UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission File Number 001-35073

GEVO, INC.

(Exact name of registrant as specified in its charter)


Delaware									87-0747704
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)


345 Inverness Drive South, Building C, Suite 310 Englewood, CO									80112
(Address of principal executive offices)									(Zip Code)

(303) 858-8358

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	GEVO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☒☐	Accelerated filer	☐

Non-accelerated filer	☐☒	Smaller reporting company	☐☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 5,~~November 7, 2022, ~~235,165,951~~237,221,732 shares of the registrant’s common stock were outstanding.

Table of Contents

GEVO, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2022

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of ~~June~~September 30, 2022 (unaudited) and December 31, 2021	3
	Consolidated Statements of Operations for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Comprehensive Loss for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Stockholders' Equity for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	8
	Notes to Consolidated Financial Statements (unaudited)	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2928
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4039
Item 4.	Controls and Procedures	4039

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	4241
Item 5.	Other Information	4241
Item 6.	Exhibits	4342

	Signatures	4544

Table of Contents

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements.

GEVO, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share and per share amounts)


		Note	As of June 30, 2022		As of December 31, 2021			Note	As of September 30, 2022		As of December 31, 2021
Assets	Assets						Assets
Current assets	Current assets						Current assets
Cash and cash equivalents	Cash and cash equivalents		$	172,984	$	40,833	Cash and cash equivalents		$	200,564	$	40,833
Marketable securities (current)	Marketable securities (current)	5	297,631		275,340		Marketable securities (current)	5	222,012		275,340
Restricted cash (current)	Restricted cash (current)	12	5,894		25,032		Restricted cash (current)	6	1,024		25,032
Accounts receivable, net	Accounts receivable, net		188		978		Accounts receivable, net		352		978
Inventories	Inventories	7	2,649		2,751		Inventories	9	4,135		2,751
Prepaid expenses and other current assets	Prepaid expenses and other current assets	4	5,275		3,607		Prepaid expenses and other current assets	7	3,635		3,607
Total current assets	Total current assets		484,621		348,541		Total current assets		431,722		348,541
Property, plant and equipment, net	Property, plant and equipment, net	8	176,054		139,141		Property, plant and equipment, net	10	166,004		139,141
Long-term marketable securities		5	—		64,396
Long-term restricted cash		12	70,256		70,168
Marketable securities (long-term)							Marketable securities (long-term)	5	—		64,396
Restricted cash (long-term)							Restricted cash (long-term)	6	76,842		70,168
Operating right-of-use assets	Operating right-of-use assets	6	2,098		2,414		Operating right-of-use assets	8	1,671		2,414
Finance right-of-use assets	Finance right-of-use assets	6	27,477		27,297		Finance right-of-use assets	8	27,012		27,297
Intangible assets, net	Intangible assets, net	9	8,364		8,938		Intangible assets, net	11	7,995		8,938
Deposits and other assets	Deposits and other assets		5,741		5,581		Deposits and other assets	12	18,165		5,581
Total assets	Total assets		$	774,611	$	666,476	Total assets		$	729,411	$	666,476
Liabilities	Liabilities						Liabilities
Current liabilities	Current liabilities						Current liabilities
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	11	$	18,750	$	28,288	Accounts payable and accrued liabilities	13	$	14,916	$	28,288
Operating lease liabilities (current)	Operating lease liabilities (current)	6	423		772		Operating lease liabilities (current)	8	430		772
Finance lease liabilities (current)	Finance lease liabilities (current)	6	6,293		3,413		Finance lease liabilities (current)	8	2,125		3,413
Loans payable - other (current)	Loans payable - other (current)	12	158		158		Loans payable - other (current)	14	158		158
Total current liabilities	Total current liabilities		25,624		32,631		Total current liabilities		17,629		32,631
2021 Bonds payable (long-term)	2021 Bonds payable (long-term)	12	66,853		66,486		2021 Bonds payable (long-term)	14	67,038		66,486
Loans payable - other (long-term)	Loans payable - other (long-term)	12	238		318		Loans payable - other (long-term)	14	199		318
Operating lease liabilities (long-term)	Operating lease liabilities (long-term)	6	1,786		1,902		Operating lease liabilities (long-term)	8	1,734		1,902
Finance lease liabilities (long-term)	Finance lease liabilities (long-term)	6	16,342		17,797		Finance lease liabilities (long-term)	8	16,349		17,797
Other long-term liabilities	Other long-term liabilities		—		87		Other long-term liabilities		1,520		87
Total liabilities	Total liabilities		110,843		119,221		Total liabilities		104,469		119,221
Stockholders' Equity	Stockholders' Equity						Stockholders' Equity
Common stock, $0.01 par value per share; 500,000,000 and 250,000,000 shares authorized at June 30, 2022, and December 31, 2021, respectively; 235,165,951 and 201,988,662 shares issued and outstanding at June 30, 2022, and December 31, 2021, respectively.			2,353		2,020
Common stock, $0.01 par value per share; 500,000,000 and 250,000,000 shares authorized at September 30, 2022, and December 31, 2021, respectively; 237,221,732 and 201,988,662 shares issued and outstanding at September 30, 2022, and December 31, 2021, respectively.							Common stock, $0.01 par value per share; 500,000,000 and 250,000,000 shares authorized at September 30, 2022, and December 31, 2021, respectively; 237,221,732 and 201,988,662 shares issued and outstanding at September 30, 2022, and December 31, 2021, respectively.		2,372		2,020
Additional paid-in capital	Additional paid-in capital		1,249,880		1,103,224		Additional paid-in capital		1,254,733		1,103,224
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(2,256)		(614)		Accumulated other comprehensive loss		(2,168)		(614)
Accumulated deficit	Accumulated deficit		(586,209)		(557,375)		Accumulated deficit		(629,995)		(557,375)
Total stockholders' equity	Total stockholders' equity		663,768		547,255		Total stockholders' equity		624,942		547,255

Total liabilities and stockholders' equity	Total liabilities and stockholders' equity		$	774,611	$	666,476	Total liabilities and stockholders' equity		$	729,411	$	666,476

See the accompanying Notes to the Consolidated Financial Statements.

Table of Contents

GEVO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except share and per share amounts)


		Note	Three months Ended June 30,				Six Months Ended June 30,					Note	Three Months Ended September 30,				Nine Months Ended September 30,
			2022		2021		2022		2021				2022		2021		2022		2021
Revenue and cost of goods sold	Revenue and cost of goods sold										Revenue and cost of goods sold
Ethanol sales and related products, net	Ethanol sales and related products, net	2	$	71	$	—	$	240	$	—	Ethanol sales and related products, net	2	$	—	$	16	$	240	$	16
Hydrocarbon revenue	Hydrocarbon revenue	2	18		346		81		359		Hydrocarbon revenue	2	—		104		81		463
Renewable natural gas commodity											Renewable natural gas commodity	2	309		—		309		—

Total revenues	Total revenues	2, 18	89		346		321		359		Total revenues	2, 20	309		120		630		479
Cost of production (including stock-based compensation)		13	2,640		1,617		5,730		2,518
Cost of production											Cost of production	15	318		2,378		5,242		4,896
Idle facility costs											Idle facility costs		2,330		—		2,330		—
Depreciation and amortization	Depreciation and amortization	8, 9	1,088		1,177		2,179		2,270		Depreciation and amortization	10, 11	1,250		1,104		3,429		3,374
Total cost of goods sold	Total cost of goods sold		3,728		2,794		7,909		4,788		Total cost of goods sold		3,898		3,482		11,001		8,270
Gross loss	Gross loss		(3,639)		(2,448)		(7,588)		(4,429)		Gross loss		(3,589)		(3,362)		(10,371)		(7,791)
Operating expenses	Operating expenses										Operating expenses
Research and development expense (including stock-based compensation)		13	1,966		1,332		3,158		2,710
Selling, general and administrative expense (including stock-based compensation)		13	9,209		4,846		18,576		8,660
Research and development expense											Research and development expense	15	1,562		1,495		4,720		4,205
Selling, general and administrative expense											Selling, general and administrative expense	15	11,144		9,287		29,205		17,947
Preliminary stage project costs	Preliminary stage project costs		314		5,472		821		8,199		Preliminary stage project costs	15	915		313		1,736		8,512
Other operations (including stock-based compensation)		13	601		—		1,190		—
Other operations											Other operations	15	1,303		—		3,814		—
Impairment loss											Impairment loss	3	24,749		—		24,749		—
Loss on disposal of assets	Loss on disposal of assets		—		4,954		—		4,954		Loss on disposal of assets		—		183		—		5,137
Depreciation and amortization	Depreciation and amortization	8, 9	386		46		737		104		Depreciation and amortization	10, 11	407		94		1,144		198
Total operating expenses	Total operating expenses		12,476		16,650		24,482		24,627		Total operating expenses		40,080		11,372		65,368		35,999
Loss from operations	Loss from operations	18	(16,115)		(19,098)		(32,070)		(29,056)		Loss from operations	20	(43,669)		(14,734)		(75,739)		(43,790)
Other income (expense)	Other income (expense)										Other income (expense)
Gain (loss) from change in fair value of derivative warrant liability	Gain (loss) from change in fair value of derivative warrant liability		—		43		16		(10)		Gain (loss) from change in fair value of derivative warrant liability		—		6		16		(4)
Interest expense	Interest expense		(2)		(6)		(4)		(11)		Interest expense		(712)		(67)		(716)		(78)
Investment income (loss)	Investment income (loss)	5	78		—		330		—		Investment income (loss)	5	874		233		1,204		354
Gain on forgiveness of SBA loan	Gain on forgiveness of SBA loan		—		641		—		641		Gain on forgiveness of SBA loan		—		—		—		641
Other income (expense), net	Other income (expense), net		2,878		167		2,894		126		Other income (expense), net		(279)		182		2,615		187
Total other income (expense), net	Total other income (expense), net		2,954		845		3,236		746		Total other income (expense), net		(117)		354		3,119		1,100
Net loss	Net loss		$	(13,161)	$	(18,253)	$	(28,834)	$	(28,310)	Net loss		$	(43,786)	$	(14,380)	$	(72,620)	$	(42,690)
Net loss per share - basic and diluted	Net loss per share - basic and diluted	3	$	(0.06)	$	(0.09)	$	(0.14)	$	(0.15)	Net loss per share - basic and diluted	4	$	(0.19)	$	(0.07)	$	(0.34)	$	(0.22)
Weighted-average number of common shares outstanding - basic and diluted	Weighted-average number of common shares outstanding - basic and diluted		209,809,994		198,137,420		205,889,651		190,892,223		Weighted-average number of common shares outstanding - basic and diluted	4	236,649,805		199,341,519		216,255,710		193,739,605

See the accompanying Notes to the Consolidated Financial Statements.

GEVO, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands)


		Note	Three months Ended June 30,				Six Months Ended June 30,					Note	Three Months Ended September 30,				Nine Months Ended September 30,
			2022		2021		2022		2021				2022		2021		2022		2021
Net loss	Net loss		$	(13,161)	$	(18,253)	$	(28,834)	$	(28,310)	Net loss		$	(43,786)	$	(14,380)	$	(72,620)	$	(42,690)
Other comprehensive income (loss)	Other comprehensive income (loss)										Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities, net of tax		5	(669)		(307)		(1,643)		(307)
Adjustment for net gain (loss) realized on available-for-sale securities and included in net income, net of tax		5	—		—		1		—
Total change in other comprehensive income (loss)			(669)		(307)		(1,642)		(307)
Unrealized gain (loss) on available-for-sale securities											Unrealized gain (loss) on available-for-sale securities	5	88		11		(1,554)		(296)
Comprehensive loss	Comprehensive loss		$	(13,830)	$	(18,560)	$	(30,476)	$	(28,617)	Comprehensive loss		$	(43,698)	$	(14,369)	$	(74,174)	$	(42,986)

See the accompanying Notes to the Consolidated Financial Statements.

Table of Contents

GEVO, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands, except share amounts)


			For the three months ended June 30, 2022 and 2021																					For the three months ended September 30, 2022 and 2021
			Common Stock			Paid-In Capital				Accumulated Other Comprehensive Loss			Accumulated Deficit				Stockholders’ Equity							Common Stock			Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity
		Note	Shares	Amount								Note								Shares			Amount
Balance, March 31, 2022			201,752,722	$	2,019			$	1,107,051						$	(1,587)			$	(573,048)		$	534,435
Issuance of common stock and common stock warrants, net of issuance costs		17	33,333,336	333		138,675				—			—				139,008
June 30, 2022																				June 30, 2022				235,165,951	$	2,353		$	1,249,880		$	(2,256)		$	(586,209)		$	663,768

Non-cash stock-based compensation	Non-cash stock-based compensation	13	—	—		4,220				—			—				4,220			Non-cash stock-based compensation	15			—	—		4,361			—			—			4,361
Issuance of common stock under stock plans, net of taxes	Issuance of common stock under stock plans, net of taxes	17	79,893	1		(66)				—			—				(65)			Issuance of common stock under stock plans, net of taxes	19			2,055,781	19		492			—			—			511
Other comprehensive loss	Other comprehensive loss		—	—		—				(669)			—				(669)			Other comprehensive loss				—	—		—			88			—			88
Net loss	Net loss		—	—		—				—			(13,161)				(13,161)			Net loss				—	—		—			—			(43,786)			(43,786)
Balance, June 30, 2022			235,165,951	$	2,353	$	1,249,880			$	(2,256)		$	(586,209)			$	663,768
September 30, 2022																				September 30, 2022				237,221,732	$	2,372	$	1,254,733		$	(2,168)		$	(629,995)		$	624,942

Balance, March 31, 2021			198,050,449	$	1,981	$	1,101,939			$	—		$	(508,229)			$	595,691
June 30, 2021																				June 30, 2021				197,964,476	$	1,980	$	1,100,932		$	(307)		$	(526,482)		$	576,123
Issuance of common stock and common stock warrants, net of issuance costs	Issuance of common stock and common stock warrants, net of issuance costs	17	—	—		(45)				—			—				(45)			Issuance of common stock and common stock warrants, net of issuance costs	19			—	—		(162)			—			—			(162)
Issuance of common stock upon exercise of warrants		17	3,700	—		4				—			—				4

Non-cash stock-based compensation	Non-cash stock-based compensation	13	—	—		858				—			—				858			Non-cash stock-based compensation	15			—	—		1,880			—			—			1,880
Issuance of common stock under stock plans, net of taxes	Issuance of common stock under stock plans, net of taxes	17	(89,673)	(1)		(1,824)				—			—				(1,825)			Issuance of common stock under stock plans, net of taxes	19			3,915,502	39		(3,711)			—			—			(3,672)
Other comprehensive loss	Other comprehensive loss		—	—		—				(307)			—				(307)			Other comprehensive loss				—	—		—			11			—			11
Net loss	Net loss		—	—		—				—			(18,253)				(18,253)			Net loss				—	—		—			—			(14,380)			(14,380)
Balance, June 30, 2021			197,964,476	$	1,980	$	1,100,932			$	(307)		$	(526,482)			$	576,123
September 30, 2021																				September 30, 2021				201,879,978	$	2,019	$	1,098,939		$	(296)		$	(540,862)		$	559,800
See the accompanying Notes to the Consolidated Financial Statements.	See the accompanying Notes to the Consolidated Financial Statements.																			See the accompanying Notes to the Consolidated Financial Statements.

Table of Contents

GEVO, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands, except share amounts)


			For the six months ended June 30,2022 and 2021																					For the nine months ended September 30, 2022 and 2021
			Common Stock			Paid-In Capital				Accumulated Other Comprehensive Loss			Accumulated Deficit				Stockholders’ Equity							Common Stock			Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity
		Note	Shares	Amount								Note								Shares			Amount
Balance, December 31, 2021			201,988,662	$	2,020			$	1,103,224						$	(614)			$	(557,375)		$	547,255
December 31, 2021																				December 31, 2021				201,988,662	$	2,020		$	1,103,224		$	(614)		$	(557,375)		$	547,255
Issuance of common stock and common stock warrants, net of issuance costs	Issuance of common stock and common stock warrants, net of issuance costs	17	33,333,336	333		138,675				—			—				139,008			Issuance of common stock and common stock warrants, net of issuance costs	19			33,333,336	333		138,675			—			—			139,008
Issuance of common stock upon exercise of warrants	Issuance of common stock upon exercise of warrants	17	4,677	—		3				—			—				3			Issuance of common stock upon exercise of warrants	19			4,677	—		3			—			—			3
Non-cash stock-based compensation	Non-cash stock-based compensation	13	—	—		8,264				—			—				8,264			Non-cash stock-based compensation	15			—	—		12,625			—			—			12,625
Issuance of common stock under stock plans, net of taxes	Issuance of common stock under stock plans, net of taxes	17	(160,724)	—		(286)				—			—				(286)			Issuance of common stock under stock plans, net of taxes	19			1,895,057	19		206			—			—			225
Other comprehensive loss	Other comprehensive loss		—	—		—				(1,642)			—				(1,642)			Other comprehensive loss				—	—		—			(1,554)			—			(1,554)
Net loss	Net loss		—	—		—				—			(28,834)				(28,834)			Net loss				—	—		—			—			(72,620)			(72,620)
Balance, June 30, 2022			235,165,951	$	2,353	$	1,249,880			$	(2,256)		$	(586,209)			$	663,768
September 30, 2022																				September 30, 2022				237,221,732	$	2,372	$	1,254,733		$	(2,168)		$	(629,995)		$	624,942

Balance, December 31, 2020			128,138,311	$	1,282	$	643,269			$	—		$	(498,172)			$	146,379
December 31, 2020																				December 31, 2020				128,138,311	$	1,282	$	643,269		$	—		$	(498,172)		$	146,379
Issuance of common stock, net of issuance costs	Issuance of common stock, net of issuance costs	17	68,170,579	682		456,963				—			—				457,645			Issuance of common stock, net of issuance costs	19			68,170,579	682		456,801			—			—			457,483
Issuance of common stock upon exercise of warrants	Issuance of common stock upon exercise of warrants	17	1,866,758	18		1,103				—			—				1,121			Issuance of common stock upon exercise of warrants	19			1,866,758	18		1,103			—			—			1,121
Non-cash stock-based compensation	Non-cash stock-based compensation	13	—	—		1,420				—			—				1,420			Non-cash stock-based compensation	15			—	—		3,300			—			—			3,300
Issuance of common stock under stock plans, net of taxes	Issuance of common stock under stock plans, net of taxes	17	(211,172)	(2)		(1,823)				—			—				(1,825)			Issuance of common stock under stock plans, net of taxes	19			3,704,330	37		(5,534)			—			—			(5,497)
Other comprehensive loss	Other comprehensive loss		—	—		—				(307)			—				(307)			Other comprehensive loss				—	—		—			(296)			—			(296)
Net loss	Net loss		—	—		—				—			(28,310)				(28,310)			Net loss				—	—		—			—			(42,690)			(42,690)
Balance, June 30, 2021			197,964,476	$	1,980	$	1,100,932			$	(307)		$	(526,482)			$	576,123
September 30, 2021																				September 30, 2021				201,879,978	$	2,019	$	1,098,939		$	(296)		$	(540,862)		$	559,800

See the accompanying Notes to the Consolidated Financial Statements.

