Aemetis (AMTX) 10-Q7 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Jul. 31, 2014
Document And Entity Information	'	'
Entity Registrant Name	'AEMETIS, INC.	'
Entity Central Index Key	'0000738214	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	20,432,827
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_CONDENSED_BALANCE

CONSOLIDATED CONDENSED BALANCE SHEET (Unaudited) (USD $)	Jun. 30, 2014		Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Current assets:	'		'
Cash and cash equivalents	$4,780		$4,926
Accounts receivable	828		2,764
Inventories	5,052		4,098
Prepaid expenses	1,416		584
Other current assets	695		335
Total current assets	12,771		12,707
Property, plant and equipment, net	77,180		78,928
Goodwil	968		968
Intangible assets, net of accumulated amortization of $224 and $184, respectively	1,576		1,616
Other assets	2,952		2,923
Total assets	95,447		97,142
Current liabilities:	'		'
Accounts payable	9,242		9,366
Current portion of long term	5,934		10,257
Short term borrowings	6,212		7,709
Mandatorily redeemable Series B convertible preferred stock	2,590		2,540
Other current liabilities	6,937		6,245
Total current liabilities	30,915		36,117
Long term liabilities	'		'
Long term debt	65,301		73,792
Other long term liability	314		0
Total long term liabilities	65,615		73,792
Stockholders' deficit:	'		'
Series B convertible preferred stock, $0.001 par value; 7,235 authorized; 2,376 and 2,401 shares issued and outstanding each period, respectively (aggregate liquidation preference of $7,128 and $7,203, respectively)	2		2
Common stock, $0.001 par value; 40,000 authorized; 20,428 and 19,974 shares issued and outstanding, respectively *	20	[1]	20	[1]
Additional paid-in capital	85,540	[1]	84,373	[1]
Accumulated deficit	-83,837		-94,246
Accumulated other comprehensive loss	-2,808		-2,916
Total stockholders' deficit	-1,083		-12,767
Total liabilities and stockholders' deficit	$95,447		$97,142

[1]	The Common Stock and Additional paid-in capital for all periods presented reflect the one-for-ten reverse split, which took effect May 15, 2014.

CONSOLIDATED_CONDENSED_BALANCE1

CONSOLIDATED CONDENSED BALANCE SHEET (Unaudited) (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Intangible assets, net of accumulated amortization	$224	$184
Series B Preferred stock, par value	$0.00	$0.00
Series B Preferred stock, authorized	7,235	7,235
Series B Preferred stock, shares issued	2,376	2,401
Series B Preferred stock, shares outstanding	2,376	2,401
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	20,428	19,974
Common stock, shares outstanding	20,428	19,974

CONSOLIDATED_CONDENSED_STATEME

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS) (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenues	$57,195	$47,353	$117,860	$66,773
Cost of goods sold	45,842	43,602	90,883	62,775
Gross profit	11,353	3,751	26,977	3,998
Research and development expenses	141	124	241	353
Selling, general and administrative expenses	3,449	3,984	6,291	8,199
Operating income/(loss)	7,763	-357	20,445	-4,554
Other income/(expense)	'	'	'	'
Interest rate expense	-2,530	-2,913	-5,450	-5,583
Amortization expense	-2,502	-6,072	-4,620	-8,346
Loss on debt extinguishment	0	-231	-115	-1,188
Gain (loss) on sale/disposal of assets	-119	48	-119	174
Other income	110	-68	274	97
Income (loss) before income taxes	2,722	-9,593	10,415	-19,400
Income tax expense	0	0	-6	-6
Net income/(loss)	2,722	-9,593	10,409	-19,406
Other comprehensive income	'	'	'	'
Foreign currency translation adjustment	0	-600	108	-400
Comprehensive income (loss)	$2,722	($10,193)	$10,517	($19,806)
Net income(loss) per common share	'	'	'	'
Basic	$0.13	($0.51)	$0.52	($1.04)
Diluted	$0.13	($0.51)	$0.49	($1.04)
Weighted average shares outstanding	'	'	'	'
Basic	20,284	18,964	20,146	18,596
Diluted	20,948	18,964	21,299	18,596

CONSOLIDATED_CONDENSED_STATEME1

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Operating activities:	'	'
Net income/ (loss)	$10,409	($19,406)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activitites:	'	'
Share-based compensation	290	680
Depreciation	2,302	2,318
Debt related amortization expense	4,620	8,346
Intangibles and other amortization expense	64	144
Change in fair value of warrant liability	119	-188
Loss on extinguishment of debt	115	1,188
(Gain) loss on sale/ Disposal of assets	119	-174
Changes in operating assets and liabilities:	'	'
Accounts receivable	1,946	-3,404
Inventory	-865	127
Prepaid expenses	-117	42
Other current assets and other assets	-396	-317
Accounts payable	-180	-2
Accrued interest expense and fees, net of payments	372	5,966
Other liabilities	489	-1,107
Net cash provided by (used in) in operating activities	19,287	-5,787
Investing activities:	'	'
Capital expenditures	-467	-75
Proceeds from the sale of assets	99	400
Net cash (used in) provided by in investing activities	-368	325
Financing activities:	'	'
Proceeds from borrowings	1,966	7,207
Repayments of borrowings	-21,025	-2,987
Issuance of Common stock for services, Option and Warrant exercises	4	1,083
Net cash (used in) provided by financing activities	-19,055	5,303
Effect of exchange rate changes on cash and cash equivalents	-10	-7
Net cash and cash equivalents decrease for period	-146	-166
Cash and cash equivalents at beginning of period	4,926	291
Cash and cash equivalents at end of period	4,780	125
Supplemental disclosures of cash flow information, cash paid:	'	'
Interest payments	4,809	1,296
Income taxes expense	6	6
Supplemental disclosures of cash flow information, non-cash transactions:	'	'
Proceeds from exercise of stock options applied to accounts payable	16	0
Issuance of warrants to subordinated debt holders	95	1,127
Transfer between debt and other liabilities	438	0
Stock issued in connection with services	715	0
Payments of principal, fees and interest paid in Stock	0	1,761
Issuance of shares to related party for repayment of line of credit	0	822
Issuance of warrants to non-employees to secure procurement and working capital	0	336
Other asset transferred to related party	0	170
Warrant liability transferred to equity upon exercise	0	1,007
Exercise of conversion feature on note to equity	$47	$0

1_Nature_of_Activities_and_Sum

1. Nature of Activities and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
1. Nature of Activities and Summary of Significant Accounting Policies	'
	Nature of Activities. These consolidated financial statements include the accounts of Aemetis, Inc., a Nevada corporation, and its wholly owned subsidiaries (collectively, “Aemetis” or the “Company”):

	●	Aemetis Americas, Inc., a Nevada corporation and its subsidiary AE Biofuels, Inc., a Delaware corporation;

	●	Biofuels Marketing, Inc., a Delaware corporation;

	●	Aemetis International, Inc., a Nevada corporation and its subsidiary International Biofuels, Ltd., a Mauritius corporation and its subsidiary Universal Biofuels Private, Ltd., an India company;

	●	Aemetis Technologies, Inc., a Delaware corporation;

	●	Aemetis Biochemicals, Inc., a Nevada corporation;

	●	Aemetis Biofuels, Inc., a Delaware corporation and its subsidiary Energy Enzymes, Inc., a Delaware corporation;

	●	AE Advanced Fuels, Inc., a Delaware corporation and its subsidiaries Aemetis Advanced Fuels Keyes, Inc., a Delaware corporation and Aemetis Facility Keyes, Inc., a Delaware corporation; and,

	●	Aemetis Advanced Fuels, Inc., a Nevada corporation.

	Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of first generation ethanol and biodiesel plants into advanced biorefineries. The Company owns and operates a plant in Keyes, California where the Company manufactures and produces ethanol, wet distillers’ grain (WDG), condensed distillers solubles (CDS) and corn oil and a manufacturing and refining facility in Kakinada, India where the Company manufactures and produces fatty acid methyl ester ( biodiesel), crude and refined glycerin and refined palm oil. In September 2013, the Company received approval by the US Environmental Protection Agency to produce ethanol using grain sorghum and biogas along with the Keyes plant existing combined heat and power systems to generate higher value D5 Advanced Biofuel Renewable Identification Numbers (RIN’s). In April 2014, the Company received the International Sustainability and Carbon Certification for the production of biodiesel at the India plant from certain oils and fats for sale into European markets. The Company completed the EPA process for importation of our India biodiesel into the United States. In addition, the Company is continuing research and development focused on microbial technologies for the commercialization of renewable industrial biofuels and biochemicals.

	Basis of Presentation and Consolidation. The consolidated condensed financial statements include the accounts of Aemetis, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated condensed balance sheet as of June 30, 2014, the consolidated condensed statements of operations for the three and six months ended June 30, 2014 and 2013, and the consolidated condensed statements of cash flows for the six months ended June 30, 2014 and 2013 are unaudited. The consolidated condensed balance sheet as of December 31, 2013 was derived from the 2013 audited consolidated financial statements and notes thereto. The consolidated condensed financial statements in this report should be read in conjunction with the 2013 audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013.

	The accompanying consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

	In the opinion of management, the unaudited interim consolidated condensed financial statements for the three and six months ended June 30, 2014 and 2013 have been prepared on the same basis as the audited consolidated statements as of December 31, 2013 and reflect all adjustments, consisting primarily of normal recurring adjustments, necessary for the fair presentation of its statement of financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods.

	Reverse Stock Split. In April 2014, our board of directors approved, and submitted a proposal to our stockholders for approval of, a 1 for 10 reverse split of our common stock (the “Reverse Stock Split”). The Reverse Stock Split was intended to increase the market price of our common stock to enhance our ability to meet the initial listing requirements of the NASDAQ Global Market and to make our common stock more attractive to a broader range of institutional and other investors. Our stockholders approved the Reverse Stock Split on May 9, 2014 and we filed a Certificate of Change with the Secretary of State of the State of Nevada to effect the Reverse Stock Split on May 9, 2014. The Reverse Stock Split became effective with the Financial Industry Regulatory Authority (FINRA) on May 15, 2014. Trading on the NASDAQ Global Market commenced on June 5, 2014.

	Upon the effectiveness of the Reverse Stock Split, every ten shares of issued and outstanding and authorized Aemetis common stock was automatically combined into one share of common stock with any fractional shares rounded up to the next whole share and without any change in the per share par value. The Reverse Stock Split reduced the number of outstanding shares of Aemetis common stock from approximately 201.7 million shares to approximately 20.2 million shares. The authorized shares of Aemetis common stock were also proportionally reduced from 400 million shares to 40 million shares.

	Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted. to reflect the Reverse Stock Split.

	Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. To the extent there are material differences between these estimates and actual results, the Company’s consolidated financial statements will be affected.

	Revenue recognition. The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the price is fixed or determinable and collection is reasonably assured. The Company records revenues based upon the gross amounts billed to its customers. Revenue from nonmonetary transactions, principally in-kind by-products received in exchange for material processing where the by-product is contemplated by contract to provide value, is recognized at the quoted market price of those goods received or by-products.

	Cost of Goods Sold. Cost of goods sold includes those costs directly associated with the production of revenues, such as raw material, factory overhead and other direct production costs. During periods of idle plant capacity, costs otherwise charged to cost of goods sold are reclassified to selling, general and administrative expense.

	Shipping and Handling Costs. Shipping and handling costs are classified as a component of cost of goods sold in the accompanying consolidated statements of operations.

	Reclassifications. Certain prior quarter amounts were reclassified to conform to current period presentation. These reclassifications had no impact on previously reported net loss or accumulated deficit.

