Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | AEMETIS, INC. | |
Entity Central Index Key | 738,214 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 19,473,442 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 3,325 | $ 332 |
Accounts receivable | 2,143 | 1,262 |
Inventories | 5,427 | 4,491 |
Prepaid expenses | 961 | 1,392 |
Other current assets | 403 | 456 |
Total current assets | 12,259 | 7,933 |
Property, plant and equipment, net | 73,376 | 75,810 |
Goodwill | 968 | 968 |
Intangible assets, net of accumulated amortization of $284 and $264, respectively | 1,496 | 1,536 |
Other assets | 3,052 | 2,929 |
Total assets | 91,151 | 89,176 |
Current liabilities: | ||
Accounts payable | 8,208 | 8,339 |
Current portion of long term debt | 6,399 | 6,032 |
Short term borrowings | 8,382 | 6,714 |
Mandatorily redeemable Series B convertible preferred stock | 2,690 | 2,641 |
Other current liabilities | 4,294 | 3,590 |
Total current liabilities | 29,973 | 27,316 |
Long term liabilities: | ||
Senior secured notes | 57,375 | 57,648 |
EB-5 notes | 21,685 | 1,534 |
Other long term | 5,800 | 5,650 |
Total long term liabilities | 84,860 | 64,832 |
Stockholders' deficit: | ||
Series B convertible preferred stock, $0.001 par value; 7,235 authorized; 1,458 and 1,665 shares issued and outstanding each period, respectively (aggregate liquidation preference of $4,374 and $4,995, respectively) | 1 | 2 |
Common stock, $0.001 par value; 40,000 authorized; 19,473 and 20,650 shares issued and outstanding, respectively | 19 | 21 |
Additional paid-in capital | 81,349 | 87,080 |
Accumulated deficit | (102,043) | (87,113) |
Accumulated other comprehensive loss | (3,008) | (2,962) |
Total stockholders' deficit | (23,682) | (2,972) |
Total liabilities and stockholders' deficit | $ 91,151 | $ 89,176 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 304 | $ 264 |
Series B Preferred stock, par value | $ 0.001 | $ 0.001 |
Series B Preferred stock, authorized | 7,235 | 7,235 |
Series B Preferred stock, shares issued | 1,458 | 1,665 |
Series B Preferred stock, shares outstanding | 1,458 | 1,665 |
Aggregate Liquidation Preference | $ 4,374 | $ 4,995 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000 | 40,000 |
Common stock, shares issued | 19,473 | 20,650 |
Common stock, shares outstanding | 19,473 | 20,650 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 38,067 | $ 57,195 | $ 72,793 | $ 117,860 |
Cost of goods sold | 36,118 | 45,842 | 71,072 | 90,883 |
Gross profit (loss) | 1,949 | 11,353 | 1,721 | 26,977 |
Research and development expenses | 104 | 141 | 213 | 241 |
Selling, general and administrative expenses | 3,148 | 3,449 | 6,782 | 6,291 |
Operating income (loss) | (1,303) | 7,763 | (5,274) | 20,445 |
Interest expense | ||||
Interest rate expense | (2,485) | (2,530) | (5,031) | (5,450) |
Amortization expense | (2,405) | (2,502) | (4,128) | (4,620) |
Loss on debt extinguishment | 0 | 0 | (330) | (115) |
Gain (loss) on sale or disposal of assets | 0 | (119) | 0 | (119) |
Other income (expense) | (94) | 110 | (161) | 274 |
Income (loss) before income taxes | (6,287) | 2,722 | (14,924) | 10,415 |
Income tax expense | 0 | 0 | (6) | (6) |
Net income (loss) | (6,287) | 2,722 | (14,930) | 10,409 |
Other comprehensive income | ||||
Foreign currency translation adjustment | (84) | 0 | (46) | 108 |
Comprehensive income (loss) | $ (6,371) | $ 2,722 | $ (14,976) | $ 10,517 |
Net income(loss) per common share | ||||
Basic | $ (0.32) | $ 0.13 | $ (0.74) | $ 0.52 |
Diluted | $ (0.32) | $ 0.13 | $ (0.74) | $ 0.49 |
Weighted average shares outstanding | ||||
Basic | 19,590 | 20,284 | 20,090 | 20,146 |
Diluted | 19,590 | 20,948 | 20,090 | 21,299 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ (14,930) | $ 10,409 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activitites: | ||
Share-based compensation | 533 | 290 |
Stock issued in connection with consultant services | 204 | 0 |
Depreciation | 2,388 | 2,302 |
Debt related amortization expense | 4,128 | 4,620 |
Intangibles and other amortization expense | 64 | 64 |
Change in fair value of warrant liability | (41) | 119 |
Loss on extinguishment of debt | 330 | 115 |
Loss on sale/ disposal of assets | 0 | 119 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (888) | 1,946 |
Inventory | (963) | (865) |
Prepaid expenses | 431 | (117) |
Other current assets and other assets | (98) | (396) |
Accounts payable | (78) | (180) |
Accrued interest expense and fees, net of payments | 4,799 | 372 |
Other liabilities | 592 | 489 |
Net cash provided by (used in) operating activities | (3,529) | 19,287 |
Investing activities: | ||
Capital expenditures | (15) | (467) |
Proceeds from the sale of assets | 0 | 99 |
Net cash used in investing activities | (15) | (368) |
Financing activities: | ||
Proceeds from borrowings | 25,459 | 1,966 |
Repayments of borrowings | (18,939) | (21,025) |
Issuance of common stock for services, option and warrant exercises | 21 | 4 |
Net cash provided by (used in) financing activities | 6,541 | (19,055) |
Effect of exchange rate changes on cash and cash equivalents | (4) | (10) |
Net cash and cash equivalents increase for period | 2,993 | (146) |
Cash and cash equivalents at beginning of period | 332 | 4,926 |
Cash and cash equivalents at end of period | 3,325 | 4,780 |
Supplemental disclosures of cash flow information, cash paid: | ||
Interest payments | 245 | 4,809 |
Income tax expense | 6 | 6 |
Supplemental disclosures of cash flow information, non-cash transactions: | ||
Proceeds from exercise of stock options applied to accounts payable | 21 | 16 |
Issuance of warrants to subordinated debt holders | 668 | 95 |
Transfer between debt and other liabilities | 0 | 438 |
Stock issued in connection with services | 204 | 715 |
Repurchase of common stock on revolver loan advance | 7,818 | 0 |
Exercise of conversion feature on note to equity | $ 0 | $ 47 |
1. Nature of Activities and Sum
1. Nature of Activities and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
