Aemetis (AMTX) 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document Document And Entity Information Abstract
Entity Registrant Name	AEMETIS, INC.
Entity Central Index Key	738,214
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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		19,696,447
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 231	$ 1,486
Accounts receivable	1,004	1,557
Inventories	2,784	3,241
Prepaid expenses	698	555
Other current assets	213	206
Total current assets	4,930	7,045
Property, plant and equipment, net	65,670	66,370
Intangible assets, net of accumulated amortization of $444 and $424, respectively	1,280	1,300
Other assets	3,097	3,095
Total assets	74,977	77,810
Current liabilities:
Accounts payable	7,812	7,842
Current portion of long term debt	1,575	2,027
Short term borrowings	11,280	9,382
Mandatorily redeemable Series B convertible preferred stock	2,869	2,844
Accrued property taxes	2,947	2,648
Other current liabilities	2,518	2,473
Total current liabilities	29,001	27,216
Long term liabilities:
Senior secured notes	64,524	61,631
EB-5 notes	33,500	33,000
Long term subordinated debt	5,711	5,674
Other long term liabilities	80	102
Total long term liabilities	103,815	100,407
Stockholders' deficit:
Series B convertible preferred stock, $0.001 par value; 7,235 authorized; 1,328 and 1,328 shares issued and outstanding each period, respectively (aggregate liquidation preference of $3,984 and $3,984, respectively)	1	1
Common stock, $0.001 par value; 40,000 authorized; 19,696 and 19,858 shares issued and outstanding, respectively	20	20
Additional paid-in capital	83,573	83,441
Accumulated deficit	(138,414)	(129,887)
Accumulated other comprehensive loss	(3,019)	(3,388)
Total stockholders' deficit	(57,839)	(49,813)
Total liabilities and stockholders' deficit	$ 74,977	$ 77,810

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Intangible assets, accumulated amortization	$ 444	$ 424
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	1,328	1,328
Series B Preferred stock, shares outstanding	1,328	1,328
Aggregate Liquidation Preference	$ 3,984	$ 3,984
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	19,696	19,858
Common stock, shares outstanding	19,696	19,858

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 31,574	$ 33,326
Cost of goods sold	32,161	31,240
Gross profit (loss)	(587)	2,086
Research and development expenses	86	97
Selling, general and administrative expenses	3,295	2,999
Operating loss	(3,968)	(1,010)
Interest expense
Interest rate expense	2,842	2,678
Amortization expense	1,683	1,355
Other expense	28	64
Loss before income taxes	(8,521)	(5,107)
Income tax expense	6	6
Net loss	(8,527)	(5,113)
Other comprehensive income (loss)
Foreign currency translation adjustment	369	(6)
Comprehensive loss	$ (8,158)	$ (5,119)
Net income(loss) per common share
Basic	$ (0.43)	$ (0.26)
Diluted	$ (0.43)	$ (0.26)
Weighted average shares outstanding
Basic	19,776	19,648
Diluted	19,776	19,648

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (8,527)	$ (5,113)
Adjustments to reconcile net loss to net cash provided by (used in) operating activitites:
Share-based compensation	409	117
Depreciation	1,146	1,175
Debt related amortization expense	1,683	1,355
Intangibles and other amortization expense	33	32
Change in fair value of warrant liability	5	16
Changes in operating assets and liabilities:
Accounts receivable	569	210
Inventories	498	2,003
Prepaid expenses	(142)	0
Other current assets and other assets	1	(578)
Accounts payable	(303)	(1,948)
Accrued interest expense and fees, net of payments	1,977	2,947
Other liabilities	181	501
Net cash provided by (used in) operating activities	(2,470)	717
Investing activities:
Capital expenditures	(44)	(308)
Net cash used in investing activities	(44)	(308)
Financing activities:
Proceeds from borrowings	3,043	777
Repayments of borrowings	(2,050)	(1,143)
Net cash provided by (used in) financing activities	993	(366)
Effect of exchange rate changes on cash and cash equivalents	266	(1)
Net cash and cash equivalents (decrease) increase for period	(1,255)	42
Cash and cash equivalents at beginning of period	1,486	283
Cash and cash equivalents at end of period	231	325
Supplemental disclosures of cash flow information, cash paid:
Interest paid	1,004	86
Income taxes paid	6	6
Supplemental disclosures of cash flow information, non-cash transactions:
Subordinated debt extension fees added to debt	340	340
Fair value of warrants issued to subordinated debt holders	174	328
Repurchase of common stock on agent advance sub debt	451	0
Senior debt extension and waiver fees added to debt	4,446	4,940
Settlement of accounts payable through transfer of equipment	$ 0	$ 66

