=California%20Ethanol) The California Ethanol segment maintained stable production at 103% capacity, selling 14.1 million gallons, with revenue increasing by $1.7 million due to higher sales prices California Ethanol Performance | California Ethanol | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gallons sold (millions) | 14.1 | 14.1 | | Average sales price/gallon | $1.98 | $1.79 | | Avg. delivered cost/bushel (Corn) | $6.63 | $6.33 | - The Keyes ethanol plant increased revenues by **$1.7 million**, mainly due to the rise in the average price of Ethanol[6](index=6&type=chunk) [California Dairy Renewable Natural Gas](index=7&type=section&id=California%20Dairy%20Renewable%20Natural%20Gas) The Dairy Renewable Natural Gas (RNG) segment demonstrated strong growth in MMBtu sold, increasing to 70,900 with an average sales price of $3.65 per MMBtu California Dairy RNG Performance | California Dairy RNG | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | MMBtu sold (thousands) | 70.9 | 60.8 | | Average price per MMBtu | $3.65 | $4.02 | - The Dairy Natural Gas segment sold **70,900 MMBtu** of renewable natural gas, an increase of **10,100 MMBtu** from the same quarter last year[6](index=6&type=chunk) [India Biodiesel](index=7&type=section&id=India%20Biodiesel) The India Biodiesel segment reported zero sales in Q1 2025 due to contract delays, significantly impacting overall revenue, despite securing new sales contracts for future quarters India Biodiesel Performance | India Biodiesel | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Metric tons sold (thousands) | 0 | 27.5 | | Average Sales Price/Metric ton | $ - | $1,127 | - Delays with the receipt of contracts in India from the government-owned Oil Marketing Companies accounted for the decline in revenue[6](index=6&type=chunk) - The segment received letters of intent in April for an aggregate of **$31 million** of biodiesel sales for delivery in May, June and July of 2025[5](index=5&type=chunk) [Business Outlook & Forward-Looking Statements](index=1&type=section&id=Business%20Outlook%20%26%20Forward-Looking%20Statements) Management focuses on future growth and improved cash flow, with key initiatives including resuming India Biodiesel production, advancing dairy digester projects, and leveraging LCFS and IRA tax credits - The India Biodiesel segment is approved to return to regular production levels after a pause[3](index=3&type=chunk) - The company expects substantial additional revenues from LCFS provisional pathway approvals, which could **double LCFS revenues**, and from the federal Inflation Reduction Act (IRA) Section 45Z production tax credits[3](index=3&type=chunk) - Aemetis is building a large centralized dairy digester to process waste from four dairies, expected to be operational in the next few months[4](index=4&type=chunk) - The company is undertaking a mechanical vapor recompression project to improve cash flow from the California Ethanol segment by replacing fossil natural gas with lower carbon electricity[4](index=4&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's core financial statements, including consolidated statements of operations, balance sheets, and Adjusted EBITDA reconciliation [Consolidated Condensed Statements of Operations](index=4&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20OPERATIONS) This statement details the company's financial performance for the three months ended March 31, 2025, compared to the same period in 2024. It shows revenues of $42.9 million and a net loss of $24.5 million for the quarter Consolidated Condensed Statements of Operations (in thousands) | (unaudited, in thousands, except per share data) | For the three months ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Revenues** | **$42,886** | **$72,634** | | Cost of goods sold | 47,966 | 73,246 | | **Gross loss** | **(5,080)** | **(612)** | | Selling, general and administrative expenses | 10,475 | 8,850 | | **Operating loss** | **(15,555)** | **(9,462)** | | Interest expense | 13,693 | 10,513 | | Accretion and other expenses of Series A preferred units | 2,279 | 3,311 | | Other (income) expense | (215) | 67 | | **Loss before income taxes** | **(31,312)** | **(23,353)** | | Income tax expense (benefit) | (6,783) | 878 | | **Net loss** | **$(24,529)** | **$(24,231)** | | **Net loss per common share (Basic & Diluted)** | **$(0.47)** | **$(0.58)** | | Weighted average shares outstanding (Basic & Diluted) | 52,584 | 41,889 | [Consolidated Condensed Balance Sheets](index=5&type=section&id=CONSOLIDATED%20CONDENSED%20BALANCE%20SHEETS) This statement provides a snapshot of the company's financial position as of March 31, 2025, compared to December 31, 2024. It details assets, liabilities, and stockholders' deficit, showing total assets of $242.5 million and a total stockholders' deficit of $280.7 million Consolidated Condensed Balance Sheets (in thousands) | (in thousands) | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $499 | $898 | | Total current assets | $28,493 | $44,696 | | Property, plant and equipment, net | $199,435 | $199,392 | | **Total assets** | **$242,518** | **$259,302** | | **Liabilities and stockholders' deficit** | | | | Total current liabilities | $174,601 | $143,968 | | Total long term liabilities | $348,612 | $379,262 | | Total stockholders' deficit | $(280,695) | $(263,928) | | **Total liabilities and stockholders' deficit** | **$242,518** | **$259,302** | [Reconciliation of Adjusted EBITDA to Net Loss](index=6&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20EBITDA%20TO%20NET%20INCOME%2F%28LOSS%29) This table reconciles the non-GAAP measure, Adjusted EBITDA, to the GAAP measure, Net Loss. For Q1 2025, the company reported an Adjusted EBITDA loss of $10.7 million, compared to an Adjusted EBITDA loss of $4.75 million in Q1 2024. Adjustments include interest, depreciation, share-based compensation, and income tax benefits Reconciliation of Adjusted EBITDA to Net Loss (in thousands) | (unaudited, in thousands) | For the three months ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net loss** | **$(24,529)** | **$(24,231)** | | Interest and amortization expense | 13,705 | 10,525 | | Depreciation expense | 2,357 | 1,798 | | Accretion of Series A preferred units | 2,279 | 3,311 | | Share-based compensation | 2,308 | 2,969 | | Income tax expense (benefit) | (6,783) | 878 | | **Adjusted EBITDA** | **$(10,663)** | **$(4,750)** | - Adjusted EBITDA is defined as net income/(loss) plus interest and amortization expense, income tax expense or benefit, accretion expense, depreciation expense, and share-based compensation expense[13](index=13&type=chunk)