Aemetis (AMTX) 10-Q 13 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Document And Entity Information
Entity Registrant Name	AEMETIS, INC.
Entity Central Index Key	0000738214
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NV
Entity File Number	001-36475
Entity Common Stock, Shares Outstanding		20,795,891
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 3,410	$ 656
Accounts receivable	5,202	2,036
Inventories	7,290	6,518
Prepaid expenses	1,132	794
Other current assets	902	2,572
Total current assets	17,936	12,576
Property, plant and equipment, net	98,525	84,226
Operating lease right-of-use assets	2,906	557
Other assets	2,791	2,537
Total assets	122,158	99,896
Current liabilities:
Accounts payable	16,367	15,968
Current portion of long term debt	7,569	5,792
Short term borrowings	16,096	16,948
Mandatorily redeemable Series B convertible preferred stock	3,200	3,149
Accrued property taxes	4,972	4,095
Accrued contingent litigation fees	6,200	6,200
Current portion of operating lease liability	223	377
Other current liabilities	5,371	5,290
Total current liabilities	59,998	57,819
Long term liabilities:
Senior secured notes and revolving notes	116,477	107,205
EB-5 notes	36,000	36,500
GAFI secured and revolving notes	31,290	29,856
Other long term debt	12,037	6,124
Series A preferred units	24,301	14,077
Operating lease liability	2,730	200
Other long term liabilities	3,524	2,487
Total long term liabilities	226,359	196,449
Stockholders' deficit:
Series B convertible preferred stock, $0.001 par value; 7,235 authorized; 1,323 shares issued and outstanding each period, respectively (aggregate liquidation preference of $3,969 for each period respectively)	1	1
Common stock, $0.001 par value; 40,000 authorized; 20,683 and 20,570 shares issued and outstanding each period, respectively	21	21
Additional paid-in capital	87,580	86,852
Accumulated deficit	(247,281)	(237,421)
Accumulated other comprehensive loss	(4,520)	(3,825)
Total stockholders' deficit	(164,199)	(154,372)
Total liabilities and stockholders' deficit	$ 122,158	$ 99,896

CONSOLIDATED CONDENSED BALANC_2

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Series B preferred stock, par value	$ .001	$ .001
Series B preferred stock, authorized (in thousands)	7,235	7,235
Series B preferred stock, shares issued (in thousands)	1,323	1,323
Series B preferred stock, shares outstanding (in thousands)	1,323	1,323
Aggregate liquidation preference	$ 3,969	$ 3,969
Common stock, par value	$ .001	$ 0.001
Common stock, shares authorized (in thousands)	40,000	40,000
Common stock, shares issued (in thousands)	20,683	20,570
Common stock, shares outstanding (in thousands)	20,683	20,570

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenues	$ 47,824	$ 50,619	$ 87,304	$ 92,507
Cost of goods sold	33,765	47,346	73,678	89,585
Gross profit	14,059	3,273	13,626	2,922
Research and development expenses	21	90	138	123
Selling, general and administrative expenses	4,049	3,945	7,985	8,186
Operating income (loss)	9,989	(762)	5,503	(5,387)
Interest expense
Interest rate expense	5,574	5,190	11,160	10,176
Debt related fees and amortization expense	614	1,396	1,904	2,619
Accretion of Series A preferred units	1,362	471	2,322	920
Loss contingency on litigation	0	6,200	0	6,200
Other (income) expense	303	(89)	240	(712)
Income (loss) before income taxes	2,136	(13,930)	(10,123)	(24,590)
Income tax expense (benefit)	(56)	0	(263)	7
Net income (loss)	2,192	(13,930)	(9,860)	(24,597)
Less: net loss attributable to non-controlling interest	0	(994)	0	(1,932)
Net income (loss) attributable to Aemetis, Inc.	2,192	(12,936)	(9,860)	(22,665)
Other comprehensive loss
Foreign currency translation gain (loss)	(27)	57	(695)	115
Comprehensive income (loss)	$ 2,165	$ (13,873)	$ (10,555)	$ (24,482)
Net loss per common share attributable to Aemetis, Inc.
Basic	$ 0.11	$ (0.63)	$ (0.48)	$ (1.11)
Diluted	$ 0.1	$ (0.63)	$ (0.48)	$ (1.11)
Weighted average shares outstanding
Basic (in thousands)	20,683	20,375	20,668	20,371
Diluted (in thousands)	21,152	20,375	20,668	20,371