1. Nature of Activities and Sum

1. Nature of Activities and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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; ● Aemetis Advanced Fuels Goodland, Inc., a Delaware corporation; and, ● Aemetis Advanced Biorefinery Keyes, Inc., a Delaware corporation. Headquartered in Cupertino, California, the Company is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products through the conversion of second-generation ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, the Company owns and operates a 60 million gallon per year ethanol production facility in the California Central Valley near Modesto where its manufactures and produces ethanol, wet distillers’ grains (“WDG”), condensed distillers solubles (“CDS”) and distillers’ corn oil. The Company also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. It also operates a research and development laboratory at the Maryland Biotech Center, and holds a portfolio of patents and related technology licenses for the production of renewable fuels 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 months ended March 31, 2017 and 2016 have been prepared on the same basis as the audited consolidated statements as of December 31, 2016 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 months ended March 31, 2017 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 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 un-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. We did not reserve any balance for allowances for doubtful accounts as of March 31, 2017 and December 31, 2016. Inventories Property, Plant and Equipment The Company evaluates the recoverability of long-lived assets with finite lives in accordance with Accounting Standards Codification (ASC) Subtopic 360-10-35 Property Plant and Equipment –Subsequent Measurements, Basic and Diluted Net Loss per Share. The following table shows the number of potentially dilutive shares excluded from the diluted net loss per share calculation as of March 31, 2017 and 2016: As of March 31, 2017 March 31, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,613 1,316 Debt with conversion feature at $30 per share of common stock 1,168 801 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,914 2,250 Comprehensive Loss. Comprehensive Income Foreign Currency Translation/Transactions. Operating Segments. The “North America” operating segment includes the Company’s 60 million gallons per year capacity Keyes plant in Keyes, California and its research facilities in College Park, Maryland. The “India” operating segment encompasses the Company’s 50 million gallon per year capacity biodiesel plant in Kakinada, India, its administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius. Fair Value of Financial Instruments. Share-Based Compensation. Stock Compensation, Commitments and Contingencies. Contingencies Debt Modification Accounting Debt – Modification and Extinguishments Convertible Instruments Recently Issued Accounting Pronouncements None reported beyond those disclosed in our 2016 annual report.

2. Inventories

2. Inventories	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
2. Inventories	Inventories consist of the following: March 31, 2017 December 31, 2016 Raw materials $ 979 $ 1,044 Work-in-progress 1,405 1,360 Finished goods 400 837 Total inventories $ 2,784 $ 3,241

3. Property, Plant and Equipmen

3. Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
3. Property, Plant and Equipment	Property, plant and equipment consist of the following: March 31, 2017 December 31, 2016 Land $ 2,738 $ 2,713 Plant and buildings 82,282 81,755 Furniture and fixtures 603 572 Machinery and equipment 4,353 4,308 Construction in progress 104 88 Total gross property, plant & equipment 90,080 89,436 Less accumulated depreciation (24,410 ) (23,066 ) Total net property, plant & equipment $ 65,670 $ 66,370 Depreciation on the components of property, plant and equipment is calculated using the straight-line method 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 March 31, 2017 and March 31, 2016, the Company recorded depreciation expense of $1.1 million and $1.2 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 was no impairment on the long-lived assets during the three months ended March 31, 2017.

