Aemetis (AMTX) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 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	Jun. 30, 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		19,822,462
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 667	$ 1,486
Accounts receivable	1,135	1,557
Inventories	6,056	3,241
Prepaid expenses	1,877	555
Other current assets	309	206
Total current assets	10,044	7,045
Property, plant and equipment, net	65,020	66,370
Intangible assets, net of accumulated amortization of $465 and $424, respectively	1,259	1,300
Other assets	3,095	3,095
Total assets	79,418	77,810
Current liabilities:
Accounts payable	9,018	7,842
Current portion of long term debt	1,651	2,027
Short term borrowings	15,566	9,382
Mandatorily redeemable Series B convertible preferred stock	2,894	2,844
Accrued property taxes	3,401	2,648
Other current liabilities	2,801	2,473
Total current liabilities	35,331	27,216
Long term liabilities:
Senior secured notes	67,866	61,631
EB-5 notes	34,000	33,000
Long term subordinated debt	5,748	5,674
Other long term liabilities	58	102
Total long term liabilities	107,672	100,407
Stockholders' deficit:
Series B convertible preferred stock, $0.001 par value; 7,235 authorized; 1,328 shares issued and outstanding each period, respectively (aggregate liquidation preference of $3,984 respectively)	1	1
Common stock, $0.001 par value; 40,000 authorized; 19,710 and 19,858 shares issued and outstanding, respectively	20	20
Additional paid-in capital	83,785	83,441
Accumulated deficit	(144,401)	(129,887)
Accumulated other comprehensive loss	(2,990)	(3,388)
Total stockholders' deficit	(63,585)	(49,813)
Total liabilities and stockholders' deficit	$ 79,418	$ 77,810

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Intangible assets, accumulated amortization	$ 465	$ 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	19,710	19,858
Common stock, shares outstanding	19,710	19,858

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenues	$ 40,764	$ 33,059	$ 72,338	$ 66,385
Cost of goods sold	39,059	31,115	71,220	62,355
Gross profit	1,705	1,944	1,118	4,030
Research and development expenses	110	106	196	203
Selling, general and administrative expenses	3,262	2,902	6,557	5,901
Operating loss	(1,667)	(1,064)	(5,635)	(2,074)
Interest expense
Interest rate expense	3,164	2,955	6,006	5,633
Amortization expense	1,164	1,489	2,847	2,844
Other (income) expense	(8)	(525)	20	(461)
Loss before income taxes	(5,987)	(4,983)	(14,508)	(10,090)
Income tax expense	0	0	6	6
Net loss	(5,987)	(4,983)	(14,514)	(10,096)
Other comprehensive income (loss)
Foreign currency translation adjustment	29	(100)	398	(106)
Comprehensive loss	$ (5,958)	$ (5,083)	$ (14,116)	$ (10,202)
Net loss per common share
Basic	$ (0.30)	$ (0.25)	$ (0.74)	$ (0.51)
Diluted	$ (0.30)	$ (0.25)	$ (0.74)	$ (0.51)
Weighted average shares outstanding
Basic	19,699	19,741	19,737	19,695
Diluted	19,699	19,741	19,737	19,695

