Aemetis(AMTX) - 2021 Q4 - Annual Report

Production and Sales - In 2021, the company produced 59.8 million gallons of denatured fuel ethanol, a slight decrease of 0.8% compared to 60.3 million gallons in 2020[221] - Biodiesel production dropped to 1,000 metric tons in 2021, a decrease of 93.8% from 16,000 metric tons in 2020[221] - Dairy Renewable Natural Gas segment saw intercompany sales of 53,041 MMBtu in 2021, a significant increase of 465.0% compared to 9,388 MMBtu in 2020[221] - California Ethanol generated 77% of revenue from ethanol sales, with an average price increase to $2.72 per gallon in 2021 from $1.84 in 2020, despite a slight decrease in sales volume[227] - India Biodiesel experienced a 97% decrease in sales volume to 455 metric tons, leading to a revenue drop, despite an increase in average sales price to $1,024 per metric ton[229] - Ethanol and high-grade alcohol sales for the year ended December 31, 2021, were $162.4 million, an increase from $111.2 million in 2020[265] - Wet distiller's grains sales reached $41.5 million for the year ended December 31, 2021, compared to $32.0 million in 2020[265] - India biodiesel sales amounted to $13.8 million for the year ended December 31, 2021, a decrease from $42.5 million in 2020[268] - The company sold $211.3 million in total sales for California Ethanol in 2021, up from $149.3 million in 2020[265] Financial Performance - Total revenue for the year ended December 31, 2021, was $211,949,000, representing a 28% increase compared to $165,557,000 in 2020[226] - Cost of Goods Sold (COGS) increased by 32% to $204,010,000 in 2021, driven by higher feedstock and operational costs[234] - SG&A expenses rose by 40% to $23,676,000 in 2021, accounting for 11% of total revenue, up from 10% in 2020[240] - Gross profit for California Ethanol decreased by 1.7% to $9,565,000 in 2021, attributed to lower margins from high-grade alcohol sales[237] - Cash used in operating activities was $20.6 million, resulting from a net loss of $47.1 million[253] - Cash provided by financing activities totaled $50.7 million, primarily from $103.6 million raised through common stock issuance[254] Pricing and Costs - The average sales price for ethanol increased by 47.8% to $2.72 per gallon in 2021, up from $1.84 per gallon in 2020[221] - The average sales price for biodiesel rose by 18.7% to $1,024 per metric ton in 2021, compared to $863 per metric ton in 2020[221] - The average delivered cost of corn increased by 49.1% to $7.53 per bushel in 2021, compared to $5.05 per bushel in 2020[221] - The average price of WDG increased by 27% to $103 per ton in 2021, with sales volume rising by 3% to 404,000 tons[227] Investments and Expansion - The company is actively expanding its Dairy Renewable Natural Gas segment by constructing additional dairy digesters and pipelines[217] - The establishment of Aemetis Carbon Capture, Inc. aims to build Carbon Capture and Sequestration projects to generate carbon credits[212] - The company plans to operate the Biogas Project to capture and monetize biogas, funded by government guaranteed loans[248] - The company plans to issue an additional $50.8 million in EB-5 Notes under Phase II funding[245] Debt and Financial Health - Interest expense decreased by $2.8 million to $20.1 million in 2021, a 12% reduction compared to 2020[241] - Cash and cash equivalents increased to $7.8 million as of December 31, 2021, up from $0.6 million in 2020[242] - Current ratio improved to 0.32 in 2021 from 0.08 in 2020, indicating better short-term financial health[242] - As of December 31, 2021, the outstanding balance on Third Eye Capital Notes was $121.5 million, with a maturity date extended to April 1, 2023[251] - The company has the capacity to issue up to $288.2 million of common stock under the at-the-market offering program as of December 31, 2021[257] Risk and Sensitivity Analysis - A sensitivity analysis indicated that a hypothetical 10% increase in corn prices could decrease net income by approximately $14.8 million[281] - The company had $99.6 million in outstanding variable interest-rate liabilities as of December 31, 2021, with a potential $1.1 million increase in interest costs for a 1% rise in the prime rate[284] - A sensitivity analysis indicated that a 10-point increase in the INR to USD exchange rate would result in a $0.2 million impact to net income, a $0.1 million change in total liabilities, a $1.4 million change in stockholders' equity, and a $1.5 million change in total assets for the Indian subsidiary[286] Other Financial Information - Research and Development (R&D) expenses decreased by 59% to $88,000 in 2021, reflecting reduced subcontract work and lab supply costs[240] - The company recognized a foreign currency translation loss of $0.2 million for the twelve months ended December 31, 2021, compared to $0.3 million in 2020 and $0.2 million in 2019[285] - As of December 31, 2021, the company had no outstanding material derivative financial instruments or foreign currency contracts[286] - The company has no open firm-price purchase commitments with feedstock suppliers as of December 31, 2021[277] - The pricing for both feedstock and biodiesel is set independently, with the company holding legal title and risk during processing[267] - The company assessed principal versus agent criteria in its sales agreements, confirming it acts as the principal in many transactions[266]