	Research and Development. Research and development costs are expensed as incurred, unless they have alternative future uses to the Company.

	Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances at various financial institutions domestically and abroad. The Federal Deposit Insurance Corporation (FDIC) insures domestic cash accounts. The Company’s accounts at these institutions may at times exceed federally insured limits. The Company has not experienced any losses in such accounts.

	Accounts Receivable. The Company sells ethanol, wet distiller grains, condensed distillers solubles and corn oil directly and through third-party marketing arrangements generally without requiring collateral. The Company sells biodiesel, glycerin and processed natural oils to a variety of customers and may require advanced payment based on the size and creditworthiness of the customer. Accounts receivable consist of product sales made to large creditworthy customers. Trade accounts receivable are presented at original invoice amount, net of the allowance for doubtful accounts.

	The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once a lack of collectability has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, additional allowances may be required.

	Inventories. Inventories are stated at the lower of cost, using the first-in and first-out (FIFO) method, or market.

	Property, Plant and Equipment. Property, plant and equipment are carried at cost less accumulated depreciation after assets are placed in service and are comprised primarily of buildings, furniture, machinery, equipment, land, and plants in North America and India. When property, plant and equipment are acquired as part of an acquisition, the items are recorded at fair value on the purchase date. It is the Company policy to depreciate capital assets over their estimated useful lives using the straight-line method.

	Goodwill and Intangible Assets. Intangible assets consist of intellectual property in the form of patents pending, in-process research and development and goodwill. Once the patents pending or in-process R&D have secured a definite life in the form of a patent or product, they will be carried at cost less accumulated amortization over their estimated useful life. Amortization commences upon the commercial application or generation of revenue and is amortized over the shorter of the economic life or patent protection period.

	Company intangible assets such as goodwill have indefinite lives and as a result need to be evaluated at least annually, or more frequently, if impairment indicators arise. In the Company’s review, the Company determines the fair value of the reporting unit using market indicators and discounted cash flow modeling. The Company compares the fair value to the net book value of the reporting unit. An impairment loss is recognized when the fair value is less than the related net book value, and an impairment expense is recorded in the amount of the difference. Forecasts of future cash flows are judgments based on the Company’s experience and knowledge of the Company’s operations and the industries in which the Company operates. These forecasts could be significantly affected by future changes in market conditions, the economic environment, including inflation, and the purchasing decisions of the Company’s customers. No indicators warranting reevaluation arose during the three months ended June 30, 2014.

	California Ethanol Producer Incentive Program. The Company is eligible to participate in the California Ethanol Producer Incentive Program (“CEPIP”). Under the CEPIP an eligible California ethanol facility may receive up to $3 million in cash per plant per year of operations through 2013 when current production corn crush spreads, measured as the difference between specified ethanol and corn index prices, drop below $0.55 per gallon. The California Energy Commission determines on an annual basis the funding allocated to the program. No funds were allocated to this program during the government’s 2012 fiscal year. For any month in which a payment is made by the CEPIP, the Company may be required to reimburse the funds within the subsequent five years from each payment date, if the corn crush spreads exceed $1.00 per gallon. Since these funds are provided to subsidize current production costs and encourage eligible facilities to either continue production or start up production in low margin environments, the Company records the proceeds, if any, as a credit to cost of goods sold. The Company will assess the likelihood of reimbursement in future periods as corn crush spreads approach $1.00 per gallon. If it becomes likely that amounts may be reimbursable by the Company, the Company will accrue a liability for such payment and recognize the costs as an increase in cost of goods sold. With respect to CEPIP payments received and applied as reductions to cost of goods sold, the Company recorded none three and six months ended June 30, 2014 and 2013, respectively. During the six months ended June 30, 2014, the strength of the crush spread resulted in the accrual and obligation to repay CEPIP funding in the amount of $1.8 million, the entire remaining amount of funds received from the program. As of June 30, 2014 and December 31, 2013, the Company carried an obligation of $1.5 million and $0.1 million. As a result of the current accrual, there are no further contingent liabilities related to this program.

	Basic and Diluted Net Income (Loss) per Share. Basic income (loss) per share is computed by dividing income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income/(loss) per share reflects the dilution of common stock equivalents such as options, convertible preferred stock, debt and warrants to the extent the impact is dilutive. As the Company incurred net income for the three and six months ended June 30, 2014, potentially dilutive securities have been included in the diluted net income per share computations and any potentially anti-dilutive shares have been excluded and are shown below. As the Company incurred net loss for the three and six months ended June 30, 2013, potentially dilutive securities have been excluded from the diluted net loss per share computations as their effect would be anti-dilutive.

	The following table reconciles the number of shares utilized in the net income (loss) per share calculations for three and six months ended June 30, 2014 and 2013:

		Three months ended					Six months ended
		30-Jun-14		30-Jun-13			30-Jun-14		30-Jun-13
		(In thousands, except per share amounts)					(In thousands, except per share amounts)

Net income (loss)		$	2,722	$	(9,593	)	$	10,409	$	(19,406	)

Shares:
Weighted average shares outstanding—basic			20,284		18,964			20,146		18,596

Weighted average dilutive share equivalents from preferred shares			238		-			238		-
Weighted average dilutive share equivalents from stock options			232		-			134		-
Weighted average dilutive share equivalents from common warrants			194		-			781		-

Weighted average shares outstanding—diluted			20,948		18,964			21,299		18,596


Earnings (loss) per share—basic		$	0.13	$	(0.51	)	$	0.52	$	(1.04	)

Earnings (loss) per share—diluted		$	0.13	$	(0.51	)	$	0.49	$	(1.04	)

The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2014 and June 30, 2013:

		As of
		30-Jun-14		30-Jun-13

Series B preferred			-		3,078
Common stock options and warrants			587		1,258
Convertible promissory note			-		18
Total number of potentially dilutive shares excluded from the basic and diluted net income (loss) per share calculation			587		4,354

Comprehensive Income. ASC 220 Comprehensive Income requires that an enterprise report, by major components and as a single total, the change in its net assets from non-owner sources. The Company’s other comprehensive income and accumulated other comprehensive income consists solely of cumulative currency translation adjustments resulting from the translation of the financial statements of its foreign subsidiaries. The investment in these subsidiaries is considered indefinitely invested overseas, and as a result, deferred income taxes are not recorded for the currency translation adjustments.

Foreign Currency Translation/Transactions. Assets and liabilities of the Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated into U.S. dollars at exchange rates in effect at the balance sheet date; with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income. Income and expense accounts are translated at average exchange rates during the year. Gains and losses from foreign currency transactions are recorded in other income.

Operating Segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Aemetis recognizes two reportable geographic segments: “North America” and “India.”

The “North America” operating segment includes the Company’s 55 million gallon per year nameplate capacity ethanol plant in Keyes, California and the research facilities in College Park, Maryland.

The “India” operating segment encompasses the Company’s 50 million gallon per year nameplate capacity biodiesel plant in Kakinada, India, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius.

Fair Value of Financial Instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, and accounts payable, other current liabilities, mandatorily redeemable Series B preferred stock, warrant liability and debt. The fair value of current financial instruments was estimated to approximate carrying value due to the short term nature of these instruments. The carrying amount of debt obligations, including discount issuance costs, held by the senior lender, subordinated debt and the seller note payable, at June 30, 2014 amounted to an aggregate of approximately $68.4 million in outstanding obligations. The debts were determined to have an estimated fair value of $62.7 million based on interest rates for comparable debt. The Company’s debt was valued using inputs from independent consultants evaluating external market inputs and internal financings to determine appropriate discount rates to determine fair value. It was not practicable to determine the fair market value of the Company’s remaining debt obligations due to the lack of availability of comparable credit facilities and the related party nature of the financial arrangements. The warrant liability fair value was estimated using the Black-Scholes valuation pricing model at the end of each reporting period.

Share-Based Compensation. The Company recognizes share based compensation in accordance with ASC 718 Stock Compensation requiring the Company to recognize expense related to the estimated fair value of the Company’s share-based compensation awards at the time the awards are granted adjusted to reflect only those shares that are expected to vest. To estimate the discount for lack of marketability on restricted stock issued, the Company uses the Black-Scholes valuation pricing model, which assists in deriving the implied price of put options using the put-call parity principle. The price of the put option divided by the market price quoted on the NASDAQ Global Market implies the discount for lack of marketability in valuing issued shares to consultants, debt holders, employees or affiliated investors.

Warrant liability: The Company adopted guidance related to distinguishing liabilities from equity for certain warrants which contain a conditional obligation to repurchase feature. The Company estimates the fair value of future liability on warrants using the Black-Scholes pricing model. Assumptions within the pricing model include: 1) the risk-free interest rate, which comes from the U.S. Treasury yield curve for periods within the contractual life of the warrant 2) the expected life of the warrants is assumed to be the contractual life of the warrants, and, 3) the volatility is estimated based on an average of the historical volatilities.

The Company computes the fair value of the warrant liability at each reporting period and the change in the fair value is recorded through earnings. The key component in the value of the warrant liability is the Company's stock price, which is subject to significant fluctuation and is not under the Company's control. The resulting effect on the Company's net income (loss) is therefore subject to significant fluctuation and will continue to be so until the warrants are exercised, amended or expired. Assuming all other fair value inputs remain constant, the Company will record non-cash expense when the stock price increases and non-cash income when the stock price decreases.

Long - Lived Assets. The Company evaluates the recoverability of long-lived assets with finite lives in accordance with ASC Subtopic 360-10-35 Property Plant and Equipment –Subsequent Measurements, which requires recognition of impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, based on estimated undiscounted cash flows, the impairment loss is measured as the difference between the carrying amount of the assets and its estimated fair value.

Commitments and Contingencies. The Company records and/or discloses commitments and contingencies in accordance with ASC 450 Contingencies. ASC 450 applies to an existing condition, situation, or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur.

Convertible Instruments. The Company evaluates the impacts of convertible instruments based on the underlying conversion features. Convertible Instruments are evaluated for treatment as derivatives that could be bifurcated and recorded separately. Any beneficial conversion feature is recorded based on the intrinsic value difference at the commitment date.

Debt Modification Accounting. The Company evaluates amendments to its debt in accordance with ASC 540-50 Debt – Modification and Extinguishments for modification and extinguishment accounting. This evaluation includes comparing the net present value of cash flows of the new debt to the old debt to determine if changes greater than 10 percent occurred. In instances where the net present value of future cash flows changes more than 10 percent, the Company applies extinguishment accounting and determines the fair value of its debt based on factors available to the Company. See Note 5 for discussion on debt extinguished during the current period.

2_Inventory

2. Inventory	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
2. Inventory	'
	Inventory consists of the following:

		June 30,		December 31,
		2014		2013
	Raw materials	$	2,025	$	597
	Work-in-progress		1,821		1,724
	Finished goods		1,206		1,777
	Total inventory	$	5,052	$	4,098

	As of June 30, 2014 and December 31, 2013, the Company recognized a lower of cost or market reserve of $11 thousand and none, respectively, related to inventory.