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GEVO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


		Note	Six Months Ended June 30,					Note	Nine Months Ended September 30,
			2022		2021				2022		2021
Operating Activities	Operating Activities						Operating Activities
Net loss	Net loss		$	(28,834)	$	(28,310)	Net loss		$	(72,620)	$	(42,690)
Adjustments to reconcile net loss to net cash used in operating activities:	Adjustments to reconcile net loss to net cash used in operating activities:						Adjustments to reconcile net loss to net cash used in operating activities:
Impairment loss							Impairment loss	3	24,749		—
Loss on disposal of assets	Loss on disposal of assets		—		4,954		Loss on disposal of assets		—		5,137
(Gain) on forgiveness of SBA Loans	(Gain) on forgiveness of SBA Loans		—		(641)		(Gain) on forgiveness of SBA Loans		—		(641)
Stock-based compensation	Stock-based compensation	13	7,945		1,617		Stock-based compensation	15	12,624		5,823
Depreciation and amortization	Depreciation and amortization	8, 9	2,916		2,372		Depreciation and amortization	10, 11	4,452		3,572
Noncash interest expense			2,637		—
Amortization of marketable securities premium							Amortization of marketable securities premium		2,755		—
Other noncash (income) expense	Other noncash (income) expense		352		(41)		Other noncash (income) expense		(153)		77
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:						Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable		790		(320)		Accounts receivable		626		14
Inventories	Inventories	7	102		275		Inventories	9	(338)		150
Prepaid expenses and other current assets, deposits and other assets	Prepaid expenses and other current assets, deposits and other assets	4	(1,828)		(3,142)		Prepaid expenses and other current assets, deposits and other assets	7, 12	(8,445)		(4,459)
Accounts payable, accrued expenses and long-term liabilities	Accounts payable, accrued expenses and long-term liabilities	5, 6, 11, 12, 13	(1,194)		3,768		Accounts payable, accrued expenses and long-term liabilities	13, 14	(420)		4,324
Net cash used in operating activities	Net cash used in operating activities		(17,114)		(19,468)		Net cash used in operating activities		(36,770)		(28,693)
Investing Activities	Investing Activities						Investing Activities
Acquisitions of property, plant and equipment	Acquisitions of property, plant and equipment	8	(46,165)		(14,167)		Acquisitions of property, plant and equipment	10	(68,535)		(30,955)
Acquisition of patent portfolio	Acquisition of patent portfolio	9	(10)		—		Acquisition of patent portfolio	11	(10)		—
Proceeds from sale and maturity of marketable securities	Proceeds from sale and maturity of marketable securities	5	169,082		—		Proceeds from sale and maturity of marketable securities	5	243,817		34,332

Purchase of patents and license							Purchase of patents and license		—		(9,000)
Purchase of marketable securities	Purchase of marketable securities	5	(131,257)		(422,362)		Purchase of marketable securities	5	(130,402)		(422,362)

Net cash used in investing activities			(8,350)		(436,529)
Net cash provided by (used in) investing activities							Net cash provided by (used in) investing activities		44,870		(427,985)
Financing Activities	Financing Activities						Financing Activities
Proceeds from issuance of 2021 Bonds	Proceeds from issuance of 2021 Bonds	12	—		68,995		Proceeds from issuance of 2021 Bonds	14	—		68,995
Debt and equity offering costs	Debt and equity offering costs	17	(10,993)		(34,757)		Debt and equity offering costs	19	(10,993)		(34,919)
Proceeds from issuance of common stock and common stock warrants	Proceeds from issuance of common stock and common stock warrants	17	150,000		487,549		Proceeds from issuance of common stock and common stock warrants	19	150,000		487,549
Proceeds from exercise of warrants	Proceeds from exercise of warrants	17	3		1,119		Proceeds from exercise of warrants	19	3		1,119
Net settlement of common stock under stock plans	Net settlement of common stock under stock plans	13	(286)		—		Net settlement of common stock under stock plans	15	(285)		(5,137)
Payment of loans payable - other	Payment of loans payable - other	12	(72)		(53)		Payment of loans payable - other	14	(112)		(98)
Payment of finance lease liabilities	Payment of finance lease liabilities	6	(87)		—		Payment of finance lease liabilities	8	(4,316)		(2,996)
Net cash provided by financing activities	Net cash provided by financing activities		138,565		522,853		Net cash provided by financing activities		134,297		514,513
Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents		113,101		66,856		Net increase (decrease) in cash and cash equivalents		142,397		57,835
Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period		136,033		78,338		Cash, cash equivalents and restricted cash at beginning of period		136,033		78,338
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period		249,134		145,194		Cash, cash equivalents and restricted cash at end of period		$	278,430	$	136,173


		Six Months Ended June 30,					Nine Months Ended September 30,
Schedule of cash, cash equivalents and restricted cash	Schedule of cash, cash equivalents and restricted cash	2022		2021		Schedule of cash, cash equivalents and restricted cash	2022		2021
Cash and cash equivalents	Cash and cash equivalents	$	172,984	$	17,085	Cash and cash equivalents	$	200,564	$	16,201
Restricted cash (current)	Restricted cash (current)	5,894		57,645		Restricted cash (current)	1,024		49,804
Long-term restricted cash	Long-term restricted cash	70,256		70,464		Long-term restricted cash	76,842		70,168
Total cash, cash equivalents and restricted cash	Total cash, cash equivalents and restricted cash	$	249,134	$	145,194	Total cash, cash equivalents and restricted cash	$	278,430	$	136,173

See the accompanying Notes to the Consolidated Financial Statements.

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GEVO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


		Six Months Ended June 30,					Nine Months Ended September 30,
Supplemental disclosures of cash and non-cash investing and financing transactions	Supplemental disclosures of cash and non-cash investing and financing transactions	2022		2021		Supplemental disclosures of cash and non-cash investing and financing transactions	2022		2021
Cash paid for interest		$	757	$	9
Cash paid for interest capitalized to construction in progress		$	752	$	—
Non-cash interest capitalized to construction in progress		$	511	$	—
Cash paid for interest, net of amounts capitalized						Cash paid for interest, net of amounts capitalized	$	770	$	11
Non-cash purchase of property, plant and equipment	Non-cash purchase of property, plant and equipment	$	11,643	$	5,052	Non-cash purchase of property, plant and equipment	$	11,136	$	12,164
Right-of-use asset purchased with financing leases	Right-of-use asset purchased with financing leases	$	834	$	27,775	Right-of-use asset purchased with financing leases	$	834	$	28,416
Right-of-use asset purchased with operating lease	Right-of-use asset purchased with operating lease	$	—	$	1,562	Right-of-use asset purchased with operating lease	$	—	$	1,611

See the accompanying Notes to the Consolidated Financial Statements.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

1.Nature of Business, Financial Condition and Basis of Presentation

Nature of business. Gevo, Inc. (Nasdaq: GEVO) ("Gevo" or the "Company," which, unless otherwise indicated, refers to Gevo, Inc. and its subsidiaries), a Delaware corporation founded in 2005, is a growth-oriented company with the mission of solving greenhouse gas emissions for those sectors of the transportation industry that are not amenable to electrification or hydrogen.

The Company is focused on transforming renewable energy into energy-dense liquid drop-in hydrocarbons that can be used as renewable fuels, such as sustainable aviation fuel ("SAF") and other fuels and chemicals, with the potential to achieve a “net-zero” greenhouse gas ("GHG") footprint. The Company uses the Argonne National Laboratory’s GREET (Greenhouse gases, Regulated Emissions, and Energy use in Transportation) model (the "GREET Model") to measure, predict and verify GHG emissions across the life-cycle of its products. The “net-zero” concept means Gevo expects that by using sustainably grown feedstock (i.e., low till, no-till and dry corn cultivation), renewable and substantially decarbonized energy sources, drop-in hydrocarbon fuels can be produced that have a net-zero, full life cycle footprint measured from the capture of renewable carbon through the burning of the fuel.

Gevo's primary market focus, given current demand and growing customer interest, is SAF. The Company believes it also has commercial opportunities for other renewable hydrocarbon products, such as (i) ~~renewable natural gas (“RNG”), (ii)~~ hydrocarbons for gasoline blendstocks and diesel fuel, ~~and (iii)~~(ii) plastics, materials and other ~~chemicals.~~chemicals, and (iii) renewable natural gas (“RNG”).

Net-Zero Projects

In early 2021, we announced the concept of “Net-Zero Projects” as a series of planned facilities to produce energy dense liquid hydrocarbons using renewable energy and our proprietary technology. The ~~Company believes it has the technology and know-how~~concept of a Net-Zero Project is to convert ~~various carbohydrate feedstocks through~~renewable energy (e.g., photosynthetic, wind, RNG, biogas) from a variety of sources into energy dense liquid hydrocarbons that, when burned in traditional engines, have the potential to achieve net-zero GHG emissions across the whole lifecycle of the liquid fuel: from the way carbon is captured from the atmosphere, processed to make liquid fuel products, and burnt as a fuel for cars, planes, trucks and ships.

Our initial Net-Zero Project, Net-Zero 1 (“NZ1"), is located in Lake Preston, South Dakota, and is being currently designed to produce approximately 62 million gallons per year ("MGPY") of total hydrocarbon volumes, including 55 MGPY of SAF. Along with the hydrocarbons, NZ1 is being currently designed to produce approximately 475 million pounds per year of high-value protein products for use in the food chain and more than 30 million pounds per year of corn oil. Our products will be produced in three steps; the first step is milling the corn and the production of protein, oil, and carbohydrates, the second step produces alcohols using fermentation ~~process into alcohols~~ and ~~then transform~~the third step is the conversion of the alcohols into renewable fuels and materials. While the Company expects its major capital deployments to focus on the production of SAF, Gevo recognizes there are opportunities to operate in several different markets, and it will pursue those opportunities when appropriate based on customer interest, access to capital and expected investment returns.hydrocarbons.

Gevo currently operates a wholly-owned development plant in Luverne, Minnesota (the "Luverne Facility"). The Luverne Facility was originally constructed in 1998 and is located on approximately 55 acres of land, which contains approximately 50,000 square feet of building space. Our Luverne Facility is a scale up and development site. Gevo intends to use the Luverne Facility to prove our processes, process concepts, unit operations and for other purposes in order to optimize feedstocks and the processes used for producing hydrocarbons from alcohols.Renewable Natural Gas Projects

Gevo's ~~renewable natural gas ("RNG")~~RNG project in Northwest Iowa ("NW Iowa RNG") is owned by Gevo NW Iowa RNG, LLC, ~~generates~~and produces RNG captured from dairy cow manure. The manure is supplied by 3three local dairies that have over 20,000 milking cows in total with additional milking cows expected pursuant to agreements executed during the second quarter of 2022. Animal manure can be digested anaerobically to produce biogas, which is then upgraded to pipeline quality gas referred to as RNG. Gevo NW Iowa RNG, LLC ~~then~~ sells the produced RNG to the California market through an agreement with BP Canada Energy Marketing Corp. and BP Products North America Inc. (collectively, "BP").

In 2021, Gevo began construction on NW Iowa RNG under a self-perform project delivery format. Most of the construction efforts were completed at the end of 2021, and in January 2022, Gevo began the process of commissioning the project. One of the three digesters is fully operational, and the others are currently in the start-up phase.Luverne Facility

~~Ultimately,~~Gevo's development plant in Luverne, Minnesota (the "Luverne Facility") was originally constructed in 1998 and is located on approximately 55 acres of land, which contains approximately 50,000 square feet of building space. Gevo may use the Luverne Facility in the future to prove our processes, process concepts, unit operations and for other purposes in order to optimize feedstocks and the processes used for producing hydrocarbons from alcohols. Currently, the activities at the Luverne Facility are minimized to care and maintenance, as the Company ~~believes that~~has shifted focus to the ~~attainment of profitable operations is dependent upon future events, including, but not limited to (i) the successful development of the Company's initial~~ Net-Zero Project (the "Net-Zero 1 Project"); future projects for the production of energy-dense liquid hydrocarbons using renewable energy and our proprietary technology; and (ii) the achievement of a level of revenues adequate to support its cost structure.Projects.

Basis of presentation. The accompanying unaudited condensed consolidated financial statements ~~of the Company~~ have been prepared ~~without audit, pursuant~~in accordance with U.S. generally accepted accounting principles (“GAAP”) along with the instructions to Form 10-Q and

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

Article 10 of Regulation S-X assuming the ~~rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).~~Company will continue as a going concern. Accordingly, they do not include all information and footnotes required by ~~accounting principles generally accepted in the United States (“GAAP”)~~GAAP for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company as of, and for the ~~six~~nine months ended, ~~June~~September 30, 2022, and are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited consolidated financial

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~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

statements and notes thereto included under the heading “Financial Statements and Supplementary Data” in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The financial statements at December 31, 2021, have been derived from the audited financial statements as of that date. For further information, refer to our audited financial statements and notes thereto included for the year ended December 31, 2021 (the "2021 Annual Report").

Environmental Attribute Inventory. The Company generates D3 RINs Renewable Identification Numbers ("RINs") and Low Carbon Fuel Standard ("LCFS") credits (collectively, "environmental attributes") through the production of RNG used for transportation purposes as prescribed under the Renewable Fuels Standard program ("RFS"). The Company considers environmental attributes to be a distinguishable product that is generated as an integral component of the production process of RNG as the environmental attributes that are generated can be separated from the underlying commodity and may be sold independently from the RNG produced. As such, the Company considers environmental attributes to be a co-product of the production of RNG and accordingly allocates the costs of production based on the relative sales value of all revenue items for the NW Iowa RNG operations. Revenue is recognized on these environmental attributes when there is an agreement in place to monetize the credits at an agreed upon price with a customer based upon defined third party market prices and a transfer of control has occurred.

Reclassifications. The Company reclassified certain prior period amounts to conform to the current period ~~presentation, including~~presentation. The reclassifications included the categorization of depreciation and amortization on the Consolidated Statements of ~~Operations. These reclassifications~~Operations and had no impact on total revenues, total cost of goods sold, total operating expenses, net loss or stockholders' equity for any period.

2.Revenues from Contracts with Customers and Other Revenues

The ~~Company's~~Company’s revenues are primarily comprised of the sale of RNG and related environmental attributes produced at the NW Iowa RNG facility under long-term contracts with customers. Revenue is recognized at a point in time when the Company transfers the product to its customer as the customer obtains control of the product upon delivery. The Company generally has a single performance obligation in our arrangements with customers. The Company’s performance obligation related to the sales of RNG and related environmental attributes are satisfied at a point in time upon delivery to the customer.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products. There is no variable consideration present in the Company’s performance obligations. Consideration for each transaction is based upon quoted market prices at the time of delivery. The Company recognized $0.3 million of revenue from the sale of RNG during each of the three and nine months ended September 30, 2022, and recognized no revenue from the sale of environmental attributes during each of the three and nine months ended September 30, 2022, due to the timing of governmental approval for the issuance of such environmental attributes.

The Company recorded limited revenues ~~are derived~~ from its development-scale plant, the Luverne ~~Facility.~~Facility, during the three and nine months ended September 30, 2022, and 2021. These revenues ~~are~~were promotional in nature and from customer contracts for ethanol sales and related products and hydrocarbon revenues, which ~~include~~included SAF, isooctene, and isooctane. These products ~~are~~were sold mostly on a free-on-board, shipping point basis (recognized at a point in time), ~~are~~were independent transactions, do did not provide post-sale support or promises to deliver future goods, and ~~are~~were single performance obligations.

3.Asset Impairment

During the three and nine months ended September 30, 2022, the Company recorded a $24.7 million impairment loss on long-lived assets, to reduce the carrying value of certain property, plant, and equipment, and a leased right of use ("ROU") asset, at the Agri-Energy, LLC ("Agri-Energy") segment to its fair value. The impairments recorded to date relate to the determination to suspend production at the Luverne Facility and shift the plant into an idled, care and maintenance

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

status during the three months ended September 30, 2022. As a result of this change in use, combined with a sustained history of operating losses, the Company assessed that indicators of impairment were present for long-lived assets within its Agri-Energy reporting segment. The Company therefore performed impairment testing and determined that, as of September 30, 2022, the carrying amounts of certain property plant and equipment, and the leased ROU asset exceeded estimated fair values. The Company estimated the fair value of these asset groups generally using a cost approach which is based on replacement or reproduction costs of the assets and is considered a Level 2 measurement and recorded a corresponding impairment loss under Operating Expenses within the Consolidated Statements of Operations.

4.Net loss Per Share

Basic net loss per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted net loss per share is calculated based on the assumption that stock options and other dilutive securities outstanding, which have an exercise price less than the average market price of the Company's common shares during the period, would have been exercised on the later of the beginning of the period or the date granted, and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. None of the Company's stock options or other dilutive securities are considered to be dilutive in periods with net losses.

The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Diluted net loss per share ~~for the six months ended June 30, 2022, and 2021~~ excluded ~~22,464,715 and 202,356, respectively, of~~ common stock equivalents because the effect of their inclusion would be anti-dilutive or would decrease the reported net loss per share. Therefore, the following number of potentially dilutive common stock equivalents have been excluded 1,193,436 and 1,716,010 for the three and nine months ended September 30, 2022, respectively, and 4,835,752 and 4,835,752, for the three and nine months ended September 30, 2021, respectively.