CONSOLIDATED CONDENSED STATEM_2

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net loss	$ (9,860)	$ (24,597)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation	635	486
Depreciation	2,262	2,234
Debt related fees and amortization expense	1,904	2,619
Intangibles and other amortization expense	24	24
Accretion of Series A preferred units	2,322	920
Deferred tax benefit	(263)	0
Change in fair value of stock appreciation rights	0	60
Changes in operating assets and liabilities:
Accounts receivable	(3,233)	(2,708)
Inventories	(1,016)	2,042
Prepaid expenses	(339)	351
Other assets	1,570	561
Accounts payable	721	2,704
Accrued interest expense and fees	10,433	8,301
Other liabilities	(302)	5,772
Net cash provided by (used in) operating activities	4,858	(1,231)
Investing activities:
Capital expenditures	(8,621)	(1,038)
Net cash used in investing activities	(8,621)	(1,038)
Financing activities:
Proceeds from borrowings	6,861	15,740
Repayments of borrowings	(7,524)	(14,065)
GAFI renewal fee payment	0	(500)
Payments on finance leases	(702)	0
Proceeds from Series A preferred units financing	7,902	250
Net cash provided by financing activities	6,537	1,425
Effect of exchange rate changes on cash and cash equivalents	(20)	6
Net cash and cash equivalents for period	2,754	(838)
Cash and cash equivalents at beginning of period	656	1,188
Cash and cash equivalents at end of period	3,410	350
Supplemental disclosures of cash flow information, cash paid:
Cash paid for interest, net of capitalized interest of $183 and $147	539	1,699
Income taxes paid	8	0
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	93	67
TEC debt extension, waiver fees, promissory notes fees added to debt	1,076	1,102
Capital expenditures in accounts payable	2,132	1,882
Operating lease liabilities arising from obtaining right-of-use assets	2,632	1,181
Financing lease liabilities arising from obtaining right of use assets	2,881	0
Capital expenditures purchased on financing	$ 5,652	$ 0

CONSOLIDATED CONDENSED STATEM_3

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Statement of Cash Flows [Abstract]
Capitalized interest	$ 183	$ 147

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)	Noncontrolling Interest	Total
Beginning balance, shares (in thousands) at Dec. 31, 2018	1,323	20,345
Beginning balance, amount at Dec. 31, 2018	$ 1	$ 20	$ 85,917	$ (193,204)	$ (3,576)	$ (4,740)	$ 115,582
Stock-based compensation			290				290
Issuance and exercise of warrants, shares (in thousands)		30
Issuance and exercise of warrants, amount		$ 0	67				67
Foreign currency translation (loss) gain					58		58
Net income (loss)				(9,729)		(938)	(10,667)
Ending balance, shares (in thousands) at Mar. 31, 2019	1,323	20,375
Ending balance, amount at Mar. 31, 2019	$ 1	$ 20	86,274	(202,933)	(3,518)	(5,678)	(125,834)
Beginning balance, shares (in thousands) at Dec. 31, 2018	1,323	20,345
Beginning balance, amount at Dec. 31, 2018	$ 1	$ 20	85,917	(193,204)	(3,576)	(4,740)	115,582
Stock-based compensation							486
Net income (loss)							(24,597)
Ending balance, shares (in thousands) at Jun. 30, 2019	1,323	20,375
Ending balance, amount at Jun. 30, 2019	$ 1	$ 20	86,470	(215,869)	(3,461)	(6,672)	(139,511)
Beginning balance, shares (in thousands) at Mar. 31, 2019	1,323	20,375
Beginning balance, amount at Mar. 31, 2019	$ 1	$ 20	86,274	(202,933)	(3,518)	(5,678)	(125,834)
Stock-based compensation			196				196
Foreign currency translation (loss) gain					57		57
Net income (loss)				(12,936)		(994)	(13,930)
Ending balance, shares (in thousands) at Jun. 30, 2019	1,323	20,375
Ending balance, amount at Jun. 30, 2019	$ 1	$ 20	86,470	(215,869)	(3,461)	(6,672)	(139,511)
Beginning balance, shares (in thousands) at Dec. 31, 2019	1,323	20,570
Beginning balance, amount at Dec. 31, 2019	$ 1	$ 21	86,852	(237,421)	(3,825)	0	(154,372)
Stock-based compensation			310				310
Issuance and exercise of warrants, shares (in thousands)		113
Issuance and exercise of warrants, amount		$ 0	93				93
Foreign currency translation (loss) gain					(668)		(668)
Net income (loss)					(12,052)		(12,052)
Ending balance, shares (in thousands) at Mar. 31, 2020	1,323	20,683
Ending balance, amount at Mar. 31, 2020	$ 1	$ 21	87,255	(249,473)	(4,493)	0	(166,689)
Beginning balance, shares (in thousands) at Dec. 31, 2019	1,323	20,570
Beginning balance, amount at Dec. 31, 2019	$ 1	$ 21	86,852	(237,421)	(3,825)	0	(154,372)
Stock-based compensation							635
Net income (loss)							(9,860)
Ending balance, shares (in thousands) at Jun. 30, 2020	1,323	20,683
Ending balance, amount at Jun. 30, 2020	$ 1	$ 21	87,580	(247,281)	(4,520)	0	(164,199)
Beginning balance, shares (in thousands) at Mar. 31, 2020	1,323	20,683
Beginning balance, amount at Mar. 31, 2020	$ 1	$ 21	87,255	(249,473)	(4,493)	0	(166,689)
Stock-based compensation			325				325
Foreign currency translation (loss) gain					(27)		(27)
Net income (loss)				2,192			2,192
Ending balance, shares (in thousands) at Jun. 30, 2020	1,323	20,683
Ending balance, amount at Jun. 30, 2020	$ 1	$ 21	$ 87,580	$ (247,281)	$ (4,520)	$ 0	$ (164,199)