4. Debt

4. Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
4. Debt	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: March 31, 2017 December 31, 2016 Third Eye Capital term notes $ 6,645 $ 6,577 Third Eye Capital revolving credit facility 27,450 24,927 Third Eye Capital revenue participation term notes 11,153 11,042 Third Eye Capital acquisition term notes 19,276 19,085 Third Eye Capital promissory note 2,124 - Cilion shareholder seller notes payable 5,711 5,674 Subordinated notes 7,785 7,565 EB-5 long term promissory notes 35,075 35,027 Unsecured working capital loans 1,371 1,817 Total debt 116,590 111,714 Less current portion of debt 12,855 11,409 Total long term debt $ 103,735 $ 100,305 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. (the Term Notes, Revolving Credit Facility, Revenue Participation Term Notes and Acquisition Term Notes are referred to herein collectively as the Original Third Eye Capital Notes). After this financing transaction, Third Eye Capital obtained sufficient equity ownership in the Company to be considered a related party. The Original Third Eye Capital Notes have a maturity date of April 1, 2018. On January 31, 2017, a Promissory Note (the “January 2017 Note”, together with the Original Third Eye Capital Notes, the “Third Eye Capital Notes”) for $2.1 million was advanced by Third Eye Capital to Aemetis Inc., as a short-term credit facility for working capital and other general corporate purposes with an interest rate of 14% per annum maturing on the earlier of (a) receipt of proceeds from any financing, refinancing, or other similar transaction, (b) extension of credit by payee, as lender or as agent on behalf of certain lenders, to the Company or its affiliates, or (c) May 30, 2017. In addition, as part of the January 2017 Note agreement, Aemetis used $0.5 million of the total proceeds to buy back 275 thousand common shares that were held by Third Eye Capital. In consideration of the January 2017 Note, $133 thousand of the total proceeds were paid to Third Eye Capital as financing charges. As of March 31, 2017, the outstanding balance on the January 2017 Note was $2.1 million. On March 1, 2017, Third Eye Capital agreed to Amendment No. 13 to the Note Purchase Agreement to: (i) extend the maturity date of the Third Eye Capital Notes to April 1, 2018 in exchange for a 5% extension fee consisting of adding $3.1 million to the outstanding principal balance of the Note Purchase Agreement and allowing for the further extension of the maturity date of the Third Eye Capital Notes to April 1, 2019, at the Company’s election, for an additional extension fee of 5% of the then outstanding Third Eye Capital Notes, (ii) waive the free cash flow financial covenant under the Note Purchase Agreement for the three months ended December 31, 2016, (iii) provide that such covenant will be deleted prospectively from the Note Purchase Agreement, (iv) waive the default under the Note Purchase Agreement relating to indebtedness outstanding to Laird Cagan and (v) waive the covenant under the Note Purchase Agreement to permit the Company to pay off the defaulted Laird Cagan subordinated note by issuing stock. The borrowers agreed to use their best efforts to close the transaction to purchase assets in Goodland, Kansas from Third Eye Capital as described in a non-binding offer to purchase letter between an affiliate of the Company and Third Eye Capital. As consideration for such amendment and waiver, the borrowers agreed to pay Third Eye Capital an amendment and waiver fee of $750 thousand to be added to the outstanding principal balance of the Revolving Credit Facility. As a result of the extension of the maturity date in Amendment No. 13, the Third Eye Capital Notes are classified as non-current debt. We evaluated the Amendment of the Notes and applied modification accounting treatment in accordance with ASC 470-50 Debt – Modification and Extinguishment On April 28, 2017, the Company entered into a short-term credit facility for working capital and other general corporate purposes governed by a Promissory Note for $1.5 million payable to Third Eye Capital with an interest rate of 14% per annum maturing on the earliest of (a) closing of the Financing, (b) receipt of proceeds from any financing, refinancing or other similar transaction, (c) extension of credit by the Lender, or Agent on behalf of certain lenders or the Noteholders, to the Debtors or their affiliates, and (d) June 15, 2017. Terms of Third Eye Capital Notes A. Term Notes B. Revolving Credit Facility C. Revenue Participation Term Notes D. Acquisition Term Notes E. January 2017 Note. The Third Eye Capital Notes contain various covenants, including but not limited to, debt to plant value ratio, minimum production requirements, and restrictions on capital expenditures. 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 Third Eye Capital 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 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 Subordinated Notes On January 1, 2017, the Subordinated Notes were amended to extend the maturity date until the earlier of (i) June 30, 2017; (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 113 thousand shares of common stock were granted with a term of two years and an exercise price of $0.01 per share. We evaluated the January 1, 2017 amendment and the refinancing terms of the notes and applied modification accounting treatment 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 December 31, 2016 with a five percent annualized interest rate and the right to exercise 5 thousand warrants exercisable at $0.01 per share. At March 31, 2017 and December 31, 2016, the Company owed, in aggregate, subordinated notes in the amount of $7.8 million and $7.6 million in principal and interest outstanding, net of unamortized issuance discounts of $0.3 million and none, respectively. EB-5 long-term promissory notes Advanced BioEnergy, LP arranges investments with foreign investors, who each make loans to the Keyes plant in increments of $0.5 million. As of March 31, 2017, the Company has sold an aggregate principal amount of $36.0 million of EB-5 Notes under the EB-5 Phase I funding since 2012, of which $34.0 million have been released from the escrow amount to the Company, with $1.0 million remaining in escrow and $1.0 million to be funded to escrow. As of March 31, 2017, $34.0 million in principal and $1.1 million in accrued interest were outstanding on the EB-5 Notes. On October 16, 2016, the Company launched its EB-5 Phase II funding, with plans to issue $50.0 million in additional EB-5 Notes on substantially similar terms and conditions as those issued under the Company’s EB-5 Phase I funding. Unsecured working capital loans During the three months ended March 31, 2017 and 2016, the Company made principal and interest payments to Secunderabad Oils of approximately $0.5 million and $0.1 million, respectively. As of March 31, 2017 and December 31, 2016, the Company had approximately $1.3 million and $0.3 million outstanding under this agreement, respectively. In October 2016, the Company made an agreement with a supplier of palm stearin to its Kakinada plant to pay 12% interest on an unpaid balance under the raw material purchase agreement of $1.9 million. As of March 31, 2017 and December 31, 2016, the Company had nil and $1.5 million outstanding on this raw material purchase agreement, respectively. Scheduled debt repayments for loan obligations follow: Twelve months ended March 31, Debt Repayments 2018 $ 12,855 2019 88,569 2020 8,000 2021 10,711 Total debt 120,135 Discounts (3,545 ) Total debt, net of discounts $ 116,590