1. Nature of Activities and Summary of Significant Accounting Policies | Nature of Activities ● 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; ● Aemetis Advanced Fuels, Inc., a Nevada corporation; ● Aemetis Advanced Products Keyes, Inc., a Delaware corporation; and, ● Aemetis Advanced Fuels Goodland, Inc., a Delaware 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 (RINs). 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. 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 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, 2015 and 2014 have been prepared on the same basis as the audited consolidated statements as of December 31, 2014 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, 2015 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods. Use of Estimates Revenue recognition Cost of Goods Sold Shipping and Handling Costs Research and Development. Cash and Cash Equivalents Accounts Receivable. 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 uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Companys success in contacting and negotiating with the customer. If the financial condition of the Companys customers were to deteriorate, additional allowances may be required. There is no allowance for doubtful accounts balance as of June 30, 2015 and December 31, 2014. Inventories Property, Plant and Equipment Goodwill and Intangible Assets. 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 Companys review, we determined 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 would be recognized when the fair value is less than the related net book value, and an impairment expense would be recorded in the amount of the difference. Forecasts of future cash flows are judgments based on the Companys experience and knowledge of the Companys 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 Companys customers. California Ethanol Producer Incentive Program Warrant liability 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 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. Property Plant and Equipment Subsequent Measurements, Basic and Diluted Net income (Loss) per Share. The following table reconciles the number of shares utilized in the net income (loss) per share calculations for the three and six months ended June 30, 2015 and 2014: Three months ended Six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ (6,287 ) $ 2,722 $ (14,930 ) $ 10,409 Shares: Weighted average shares outstandingbasic 19,590 20,284 20,090 20,146 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 dilutive share equivalents from convertible promissory note - - - - Weighted average shares outstandingdiluted 19,590 20,948 20,090 21,299 Earnings (loss) per sharebasic $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.52 Earnings (loss) per sharediluted $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.49 The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2015 and 2014: As of June 30, 2015 June 30, 2014 Series B preferred (1:10 post split basis) 146 - Common stock options and warrants 1,352 587 EB-5 debt convertible to Common stock at $30 per share 717 50 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 2,215 637 Comprehensive Loss. Comprehensive Loss Foreign Currency Translation/Transactions. Operating Segments. The North America operating segment includes the Companys 55 million gallons per year nameplate capacity ethanol plant in Keyes, California and the research facilities in College Park, Maryland. The India operating segment encompasses the Companys 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. Share-Based Compensation. Stock Compensation In valuing restricted common shares issued to consultants, debt holders, or affiliated investors, the Company estimates the discount for lack of marketability on restricted stock issued, using the Black-Scholes model for pricing call options, 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 market exchange implies the discount for lack of marketability. Commitments and Contingencies. Contingencies Debt Modification Accounting Debt Modification and Extinguishments Convertible Instruments Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for us on January 1, 2017. We are currently evaluating the potential impact that Topic 606 may have on our financial position and results of operations. |
2. Inventory
2. Inventory | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
2. Inventory | Inventory consists of the following: June 30, 2015 December 31, 2014 Raw materials $ 1,318 $ 1,522 Work-in-progress 1,356 1,453 Finished goods 2,753 1,516 Total inventory $ 5,427 $ 4,491 |
3. Property, Plant and Equipmen
3. Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
3. Property, Plant and Equipment | Property, plant and equipment consist of the following: June 30, 2015 December 31, 2014 Land $ 2,749 $ 2,753 Plant and Buildings 82,265 82,338 Furniture and fixtures 492 458 Machinery and equipment 4,061 4,063 Construction in progress 124 148 Total gross property, plant & equipment 89,691 89,760 Less accumulated depreciation (16,315) (13,950) Total net property, plant & equipment $ 73,376 $ 75,810 Depreciation on the components of 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 5 - 7 Furniture & Fixtures 3 - 5 For the three months ended June 30, 2015 and 2014, the Company recorded depreciation expense of $1.2 million and $1.1 million, respectively. For the six months ended June 30, 2015 and 2014, the Company recorded depreciation expense of $2.4 million and $2.3 million, 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, 2015. |
4. Intangible Assets and Goodwi
4. Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
4. Intangible Assets and Goodwill | Intangible assets and goodwill consist of $0.9 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 each of the three months ended June 30, 2015 and 2014, the Company recognized amortization expense of $20 thousand related to patents. During each of the six months ended June 30, 2015 and 2014, the Company recognized amortization expense of $40 thousand 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 2016 $ 80 2017 96 2018 112 2019 157 2020 157 Thereafter 894 Total $ 1,496 |
5. Notes Payable
5. Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 Dece mber 31, 2014 Third Eye Capital term note $ 6,189 $ 7,394 Third Eye Capital revolving credit facility 22,736 22,330 Third Eye Capital revenue participation term note 10,397 10,195 Third Eye Capital acquisition term note 18,053 17,728 Cilion shareholder seller note payable 5,448 5,373 State Bank of India secured term loan 6,399 6,032 Subordinated notes 5,751 5,428 EB-5 long term promissory notes 21,685 1,534 Unsecured working capital loans and short-term notes 2,750 1,287 Total debt 99,408 77,301 Less current portion of debt 14,781 12,746 Total long term debt $ 84,627 $ 64,555 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); and (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). The Notes mature on April 1, 2016*. On March 12, 2015, Third Eye Capital agreed to Amendment No. 9 to the Note Purchase Agreement to allow for the repurchase of 1,000,000 shares of common stock of the Company at an average price of $5.52 per share for an aggregate purchase price of approximately $5.5 million. The repurchase price was added to the outstanding principal balance of the Revolving Credit Facility. Third Eye Capital also agreed to remove the covenant that the Company must complete an equity offering of its preferred stock for net proceeds of not less than $20 million with all of such net proceeds to be used to repay the principal outstanding under the Note Purchase Agreement. In addition, Third Eye Capital waived the free cash flow financial covenant under the Note Purchase Agreement for the three months ended March 31, 2015. We evaluated the amendment of the Notes and applied modification accounting treatment in accordance with ASC 470-50 Debt Modification and Extinguishment On April 30, 2015, Third Eye Capital agreed to Amendment No. 