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Net loss	$ (14,514)	$ (10,096)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	604	401
Depreciation	2,298	2,353
Debt related amortization expense	2,847	2,844
Intangibles and other amortization expense	64	63
Change in fair value of warrant liability	3	12
Changes in operating assets and liabilities:
Accounts receivable	338	472
Inventories	(2,705)	1,682
Prepaid expenses	(321)	118
Other current assets and other assets	(99)	(1,624)
Accounts payable	1,140	(3,141)
Accrued interest expense and fees, net of payments	4,826	5,243
Other liabilities	675	766
Net cash used in operating activities	(4,844)	(907)
Investing activities:
Capital expenditures	(511)	(400)
Net cash used in investing activities	(511)	(400)
Financing activities:
Proceeds from borrowings	10,833	4,006
Repayments of borrowings	(6,589)	(2,310)
Net cash provided by financing activities	4,244	1,696
Effect of exchange rate changes on cash and cash equivalents	292	(81)
Net cash and cash equivalents increase (decrease) for period	(819)	308
Cash and cash equivalents at beginning of period	1,486	283
Cash and cash equivalents at end of period	667	591
Supplemental disclosures of cash flow information, cash paid:
Interest paid	1,273	542
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 added to TEC promissory note	451	0
Senior debt extension and waiver fees added to debt	4,446	4,940
TEC promissory note fees and fees for Goodland transaction	1,620	0
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	6 Months Ended
	Jun. 30, 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 and its subsidiary Aemetis Advanced Products Keyes, Inc., a Delaware 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 Fuels Goodland, Inc., a Delaware corporation; and, ● Aemetis Advanced Biorefinery Keyes, Inc., a Delaware corporation. Headquartered in Cupertino, California, 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 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 it 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 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, 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 Income (Loss) per Share. The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2017 and 2016: As of June 30, 2017 June 30, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,589 1,953 Debt with conversion feature at $30 per share of common stock 1,188 806 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,910 2,892 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 the research and development facility. 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	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
2. Inventories	Inventory consists of the following: June 30, 2017 December 31, 2016 Raw materials $ 4,189 $ 1,044 Work-in-progress 1,451 1,360 Finished goods 416 837 Total inventories $ 6,056 $ 3,241

3. Property, Plant and Equipmen

3. Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
3. Property, Plant and Equipment	Property, plant and equipment consist of the following: June 30, 2017 December 31, 2016 Land $ 2,740 $ 2,713 Plant and buildings 82,341 81,755 Furniture and fixtures 603 572 Machinery and equipment 4,326 4,308 Construction in progress 539 88 Total gross property, plant & equipment 90,549 89,436 Less accumulated depreciation (25,529 ) (23,066 ) Total net property, plant & equipment $ 65,020 $ 66,370 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, 2017 and 2016, the Company recorded depreciation expense of $1.2 million for each period. For the six months ended June 30, 2017 and 2016, the Company recorded depreciation expense of $2.3 million and $2.4 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 and six months ended June 30, 2017 and 2016.