Basic and diluted net loss per share is calculated as follows (net loss in thousands):

Three months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Net loss $ (13,161) $ (18,253) $ (28,834) $ (28,310)
Basic weighted-average shares outstanding 209,809,994 198,137,420 205,889,651 190,892,223
Basic net loss per share $ (0.06) $ (0.09) $ (0.14) $ (0.15)

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

4.~~Prepaid and Other Current Assets~~

~~The following table sets forth the components of the Company’s prepaid and other current assets (in thousands) as of:~~

June 30, 2022 December 31, 2021
Prepaid insurance $ 1,543 $ 805
Interest receivable 1,022 1,530
Prepaid engineering (1)
900 409
Tax refunds 401 —
Prepaid other 1,409 863
Total Prepaid and other current assets $ 5,275 $ 3,607


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net loss	$	(43,786)	$	(14,380)	$	(72,620)	$	(42,690)
Basic weighted-average shares outstanding	236,649,805		199,341,519		216,255,710		193,739,605
Net loss per share - basic and diluted	$	(0.19)	$	(0.07)	$	(0.34)	$	(0.22)

~~(1)~~The impact of the one-time impairment charge of $24.7 million, discussed in Note 3 above, was $0.10 and $0.11 of basic and diluted impairment loss per share for the three and nine months ended September 30, 2022~~Related to the Net-Zero 1 Project development.~~, respectively.

5.Marketable Securities

The Company's investments in marketable securities are stated at fair value and are available-for-sale. The following table summarizes the Company's investments in marketable securities (in thousands) as of:


			June 30, 2022								September 30, 2022
		Maturity	Amortized Cost Basis		Gross Unrealized Losses		Fair Value			Maturity	Amortized Cost Basis		Gross Unrealized Losses		Fair Value

Short-term marketable securities	Short-term marketable securities								Short-term marketable securities
U.S. Treasury notes	U.S. Treasury notes	Within one year	$	162,238	$	(800)	$	161,438	U.S. Treasury notes	Within one year	$	109,327	$	(729)	$	108,598
U.S. Government-sponsored enterprise securities	U.S. Government-sponsored enterprise securities	Within one year	137,649		(1,456)		136,193		U.S. Government-sponsored enterprise securities	Within one year	114,853		(1,439)		113,414
Total short-term marketable securities	Total short-term marketable securities		$	299,887	$	(2,256)	$	297,631	Total short-term marketable securities		$	224,180	$	(2,168)	$	222,012

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)


		December 31, 2021
	Maturity	Amortized Cost Basis		Gross Unrealized Losses		Fair Value

Short-term marketable securities
U.S. Treasury notes	Within one year	$	226,136	$	(344)	$	225,792
U.S. Government-sponsored enterprise securities	Within one year	49,618		(70)		49,548
Total short-term marketable securities		$	275,754	$	(414)	$	275,340

Long-term marketable securities
U.S. Government-sponsored enterprise securities	Within two years	64,596		(200)		64,396
Total long-term marketable securities		$	64,596	$	(200)	$	64,396

The cost of securities sold is based upon the specific identification method. Interest receivable related to the marketable securities of ~~$1.0~~$0.7 million was included within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets as of ~~June~~September 30, 2022.

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~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

Interest income from marketable securities totaled $1.2 million and ~~$2.7~~$3.9 million for the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively and nil for both the three and ~~six~~nine months ended ~~June~~September 30, 2021. Interest income from marketable securities is included in "Investment income (loss)" in the Consolidated Statements of Operations.

Future maturities of the Company's marketable securities are ~~$131.4~~$55.8 million in 2022 and $168.6 million in 2023.

6.Restricted Cash

Short-term and long-term restricted cash of $77.9 million consists of amounts held as collateral for letters of credit to provide financing support for development and construction of the NW Iowa RNG and NZ1 projects.

The Company entered into an irrevocable direct pay letter of credit (the "Bond Letter of Credit") with Citibank N.A ("Citibank") in April 2021 to support the 2021 Bonds for the development and construction of NW Iowa RNG. See Note 14, Debt, for additional information on the 2021 Bonds. The Bond Letter of Credit has a 0.5% annual fee and expires April 4, 2024 (unless terminated earlier). The Company deposited $71.2 million with Citibank as restricted cash to secure any amounts drawn under the Bond Letter of Credit. The Company is entitled to receive interest income on the restricted cash. As of September 30, 2022, no amounts have been drawn under the Bond Letter of Credit.

The proceeds from issuance of the 2021 Bonds recorded as restricted cash are maintained by the Trustee under the Indenture and are released to the Company to pay costs of the construction of NW Iowa RNG. The Company has used all bond proceeds for the project as of September 30, 2022.

In September 2022, the Company entered into a Pledge and Assignment agreement with Citibank to provide credit support in the form of a letter of credit (the “Power Letter of Credit”) from Citibank to the local electric utility company in order to induce the utility company to design and construct the power transmission and distribution facilities that will serve NZ1. The Company deposited $6.6 million of restricted cash in an account with Citibank to collateralize the Power Letter of Credit, which has a 0.3% annual fee and expires September 30, 2024 (unless terminated earlier). As of September 30, 2022, no amounts have been drawn under the Power Letter of Credit.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

7.Prepaid and Other Current Assets

The following table sets forth the components of the Company’s prepaid and other current assets (in thousands) as of:


	September 30, 2022		December 31, 2021
Prepaid insurance	$	906	$	805
Interest receivable	688		1,530
Prepaid engineering	900		409
Tax refunds	195		—
Prepaid other	946		863
Total Prepaid and other current assets	$	3,635	$	3,607

8.Leases, Right-of-Use Assets and Related Liabilities

The Company is party to an operating lease contract for the Company’s office and research facility in Englewood, Colorado, which expires in January 2029. The lease contains an option to extend the lease which management does not reasonably expect to exercise, so it is not included in the length of the term. The Company also has one production line piece of equipment with an operating lease that expires in 2024. As of ~~June~~September 30, 2022, right-of-use assets under operating leases totaling ~~$2.1~~$1.7 million are included in "Operating right-of use assets," and the related lease liabilities totaling $2.2 million ($0.4 million in current and ~~$1.8~~$1.7 million in long-term) are included in the Consolidated Balance Sheets.

The Company also has 4four finance leases for land under arrangements related to NW Iowa RNG. Under these contracts, the Company leases land from dairy farmers on which it has built 3three anaerobic digesters, and related equipment and pipelines to condition raw biogas from cow manure provided by the farmers. The partially conditioned biogas is transported from the 3three digester sites to a central gas upgrade system located at the fourth site that ~~will upgrade~~upgrades the biogas to ~~pipeline quality~~pipeline-quality RNG for sale. These leases expire at various dates between 2031 and 2050. The Company amended one of its leases in June 2022, which the Company treated as an existing lease modification due to an increase in the price per unit, resulting in an increase of the lease liability and right-of-use-asset by $0.8 million.

Since the Company elected the practical expedient to combine lease and non-lease components, all amounts paid to the lessors under these arrangements for cow manure and non-lease services are classified as lease payments and are included in the calculation of the right-of-use assets and lease liabilities. This results in significantly higher right-of-use assets and lease liabilities than if the Company did not elect this practical expedient. As of ~~June~~September 30, 2022, right-of-use assets under finance leases totaling ~~$27.5~~$27.0 million are included in "Finance right-of-use assets," and related lease liabilities totaling ~~$22.6~~$18.5 million are included in the Consolidated Balance Sheets.

The following four tables present the (a) costs by lease category, (b) other quantitative information, and (c) future minimum payments under non-cancelable financing and operating leases as they relate to the Company’s leases (in thousands), except for weighted averages:


		Three months Ended June 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021			2022		2021		2022		2021
Finance lease cost:	Finance lease cost:					Finance lease cost:
Amortization of right-of-use assets (1)	Amortization of right-of-use assets (1)	$	488	$	447	Amortization of right-of-use assets (1)	$	470	$	464	$	1,395	$	930
Interest on lease liabilities (1)	Interest on lease liabilities (1)	251		316		Interest on lease liabilities (1)	423		297		948		627
Operating lease cost	Operating lease cost	139		67		Operating lease cost	139		64		416		192
Short-term lease cost	Short-term lease cost	572		495		Short-term lease cost	—		377		1,449		1,003
Variable lease cost (2)	Variable lease cost (2)	73		31		Variable lease cost (2)	—		94		951		164
Total lease cost	Total lease cost	$	1,523	$	1,356	Total lease cost	$	1,032	$	1,296	$	5,159	$	2,916

1.Amortization and interest on finance lease liabilities of $0.7 million and $0.8 million was capitalized as construction-in-progress for the three months ended June 30, 2022, and June 30, 2021, respectively.

2.Represents amounts incurred in excess of minimum payments, including payments for common area expenses under our office and research facility lease, and additional amounts due under our NW Iowa RNG leases based on the number of cows maintained by the owners above the minimum required by the contracts of the respective facilities.

1314

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

Six Months Ended June 30,
2022 2021
Finance lease cost:
Amortization of right-of use assets (1)
$ 949 $ 458
Interest on lease liabilities (1)
525 316
Operating lease cost 277 67
Short-Term lease cost 1,449 495
Variable lease cost (2)
951 31
Total lease cost $ 4,151 $ 1,367

1.(1)~~$1.5~~Amortization and interest on finance lease liabilities capitalized as construction-in-progress totaled $0.3 million and $2.0 million during the three and nine months ended September 30, 2022, respectively, and nil and $0.8 million ~~of amortization~~during the three and ~~interest expense for the six~~nine months ended ~~June~~September 30, ~~2022, and~~ 2021, ~~respectively, were capitalized as part of construction in progress. The accumulated~~respectively. Total capitalized amounts of ~~$3.7~~$2.8 million isare included in "Property, plant and equipment, net" in the Consolidated Balance Sheets ~~as the~~ related to NW Iowa RNG facilities ~~were still under construction on June~~as of September 30, 2022.

2.(2)Represents amounts incurred in excess of minimum payments, including payments for common area expenses under our office and research facility lease, and additional amounts due under our NW Iowa RNG leases based on the number of cows maintained by the owners above the minimum required by the contracts of the respective facilities.


		Six Months Ended June 30,					Nine Months Ended September 30,
		2022		2021			2022		2021
Other Information	Other Information					Other Information
Cash paid for amounts included in the measurement of lease liabilities:	Cash paid for amounts included in the measurement of lease liabilities:					Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	Operating cash flows from finance leases	$	241	$	321	Operating cash flows from finance leases	$	627	$	627
Operating cash flows from operating leases	Operating cash flows from operating leases	$	359	$	128	Operating cash flows from operating leases	$	431	$	192
Finance cash flows from finance leases	Finance cash flows from finance leases	$	87	$	3,046	Finance cash flows from finance leases	$	4,316	$	5,975
Right-of-use asset obtained in exchange for new finance lease liabilities	Right-of-use asset obtained in exchange for new finance lease liabilities	$	834	$	27,775	Right-of-use asset obtained in exchange for new finance lease liabilities	$	834	$	28,416
Right-of-use asset obtained in exchange for new operating lease liabilities	Right-of-use asset obtained in exchange for new operating lease liabilities	$	—	$	1,562	Right-of-use asset obtained in exchange for new operating lease liabilities	$	—	$	1,611
Weighted-average remaining lease term, finance lease (months)	Weighted-average remaining lease term, finance lease (months)	216		218		Weighted-average remaining lease term, finance lease (months)	208		225
Weighted-average remaining lease term, operating leases (months)	Weighted-average remaining lease term, operating leases (months)	68		91		Weighted-average remaining lease term, operating leases (months)	66		88
Weighted-average discount rate - finance leases (1)	Weighted-average discount rate - finance leases (1)	10%		5%		Weighted-average discount rate - finance leases (1)	10%		5%
Weighted-average discount rate - operating leases (1)	Weighted-average discount rate - operating leases (1)	5%		5%		Weighted-average discount rate - operating leases (1)	5%		5%

(1)Our leases do not provide an implicit interest rate, we calculate the lease liability at lease commencement as the present value of unpaid lease payments using our estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease.

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

Year ending December 31,
Operating Leases
Finance Leases
2022 (remaining) $ 376 $ 7,282
2023 529 1,554
2024 306 2,730
2025 315 1,744
2026 325 1,760
2027 and thereafter 707 29,583
Total 2,558 44,653
Less: Amounts representing present value discounts 349 22,018
Total lease liabilities 2,209 22,635
Less: current portion 423 6,293
Long-term portion $ 1,786 $ 16,342

7.~~Inventories~~

~~The following table sets forth the components of the Company’s inventory balances (in thousands) as of:~~

June 30, 2022 December 31, 2021
Raw materials:
Corn $ 179 $ 301
Enzymes and other inputs 57 186
Palladium 203 265
Finished goods:
SAF, Isooctane, Isooctene and other 504 335
Isobutanol 124 223
Ethanol 146 96
Work in process:
Agri-Energy 51 83
Gevo 71 —
Spare parts 1,314 1,262
Total inventories $ 2,649 $ 2,751

~~Work in process inventory includes unfinished SAF, isooctane, and isooctene inventory.~~

~~During the six months ended June 30, 2022, the Company adjusted its finished goods and work in process inventory to net realizable value~~ ~~and recorded a $0.8 million loss in cost of goods sold. There were no net realizable losses recorded during the~~ ~~six months ended June 30, 2021, as the Luverne Facility was temporarily shut down due to the COVID-19 pandemic.~~


Year ending December 31,	Operating Leases		Finance Leases
2022 (remaining)	$	303	$	1,772
2023	528		1,576
2024	305		2,730
2025	315		1,744
2026	324		1,760
2027 and thereafter	706		30,499
Total	2,481		40,081
Less: Amounts representing present value discounts	317		21,607
Total lease liabilities	2,164		18,474
Less: current portion	430		2,125
Long-term portion	$	1,734	$	16,349

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

8.9.Inventories

The following table sets forth the components of the Company’s inventory balances (in thousands) as of:


	September 30, 2022		December 31, 2021
Raw materials:
Corn	$	—	$	301
Enzymes and other inputs	31		186
Catalyst materials	203		265
Finished goods:
SAF, Isooctane, Isooctene and other	221		335
Isobutanol	124		223
Ethanol	—		96
Work in process:
Isobutanol	—		83
Jet fuel	51		—
Spare parts	1,432		1,262
RNG - environmental attributes	2,073		—
Total inventories	$	4,135	$	2,751

Environmental attributes represent distinguishable and material output from our RNG operations. The Company started allocating the joint cost of production to the sales value of RNG, credits from California's LCFS program and U.S. Environmental Protection Agency ("EPA") RIN credits. The value of the environmental attributes is reviewed for potential write-downs based on the net realizable value methodology.

During the three and nine months ended September 30, 2022, the Company adjusted its finished goods and work in process inventory to net realizable value and recorded a nil and $0.8 million loss, respectively, in cost of goods sold, as compared to $1.2 million and $2.0 million during the three and nine months ended September 30, 2021, respectively.

10.Property, Plant and Equipment

The following table sets forth the Company’s property, plant and equipment by classification (in thousands) as of:


		Useful Life (in years)			June 30, 2022		December 31, 2021			September 30, 2022		December 31, 2021
Land	Land				$	410	$	410	Land	$	6,452	$	410
Plant facilities and infrastructure	Plant facilities and infrastructure	5	to	20	84,117		84,117		Plant facilities and infrastructure			76,310		84,117
Machinery and equipment	Machinery and equipment	5	to	10	25,416		25,369		Machinery and equipment			89,797		25,369
Furniture and office equipment	Furniture and office equipment	3	to	7	2,606		2,550		Furniture and office equipment			2,699		2,550
Software	Software	3	to	6	1,621		1,564		Software			2,134		1,564
Construction in progress	Construction in progress				128,080		88,990		Construction in progress	56,713		88,990
Total property, plant and equipment	Total property, plant and equipment				242,250		203,000		Total property, plant and equipment			234,105		203,000
Less accumulated depreciation and amortization	Less accumulated depreciation and amortization				(66,196)		(63,859)		Less accumulated depreciation and amortization			(68,101)		(63,859)
Property, plant and equipment, net	Property, plant and equipment, net				$	176,054	$	139,141	Property, plant and equipment, net			$	166,004	$	139,141

The Company recorded depreciation ~~expense~~expenses of ~~$1.2~~$1.3 million and ~~$2.3~~$3.6 million for the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively, as compared with $1.2 million and ~~$2.4~~$3.6 million for the same periods ended ~~June~~September 30, 2021.

At ~~June~~September 30, 2022, construction in progress included accruals of ~~$11.5~~$9.2 million.

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

Construction in progress includes ~~$0.8~~$0.3 million for Gevo, ~~$13.4~~$12.0 million for ~~our subsidiary,~~ Agri-Energy ~~LLC ("Agri-Energy") $75.5~~related to a fractionation and hydrocarbon skid, $2.1 million for NW Iowa RNG and ~~$38.4~~$42.3 million for ~~the Net-Zero 1 Project~~NZ1 at ~~June~~September 30, 2022. Construction in progress includes $0.4 million for Gevo, $9.1 million for Agri-Energy, $56.9 million for NW Iowa RNG and $22.5 million for ~~the Net-Zero 1 Project~~NZ1 at December 31, 2021. Construction in progress is not subject to depreciation until the assets are placed into service.

Borrowing costs. Borrowing costs directly attributable to acquisition and construction of an asset are capitalized until it is completed and ready for its intended use, and thereafter are recognized in profit or loss for the current period. The Company capitalized ~~$0.8~~$1.2 million and nil of interest expense for the ~~six~~nine months ended ~~June~~September 30, 2022, and ~~June~~September 30, 2021, respectively.

9.11.Intangible Assets

Intangible assets consist of patents, which management evaluates to determine whether they (i) support current products, (ii) support planned research and development, or (iii) prevent others from competing with Gevo's products.

The following table sets forth the Company’s identifiable intangible assets by classification (in thousands) as of:


		June 30, 2022								September 30, 2022
		Gross Carrying Amount		Accumulated Amortization		Identifiable Intangible Assets, Net		Weighted-Average Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Identifiable Intangible Assets, net		Weighted-Average Useful Life (Years)
Patents	Patents	$	4,580	$	(664)	$	3,916	7.3	Patents	$	4,580	$	(888)	$	3,692	7.4
Defensive assets	Defensive assets	4,900		(452)		4,448		8.4	Defensive assets	4,900		(597)		4,303		8.4
Identifiable intangible assets	Identifiable intangible assets	$	9,480	$	(1,116)	$	8,364	7.9	Identifiable intangible assets	$	9,480	$	(1,485)	$	7,995	7.9


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Identifiable Intangible Assets, Net		Weighted-Average Useful Life (Years)
Patents	$	4,575	$	(368)	$	4,207	7.3
Defensive assets	4,895		(164)		4,731		8.4
Identifiable intangible assets	$	9,470	$	(532)	$	8,938	7.9

The Company recorded amortization expense of $0.4 million and $1.0 million for the three and nine months ended September 30, 2022, respectively, as compared with nil for each of the three and nine months ended September 30, 2021.