10 to the Note Purchase Agreement to allow for the repurchase of 500,000 shares of common stock of the Company at a repurchase price of $5.00 per share for an aggregate purchase price of approximately $2.5 million. The repurchase price was added to the outstanding principal balance of the Revolving Credit Facility. In addition, Third Eye Capital agreed to extend the maturity date of the Notes to April 1, 2016 upon notice and payment of a 3% extension fee. The existing guarantees were reaffirmed. On May 29, 2015, the Company gave notice to extend the maturity date of the Notes to April 1, 2016 and added the 3% fee to the Notes. On August 5, 2015, Third Eye Capital agreed to Amendment No. 11 to the Note Purchase Agreement to allow for the extension of the maturity date of the Notes to April 1, 2017 provided that the Company i) has $11.5 million in EB-5 funds in escrow as of August 31, 2015, ii) enters into an investment banking engagement by October 1, 2015 to complete a capital market transaction for the sale of shares in the India subsidiary, and iii) repurchases 100,000 shares of common stock at the greater of $4.00 and the closing price on the date of the amendment. In addition, Third Eye Capital waived the free cash flow financial covenant under the Note Purchase Agreement for the three months ended June 30, 2015 and for the three months ending September 30, 2015, and revised the market value to note indebtedness to 65%. As consideration, Third Eye Capital charged an amendment fee of $1.0 million to be added to the outstanding principal balance of the Revolving Credit Facility and an extension fee equal to 5% of the Note indebtedness to be charged at the time of exercise. We will evaluate the amendment of the Notes and will determine accounting treatment in accordance with ASC 470-50 Debt Modification and Extinguishment 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 B. Revolving Credit Facility C. Revenue Participation Term Notes D. Acquisition Term Notes *The note maturity date can be extended by the Company to April 2017. As a condition to any such extension, the Company would be required to pay a fee of 5% of the carrying value of the debt. The Third Eye Capital Notes are secured by first priority liens on all real and personal property of, 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), solely owned by Eric McAfee, the Companys Chairman and CEO, provided a guaranty of payment and performance secured by all of its Company shares. In addition, Eric McAfee provided a blanket lien on substantially all of his personal assets, and McAfee Capital provided a guarantee in the amount of $8.0 million. Cilion shareholder seller notes payable State Bank of India secured term loan 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, 2015, 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. No principal payments were made except for payments of $0.2 million each in May 2014 and June 2014 to obtain an interim stay. The term loan provides for liquidating damages at a rate of 2% per annum for the period of default. As of June 30, 2015 and December 31, 2014, the State Bank of India loan had $2.6 million in principal outstanding and accrued interest plus default interest of $3.8 million and $3.4 million, respectively. See Note 6 - Commitments and Contingencies for further details. Subordinated Notes 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 issued 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 to June 30, 2014 in exchange for a 10 percent cash extension fee paid by adding the fee to the balance of the new note and 30 thousand in common stock warrants with a term of two years and an exercise price of $0.01 per share. In March 2014, the Company received $0.5 million from EB-5 investments and repaid one of the accredited investors holding a January 2012 Sub Note of $0.5 million. On July 1, 2014 and again on January 1, 2015, the January 2014 Sub Note and two January 2013 Sub Notes with two accredited investors were amended to extend the maturity date to December 31, 2014 and June 30, 2015, respectively in exchange for a 10 percent cash extension fee paid by adding the fee to the balance of the new note and 118 thousand in common stock warrants with a term of two years and an exercise price of $0.01 per share. On March 24, 2015, the Company paid off $180 thousand in Sub Note principal and interest held by one of the accredited investors with the money received from the EB-5 program. On July 1, 2015, the Sub Notes above were amended to extend the maturity date until the earlier of (i) December 31, 2015; (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 warrants to purchase 116 thousand shares of common stock were granted with a term of two years and an exercise price of $0.01 per share. We will evaluate these July 1, 2015 amendments and the refinancing terms of the notes and determine the accounting in accordance with ASC 470-50 Debt Modification and Extinguishment 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. In February 2015, the Cagan related party promissory note was amended to extend the maturity date until the earlier of (i) December 31, 2016; (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. At June 30, 2015 and December 31, 2014, the Company owed, in aggregate, subordinated notes in the amount of $5.8 million and $5.4 million in principal and interest outstanding, net of unamortized issuance and fair value discounts of none and $0.2 million, respectively. EB-5 long-term promissory notes 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 during the first quarter of 2012, $0.5 million during the first quarter of 2014, $17.5 million during the first quarter of 2015 and $2.5 million in the second quarter of 2015. As of June 30, 2015, $21.5 million in principal and $185 thousand in accrued interest remained outstanding on the notes. The availability of the remaining $14.5 million will be determined by the ability of Advanced BioEnergy, LP to attract additional qualified investors. Unsecured working capital loans During the three and six months ended June 30, 2015, the Company made principal payments to Secunderabad of approximately $0.3 million and $1.0 million, respectively, under the agreement and interest payments of approximately $66 thousand and $104 thousand, respectively, for working capital funding. 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. At June 30, 2015 and December 31, 2014, the Company had approximately $2.8 million and $1.3 million outstanding under this agreement, respectively. Scheduled debt repayments for loan obligations follow: Twelve months ended June 30, Debt Repayments 2016 $ 14,781 2017 63,017 2018 3,198 2019 20,000 Total debt 100,996 Discounts (1,588) Total debt, net of discounts $ 99,408 |
6. Operating Leases
6. Operating Leases | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
6. Operating leases | Twelve months ended June 30, Future Rent Payments 2016 $ 439 2017 455 2018 470 2019 487 2020 461 Total $ 2,312 |