1. Nature of Activities and Sum

1. Nature of Activities and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
1. Nature of Activities and Summary of Significant Accounting Policies	Nature of Activities We also lease a site in Riverbank, California, near the Keyes Plant, where we plan to utilize biomass-to-fuel technology that we have licensed from LanzaTech Technology (“LanzaTech”) and InEnTec Technology (“InEnTec”) to build a cellulosic ethanol production facility (the “Riverbank Cellulosic Ethanol Facility”) capable of converting local California surplus biomass – principally agricultural orchard waste – into ultra-low carbon renewable cellulosic ethanol (the “Riverbank Project”). By producing ultra-low carbon renewable cellulosic ethanol, we expect to capture higher value D3 cellulosic renewable identification numbers (“RINs”) and California Low Carbon Fuel Standard (“LCFS”) credits. In December 2018, we acquired a 5.2-acre parcel of land for the construction of a gas-to-liquid CO2 production facility by Messer. Aemetis sells carbon dioxide (“CO2”) produced at the Keyes Plant (the “CO2 Project”) to Messer for conversion and sale into the food processing, beverage, and technology sectors. The Aemetis portion of the CO2 Project construction was completed in January 2020, and Messer completed construction on their portion in April 2020. We commenced operations in late April 2020, and started recognizing revenue from this project in the second quarter of 2020. In 2018, we formed Aemetis Biogas, LLC (“ABGL”) to construct a cluster of anaerobic biogas digesters at local dairies near the Keyes Plant (the “Biogas Project”) to produce ultra-low carbon renewable natural gas (“RNG”) for use as transportation fuel. Construction of the first two dairy digesters and pipeline in the cluster will be completed in August 2020. ABGL has signed participation agreements or fully executed leases with nearly 20 local dairies near the Keyes Plant to build anerobic digesters to capture methane gas from manure lagoons at such dairies, which would otherwise be released into the atmosphere. We plan to capture methane-rich biogas from multiple dairies and convey the gas via a private underground pipeline to a centralized location at our Keyes Plant, where we will remove impurities in the gas and convert it into RNG for injection into the local utility pipeline operated by PG&E or to a renewable compressed natural gas (“RCNG”) truck loading station that will service local trucking fleets to displace diesel fuel. The biogas can also be used as energy in our Keyes Plant to displace petroleum-based natural gas. We believe the environmental and economic benefits of the Biogas Project are potentially significant due to dairy biogas having a negative carbon intensity (“CI”) under the California LCFS. The biogas produced by ABGL is expected to also receive D3 RINs under the federal Renewable Fuel Standard (“RFS”). On March 18, 2020, in order to address a supply shortage of hand sanitizer during the worldwide COVID-19 pandemic, the US Treasury Tobacco and Alcohol Tax and Trade Bureau (“TTB”) provided emergency waivers allowing fuel ethanol plants to produce high grade alcohol for use in the production of hand sanitizer. Concurrently, during the first week of April 2020, Aemetis applied for and was approved by the TTB as a Distilled Spirits Producer (“DSP”), which would allow the company to produce, in addition to fuel ethanol, high-grade alcohol for sanitizer and other health care and sanitary products, as well as industrial alcohol and potable alcohol for beverage spirits once the temporary waiver period expires. Accordingly, Aemetis began supplying high-grade alcohol for the production of hand sanitizer. Aemetis has also implemented a series of capital projects at the Keyes facility that will ultimately enable the production of US Pharmacopeia (“USP”) grade alcohol for sale into these key consumer and industrial markets. During June 2020, Aemetis renamed Biofuels Marketing, Inc. as Aemetis Health Products, Inc., and began a sales and marketing strategy of blending, bottling and selling hand sanitizer into bulk, retail branded, and white label markets. Basis of Presentation and Consolidation The accompanying consolidated condensed balance sheet as of June 30, 2020, the consolidated condensed statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019, the consolidated condensed statements of cash flows for the six months ended June 30, 2020 and 2019, and the consolidated condensed statements of stockholders’ deficit for the three and six months ended June 30, 2020 and 2019 are unaudited. The consolidated condensed balance sheet as of December 31, 2019 was derived from the 2019 audited consolidated financial statements and notes thereto. The consolidated condensed financial statements in this report should be read in conjunction with the 2019 audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. 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 Company’s management, the unaudited interim consolidated condensed financial statements for the three and six months ended June 30, 2020 and 2019 have been prepared on the same basis as the audited consolidated statements as of December 31, 2019 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, 2020 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 North America: During the first quarter of 2020, Aemetis began selling high grade alcohol for consumer applications directly to customers on the West Coast and Midwest using a variety of payment terms. These agreements and terms were evaluated according to ASC 606 guidance and such revenue is recognized upon satisfaction of the performance obligation by delivery of the product based on the terms of the agreement. Sales of high grade alcohol represented 48% and 28% of revenue for three and six months ended June 30, 2020, respectively. The below table shows our sales in North America by product category: North America (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Ethanol sales $ 36,240 $ 29,808 $ 61,562 $ 56,997 Wet distiller's grains sales 7,466 8,733 15,840 17,336 Other sales 1,517 945 3,693 1,789 $ 45,223 $ 39,486 $ 81,095 $ 76,122 We have elected to adopt the practical expedient that allows for ignoring