1617

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

December 31, 2021
Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, Net Weighted-Average Useful Life (Years)
Patents $ 4,575 $ (368) $ 4,207 7.3
Defensive assets 4,895 (164) 4,731 8.4
Identifiable intangible assets $ 9,470 $ (532) $ 8,938 7.9

The Company recorded amortization expense of $0.3 million and $0.6 million for the three and six months ended June 30, 2022, respectively, as compared with nil and nil for the same periods ended June 30, 2021.

The following table details the estimated amortization of identifiable intangible assets as of~~June~~ September 30, 2022 (in (in thousands):


Year ending December 31,	Year ending December 31,	Patents		Defensive Assets		Total		Year ending December 31,	Patents		Defensive Assets		Total
2022 (remaining)	2022 (remaining)	$	304	$	297	$	601	2022 (remaining)	$	151	$	153	$	304
2023	2023	599		586		1,185		2023	578		586		1,164
2024	2024	601		588		1,189		2024	580		588		1,168
2025	2025	599		586		1,185		2025	578		586		1,164
2026	2026	585		586		1,171		2026	578		586		1,164
2027 and thereafter	2027 and thereafter	1,228		1,805		3,033		2027 and thereafter	1,227		1,804		3,031
Total	Total	$	3,916	$	4,448	$	8,364	Total	$	3,692	$	4,303	$	7,995

~~10.~~12.Deposits and Other Assets

The following table sets forth the components of the Company's ~~Deposits~~deposits and other assets (in thousands) as of:


		June 30, 2022		December 31, 2021			September 30, 2022		December 31, 2021
Deposits (1)	Deposits (1)	$	991	$	831	Deposits (1)	$	276	$	831
Equity interest (2)	Equity interest (2)	1,500		1,500		Equity interest (2)	1,500		1,500
Exclusivity fees (3)	Exclusivity fees (3)	3,250		3,250		Exclusivity fees (3)	8,087		3,250
Deposits receivable (4)						Deposits receivable (4)	8,302		—
Total Deposits and Other Assets	Total Deposits and Other Assets	$	5,741	$	5,581	Total Deposits and Other Assets	$	18,165	$	5,581

(1)Deposits for legal services and ~~product~~products for ~~the Net-Zero 1 Project.~~NZ1.

(2)The Company directly holds a 4.6% interest ofin the Series A Preferred Stock inof Juhl Clean Energy Assets, Inc. ("Juhl"), which is not a publicly listed entity with a readily determinable fair value. The Company therefore measures the securities at cost, which is deemed to be the value indicated by the last observable transaction in Juhl's stock, subject to impairment. The equity interest in Juhl is also pledged as collateral against two future obligations to Rock County Wind Fuel, LLC ("RCWF"), a Juhl subsidiary, see ~~Footnote 15,~~Note 17, Commitments and Contingencies, for additional information.

(3)Axens North America, Inc. ("Axens") will provide certain alcohol-to-SAF services exclusively to the Company which may be offset against future license fees subject to the delivery of a process design package. On October 14, 2022, the Company entered into a licensing agreement with Axens to support development of the Company's alcohol-to-SAF process, incurring $4.2 million of licensing fees which will be offset against these prepaid exclusivity fees.

(4)Deposits provided to a developer of certain wind-farm projects and power utility contractor to induce to design and construct the power generation, transmission and distribution facilities that will serve NZ1, $5.5 million of which will be either reimbursed or used as an investment into wind generation facility and the remaining $2.8 million is expected to be fully reimbursed upon completion of the project. Gevo has contractual priority liens against the equipment and constructed facilities under the contracts.

1718

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

~~11.~~13.Accounts Payable and Accrued Liabilities

The following table sets forth the components of the Company's accounts payable and accrued liabilities (in thousands) as of:


		June 30, 2022		December 31, 2021			September 30, 2022		December 31, 2021
Accounts payable	Accounts payable	$	3,378	$	4,830	Accounts payable	$	1,449	$	4,830
Accrued liabilities	Accrued liabilities	11,519		18,345		Accrued liabilities	8,800		18,345
Accrued payroll and related benefits	Accrued payroll and related benefits	3,454		4,678		Accrued payroll and related benefits	4,189		4,678
Other accrued liabilities	Other accrued liabilities	399		435		Other accrued liabilities	478		435
Total accounts payable and accrued liabilities	Total accounts payable and accrued liabilities	$	18,750	$	28,288	Total accounts payable and accrued liabilities	$	14,916	$	28,288

~~12.~~14.Debt

2021 Bond Issuance

On April 15, 2021, on behalf of Gevo NW Iowa RNG, LLC, the Iowa Finance Authority ~~("the~~(the "Authority") issued $68,155,000 of its non-recourse Solid Waste Facility Revenue Bonds (Gevo NW Iowa RNG, LLC Renewable Natural Gas Project), Series 2021 (Green Bonds) (the "2021 Bonds") for NW Iowa RNG. The bond proceeds are being used as a source of construction financing alongside equity from the Company. The bonds were issued under a Trust Indenture dated April 1, 2021 (the "Indenture") between the Authority and Citibank, N.A. as trustee (the "Trustee"). The 2021 Bonds mature April 1, 2042. The bonds initially bear interest at ~~1.50%~~1.5% per annum during the Initial Term Rate Period, (as defined in the Indenture), payable semi-annually on January 1 and July 1 of each year. The effective interest rate is 1%1.0%. The bonds are supported by athe $71.2 million ~~irrevocable direct pay letter of credit (the "Letter of Credit") with a 1/2% annual fee, paid quarterly. The~~Bond Letter of ~~Credit expires April 4, 2024 (unless terminated earlier), and was issued by Citibank N.A.~~Credit; see Note 6, Restricted Cash. The Trustee can draw sufficient amounts on the Bond Letter of Credit to pay the principal and interest until the first mandatory tender date of April 1, 2024. The bonds are callable and re-marketable on or after October 1, 2022. If the bonds have not been called and re-marketed by the first mandatory tender date, the Trustee may draw on the Bond Letter of Credit to repay the bonds in their entirety at the purchase price. ~~Gevo deposited $71.2 million with the Trustee as restricted cash to secure any amounts drawn under the Letter of Credit.~~ As of ~~June~~September 30, 2022, no amounts have been drawn under the ~~Letter of Credit.~~

Gevo anticipates re-marketing the 2021 Bonds in the fall of 2022 under revised terms that will include a long-term maturity date and be non-recourse to Gevo. Upon a successful remarketing, Gevo anticipates that the Letter of Credit, the associated reimbursement agreement and the associated pledge of cash will be terminated, with a concurrent release of the restricted cash securing theBond Letter of Credit.

The 2021 Bonds were issued at a premium of $0.8 million and debt issuance costs were $3.0 million. The bond debt is classified as long-term debt and is presented net of the premium and issuance costs, which are being amortized over the life of the bonds using the interest method. As of ~~June~~September 30, 2022, the premium balance and the debt issuance cost net of amortization were $0.5 million and ~~$1.9~~$1.5 million, respectively.

~~Restricted cash and cash equivalents~~. The Company’s restricted cash and cash equivalents consists of unused proceeds from the issuance of the 2021 Bonds and are restricted for the purpose of constructing NW Iowa RNG projects as well as amounts pledged and assigned to the Trustee in its capacity as provider of the Letter of Credit as collateral for the reimbursement obligations of Gevo.

The proceeds from issuance of the 2021 Bonds are maintained by the Trustee under the Indenture and are released to the Company only to pay costs of the construction of NW Iowa RNG. The Company has used $63.8 million for the project. As of June 30, 2022, unused bond proceeds of $5 million are included in restricted cash and classified as current since the proceeds will be distributed within 12 months.

~~As ofJune 30, 2022~~, ~~$71.2 million is held in restricted cash as collateral for the Letter of Credit. The Company is entitled to receive interest income on the restricted cash.~~

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

~~The restricted cash held by the Trustee is made up of the following (in thousands), which amounts are reflected since inception and as of, as applicable:~~


	~~June 30, 2022~~
~~Bond proceeds~~	$	~~68,995~~
~~Disbursement of funds~~	~~(63,809)~~
~~Interest paid on bonds~~	~~(727)~~
~~Funds transferred to current restricted assets (to pay interest on bonds)~~	~~413~~
~~Interest income~~	—
~~Total restricted bond cash held by Trustee~~	~~4,872~~
~~Restricted cash for bond collateral held by Trustee~~	~~71,278~~
~~Total restricted cash held by Trustee~~	~~76,150~~
~~Current restricted cash held by Trustee~~	~~(5,894)~~
~~Long-term restricted cash held by Trustee~~	$	~~70,256~~

Loans Payable - Other

~~The equipment loans are secured by the related equipment.~~

In April 2020, the Company and Agri-Energy each entered into a loan agreement with Live Oak Banking Company, pursuant to which the Company and Agri-Energy obtained loans from the Small Business Administration's Paycheck Protection Program (“SBA PPP”) totaling $1.0 million in the aggregate (the "SBA Loans").

In April 2021, the ~~Small Business Administration forgave the~~ entire balance of $0.5 million of the Company's and $0.1 million of Agri-Energy's loans and accrued interest obtained through the SBA ~~PPP.~~PPP were forgiven. The remaining SBA Loan for Agri-Energy totals $0.3 million, bears interest at 1.0% per annum and matures in April 2025. Monthly payments of $8,230, including interest, began on June 5, 2021, and are payable through April 2025.

Table of Contents

GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

The summary of the Company's long-term debt is as follows (in thousands) as of:


		Interest Rate			Maturity Date			June 30, 2022		December 31, 2021			Interest Rate			Maturity Date			September 30, 2022		December 31, 2021
2021 Bonds	2021 Bonds	1.5%			January 2042			$	66,853	$	66,486	2021 Bonds	1.5%			January 2042			$	67,038	$	66,486
SBA Loans	SBA Loans	1.0%			April 2025			272		320		SBA Loans	1.0%			April 2025			248		320
Equipment	Equipment	4%	to	5%	February 2022	to	December 2024	124		156		Equipment	4%	to	5%	February 2022	to	December 2024	109		156
Total loans payable - other	Total loans payable - other							67,249		66,962		Total loans payable - other							67,395		66,962
Less current portion	Less current portion							(158)		(158)		Less current portion							(158)		(158)
Long-term portion	Long-term portion							$	67,091	$	66,804	Long-term portion							$	67,237	$	66,804

Future principal payments for the Company's long-term debt are as follows (in thousands):


Year Ending December 31,	Year Ending December 31,	Total Debt		Year Ending December 31,	Total Debt
2022 (remaining)	2022 (remaining)	$	78	2022 (remaining)	$	39
2023	2023	159		2023	159
2024	2024	66,983		2024	67,167
2025	2025	29		2025	30
2026		—

Total loans payable - other	Total loans payable - other	$	67,249	Total loans payable - other	$	67,395

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

~~13.~~15.Stock-Based Compensation

Equity incentive plans. In February 2011, the Company’s stockholders approved the Gevo, Inc. 2010 Stock Incentive Plan (as amended and restated to date, the "2010 Plan"), and the Employee Stock Purchase Plan (the "ESPP").

The 2010 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units and other equity awards to employees and directors of the Company. OnIn June 9, 2021, upon approval of stockholders at the 2021 Annual Meeting of Stockholders, the 2010 Plan was amended and restated, which increased the number of shares of common stock reserved for issuance under the 2010 Plan to 22,980,074 shares. On ~~June~~September 30, 2022, ~~7,645,467 share~~s4,113,735 shares remained available for awards under the 2010 Plan.

~~Restricted common stock and non-qualified stock option activity during the six months ended June 30, 2022,consisted of the following:~~

~~Period~~

~~Total Number of Restricted Shares Issued~~

~~Total Number of Non-qualified Stock Options Granted~~

~~Vesting Periods Years~~

~~January 1, 2022 to March 31, 2022~~ ~~(1)~~

~~(340,502)~~

—

~~N/A~~

~~April 1, 2022 to June 30, 2022~~ ~~(1)~~

~~(165,174)~~

—

~~N/A~~

~~Total~~

~~(505,676)~~

—

~~(1)Includes shares of common stock cancelled in relation to unvested restricted stock awards.~~

~~Employee Stock Purchase Plan ("ESPP")~~. The offering periods for the ESPP are from January 1 to June 30 and from July 1 to December 31 of each calendar year. The Company has reserved 190 shares of common stock for issuance under the ESPP, of which 190 shares as of June 30, 2022, are available for future issuance. The purchase price of the common stock under the ESPP is 85% lower than the fair market value of a share of common stock on the first or last day of the purchase period. There were no ~~purchases of common stock under the ESPP during the six months ended June 30, 2022,or 2021~~.

Stock Appreciation Rights. The Company granted 67,739 stock appreciation rights valued at an aggregate of $0.1 million on the respective grant dates ~~of grant~~ during the year ended December 31, ~~2018.~~2018, with exercise prices ranging from $3.45 to $138.00 per share, expiring in 2028. The vesting period for stock appreciation rights granted ~~are~~is based ~~upon~~on a service period. The stock appreciation rights have the potential to be cash settled ~~in the event there are insufficient shares available from the 2010 Plan~~ and are therefore classified as a liability and remeasured at each reporting period based on the price of the Company's common stock.

Stock-based compensation expense. The Company records stock-based compensation expense during the requisite service period for ~~share-based~~stock-based payment awards granted to employees and non-employees. Our stock-based compensation is classified as either an equity award or a liability award in accordance with generally accepted accounting principles. The fair value of an equity-classified award is determined at the grant date and is amortized on a straight-line basis over the vesting life of the award. The fair-value of a liability-classified award is determined on a quarterly basis through the final vesting date and is amortized based on the current fair value of the award and the percentage of vesting period incurred to date.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

The following table sets forth the Company’s stock-based compensation expense for the periods indicated (in thousands):


		Three months Ended June 30,				Six Months Ended June 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2022		2021		2022		2021
Equity Classified Awards	Equity Classified Awards									Equity Classified Awards
Stock options
Cost of goods sold	Cost of goods sold	$	89	$	—	$	174	$	—	Cost of goods sold	$	208	$	188	$	599	$	188
Research and development		83		—		134		—
Selling, general and administrative	Selling, general and administrative	1,625		—		3,069		—		Selling, general and administrative	3,910		1,419		10,992		2,593
Preliminary stage projects		3		—		8		—
Other		99		—		193		—
Restricted stock
Cost of goods sold		109		—		217		—
Research and development		95		121		153		246
Selling, general and administrative		1,963		737		4,013		1,174
Preliminary stage projects		13		—		24		—
Other	Other	141		—		279		—		Other	243		273		1,034		519
Total equity classified awards	Total equity classified awards	4,220		858		8,264		1,420		Total equity classified awards	4,361		1,880		12,625		3,300
Liability Classified Awards	Liability Classified Awards									Liability Classified Awards
Restricted stock
Selling, general and administrative	Selling, general and administrative	(381)		—		(188)		—		Selling, general and administrative	(267)		2,366		(460)		2,374
Stock appreciation rights
Research and development		(126)		(159)		(126)		189
Selling, general and administrative		(26)		(7)		(5)		8
Other										Other	126		(40)		—		149
Total liability classified awards	Total liability classified awards	(533)		(166)		(319)		197		Total liability classified awards	(141)		2,326		(460)		2,523
Total stock-based compensation	Total stock-based compensation	$	3,687	$	692	$	7,945	$	1,617	Total stock-based compensation	$	4,220	$	4,206	$	12,165	$	5,823

Stock option award activity. Stock option activity under the Company’s stock incentive plans and changes during the ~~six~~nine months ended ~~June~~September 30, 2022, were as follows:

Number of Options
Weighted-Average Exercise Price (1)
Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value
Options outstanding at December 31, 2021 4,746,368 $ 5.11 9.6 $ —
Granted 16,791 $ 3.68 $ —
Canceled or forfeited (220,255) $ 5.56 $ —
Exercised — 0 $ —
Options outstanding at June 30, 2022 4,542,904 $ — 9.1 $ —
Options vested and expected to vest at June 30, 2022 18,186 $ 39.69 0.5 $ —


	Number of Options	Weighted-Average Exercise Price (1)		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Options outstanding at December 31, 2021	4,746,368	$	5.11	9.6	$	—
Granted	1,620,183	$	3.46		$	—
Canceled or forfeited	(353,169)	$	5.62		$	—
Exercised	—	$	—		$	—
Options outstanding at September 30, 2022	6,013,382	$	4.66	9.1	$	—
Options vested and expected to vest at Options vested at September 30, 2022	1,510,728	$	5.33	0.5	$	—

(1)Exercise price of options outstanding range from ~~$2.73~~$2.42 to ~~$19,620.00~~$11,340 as of ~~June~~September 30, 2022. The higher ~~range~~ end of the range is due to ~~historical~~the impact of reverse stock ~~reverse splits.~~splits subsequent to grants.

As of September 30, 2022, the total unrecognized compensation expense, net of estimated forfeitures, relating to stock options was $15.7 million, which is expected to be recognized over the remaining weighted-average period of approximately 2.4 years.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

~~As of June 30, 2022~~, the total unrecognized compensation expense, net of estimated forfeitures, relating to stock options was $14.6 million, which is expected to be recognized over the remaining weighted-average period of approximately 3.3 years.

Restricted stock. Non-vested restricted stock awards and the changes during the ~~six~~nine months ended ~~June~~September 30, 2022, were as follows:


		Number of Shares	Weighted-Average Grant-Date Fair Value			Number of Shares	Weighted-Average Grant-Date Fair Value
Outstanding at December 31, 2021	Outstanding at December 31, 2021	6,882,502	$	3.77	Outstanding at December 31, 2021	6,882,502	$	3.77
Granted	Granted	165,174	$	4.45	Granted	2,348,105	$	2.58
Exercised		(209,398)	$	2.63
Vested and issued					Vested and issued	(3,484,585)	$	2.85
Canceled or forfeited	Canceled or forfeited	(252,801)	$	4.87	Canceled or forfeited	(374,842)	$	4.90
Vested		(364)	$	2.30
Non-vested at June 30, 2022		6,585,113	$	4.01

Non-vested at September 30, 2022					Non-vested at September 30, 2022	5,371,180	$	3.95

The total fair value of restricted stock that vested during the ~~six~~nine months ended ~~June~~September 30, 2022, was $0.6 million. As of ~~June~~September 30, 2022, the total unrecognized compensation expense, net of estimated forfeitures, relating to restricted stock awards was ~~$17.2~~$19.4 million, which is expected to be recognized over the remaining weighted-average period of approximately ~~2.7~~2.3 years. As of ~~June~~September 30, 2022, we ~~had recorded a liability of $0.5 million for earned and~~have no unvested liability-classified restricted stock awards ~~based on the fair value of our common stock as of June 30, 2022~~.