4. Debt

4. Debt	6 Months Ended
	Jun. 30, 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: June 30, 2017 December 31, 2016 Third Eye Capital term notes $ 6,737 $ 6,577 Third Eye Capital revolving credit facility 30,293 24,927 Third Eye Capital revenue participation term notes 11,311 11,042 Third Eye Capital acquisition term notes 19,525 19,085 Third Eye Capital promissory note 3,669 - Cilion shareholder seller notes payable 5,748 5,674 Subordinated notes 8,200 7,565 EB-5 long term promissory notes 35,651 35,027 Unsecured working capital loans 3,697 1,817 Total debt 124,831 111,714 Less current portion of debt 17,217 11,409 Total long term debt $ 107,614 $ 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 June 30, 2017, the outstanding balance on the January 2017 Note was $2.1 million. On July 10, 2017, the January 2017 Note was paid in full (see Note 9 Subsequent Events 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 outstanding balance, (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. On July 10, 2017, the Goodland transaction was closed. 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, a Promissory Note (the “April 2017 Note”, and together with the Original Third Eye Capital Notes, the “Third Eye Capital Notes”) for $1.5 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 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. In addition, $1 million of this note represents fees payable by Goodland Advanced Fuels, Inc. upon the closing of the Goodland transaction. On July 10, 2017, the April 2017 Note was paid in full (see Note 9 Subsequent Events Terms of Third Eye Capital Notes A. Term Notes B. Revolving Credit Facility C. Revenue Participation Term Note D. Acquisition Term Notes E . January 2017 Note. F . April 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 government grants and guarantees from Aemetis, Inc. The Third Eye Capital Notes 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. *The note maturity date can be extended by the Company to April 2019. 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. By this ability to extend the maturity at the Company’s will, the Third Eye Capital Notes are classified as non-current debt. 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; or (iii) 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 July 1, 2017, the Subordinated Notes were amended to extend the maturity date until the earlier of (i) December 31, 2017; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; or (iii) 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 will evaluate the July 1, 2017 amendment and the refinancing terms of the notes and determine the 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 June 30, 2017, the Company owed, in aggregate, the amount of $8.2 million in principal and interest under the Subordinated Notes. 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 June 30, 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 $34.5 million have been released from the escrow amount to the Company, with $0.5 million remaining in escrow and $1.0 million to be funded to escrow. As of June 30, 2017, $34.5 million in principal and $1.2 million in accrued interest remained outstanding. 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 to refinance indebtedness and capital expenditures. Unsecured working capital loans On April 16, 2017, the Company entered into a similar operating agreement with Gemini Edibles and Fats India Private Limited (“Gemini”). Under this agreement, Gemini agreed to provide the Company with working capital, on an as needed basis, to fund the purchase of feedstock and other raw materials for its Kakinada biodiesel facility. Working capital advances bear interest at the actual bank borrowing rate of Gemini of twelve percent (12%). In return, the Company agreed to pay Gemini an amount equal to 30% of the plant’s monthly net operating profit and recognized these as operational support charges in the financials. In the event that the Company’s biodiesel facility operates at a loss, Gemini owes the Company 30% of the losses as operational support charges. The agreement can be terminated by either party at any time without penalty. Additionally, Gemini received a first priority lien on the assets of the Kakinada biodiesel facility. During the three months ended June 30, 2017, the Company made principal and interest payments to Gemini of approximately $2.8 million. As of June 30, 2017, the Company had $3.7 million outstanding on this raw material purchase 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 June 30, 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 June 30, Debt Repayments 2018 $ 17,217 2019 92,027 2020 5,000 2021 13,248 Total debt 127,492 Discounts (2,661 ) Total debt, net of discounts $ 124,831

5. Stock-Based Compensation

5. Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Stockholders' deficit:
5. Stock Based Compensation	Plan Stock Options 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 include 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 1/12 th 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, 2017, all options are vested and 89 thousand options are outstanding. Inducement Equity Plan Options In March 2016, 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 June 30, 2017, 37 thousand options were outstanding. Common Stock Reserved for Issuance The following is a summary of options granted under the Company 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 11 (11 ) 4.75 Balance as of June 30, 2017 127 2,258 $ 3.62 As of June 30, 2017, there were 1.3 million options vested under all the Company Stock Plans. 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, 2017 and 2016, the Company recorded stock compensation expense in the amount of $195 thousand and $284 thousand, respectively. For the six months ended June 30, 2017 and 2016, the Company recorded stock compensation expense in the amount of $604 thousand and $401 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. Compensation cost is recorded only for vested options. 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 no stock options granted during the three months ended June 30, 2017. As of June 30, 2017, the Company had $1.3 million of total unrecognized compensation expense for employees, which the Company will amortize over a 2.0 years weighted average remaining term.

6. Agreements

6. Agreements	6 Months Ended
	Jun. 30, 2017
Agreements
6. Agreements	Working Capital Arrangement. The J.D. Heiskell sales activity associated with the Purchasing Agreement, Corn Procurement and Working Capital Agreement during the three and six months ended June 30, 2017 and 2016 are as follows: As of and for the three months ended June 30, As of and for the six months ended June 30, 2017 2016 2017 2016 Ethanol sales $ 26,757 $ 24,055 $ 49,301 44,306 Wet distiller's grains sales 5,224 5,629 9,788 10,804 Corn oil sales 852 737 1,650 1,444 Corn/milo purchases 26,338 23,315 49,727 44,668 Accounts receivable 384 374 384 374 Accounts payable 1,719 1,543 1,719 1,543 Ethanol and Wet Distillers Grains Marketing Arrangement. The Company entered into forward purchase contracts for approximately 1.3 million bushels of corn, which is the principal raw material for ethanol production. The delivery of this grain will be expected through September 2017. In addition, the Company has forward sales commitments for approximately 46 thousand tons of wet distillers’ grain. These committed sales will be expected through September 2017. Unrealized gains and losses on forward contracts and commitments, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company’s financial statements, but are subject to a lower of cost or market assessment.