5. Stock-Based Compensation

5. Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Stockholders' deficit:
5. Stock Based Compensation	Common Stock Reserved for Issuance Aemetis authorized the issuance of 2.6 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. These options generally expire five to ten years from the date of grant with a general vesting term of 1/12th every three months and are exercisable at any time after vesting subject to continuation of employment. On January 19, 2017, 637 thousand stock option grants were issued to employees and directors under the Company Stock Plans. As of March 31, 2017, 171 thousand options were vested and 2.1 million options are outstanding under the Company Stock Plans. 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 March 31, 2017, all options are vested and 89 thousand options are 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 thousand non-statutory stock options to purchase common stock. As of March 31, 2017, 37 thousand options were outstanding. The following is a summary of options granted under the all above stock plans: Shares Available for Grant Number of Shares Outstanding Weighted-Average Exercise Price Balance as of December 31, 2016 98 1,632 $ 4.37 Authorized 655 - - Granted (637 ) 637 1.72 Forfeited/expired 9 (9 ) 4.86 Balance as of March 31, 2017 125 2,260 $ 3.62 As of March 31, 2017, there were 1.2 million options vested under all the above stock plans. Stock-based compensation for employees Stock-based compensation is accounted for in accordance with the provisions of ASC 718, Compensation-Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. For the three months ended March 31, 2017 and 2016, the Company recorded stock compensation expense in the amount of $409 thousand and $117 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 SEC’s 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. There were 637 thousand options granted during the three months ended March 31, 2017. The fair value calculations for options granted during three months ended March 31, 2017 are based on the following assumptions: Description For the three months ended March 31, 2017 Dividend-yield 0 % Risk-free interest rate 2.28 % Expected volatility 74.83 % Expected life (years) 7 Market value per share on grant date $ 1.72 Fair value per share on grant date $ 1.21 As of March 31, 2017, the Company had $1.5 million of total unrecognized compensation expense for employees which the Company will amortize over the 2.3 years of weighted average remaining term.

6. Agreements

6. Agreements	3 Months Ended
	Mar. 31, 2017
Agreements
6. Agreements	Working Capital Arrangement. The J.D. Heiskell sales activity associated with the Purchasing Agreement and the Corn Procurement and Working Capital Agreement during the three months ended March 31, 2017 and 2016 were as follows: As of and for the three months ended March 31, 2017 2016 Ethanol sales $ 22,544 $ 20,251 Wet distiller's grains sales 4,564 5,175 Corn oil sales 798 707 Corn/milo purchases 23,468 21,353 Accounts receivable 336 302 Accounts payable 1,616 1,391 Ethanol and Wet Distillers Grains Marketing Arrangement.

