Financial Data and Key Metrics Changes - Revenues for the third quarter of 2025 were $59.2 million, an increase of approximately $7 million from the second quarter, driven by biodiesel orders in India and improved ethanol production pricing [3][4] - Operating loss improved sequentially due to higher volumes and lower selling, general and administrative expenses [4] - Cash at the end of the quarter was $5.6 million after $4.1 million in investments for carbon intensity reduction and dairy renewable natural gas production expansion [4] Business Line Data and Key Metrics Changes - California Dairy Natural Gas generated $4 million in revenue from 12 operating digesters, with seven digesters using the CARB-approved LCFS pathway [4][6] - India Biofuels reported $14.5 million in revenues, with a new CFO appointed to target a public listing in 2026 [4][11] - The dairy RNG business increased biogas production capacity by over 30% with a new multi-dairy digester coming online [6][7] Market Data and Key Metrics Changes - LCFS credit revenue increased by 160% for approved dairy digesters starting in Q3 compared to those with pending approvals [7] - Ethanol pricing improved due to lower corn prices, with legislative approval for 15% ethanol blending in California expected to increase demand by over 600 million gallons per year [10][16] - The California Low Carbon Fuel Standard saw credit prices rise by more than 25% since summer, with expectations for further increases [14] Company Strategy and Development Direction - The company aims to diversify income streams from India, LCFS credits, and federal tax incentives, positioning for a strong exit to 2025 and increased income streams in 2026 [5][17] - Aemetis is targeting an IPO for its India subsidiary in early 2026, with plans to expand into biogas and ethanol production supported by government policies [11][17] - Future projects include a sustainable aviation fuel facility and a carbon capture project at the Riverbank site, with significant potential for revenue generation starting in 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of federal and state policies on the biofuels and biogas industries, anticipating strong growth in revenues and cash flow through 2026 [17][18] - The company is focused on refinancing expensive debt, supported by anticipated revenues from 45(z) production tax credits [29][45] - Management highlighted the importance of regulatory clarity and the potential for increased demand for biofuels due to legislative changes [16][38] Other Important Information - The company has completed initial site work for a carbon capture project, which is expected to sequester up to 1.4 million tons of CO2 per year [12][13] - Aemetis has received $20 million in grants and federal tax credits to fund its mechanical vapor recompression system, expected to significantly reduce natural gas use [9][10] - The company is negotiating agreements to utilize the Riverbank site for lower emissions and cost-effective power solutions [13] Q&A Session Summary Question: Ethanol segment performance and corn costs - Management noted that lower corn costs benefited the ethanol industry, but corn basis issues affected pricing [19][20] - The operational strategy has shifted to reduce reliance on petroleum and natural gas, leveraging low-carbon intensity electricity [21][22] Question: Impact of E15 approval in California - Management expects rapid adoption of E15 by retailers due to competitive pricing advantages [24][25] Question: India IPO and EBITDA profile - The company plans to sell 20%-25% of its India subsidiary, with a valuation range of $100 million to $300 million anticipated [43][44] Question: Refinancing timeline and debt management - Management is in the process of refinancing expensive debt, with expectations for improved cash flow from 45(z) credits to support this [29][45] Question: Dairy digesters and production capacity - The recent increase in production capacity is expected to positively impact future run rates, with additional digesters under construction [47][48] Question: Use of IPO proceeds - A portion of the IPO proceeds will be used for refinancing in the U.S., while also funding growth in India [52][53]

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]