7. Segment Information

7. Segment Information	6 Months Ended
	Jun. 30, 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 research and development lab. As the Company’s technology gains market acceptance, this business segment will initially 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 and six months ended June 30, 2017 and 2016 follows: For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Revenues North America $ 35,465 $ 32,038 $ 65,418 $ 60,090 India 5,299 1,021 6,920 6,295 Total revenues $ 40,764 $ 33,059 $ 72,338 $ 66,385 Cost of goods sold North America $ 34,359 $ 29,624 $ 65,008 $ 55,783 India 4,700 1,491 6,212 6,572 Total cost of goods sold $ 39,059 $ 31,115 $ 71,220 $ 62,355 Gross profit (loss) North America $ 1,106 $ 2,414 $ 410 $ 4,307 India 599 (470 ) 708 (277 ) Total gross profit $ 1,705 $ 1,944 $ 1,118 $ 4,030 North America: During the three and six months ended June 30, 2016, the Company’s revenues from ethanol, WDG, and corn oil were made pursuant to the Corn 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 95% and 94% of the Company’s North America segment revenues for the three and six months ended June 30, 2016, respectively. India During the six months ended June 30, 2017, two biodiesel customers accounted for 54% and 13% and no refined glycerin customers accounting for more than 10% of Company’s consolidated India segment revenues, compared to one biodiesel customer accounted for 52% and no refined glycerin customers accounting for more than 10% of Company’s consolidated India segment revenues during the six months ended June 30, 2016. Total assets by segment consist of the following: As of June 30, December 31, 2017 2016 North America $ 65,615 $ 67,279 India 13,803 10,531 Total Assets $ 79,418 $ 77,810

8. Related Party Transactions

8. Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
8. Related Party Transactions	The Company owes Eric McAfee, the Company’s Chairman and CEO, and McAfee Capital, owned by Eric McAfee, $0.4 million in connection with employment agreements and expense reimbursements previously accrued as salaries expense and accrued liabilities. The balance accrued related to these employment agreements was $0.4 million as of June 30, 2017 and December 31, 2016. For the three months ended June 30, 2017 and 2016, the Company expensed $6 thousand and $19 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the six months ended June 30, 2017 and 2016, the Company expensed $23 thousand and $42 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. The Company previously 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 June 30, 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. The balance of $0.2 million for guarantee fee remained as accrued liability as of June 30, 2017 and December 31, 2016.

9. Subsequent Events

9. Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
9. Subsequent Events	Subordinated Debt Refinancing On July 1, 2017, the Subordinated Notes with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2017; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; or (iii) 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. Accounting of the July 1, 2017 amendments and the refinancing terms of the Notes will be evaluated in accordance with ASC 470-50 Debt – Modification and Extinguishment Goodland Transaction On July 10, 2017, Aemetis, Inc., and its subsidiary Aemetis Advanced Products Keyes, Inc. (“AAPK” and together with the Company, the “Guarantors”) entered into the revolving notes with Goodland Advanced Fuels, Inc. in the amount of $5.6 million, proceeds of which were used for repayment of the January 2017 Note, repayment of the April 2017 Note and working capital funding. The interest on these notes accrues at the rate of 12% per annum. Under the terms of this agreement, the balance of $1.2 million is available to draw. The maturity date is July 10, 2019, which may be extended for up to two additional one-year periods upon prior written notice and upon the satisfaction of certain conditions and the payment of a renewal fee. Additionally, the Company received an option to purchase all of the capital stock of Goodland Advanced Fuels, Inc., for an aggregate purchase price of $0.01 per share. As consideration for the facility, Aemetis, Inc., and Aemetis Advanced Products Keyes, Inc. provided certain limited guaranties for repayment of loans and pledged stock in Aemetis Advanced Products Keyes, Inc. in favor of Third Eye Capital Corporation, as administrative agent and collateral agent for and on behalf of Goodland Advanced Fuels, Inc. Aemetis further provided an option to the owner of Goodland Advanced Fuels, Inc., for the issuance of 100,000 shares of common stock pursuant to full vesting of the shares on January 1, 2018. Research and Development Lab Relocation During July 2017, the research lab at College Park, Maryland was closed and is being relocated to a new location in Minneapolis, Minnesota.