~~14.~~16.Income Taxes

The Company has incurred operating losses since inception, therefore no provision for income taxes was recorded and all related deferred tax assets are fully reserved. We continue to assess the impact of a deferred tax asset as it relates to income taxes.

~~15.~~17.Commitments and Contingencies

Legal matters. From time to time, the Company has been, and may again become, involved in legal proceedings arising in the ordinary course of its business. The Company is not presently a party to any litigation and is not aware of any pending or threatened litigation against the Company that it believes could have a material adverse effect on its business, operating results, financial condition or cash flows.

Indemnifications. In the ordinary course of its business, the Company makes certain indemnities under which it may be required to make payments in relation to certain transactions. As of ~~June~~September 30, 2022, the Company did not have any liabilities associated with indemnities.

In addition, the Company ~~as permitted under Delaware law and in accordance with its amended and restated certificate of incorporation and second amended and restated bylaws, in each case, as amended to date,~~ indemnifies its officers and directors for certain events or occurrences, subject to certain ~~limits, while the officer or director is or was serving at the Company’s request in such capacity.~~limitations. The duration of these indemnifications, commitments, and guarantees varies and, in certain cases, is indefinite. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that may enable it to recover a portion of any future amounts paid. The Company accrues ~~for~~ losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. No such losses have been recorded to date.

Environmental liabilities. The Company’s operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

liability which could result from such events. Environmental liabilities are recorded when the Company’s liability is probable, and the costs can be reasonably estimated. No environmental liabilities have been recorded as of ~~June~~September 30, 2022.

In June 2021 the Company contracted with a manufacturer in India to build a fractionation and hydrocarbon skid for $10.2 million, the remaining commitment for the contract is $3.5 million as of September 30, 2022.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

In February 2022, an incident occurred at one of the anaerobic digesters that is part of NW Iowa RNG that resulted in the accidental discharge of a mixture of water and manure into the environment. We promptly notified the Iowa Department of Natural Resources (the "DNR") and began mitigation work to minimize the impact of the discharge. The DNR has issued a notice of violation in connection with the discharge. This matter was resolved with the DNR in July 2022 through an administrative consent order and damages of $10,000 were assessed.

In April 2022, 2two separate incidents occurred at 2two of the anaerobic digesters that are part of NW Iowa RNG that resulted in the accidental discharge of very small amounts of water and manure into the environment. The DNR has issued notices of violation in connection with the 2two discharges.

There is a possibility that the DNR will initiate an enforcement action with respect to the April 2022, discharges described above that could result in a monetary sanction being levied against Gevo for the accidental discharges. We do not believe that any such monetary sanctions would behave a material impact on the financial statements.

Juhl Commitment.

In September 2022, the Company entered into a Development Agreement with Juhl to construct and operate a wind project for the provision of electric energy for the NZ1. Pursuant to the ~~Company.~~agreement, the Company has committed to pay Juhl a total development charges of $8.6 million, comprised of advanced development fee payments of $0.9 million, certain reimbursable costs of $1.2 million, and $6.5 million upon completion of the project. The Company has paid $0.6 million pursuant to the agreement as of September 30, 2022. The Company is not contractually obligated for the specified development charges until certain milestones are met in future periods, and upon completion of the project.

The Company's investment in Juhl is pledged as a collateral for 2two commitments related to a purchase of wind electricity for the Luverne Facility, as well as 100% of RCWF's renewable energy credits. Gevo has a commitment to purchase all of RCWF's electricity. The portion not used by the Luverne Facility is charged to the Company at a lower price. The estimated commitments as of ~~June~~September 30, 2022, and thereafter are shown ~~below:~~below (in thousands):


Year ending December 31,	Year ending December 31,	Electricity Above Use (estimated)		Renewable Energy Credits		Year ending December 31,	Electricity Above Use (estimated)		Renewable Energy Credits
2022 (remaining)	2022 (remaining)	$	257	$	150	2022 (remaining)	$	117	$	37
2023	2023	440		150		2023	474		149
2024	2024	440		150		2024	485		149
2025	2025	440		150		2025	163		149
2026	2026	—		150		2026	—		149
2027 and thereafter	2027 and thereafter	—		1,900		2027 and thereafter	—		1,985
Total commitments	Total commitments	$	1,577	$	2,650	Total commitments	$	1,239	$	2,618

~~16.~~18.Fair Value Measurements

Accounting standards define fair value, outline a framework for measuring fair value, and detail the required disclosures about fair value measurements. Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Standards establish a hierarchy in determining the fair market value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. Standards require the utilization of the highest possible level of input to determine fair value.

Level 1 – inputs include quoted market prices in an active market for identical assets or liabilities.

Level 2 – inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data.

~~Level 3 – inputs are unobservable and corroborated by little or no market data.~~

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

Level 3 – inputs are unobservable and corroborated by little or no market data.

The carrying value and fair value, by fair value hierarchy, of the Company's financial instruments at ~~June~~September 30, 2022, and December 31, 2021, respectively, are as follows (in thousands):


				Fair Value Measurements at June 30, 2022									Fair Value Measurements at September 30, 2022
		Fair Value at June 30, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Fair Value at September 30, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring	Recurring									Recurring
Marketable securities	Marketable securities									Marketable securities
U.S. Treasury notes	U.S. Treasury notes	$	161,438	$	161,438	$	—	$	—	U.S. Treasury notes	$	108,598	$	108,598	$	—	$	—
U.S. Government-sponsored enterprise securities	U.S. Government-sponsored enterprise securities	136,193		136,193		—		—		U.S. Government-sponsored enterprise securities	113,414		113,414		—		—
Other
Liability-classified restricted stock awards		514		514		—		—
Total recurring	Total recurring	$	298,145	$	298,145	$	—	$	—	Total recurring	$	222,012	$	222,012	$	—	$	—


				Fair Value Measurements at December 31, 2021									Fair Value Measurements at December 31, 2021
		Fair Value at December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Fair Value at December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring	Recurring									Recurring
Marketable securities	Marketable securities									Marketable securities
U.S. Treasury notes	U.S. Treasury notes	$	225,792	$	225,792	$	—	$	—	U.S. Treasury notes	$	225,792	$	225,792	$	—	$	—
U.S. Government-sponsored enterprise securities	U.S. Government-sponsored enterprise securities	113,944		113,944		—		—		U.S. Government-sponsored enterprise securities	113,944		113,944		—		—
Other	Other									Other
Liability-classified restricted stock awards	Liability-classified restricted stock awards	894		894		—		—		Liability-classified restricted stock awards	702		702		—		—
Total recurring	Total recurring	$	340,630	$	340,630	$	—	$	—	Total recurring	$	340,438	$	340,438	$	—	$	—

~~There were~~ The Company had no transfers toof assets or ~~from Level 2 or Level 3 in the six months ended June~~liabilities between fair value hierarchy levels between December 31, 2021, and September 30, 2022.

For the 2021 Bonds, the fair values are estimated using the Black-Derman-Toy interest rate lattice framework. The effective maturity of the 2021 Bonds was assumed to be April 1, 2024 (three years from issuance) with repayment of 100% of principal on that date. The impact of the Company's optional redemption feature, effective October 1, 2022, is appropriately captured by the Black-Derman-Toy interest rate lattice. The carrying values and estimated fair values of the 2021 Bonds as of ~~June~~September 30, 2022, are summarized as follows:

June 30, 2022
Carrying Value Estimated Fair Value
2021 Bonds $ 66,853 $ 65,994


	September 30, 2022
	Carrying Value		Estimated Fair Value

2021 Bonds	$	67,038	$	64,910

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

~~17.~~19.Shareholders' Equity

Share Issuances

In February 2018, the Company commenced an at-the-market offering program, which allows it to sell and issue shares of its common stock from time to time. In 2021, the at-the-market offering program was amended to provide a total capacity of $500.0 million. As of ~~June~~September 30, 2022, the Company has remaining capacity to issue up to approximately $360.6 million of common stock under the at-the-market offering program.

On June 8, 2022, the Company completed a registered direct offering ~~pursuant to a securities purchase agreement with certain institutional investors providing for~~ ("the ~~issuance and sale by the Company~~June 2022 Offering") of an aggregate of 33,333,336 shares of the Company’s common stock at a price of $4.50 per share, accompanied by ~~33,333,336~~ Series 2022-A warrants to purchase an aggregate of 33,333,336 shares of the Company’s common stock (each, a “Series 2022-A Warrant”) ~~(the “June 2022 Offering”).~~pursuant to a securities purchase agreement with certain institutional and accredited investors. The Series 2022-A Warrants are exercisable for a term of five years from the date of issuance at an exercise price of $4.37 per ~~Series 2022-A Warrant.~~share. As of ~~June~~September 30, 2022, none of the Series 2022-A Warrants had been exercised.

The net proceeds to the Company from the June 2022 Offering were ~~$139.0~~$139.2 million, after deducting placement ~~agent~~agent's fees, advisory fees and other ~~estimated~~ offering expenses payable by the Company, and ~~not including any future proceeds from the exercise~~assuming none of the Series 2022-A ~~Warrants.~~Warrants issued in the June 2022 Offering are exercised for cash. The Company intends to use the net proceeds from the June 2022 Offering to fund ~~future operations~~capital projects, working capital and ~~capital projects~~for general corporate purposes.

Warrants

In addition to the Series 2022-A Warrants, the Company has warrants outstanding that were issued in conjunction with a registered direct offering in August 2020 (the “Series 2020-A Warrants”). The Company evaluated the Series 2022-A Warrants and Series 2020-A Warrants for liability or equity classification and determined that equity treatment was appropriate because both the Series 2022-A Warrants and Series 2020-A Warrants do not meet the definition of liability instruments.

The Series 2022-A Warrants and Series 2020-A Warrants are classified as component of permanent equity because they are freestanding financial instruments that are legally detachable and separately exercisable from the shares of common stock with which they were issued, are immediately exercisable and will expire five years from the date of issuance, do not embody an obligation for the Company to repurchase its shares, and permit the holders to receive a fixed number of shares of common stock upon exercise. In addition, the Series 2022-A Warrants and Series 2020-A Warrants do not provide any guarantee of value or return. The Company valued the Series 2022-A Warrants and Series 2020-A Warrants at issuance using the Black-Scholes option pricing ~~model and determined~~model. The fair value at the ~~fair value~~issuance date of the Series 2022-A Warrants ~~to purchase~~was $92.9 million with the ~~Company’s common stock at $92.9 million. The~~ key inputs to the valuation model ~~included~~including a weighted average volatility of 151.1%, a risk-free rate of 2.86% and an expected term of five years. The fair value at the issuance date of the Series 2020-A Warrants was $8.3 million with the key inputs to the valuation model including a weighted average volatility of 130%, a risk-free rate of 0.30% and an expected term of five years.

While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

On February 17, 2022, the remaining Series K warrants expired with 7,126 unexercised ~~warrants.~~

~~The following table sets forth information pertaining to shares issued upon the exercise of warrants:~~

Issuance Date Expiration Date Exercise Price as of June 30, 2022 Shares Underlying Warrants on Issuance Date Shares Issued upon Warrant Exercises as of June 30, 2022 Shares Underlying Warrants Outstanding as of June 30, 2022
Series 2020-A Warrants (1)
7/6/2020 7/6/2025 $ 0.60 30,000,000 29,914,069 85,931
Series 2022-A Warrants (1)
6/8/2022 6/7/2027 $ 4.37 33,333,336 — 33,333,336
Total Warrants 63,333,336 29,914,069 — 33,419,267

~~(1) Equity-classified~~ warrants.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)

The following table sets forth information pertaining to shares issued upon the exercise of warrants:


	Issuance Date	Expiration Date	Exercise Price as of September 30, 2022		Shares Underlying Warrants on Issuance Date	Shares Issued upon Warrant Exercises as of September 30, 2022	Shares Underlying Warrants Outstanding as of September 30, 2022
Series 2020-A Warrants (1)	7/6/2020	7/6/2025	$	0.60	30,000,000	29,914,069	85,931
Series 2022-A Warrants (1)	6/8/2022	6/7/2027	$	4.37	33,333,336	—	33,333,336
Total Warrants					63,333,336	29,914,069	33,419,267

(1)Equity-classified warrants.

During the ~~six~~nine months ended ~~June~~September 30, 2022, common stock was issued as a result of the exercise of warrants as shown below (dollars in thousands):


	Common Stock Issued	Proceeds
Series 2020-A Warrants	4,677	$	3

~~18.~~20.Segments

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, management has determined that the Company has organized its operations and activities into 3three reportable segments: (i) Gevo segment; (ii) Agri-Energy segment; (iii) Renewable Natural Gas segment. Transactions between segments are eliminated in consolidation.

Gevo segment. The Gevo segment is responsible for all research and development activities related to the future production of SAF, commercial opportunities for other renewable hydrocarbon products, such as hydrocarbons for gasoline blendstocks and diesel fuel; ingredients for the chemical industry, such as ethylene and butenes; plastics and materials; and other chemicals. The Gevo segment also develops, maintains and protects its intellectual property portfolio, provides corporate oversight services, and responsible for development and construction of our Net-Zero projects.

Agri-Energy segment. The Agri-Energy segment is currently responsible for the operation of the Company’s Luverne Facility, development and optimization of the production of isobutanol, ethanol and related products.

Renewable Natural Gas segment. The Renewable Natural Gas segment ~~produces low-carbon~~produces-pipeline quality methane gas captured from ~~manure for the production of RNG.~~dairy cow manure.

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GEVO, INC.

Notes to Consolidated Financial Statements

(unaudited)


		Three Months Ended June 30, 2022									Three Months Ended September 30, 2022
		Gevo		Agri-Energy		Renewable Natural Gas		Consolidated			Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Revenues	Revenues	$	18	$	71	$	—	$	89	Revenues	$	—	$	—	$	309	$	309
Loss from Operations	Loss from Operations	$	(13,025)	$	(3,113)	$	23	$	(16,115)	Loss from Operations	$	(15,480)	$	(27,948)	$	(241)	$	(43,669)
Acquisitions of patents, plant, property and equipment	Acquisitions of patents, plant, property and equipment	$	11,870	$	328	$	8,275	$	20,473	Acquisitions of patents, plant, property and equipment	$	17,458	$	4,351	$	6,305	$	28,114

		Three Months Ended June 30, 2021									Three Months Ended September 30, 2021
		Gevo		Agri-Energy		Renewable Natural Gas		Consolidated			Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Revenues	Revenues	$	346	$	—	$	—	$	346	Revenues	$	104	$	16	$	—	$	120
Loss from Operations	Loss from Operations	$	(11,915)	$	(7,183)	$	—	$	(19,098)	Loss from Operations	$	(10,968)	$	(3,548)	$	(218)	$	(14,734)
Acquisitions of patents, plant, property and equipment	Acquisitions of patents, plant, property and equipment	$	588	$	1,898	$	11,932	$	14,418	Acquisitions of patents, plant, property and equipment	$	15,511	$	3,154	$	14,450	$	33,115

		Six Months Ended June 30, 2022									Nine Months Ended September 30, 2022
		Gevo		Agri-Energy		Renewable Natural Gas		Consolidated			Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Revenues	Revenues	$	81	$	240	$	—	$	321	Revenues	$	81	$	240	$	309	$	630
Loss from Operations	Loss from Operations	$	(25,149)	$	(6,921)	$	—	$	(32,070)	Loss from Operations	$	(40,629)	$	(34,869)	$	(241)	$	(75,739)
Acquisitions of patents, plant, property and equipment	Acquisitions of patents, plant, property and equipment	$	16,308	$	4,275	$	18,668	$	39,251	Acquisitions of patents, plant, property and equipment	$	33,766	$	8,626	$	24,973	$	67,365

		Six Months Ended June 30, 2021									Nine Months Ended September 30, 2021
		Gevo		Agri-Energy		Renewable Natural Gas		Consolidated			Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Revenues	Revenues	$	359	$	—	$	—	$	359	Revenues	$	465	$	14	$	—	$	479
Loss from Operations	Loss from Operations	$	(19,678)	$	(9,310)	$	(68)	$	(29,056)	Loss from Operations	$	(30,697)	$	(12,807)	$	(286)	$	(43,790)
Acquisitions of patents, plant, property and equipment	Acquisitions of patents, plant, property and equipment	$	841	$	1,908	$	17,101	$	19,850	Acquisitions of patents, plant, property and equipment	$	16,352	$	5,062	$	31,551	$	52,965

June 30, 2022
Gevo Agri-Energy Renewable Natural Gas Consolidated
Total assets $ 601,313 $ 64,940 $ 108,358 $ 774,611
December 31, 2021
Gevo Agri-Energy Renewable Natural Gas Consolidated
Total assets $ 484,528 $ 64,008 $ 117,940 $ 666,476

~~19.Subsequent Events~~

On July 21, 2022, the Company entered into a Water Purchase Agreement with Kingbrook Rural Water System (“Kingbrook”) to construct and operate a rural water distribution system for the Net-Zero 1 Project. Pursuant to the

~~Table of Contents~~

~~GEVO, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(unaudited)~~

Agreement, the Company will pay Kingbrook a one-time system development charge of $6.7 million, with 50% of such payment due in August 2022 and the remaining 50% due over the 24 months following execution.

On July 25, 2022, the Company closed on the purchase of approximately 245 acres near Lake Preston, South Dakota for the Net-Zero 1 Project. The total net purchase price for the land was approximately $6.0 million.