the significant financing component of a contract when estimating the transaction price when the transfer of promised goods to the customer and customer payment for such goods are expected to be within one year of contract inception. Further, we have elected to adopt the practical expedient in which incremental costs of obtaining a contract are expensed when the amortization period would otherwise be less than one year. We also assessed principal versus agent criteria as we buy our feedstock from our customers and process and sell finished goods to those customers in certain contractual agreements. In North America, we assessed principal versus agent criteria as we buy corn as feedstock in producing ethanol from our working capital partner J.D. Heiskell and sell all WDG and corn oil produced in this process to J.D. Heiskell through A.L. Gilbert. We sold all ethanol we produced to J.D.Heiskell until May 13, 2020. We consider the purchase of corn as a cost of goods sold and the sale of ethanol upon transfer to the common carrier as revenue on the basis that (i) we control and bear the risk of gain or loss on the processing of corn which is purchased at market prices into ethanol and (ii) we have legal title to the goods during the processing time. The pricing for both corn and ethanol is set independently. Revenues from sales of ethanol and its co-products are billed net of the related transportation and marketing charges. Transportation charges are accounted for in cost of goods sold and marketing charges are accounted for in sales, general and administrative expense. Transportation and marketing charges are known within days of the transaction and are recorded at the actual amounts. The Company has elected to adopt an accounting policy under which these charges have been treated as fulfillment activities provided after control has transferred. As a result, these charges are recognized in cost of goods sold and selling, general and administrative expenses, respectively, when revenue is recognized. Revenues are recorded at the gross invoiced amount. Hence, we are the principal in North America sales scenarios where our customer and vendor may be the same. India: The below table shows our sales in India by product category: India (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Biodiesel sales $ 2,149 $ 10,797 $ 4,942 $ 15,144 Refined glycerin sales 370 336 460 1,235 PFAD sales 62 - 774 - Other sales 20 - 33 6 $ 2,601 $ 11,133 $ 6,209 $ 16,385 In India, we also assessed principal versus agent criteria as we buy our feedstock from our customers and process and sell finished goods to those same customers in certain contractual agreements. In those cases, we receive the legal title to feedstock from our customers once it is on our premises. We control the processing and production of biodiesel based on contract terms and specifications. The pricing for both feedstock and biodiesel is set independently. We hold the title and risk to biodiesel according to agreements we enter into in these situations. Hence, we are the principal in India sales scenarios where our customer and vendor may be the same. 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 receivables 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, 2020 and December 31, 2019. Inventories Property, Plant and Equipment The Company evaluates the recoverability of long-lived assets with finite lives in accordance with ASC Subtopic 360-10-35 Property Plant and Equipment—Subsequent Measurements, California Energy Commission Technology Demonstration Grant California Department of Food and Agriculture Dairy Digester Research and Development Grant California Energy Commission Low Carbon Advanced Ethanol Grant Program Basic and Diluted Net Income (Loss) per Share. The following table reconciles the number of shares utilized in the net income (loss) per share calculations for three and six months ended June 30, 2020 and 2019: Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ 2,192 $ (12,936 ) $ (9,860 ) $ (22,665 ) Shares: Weighted average shares outstanding—basic 20,683 20,375 20,668 20,371 Weighted average dilutive share equivalents from preferred shares 132 - - - Weighted average dilutive share equivalents from stock options 337 - - - Weighted average dilutive share equivalents from common warrants - - - - Weighted average shares outstanding—diluted 21,152 20,375 20,668 20,371 Income (loss) per share—basic $ 0.11 $ (0.63 ) $ (0.48 ) $ (1.11 ) Income (loss) per share—diluted $ 0.10 $ (0.63 ) $ (0.48 ) $ (1.11 ) The following table shows the number of potentially dilutive shares excluded from the diluted net loss per share calculation as of June 30, 2020 and 2019: As of June 30, 2020 June 30, 2019 Series B preferred - 132 Common stock options and warrants 2,950 3,994 Debt with conversion feature at $30 per share of common stock 1,271 1,247 SARs conversion if stock issued at $1.02 per share to cover $2.1 million - 2,062 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 4,221 7,435 Comprehensive Loss. Comprehensive Income Foreign Currency Translation/Transactions. Operating Segments. The “North America” operating segment includes the Keyes Plant, the Riverbank Cellulosic Ethanol Facility, the Biogas Project, the Goodland Plant and the research and development facility in Minnesota. The “India” operating segment includes the Company’s 50 million gallon per year capacity Kakinada Plant in India, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius. Fair Value of Financial Instruments. Share-Based Compensation. Stock Compensation Commitments and Contingencies. Contingencies Debt Modification Accounting Debt–Modification and Extinguishments We have evaluated the 1% extension fee for extending the maturity date to April 1, 2021, in accordance with ASC 470-60 Troubled Debt Restructuring. Convertible Instruments Recently Issued Accounting Pronouncements For a complete summary of the Company’s significant accounting policies, please refer to the Company’s audited financial statements and notes thereto for the years ended December 31, 2019 and 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2020. There were no new accounting pronouncements issued applicable to the Company during the three and six months ended June 30, 2020.