7. Segment Information

7. Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
7. 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 gains market acceptance, this business segment is expected to include its domestic commercial application of cellulosic 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 months ended March 31, 2017 and 2016 follows: For the three months ended March 31, 2017 2016 Revenues North America $ 29,953 $ 28,052 India 1,621 5,274 Total revenues $ 31,574 $ 33,326 Cost of goods sold North America $ 30,649 $ 26,159 India 1,512 5,081 Total cost of goods sold $ 32,161 $ 31,240 Gross profit (loss) North America $ (696 ) $ 1,893 India 109 193 Total gross profit (loss) $ (587 ) $ 2,086 North America. India Total assets by segment consist of the following: As of March 31, December 31, 2017 2016 North America $ 64,735 $ 67,279 India 10,242 10,531 Total Assets $ 74,977 $ 77,810

8. Related Party Transactions

8. Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
8. Related Party Transactions	The Company owes Eric McAfee, the Company’s Chairman and CEO, and McAfee Capital, solely owned by Eric McAfee, amounts of $0.4 million and $0.4 million in connection with employment agreements and expense reimbursements included in accrued expenses and accounts payable on the balance sheet as of March 31, 2017 and December 31, 2016. For the three months ended March 31, 2017 and 2016, the Company expensed $17 thousand and $22 thousand, respectively, to reimburse actual expenses incurred for McAfee Capital and related entities. The Company prepaid $0.2 million to Redwood Capital, a company controlled by Eric McAfee, for the Company’s use of flight time on a corporate jet. As of March 31, 2017, $0.1 million remained as a prepaid expense. As consideration for the reaffirmation of guaranties required by Amendment No. 12 to the Note Purchase Agreement which the Company entered into with Third Eye Capital on March 21, 2016, the Company also agreed to pay $0.2 million in consideration to McAfee Capital in exchange for their willingness to provide the guarantees. As part of the guarantee fee agreement, $0.2 million is accrued as of March 31, 2017 and December 31, 2016.

9. Subsequent Events

9. Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
9. Subsequent Events	On April 28, 2017, the Company entered into a short-term credit facility for working capital and other general corporate purposes governed by a Promissory Note for $1.5 million payable to Third Eye Capital with an interest rate of 14% per annum maturing on the earliest of (a) closing of the Financing, (b) receipt of proceeds from any financing, refinancing or other similar transaction, (c) extension of credit by the Lender, or Agent on behalf of certain lenders or the Noteholders, to the Debtors or their affiliates, and (d) June 15, 2017.

10. Management's Plan

10. Management's Plan	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
10. 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. 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. Management’s plans for the Company include, but are not limited to: ● Operating the Keyes plant at a profitable level; ● Continuing to incorporate lower-cost, advanced biofuels feedstock at the Keyes plant when economical; ● Obtaining the remaining $1.0 million of EB-5 Phase I funding from escrow and $1.0 million from fund raising; ● Obtaining $50.0 million in funding from EB-5 Phase II funding currently being offered to investors; ● Refinancing the senior debt with a lender who is able to offer terms conducive to the long term financing of the Keyes plant; ● Use the Company’s India facility as collateral for additional working capital or for reducing current financing costs; ● Securing higher volumes of shipments from the Kakinada, India biodiesel and refined glycerin facility; and ● Offering the Company’s common stock by the ATM Registration Statement. Management believes that through the above mentioned actions it will be able to fund company operations and continue to operate the secured assets for at least a year. There can be no assurance that the existing credit facilities and cash from operations will be sufficient or 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 S16