	September 30, 2022
	Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Total assets	$	579,984	$	38,473	$	110,954	$	729,411

	December 31, 2021
	Gevo		Agri-Energy		Renewable Natural Gas		Consolidated
Total assets	$	484,528	$	64,008	$	117,940	$	666,476

2827

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used anywhere in this Report, the words “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These forward-looking statements include, among other things, statements about: the impact of the novel coronavirus ("COVID-19") pandemic on our business, our financial condition, our results of operation and liquidity, our ability to finance and construct our Net-Zero 1 ~~Project~~project (as defined below), our ability to produce our products at our demonstration facility in Luverne, Minnesota (the “Luverne Facility”) or elsewhere, our ability to meet production, financial and operational guidance, our strategy to pursue low-carbon or "net-zero" carbon renewable fuels for sale into California and elsewhere, our ability to replace our fossil-based energy sources with renewable energy sources at our Net-Zero 1 ~~Project, our Luverne Facility~~project and elsewhere, our ability and plans to construct greenfield commercial hydrocarbon facilities to produce sustainable aviation fuel ("SAF") and ~~renewable premium gasoline/isooctane,~~other products, our ability to raise additional funds to finance our business, our ability to perform under our existing off-take agreements and other supply agreements we may enter into in the future, our ability to successfully ~~construct and~~ operate our renewable natural gas ("RNG") project in Iowa, our ability to produce renewable hydrocarbon products at a commercial level and at a profit, the availability of, and market prices for, government economic incentives to the renewable energy market, achievement of advances in our technology platform, the availability of suitable and cost-competitive feedstocks, our ability to gain market acceptance for our products, the expected cost-competitiveness and relative performance attributes of our products, our strategy to pursue alcohol-to-SAF, additional competition and changes in economic conditions and the future price and volatility of petroleum and products derived from petroleum. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements such as those contained in documents we have filed with the U.S. Securities and Exchange Commission (the “SEC”), including this Report in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” our Annual Report on Form 10-K for the year ended December 31, 2021 (our “2021 Annual Report”), including Item 1A. "Risk Factors" of our 2021 Annual Report and subsequent reports on Form 10-Q. All forward-looking statements in this Report are qualified entirely by the cautionary statements included in this Report and such other filings. These risks and uncertainties or other important factors could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this Report. These forward-looking statements speak only as of the date of this Report. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and readers should not rely on the forward-looking statements as representing the Company’s views as of any date subsequent to the date of the filing of this Report.

Unless the context requires otherwise, in this Report the terms “we,” “us,” “our” and the “Company” refer to Gevo, Inc. and its subsidiaries.

The following discussion should be read in conjunction with our unaudited consolidated financial statements and the related notes and other financial information appearing elsewhere in this Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including, without limitation, the disclosures in our 2021 Annual Report.

Company Overview

Gevo, Inc. (Nasdaq: GEVO), a Delaware corporation founded in 2005, is a growth-oriented company with the mission of solving the problem of greenhouse gas emissions for those sectors of the transportation industry that are not amenable to electrification or hydrogen. We believe that the market size for hydrocarbon fuels will continue to remain significant in the long-term even with the rapid adoption of electric vehicles and hydrogen technologies. We also believe that we can achieve at least one billion gallons per year of hydrocarbon production and sales by 2030.

We are focused on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels, such as SAF, with the potential to achieve a “net-zero” greenhouse gas ("GHG") footprint. We believe

that this addresses the global need of reducing GHG emissions with "drop in" sustainable alternatives to petroleum fuels. We use Argonne National Laboratory’s GREET (Greenhouse gases, Regulated Emissions, and Energy use in Transportation) model (the "GREET Model") to measure, predict and verify GHG emissions across the life cycle of our products. The "net-zero" concept means we expect to produce fuels that could have a carbon neutral or a net-zero GHG footprint across the whole of the life cycle of the fuel, from the capture of renewable carbon, through production, and the subsequent burning of the fuel in, for example, a jet engine.

Our primary market focus, given current demand and growing customer interest, is SAF. We believe we also have commercial opportunities for other renewable hydrocarbon products, such as ~~RNG,~~RNG; hydrocarbons for gasoline blendstocks and diesel fuel; ingredients for the chemical industry, such as ethylene and butenes; plastics and materials; and other chemicals. The global fuel consumption by commercial airlines was an all-time high of 95 billion gallons in 2019. However, due to the COVID-19 pandemic, fuel consumption dropped to 52 billion gallons in 2020 and then reached 57 billion gallons in ~~2021.~~2021, but the 2022 fuel consumption trend is nearly back to pre-COVID levels.

We believe that there is a growing and significant market demand for SAF production generally based on a number of factors, including:


			●			The International Air Transport Association ("IATA") 77th Annual General Meeting approved a resolution for the global air transport industry to achieve net-zero carbon emissions by 2050. IATA has 288 airline members, including Alaska Airlines, American Airlines, Delta Air Lines, FedEx Express, United Airlines and UPS Airlines.
			●			~~Starting on~~In March 1, 2020, Delta Air Lines committed to spending $1 billion over the next 10 years on its objective ~~around~~to mitigating emissions from its global business going forward. Delta will invest in ~~driving~~ innovation, advancing clean air travel technologies, accelerating the reduction of carbon emissions and waste, and establishing new projects to mitigate the balance of emissions.
			●			The oneworld® alliance committed to a target of 10% SAF use across the alliance by 2030 and plans to reach net zero emissions by 2050.

We believe that we possess the ability to convert various carbohydrate feedstocks through a fermentation process into alcohols and then transform the alcohols into renewable fuels and materials, through a combination of our own technology, know-how, engineering, and licensing of technology and engineering from Axens North America, Inc. ("Axens"). While we expect our major capital deployments to focus on the production of SAF, we recognize there are opportunities to operate in several different renewable fuels and materials markets and we will pursue those opportunities when appropriate based on customer interest, access to capital, and expected investment returns.

Our SAF production ~~processes use~~process uses carbohydrates as a feedstock. Carbohydrates are plant matter that result from photosynthesis. Photosynthesis is the natural process by which carbon dioxide is captured from the air by plants. The carbon in carbohydrates is therefore renewable because it is already in the atmosphere. The carbohydrates are fermented to produce alcohol intermediate products ~~(e.g.~~(e.g., ethanol or isobutanol). The alcohol-based intermediates are then chemically processed to make renewable hydrocarbons. To achieve net-zero carbon intensity ("CI") across the whole life cycle of the products, we believe:


			●			carbohydrates with a low CI score must be used in production;
			●			the energy (electricity and heat source) used in production must be de-fossilized; and
			●			the products cannot contain fossil-based carbon.

We believe sustainably grown industrial field corn ~~(i.e.~~(i.e., corn that is grown with precision agricultural techniques and low-till or no till cultivation to conserve nutrients, prevent water runoff, and erosion) is the best feedstock to commercialize for SAF initially because:


			●			it produces a significant amount of protein and vegetable oil for nutritional products on a per acre basis while also producing an abundance of low CI carbohydrates that can be captured and used as a feedstock for fuels and chemicals;


			●			the protein and oil that are produced can be easily separated and sold as co-products into the food chain markets. The protein and oil revenue serves to offset the cost of the corn feedstock;


			●			we believe the carbon footprint of growing corn can be negative, according to calculations completed with the GREET Model, when a full suite of climate-smart agricultural practices is employed on appropriate acres of cropland;
			●			we believe the corn can achieve lower CI scores when grown with climate-smart agricultural techniques than waste raw materials or wood; and
			●			we believe that residual carbohydrates from corn are the lowest cost carbohydrates available as a renewable raw material, and the production is proven and scalable.

We believe utilizing sustainable agriculture practices to help solve GHG problems is a breakthrough that addresses the problem of GHGs without compromising sustainability or food supply. We also believe that it will be possible to create an incentive structure that rewards farmers to lower the CI score of their agricultural products and create a cycle of continuous improvement to their overall sustainability footprint.

Net-Zero Projects

In early 2021, we announced the concept of “Net-Zero Projects” as a series of planned facilities to produce energy dense liquid hydrocarbons using renewable energy and our proprietary technology. The concept of a Net-Zero Project is to convert renewable energy ~~(e.g.~~(e.g., photosynthetic, wind, ~~renewable natural gas,~~RNG, and/or biogas) from a variety of sources into energy dense liquid hydrocarbons that, when burned in traditional engines, have the potential to achieve net-zero GHG emissions across the whole lifecycle of the liquid fuel: from the way carbon is captured from the atmosphere, processed to make liquid fuel products, and burnt as a fuel for cars, planes, trucks and ships.

~~We announced our~~Our initial Net-Zero Project, Net-Zero 1 (“NZ1"), is ~~planned to be constructed at~~located in Lake Preston, South ~~Dakota. NZ1~~Dakota, and is ~~expected~~being currently designed to produce approximately 5562 million gallons per year ("MGPY") of ~~SAF or 62 MGPY of~~ total hydrocarbon volumes, including 55 MGPY of SAF, which would ~~satisfy~~fulfill part of ~~the~~our more than ~~350~~375 MGPY of ~~financeable~~ SAF and hydrocarbon supply ~~agreements that are currently in place.~~agreements. The liquid hydrocarbons when burned are expected to have a “net-zero” GHG footprint. Along with the hydrocarbons, ~~we expect~~NZ1 is expected to produce approximately ~~420~~475 million pounds per year of high-value protein products for use in the food chain and more than 30 million pounds per year of corn oil. Our products will be produced in three ~~stages;~~steps; the first ~~stage~~step is ~~the~~ milling of the corn and the production of protein, oil, and carbohydrates, the second ~~stage involves~~step produces alcohols ~~production by~~using fermentation and the third ~~stage~~step is the conversion of ~~such~~the alcohols into hydrocarbons. We have an exclusive license in the United States from Axens to the technology and plant designs to convert alcohols to hydrocarbon fuels. Axens will also provide certain process guarantees for ~~the~~our production process. Additionally, Axens has extensive commercial experience in the technology, design, and deployment of the unit operations needed to convert alcohols to hydrocarbon fuels, based on their experience in the petrochemical industry. The fermentation side of the facility is being engineered with ~~companies that have~~Fluid Quip Technologies who has extensive experience in fermentation and agriculture-based facilities. We believe that by using known commercial technologies, the plant design is substantially de-risked.

The transition to an ethanol-to-SAF design from ~~Gevo’s~~our original isobutanol-to-SAF and isooctane design for NZ1 has ~~at NZ1~~ resulted in an ~~expected increase of~~improved design output capacity, which should result in an increased cash flow. Gevo’s ethanol-to-SAF engineering design work to date has resulted in a significant uplift in volumes and cash flows per unit of capital invested.

~~The~~In July 2022, the purchase of the land for NZ1 ~~project~~in Lake Preston, South Dakota was completed. This was followed by a groundbreaking ceremony in Lake Preston and we believe NZ1 is on schedule with initial volumes of SAF expected to be delivered in 2025. ~~Key~~Water and wind energy development agreements were executed in the third quarter of 2022, and other key milestones are on track for completion in accordance with our comprehensive project plan. Based on the ongoing engineering work, the installed cost for NZ1 ~~development milestones are:~~

~~Through year-end 2022:~~


			●			~~Complete the purchase of the land for NZ1 in Lake Preston, South Dakota. (this purchase was completed in July 2022)~~
			●			~~Execute commercial development, build, own and operate agreements for water, wind energy and green hydrogen~~
			●			~~Select engineering, procurement, and construction ("EPC") contractor~~
			●			~~Select fabricator for hydrocarbon plant modules~~
			●			~~Substantial completion of front-end engineering design ("FEED")~~
			●			~~Break ground and begin site preparation at Lake Preston~~
			●			~~Order long lead equipment~~

~~Through the first-half 2023:~~


			●			~~Close the construction financing, including non-recourse debt~~

is currently forecasted to be approximately $850 million, excluding certain contingencies and financing costs.

Gevo is also in the process of identifying and performing early site development work for additional SAF production locations. These sites include several greenfield locations that are particularly advantageous in terms of potential economics, opportunities to decarbonize, and time to market. In addition, we are pursuing prospects with several existing ethanol plant sites. Existing ethanol plants need to be decarbonized with renewable energy or de-fossilized energy and/or carbon sequestration. Gevo has developed a preferred list of partners and sites with decarbonization in mind and is engaged

in preliminary feasibility and development discussions with several of them. We plan to give priority to existing industrial plant sites that have attractive potential economics and high predictability of timeline for decarbonization.

~~Luverne Facility~~

The Luverne Facility continues to provide valuable knowledge and experience for the future strategic growth of the Company and its billion-gallon initiative. As a development site, operations will continue to be tailored to support a focus on advancing our technology, testing, and optimizing alternative feedstocks, yeast strains, and unit operations as well as partnership development for integrated GHG reductions. It is well equipped and positioned for optimization of the decarbonization and business cycle from feedstock to energy solutions. The site provides a unique opportunity to showcase our decarbonization and business systems and raise awareness for future partnerships, investors, and local communities. As a development site, the Luverne plant may operate intermittently between projects and activities.

Renewable Natural Gas Projects

In 2019, we began developing RNG projects. Manure can be digested anaerobically to produce biogas, which is then upgraded to ~~pipeline quality~~pipeline-quality RNG. RNG has environmental credit value when sold in markets such as ~~California when injected and shipped through a natural gas pipeline.~~California. There is also value to Gevo’s hydrocarbon production process by giving us another option to achieve carbon negative GHG emissions on our renewable hydrocarbon products. The hydrocarbon products resulting from such a decarbonization process have lower CI scores and increased market value, in addition to having a more positive impact on the environment.

Gevo’s RNG project in Northwest Iowa (the “RNG Project”) ~~has been producing biogas and is now upgrading and injecting RNG into a natural gas pipeline. The RNG Project generates~~produces renewable natural gas captured from dairy cow manure. The manure for the RNG Project is supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When at full operational capacity, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year. Gevo's revenue from the RNG Project is expected to come from sales of RNG and from the environmental attributes associated with ~~the~~its RNG sales, including the attributes available from California's Low Carbon Fuel Standard ("LCFS") program and the U.S. Environmental Protection ~~Agency's~~Agency ("EPA") Renewable Fuels Standard program ("RFS") to receive renewable identification numbers ("RINs"). Gevo has been granted registration approval by the EPA, allowing us to participate in its RFS program and expects to ~~be able to get~~receive approval for ~~Renewable Identification Numbers (“RINs”) through RFS and carbon credits from~~ LCFS later this year or early next year.

In the third quarter of 2022, the RNG Project ramped up production of biogas, raw biogas upgrading and injection of RNG into the interconnected natural gas pipeline. Our biogas commodity sales were $0.3 million in the three months ended September 30, 2022, with some of the associated revenue from its environmental attributes expected later this year. The majority of the revenue from environmental attributes, however, is expected to occur in 2023 due to the timing of the approval and documentation process for the related LCFS credits.

We ~~have been making~~made incremental improvements and ~~incremental expansions to the~~optimizations at our RNG Project by investing in capital projects that ~~may significantly~~are expected to improve its CI score and ~~revenue, which in turn strengthen the overall economics of the project.~~

expand capacity. Gevo’s ~~current~~ estimated share of the capital cost for ~~those~~these improvements is approximately $1.9 ~~million, which are 40% complete through the second quarter of 2022.~~million. The improvement and ~~expansion~~optimization work ~~is on budget and expected to be~~was completed ~~early~~ in the third quarter of 2022. In ~~addition, in~~ June 2022, we amended our lease with athe expanding dairy to provide the RNG Project with additional manure, which ~~may~~is expected to increase our RNG ~~production in the future.~~production.

We have strong relationships throughout the industry supply chain from technology and equipment providers to feedstock owners and RNG off-takers. We believe the trust and reputation we have attained, in combination with our understanding of the various and complex environmental attributes, gives us a competitive advantage. We leverage our relationships to identify and execute new project opportunities. Typically, new development opportunities come from our existing relationships with dairy owners who value our reputation in the industry.

We exercise financial discipline in pursuing projects by targeting attractive risk-adjusted project returns, whether selling RNG into the markets or using it to lower CI scores at our Net-Zero Projects. We will monitor biogas supply availability across our portfolio and seek to maximize our production ~~at existing projects~~ by expanding operations when economically feasible.

Verity ~~and Carbon~~ Tracking

Capturing and accurately counting carbon data across the whole of the business system is a critical part of Gevo’s business model, and the CI scores across the whole of the carbon life cycle, from feedstock through the burning of fuels. Through the use of the GREET Model and a field level tracking approach, our goal is to obtain carbon credits for the improved agricultural practices related to climate-smart agriculture such as precision agriculture and tillage practices (i.e., low till and no-till cultivation). We believe there is an opportunity to document, verify, and monetize that carbon value which is not otherwise counted and reward value chain partners, including farmers, for improving sustainability. Gevo’s current economic projections do not take into account this upside in value.

Verity Tracking ("Verity") is a joint venture between Gevo and Blocksize Capital GmbH ("Blocksize") to develop and commercialize carbon value and other sustainable attributes. Verity is developing the tools, techniques, software, data access to track carbon scores and other sustainability attributes using “blockchain” technology. The benefit is having audited, transparent, immutable sustainability data attached to biofuels and is expected to be valuable to our customers, colleague companies, and partners. Gevo and Blocksize have identified a series of internal milestones that Verity will need to achieve over the next few quarters to expand the joint venture into a stand-alone business unit, either as part of Gevo or as a separate entity.

Verity has continued to develop third-party partnerships that will contribute to its development objectives over the coming quarters. Verity and Gevo partnered with Farmers Edge Inc. ("Farmers Edge"), a company dedicated to helping farmers track data and improve agricultural decision making. As of March

31 ~~2022, Farmers Edge reported over 17.3 million subscribed acres having implemented their solutions.~~

Gevo has begun to develop the agricultural Climate-Smart Data for some of the key farms that would supply its NZ1 plant. Gevo intends to work with Verity to accurately account for and determine value for the carbon reductions captured in feedstocks, both during fuel production and in final products, to help our customers and value chain partners achieve their sustainability goals.

~~Market Development~~

Gevo now has more than 350 MGPY of financeable SAF and hydrocarbon fuel supply agreements, which are expected to support project debt financing. This level of demand would require three additional plants equal in size to the expected capacity of NZ1 to be built over the next four years to satisfy those agreements. Based on current market projections and operating assumptions, these agreements collectively represent approximately $2.1 billion in expected

~~revenue per year, inclusive of the environmental benefits value. A list of the recently announced supply agreements is noted below:~~Luverne Facility

Recently Announced Supply Agreements
Date Signed Customer Product Volume (MGPY) Term (Years)
June 2022 Finnair SAF 7.0 5
June 2022 Japan Airlines SAF 5.3 5
July 2022 Aer Lingus SAF 6.3 5
July 2022 Alaska Airlines SAF 37.0 5
July 2022 American Airlines SAF 100.0 5
The activities at our Luverne Facility have been transitioned to care and maintenance, as we have shifted focus to our Net Zero Projects. The workforce adjustment resulted in us retaining key personnel and redeploying some resources to our NZ1 and RNG projects to provide valuable knowledge and experience for the future strategic growth of the Company. As a potential development site, future operations, if any, will be tailored to support a focus on advancing our technology, testing, and optimizing alternative feedstocks, yeast strains, and unit operations as well as partnership development for integrated GHG reductions. The Luverne Facility is well equipped and positioned as a development site. The Luverne Facility also provides a unique opportunity to showcase our decarbonization and business systems and raise awareness for future partnerships, investors, and local communities, even though operations at the site have been minimized.