2. Inventories

2. Inventories	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
2. Inventories	Inventories consist of the following: As of June 30, 2020 December 31, 2019 Raw materials $ 1,981 $ 2,566 Work-in-progress 1,324 1,455 Finished goods 3,985 2,497 Total inventories $ 7,290 $ 6,518 As of June 30, 2020 and December 31, 2019, the Company recognized a lower of cost or net realizable value impairment of $0.1 million respectively, related to inventory.

3. Property, Plant and Equipmen

3. Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
3. Property, Plant and Equipment	Property, plant and equipment consist of the following: As of June 30, 2020 December 31, 2019 Land $ 4,076 $ 4,104 Plant and buildings 86,559 83,139 Furniture and fixtures 1,095 1,094 Machinery and equipment 4,190 4,252 Construction in progress 22,603 12,571 Property held for development 15,408 15,408 Finance lease right of use assets 2,881 - Total gross property, plant & equipment 136,812 120,568 Less accumulated depreciation (38,287 ) (36,342 ) Total net property, plant & equipment $ 98,525 $ 84,226 Construction in progress contains incurred costs for the Biogas Project, Riverbank Project, and Zebrex equipment installation at the Keyes Plant. In the second quarter of 2020, CO2 Project commenced operations and was placed in service at that time. 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 Plat and Buildings 20-30 Machinery & Equipment 5-7 Furniture & Fixtures 3-5 For the three months ended June 30, 2020 and 2019, the Company recorded depreciation expense of $1.2 million and $1.1 million for each period. For the six months ended June 30, 2020 and 2019, the Company recorded depreciation expense of $2.3 million and $2.2 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 and six months ended June 30, 2020 and 2019.