1. Nature of Activities and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Proceeds from borrowing under secured debt facilities
Nature of Activities	These consolidated financial statements include the accounts of Aemetis, Inc. (formerly AE Biofuels, 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; ● Aemetis Advanced Fuels, Inc., a Nevada corporation; ● Aemetis Advanced Products Keyes, Inc., a Delaware corporation; ● Aemetis Advanced Fuels Goodland, Inc., a Delaware corporation; and, ● Aemetis Advanced Biorefinery Keyes, Inc., a Delaware corporation. Headquartered in Cupertino, California, the Company is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products through the conversion of second-generation ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, the Company owns and operates a 60 million gallon per year ethanol production facility in the California Central Valley near Modesto where its manufactures and produces ethanol, wet distillers’ grains (“WDG”), condensed distillers solubles (“CDS”) and distillers’ corn oil. The Company also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. It also operates a research and development laboratory at the Maryland Biotech Center, and holds a portfolio of patents and related technology licenses for the production of renewable fuels 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 March 31, 2017, the consolidated condensed statements of operations and comprehensive loss for the three months ended March 31, 2017 and 2016, and the consolidated condensed statements of cash flows for the three months ended March 31, 2017 and 2016 are unaudited. The consolidated condensed balance sheet as of December 31, 2016 was derived from the 2016 audited consolidated financial statements and notes thereto. The consolidated condensed financial statements in this report should be read in conjunction with the 2016 audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. 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 months ended March 31, 2017 and 2016 have been prepared on the same basis as the audited consolidated statements as of December 31, 2016 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 months ended March 31, 2017 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods.
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 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.
Accounts Receivable	The Company sells ethanol, WDG, CDS, and distillers’ corn oil 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 receivables consist of product sales made to large creditworthy customers. Trade accounts receivable are presented at original invoice amount, net of any 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 un-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. We did not reserve any balance for allowances for doubtful accounts as of March 31, 2017 and December 31, 2016.
Inventories	Ethanol inventory, raw materials, and work-in-process are valued using methods which approximate the lower of cost (first-in, first-out) or net realizable value (NRV). Distillers’ grains and related products are stated at NRV. In the valuation of inventories, NRV is determined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
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 the biodiesel plant in India. It is the Company’s policy to depreciate capital assets over their estimated useful lives using the straight-line method. The Company evaluates the recoverability of long-lived assets with finite lives in accordance with Accounting Standards Codification (ASC) Subtopic 360-10-35 Property Plant and Equipment –Subsequent Measurements,
Basic and Diluted Net Income (Loss) per Share	Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net 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 losses for the three months ended March 31, 2017 and 2016, potentially dilutive securities have been excluded from the diluted net loss per share computations as their effect would be anti-dilutive. The following table shows the number of potentially dilutive shares excluded from the diluted net loss per share calculation as of March 31, 2017 and 2016: As of March 31, 2017 March 31, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,613 1,316 Debt with conversion feature at $30 per share of common stock 1,168 801 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,914 2,250
Comprehensive Loss	ASC 220 Comprehensive Income
Foreign Currency Translation/Transactions	Assets and liabilities of the Company’s non-U.S. subsidiary that operates 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 loss. Income and expense accounts are translated at average exchange rates. Gains and losses from other foreign currency transactions are recorded in other income (expense).
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 60 million gallons per year capacity Keyes plant in Keyes, California and its research facilities in College Park, Maryland. The “India” operating segment encompasses the Company’s 50 million gallon per year capacity biodiesel plant in Kakinada, India, its administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius.
Fair Value of Financial Instruments	The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximate their estimated fair values due to the short-term maturities of those financial instruments. These financial instruments are considered Level 1 measurements under the fair value hierarchy. Due to the unique terms of our notes payable and lines of credit and the financial condition of the Company, the fair value of the debt is not readily determinable and outside valuation experts are used to estimate the discount rate using the similar instruments in case of application of extinguishment accounting.
Share-Based Compensation	The Company recognizes share-based compensation expense in accordance with ASC 718 Stock Compensation,
Commitments and Contingencies	The Company records and/or discloses commitments and contingencies in accordance with ASC 450 Contingencies
Debt Modification Accounting	The Company evaluates amendments to its debt in accordance with ASC 470-50 Debt – Modification and Extinguishments
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.
Recently Issued Accounting Pronouncements	None reported beyond those disclosed in our 2016 annual report.

1. Nature of Activities and S17

1. Nature of Activities and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Proceeds from sale of land
Schedule of dilutive securities	As of March 31, 2017 March 31, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,613 1,316 Debt with conversion feature at $30 per share of common stock 1,168 801 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,914 2,250

2. Inventories (Tables)

2. Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Notes Payable
Schedule of Inventories	March 31, 2017 December 31, 2016 Raw materials $ 979 $ 1,044 Work-in-progress 1,405 1,360 Finished goods 400 837 Total inventories $ 2,784 $ 3,241

3. Property, Plant and Equipm19

3. Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Statement of Operations Data
Schedule of Property, plant and equipment	March 31, 2017 December 31, 2016 Land $ 2,738 $ 2,713 Plant and buildings 82,282 81,755 Furniture and fixtures 603 572 Machinery and equipment 4,353 4,308 Construction in progress 104 88 Total gross property, plant & equipment 90,080 89,436 Less accumulated depreciation (24,410 ) (23,066 ) Total net property, plant & equipment $ 65,670 $ 66,370
Depreciation of property, plant, and equipment	Years Plant and buildings 20 - 30 Machinery & equipment 5 - 7 Furniture & fixtures 3 - 5