7. Outstanding Warrants
7. Outstanding Warrants | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
7. Outstanding Warrants | During the three months ended June 30, 2015 the Company did not issue any common stock warrants. During the six months ended June 30, 2015, the Company issued 116 thousand common stock warrants to accredited investors who entered into amendments to Note and Warrant Purchase Agreements. For the six months ended June 30, 2015, note investors exercised 116 thousand warrant shares at the weighted average exercise price of $0.01 per share. A summary of warrant activity for the three and six months ended June 30, 2015 follows: Warrants Outstanding & Exercisable Weighted - Average Exercise Price Average Remaining Term in Years Outstanding December 31, 2014 351 $ 3.05 2.69 Expired - - - Granted 116 0.01 - Exercised (116 ) 0.01 - Outstanding March 31, 2015 351 $ 3.05 2.45 Expired - - - Granted - - - Exercised - - - Outstanding June 30, 2015 351 $ 3.05 2.20 |
8. Fair Value of Warrants
8. Fair Value of Warrants | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
8. Fair Value of Warrants | The following table summarizes the assumptions used in computing the fair value of warrants subject to liability and fair value accounting at the date of issue during the three months ended June 30, 2015: Expected dividend yield Risk-free interest rate 0. 64% - 0.83% Expected volatility 73.12% - 76.64% Expected Life (years) 2.0 - 2.5 Exercise price $ 0.01 Company stock price $ 3.60 |
9. Fair Value Measurements
9. Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
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 following table summarizes financial liabilities measured at fair value on a recurring basis as of June 30, 2015, 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 $ 67 $ - $ - $ 67 The following table reflects the activity for liabilities measured at fair value using Level 3 inputs for the three and six months ended June 30, 2015: Balance as of December 31, 2014 $ 108 Related change in fair value (29 ) Balance as of March 31, 2015 $ 79 Related change in fair value (12 ) Balance as of June 30, 2015 $ 67 |
10. Stock-Based Compensation
10. Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
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 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 and restricted stock awards. The options generally expire five years from the date of grant for all options granted before May 2015 and the expiration term of the options granted from May 2015 is seven years from the date of grant. The options have a general vesting term of 1/12th every three months and are exercisable at any time after vesting subject to continuation of employment. Non-Plan Stock Options In November 2012, the Company issued 98 thousand stock options to board members and consultants outside of any Company stock option plan. As of June 30, 2015, all options were vested and 9 thousand options had been exercised at a weighted average exercise price of $5.50 and 89 thousand options were outstanding. Inducement Equity Plan Options In March 2015, the Board of Directors of the Company approved an Inducement Equity Plan authorizing the issuance of 100,000 non-statutory options to purchase common stock. The Company issued 25 thousand options during March 2015 with a three year vesting period and five year term at a weighted average exercise price of $3.88. As of June 30, 2015, the 25 thousand options were outstanding. The following is a summary of options granted under the employee stock plans and the inducement equity plan: Shares Available for Grant Number of Shares Outstanding Weighted-Average Exercise Price Balance as of December 31, 2014 5 1,015 $ 5.51 Authorized 200 Granted (173 ) 173 4.28 Exercised - (137 ) 3.79 Forfeited/expired 50 (50 ) 2.04 Balance as of June 30, 2015 82 1,001 $ 5.84 Stock-based compensation for employees Stock-based compensation is accounted for in accordance with the provisions of ASC 718, Compensation-Stock Compensation For the three months ended June 30, 2015 and 2014, the Company recorded stock compensation expense in the amount of $163 thousand and $159 thousand, respectively. For the six months ended June 30, 2015 and 2014, the Company recorded stock compensation expense in the amount of $533 thousand and $290 thousand, respectively. Valuation and Expense Information All issuances of stock options or other issuances of equity instruments to employees as the consideration for services received by us are accounted for based on the fair value of the equity instrument issued. The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock based compensation expense requires us to make assumptions and judgments about the variables used in the calculation, including the fair value of our common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of our common stock, a risk-free interest rate, and expected dividends. We also estimate forfeitures of unvested stock options. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. No compensation cost is recorded for options that do not vest. We use the simplified calculation of expected life described in the SECs Staff Accounting Bulletin No. 107, Share-Based Payment, and volatility is based on an average of the historical volatilities of the common stock of four entities with characteristics similar to those of the Company. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. We use an expected dividend yield of zero, as we do not anticipate paying any dividends in the foreseeable future. Expected forfeitures are assumed to be zero due to the small number of plan participants and the plan. The Company granted 97,500 stock options and 50,000 restricted stock awards during the three months ended June 30, 2015. The fair value of the restricted stock awards is equal to the market price of the stock on the grant date. The fair value calculations for options granted to employees under the employee stock plans during the quarter are based on the following assumptions: Description Three months ended June 30, 2015 Dividend-yield 0 % Risk-free interest rate 1.53 % Expected volatility 69.34 % Expected life (years) 5 Market value per share on grant date $ 4.35 Fair value per share on grant date $ 2.52 As of June 30, 2015, the Company had $868 thousand of total unrecognized compensation expense for employees which the Company will amortize over the 1.92 years of weighted remaining term. |
11. Agreements
11. Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Agreements | |
11. Agreements | Working Capital Arrangement. The J.D. Heiskell sales activity associated with the Purchasing Agreement, Grain Procurement and Working Capital greements during the three and six months ended June 30, 2015 and 2014 are as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Ethanol sales $ 24,247 $ 40,799 $ 46,859 $ 87,747 Wet distiller's grains sales 6,609 11,708 13,959 21,423 Corn oil sales 1,071 1,344 1,936 2,245 Corn purchases 24,934 33,619 50,893 66,947 Accounts receivable 329 458 329 458 Accounts payable 1,673 2,122 1,673 2,122 Ethanol and Wet Distillers Grains Marketing Arrangement. |