In the third quarter of 2022, we recorded an impairment of long-lived assets, to reduce the carrying value of certain property, plant, and equipment, and a leased right of use ("ROU") asset, at the Luverne Facility to its fair value. The impairments recorded to date relate to the determination to suspend production at the Luverne facility and shift the plant into an idled, care and maintenance status during the three months ended September 30, 2022. See Note 3 to the Consolidated Financial Statements for additional information.

~~Recent~~Other Developments

~~Equity Offering.~~U.S. Department of Agriculture. On ~~June 8,~~September 19, 2022, the ~~Company completed a registered direct offering pursuant~~U.S. Department of Agriculture ("USDA") tentatively selected Gevo’s Climate-Smart Farm to a securities purchase agreement with certain institutional investors and received net proceeds of $139.0 million (after placement agent fees, advisory fees and estimated offering expenses) to fund future operations and capital projects. As part of the offering, the Company issued 33,333,336 Series 2022-A warrantsFlight proposal for funding with an ~~exercise price~~award ceiling of ~~$4.37 per share and a five-year term. If all 33,333,336 Series 2022-A warrants were~~up to ~~be exercised in cash at the exercise price~~$30 million, subject to negotiation of ~~4.37 per share, the Company would receive additional net proceeds of approximately $145.7 million.~~

The recent offering has further strengthened the Company’s balance sheet, which is expected to facilitate the financing of the Company’s NZ1 project and to provide financial resources for the Company’s numerous growth opportunities. Gevo isdefinitive award agreements in the ~~process~~coming months. The project aims to create critical structural climate-smart market incentives for low carbon-intensity corn as well as to accelerate the production of ~~determining additional plant sites~~sustainable aviation fuel to ~~meet~~reduce the ~~demand under its existing~~ ~~SAF~~ ~~and hydrocarbon supply agreements, and some of the proceeds are expected to be used to advance those efforts.~~

~~Chevron. The letter of intent between Gevo and Chevron signed in September of 2021 and scheduled to expire~~sector’s dependency on ~~March 31, 2022, has been extended until August 31, 2022. Chevron and the Company mutually agreed upon the extension, which allows discussions and negotiations to continue.~~fossil-based fuels.

COVID-19

The COVID-19 pandemic ~~continues to impact~~significantly impacted global commercial activity, including the global transportation industry and its supply chain, and has contributed to significant volatility in financial markets. It is possible that the impacts of the COVID-19 pandemic on general economic activity could negatively impact our revenue and operating results for 2022 and beyond. In light of the current and potential future disruption to our business operations and those of its customers, suppliers and other third parties with whom we do business, we considered the impact of the COVID-19 pandemic on our business. The ~~impact~~ongoing impacts of the COVID-19 pandemic on the global transportation industry may result in less demand for our transportation fuel products in the future, which could have a material adverse effect on our business, financial condition, and our prospects for the foreseeable future.

There is also a risk that COVID-19 could have a material adverse impact on the development of ~~our~~ NZ1, ~~project,~~ customer demand and cash flow, depending on the extent of our future production activities.

3432

Results of Operations

Comparison of the Three Months Ended ~~June~~September 30, 2022 and 2021 (in thousands):


		Three months Ended June 30,							Three Months Ended September 30,
		2022		2021		Change			2022		2021		Change
Revenue and cost of goods sold	Revenue and cost of goods sold							Revenue and cost of goods sold
Ethanol sales and related products, net	Ethanol sales and related products, net	$	71	$	—	$	71	Ethanol sales and related products, net	$	—	$	16	$	(16)
Hydrocarbon revenue	Hydrocarbon revenue	18		346		(328)		Hydrocarbon revenue	—		104		(104)
Renewable natural gas commodity								Renewable natural gas commodity	309		—		309
Total revenues	Total revenues	89		346		(257)		Total revenues	309		120		189
Cost of production	Cost of production	2,640		1,617		1,023		Cost of production	318		2,378		(2,060)
Idle facility costs								Idle facility costs	2,330		—		2,330
Depreciation and amortization	Depreciation and amortization	1,088		1,177		(89)		Depreciation and amortization	1,250		1,104		146
Total cost of goods sold	Total cost of goods sold	3,728		2,794		934		Total cost of goods sold	3,898		3,482		416
Gross loss	Gross loss	(3,639)		(2,448)		(1,191)		Gross loss	(3,589)		(3,362)		(227)
Operating expenses	Operating expenses							Operating expenses
Research and development expense	Research and development expense	1,966		1,332		634		Research and development expense	1,562		1,495		67
Selling, general and administrative expense	Selling, general and administrative expense	9,209		4,846		4,363		Selling, general and administrative expense	11,144		9,287		1,857
Preliminary stage project costs	Preliminary stage project costs	314		5,472		(5,158)		Preliminary stage project costs	915		313		602
Other operations	Other operations	601		—		601		Other operations	1,303		—		1,303
Impairment loss								Impairment loss	24,749		—		24,749
Loss (gain) on disposal of assets								Loss (gain) on disposal of assets	—		183		(183)
Depreciation and amortization	Depreciation and amortization	386		46		340		Depreciation and amortization	407		94		313
Total operating expenses	Total operating expenses	12,476		16,650		$	(4,174)	Total operating expenses	40,080		11,372		$	28,708
Loss from operations	Loss from operations	(16,115)		(19,098)		2,983		Loss from operations	(43,669)		(14,734)		(28,935)
Other income (expense)	Other income (expense)							Other income (expense)
Gain (loss) from change in fair value of derivative warrant liability		—		43		(43)
Gain from change in fair value of derivative warrant liability								Gain from change in fair value of derivative warrant liability	—		6		(6)
Interest expense	Interest expense	(2)		(6)		4		Interest expense	(712)		(67)		(645)
Interest and dividend income	Interest and dividend income	78		—		78		Interest and dividend income	874		233		641
Other income (expense), net	Other income (expense), net	2,878		167		2,711		Other income (expense), net	(279)		182		(461)
Total other income (expense), net	Total other income (expense), net	2,954		845		2,109		Total other income (expense), net	(117)		354		(471)
Net loss	Net loss	$	(13,161)	$	(18,253)	$	5,092	Net loss	$	(43,786)	$	(14,380)	$	(29,406)

Revenue. During the three months ended ~~June~~September 30, 2022, we sold ~~9 thousand gallons~~41,791 MMBtu of ~~SAF, isooctane, and isooctene~~RNG from our ~~Luverne Facility~~.RNG Project. Revenue ~~decreased $0.3~~increased $0.2 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, ~~due to~~which consisted of ethanol, isobutanol and hydrocarbon originating from our Luverne Facility. In the third quarter of 2022, our RNG production began ramping up resulting in biogas commodity sales of $0.3 million, while the activities at our Luverne Facility ~~being operated for the Company's development projects on a~~were minimized to care and maintenance, as ~~needed basis.~~we have shifted focus to our Net Zero projects.

Cost of ~~goods sold.~~production. Cost of ~~goods increased $1.0~~production decreased $2.1 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily due to ~~an increase in direct labor and utility expenses as~~moving the Luverne Facility ~~was not fully staffed~~to care and maintenance status.

Idle facility costs. We incurred $2.3 million of idle facility costs during the ~~second~~three months ended September 30, 2022, due to putting our Luverne Facility into care and maintenance status in the third quarter of ~~2021 due~~2022. Included in idle facility costs are charges related to removing flammable and other hazardous items from the ~~COVID-19 pandemic. The majority of our~~site, writing off certain patents related

to production at the Luverne Facility and costs ~~are~~ related to the workforce adjustments. We plan to utilize the Luverne Facility to advance our technology and operational knowledge to help us in achieving operational success as we scale up the production and delivery of SAF ~~isooctane,~~for our customers through our Net-Zero Projects.

Depreciation and ~~isooctene as we continue to develop~~amortization. Depreciation and tailor our Luverne Facility demonstration operations to support our focus on advancing technology, testing and optimizing alternative feedstocks, yeast strains, and unit operations as well as partnership development for integrated GHG reductions. Costamortization in cost of goods sold ~~also includes a $2.1~~increased $0.1 million ~~net realizable gain adjustment made to our finished goods and work in process inventory. There were no inventory net realizable value adjustments recorded~~ during the three months ended ~~June~~September 30, 2022, compared to the three months ended September 30, 2021, ~~as the Luverne Facility was temporarily shut down~~mainly due to placing the ~~COVID-19 pandemic.~~RNG Project assets into service in third quarter of 2022.

Research and development expense. Research and development expense ~~increased $0.6 million during~~was relatively flat for the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, ~~2021,~~2021. These costs are primarily ~~due to an increase of laboratory~~employee and consultant related expenses, along with some patent and ~~additional stock-based compensation expense.~~lab supply costs.

Selling, general and administrative expense. Selling, general and administrative expense increased ~~$4.4~~$1.9 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily due to increases in personnel costs related to strategic ~~new~~ hiring and professional fees, as well as non-cash stock-based compensation ~~and professional fees.~~which reflects higher amortization expense for the stock awards issued in the prior period with higher market values, see Note 15 to the Consolidated Financial Statements for additional information.

Preliminary stage project costs. Preliminary stage project costs are related to our ~~Verity and~~ future Net-Zero Projects and Verity project and consist primarily of employee expenses, preliminary engineering and technical consulting costs. Preliminary stage project costs ~~decreased $5.2~~increased $0.6 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily ~~because we began capitalizing~~due to increases in personnel costs, consulting, and professional fees for our ~~RNG~~Net-Zero Projects and ~~NZ1 project costs in 2021.~~Verity project.

Other operations. Other operations expense increased ~~$0.6~~$1.3 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily ~~related~~due to ~~unallocated~~increases in engineering personnel and ~~consulting services.~~other non-capitalizable costs for NZ1.

Impairment loss. The Company recorded a $24.7 million impairment loss on long-lived assets, which reduced the carrying value of certain property, plant, and equipment, and a leased ROU asset, at the Agri-Energy segment to its fair value. The impairments recorded to date relate to the determination to suspend production at the Luverne Facility and shift the plant into an idled, care and maintenance status during the third quarter of 2022. See Note 3 to the Consolidated Financial Statements for additional information.

Depreciation and amortization expense. Depreciation and amortization expense increased $0.3 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily due to the amortization of our patents.

~~Gain (loss)~~Loss from ~~change in fair value derivative warrant liability.~~operations ~~We incurred no gain (loss)~~. Excluding the one-time charge of $24.7 million for impairment, our loss from ~~the change in the fair value of the derivative warrant liability in~~operations increased by $4.2 million during the three months ended ~~June~~September 30, ~~2022. The last of~~2022, compared to the ~~liability warrants expired in February 2022.~~three months ended September 30, 2021, primarily due to the increased activities for our Net-Zero Projects and Verity project, as well as non-capitalizable cost for NZ1.

Interest expense. ~~There were no significant changes in interest~~Interest expense increased $0.6 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, ~~2021.~~2021, primarily due to the interest on the RNG bonds and the imputed interest on our RNG-related dairy leases, both of which were capitalized into construction in process during the construction phase of our RNG Project in the previous periods.

Interest and dividend income. Interest and dividend income increased ~~$0.1~~$0.6 million during the three months ended ~~June~~September 30, 2022, compared to the three months ended ~~June~~September 30, 2021, primarily due to the interest earned on our ~~investments partially offset by the amortization of the bond premiums.~~investments.

Other income (expense). Other income (expense) ~~increased $2.7 million during~~for the three months ended ~~June~~September 30, 2022, ~~compared to the three months ended June 30, 2021,~~consists primarily ~~due to our receipt~~ of ~~$2.9 million from the US Department~~losses on disposal of ~~Agriculture's Biofuel Producer Program to support biofuel producers who faced unexpected losses due to the COVID-19 pandemic. The Biofuel Producer Program grants are not tax-exempt.~~fixed assets.

3634

Comparison of the ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021 (in thousands):


		Six Months Ended June 30,							Nine Months Ended September 30,
(in thousands)	(in thousands)	2022		2021		Change		(in thousands)	2022		2021		Change
Revenue and cost of goods sold	Revenue and cost of goods sold							Revenue and cost of goods sold
Ethanol sales and related products, net	Ethanol sales and related products, net	$	240	$	—	$	240	Ethanol sales and related products, net	$	240	$	16	$	224
Hydrocarbon revenue	Hydrocarbon revenue	81		359		(278)		Hydrocarbon revenue	81		463		(382)
Renewable natural gas commodity								Renewable natural gas commodity	309		—		309
Total revenues	Total revenues	321		359		(38)		Total revenues	630		479		151
Cost of production	Cost of production	5,730		2,518		3,212		Cost of production	5,242		4,896		346
Idle facility costs								Idle facility costs	2,330		—		2,330
Depreciation and amortization	Depreciation and amortization	2,179		2,270		(91)		Depreciation and amortization	3,429		3,374		55
Total cost of goods sold	Total cost of goods sold	7,909		4,788		3,121		Total cost of goods sold	11,001		8,270		2,731
Gross loss	Gross loss	(7,588)		(4,429)		(3,159)		Gross loss	(10,371)		(7,791)		(2,580)
Operating expenses	Operating expenses							Operating expenses
Research and development expense	Research and development expense	3,158		2,710		448		Research and development expense	4,720		4,205		515
Selling, general and administrative expense	Selling, general and administrative expense	18,576		8,660		9,916		Selling, general and administrative expense	29,205		17,947		11,258
Preliminary stage project costs	Preliminary stage project costs	821		8,199		(7,378)		Preliminary stage project costs	1,736		8,512		(6,776)
Other operations	Other operations	1,190		—		1,190		Other operations	3,814		—		3,814
Impairment loss								Impairment loss	24,749		—		24,749
Loss (gain) on disposal of assets	Loss (gain) on disposal of assets	—		4,954		(4,954)		Loss (gain) on disposal of assets	—		5,137		(5,137)
Depreciation and amortization	Depreciation and amortization	737		104		633		Depreciation and amortization	1,144		198		946
Total operating expenses	Total operating expenses	24,482		24,627		(145)		Total operating expenses	65,368		35,999		29,369
Loss from operations	Loss from operations	(32,070)		(29,056)		(3,014)		Loss from operations	(75,739)		(43,790)		(31,949)
Other income (expense)	Other income (expense)							Other income (expense)
Gain (loss) from change in fair value of derivative warrant liability	Gain (loss) from change in fair value of derivative warrant liability	16		(10)		26		Gain (loss) from change in fair value of derivative warrant liability	16		(4)		20
Interest expense	Interest expense	(4)		(11)		7		Interest expense	(716)		(78)		(638)
Interest and dividend income	Interest and dividend income	330		—		330		Interest and dividend income	1,204		354		850
Gain on forgiveness of SBA loan	Gain on forgiveness of SBA loan	—		641		(641)		Gain on forgiveness of SBA loan	—		641		(641)
Other income (expense), net	Other income (expense), net	2,894		126		2,768		Other income (expense), net	2,615		187		2,428
Total other income (expense), net	Total other income (expense), net	3,236		746		2,490		Total other income (expense), net	3,119		1,100		2,019
Net loss	Net loss	$	(28,834)	$	(28,310)	$	(524)	Net loss	$	(72,620)	$	(42,690)	$	(29,930)

Revenue.~~There~~ In the third quarter of 2022, our renewable natural gas production began ramping up resulting in biogas commodity sales of $0.3 million, while the activities at our Luverne Facility were ~~no significant changes in revenue during~~minimized to care and maintenance status as we have shifted focus to our Net-Zero Projects. During the ~~three~~nine months ended ~~June~~September 30, 2022, compared to the ~~three~~nine months ended ~~June~~September 30, 2021, revenue increased $0.2 million.

Cost of ~~goods sold.~~production. Cost of ~~goods sold~~production increased ~~$3.1~~$0.3 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to ~~an increase in direct labor~~the costs related to RNG production and ~~utility expenses~~sales from our RNG Project.

Idle facility costs. We incurred $2.3 million of idle facility costs during the nine months ended September 30, 2022, due to ~~the~~putting our Luverne Facility ~~not being fully staffed until~~into care and maintenance status in the third quarter of ~~2021 due~~2022. Included in idle facility costs are charges related to removing flammable and other hazardous items from the ~~COVID-19 pandemic. The majority of our~~site, writing off certain patents related to production at the Luverne Facility and costs ~~during the six months ended June 30, 2022, were~~ related to the workforce adjustments. We plan to utilize the Luverne Facility to advance our technology and operational knowledge to help us in achieving operational success as we scale up the production and delivery of SAF ~~isooctane,~~for our customers through our Net-Zero Projects.

Depreciation and ~~isooctene as we continue to develop~~amortization. Depreciation and tailor our Luverne Facility demonstration operations to support our focus on advancing technology, testing and optimizing alternative feedstocks, yeast strains, and unit operations as well as partnership development for integrated GHG reductions. Costamortization in cost of goods sold ~~also includes~~was relatively flat with a ~~$0.8~~minor increase of $0.1 million ~~loss for a net realizable value adjustment made to our finished goods and work in process inventory. There were no net realizable losses recorded~~ during the ~~six~~nine months ended ~~June~~September 30, ~~2021, as the Luverne Facility was~~ ~~temporarily shut down due~~2022, compared to the ~~COVID-19 pandemic.~~nine months ended September 30, 2021.

Research and development expense. Research and development expense increased ~~$0.4~~$0.5 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to an increase in patent and personnel related costs, as well as lab supplies, partially offset by a reduction of ~~laboratory expenses and additional stock-based compensation expense.~~consulting expenses.

Selling, general and administrative expense. Selling, general and administrative expense increased ~~$9.9~~$11.3 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to increases in personnel costs related to strategic ~~new~~ hiring and professional fees, as well as non-cash stock-based compensation ~~and professional fees.~~which reflects higher amortization expense for the stock awards issued in the prior period with higher market value, see Note 15 to the Consolidated Financial Statements for additional information.