4. Debt (Tables)

4. Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Wet distiller's grains sales
Schedule of Notes Payable	March 31, 2017 December 31, 2016 Third Eye Capital term notes $ 6,645 $ 6,577 Third Eye Capital revolving credit facility 27,450 24,927 Third Eye Capital revenue participation term notes 11,153 11,042 Third Eye Capital acquisition term notes 19,276 19,085 Third Eye Capital promissory note 2,124 - Cilion shareholder seller notes payable 5,711 5,674 Subordinated notes 7,785 7,565 EB-5 long term promissory notes 35,075 35,027 Unsecured working capital loans 1,371 1,817 Total debt 116,590 111,714 Less current portion of debt 12,855 11,409 Total long term debt $ 103,735 $ 100,305
Maturities of Long-term Debt	Twelve months ended March 31, Debt Repayments 2018 $ 12,855 2019 88,569 2020 8,000 2021 10,711 Total debt 120,135 Discounts (3,545 ) Total debt, net of discounts $ 116,590

5. Stock-Based Compensation (Ta

5. Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Third Eye Capital Revenue Participation Term Notes
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, 2016 98 1,632 $ 4.37 Authorized 655 - - Granted (637 ) 637 1.72 Forfeited/expired 9 (9 ) 4.86 Balance as of March 31, 2017 125 2,260 $ 3.62
Schedule of weighted average fair value calculations for options	Description For the three months ended March 31, 2017 Dividend-yield 0 % Risk-free interest rate 2.28 % Expected volatility 74.83 % Expected life (years) 7 Market value per share on grant date $ 1.72 Fair value per share on grant date $ 1.21

6. Agreements (Tables)

6. Agreements (Tables)	3 Months Ended
	Mar. 31, 2017
Agreements Tables
Schedule of working capital agreement activity	As of and for the three months ended March 31, 2017 2016 Ethanol sales $ 22,544 $ 20,251 Wet distiller's grains sales 4,564 5,175 Corn oil sales 798 707 Corn/milo purchases 23,468 21,353 Accounts receivable 336 302 Accounts payable 1,616 1,391

7. Segment Information (Tables)

7. Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Information Tables
Schedule of segment information	For the three months ended March 31, 2017 2016 Revenues North America $ 29,953 $ 28,052 India 1,621 5,274 Total revenues $ 31,574 $ 33,326 Cost of goods sold North America $ 30,649 $ 26,159 India 1,512 5,081 Total cost of goods sold $ 32,161 $ 31,240 Gross profit (loss) North America $ (696 ) $ 1,893 India 109 193 Total gross profit (loss) $ (587 ) $ 2,086
Schedule of segment assets	As of March 31, December 31, 2017 2016 North America $ 64,735 $ 67,279 India 10,242 10,531 Total Assets $ 74,977 $ 77,810

1. Nature of Activities and S24

1. Nature of Activities and Summary of Significant Accounting Policies (Details) - shares	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Series B preferred (1:10 post split basis)	133	133
Common stock options and warrants	2,613	1,316
Debt with conversion feature at $30 per share of common stock	1,168	801
Total number of potentially dilutive shares excluded from the diluted net loss per share calculation	3,914	2,250

2. Inventories (Details)

2. Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
RepaymentsOfBorrowingsUnderShortTermFacilities
Raw materials	$ 979	$ 1,044
Work-in-progress	1,405	1,360
Finished goods	400	837
Total inventory	$ 2,784	$ 3,241

3. Property, Plant and Equipm26

3. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of warrant activity
Land	$ 2,738	$ 2,713
Plant and Buildings	82,282	81,755
Furniture and fixtures	603	572
Machinery and equipment	4,353	4,308
Construction in progress	104	88
Total gross property, plant & equipment	90,080	89,436
Less accumulated depreciation	(24,410)	(23,066)
Total net property, plant & equipment	$ 65,670	$ 66,370

3. Property, Plant and Equipm27

3. Property, Plant and Equipment (Details 1)	3 Months Ended
	Mar. 31, 2017
Plant and Buildings | Minimum
Depreciation (years)	20 years
Plant and Buildings | Maximum [Member]
Depreciation (years)	30 years
Machinery and Equipment | Minimum
Depreciation (years)	5 years
Machinery and Equipment | Maximum [Member]
Depreciation (years)	7 years
Furniture and Fixtures | Minimum
Depreciation (years)	3 years
Furniture and Fixtures | Maximum [Member]
Depreciation (years)	5 years