10. Management's Plan

10. Management's Plan	6 Months Ended
	Jun. 30, 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 $0.5 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. ● Draw upon credit facility provided by the Goodland transaction 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)	6 Months Ended
	Jun. 30, 2017
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 and its subsidiary Aemetis Advanced Products Keyes, Inc., a Delaware 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 Fuels Goodland, Inc., a Delaware corporation; and, ● Aemetis Advanced Biorefinery Keyes, Inc., a Delaware corporation. Headquartered in Cupertino, California, 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 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 it 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 and holds a portfolio of patents and related technology licenses for the production of renewable fuels 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, 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 and six months ended June 30, 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	Use of Estimates
Revenue recognition	Revenue Recognition
Cost of Goods Sold	Cost of Goods Sold
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 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 June 30, 2017 and December 31, 2016.
Inventories	Inventories
Property, Plant and Equipment	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 Income (Loss) per Share	Basic and Diluted Net Income (Loss) per Share. The following table shows the number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation as of June 30, 2017 and 2016: As of June 30, 2017 June 30, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,589 1,953 Debt with conversion feature at $30 per share of common stock 1,188 806 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,910 2,892
Comprehensive Loss	Comprehensive Loss. Comprehensive Income
Foreign Currency Translation/Transactions	Foreign Currency Translation/Transactions.
Operating Segments	Operating Segments. The “North America” operating segment includes the Company’s 60 million gallons per year capacity Keyes plant in Keyes, California and the research and development facility. 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	Fair Value of Financial Instruments.
Share-Based Compensation	Share-Based Compensation. Stock Compensation,
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	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)	6 Months Ended
	Jun. 30, 2017
Proceeds from sale of land
Schedule of dilutive securities	As of June 30, 2017 June 30, 2016 Series B preferred (1:10 post split basis) 133 133 Common stock options and warrants 2,589 1,953 Debt with conversion feature at $30 per share of common stock 1,188 806 Total number of potentially dilutive shares excluded from the diluted net loss per share calculation 3,910 2,892

2. Inventories (Tables)

2. Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Schedule of Notes Payable
Schedule of Inventories	June 30, 2017 December 31, 2016 Raw materials $ 4,189 $ 1,044 Work-in-progress 1,451 1,360 Finished goods 416 837 Total inventories $ 6,056 $ 3,241

3. Property, Plant and Equipm19

3. Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Statement of Operations Data
Schedule of Property, plant and equipment	June 30, 2017 December 31, 2016 Land $ 2,740 $ 2,713 Plant and buildings 82,341 81,755 Furniture and fixtures 603 572 Machinery and equipment 4,326 4,308 Construction in progress 539 88 Total gross property, plant & equipment 90,549 89,436 Less accumulated depreciation (25,529 ) (23,066 ) Total net property, plant & equipment $ 65,020 $ 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)	6 Months Ended
	Jun. 30, 2017
Wet distiller's grains sales
Schedule of Notes Payable	June 30, 2017 December 31, 2016 Third Eye Capital term notes $ 6,737 $ 6,577 Third Eye Capital revolving credit facility 30,293 24,927 Third Eye Capital revenue participation term notes 11,311 11,042 Third Eye Capital acquisition term notes 19,525 19,085 Third Eye Capital promissory note 3,669 - Cilion shareholder seller notes payable 5,748 5,674 Subordinated notes 8,200 7,565 EB-5 long term promissory notes 35,651 35,027 Unsecured working capital loans 3,697 1,817 Total debt 124,831 111,714 Less current portion of debt 17,217 11,409 Total long term debt $ 107,614 $ 100,305
Maturities of Long-term Debt	Twelve months ended June 30, Debt Repayments 2018 $ 17,217 2019 92,027 2020 5,000 2021 13,248 Total debt 127,492 Discounts (2,661 ) Total debt, net of discounts $ 124,831