3_Property_Plant_and_Equipment

3. Property, Plant and Equipment	6 Months Ended
3. Property, Plant and Equipment	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
3. Property, Plant and Equipment	'
	Property, plant and equipment consist of the following:

		As of
		June 30,			December 31,
		2014			2013
	Land	$	2,782		$	2,765
	Plant and Buildings		82,927			82,355
	Furniture and fixtures		520			558
	Machinery and equipment		2,607			2,076
	Construction in progress		66			539
	Total gross property, plant & equipment		88,902			88,293
	Less accumulated depreciation		(11,722	)		(9,365	)
	Total net property, plant & equipment	$	77,180		$	78,928

	Depreciation on the components of the property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as follows:

		Years
	Plant and Buildings		20 - 30
	Machinery & Equipment		7-May
	Furniture & Fixtures		5-Mar

	For the three months ended June 30, 2014 and June 30, 2013, the Company recorded depreciation expense of $1.1 million and $1.2 million for each period respectively. For the six months ended June 30, 2014 and June 30, 2013, the Company recorded depreciation expense of $2.3 million for each period respectively.

	Management is required to evaluate these long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Management determined there were no triggering events on the long-lived assets during the three and six months ended June 30, 2014.

4_Intangible_Assets_and_Goodwi

4. Intangible Assets and Goodwill	6 Months Ended
4. Intangible Assets and Goodwill	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
4. Intangible Assets and Goodwill	'
	Intangible assets and goodwill consist of $1.0 million in patents, $0.6 million in in-process research and development and $1.0 million in goodwill. Following ASC 350-20-35 guidance, goodwill and indefinite lived intangibles are tested annually in December for impairment at the Aemetis Technologies, Inc. reporting unit level. During the three months ended June 30, 2014 and 2013, the Company recognized amortization expense of $20 thousand each respectively, related to patents. During the six months ended June 30, 2014 and 2013, the Company recognized amortization expense of $40 thousand and $144 thousand, respectively, related to patents.

	Future patent and in-process research and development amortization for the next five years and beyond consists of the following:

	For the twelve months ending June 30,	Amortization
	2014	$	96
	2015		112
	2016		112
	2017		112
	2018		157
	Thereafter		987
	Total	$	1,576

5_Notes_Payable

5. Notes Payable	6 Months Ended
5. Notes Payable	Jun. 30, 2014
Debt Disclosure [Abstract]	'
5. Notes Payable	'
	Debt consists of the notes from our senior lender, Third Eye Capital, acting as Agent for the Purchasers (Third Eye Capital), other working capital lenders and subordinated lenders as follows:

			June 30,		December 31,
			2014		2013
	Third Eye Capital term note		$	7,304	$	7,193
	Third Eye Capital revolving credit facility			23,610		38,349
	Third Eye Capital revenue participation term note			10,048		9,465
	Third Eye Capital acquisition term note			17,512		17,280
	Cilion shareholder seller note payable			5,298		4,869
	State Bank of India secured term loan			5,934		5,857
	Subordinated notes			5,108		5,317
	EB-5 long term promissory notes			1,529		1,037
	Unsecured working capital loans and short-term notes			1,104		2,391
	Total debt			77,447		91,758
	Less current portion of debt			12,146		17,966
	Total long term debt		$	65,301	$	73,792

	Third Eye Capital Note Purchase Agreement

	On July 6, 2012, Aemetis, Inc. and Aemetis Advanced Fuels Keyes, Inc. (“AAFK”), entered into an Amended and Restated Note Purchase Agreement with Third Eye Capital (the “Note Purchase Agreement”). Pursuant to the Note Purchase Agreement, Third Eye Capital extended credit in the form of (i) senior secured term loans in an aggregate principal amount of approximately $7.2 million to replace existing notes held by Third Eye Capital (the “Term Notes”); (ii) senior secured revolving loans in an aggregate principal amount of $18.0 million (“Revolving Credit Facility”); (iii) senior secured term loans in the principal amount of $10.0 million to convert the prior revenue participation agreement to a Note (“Revenue Participation Term Notes”); (iv) senior secured term loans in an aggregate principal amount of $15.0 million (“Acquisition Term Notes”) used to fund the cash portion of the acquisition of Cilion, Inc. After this financing transaction, Third Eye Capital obtained sufficient equity ownership in the Company to be considered a related party (the Term Notes, Revolving Credit Facility, Revenue Participation Term Notes and Acquisition Term Notes are referred to herein collectively as, the “Notes”). Initially, the Acquisition Term Notes and the Revenue Participation Term Notes matured on July 6, 2014, the Term Notes matured on October 18, 2012 and the Revolving Credit Facility matured on July 6, 2013 with extension rights subject to satisfaction of certain conditions. The Notes have all been amended to extend the maturity date to July 1, 2015, as described below.

	In May 2014, Third Eye Capital agreed to the Limited Waiver and Amendment No. 7 to the Note Purchase Agreement to extend the maturity date of the Notes to July 1, 2015, to modify the waterfall table, to fix the interest rate of the Term Notes at 14%, and to redefine the operating cash available to the Company for operating expenses. As consideration, the Company is required to pay an additional extension fee of $2.0 million plus an escalating monitoring fee beginning January 2015.

	Further details regarding the terms of the Notes are set forth below under the heading “Terms of Third Eye Capital Notes.”

	Terms of Third Eye Capital Notes

	Details about each portion of the Third Eye Capital financing facility are as follows:

	A.	Term Notes. As of June 30, 2014, AAFK had $7.3 million in principal and interest outstanding, net of unamortized fair value discounts of $0.2 million. The Term Notes mature on July 1, 2015. Interest on the Term Notes accrues at 14% per annum. The Term Notes contain various covenants, including but not limited to, minimum free cash flow and production requirements and restrictions on capital expenditures. On July 26, 2013 and October 28, 2013, the Company received waivers for certain covenants by Amendment No. 5 and Amendment No. 6 to the Note Purchase Agreement, respectively. Additionally, Amendment No. 5 waived the requirement for minimum monthly base payments, interest payments and mandatory tiered redemption payments in favor of a daily cash flow sweep equal to 20% of cash deposits from operating activities.

	B.	Revolving Credit Facility. On July 6, 2012 AAFK entered into a Revolving Credit Facility with a commitment of $18.0 million. Through various amendments to the Note Purchase Agreement, the amount of the Revolving Loan Facility was increased to approximately $39.0 million. Interest on the Revolving Credit Facility accrues at the prime rate plus 13.75% (17% as of June 30, 2014) payable monthly in arrears. The Revolving Credit Facility matures on July 1, 2015. As of June 30, 2014 AAFK had $23.6 million in principal and interest outstanding, net of unamortized debt issuance costs of $0.8 million, on the Revolving Credit Facility.

	C.	Revenue Participation Term Notes. The Revenue Participation Note bears interest at 5% per annum and matures on July 1, 2015. As of June 30, 2014 AAFK had $10.0 million in principal and interest outstanding, net of unamortized discounts of $0.3 million, on the Revenue Participation Note.

	D.	Acquisition Term Notes. The Acquisition Term Notes accrue interest at prime rate plus 10.75% (14% per annum as of June 30, 2014) and mature on July 1, 2015. As of June 30, 2014 Aemetis Facility Keyes had $17.5 million in principal and interest outstanding, net of unamortized discounts of $0.5 million, on the Term Notes.

	The Third Eye Capital Notes are secured by first-lien deeds of trust on all real and personal property, and assignment of proceeds from all government grants and guarantees from Aemetis, Inc. The Notes all contain cross-collateral and cross-default provisions. McAfee Capital, LLC (“McAfee Capital”), owned by Eric McAfee, the Company’s Chairman and CEO, provided a guaranty of payment and performance up to the amount of $8 million plus interest, secured by 2.4 million shares of common stock of Aemetis that it owns. McAfee Capital owns 3.4 million shares of common stock of Aemetis. In addition, Mr. McAfee himself also provided a lien on substantially all of his personal assets, and a guaranty of payment and performance up to the amount of $15.0 million plus interest.

	Cilion shareholder seller note payable. The Company’s merger with Cilion on July 6, 2012 provided $5.0 million in notes payable to Cilion shareholders as merger compensation subordinated to the senior secured Third Eye Capital Notes. The liability bears interest at 3% per annum and is due and payable after the Third Eye Capital Notes have been paid in full. As of June 30, 2014, Aemetis Facility Keyes, Inc. had $5.3 million in principal and interest outstanding under the Cilion shareholder seller note payable.

	State Bank of India secured term loan. On July 17, 2008, Universal Biofuels Private Limited (“UBPL”), the Company’s India operating subsidiary, entered into a six year secured term loan with the State Bank of India in the amount of approximately $6.0 million. The term loan matured in March 2014 and is secured by UBPL’s assets, consisting of the biodiesel plant and land in Kakinada.

	In July 2008, the Company drew approximately $4.6 million against the secured term loan. The loan principal amount is repayable in 20 quarterly installments of approximately $0.3 million, using exchange rates corresponding to the date of payment, with the first installment due in June 2009 and the last installment payment due in March 2014. As of June 30, 2014, the 12% interest rate under this facility is subject to adjustment every two years, based on 0.25% above the Reserve Bank of India advance rate. The principal payments scheduled for June 2009 through December 2013 were not made. The term loan provides for liquidating damages at a rate of 2% per annum for the period of default.

	On March 10, 2011, one of our subsidiaries, UBPL received a demand notice from the State Bank of India with respect to the Agreement of Loan for Overall Limit dated as of June 26, 2008. The notice informs UBPL that an event of default has occurred for failure to make an installment payment on the loan since June 2009 and demands repayment of the entire outstanding indebtedness of 19.60 crore rupees (approximately $3.2 million) together with all accrued interest thereon and any applicable fees and expenses. As of June 30, 2014, UBPL was in default on interest and principal repayments, and all covenants, including asset coverage and debt service coverage ratios. Additional provisions of default include the bank having the unqualified right to disclose or publish the Company’s name and its director’s names as defaulter in any medium or media. At the bank’s option, it may also demand payment of the balance of the loan, since the principal payments have been in default since June 2009. As a result, the Company has classified the entire loan amount as current. The State Bank of India has filed a legal case before the Debt Recovery Tribunal (“DRT”), Hyderabad, for recovery of approximately $5.0 million against the Company and also impleaded Andhra Pradesh Industrial Infrastructure Corporation (“APIIC”) to expedite the process of registration of the factory land for which counter reply is yet to be filed by APIIC. UBPL asserts that the State Bank of India did not provide the committed funding of the working capital loan and only funded a portion of the term loan, thus requiring the Company to enter into a working capital facility at unfavorable terms which served to hinder the business from developing at the planned rate. The State Bank of India has additionally required the personal guarantee of a former Executive Officer and the registration of the land underlying the factory as conditions prior to restructure of the loan. Payments have recently been made against the facility; however, the State Bank of India has rejected these payments as a good faith effort. In January 2014, the Company made payment of $162 thousand (1 crore rupees) against principal on the facility which was accepted by the State Bank of India. UBPL filed for a stay against further collection efforts pending the development of sufficient business in a domestic or international market that would allow UBPL to make meaningful repayments against the facility. In May 2014, UBPL obtained an interim stay subject to payments of 1 crore rupees (approximately $0.2 million) each by May 15, 2014 and June 15, 2014. UBPL made these payments promptly. In the event that the Company is unable to prevail with the aforementioned legal case, DRT may pass a decree for recovery of the amount due, which could include seizing Company property for recovery of amounts due. As of June 30, 2014 and December 31, 2013, the State Bank of India loan had $2.8 million and $3.2 million, respectively, in principal outstanding and accrued interest plus default interest of $3.2 million and $2.7 million respectively.