3. Property, Plant and Equipm28

3. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure 3.Property Plant And Equipment Details Narrative Abstract
Depreciation expense	$ 1,146	$ 1,175

4. Debt (Details)

4. Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Total revenues
Third Eye Capital term notes	$ 6,645	$ 6,577
Third Eye Capital revolving credit facility	27,450	24,927
Third Eye Capital revenue participation term notes	11,153	11,042
Third Eye Capital acquisition term notes	19,276	19,085
Third Eye Capital promissory note	2,124	0
Cilion shareholder Seller note payable	5,711	5,674
Subordinated notes	7,785	7,565
EB-5 long term promissory notes	35,075	35,027
Unsecured working capital loans	1,371	1,817
Total debt	116,590	111,714
Less current portion of debt	12,855	11,409
Total long term debt	$ 103,735	$ 100,305

4. Debt (Details 1)

4. Debt (Details 1) $ in Thousands	Mar. 31, 2017USD ($)
Twelve months ended September 30,
2,018	$ 12,855
2,019	88,569
2,020	8,000
2,021	10,711
Total debt	120,135
Discounts	(3,545)
Total debt, net of discounts	$ 116,590

4. Debt (Details Narrative)

4. Debt (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Interest payments	$ 1,004	$ 86
Third Eye Capital Term Notes
Principal and interest outstanding	6,600
Unamortized discount	400
Third Eye Capital Revolving Credit Facility
Principal and interest outstanding	27,500
Unamortized debt issuance costs	1,500
Third Eye Capital Revenue Participation Term Note
Principal and interest outstanding	11,200
Unamortized discount	600
Third Eye Capital Acquisition Term Notes
Principal and interest outstanding	19,300
Unamortized discount	1,000
Cilion shareholder Seller notes payable
Principal and interest outstanding	5,700
Subordinated Notes
Principal and interest outstanding	7,800		$ 7,600
EB-5 long-term promissory notes
Principal and interest outstanding	36,000
Outstanding accrued interest	1,100
Unsecured working capital loans
Principal and interest outstanding	1,300		$ 300
Principal and interest payments made	$ 500	$ 100

5. Stock-Based Compensation (De

5. Stock-Based Compensation (Details) - Employee Stock Plan	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Shares Available for Grant, Beginning	98
Shares Available for Grant, Authorized	655
Shares Available for Grant, Granted	(637)
Shares Available for Grant, Forfeited/Expired	9
Shares Available for Grant, Ending	125
Number of Shares Outstanding, Beginning	1,632
Number of Shares Authorized	0
Number of Shares Granted	637
Number of Shares Forfeited/Expired	(9)
Number of Shares Outstanding, Ending	2,260
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 4.37
Weighted Average Exercise Price Authorized | $ / shares	0
Weighted Average Exercise Price Granted | $ / shares	1.72
Weighted Average Exercise Price Forfeited/Expired | $ / shares	4.86
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 3.62

5. Stock-Based Compensation (33

5. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based Compensation Details Narrative
Stock compensation expense	$ 409	$ 117
Unrecognized compensation expense	$ 1,500

6. Agreements (Details)

6. Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Agreements Details
Ethanol sales	$ 22,544	$ 20,251
Wet distiller's grains sales	4,564	5,175
Corn oil sales	798	707
Corn/Milo purchases	23,468	21,353
Accounts receivable	336	302
Accounts payable	$ 1,616	$ 1,391

6. Agreements (Details Narrativ

6. Agreements (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Agreements
Marketing costs	$ 500	$ 500

7. Segment Information (Details

7. Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
North America	$ 29,953	$ 28,052
India	1,621	5,274
Total revenues	31,574	33,326
Cost of goods sold
North America	30,649	26,159
India	1,512	5,081
Total cost of goods sold	32,161	31,240
Gross profit (loss)
North America	(696)	1,893
India	109	193
Total gross profit (loss)	$ (587)	$ 2,086

7. Segment Information (Detai37

7. Segment Information (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Segment Information Details 1
North America	$ 64,735	$ 67,279
India	10,242	10,531
Total Assets	$ 74,977	$ 77,810

8. Related Party Transactions (

8. Related Party Transactions (Details Narrative) - Eric McAfee and McAfee Capital - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related party debt	$ 400		$ 400
Related party transaction	$ 17	$ 22