4. Debt

4. Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
4. Debt	Debt consists of the notes from our senior lender, Third Eye Capital, other working capital lenders and subordinated lenders as follows: June 30, 2020 December 31, 2019 Third Eye Capital term notes $ 7,038 $ 7,024 Third Eye Capital revolving credit facility 71,308 62,869 Third Eye Capital revenue participation term notes 11,821 11,794 Third Eye Capital acquisition term notes 26,310 25,518 Third Eye Capital promissory note 2,231 2,815 Cilion shareholder seller notes payable 6,199 6,124 Subordinated notes 11,988 11,502 Term loan on Equipment purchase 5,652 - EB-5 promissory notes 42,246 41,932 PPP loans 1,134 - Unsecured working capital loans 1,370 2,631 GAFI Term and Revolving loans 32,172 30,216 Total debt 219,469 202,425 Less current portion of debt 23,665 22,740 Total long term debt $ 195,804 $ 179,685 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 (the “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 (the “Revenue Participation Term Notes”); and (iv) senior secured term loans in an aggregate principal amount of $15.0 million (the “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”). On March 27, 2018, Third Eye Capital agreed to Limited Waiver and Amendment No. 14 to the Note Purchase Agreement (“Amendment No. 14”) to: (i) extend the maturity date of the Third Eye Capital Notes by two years to April 1, 2020 in exchange for an amendment fee consisting of 6% (3% per year) of the outstanding note balance in the form of an increase in the fee payable in the event of a redemption of the Third Eye Capital Notes (as defined in the Note Purchase Agreement); (ii) provide that the maturity date may be further extended at our election to April 1, 2021 in exchange for an extension fee of 5%; (iii) provide for an optional waiver of the ratio of note indebtedness covenant until January 1, 2019 with the payment of a waiver fee of $0.25 million; and (iv) remove the redemption fee described in (i) above from the calculation of the ratio of note indebtedness covenant. In addition to the fee discussed in (i), as consideration for such amendment and waiver, the borrowers also agreed to pay Third Eye Capital an amendment and waiver fee of $0.5 million to be added to the outstanding principal balance of the Revolving Credit Facility. Based on the terms of Amendment No. 14, on April 1, 2020, the Company exercised option to extend the maturity to April 1, 2021 for a reduced fee of 1% on the outstanding debt which was added to the outstanding balance of the notes on April 1, 2020. On March 11, 2019, Third Eye Capital agreed to Limited Waiver and Amendment No. 15 to the Note Purchase Agreement (“Amendment No. 15”), to waive the ratio of note indebtedness covenant through December 31, 2019. As a consideration for this amendment, the Company also agreed to pay Third Eye Capital an amendment fee of $1.0 million to be added to the redemption fee which is due upon redemption of the Notes. On November 11, 2019, Third Eye Capital agreed to Limited Waiver and Amendment No. 16 to the Note Purchase Agreement (“Amendment No. 16”), to waive the ratio of note indebtedness covenant for the quarters ended March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020. As a consideration for this amendment, the Company also agreed to pay Third Eye Capital an amendment fee of $0.5 million to be added to the redemption fee which is due upon redemption of the Notes. On August 11, 2020, Third Eye Capital agreed to Limited Waiver and Amendment No. 17 to the Note Purchase Agreement (“Amendment No. 17”) to: (i) provide that the maturity date may be further extended at our election to two 1-year terms to April 1, 2022 in exchange for an extension fee equal to 1% of the Note Indebtedness in respect to each Note, provided that such fee may be added to the outstanding principal balance of each Note on the effective date of each such extension, (ii) provide for a waiver of the ratio of note indebtedness covenant for the quarters ended March 31, 2021 and June 30, 2021. As consideration for such amendment and waivers, the borrowers also agreed to pay Third Eye Capital an amendment and waiver fee of $0.3 million in cash or $0.4 million worth of shares of the Company issued at the 10-day weighted average price. We will evaluate the Amendment No. 17 in accordance with ASC 470-50 Debt – Modification and Extinguishment Based on Amendment No. 16, the ratio of note indebtedness covenant is waived for the quarters ended September 30, 2020 and December 31, 2020. Based on Amendment No. 17 above, the ratio of note indebtedness is waived covenant for the quarters ended March 31, 2021 and June 30, 2021. According to ASC 470-10-45 debt covenant classification guidance, if it is probable that the Company will not be able to cure the default at measurement dates within the next 12 months, the related debt needs to be classified as current. As the Amendment No. 16 and Amendment No. 17 waived the ratio of the note indebtedness covenant over the next four quarters, as such, the notes are classified as long-term debt. On February 27, 2019, a Promissory Note (the “February 2019 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) April 30, 2019. In consideration of the February 2019 Note, $0.1 million of the total proceeds were paid to Third Eye Capital as financing charges. On April 30, 2019, the February 2019 Note was modified to remove the stated maturity date and instead will be due on demand by Third Eye Capital. In third quarter of 2019, the February 2019 Note was modified to include additional borrowings of $0.7 million. In first quarter of 2020, the February 2019 Note was modified to include additional borrowings of $0.6 million. As of June 30, 2020, the outstanding balance of principal and interest on the February 2019 Note was $2.2 million. On April 1, 2020, the Company exercised the option to extend the maturity of Third Eye Capital Notes to April 1, 2021 for a fee of 1% of the outstanding note balance instead of agreed fee of 5% in the Amendment No.14. We have evaluated the reduction in extension fee to 1% in accordance with ASC 470-60 Troubled Debt Restructuring. Troubled Debt Restructuring Terms of Third Eye Capital Notes A. Term Notes B Revolving Credit Facility C. Revenue Participation Term Notes D. Acquisition Term Notes E. Reserve Liquidity Notes 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 terms of the Third Eye Capital Notes allow the lender to accelerate the maturity in the occurrence of any event that could reasonably be expected to have a material adverse effect, such as any change in the business, operations, or financial condition. The terms of the notes allow interest to be capitalized. 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. *The note maturity date can be extended by the Company to April 2022. As a condition to any such extension, the Company would be required to pay a fee of 1% of the carrying value of the debt which can be paid in cash or added to the outstanding debt. As a result of 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 July 1, 2020, the Subordinated Notes were amended to extend the maturity date until the earlier of (i) December 31, 2020; (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 (as defined in the Note and Warrant Purchase Agreements), 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, 2020 amendment and the refinancing terms of the Subordinated Notes in accordance with ASC 470-50 Debt – Modification and Extinguishment At June 30, 2020 and December 31, 2019, the Company had, in aggregate, $12.0 million and $11.5 million in principal and interest outstanding respectively, under the Subordinated Notes. EB-5 promissory notes Advanced BioEnergy, LP arranges investments with foreign investors, who each make loans to the Keyes Plant in increments of $0.5 million. 