	Subordinated Notes. On January 6 and January 9, 2012, AAFK entered into Note and Warrant Purchase Agreements with two accredited investors pursuant to which it issued $3.0 million in 5% annual interest rate notes to the investors (the “Sub Notes”). An additional $0.6 million and $0.8 million in Sub Notes were issued to one of the existing accredited investor’s Sub Notes balance in May and December 2012, respectively. This same accredited investor received payments of $0.6 million in principal and $3 thousand in interest in July 2012. The Sub Notes included 2-year warrants exercisable for 170 thousand shares of Aemetis common stock at a price of $0.01 per share, subject to adjustment. Interest is due at maturity. Neither AAFK nor Aemetis may make any principal payments under the Sub Notes until all loans made by Third Eye Capital to AAFK are paid in full, except for a few exceptions where Sub Note investors will receive funds from EB-5 investments or sale of equipment.

	The Company agreed to an Amendment No.1 to the Sub Notes to extend the maturity of the January 2012 Sub Notes to July 1, 2014 and refinanced the additional December 2012 Sub Note as two Sub Notes dated December 2012 and January 19, 2013, with principal amounts of $0.5 million and $0.1 million, respectively. Both the December 2012 Sub Note and the January 19, 2013 Sub Note had a maturity date of April 30, 2013. On January 24, 2013, an additional $0.3 million Sub Note was issued with a maturity date of April 30, 2013. On May 23, 2013, all Sub Notes above with a maturity date of April 30, 2013 were refinanced as a $1.0 million Sub Note (“May 2013 Note”) with a maturity date of December 31, 2013.

	On January 1, 2014, the May 2013 Sub Note was amended to extend the maturity date until the earlier of (i) June 30, 2014; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; (iii) the completion of an Initial Public Offering by AAFK or Aemetis; or (iv) after the occurrence of an Event of Default, including failure to pay interest or principal when due and breaches of note covenants. A 10 percent cash extension fee was paid by adding the fee to the balance of the new Note and 30 thousand in common stock warrants were granted with a term of two years and an exercise price of $0.01 per share. These January 1, 2014 amendments and the refinancing terms of the Note were evaluated and determined in accordance with ASC 470-50 Debt – Modification and Extinguishment that the loan was extinguished and as a result a loss on debt extinguishment of approximately $0.1 million was recorded in January 2014.

	In March 2014, the Company received $0.5 million from EB-5 investments and paid to one of accredited investors holding a sub note of January 2012 of $0.5 million.

	On July 1, 2014, the January 2014 Sub Note and two January 2013 Sub Notes with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2014; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; (iii) the completion of an Initial Public Offering by AAFK or Aemetis; or (iv) after the occurrence of an Event of Default, including failure to pay interest or principal when due and breaches of note covenants. A 10 percent cash extension fee was paid by adding the fee to the balance of the new Note and 118,107 in common stock warrants were granted with a term of two years and an exercise price of $0.01 per share. We evaluated these July 1, 2014 amendments and the refinancing terms of the Notes and determined in accordance with ASC 470-50 Debt – Modification and Extinguishment that the loans were extinguished and as a result a loss on debt extinguishment of approximately $1.2 million was recorded in July 2014. See Note 14 – Subsequent Events.

	On January 14, 2013, Laird Cagan, a related party, loaned $0.1 million through a promissory note maturing on April 30, 2013 with a five percent annualized interest rate and the right to exercise 5 thousand warrants exercisable at $0.01 per share.

	At June 30, 2014 and December 31, 2013, the Company owed, in aggregate, subordinated notes in the amount of $5.1 million and $5.3 million in principal and interest outstanding, net of unamortized issuance and fair value discounts of $2 thousand and $0.3 million, respectively.

	EB-5 long-term promissory notes. EB-5 is a US government program authorized by the Immigration and Nationality Act designed to foster employment-based visa preference for immigrant investors to encourage the flow of capital into the U.S. economy and to promote employment of U.S. workers. On March 4, 2011, and amended January 19, 2012, and July 24, 2012, the Company entered into a Note Purchase Agreement with Advanced BioEnergy, LP, a California limited Partnership authorized as a Regional Center to receive EB-5 investments, for the issuance of up to 72 subordinated convertible promissory notes bearing interest at 3%, each note in the principal amount of $0.5 million is due and payable four years from the date of the note for a total aggregate principal amount of up to $36.0 million. The notes are convertible after three years at a conversion price of $30.00 per share.

Advanced BioEnergy, LP arranges investments with foreign investors, who each make investments in the Keyes plant project in investment increments of $0.5 million. The Company sold notes in the amount of $1.0 million to the first two investors during the fourth quarter of 2012 and sold a $0.5 million note to an investor during the first quarter of 2014. As of June 30, 2014, $29 thousand in accrued interest remained outstanding on the notes. The availability of the remaining $35.0 million will be determined by the ability of Advanced BioEnergy, LP to attract additional qualified investors.

Unsecured working capital loans. In November 2008, the Company entered into an operating agreement with Secunderabad Oils Limited (“Secunderabad”). Under this agreement Secunderabad agreed to provide the Company with working capital, on an as needed basis, to fund the purchase of feedstock and other raw materials for its Kakinada biodiesel facility. Working capital advances bear interest at the actual bank borrowing rate of Secunderabad of fifteen percent (15%). In return, the Company agreed to pay Secunderabad an amount equal to 30% of the plant’s monthly net operating profit. In the event that the Company’s biodiesel facility operates at a loss, Secunderabad owes the Company 30% of the losses. The agreement can be terminated by either party at any time without penalty.

During the three and six months ended June 30, 2014, the Company made principal payments to Secunderabad of approximately $1.0 million and $2.3 million, respectively, under the agreement and interest payments of approximately $23 thousand and $74 thousand respectively, for working capital funding. During the three and six months ended June 30, 2013, the Company made principal payments to Secunderabad of approximately $1.8 million and $2.8 million, respectively, under the agreement and interest payments of approximately $37 thousand and $129 thousand, respectively, for working capital funding. At June 30, 2014 and December 31, 2013 the Company had approximately $1.1 million and $1.9 million outstanding under this agreement, respectively.

Short-term notes. Aemetis Technologies, formerly Zymetis, Inc., carries certain debt obligations associated with a series of grants issued by the Maryland Department of Business and Economic Development to Zymetis prior to the merger. These grants were converted to promissory notes with interest upon the achievement of certain objectives. In the first quarter of 2014, the Company entered into a payment settlement agreement to pay off the principal and interest of approximately $0.4 million in monthly installments. As part of this agreement, the long term debt of $0.4 million has been classified into other long term liabilities. At June 30, 2014, the Company had approximately $314 thousand and $88 thousand in the other long term liabilities and other current liabilities, respectively. The remaining promissory note with principal and interest of approximately $47 thousand was converted in May 2014 at $2.50 per share into common stock of the Company.


Scheduled debt repayments for loan obligations follow:

Twelve months ended June 30,		Debt Repayments
2015		$	12,148
2016			63,089
2017			3,577
2018			-
2019			500
Total debt			79,314
Discounts			(1,867	)
Total debt, net of discounts		$	77,447

6_Operating_Leases

6. Operating Leases	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
6. Operating Leases	'
	The Company, through its subsidiaries, has non-cancelable operating leases for office space in Cupertino and India. Future minimum operating lease payments as of June 30, 2014 are as follows:

	Twelve months ended June 30,	Future Rent Payments
	2015	$	218


	For the three months ended June 30, 2014 and 2013, the Company recognized lease and rent expense of $106 thousand and $103 thousand respectively, under existing operating leases. For the six months ended June 30, 2014 and 2013, the Company recognized lease and rent expense of $212 thousand each period, respectively, under existing operating leases.

7_Outstanding_Warrants

7. Outstanding Warrants	6 Months Ended
7. Outstanding Warrants	Jun. 30, 2014
Text Block [Abstract]	'
7. Outstanding Warrants	'
	During the three months ended June 30, 2014, the Company did not issue any common stock warrants. During the six months ended June 30, 2014, the Company issued 30 thousand common stock warrants, which have the potential to enhance returns for accredited investors who entered into additional Notes and Warrant Purchase Agreements.

	For the three and six months ended June 30, 2014, Note investors exercised 54 thousand and 84 thousand warrant shares at the weighted average exercise price of $4.96 and $3.20 per share respectively.

	A summary of warrant activity as of June 30, 2014 follows:

		Warrants Outstanding & Exercisable			Weighted - Average Exercise Price		Average Remaining Term in Years
	Outstanding December 31, 2013		470		$	3.4		4.85
	Expired		-			-
	Granted		30			0.01
	Exercised		(30	)		0.01
	Outstanding March 31, 2014		470		$	3.41		4.6
	Expired		(47	)		4.98
	Granted		-			-
	Exercised		(54	)		4.96
	Outstanding June 30, 2014		369		$	2.99		3.12

8_Fair_Value_of_Warrants

8. Fair Value of Warrants	6 Months Ended
8. Fair Value of Warrants	Jun. 30, 2014
Notes to Financial Statements	'
8. Fair Value of Warrants	'
	The following tables summarize the assumptions used in computing the fair value of liability warrants subject to fair value accounting at the date of issue during the three months ended June 30, 2014:

	Expected dividend yield		0	%
	Risk-free interest rate		0. 88% - 1.25	%
	Expected volatility		77.84% - 78.89	%
	Expected Life (years)		3.0 - 3.5
	Exercise price	$	0.01
	Company stock price	$	9.54

9_Fair_Value_Measurements

9. Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

9. Fair Value Measurements

The Company complies with the fair value measurements and disclosures standard which defines fair value, establishes a framework for measuring fair value, and expands disclosure for those assets and liabilities carried on the balance sheet on a fair value basis.

The Company's balance sheet contains derivative financial instruments that are recorded at fair value on a recurring basis. Fair value measurements and disclosures require that assets and liabilities carried at fair value be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value.

Level 1 uses quoted market prices in active markets for identical assets or liabilities.

Level 2 uses observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3 uses unobservable inputs that are not corroborated by market data.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Warrant liability: The warrant liability consists of stock warrants issued by the Company that contain conditional obligation to repurchase feature. In accordance with accounting for warrants as liabilities, the Company calculated the fair value of warrants under Level 3 using the assumptions described in “Fair Value of Warrants”. Realized and unrealized gains and losses related to the change in fair value of the warrant liability are included in other income on the Statement of Operations.

The following table summarizes financial liabilities measured at fair value on a recurring basis as of June 30, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Total

Level 1

Level 2

Level 3

Warrant liability

179

The following table reflects the activity for liabilities measured at fair value using Level 3 inputs as of June 30, 2014:

Balance as of December 31, 2013

Issuances of warrant liabilities

Exercise of warrant liabilities

Related change in fair value

Balance as of March 31, 2014

108

Issuances of warrant liabilities

Exercise of warrant liabilities

Related change in fair value

Balance as of June 30, 2014

179

10_Stock_Based_Compensation

10. Stock Based Compensation	6 Months Ended
10. Stock Based Compensation	Jun. 30, 2014
Stockholders' deficit:	'
10. Stock Based Compensation	'
	Common Stock Reserved for Issuance

	Aemetis authorized the issuance of 1.2 million shares of common stock under its the Zymetis 2006 Stock Plan and Amended and Restated 2007 Stock Plan (together, the “Company Stock Plans”), which includes both incentive and non-statutory stock options. These options generally expire five years from the date of grant and are exercisable at any time after the date of the grant, subject to vesting.