5. Stock-Based Compensation (Ta

5. Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 11 (11 ) 4.75 Balance as of June 30, 2017 127 2,258 $ 3.62

6. Agreements (Tables)

6. Agreements (Tables)	6 Months Ended
	Jun. 30, 2017
Agreements Tables
Schedule of working capital agreement activity	As of and for the three months ended June 30, As of and for the six months ended June 30, 2017 2016 2017 2016 Ethanol sales $ 26,757 $ 24,055 $ 49,301 44,306 Wet distiller's grains sales 5,224 5,629 9,788 10,804 Corn oil sales 852 737 1,650 1,444 Corn/milo purchases 26,338 23,315 49,727 44,668 Accounts receivable 384 374 384 374 Accounts payable 1,719 1,543 1,719 1,543

7. Segment Information (Tables)

7. Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Information Tables
Schedule of segment information	For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Revenues North America $ 35,465 $ 32,038 $ 65,418 $ 60,090 India 5,299 1,021 6,920 6,295 Total revenues $ 40,764 $ 33,059 $ 72,338 $ 66,385 Cost of goods sold North America $ 34,359 $ 29,624 $ 65,008 $ 55,783 India 4,700 1,491 6,212 6,572 Total cost of goods sold $ 39,059 $ 31,115 $ 71,220 $ 62,355 Gross profit (loss) North America $ 1,106 $ 2,414 $ 410 $ 4,307 India 599 (470 ) 708 (277 ) Total gross profit $ 1,705 $ 1,944 $ 1,118 $ 4,030
Schedule of segment assets	As of June 30, December 31, 2017 2016 North America $ 65,615 $ 67,279 India 13,803 10,531 Total Assets $ 79,418 $ 77,810

1. Nature of Activities and S24

1. Nature of Activities and Summary of Significant Accounting Policies (Details) - shares	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Series B preferred (1:10 post split basis)	133	133
Common stock options and warrants	2,589	1,953
Debt with conversion feature at $30 per share of common stock	1,188	806
Total number of potentially dilutive shares excluded from the diluted net loss per share calculation	3,910	2,892

2. Inventories (Details)

2. Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
RepaymentsOfBorrowingsUnderShortTermFacilities
Raw materials	$ 4,189	$ 1,044
Work-in-progress	1,451	1,360
Finished goods	416	837
Total inventory	$ 6,056	$ 3,241

3. Property, Plant and Equipm26

3. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of warrant activity
Land	$ 2,740	$ 2,713
Plant and Buildings	82,341	81,755
Furniture and fixtures	603	572
Machinery and equipment	4,326	4,308
Construction in progress	539	88
Total gross property, plant & equipment	90,549	89,436
Less accumulated depreciation	(25,529)	(23,066)
Total net property, plant & equipment	$ 65,020	$ 66,370

3. Property, Plant and Equipm27

3. Property, Plant and Equipment (Details 1)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure 3.Property Plant And Equipment Details Narrative Abstract
Depreciation expense	$ 1,200	$ 1,200	$ 2,298	$ 2,353