Preliminary stage project costs. Preliminary stage project costs in 2022 are related to our ~~Verity and~~ future Net-Zero Projects and Verity project and consist of employee expense, preliminary engineering and technical consulting costs. Preliminary stage project costs decreased ~~$7.4~~$6.8 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily because we began capitalizing our RNG Project and NZ1 project costs in 2021.

Other operations. Other operations expense increased ~~$1.2~~$3.8 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021. Other operations costs ~~were~~are primarily costs related to ~~unallocated~~ engineering personnel and ~~consulting services.~~other non-capitalizable costs.

Depreciation and amortization expense. Depreciation and amortization expense increased ~~$0.6~~$0.9 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to the amortization of our patents.

Loss from operations. Excluding the one-time charge of $24.7 million for impairment, the loss from operations increased by $7.2 million during the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, primarily due to the increased activities for our Net-Zero Projects and Verity project, as well as non-capitalizable cost for NZ1.

Gain (loss) from change in fair value derivative warrant liability. We incurred a minimal change in the fair value of the derivative warrant liability in the ~~six~~nine months ended ~~June~~September 30, ~~2022; the~~2022. The last of the liability warrants expired in February 2022.

Interest expense. ~~There were no significant changes in interest~~Interest expense increased $0.6 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, ~~2021.~~2021, primarily due to the interest on the RNG Project bonds and the imputed interest on our RNG-related dairy leases, both of which were capitalized into construction in process during the construction phase of our RNG Project in the prior periods.

Interest and dividend income. Interest and dividend income increased ~~$0.3~~$0.9 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to the interest earned on our ~~investments partially offset by the amortization of the bond premiums.~~investments.

Other income (expense). Other income (expense) increased ~~$2.8~~$2.4 million during the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to our receipt of $2.9 million from the USU.S. Department of Agriculture's Biofuel Producer Program to support biofuel producers who faced unexpected

losses due to the COVID-19 ~~pandemic.~~pandemic, partially offset by a loss on disposal of fixed assets. The Biofuel Producer Program grants are not tax-exempt.

Critical Accounting Policies and Estimates

There have been no significant changes to our critical accounting ~~policies~~estimates since December 31, ~~2021.~~2021, and no significant changes to our critical accounting policies other than as described below. For a description of our other critical accounting policies and estimates that affect our significant judgments and estimates used in the preparation of our consolidated financial statements, refer to “Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” contained in our 2021 Annual Report.

Our unaudited consolidated financial statements are prepared in conformity with GAAP and require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates, and such estimates may change if the underlying conditions or assumptions change.

Revenue Recognition

In the third quarter of 2022, we began realizing revenues from RNG provided under long-term agreements with customers. Additional revenues from environmental attributes are expected to be realized later in 2022. The revenue recognition methodology is consistent with those from other products whereas all revenue is recognized at a point in time when we satisfy our performance obligations under the contract by transferring the product to the customer, as the customer obtains control of the product upon delivery.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our products. There is no variable consideration present in our performance obligations as consideration for the transaction is based upon current market pricing obtained from defined third party markets during the period in which the delivery was made.

RINs

We generate D3 RINs through our production of RNG used for transportation purposes as prescribed under the RFS program. We consider RINs to be a distinguishable product that is generated as an integral component of our production process of RNG, as the RINs that we generate can be separated from the underlying commodity and may be sold independently from the RNG produced. As such, we consider RINs to be a co-product of the production of RNG and accordingly allocate our costs of production based on the relative sales value of all revenue items for our RNG Project operations. Revenue is recognized on these environmental attributes when there is an agreement in place to monetize the credits at an agreed upon price with a customer based upon defined third party market prices and a transfer of control has occurred.

LCFS Credits

We generate LCFS Credits through our production of RNG used for transportation purposes as prescribed under the Low Carbon Fuel Standard in the state of California. We consider LCFS Credits to be a distinguishable product that is generated as an integral component of our production process of RNG, as the LCFS Credits that we generate can be separated from the underlying commodity and may be sold independently from the RNG produced. As such, we consider LCFS Credits to be a co-product of the production of RNG and accordingly allocate our costs of production based on the relative sales value of all revenue items for our Gevo RNG operations. Revenue is recognized on these environmental attributes when there is an agreement in place to monetize the credits at an agreed upon price with a customer based upon defined third party market prices and a transfer of control has occurred.

Off-Balance Sheet Arrangements

As of September 30, 2022, we did not have any material off-balance sheet arrangements.

Recently Adopted Accounting Pronouncements

See “Notes to Condensed Consolidated Financial Statements —2. Summary of Significant Accounting Policies” included in Part II, Item 8 of our 2021 Annual Report for a discussion of recent accounting pronouncements.

Liquidity and Capital Resources

As of ~~June~~September 30, 2022, we had cash and cash equivalents of ~~$173.0~~$200.6 million, short and long-term restricted cash of ~~$76.2~~$77.9 million and short-term marketable securities of ~~$297.6~~$222.0 million. As of September 30, 2022, we have net working capital of $414.1 million,. with $17.6 million of current liabilities. The marketable securities are highly liquid and can be converted to cash when needed for operations and construction. We expect to use our cash, cash equivalents, restricted cash and marketable securities for the following purposes: (i) identification, development, acquisition and construction of new production facilities and to plan for expanded production to fulfill existing off-take agreements ~~under the~~for NZ1 ~~project, including~~and the Company's other Net-Zero ~~projects;~~Projects; (ii) potential investment in RNG projects; (iii) potential development of the Luverne Facility; (iv) development, acquisition and operation of sustainable alcohol-to-SAF plants to produce SAF alone or with partners; (v) operating activities at the Company's corporate headquarters in Colorado, including research and development work; (vi) exploration of strategic alternatives and additional financing, including project financing; and (vii) future debt service obligations. We believe as a result of our cash and cash equivalents balances, and the performance of our current and expected operations, we will be able to meet our obligations and other potential cash requirements during the next 12 months from the date of this report.

Since our inception in 2005, we have devoted most of our cash resources to the development and commercialization of routes to efficiently produce fuels and chemicals from carbohydrates, such as renewable feedstock, using alcohols

~~(isobutanol~~ (isobutanol and ethanol) as intermediates. We have incurred losses since inception, have a significant accumulated deficit, and expect to incur losses for the foreseeable future. We have financed our operations primarily with proceeds from the issuance of equity, debt securities, and borrowings under debt facilities.

The Company's transition to profitability is dependent upon, among other things, the successful development and commercialization of its product candidates, the development, acquisition and construction of commercial level production facilities to support that Company's off-take agreements, the achievement of a level of revenues adequate to support the Company's cost structure, and the ability to raise capital to finance the development, acquisition, and construction of additional productions facilities.

OnIn January ~~27,~~ 2022, the Company’s stockholders voted to amend the Certificate of Incorporation to increase the total number of authorized shares of common stock from 250 million shares to 500 million shares. Management intends to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, the Company may seek additional capital, on acceptable terms, through arrangements with strategic partners or from other sources. Notwithstanding, there can be no assurance that the Company will be able to raise additional funds or achieve or sustain profitability or positive cash flows from operations.

The following table sets forth the major sources and uses of cash for each of the periods set forth below (in thousands):


		Six Months Ended June 30,					Nine Months Ended September 30,
		2022		2021			2022		2021
Net cash used in operating activities	Net cash used in operating activities	$	(17,114)	$	(19,468)	Net cash used in operating activities	$	(36,770)	$	(28,693)
Net cash from investing activities	Net cash from investing activities	$	(8,350)	$	(436,529)	Net cash from investing activities	$	44,870	$	(427,985)
Net cash provided by financing activities	Net cash provided by financing activities	$	138,565	$	522,853	Net cash provided by financing activities	$	134,297	$	514,513

Operating Activities

Our primary uses of cash from operating activities are personnel-related expenses, and research and development-related expenses, including costs incurred under development agreements, costs of licensing of technology, legal-related costs, expenses for the development and commercialization of routes to efficiently produce fuels and chemicals from ~~carbohydrates, such as~~ renewable feedstock carbohydrates using alcohols (isobutanol and ethanol) as ~~intermediates.~~an intermediate.

During the ~~six~~nine months ended ~~June~~September 30, 2022, net cash used for operating activities was ~~$17.1~~$36.8 million compared to ~~$19.5~~$28.7 million for the ~~six~~nine months ended ~~June~~September 30, 2021. Non-cash charges primarily consisted of an impairment loss of $24.7 million, depreciation and amortization of $4.5 million, non-cash interest expense of $2.8 million related to debt issuance costs, stock-based compensation expense of $12.6 million. The ~~$2.4~~net cash outflow from changes in operating assets and liabilities increased $7.9 million, ~~decrease was~~ primarily due to ~~increased costs associated with our production~~an increase of ~~isobutanol~~cash outflows of $4.0 million in prepaid expenses and ~~hydrocarbon products~~other current assets due to the payments for ~~market development, process technology~~licensing fees and ~~related process engineering work. In addition, we had increases in personnel expenses~~deposits to ~~support~~secure long-lead equipment power transmission and distribution facilities for NZ1, partially offset by $4.2 million of decreased cash payments for the ~~growth in business activity, partnership development and Verity development expenses.~~RNG Project.

Investing Activities

During the ~~six~~nine months ended ~~June~~September 30, 2022, wewe used ~~$8.4~~$44.9 million in cash for investing activities, of which ~~$169.1~~$243.8 million related to proceeds from sales and maturities of marketable securities, partially offset by the reinvestment of ~~$131.3~~$130.4 million in marketable securities, and ~~$46.0~~$68.5 million of investments in our capital projects, including ~~$26.3~~$33.7 million in the RNG Project, ~~$15.4~~$30.5 million ~~in the~~for NZ1, ~~Project,~~ as well as ~~$4.2~~$4.4 million in ~~development projects at Agri-Energy and Gevo.~~other projects.

~~We completed~~In July 2022, the ~~construction~~purchase of the ~~RNG Project~~land for NZ1 in Lake Preston, South Dakota was completed. This was followed by a groundbreaking ceremony in Lake Preston and ~~may invest up~~we believe NZ1 is on schedule with initial volumes of SAF expected to ~~an additional~~ ~~$11.4 million for start-up, improvements,~~be delivered in 2025. Water and ~~expansions during~~wind energy development agreements were executed in the ~~remainder~~third quarter of 2022, ~~or into 2023. Our preliminary~~and other key milestones are on track for completion in accordance with our comprehensive project plan. Based on the ongoing engineering work, the installed cost for NZ1 ~~Project's forecast of additional capital expenditures ranges from~~is currently forecasted to be approximately $850 million, excluding certain contingencies and financing costs, $100 million to $120 million of which includes engineering, development, long-lead equipment deposits, infrastructure support costs associated with electricity, natural gas, raw water, and wastewater service needs, debt financing costs, and debt pre-close project construction costs.we expect to spend within the next twelve months.

In addition, we allocated approximately $25 million of capital for the next four to six months to develop our next Net-Zero Project. Gevo is in the process of identifying and performing early site development work for additional SAF production locations. These potential sites include several greenfield locations that are particularly advantageous in terms of potential economics, opportunities to decarbonize, and time to market.

Financing Activities

During the ~~six~~nine months ended ~~June~~September 30, 2022, we ~~had $138.6~~had $134.3 million of net cash provided by financing activities, primarily due to $139.0 million ofnet proceeds from the issuance of common stock and common stock warrants in the June 2022 Offering, ~~net of issuance costs,~~ partially offset by $4.3 million of payments for finance lease liabilities and certain equipment loans and $0.3 million related to the net settlement of common stock under stock ~~plans~~plans.

We are also in the process of arranging financing for NZ1. We expect the financing would occur at a subsidiary of Gevo, Inc. and ~~$0.1 million~~would include a combination of ~~payments for finance lease liabilities~~debt and ~~certain equipment loans.~~equity.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes since our disclosure in “Quantitative and Qualitative Disclosures About Market Risk” included in Part II, Item 7A of our 2021 Annual Report.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to provide reasonable assurance that information required to be disclosed by us in the

reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial disclosures.

During the fiscal period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of ~~June~~September 30, 2022, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported within the required time periods and are designed to ensure that information required to be disclosed in our reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes that occurred during the three months ended ~~June~~September 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

~~From time to time, we have been~~A discussion of legal matters is found in Note 17, Commitments and ~~may again become involved in legal proceedings arising~~Contingencies, in the ordinary course of our business. We are not presently a party to any litigation, other disputes and regulatory proceedings that we believe to be material and we are not aware of any pending or threatened proceedings against us that we believe could have a material adverse effect on our business, operating results, financial condition or cash flows.

In April 2022, two separate incidents occurred at two of the anaerobic digesters that are part of NW Iowa RNG that resulted in the accidental discharge of very small amounts of water and manure into the environment. The DNR has issued notices of violation in connection with the two discharges.

~~There is a possibility that the DNR will initiate an enforcement action with respect~~accompanying Notes to the ~~April 2022 discharges described above that could result~~Financial Statements included in ~~a monetary sanction being levied against Gevo for the accidental discharges. We do not believe that any such monetary sanctions would be material.~~Part I - Item 1. Financial Statements of this Report.

Item 1A. Risk Factors.

You should carefully consider the risk factors discussed in Part I, Item 1A. “Risk Factors” in our 2021 Annual Report, which could materially affect our business, financial condition, cash flows or future results. There have been no material changes in our risk factors included in our Annual Report. The risk factors in our 2021 Annual Report are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

~~Purchases of equity securities by the issuer:~~
Period
Total Number
of Shares
Purchased
Average Price
Paid per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
Maximum
Number of
Shares That
May Yet Be
Purchased
Under the Plans
or Programs
April 1 - April 30, 2022 11,135 $ 4.58 — —
May 1 - May 30, 2022 1,081 $ 4.02 — —
June 1 - June 30, 2022 2,299 $ 3.14 — —
Total 14,515 $ 3.91 — —

Represents shares withheld from employees to cover tax withholding obligations upon the vesting of restricted stock awards. The average prices listed in the above table are averages of the fair market prices at which we valued shares withheld for purposes of calculating the number of shares to be withheld.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

None.

4241

Item 6. Exhibits.

The exhibits listed below are filed or furnished as part of this report.

Exhibit
Number
Description Previously Filed
Filed
Herewith
Form File No. Filing Date Exhibit
3.1
Amended and Restated Certificate of Incorporation of Gevo, Inc.

10-K

001-35073
February 24, 2022 3.1
3.2
Second Amended and Restated Bylaws of Gevo, Inc.

8-K

001-35073
November 24, 2021 3.1
4.1
Form of Gevo, Inc. Common Stock Certificate.

S-1

333-168792
January 19, 2011 4.1
4.2
Form of Series 2020-A Warrant to Purchase Common Stock.
8-K 001-35073 July 8, 2020 4.1
4.3
Form of Series 2022-A Warrant
8-K 001-35073 June 8, 2022 4.1
10.1
Form of Securities Purchase Agreement
8-K 001-35073 June 8, 2022 10.1
10.2+
First Amended and Restated Transaction Confirmation, by and between Gevo NW Iowa RNG, LLC BP Canada Energy Marketing Corp, and BP Products North America Inc.

X
10.3+
Fuel Sales Agreement, dated July 18, 2022, by and between Gevo, Inc. and American Airlines, Inc.
8-K 001-35073 July 22, 2022 10.1
31.1
Section 302 Certification of the Principal Executive Officer.

X
31.2
Section 302 Certification of the Principal Financial Officer.

X
32.1
Section 906 Certification of the Principal Executive Officer and Principal Financial Officer.**

**
101.INS Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

X
101.SCH Inline XBRL Taxonomy Extension Schema

X
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase

X
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase

X
101.LAB Inline XBRL Taxonomy Extension Label Linkbase

X

Exhibit

Number

Description

Previously Filed

Filed

Herewith

Form

File No.

Filing Date

Exhibit

3.1

Amended and Restated Certificate of Incorporation of Gevo, Inc.

10-K

001-35073

February 24, 2022

3.1

3.2

Second Amended and Restated Bylaws of Gevo, Inc.

8-K

001-35073

November 24, 2021

3.1

4.1

Form of Gevo, Inc. Common Stock Certificate.

S-1

333-168792

January 19, 2011

4.1

10.1*

Fuel Sales Agreement, dated July 18, 2022, by and between Gevo, Inc. and American Airlines, Inc.

8-K

001-35073

July 22, 2022

10.1

31.1

Section 302 Certification of the Principal Executive Officer.

31.2

Section 302 Certification of the Principal Financial Officer.

32.1

Section 906 Certification of the Principal Executive Officer and Principal Financial Officer.**

101.INS

Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH

Inline XBRL Taxonomy Extension Schema

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase

104

Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

4342

~~Exhibit~~

~~Number~~

~~Description~~

~~Previously Filed~~

~~Filed~~

~~Herewith~~

~~Form~~

~~File No.~~

~~Filing Date~~

~~Exhibit~~

~~101.PRE~~

~~Inline XBRL Taxonomy Extension Presentation Linkbase~~

~~104~~

~~Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)~~


+			Certain portions of the exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is not material and is the type of information that the registrant treats as private or confidential.
			Information that was omitted has been noted in this document with a placeholder identified by the mark “[*****]".
**			Furnished herewith.

4443

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Gevo, Inc.

(REGISTRANT)


By:			/s/ Alisher Nurmat
			Alisher Nurmat, CPA Vice President and Controller (Principal Accounting Officer)

Date: ~~August~~November 8, 2022

4544


	Issuance Date	Expiration Date	Exercise Price as of June 30, 2022		Shares Underlying Warrants on Issuance Date	Shares Issued upon Warrant Exercises as of June 30, 2022		Shares Underlying Warrants Outstanding as of June 30, 2022
Series 2020-A Warrants (1)	7/6/2020	7/6/2025	$	0.60	30,000,000	29,914,069		85,931
Series 2022-A Warrants (1)	6/8/2022	6/7/2027	$	4.37	33,333,336	—		33,333,336
Total Warrants					63,333,336	29,914,069	—	33,419,267


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
April 1 - April 30, 2022	11,135	$	4.58	—	—
May 1 - May 30, 2022	1,081	$	4.02	—	—
June 1 - June 30, 2022	2,299	$	3.14	—	—
Total	14,515	$	3.91	—	—