	The following is a summary of options granted under the employee stock plans:

	Six months ended		Shares Available for Grant				Number of Shares Outstanding			Weighted-Average Exercise Price
	Balance as of December 31, 2013			74				913		$	4.9
	Authorized			100				—			—
	Granted			(148	)			148			4.2
	Exercised			—				(144	)		1.6
	Forfeited/expired			65				(65	)		2.69
	Balance as of June 30, 2014			91				852		$	5.56

	For the three months ended June 30, 2014 and 2013 the Company recorded option expenses in the amount of $159 thousand and $123 thousand for each period. Included in the three months ended June 30, 2014 and 2013 option expenses were $8 thousand and $1 thousand, respectively, of outstanding consultant options subject to periodic fair value re-measurement under ASC 505-50-30 Equity Based Payments to Non Employees.

	For the six months ended June 30, 2014 and 2013 the Company recorded option expenses in the amount of $290 thousand and $243 thousand for each period. Included in the three months ended June 30, 2014 and 2013 option expenses were $11 thousand and $8 thousand, respectively, of outstanding consultant options subject to periodic fair value re-measurement under ASC 505-50-30 Equity Based Payments to Non Employees.

	The valuation using the Black-Scholes valuation pricing model is based upon the current market value of the Company’s common stock and other current assumptions, including the expected term (contractual term for consultant options). The Company records the expense related to consultant options using the accelerated expense pattern prescribed in ASC 505-50-30.

	Valuation and Expense Information. The weighted-average fair value calculations for consultant and employee options are based on the following weighted average assumptions:

			As of June 30
			2014			2013
	Dividend-yield		0	%		0		%
	Risk-free interest rate		0. 44 - 0.74	%		0.18 - 0.42		%
	Expected volatility		69.33 - 82.28	%		74.83 - 142.90		%
	Expected life (years)		0.8 - 3.0				0.5 - 3.0
	Market value of common stock	$	4.20 - $ 9.54			$	3.2

	As of June 30, 2014, the Company had $1.0 million and $27 thousand of total unrecognized compensation expense for employees and non-employees that the Company will amortize over the 4.0 weighted remaining term of the option agreements.

	Non-Plan Stock Options

	In November 2013 the Company issued 98 thousand stock options to board members and consultants outside of the Company Stock Option Plans. As of June 30, 2014, 83 thousand options vested and 14 thousand unvested at remaining contractual term of 3.4 years. All of the non-plan options remain outstanding.

11_Agreements

11. Agreements	6 Months Ended
11. Agreements	Jun. 30, 2014
Agreements	'
11. Agreements	'
	Working Capital Arrangement. In May 2013 we extended the annual Grain Procurement and Working Capital Agreement with J.D. Heiskell that has been in place since March 2011. Pursuant to the agreement we agreed to procure whole yellow corn and grain sorghum (also called “milo”) from J.D. Heiskell. The Company has the ability to obtain grain from other sources subject to certain conditions, however, in the past all of our grain purchases have been from Heiskell. Title and risk of loss of the corn pass to the Company when the corn is deposited into the weigh bin. The term of the Agreement expires on December 31, 2014 and is automatically renewed for additional one-year terms. Heiskell further agrees to sell all ethanol to Kinergy Marketing or other marketing purchaser designated by the Company and all WDG and condensed distillers solubles to A.L. Gilbert. Our relationships with J.D. Heiskell, Kinergy Marketing, and A.L. Gilbert are well established and the Company believes that the relationships are beneficial to all parties involved in utilizing the distribution logistics, reaching out to widespread customer base, managing inventory, and building working capital relationships. Revenue is recognized upon delivery of ethanol to the J. D. Heiskell as revenue recognition criteria has been met and any performance required of the Company subsequent to the sale to J.D. Heiskell is inconsequential. These agreements are ordinary purchase and sale agency agreements for an ethanol plant.

	The J.D. Heiskell sales activity associated with the Purchasing Agreement, Grain Procurement and Working Capital
	Agreements during the three and six months ended June 30, 2014 were as follows:

		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
	Ethanol sales	$	40,799	$	27,243	$	87,747	$	32,740
	Wet distiller's grains sales		11,708		6,322		21,423		8,006
	Corn oil sales		1,344		455		2,245		630
	Corn purchases		33,619		26,145		66,947		31,519
	Milo Purchases		-		4,648		-		4,648
	Accounts receivable		458		1,578		458		1,578
	Accounts payable		2,122		2,096		2,122		2,096

	Ethanol and Wet Distillers Grains Marketing Arrangement. The Company entered into an Ethanol Marketing Agreement with Kinergy Marketing and a Wet Distillers Grains marketing agreement with A. L Gilbert. Under the terms of the agreements, subject to certain conditions, the agreements mature on August 31, 2014 with automatic one-year renewals thereafter. For the three months ended June 30, 2014 and 2013, the Company expensed marketing costs of $0.8 million and $0.5 million, respectively, under the terms of both ethanol and wet distiller’s grains agreements. For the six months ended June 30, 2014 and 2013, the Company expensed marketing costs of $1.6 million and $0.6 million, respectively.

12_Segment_Information

12. Segment Information	6 Months Ended
12. Segment Information	Jun. 30, 2014
Segment Reporting [Abstract]	'
12. Segment Information	'
	Aemetis recognizes two reportable geographic segments: “North America “ and “India .” The “North America” operating segment includes the Company’s owned ethanol plant in Keyes, California and its technology lab in College Park, Maryland. As the Company’s technology becomes commercialized, this business segment will include its domestic commercial application of second generation ethanol technology, its plant construction projects and any acquisitions of ethanol or ethanol related technology facilities in North America.

	The “India” operating segment includes the Company’s 50 million gallon per year nameplate capacity biodiesel manufacturing plant in Kakinada, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius. The Company’s biodiesel is marketed and sold primarily to customers in India through brokers and by the Company directly.

	Summarized financial information by reportable segment for the three and six months ended June 30, 2014 and 2013 follows:

		For the three months ended June 30,				For the six months ended June 30,
		2014		2013		2014		2013
	Revenues
	North America	$	53,999	$	35,832	$	113,080	$	43,711
	India		3,196		11,521		4,780		23,062
	Total revenues	$	57,195	$	47,353	$	117,860	$	66,773

	Cost of goods sold
	North America	$	42,713	$	34,724	$	86,122	$	43,142
	India		3,129		8,878		4,761		19,633
	Total cost of goods sold	$	45,842	$	43,602	$	90,883	$	62,775

	Gross profit/(loss)
	North America	$	11,286	$	1,108	$	26,958	$	569
	India		67		2,643		19		3,429
	Total gross profit	$	11,353	$	3,751	$	26,977	$	3,998

	India. During the three months ended June 30, 2014, three customers accounted for approximately 96% of the consolidated India segment revenues. During the three months ended June 30, 2013, one customer accounted for approximately 75% of the consolidated India segment revenues.

	North America: During the three months ended June 30, 2014, the Company’s revenues from ethanol, WDG, and corn oil were made pursuant to the Grain Procurement and Working Capital Agreement established between the Company and J.D. Heiskell. Sales of ethanol and WDG to J.D. Heiskell accounted for 98% of the Company’s North America segment revenues for the three months ended June 30, 2014.

	During the three months ended June 30, 2013, Company’s revenues from ethanol, WDG, and corn oil were made pursuant to the Grain Procurement and Working Capital Agreement established between the Company and J.D. Heiskell. Sales of ethanol and WDG to J.D. Heiskell accounted for 98% of the Company’s North America segment revenues for the three months ended June 30, 2013.

	Total assets consist of the following:

		As of		As of
		June 30,		December 31,
		2014		2013

	North America	$	81,226	$	83,183
	India		14,221		13,959
	Total Assets	$	95,447	$	97,142

13_Related_Party_Transactions

13. Related Party Transactions	6 Months Ended
13. Related Party Transactions	Jun. 30, 2014
Related Party Transactions [Abstract]	'
13. Related Party Transactions	'
13. Related Party Transactions	The Company owes Eric McAfee and McAfee Capital, owned by Eric McAfee, $0.4 million and $1.0 million respectively, for salary and expense reimbursements, which are included in accrued expenses and accounts payable on the balance sheet as of June 30, 2014 and December 31, 2013. For the three months ended June 30, 2014 and 2013, the Company expensed $85 thousand and $18 thousand respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the six months ended June 30, 2014 and 2013, the Company expensed $119 thousand and $28 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities.

14_Subsequent_Events

14. Subsequent Events	6 Months Ended
14. Subsequent Events	Jun. 30, 2014
Subsequent Events [Abstract]	'
14. Subsequent Events	'
14. Subsequent Events	On July 1, 2014, the January 2014 Sub Note and two January 2013 Sub Notes with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2014; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; (iii) the completion of an Initial Public Offering by AAFK or Aemetis; or (iv) after the occurrence of an Event of Default, including failure to pay interest or principal when due and breaches of note covenants. A 10 percent cash extension fee was paid by adding the fee to the balance of the new Note and 118,107 in common stock warrants were granted with a term of two years and an exercise price of $0.01 per share. We evaluated these July 1, 2014 amendments and the refinancing terms of the Notes and determined in accordance with ASC 470-50 Debt –Modification and Extinguishment that the loans were extinguished and as a result, a loss on debt extinguishment of approximately $1.2 million was recorded in July 2014.

15_Managements_Plan

15. Management's Plan	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
15. Management's Plan	'
	The accompanying financial statements have been prepared contemplating the realization of assets and satisfaction of liabilities in the normal course of business. During 2014, the Company has been reliant on their senior secured lender to provide additional funding and has been required to remit substantially all excess cash from operations to the senior secured lenders. Management’s plans for the Company include:

	●	Operating the Keyes plant in the current positive margin environment;
	●	Continuing to incorporate lower-cost, non-food advanced biofuels feedstock at the Keyes plant;

	●	Attracting investors to financing arrangements including working with Advanced BioEnergy LP to issue up to $34.5 million of additional EB-5 notes at 3% interest rate;
	●	Refinancing the senior debt with a lender who is able to offer terms conducive to the long term financing of the Keyes plant;

	●	Restructuring or refinancing the State Bank of India note to allow for additional working capital and reduce current financing costs;
	●	Securing higher volumes of international shipments from the Kakinada, India biodiesel and refined glycerin facility; and

	●	Continuing to expand in the India market as the subsidy on diesel is reduced to zero by June 2014.

	Management believes that through the above mentioned actions it will be able to fund company operations and continue to operate the secured assets for the foreseeable future. There can be no assurance that the existing credit facilities and cash from operations will be sufficient nor that the Company will be successful at maintaining adequate relationships with the senior lenders or significant shareholders. Should the Company require additional financing, there can be no assurances that the additional financing will be available on terms satisfactory to the Company.

1_Nature_of_Activities_and_Sum1

1. Nature of Activities and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Proceeds from borrowing under secured debt facilities

Nature of Activities

Nature of Activities. These consolidated financial statements include the accounts of Aemetis, Inc., a Nevada corporation, and its wholly owned subsidiaries (collectively, “Aemetis” or the “Company”):

●

Aemetis Americas, Inc., a Nevada corporation and its subsidiary AE Biofuels, Inc., a Delaware corporation;

●

Biofuels Marketing, Inc., a Delaware corporation;

●

Aemetis International, Inc., a Nevada corporation and its subsidiary International Biofuels, Ltd., a Mauritius corporation and its subsidiary Universal Biofuels Private, Ltd., an India company;

●

Aemetis Technologies, Inc., a Delaware corporation;

●

Aemetis Biochemicals, Inc., a Nevada corporation;

●

Aemetis Biofuels, Inc., a Delaware corporation and its subsidiary Energy Enzymes, Inc., a Delaware corporation;

●

AE Advanced Fuels, Inc., a Delaware corporation and its subsidiaries Aemetis Advanced Fuels Keyes, Inc., a Delaware corporation and Aemetis Facility Keyes, Inc., a Delaware corporation; and,

●

Aemetis Advanced Fuels, Inc., a Nevada corporation.

Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of first generation ethanol and biodiesel plants into advanced biorefineries. The Company owns and operates a plant in Keyes, California where the Company manufactures and produces ethanol, wet distillers’ grain (WDG), condensed distillers solubles (CDS) and corn oil and a manufacturing and refining facility in Kakinada, India where the Company manufactures and produces fatty acid methyl ester ( biodiesel), crude and refined glycerin and refined palm oil. In September 2013, the Company received approval by the US Environmental Protection Agency to produce ethanol using grain sorghum and biogas along with the Keyes plant existing combined heat and power systems to generate higher value D5 Advanced Biofuel Renewable Identification Numbers (RIN’s). In April 2014, the Company received the International Sustainability and Carbon Certification for the production of biodiesel at the India plant from certain oils and fats for sale into European markets. The Company completed the EPA process for importation of our India biodiesel into the United States. In addition, the Company is continuing research and development focused on microbial technologies for the commercialization of renewable industrial biofuels and biochemicals.

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation. The consolidated condensed financial statements include the accounts of Aemetis, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated condensed balance sheet as of June 30, 2014, the consolidated condensed statements of operations for the three and six months ended June 30, 2014 and 2013, and the consolidated condensed statements of cash flows for the six months ended June 30, 2014 and 2013 are unaudited. The consolidated condensed balance sheet as of December 31, 2013 was derived from the 2013 audited consolidated financial statements and notes thereto. The consolidated condensed financial statements in this report should be read in conjunction with the 2013 audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013.

The accompanying consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, the unaudited interim consolidated condensed financial statements for the three and six months ended June 30, 2014 and 2013 have been prepared on the same basis as the audited consolidated statements as of December 31, 2013 and reflect all adjustments, consisting primarily of normal recurring adjustments, necessary for the fair presentation of its statement of financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods.

Reverse Stock Split

Reverse Stock Split. In April 2014, our board of directors approved, and submitted a proposal to our stockholders for approval of, a 1 for 10 reverse split of our common stock (the “Reverse Stock Split”). The Reverse Stock Split was intended to increase the market price of our common stock to enhance our ability to meet the initial listing requirements of the NASDAQ Global Market and to make our common stock more attractive to a broader range of institutional and other investors. Our stockholders approved the Reverse Stock Split on May 9, 2014 and we filed a Certificate of Change with the Secretary of State of the State of Nevada to effect the Reverse Stock Split on May 9, 2014. The Reverse Stock Split became effective with the Financial Industry Regulatory Authority (FINRA) on May 15, 2014. Trading on the NASDAQ Global Market commenced on June 5, 2014.

Upon the effectiveness of the Reverse Stock Split, every ten shares of issued and outstanding and authorized Aemetis common stock was automatically combined into one share of common stock with any fractional shares rounded up to the next whole share and without any change in the per share par value. The Reverse Stock Split reduced the number of outstanding shares of Aemetis common stock from approximately 201.7 million shares to approximately 20.2 million shares. The authorized shares of Aemetis common stock were also proportionally reduced from 400 million shares to 40 million shares.

Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted

Use of Estimates

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. To the extent there are material differences between these estimates and actual results, the Company’s consolidated financial statements will be affected.

Revenue recognition

Revenue recognition. The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the price is fixed or determinable and collection is reasonably assured. The Company records revenues based upon the gross amounts billed to its customers. Revenue from nonmonetary transactions, principally in-kind by-products received in exchange for material processing where the by-product is contemplated by contract to provide value, is recognized at the quoted market price of those goods received or by-products.

Cost of Goods Sold

Cost of Goods Sold. Cost of goods sold includes those costs directly associated with the production of revenues, such as raw material, factory overhead and other direct production costs. During periods of idle plant capacity, costs otherwise charged to cost of goods sold are reclassified to selling, general and administrative expense.

Shipping and Handling Costs

Shipping and Handling Costs. Shipping and handling costs are classified as a component of cost of goods sold in the accompanying consolidated statements of operations.

Reclassifications

Reclassifications. Certain prior quarter amounts were reclassified to conform to current period presentation. These reclassifications had no impact on previously reported net loss or accumulated deficit.

Research and Development

Research and Development. Research and development costs are expensed as incurred, unless they have alternative future uses to the Company.

Cash and Cash Equivalents

Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances at various financial institutions domestically and abroad. The Federal Deposit Insurance Corporation (FDIC) insures domestic cash accounts. The Company’s accounts at these institutions may at times exceed federally insured limits. The Company has not experienced any losses in such accounts.

Accounts Receivable

Accounts Receivable. The Company sells ethanol, wet distiller grains, condensed distillers solubles and corn oil directly and through third-party marketing arrangements generally without requiring collateral. The Company sells biodiesel, glycerin and processed natural oils to a variety of customers and may require advanced payment based on the size and creditworthiness of the customer. Accounts receivable consist of product sales made to large creditworthy customers. Trade accounts receivable are presented at original invoice amount, net of the allowance for doubtful accounts.

The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once a lack of collectability has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, additional allowances may be required.

Inventories

Inventories. Inventories are stated at the lower of cost, using the first-in and first-out (FIFO) method, or market.

Property, Plant and Equipment

Property, Plant and Equipment. Property, plant and equipment are carried at cost less accumulated depreciation after assets are placed in service and are comprised primarily of buildings, furniture, machinery, equipment, land, and plants in North America and India. When property, plant and equipment are acquired as part of an acquisition, the items are recorded at fair value on the purchase date. It is the Company policy to depreciate capital assets over their estimated useful lives using the straight-line method.

Goodwill and Intangible Assets

Goodwill and Intangible Assets. Intangible assets consist of intellectual property in the form of patents pending, in-process research and development and goodwill. Once the patents pending or in-process R&D have secured a definite life in the form of a patent or product, they will be carried at cost less accumulated amortization over their estimated useful life. Amortization commences upon the commercial application or generation of revenue and is amortized over the shorter of the economic life or patent protection period.

Company intangible assets such as goodwill have indefinite lives and as a result need to be evaluated at least annually, or more frequently, if impairment indicators arise. In the Company’s review, the Company determines the fair value of the reporting unit using market indicators and discounted cash flow modeling. The Company compares the fair value to the net book value of the reporting unit. An impairment loss is recognized when the fair value is less than the related net book value, and an impairment expense is recorded in the amount of the difference. Forecasts of future cash flows are judgments based on the Company’s experience and knowledge of the Company’s operations and the industries in which the Company operates. These forecasts could be significantly affected by future changes in market conditions, the economic environment, including inflation, and the purchasing decisions of the Company’s customers. No indicators warranting reevaluation arose during the three months ended June 30, 2014.

California Ethanol Producer Incentive Program. The Company is eligible to participate in the California Ethanol Producer Incentive Program (“CEPIP”). Under the CEPIP an eligible California ethanol facility may receive up to $3 million in cash per plant per year of operations through 2013 when current production corn crush spreads, measured as the difference between specified ethanol and corn index prices, drop below $0.55 per gallon. The California Energy Commission determines on an annual basis the funding allocated to the program. No funds were allocated to this program during the government’s 2012 fiscal year. For any month in which a payment is made by the CEPIP, the Company may be required to reimburse the funds within the subsequent five years from each payment date, if the corn crush spreads exceed $1.00 per gallon. Since these funds are provided to subsidize current production costs and encourage eligible facilities to either continue production or start up production in low margin environments, the Company records the proceeds, if any, as a credit to cost of goods sold. The Company will assess the likelihood of reimbursement in future periods as corn crush spreads approach $1.00 per gallon. If it becomes likely that amounts may be reimbursable by the Company, the Company will accrue a liability for such payment and recognize the costs as an increase in cost of goods sold. With respect to CEPIP payments received and applied as reductions to cost of goods sold, the Company recorded none three and six months ended June 30, 2014 and 2013, respectively. During the six months ended June 30, 2014, the strength of the crush spread resulted in the accrual and obligation to repay CEPIP funding in the amount of $1.8 million, the entire remaining amount of funds received from the program. As of June 30, 2014 and December 31, 2013, the Company carried an obligation of $1.5 million and $0.1 million. As a result of the current accrual, there are no further contingent liabilities related to this program.

Basic and Diluted Net Loss per Share

Basic and Diluted Net Income (Loss) per Share. Basic income (loss) per share is computed by dividing income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income/(loss) per share reflects the dilution of common stock equivalents such as options, convertible preferred stock, debt and warrants to the extent the impact is dilutive. As the Company incurred net income for the three and six months ended June 30, 2014, potentially dilutive securities have been included in the diluted net income per share computations and any potentially anti-dilutive shares have been excluded and are shown below. As the Company incurred net loss for the three and six months ended June 30, 2013, potentially dilutive securities have been excluded from the diluted net loss per share computations as their effect would be anti-dilutive.

The following table reconciles the number of shares utilized in the net income (loss) per share calculations for three and six months ended June 30, 2014 and 2013:

Three months ended

Six months ended

30-Jun-14

30-Jun-13

30-Jun-14

30-Jun-13

(In thousands, except per share amounts)

Net income (loss)

2,722

(9,593

)

10,409

(19,406

)

Weighted average shares outstanding—basic

20,284

18,964

20,146

18,596

Weighted average dilutive share equivalents from preferred shares

238

Weighted average dilutive share equivalents from stock options

232

134

Weighted average dilutive share equivalents from common warrants

194

781

Weighted average shares outstanding—diluted

20,948

18,964

21,299

18,596

Earnings (loss) per share—basic

0.13

(0.51

)

0.52

(1.04

)

Earnings (loss) per share—diluted

0.13

(0.51

)

0.49

(1.04

)

The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2014 and June 30, 2013:

As of

30-Jun-14

30-Jun-13

Series B preferred

3,078

Common stock options and warrants

587

1,258

Convertible promissory note

Total number of potentially dilutive shares excluded from the basic and diluted net income (loss) per share calculation

587

4,354

Comprehensive Income

Comprehensive Income. ASC 220 Comprehensive Income requires that an enterprise report, by major components and as a single total, the change in its net assets from non-owner sources. The Company’s other comprehensive income and accumulated other comprehensive income consists solely of cumulative currency translation adjustments resulting from the translation of the financial statements of its foreign subsidiaries. The investment in these subsidiaries is considered indefinitely invested overseas, and as a result, deferred income taxes are not recorded for the currency translation adjustments.

Foreign Currency Translation/Transactions

Foreign Currency Translation/Transactions. Assets and liabilities of the Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated into U.S. dollars at exchange rates in effect at the balance sheet date; with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income. Income and expense accounts are translated at average exchange rates during the year. Gains and losses from foreign currency transactions are recorded in other income.

Operating Segments

Operating Segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Aemetis recognizes two reportable geographic segments: “North America” and “India.”

The “North America” operating segment includes the Company’s 55 million gallon per year nameplate capacity ethanol plant in Keyes, California and the research facilities in College Park, Maryland.

The “India” operating segment encompasses the Company’s 50 million gallon per year nameplate capacity biodiesel plant in Kakinada, India, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius.

