Aemetis(US:AMTX)2023-05-04 16:00Financial Performance - For the three months ended March 31, 2023, revenue from the California Ethanol segment was $475 thousand, a significant decrease from $52.0 million for the same period in 2022, primarily due to an extended maintenance cycle and energy efficiency upgrades at the Keyes Plant [206]. - For the three months ended March 31, 2023, India Biodiesel generated $1.5 million in revenues, a significant increase from $8 thousand in the same period of 2022, with biodiesel sales accounting for 81% of total revenues [208]. - California Ethanol segment incurred a gross loss of $12 thousand for the three months ended March 31, 2023, a decrease from a gross loss of $2.9 million in the same period of 2022 [213]. - Selling, general, and administrative (SG&A) expenses increased by 47.7% to $10.8 million for the three months ended March 31, 2023, compared to $7.3 million in the same period of 2022 [217]. - Interest expense rose by 59.6% to $7.1 million for the three months ended March 31, 2023, compared to $4.4 million in the same period of 2022, due to higher debt balances and variable interest rates [218]. - Net cash used in operating activities for the three months ended March 31, 2023, was $11.3 million, with a net loss of $26.4 million [235]. Production and Sales - The California Dairy Renewable Natural Gas segment produced and sold 21.3 thousand MMBtu of renewable natural gas at an average price of $9.67 per MMBtu during the three months ended March 31, 2023, compared to 14.0 thousand MMBtu sold in the same period of 2022 [207]. - Biodiesel sales volume increased by 100% to 1.0 thousand metric tons in the three months ended March 31, 2023, compared to 0 metric tons in the same period of 2022 [212]. - The Kakinada Plant in India has a nameplate capacity of 150 thousand metric tons per year, producing biodiesel and refined glycerin for customers in India and Europe [193]. Projects and Initiatives - Aemetis plans to construct a Carbon Zero biofuels production plant in Riverbank, California, expected to produce 90 million gallons per year of sustainable aviation fuel and renewable diesel [195]. - The company aims to capture and sequester over two million metric tons of CO₂ per year through its Carbon Capture and Sequestration projects in California [196]. - Aemetis has signed contracts with 30 dairies for participation in the Aemetis Biogas Central Dairy Project, which includes a 40-mile biogas pipeline and six operating dairy digesters [191]. - The company is in the process of fulfilling an order for 31,697 kiloliters (approximately 27,418 metric tons) of biodiesel from a government oil marketing company in India [203]. - The company plans to restart the Keyes Plant in the second quarter of 2023 after completing an extended maintenance cycle, aiming to improve financial performance through new technologies [225]. Financial Position - Cash and cash equivalents were $4.1 million at March 31, 2023, a slight decrease from $4.3 million at December 31, 2022 [219]. - Current liabilities increased to $170.9 million as of March 31, 2023, compared to $162.7 million at December 31, 2022 [221]. - The outstanding balance of principal, interest, and fees on all Third Eye Capital Notes was $164 million as of March 31, 2023, with maturity dates ranging from April 1, 2024, to March 1, 2026 [230]. - Cash used by investing activities was $0.9 million, primarily for capital projects totaling $7.6 million, offset by grant proceeds of $6.8 million [236]. - Cash provided by financing activities was $11.4 million, including $2.6 million from common stock issuance and $11.6 million from borrowings [236]. Internal Controls and Compliance - Significant accounting policies include revenue recognition and recoverability of long-lived assets, which require complex judgments [237]. - No off-balance sheet arrangements were reported for the three months ended March 31, 2023 [239]. - Disclosure controls and procedures were found ineffective, despite remediation plans initiated to address material weaknesses [240]. - No changes in internal controls over financial reporting were reported during the most recently completed fiscal quarter [241]. - The company initiated a remediation plan to address material weaknesses in internal control related to information technology [241]. - No recently issued accounting pronouncements were reported beyond those disclosed in the Annual Report for the year ended December 31, 2022 [239]. Regulatory and Market Conditions - Aemetis plans to utilize provisions of the Inflation Reduction Act of 2022 to qualify for renewable energy credits across its U.S. facilities [202]. - The company anticipates continued reliance on its senior secured lender for additional funding due to negative capital and market conditions, raising doubts about its ability to continue as a going concern [224].