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 to the date of this filing. As of June 30, 2020, $35.0 million has been released from the escrow amount to the Company, with $0.5 million remaining in escrow and $0.5 million to be funded to escrow. As of June 30, 2020, $35.0 million in principal and $3.1 million in accrued interest was outstanding on the EB-5 Notes sold under the EB-5 Phase I funding. 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 of Aemetis, Inc. and GAFI (the “EB-5 Phase II funding”). On November 21, 2019, the minimum investment was raised from $0.5 million per investor to $0.9 million per investor. The Company entered into a Note Purchase Agreement dated with Advanced BioEnergy II, LP, a California limited partnership authorized as a Regional Center to receive EB-5 Phase II funding investments, for the issuance of up to 100 EB-5 Notes bearing interest at 3%. On May 1, 2020 Supplement No. 3 amended the offering documents and lowered the total eligible new EB-5 Phase II funding investors to 60. Eight EB-5 investors have already funded at the $0.5 million per investor amount, so 52 new EB-5 Phase II funding investors are eligible at the new $0.9 million per investor amount under the current offering. Job creation studies show additional investors may be possible to increase the total offering amount in the future. Each new note will be issued in the principal amount of $0.9 million and due and payable five years from the date of each note, for a total aggregate principal amount of up to $50.8 million. Advanced BioEnergy II, LP arranges investments with foreign investors, who each make loans to the Riverbank Cellulosic Ethanol Facility in increments of $0.9 million after November 21, 2019. The Company has sold an aggregate principal amount of $4.0 million of EB-5 Notes under the EB-5 Phase II funding since 2016 to the date of this filing. As of June 30, 2020, $4.0 million was released from escrow to the Company and $46.8 million remains to be funded to escrow. As of June 30, 2020, $4.1 million in principal and interest was outstanding on the EB-5 Notes under the EB-5 Phase II funding. Working capital loans In November 2008, the Company entered into an operating agreement with Secunderabad Oils Limited (“Secunderabad Oils”). On July 15, 2017, the agreement with Secunderabad Oils was amended to provide the working capital funds for British Petroleum business operations only in the form of inter-corporate deposit for an amount of approximately $2.3 million over a 95 days period at the rate of 14.75% per annum interest rate. The term of the agreement continues until either party terminates it. Secunderabad Oils has a second priority lien on the assets of the Company’s Kakinada Plant after this agreement. On April 15, 2018, the agreement was amended to purchase the raw material for business operations at 12% per annum interest rate. During the six months ended June 30, 2020 and 2019, the Company made principal and interest payments to Secunderabad Oils of approximately $0.6 million and $0.5 million, respectively. As of June 30, 2020 and December 31, 2019, the Company had none and $0.6 million outstanding under this agreement, respectively. GAFI Term loan and Revolving loan. On June 28, 2018, GAFI entered into Amendment No. 1 to the GAFI Term Loan with Third Eye Capital for an additional amount of $1.5 million with a fee of $75 thousand added to the loan from Third Eye Capital at a 10% interest rate. On December 20, 2018, $1.6 million from Amendment No. 1 was repaid. Pursuant to Amendment No. 1, Aemetis, Inc. entered into a Stock Appreciation Rights Agreement to issue 1,050,000 Stock Appreciation Rights (“SARs”) to Third Eye Capital on August 23, 2018, with an exercise date of one year from the issuance date with a call option for the Company at $2.00 per share during the first 11 months of the agreement either to pay $2.1 million in cash or issue common stock worth $2.1 million based on the 30-day weighted average price of the stock on the call date, and a put option for Third Eye Capital at $1.00 per share during the 11th month of the agreement where the Company can redeem the SARs for $1.1 million in cash. In the event that none of the above options is exercised, the SARs will be automatically exercised one year from the issuance date based upon the 30-day weighted average stock price and paid in cash and cash equivalents. On July 22, 2019, Third Eye Capital exercised the put option at $1.00 per share for $1.1 million. The exercise value of the SARs of $1.1 million was added to the GAFI Term Loan and the SARs fair value liability was released. On December 3, 2018, GAFI entered into Amendment No. 2 to the GAFI Term Loan with Third Eye Capital for an additional amount of $3.5 million from Third Eye Capital at a 10% interest rate. GAFI borrowed $1.8 million against this Amendment No. 2 with a $175 thousand fee added to the loan and $0.2 million was withheld from the $1.8 million for interest payments. $1.5 million is available to draw under GAFI Amendment No. 2 for the CO2 Project (“CO2 Term Loan”). Among other requirements, the Company is also required to make the following mandatory repayments of the CO2 Term Loan: (i) on a monthly basis, an amount equal to 75% of any payments received by the Company for CO2 produced by Linde LLC, (ii) an amount equal to 100% of each monthly payment received by the Company for land use by Linde for CO2 plant, (iii) on a monthly basis, an amount equal to the product of: $0.01 multiplied by the number of bushels of corn grain used in the ethanol production at the Keyes Plant. Based on the mandatory payments, an amount of $0.9 million is estimated to be paid in the next 12 months and is classified as current debt as of June 30, 2020. As of June 30, 2020, GAFI had $21.0 million outstanding on the GAFI Term Loan and $11.1 million on the GAFI Revolving Loan respectively. Payroll Protection Program. The PPP Loans are evidenced by promissory notes, dated May 1, 2020 and April 30, 2020 (the “Notes”), between the Company, as Borrower, and Bank of America, N.A., as Lender (the “Lender”). The interest rate on the Note is 1.00% per annum. No payments of principal or interest are due during the six-month period beginning on the funding date (the “Deferral Period”). If the SBA does not confirm forgiveness or only partly confirms forgiveness of the PPP Loans, or Borrower fails to apply for loan forgiveness, the Borrower will be obligated to repay to the Bank the total outstanding balance remaining due under the PPP Loans, including principal and interest and in such case, the Lender will establish the terms for repayment of the Loan in a separate letter to be provided to the Borrower in which the letter will set forth the loan balance, the amount of each monthly payment, the interest rate (not in excess of a fixed rate of one percent (1.00%) per annum), the term of the PPP Loans, and the maturity date, which, if not established by the Lender, shall be two (2) years from the funding date of the PPP Loans. Scheduled debt repayments for the Company’s loan obligations follow: Twelve months ended June 30, Debt Repayments 2021 $ 23,665 2022 171,214 2023 14,935 2024 6,634 2025 2,436 Thereafter 1,403 Total debt 220,287 Debt issuance costs (818 ) Total debt, net of debt issuance costs $ 219,469