Fair Value of Financial Instruments

Fair Value of Financial Instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, and accounts payable, other current liabilities, mandatorily redeemable Series B preferred stock, warrant liability and debt. The fair value of current financial instruments was estimated to approximate carrying value due to the short term nature of these instruments. The carrying amount of debt obligations, including discount issuance costs, held by the senior lender, subordinated debt and the seller note payable, at June 30, 2014 amounted to an aggregate of approximately $68.4 million in outstanding obligations. The debts were determined to have an estimated fair value of $62.7 million based on interest rates for comparable debt. The Company’s debt was valued using inputs from independent consultants evaluating external market inputs and internal financings to determine appropriate discount rates to determine fair value. It was not practicable to determine the fair market value of the Company’s remaining debt obligations due to the lack of availability of comparable credit facilities and the related party nature of the financial arrangements. The warrant liability fair value was estimated using the Black-Scholes valuation pricing model at the end of each reporting period.

Share-Based Compensation

Share-Based Compensation. The Company recognizes share based compensation in accordance with ASC 718 Stock Compensation requiring the Company to recognize expense related to the estimated fair value of the Company’s share-based compensation awards at the time the awards are granted adjusted to reflect only those shares that are expected to vest. To estimate the discount for lack of marketability on restricted stock issued, the Company uses the Black-Scholes valuation pricing model, which assists in deriving the implied price of put options using the put-call parity principle. The price of the put option divided by the market price quoted on the NASDAQ Global Market implies the discount for lack of marketability in valuing issued shares to consultants, debt holders, employees or affiliated investors.

Warrant liability

Warrant liability: The Company adopted guidance related to distinguishing liabilities from equity for certain warrants which contain a conditional obligation to repurchase feature. The Company estimates the fair value of future liability on warrants using the Black-Scholes pricing model. Assumptions within the pricing model include: 1) the risk-free interest rate, which comes from the U.S. Treasury yield curve for periods within the contractual life of the warrant 2) the expected life of the warrants is assumed to be the contractual life of the warrants, and, 3) the volatility is estimated based on an average of the historical volatilities.

The Company computes the fair value of the warrant liability at each reporting period and the change in the fair value is recorded through earnings. The key component in the value of the warrant liability is the Company's stock price, which is subject to significant fluctuation and is not under the Company's control. The resulting effect on the Company's net income (loss) is therefore subject to significant fluctuation and will continue to be so until the warrants are exercised, amended or expired. Assuming all other fair value inputs remain constant, the Company will record non-cash expense when the stock price increases and non-cash income when the stock price decreases.

Long - Lived Assets

Long - Lived Assets. The Company evaluates the recoverability of long-lived assets with finite lives in accordance with ASC Subtopic 360-10-35 Property Plant and Equipment –Subsequent Measurements, which requires recognition of impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, based on estimated undiscounted cash flows, the impairment loss is measured as the difference between the carrying amount of the assets and its estimated fair value.

Commitments and Contingencies

Commitments and Contingencies. The Company records and/or discloses commitments and contingencies in accordance with ASC 450 Contingencies. ASC 450 applies to an existing condition, situation, or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur.

Convertible Instruments

Convertible Instruments. The Company evaluates the impacts of convertible instruments based on the underlying conversion features. Convertible Instruments are evaluated for treatment as derivatives that could be bifurcated and recorded separately. Any beneficial conversion feature is recorded based on the intrinsic value difference at the commitment date.

Debt Modification Accounting

Debt Modification Accounting. The Company evaluates amendments to its debt in accordance with ASC 540-50 Debt – Modification and Extinguishments for modification and extinguishment accounting. This evaluation includes comparing the net present value of cash flows of the new debt to the old debt to determine if changes greater than 10 percent occurred. In instances where the net present value of future cash flows changes more than 10 percent, the Company applies extinguishment accounting and determines the fair value of its debt based on factors available to the Company. See Note 5 for discussion on debt extinguished during the current period.

1_Nature_of_Activities_and_Sum2

1. Nature of Activities and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2014
Proceeds from sale of land	'
Reconciles the number of shares utilized in the net income (loss) per share	'
		Three months ended					Six months ended
		30-Jun-14		30-Jun-13			30-Jun-14		30-Jun-13
		(In thousands, except per share amounts)					(In thousands, except per share amounts)

	Net income (loss)	$	2,722	$	(9,593	)	$	10,409	$	(19,406	)

	Shares:
	Weighted average shares outstanding—basic		20,284		18,964			20,146		18,596

	Weighted average dilutive share equivalents from preferred shares		238		-			238		-
	Weighted average dilutive share equivalents from stock options		232		-			134		-
	Weighted average dilutive share equivalents from common warrants		194		-			781		-

	Weighted average shares outstanding—diluted		20,948		18,964			21,299		18,596


	Earnings (loss) per share—basic	$	0.13	$	(0.51	)	$	0.52	$	(1.04	)

	Earnings (loss) per share—diluted	$	0.13	$	(0.51	)	$	0.49	$	(1.04	)
Schedule of dilutive securities	'
		As of
		30-Jun-14		30-Jun-13

	Series B preferred		-		3,078
	Common stock options and warrants		587		1,258
	Convertible promissory note		-		18
	Total number of potentially dilutive shares excluded from the basic and diluted net income (loss) per share calculation		587		4,354

2_Inventory_Tables

2. Inventory (Tables)	6 Months Ended
2. Inventory (Tables)	Jun. 30, 2014
Schedule of Notes Payable	'
Schedule of Inventory	'
		June 30,		December 31,
		2014		2013
	Raw materials	$	2,025	$	597
	Work-in-progress		1,821		1,724
	Finished goods		1,206		1,777
	Total inventory	$	5,052	$	4,098

3_Property_Plant_and_Equipment1

3. Property, Plant and Equipment (Tables)	6 Months Ended
3. Property, Plant and Equipment (Tables)	Jun. 30, 2014
Statement of Operations Data	'
Schedule of Property, plant and equipment	'
		As of
		June 30,			December 31,
		2014			2013
	Land	$	2,782		$	2,765
	Plant and Buildings		82,927			82,355
	Furniture and fixtures		520			558
	Machinery and equipment		2,607			2,076
	Construction in progress		66			539
	Total gross property, plant & equipment		88,902			88,293
	Less accumulated depreciation		(11,722	)		(9,365	)
	Total net property, plant & equipment	$	77,180		$	78,928
Depreciation of property, plant, and equipment	'
		Years
	Plant and Buildings		20 - 30
	Machinery & Equipment		7-May
	Furniture & Fixtures		5-Mar

4_Intangible_Assets_and_Goodwi1

4. Intangible Assets and Goodwill (Tables)	6 Months Ended
4. Intangible Assets and Goodwill (Tables)	Jun. 30, 2014
Intangible Assets And Goodwill Tables	'
Schedule of intangible assets and goodwill	'
	For the twelve months ending June 30,	Amortization
	2014	$	96
	2015		112
	2016		112
	2017		112
	2018		157
	Thereafter		987
	Total	$	1,576

5_Notes_Payable_Tables

5. Notes Payable (Tables)	6 Months Ended
5. Notes Payable (Tables)	Jun. 30, 2014
Wet distiller's grains sales	'
Schedule of Notes Payable	'
		June 30,			December 31,
		2014			2013
	Third Eye Capital term note	$	7,304		$	7,193
	Third Eye Capital revolving credit facility		23,610			38,349
	Third Eye Capital revenue participation term note		10,048			9,465
	Third Eye Capital acquisition term note		17,512			17,280
	Cilion shareholder seller note payable		5,298			4,869
	State Bank of India secured term loan		5,934			5,857
	Subordinated notes		5,108			5,317
	EB-5 long term promissory notes		1,529			1,037
	Unsecured working capital loans and short-term notes		1,104			2,391
	Total debt		77,447			91,758
	Less current portion of debt		12,146			17,966
	Total long term debt	$	65,301		$	73,792
Maturities of Long-term Debt	'
	Twelve months ended June 30,	Debt Repayments
	2015	$	12,148
	2016		63,089
	2017		3,577
	2018		-
	2019		500
	Total debt		79,314
	Discounts		(1,867	)
	Total debt, net of discounts	$	77,447

6_Operating_Leases_Tables

6. Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2014
Operating Leases Tables	'
Schedule of minimum operating lease payments	'
	Twelve months ended June 30,	Future Rent Payments
	2015	$	218

7_Outstanding_Warrants_Tables

7. Outstanding Warrants (Tables)	6 Months Ended
7. Outstanding Warrants (Tables)	Jun. 30, 2014
Outstanding Warrants Tables	'
Schedule of warrant activity	'
		Warrants Outstanding & Exercisable			Weighted - Average Exercise Price		Average Remaining Term in Years
	Outstanding December 31, 2013		470		$	3.4		4.85
	Expired		-			-
	Granted		30			0.01
	Exercised		(30	)		0.01
	Outstanding March 31, 2014		470		$	3.41		4.6
	Expired		(47	)		4.98
	Granted		-			-
	Exercised		(54	)		4.96
	Outstanding June 30, 2014		369		$	2.99		3.12

8_Fair_Value_of_Warrants_Table

8. Fair Value of Warrants (Tables)	6 Months Ended
8. Fair Value of Warrants (Tables)	Jun. 30, 2014
Fair Value Of Warrants Tables	'
Schedule of fair value of liability warrants	'
	Expected dividend yield		0	%
	Risk-free interest rate		0. 88% - 1.25	%
	Expected volatility		77.84% - 78.89	%
	Expected Life (years)		3.0 - 3.5
	Exercise price	$	0.01
	Company stock price	$	9.54

9_Fair_Value_Measurements_Tabl

9. Fair Value Measurements (Tables)	6 Months Ended
9. Fair Value Measurements (Tables)	Jun. 30, 2014
Fair Value Measurements Tables	'
Schedule of financial liabilities measured at fair value	'
		Total		Level 1		Level 2		Level 3
	Warrant liability	$	179	$	-	$	-	$	179
Schedule of activity for liabilities measured at fair value	'
	Balance as of December 31, 2013	$	60
	Issuances of warrant liabilities		-
	Exercise of warrant liabilities		-
	Related change in fair value		48
	Balance as of March 31, 2014	$	108
	Issuances of warrant liabilities		-
	Exercise of warrant liabilities		-
	Related change in fair value		71
	Balance as of June 30, 2014	$	179

10_Stock_Based_Compensation_Ta

10. Stock Based Compensation (Tables)	6 Months Ended
10. Stock Based Compensation (Tables)	Jun. 30, 2014
Stock Based Compensation Tables	'
Schedule of options granted under employee stock plans	'
	Six months ended		Shares Available for Grant				Number of Shares Outstanding			Weighted-Average Exercise Price
	Balance as of December 31, 2013			74				913		$	4.9
	Authorized			100				—			—
	Granted			(148	)			148			4.2
	Exercised			—				(144	)		1.6
	Forfeited/expired			65				(65	)		2.69
	Balance as of June 30, 2014			91				852		$	5.56
Schedule of weighted average fair value calculations for options	'
			As of June 30
			2014			2013
	Dividend-yield		0	%		0		%
	Risk-free interest rate		0. 44 - 0.74	%		0.18 - 0.42		%
	Expected volatility		69.33 - 82.28	%		74.83 - 142.90		%
	Expected life (years)		0.8 - 3.0				0.5 - 3.0
	Market value of common stock	$	4.20 - $ 9.54			$	3.2

11_Agreements_Tables

11. Agreements (Tables)	6 Months Ended
11. Agreements (Tables)	Jun. 30, 2014
Agreements Tables	'
Schedule of working capital agreement activity	'
		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
	Ethanol sales	$	40,799	$	27,243	$	87,747	$	32,740
	Wet distiller's grains sales		11,708		6,322		21,423		8,006
	Corn oil sales		1,344		455		2,245		630
	Corn purchases		33,619		26,145		66,947		31,519
	Milo Purchases		-		4,648		-		4,648
	Accounts receivable		458		1,578		458		1,578
	Accounts payable		2,122		2,096		2,122		2,096