12. Segment Information
12. Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
12. Segment Information | Aemetis recognizes two reportable geographic segments: North America and India. The North America operating segment includes the Companys owned ethanol plant in Keyes, California and its technology lab in College Park, Maryland. As the Companys 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 Companys 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 Companys 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, 2015 and 2014 follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Revenues North America $ 34,144 $ 53,999 $ 67,351 $ 113,080 India 3,923 3,196 5,442 4,780 Total revenues $ 38,067 $ 57,195 $ 72,793 $ 117,860 Cost of goods sold North America $ 32,517 $ 42,713 $ 65,886 $ 86,122 India 3,601 3,129 5,186 4,761 Total cost of goods sold $ 36,118 $ 45,842 $ 71,072 $ 90,883 Gross profit North America $ 1,627 $ 11,286 $ 1,465 $ 26,958 India 322 67 256 19 Total gross profit $ 1,949 $ 11,353 $ 1,721 $ 26,977 North America: During the three and six months ended June 30, 2014, the Companys 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, WDG, and corn oil to J.D. Heiskell accounted for 99.7% and 99% of the Companys North America segment revenues for the three and six months ended June 30, 2014, respectively. India During the six months ended June 30, 2015, one customer in biodiesel accounted for 35% and two customers in refined glycerin accounted for 9% each of the consolidated India segment revenues compared to three customers in biodiesel who accounted for 41%, 14%, and 13%, of the consolidated India segment revenues during the three months ended June 30, 2014. Total assets consist of the following: As of June 30, December 31, 2015 2014 North America $ 76,164 $ 76,066 India 14,987 13,110 Total Assets $ 91,151 $ 89,176 |
13. Related Party Transactions
13. Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
13. Related Party Transactions | The Company owes Eric McAfee and McAfee Capital, owned by Eric McAfee, $0.4 million in connection with employment agreements and expense reimbursements, which are included in accrued expenses and accounts payable on the balance sheet as of June 30, 2015 and December 31, 2014. For the three months ended June 30, 2015 and 2014, the Company expensed $11 thousand and $85 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the six months ended June 30, 2015 and 2014, the Company expensed $38 thousand and $119 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. |
14. Subsequent Events
14. Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
14. Subsequent Events | Sub debt refinancing On July 1, 2015, the January 2014 Sub Note and January 2013 Sub Note with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2015; (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% cash extension fee was paid by adding the fee to the balance of the new Note and warrants to purchase 116 thousand shares of common stock were granted with a term of two years and an exercise price of $0.01 per share. These July 1, 2015 amendments and the refinancing terms of the Notes will be evaluated and accounting is determined in accordance with ASC 470-50 Debt Modification and Extinguishment Third Eye Capital Debt Agreement Amendment On August 6, 2015, Third Eye Capital agreed to Amendment No. 11 to the Note Purchase Agreement to allow for the extension of the maturity date of the Notes to April 1, 2017 provided that the Company i) has $11.5 million in EB-5 funds in escrow as of August 31, 2015, ii) enters into an investment banking engagement by October 1, 2015 to complete a capital market transaction for the sale of shares in the India subsidiary, and iii) repurchases 100,000 shares of common stock at the greater of $4.00 and the closing price on the date of the amendment. In addition, Third Eye Capital waived the free cash flow financial covenant under the Note Purchase Agreement for the three months ended June 30, 2015 and for the three months ending September 30, 2015, and revised the market value to note indebtedness to 65%. As consideration, Third Eye Capital charged an amendment fee of $1.0 million to be added to the outstanding principal balance of the Revolving Credit Facility and an extension fee equal to 5% of the Note indebtedness to be charged at the time of exercise. We will evaluate the amendment of the Notes and will determine accounting treatment in accordance with ASC 470-50 Debt Modification and Extinguishment |
15. Management's Plan
15. Management's Plan | 6 Months Ended |
Jun. 30, 2015 | |
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 2015, 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 lender. Managements plans for the Company include: Operating the Keyes plant; Continuing to incorporate lower-cost, non-food advanced biofuels feedstock at the Keyes plant when economical; Attracting investors to financing arrangements including working with Advanced BioEnergy LP to issue up to $14.5 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; Restructure or refinance the State Bank of India note to allow for additional working capital and reduce current financing costs; and Securing higher volumes of shipments from the Kakinada, India biodiesel and refined glycerin facility. 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 S21
1. Nature of Activities and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Proceeds from borrowing under secured debt facilities | |
Nature of Activities | Nature of Activities ● 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; ● Aemetis Advanced Fuels, Inc., a Nevada corporation; ● Aemetis Advanced Products Keyes, Inc., a Delaware corporation; and, ● Aemetis Advanced Fuels Goodland, Inc., a Delaware 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 (RINs). 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. 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 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, 2015 and 2014 have been prepared on the same basis as the audited consolidated statements as of December 31, 2014 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, 2015 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods |
Use of Estimates | Use of Estimates |
Revenue recognition | Revenue recognition |
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 consumed, 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 |
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 |
Accounts Receivable | Accounts Receivable. 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 uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Companys success in contacting and negotiating with the customer. If the financial condition of the Companys customers were to deteriorate, additional allowances may be required. There is no allowance for doubtful accounts balance as of June 30, 2015 and December 31, 2014. |
