Aemetis(US:AMTX)2020-11-12 13:45Revenue Performance - Total revenue for the three months ended September 30, 2020, was $40.9 million, a decrease of 29% compared to $57.4 million in the same period of 2019[167]. - North America revenue decreased by 12% to $33.1 million, primarily due to a decline in ethanol and WDG sales, with ethanol sales volume down to 15.0 million gallons from 15.8 million gallons[167]. - India revenue decreased by 60% to $7.8 million, driven by a 58% drop in biodiesel volumes to 8,133 metric tons[168]. - North America revenue for the nine months ended September 30, 2020, was $114.226 million, a slight increase of 0.2% from $113.942 million in 2019[184]. - India revenue decreased by 61% to $14.001 million from $35.954 million in the same period in 2019[184]. - Total revenue for the nine months ended September 30, 2020, was $128.227 million, down 14% from $149.896 million in 2019[184]. Pricing and Sales Volume - Average ethanol price decreased by 9% to $1.59 per gallon during the three months ended September 30, 2020, compared to $1.74 per gallon in the same period of 2019[167]. - Average price of biodiesel increased to $901 per metric ton during the three months ended September 30, 2020, compared to $882 per metric ton in the same period of 2019[168]. - North America generated 55% of revenue from ethanol sales, with an average ethanol price decrease of 11% to $1.55 per gallon[185]. - Biodiesel sales volume in India decreased by 61% to 14,346 metric tons, attributed to delays in production under the OMC tender contract[186]. Cost of Goods Sold - Cost of goods sold for North America was $33.5 million, a decrease of 12% from $38.0 million in 2019[170]. - Cost of goods sold in India decreased by 57% to $6.6 million, reflecting the decline in biodiesel revenues[170]. - Cost of goods sold in North America decreased by 11% to $101.231 million from $113.440 million in 2019[187]. - Total cost of goods sold decreased by 20% to $113.830 million from $142.992 million in 2019[187]. Profitability - Gross profit for North America increased to $12,995 thousand in 2020 from $502 thousand in 2019, a change of 2489%[189]. - Total gross profit for the company rose to $14,397 thousand in 2020, up 109% from $6,904 thousand in 2019[189]. Expenses - Research and Development (R&D) expenses remained consistent at $37,000 for both 2020 and 2019[175]. - Selling, General and Administrative (SG&A) expenses in North America increased by 60% to $4.340 million, while in India, it decreased by 88% to $223,000[176][179]. - R&D expenses in North America increased by 9% to $175 thousand in 2020 from $160 thousand in 2019[191]. - SG&A expenses in North America rose by 12% to $11,206 thousand in 2020 compared to $9,972 thousand in 2019[192]. - SG&A expenses in India decreased by 51% to $1,342 thousand in 2020 from $2,743 thousand in 2019[194]. - Total other income/expense decreased by 7% to $24,014 thousand in 2020 from $25,845 thousand in 2019[195]. Cash Flow and Liquidity - Cash and cash equivalents were $0.1 million at September 30, 2020, down from $656 thousand at December 31, 2019[199]. - Current ratio decreased to 0.14 at September 30, 2020 from 0.22 at December 31, 2019[198]. - Net cash provided by operating activities was $7.0 million, with non-cash charges totaling $11.4 million and a net loss of $22.1 million[214]. - Cash used by investing activities included capital expenditures of $13.6 million from U.S. operations and $1.3 million from India operations[215]. - Cash provided by financing activities was $11.0 million, primarily from Series A Preferred Unit issuance of $11.6 million[216]. Debt and Financing - Total increases to debt amounted to $37.425 million, while total decreases to debt were $13.504 million, resulting in a net change in total debt of $23.921 million[213]. - The company expects to issue $50.8 million in additional EB-5 Notes under Phase II funding[200]. - As of September 30, 2020, the company had an additional borrowing capacity of $18.0 million under the Reserve Liquidity Notes[209]. Operational Metrics - The company ground 5.2 million bushels of corn during the three months ended September 30, 2020, down from 5.6 million bushels in the same period of 2019[171]. - Average cost of feedstock per bushel decreased by 11% to $4.92 during the three months ended September 30, 2020, compared to $5.53 in the same period of 2019[171]. - Working capital changes resulted in a $1.2 million increase in accounts receivable due to increased alcohol sales in North America[213]. - A $1.7 million decrease in inventories was noted, mainly due to changes in finished goods and raw materials[213]. - The company recorded a $3.7 million increase in notes receivable in India operations due to short-term loans made to a working capital partner[213]. Compliance and Legal Matters - The company has initiated a remediation plan to address material weaknesses in internal control over financial reporting identified in the previous fiscal year[219]. - The court awarded EdenIQ approximately $6.2 million in attorney fees and costs, which the company recorded based on the court order[224]. - There were no off-balance sheet arrangements during the three months ended September 30, 2020[218].