12_Segment_Information_Tables

12. Segment Information (Tables)	6 Months Ended
12. Segment Information (Tables)	Jun. 30, 2014
Segment Information Tables	'
Schedule of segment information	'
	Summarized financial information by reportable segment for the three and six months ended June 30, 2014 and 2013 follows:

		For the three months ended June 30,				For the six months ended June 30,
		2014		2013		2014		2013
	Revenues
	North America	$	53,999	$	35,832	$	113,080	$	43,711
	India		3,196		11,521		4,780		23,062
	Total revenues	$	57,195	$	47,353	$	117,860	$	66,773

	Cost of goods sold
	North America	$	42,713	$	34,724	$	86,122	$	43,142
	India		3,129		8,878		4,761		19,633
	Total cost of goods sold	$	45,842	$	43,602	$	90,883	$	62,775

	Gross profit/(loss)
	North America	$	11,286	$	1,108	$	26,958	$	569
	India		67		2,643		19		3,429
	Total gross profit	$	11,353	$	3,751	$	26,977	$	3,998

	Total assets consist of the following:

		As of		As of
		June 30,		December 31,
		2014		2013

	North America	$	81,226	$	83,183
	India		14,221		13,959
	Total Assets	$	95,447	$	97,142

1_Nature_of_Activities_and_Sum3

1. Nature of Activities and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:	'	'	'	'
Net income (loss)	$2,722	($9,593)	$10,409	($19,406)
Shares (Denominator):	'	'	'	'
Weighted average shares outstanding-basic	20,284	18,964	20,146	18,596
Weighted average dilutive share equivalents from preferred shares	238	0	238	0
Weighted average dilutive share equivalents from stock options	232	0	134	0
Weighted average dilutive share equivalents from common warrants	194	0	781	0
Weighted average shares outstanding-diluted	20,948	18,964	21,299	18,596
Earnings (loss) per share-basic	$0.13	($0.51)	$0.52	($1.04)
Earnings (loss) per share-diluted	$0.13	($0.51)	$0.49	($1.04)

1_Nature_of_Activities_and_Sum4

1. Nature of Activities and Summary of Significant Accounting Policies (Details 1)	Jun. 30, 2014	Jun. 30, 2013
Accounting Policies [Abstract]	'	'
Series B preferred	0	3,078
Common stock options and warrants	587	1,258
Convertible promissory note	0	18
Total number of potentially dilutive shares excluded from the basic and diluted net income (loss) per share calculation	587	4,354

1_Nature_of_Activities_and_Sum5

1. Nature of Activities and Summary of Significant Accounting Policies (Details Narrative) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
Other liabilities	'
Carrying amount of debt obligations	$6,840
Debt fair value	$6,270

2_Inventory_Details

2. Inventory (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
RepaymentsOfBorrowingsUnderShortTermFacilities	'	'
Raw materials	$2,025	$597
Work-in-progress	1,821	1,724
Finished goods	1,206	1,777
Total inventory	$5,052	$4,098

2_Inventory_Details_Narrative

2. Inventory (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
RepaymentsOfBorrowingUnderSecuredDebtFacilities	'	'
Lower of cost of market reserve	$11	$0

3_Property_Plant_and_Equipment2

3. Property, Plant and Equipment (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Disclosure3.PropertyPlantAndEquipmentDetailsAbstract	'	'
Land	$2,782	$2,765
Plant and Buildings	82,927	82,355
Furniture and fixtures	520	558
Machinery and equipment	2,607	2,076
Construction in progress	66	539
Total gross property, plant & equipment	88,902	88,293
Less accumulated depreciation	-11,722	-9,365
Total net property, plant & equipment	$77,180	$78,928

3_Property_Plant_and_Equipment3

3. Property, Plant and Equipment (Details 1)	6 Months Ended
3. Property, Plant and Equipment (Details 1)	Jun. 30, 2014
Property Plant And Equipment Details 1	'
Plant and Buildings	'20 - 30 years
Machinery & Equipment	'5 - 7 years
Furniture & Fixtures	'3 - 5 years

3_Property_Plant_and_Equipment4

3. Property, Plant and Equipment (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Disclosure3.PropertyPlantAndEquipmentDetailsNarrativeAbstract	'	'	'	'
Depreciation expense	$1,100	$1,200	$2,300	$2,300

4_Intangible_Assets_and_Goodwi2

4. Intangible Assets and Goodwill (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
Intangible Assets And Goodwill Details	'
2014	$96
2015	112
2016	112
2017	112
2018	157
Thereafter	987
Total	$1,576

4_Intangible_Assets_and_Goodwi3

4. Intangible Assets and Goodwill (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Amortization expense	$20	$20	$40	$144
Intangible assets	1,576	'	1,576	'
Goodwill	1,000	'	1,000	'
Patents	'	'	'	'
Intangible assets	1,000	'	1,000	'
In-process research and development	'	'	'	'
Intangible assets	$600	'	$600	'

5_Notes_Payable_Details

5. Notes Payable (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Total revenues	'	'
Third Eye Capital term note	$7,304	$7,193
Third Eye Capital revolving credit facility	23,610	38,349
Third Eye Capital revenue participation term note	10,048	9,465
Third Eye Capital acquisition term note	17,512	17,280
Cilion shareholder Seller note payable	5,298	4,869
State Bank of India secured term loan	5,934	5,857
Subordinated notes	5,108	5,317
EB-5 long term promissory notes	1,529	1,037
Unsecured working capital loans and short-term notes	1,104	2,391
Total debt	77,447	91,758
Less current portion of debt	12,146	17,966
Total long term debt	$65,301	$73,792

5_Notes_Payable_Details_1

5. Notes Payable (Details 1) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
For the twelve months ending	'
2015	$12,148
2016	63,089
2017	3,577
2018	0
2019	500
Total debts	79,314
Discounts	-1,867
Total debt, net of discounts	$77,447

6_Operating_Leases_Details

6. Operating Leases (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
Operating Leases Details	'
2015	$218
Total	$218

6_Operating_Leases_Details_Nar

6. Operating Leases (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Operating Leases Details Narrative	'	'	'	'
Rent expense	$106	$103	$212	$212

7_Outstanding_Warrants_Details

7. Outstanding Warrants (Details) (Warrant [Member], USD $)	3 Months Ended
7. Outstanding Warrants (Details) (Warrant [Member], USD $)	Jun. 30, 2014	Mar. 31, 2014
Warrant [Member]	'	'
Number of Warrants Outstanding, Beginning	470	470
Number of Warrants Expired	-47	0
Number of Warrants Granted	0	30
Number of Warrants Exercised	-54	-30
Number of Warrants Outstanding, Ending	369	470
Weighted Average Exercise Price Outstanding, Beginning	$3.41	$3.40
Weighted Average Exercise Price Expired	$4.98	$0
Weighted Average Exercise Price Granted	$0	$0.01
Weighted Average Exercise Price Exercised	$4.96	$0.01
Weighted Average Exercise Price Outstanding, Ending	$2.99	$3.41
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning	'4 years 7 months 6 days	'4 years 10 months 6 days
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending	'3 years 1 month 13 days	'

8_Fair_Value_of_Warrants_Detai

8. Fair Value of Warrants (Details) (USD $)	6 Months Ended
8. Fair Value of Warrants (Details) (USD $)	Jun. 30, 2014
Fair Value Of Warrants Details	'
Expected dividend yield	0.00%
Risk-free interest rate, min	0.88%
Risk-free interest rate, max	1.25%
Expected volatility, min	77.84%
Expected volatility, max	78.89%
Expected Life (years), min	'3 years
Expected Life (years), max	'3 years 6 months
Exercise price	$0.01
Company stock price	$9.54

9_Fair_Value_Measurements_Deta

9. Fair Value Measurements (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
Warranty liability	$179
Level 1	'
Warranty liability	0
Level 2	'
Warranty liability	0
Level 3	'
Warranty liability	$179

9_Fair_Value_Measurements_Deta1

9. Fair Value Measurements (Details 1) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014
Fair Value Measurements Details 1	'	'
Beginning, Balance	$108	$60
Issuances of warrant liabilities	0	0
Exercise of warrant liabilities	0	0
Related change in fair value	71	48
Ending, Balance	$179	$108

10_Stock_Based_Compensation_De

10. Stock Based Compensation (Details) (Employee Stock Plan, USD $)	6 Months Ended
	Jun. 30, 2014
Employee Stock Plan	'
Shares Available for Grant, Beginning	74
Shares Available for Grant, Authorized	100
Shares Available for Grant, Number of Shares Granted	-148
Shares Available for Grant, Exercised	0
Shares Available for Grant, Forfeited/Expired	65
Shares Available for Grant, Ending	91
Number of Shares Outstanding, Beginning	913
Number of Shares Authorized	'
Number of Shares Granted	148
Number of Shares Exercised	-144
Number of Shares Forfeited/Expired	-65
Number of Shares Outstanding, Ending	852
Weighted Average Exercise Price Outstanding, Beginning	$4.90
Weighted Average Exercise Price Authorized	$0
Weighted Average Exercise Price Granted	$4.20
Weighted Average Exercise Price Exercised	$1.60
Weighted Average Exercise Price Forfeited/Expired	$2.69
Weighted Average Exercise Price Outstanding, Ending	$5.56

10_Stock_Based_Compensation_De1

10. Stock Based Compensation (Details 1) (USD $)	6 Months Ended
10. Stock Based Compensation (Details 1) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Dividend-yield	0.00%	0.00%
Market price of the common stock	'	$3.20
Minimum [Member]	'	'
Risk-free interest rate	0.44%	0.18%
Expected volatility	69.33%	74.83%
Expected life (years)	'9 months 18 days	'6 months
Market price of the common stock	4.2	'
Maximum [Member]	'	'
Risk-free interest rate	0.74%	0.42%
Expected volatility	82.28%	142.90%
Expected life (years)	'3 years	'3 years
Market price of the common stock	9.54	'

11_Agreements_Details

11. Agreements (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Agreements Details	'	'	'	'
Ethanol sales	$40,799	$27,243	$87,747	$32,740
Wet distiller's grains sales	11,708	6,322	21,423	8,006
Corn oil sales	1,344	455	2,245	630
Corn purchases	33,619	26,145	66,947	31,519
Milo purchases	0	4,648	0	4,648
Accounts receivable	458	1,578	458	1,578
Accounts payable	$2,122	$2,096	$2,122	$2,096

12_Segment_Information_Details

12. Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	'	'	'	'
North America	$53,999	$35,832	$113,080	$43,711
India	3,196	11,521	4,780	23,062
Total revenues	57,195	47,353	117,860	66,773
Cost of goods sold	'	'	'	'
North America	42,713	34,724	86,122	43,142
India	3,129	8,878	4,761	19,633
Total cost of goods sold	45,842	43,602	90,883	62,775
Gross profit/(loss)	'	'	'	'
North America	11,286	1,108	26,958	569
India	67	2,643	19	3,429
Total gross profit/(loss)	$11,353	$3,751	$26,977	$3,998

12_Segment_Information_Details1

12. Segment Information (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Segment Information Details 1	'	'
North America	$81,226	$83,183
India	14,221	13,959
Total Assets	$95,447	$97,142

13_Related_Party_Transactions_

13. Related Party Transactions (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Related Party Transactions [Abstract]	'	'	'	'	'
Due to officers	$400	'	$400	'	$1,000
Related party costs	$85	$18	$119	$28	'