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 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. 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 Companys review, we determined 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 would be recognized when the fair value is less than the related net book value, and an impairment expense would be recorded in the amount of the difference. Forecasts of future cash flows are judgments based on the Companys experience and knowledge of the Companys 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 Companys customers. |
California Ethanol Producer Incentive Program | California Ethanol Producer Incentive Program |
Warrant liability | Warrant liability 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 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. Property Plant and Equipment Subsequent Measurements, |
Basic and Diluted Net income (Loss) per Share | Basic and Diluted Net income (Loss) per Share. The following table reconciles the number of shares utilized in the net income (loss) per share calculations for the three and six months ended June 30, 2015 and 2014: Three months ended Six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ (6,287 ) $ 2,722 $ (14,930 ) $ 10,409 Shares: Weighted average shares outstandingbasic 19,590 20,284 20,090 20,146 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 dilutive share equivalents from convertible promissory note - - - - Weighted average shares outstandingdiluted 19,590 20,948 20,090 21,299 Earnings (loss) per sharebasic $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.52 Earnings (loss) per sharediluted $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.49 The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2015 and 2014: As of June 30, 2015 June 30, 2014 Series B preferred (1:10 post split basis) 146 - Common stock options and warrants 1,352 587 EB-5 debt convertible to Common stock at $30 per share 717 50 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 2,215 637 |
Comprehensive Loss | Comprehensive Loss. Comprehensive Loss |
Foreign Currency Translation/Transactions | Foreign Currency Translation/Transactions. |
Operating Segments | Operating Segments. The North America operating segment includes the Companys 55 million gallons per year nameplate capacity ethanol plant in Keyes, California and the research facilities in College Park, Maryland. The India operating segment encompasses the Companys 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. |
Share-Based Compensation | Share-Based Compensation. Stock Compensation In valuing restricted common shares issued to consultants, debt holders, or affiliated investors, the Company estimates the discount for lack of marketability on restricted stock issued, using the Black-Scholes model for pricing call options, 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 market exchange implies the discount for lack of marketability. |
Commitments and Contingencies | Commitments and Contingencies. Contingencies |
Debt Modification Accounting | Debt Modification Accounting Debt Modification and Extinguishments |
Convertible Instruments | Convertible Instruments |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for us on January 1, 2017. We are currently evaluating the potential impact that Topic 606 may have on our financial position and results of operations. |
1. Nature of Activities and S22
1. Nature of Activities and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Proceeds from sale of land | |
Reconciles the number of shares utilized in the net income (loss) per share | Three months ended Six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ (6,287 ) $ 2,722 $ (14,930 ) $ 10,409 Shares: Weighted average shares outstandingbasic 19,590 20,284 20,090 20,146 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 dilutive share equivalents from convertible promissory note - - - - Weighted average shares outstandingdiluted 19,590 20,948 20,090 21,299 Earnings (loss) per sharebasic $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.52 Earnings (loss) per sharediluted $ (0.32 ) $ 0.13 $ (0.74 ) $ 0.49 |
Schedule of dilutive securities | As of June 30, 2015 June 30, 2014 Series B preferred (1:10 post split basis) 146 - Common stock options and warrants 1,352 587 EB-5 debt convertible to Common stock at $30 per share 717 50 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 2,215 637 |
2. Inventory (Tables)
2. Inventory (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Notes Payable | |
Schedule of Inventory | Inventory consists of the following: June 30, 2015 December 31, 2014 Raw materials $ 1,318 $ 1,522 Work-in-progress 1,356 1,453 Finished goods 2,753 1,516 Total inventory $ 5,427 $ 4,491 |
3. Property, Plant and Equipm24
3. Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Statement of Operations Data | |
Schedule of Property, plant and equipment | June 30, 2015 December 31, 2014 Land $ 2,749 $ 2,753 Plant and Buildings 82,265 82,338 Furniture and fixtures 492 458 Machinery and equipment 4,061 4,063 Construction in progress 124 148 Total gross property, plant & equipment 89,691 89,760 Less accumulated depreciation (16,315) (13,950) Total net property, plant & equipment $ 73,376 $ 75,810 |
Depreciation of property, plant, and equipment | Years Plant and Buildings 20 - 30 Machinery & Equipment 5 - 7 Furniture & Fixtures 3 - 5 |
4. Intangible Assets and Good25
4. Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Intangible Assets And Goodwill Tables | |
Schedule of intangible assets and goodwill | For the twelve months ending June 30, Amortization 2016 $ 80 2017 96 2018 112 2019 157 2020 157 Thereafter 894 Total $ 1,496 |
5. Notes Payable (Tables)
5. Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Wet distiller's grains sales | |
Schedule of Notes Payable | June 30, 2015 Dece mber 31, 2014 Third Eye Capital term note $ 6,189 $ 7,394 Third Eye Capital revolving credit facility 22,736 22,330 Third Eye Capital revenue participation term note 10,397 10,195 Third Eye Capital acquisition term note 18,053 17,728 Cilion shareholder seller note payable 5,448 5,373 State Bank of India secured term loan 6,399 6,032 Subordinated notes 5,751 5,428 EB-5 long term promissory notes 21,685 1,534 Unsecured working capital loans and short-term notes 2,750 1,287 Total debt 99,408 77,301 Less current portion of debt 14,781 12,746 Total long term debt $ 84,627 $ 64,555 |
Maturities of Long-term Debt | Twelve months ended June 30, Debt Repayments 2016 $ 14,781 2017 63,017 2018 3,198 2019 20,000 Total debt 100,996 Discounts (1,588) Total debt, net of discounts $ 99,408 |
6. Operating Leases (Tables)
6. Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Operating Leases Tables | |
Schedule of minimum operating lease payments | Twelve months ended June 30, Future Rent Payments 2016 $ 439 2017 455 2018 470 2019 487 2020 461 Total $ 2,312 |
7. Outstanding Warrants (Tables