4. Debt (Details)

4. Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Total revenues
Third Eye Capital term notes	$ 6,737	$ 6,577
Third Eye Capital revolving credit facility	30,293	24,927
Third Eye Capital revenue participation term notes	11,311	11,042
Third Eye Capital acquisition term notes	19,525	19,085
Third Eye Capital promissory note	3,669	0
Cilion shareholder Seller note payable	5,748	5,674
Subordinated notes	8,200	7,565
EB-5 long term promissory notes	35,651	35,027
Unsecured working capital loans	3,697	1,817
Total debt	124,831	111,714
Less current portion of debt	17,217	11,409
Total long term debt	$ 107,614	$ 100,305

4. Debt (Details 1)

4. Debt (Details 1) $ in Thousands	Jun. 30, 2017USD ($)
Twelve months ended June 30,
2,018	$ 17,217
2,019	92,027
2,020	5,000
2,021	13,248
Total debt	127,492
Discounts	(2,661)
Total debt, net of discounts	$ 124,831

4. Debt (Details Narrative)

4. Debt (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Third Eye Capital Term Notes
Principal and interest outstanding	$ 6,700
Unamortized discount	300
Third Eye Capital Revolving Credit Facility
Principal and interest outstanding	30,300
Unamortized debt issuance costs	1,100
Third Eye Capital Revenue Participation Term Note
Principal and interest outstanding	11,300
Unamortized discount	500
Third Eye Capital Acquisition Term Notes
Principal and interest outstanding	19,500
Unamortized discount	800
Cilion shareholder Seller notes payable
Principal and interest outstanding	5,700
Subordinated Notes
Principal and interest outstanding	8,200		$ 7,600
EB-5 long-term promissory notes
Principal and interest outstanding	36,000
Outstanding accrued interest	1,500
Unsecured working capital loans
Principal and interest outstanding	0
Principal and interest payments made	2,300	$ 1,000
Unsecured working capital loans - Gemini
Principal and interest outstanding	3,700
Principal and interest payments made	$ 2,800

5. Stock-Based Compensation (De

5. Stock-Based Compensation (Details) - Employee Stock Plan	6 Months Ended
	Jun. 30, 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	11
Shares Available for Grant, Ending	127
Number of Shares Outstanding, Beginning	1,632
Number of Shares Authorized	0
Number of Shares Granted	637
Number of Shares Forfeited/Expired	(11)
Number of Shares Outstanding, Ending	2,258
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	4.75
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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock-based Compensation Details Narrative
Stock compensation expense	$ 195	$ 284	$ 604	$ 401
Unrecognized compensation expense	$ 1,300		$ 1,300

6. Agreements (Details)

6. Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Agreements Details
Ethanol sales	$ 26,757	$ 24,055	$ 49,301	$ 44,306
Wet distiller's grains sales	5,224	5,629	9,788	10,804
Corn oil sales	852	737	1,650	1,444
Corn/Milo purchases	26,338	23,315	49,727	44,668
Accounts receivable	384	374	384	374
Accounts payable	$ 1,719	$ 1,543	$ 1,719	$ 1,543

6. Agreements (Details Narrativ

6. Agreements (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Agreements
Marketing costs	$ 700	$ 1,200	$ 600	$ 1,100

7. Segment Information (Details

7. Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
North America	$ 35,465	$ 32,038	$ 65,418	$ 60,090
India	5,299	1,021	6,920	6,295
Total revenues	40,764	33,059	72,338	66,385
Cost of goods sold
North America	34,359	29,624	65,008	55,783
India	4,700	1,491	6,212	6,572
Total cost of goods sold	39,059	31,115	71,220	62,355
Gross profit (loss)
North America	1,106	2,414	410	4,307
India	599	(470)	708	(277)
Total gross profit	$ 1,705	$ 1,944	$ 1,118	$ 4,030

7. Segment Information (Detai37

7. Segment Information (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Segment Information Details 1
North America	$ 65,615	$ 67,279
India	13,803	10,531
Total Assets	$ 79,418	$ 77,810

8. Related Party Transactions (

8. Related Party Transactions (Details Narrative) - Eric McAfee and McAfee Capital - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related party debt	$ 400		$ 400		$ 400
Related party transaction	$ 6	$ 19	$ 23	$ 42