7. Outstanding Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Outstanding Warrants Tables | |
Schedule of warrant activity | Warrants Outstanding & Exercisable Weighted - Average Exercise Price Average Remaining Term in Years Outstanding December 31, 2014 351 $ 3.05 2.69 Expired - - - Granted 116 0.01 - Exercised (116 ) 0.01 - Outstanding March 31, 2015 351 $ 3.05 2.45 Expired - - - Granted - - - Exercised - - - Outstanding June 30, 2015 351 $ 3.05 2.20 |
8. Fair Value of Warrants (Tabl
8. Fair Value of Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Of Warrants Tables | |
Schedule of fair value of liability warrants | Expected dividend yield Risk-free interest rate 0. 64% - 0.83% Expected volatility 73.12% - 76.64% Expected Life (years) 2.0 - 2.5 Exercise price $ 0.01 Company stock price $ 3.60 |
9. Fair Value Measurements (Tab
9. Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements Tables | |
Schedule of financial liabilities measured at fair value | Total Level 1 Level 2 Level 3 Warrant liability $ 67 $ - $ - $ 67 |
Schedule of activity for liabilities measured at fair value | Balance as of December 31, 2014 $ 108 Related change in fair value (29 ) Balance as of March 31, 2015 $ 79 Related change in fair value (12 ) Balance as of June 30, 2015 $ 67 |
10. Stock-Based Compensation (T
10. Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock-based Compensation Tables | |
Schedule of options granted under employee stock plans | Shares Available for Grant Number of Shares Outstanding Weighted-Average Exercise Price Balance as of December 31, 2014 5 1,015 $ 5.51 Authorized 200 Granted (173 ) 173 4.28 Exercised - (137 ) 3.79 Forfeited/expired 50 (50 ) 2.04 Balance as of June 30, 2015 82 1,001 $ 5.84 |
Schedule of weighted average fair value calculations for options | Description Three months ended June 30, 2015 Dividend-yield 0 % Risk-free interest rate 1.53 % Expected volatility 69.34 % Expected life (years) 5 Market value per share on grant date $ 4.35 Fair value per share on grant date $ 2.52 |
11. Agreements (Tables)
11. Agreements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Agreements Tables | |
Schedule of working capital agreement activity | Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Ethanol sales $ 24,247 $ 40,799 $ 46,859 $ 87,747 Wet distiller's grains sales 6,609 11,708 13,959 21,423 Corn oil sales 1,071 1,344 1,936 2,245 Corn purchases 24,934 33,619 50,893 66,947 Accounts receivable 329 458 329 458 Accounts payable 1,673 2,122 1,673 2,122 |
12. Segment Information (Tables
12. Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information Tables | |
Schedule of segment information | For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Revenues North America $ 34,144 $ 53,999 $ 67,351 $ 113,080 India 3,923 3,196 5,442 4,780 Total revenues $ 38,067 $ 57,195 $ 72,793 $ 117,860 Cost of goods sold North America $ 32,517 $ 42,713 $ 65,886 $ 86,122 India 3,601 3,129 5,186 4,761 Total cost of goods sold $ 36,118 $ 45,842 $ 71,072 $ 90,883 Gross profit North America $ 1,627 $ 11,286 $ 1,465 $ 26,958 India 322 67 256 19 Total gross profit $ 1,949 $ 11,353 $ 1,721 $ 26,977 |
1. Nature of Activities and S34
1. Nature of Activities and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Net income (loss) | $ (6,287) | $ 2,722 | $ (14,930) | $ 10,409 |
Shares: | ||||
Weighted average shares outstanding-basic | 19,590 | 20,284 | 20,090 | 20,146 |
Weighted average dilutive share equivalents from preferred shares | 0 | 238 | 0 | 238 |
Weighted average dilutive share equivalents from stock options | 0 | 232 | 0 | 134 |
Weighted average dilutive share equivalents from common warrants | 0 | 194 | 0 | 781 |
Weighted average dilutive share equivalents from convertible promissory note | 0 | 0 | 0 | 0 |
Weighted average shares outstanding-diluted | 19,590 | 20,948 | 20,090 | 21,299 |
Earnings (loss) per share-basic | $ (0.32) | $ 0.13 | $ (0.74) | $ 0.52 |
Earnings (loss) per share-diluted | $ (0.32) | $ 0.13 | $ (0.74) | $ 0.49 |
1. Nature of Activities and S35
1. Nature of Activities and Summary of Significant Accounting Policies (Details 1) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||
Series B preferred (convertible on a 10 to 1 basis) | 146 | 0 |
Common stock options and warrants | 1,352 | 587 |
EB-5 debt convertible to Common stock at $30 per share | 717 | 50 |
Total number of potentially dilutive shares excluded from the basic and diluted net income (loss) per share calculation | 1,498 | 587 |
1. Nature of Activities and S36
1. Nature of Activities and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Disclosure1.NotesOfActivitiesAndSummaryOfSignificantAccountingPoliciesDetailsAbstract | ||
Repayment of funds received | $ 300 | $ 800 |
Carrying amount of debt obligations | 68,500 | |
Debt fair value | $ 69,200 |
2. Inventory (Details)
2. Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
RepaymentsOfBorrowingsUnderShortTermFacilities | ||
Raw materials | $ 1,318 | $ 1,522 |
Work-in-progress | 1,356 | 1,453 |
Finished goods | 2,753 | 1,516 |
Total inventory | $ 5,427 | $ 4,491 |
3. Property, Plant and Equipm38
3. Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Disclosure3.PropertyPlantAndEquipmentDetailsAbstract | ||
Land | $ 2,749 | $ 2,753 |
Plant and Buildings | 82,265 | 82,338 |
Furniture and fixtures | 492 | 458 |
Machinery and equipment | 4,061 | 4,063 |
Construction in progress | 124 | 148 |
Total gross property, plant & equipment | 89,691 | 89,760 |
Less accumulated depreciation | (16,315) | (13,950) |
Total net property, plant & equipment | $ 73,376 | $ 75,810 |
3. Property, Plant and Equipm39
3. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure3.PropertyPlantAndEquipmentDetailsNarrativeAbstract | ||||
Depreciation expense | $ 1,200 | $ 1,100 | $ 2,388 | $ 2,302 |
4. Intangible Assets and Good40
4. Intangible Assets and Goodwill (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Intangible Assets And Goodwill Details | |
2,016 | $ 80 |
2,017 | 96 |
2,018 | 112 |
2,019 | 157 |
2,020 | 157 |
Thereafter | 894 |
Total | $ 1,496 |
4. Intangible Assets and Good41
4. Intangible Assets and Goodwill (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amortization expense | $ 20 | $ 20 | $ 40 | $ 40 |
Intangible assets | 1,496 | 1,496 | ||
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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Total revenues | ||
Third Eye Capital term note | $ 6,189 | $ 7,394 |
Third Eye Capital revolving credit facility | 22,736 | 22,330 |
Third Eye Capital revenue participation term note | 10,397 | 10,195 |
Third Eye Capital acquisition term note | 18,053 | 17,728 |
Cilion shareholder Seller note payable | 5,448 | 5,373 |
State Bank of India secured term loan | 6,399 | 6,032 |
Subordinated notes | 5,751 | 5,428 |
EB-5 long term promissory notes | 21,685 | 1,534 |
Unsecured working capital loans and short-term notes | 2,750 | 1,287 |
Total debt | 99,408 | 77,301 |
Less current portion of debt | 14,781 | 12,746 |
Total long term debt | $ 84,627 | $ 64,555 |
5. Notes Payable (Details 1)
5. Notes Payable (Details 1) $ in Thousands | Jun. 30, 2015USD ($) |
For the twelve months ending | |
2,016 | $ 14,781 |
2,017 | 63,017 |
2,018 | 3,198 |
2,019 | 20,000 |
Total debts | 100,996 |
Discounts | (1,588) |
Total debt, net of discounts | $ 99,408 |
5. Notes Payable (Details Narra
5. Notes Payable (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Interest payments | $ 245 | $ 4,809 | |||
Third Eye Capital Term Notes | |||||
Principal and interest outstanding | $ 6,200 | 6,200 | |||
Unamortized discount | 200 | 200 | |||
Third Eye Capital Revolving Credit Facility | |||||
Principal and interest outstanding | 22,700 | 22,700 | |||
Unamortized debt issuance costs | 600 | 600 | |||
Third Eye Capital Revenue Participation Term Notes | |||||
Principal and interest outstanding | 10,400 | 10,400 | |||
Unamortized discount | 300 | 300 | |||
Third Eye Capital Acquisition Term Notes | |||||
Principal and interest outstanding | 18,100 | 18,100 | |||
Unamortized discount | 500 | 500 | |||
Cilion shareholder Seller note payable | |||||
Principal and interest outstanding | 5,400 | 5,400 | |||
State Bank of India secured term loan | |||||
Principal and interest outstanding | 2,600 | 2,600 | $ 2,600 | ||
Default interest payable | 3,800 | 3,800 | 3,400 | ||
Subordinated Notes | |||||
Principal and interest outstanding | 5,800 | 5,800 | 5,400 | ||
Unamortized discount | 200 | 200 | |||
EB-5 long-term promissory notes | |||||
Principal and interest outstanding | 21,500 | 21,500 | |||
Unsecured working capital loans | |||||
Principal and interest outstanding | 2,800 | 2,800 | $ 1,300 | ||
Principal payments made | 300 | $ 1,000 | 1,000 | 2,300 | |
Interest payments | $ 66 | $ 23 | $ 104 | $ 74 |
6. Operating Leases (Details)
6. Operating Leases (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Operating Leases Details | |
2,016 | $ 439 |
2,017 | 455 |
2,018 | 470 |
2,019 | 487 |
2,020 | 461 |
Thereafter | 0 |
Total | $ 2,312 |
6. Operating Leases (Details Na
6. Operating Leases (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Leases Details Narrative | ||||
Rent expense | $ 116 | $ 106 | $ 222 | $ 212 |
7. Outstanding Warrants (Detail
7. Outstanding Warrants (Details 1) - Warrant - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | |
Number of Warrants Outstanding, Beginning | 351 | 351 | 351 |
Number of Warrants Granted | 0 | 116 | |
Number of Warrants Exercised | 0 | (116) | |
Number of Warrants Outstanding, Ending | 351 | 351 | 351 |
Weighted Average Exercise Price Outstanding, Beginning | $ 3.05 | $ 3.05 | $ 3.05 |
Weighted Average Exercise Price Granted | 0.01 | ||
Weighted Average Exercise Price Exercised | 0.01 | 3.05 | |
Weighted Average Exercise Price Outstanding, Ending | $ 3.05 | $ 3.05 | $ 3.05 |
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning | 2 years 8 months 8 days | ||
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending | 2 years 2 months 12 days | 2 years 5 months 12 days |
8. Fair Value of Warrants (Deta
8. Fair Value of Warrants (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Expected dividend yield | 0.00% |
Exercise price | $ .01 |
Company stock price | $ 3.60 |
Minimum [Member] | |
Risk-free interest rate | 0.64% |
Expected volatility | 73.12% |
Expected Life (years), min | 2 years |
Maximum [Member] | |
Risk-free interest rate | 0.83% |
Expected volatility | 76.64% |
Expected Life (years), min | 2 years 6 months |
9. Fair Value Measurements (Det
9. Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Warranty liability | $ 67 |
Level 1 | |
Warranty liability | 0 |
Level 2 | |
Warranty liability | 0 |
Level 3 | |
Warranty liability | $ 67 |
9. Fair Value Measurements (D50
9. Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Jun. 30, 2015 | |
Fair Value Measurements Details 1 | ||
Beginning Balance | $ 108 | $ 108 |
Related change in fair value | (29) | (12) |
Ending Balance | $ 79 | $ 67 |
10. Stock-Based Compensation (D
10. Stock-Based Compensation (Details) - Stock Option - $ / shares | 6 Months Ended |
Jun. 30, 2015 | |
Shares Available for Grant, Beginning | 5 |
Shares Available for Grant, Authorized | 200 |
Shares Available for Grant, Granted | (173) |
Shares Available for Grant, Exercised | 0 |
Shares Available for Grant, Forfeited/Expired | 50 |
Shares Available for Grant, Ending | 82 |
Number of Shares Outstanding, Beginning | 1,015 |
Number of Shares Authorized | 0 |
Number of Shares Granted | 173 |
Number of Shares Exercised | (137) |
Number of Shares Forfeited/Expired | (50) |
Number of Shares Outstanding, Ending | 1,001 |
Weighted Average Exercise Price Outstanding, Beginning | $ 5.51 |
Weighted Average Exercise Price Authorized | 0 |
Weighted Average Exercise Price Granted | 4.28 |
Weighted Average Exercise Price Exercised | 3.79 |
Weighted Average Exercise Price Forfeited/Expired | 2.04 |
Weighted Average Exercise Price Outstanding, Ending | $ 5.84 |
10. Stock-Based Compensation 52
10. Stock-Based Compensation (Details 1) - Jun. 30, 2015 - $ / shares | Total |
Stock-based Compensation Details 1 | |
Dividend-yield | 0.00% |
Risk-free interest rate | 1.53% |
Expected volatility | 69.34% |
Expected life (years) | 5 years |
Market value per share on grant date | $ 4.35 |
Weighted average fair value per share on grant date | $ 2.52 |
11. Agreements (Details)
11. Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Agreements Details | ||||
Ethanol sales | $ 24,247 | $ 40,799 | $ 46,859 | $ 87,747 |
Wet distiller's grains sales | 6,609 | 11,708 | 13,959 | 21,423 |
Corn oil sales | 1,071 | 1,344 | 1,936 | 2,245 |
Corn purchases | 24,934 | 33,619 | 50,893 | 66,947 |
Accounts receivable | 329 | 458 | 329 | 458 |
Accounts payable | $ 1,673 | $ 2,122 | $ 1,673 | $ 2,122 |
11. Agreements (Details Narrati
11. Agreements (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Agreements | ||||
Marketing costs | $ 600 | $ 800 | $ 1,200 | $ 1,600 |
12. Segment Information (Detail
12. Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
North America | $ 34,144 | $ 53,999 | $ 67,351 | $ 113,080 |
India | 3,923 | 3,196 | 5,442 | 4,780 |
Total revenues | 38,067 | 57,195 | 72,793 | 117,860 |
Cost of goods sold | ||||
North America | 32,517 | 42,713 | 65,886 | 86,122 |
India | 3,601 | 3,129 | 5,186 | 4,761 |
Total cost of goods sold | 36,118 | 45,842 | 71,072 | 90,883 |
Gross profit (loss) | ||||
North America | 1,627 | 11,286 | 1,465 | 26,958 |
India | 322 | 67 | 256 | 19 |
Total gross profit (loss) | $ 1,949 | $ 11,353 | $ 1,721 | $ 26,977 |
12. Segment Information (Deta56
12. Segment Information (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Information Details 1 | ||
North America | $ 76,164 | $ 76,066 |
India | 14,987 | 13,110 |
Total Assets | $ 91,151 | $ 89,176 |
13. Related Party Transactions
13. Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related party transaction | $ 11 | $ 85 | |||
Eric McAfee and McAfee Capital | |||||
Related party debt | $ 400 | $ 400 | $ 400 | ||
Related party transaction | $ 38 | $ 119 |