5. Commitments and Contingencie

5. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
5. Commitments and Contingencies	Leases We have identified assets as the corporate office, warehouse, monitoring equipment and laboratory facilities over which we have control and obtain economic benefits fully. We classified these identified assets as operating leases after assessing the terms under classification guidance. We have entered into several leases for trailers and carbon units with purchase option at the end of the term. We have concluded that it is reasonably certain that we would exercise the purchase option at the end of the term, hence the leases were classified as finance leases. All of our leases have remaining term of less than a year to 8 years. When discount rates implicit in leases cannot be readily determined, the Company uses the applicable incremental borrowing rate at lease commencement to perform lease classification tests on lease components and measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on weighted average baseline rates commensurate with the Company’s secured borrowing rate over a similar term. At each reporting period when there is a new lease initiated, the rates established for that quarter will be used. The components of lease expense and sublease income was as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating lease cost Operating lease expense $ 183 $ 143 $ 360 $ 324 Short term lease expense 15 12 29 53 Variable lease expense 26 17 60 49 Sub lease income - (51 ) - (68 ) Total operating lease cost $ 224 $ 121 $ 449 $ 358 Finance lease cost Amortization of right-of-use assets $ 61 $ - $ 61 $ - Interest on lease liabilities 18 - 18 - Total finance lease cost $ 79 $ - $ 79 $ - Cash paid for amounts included in the measurement of lease liabilities: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating cash flows used in operating leases $ 138 170 $ 317 $ 332 Operating cash flows used in finance leases 18 - 18 - Financing cash flows used in finance leases 702 - 702 - Supplemental non-cash flow information related to the operating ROU asset and lease liabilities was as follows for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating leases Accretion of the lease liability $ 42 $ 36 $ 59 $ 76 Amortization of right-of-use assets 142 146 302 287 Weighted Average Remaining Lease Term Operating leases 7.3 years Finance leases 3.2 years Weighted Average Discount Rate Operating leases 13.8 % Finance leases 4.6 % Supplemental balance sheet information related to leases was as follows: As of June 30, 2020 December 31, 2019 Operating leases Operating lease right-of-use assets $ 2,906 $ 557 Current portion of operating lease liability 223 377 Long term operating lease liability 2,730 200 Total operating lease liabilities 2,953 577 Finance leases Property and equipment, at cost $ 2,881 $ - Accumulated depreciation (61 ) - Property and equipment, net 2,820 - Other current liability 835 - Long term other liability 1,308 - Total finance lease liabilities 2,143 - Maturities of operating and finance lease liabilities were as follows: Twelve months ended June 30, Operating leases Finance leases 2021 $ 613 $ 914 2022 631 494 2023 565 494 2024 581 414 2025 599 - There after 1,851 - Total lease payments 4,840 2,316 Less imputed interest (1,887 ) (173 ) Total lease liability $ 2,953 $ 2,143 Other Commitments The Company entered into an agreement with Mitsubishi Chemical America, Inc. We purchased certain equipment to save energy used in the Keyes Plant. We also entered into a financing agreement with the seller for $5.7 million for this equipment. Payments pursuant to the financing transaction will commence after the installation date and interest will be charged based on the certain performance metrics after operation of the equipment. The equipment was delivered in March 2020; however the installation has been delayed due to the COVID-19 pandemic. Hence, we recorded the asset in construction in progress fixed assets and related liability in the short and long term debt of $0.5 million and $5.2 million, respectively as of June 30, 2020. Property taxes The Company entered into a payment plan with Stanislaus County for unpaid property taxes for the Keyes Plant site on June 28, 2018 by paying $1.5 million as a first payment. Under the annual payment plan, the Company was set to pay 20% of the outstanding redemption amount, in addition to the current year property taxes and any interest incurred on the unpaid balance to date annually, on or before April 10 starting in 2019. After making one payment, Company defaulted on the payment plan and as of June 30, 2020 and December 31, 2019, the balance in property tax accrual was $5.0 million and $4.1 million, respectively. Stanislaus County agreed not to enforce collection actions and we are now in discussions with Stanislaus County regarding a payment plan. Legal Proceedings On August 31, 2016, the Company filed a lawsuit in Santa Clara County Superior Court against defendant EdenIQ, Inc. (“EdenIQ”). The lawsuit was based on EdenIQ’s wrongful termination of a merger agreement that would have effectuated the merger of EdenIQ into a new entity that would be primarily owned by Aemetis. The lawsuit asserted that EdenIQ had fraudulently induced the Company into assisting EdenIQ to obtain EPA approval for a new technology that the Company would not have done but for the Company’s belief that the merger would occur. The relief sought included EdenIQ’s specific performance of the merger, monetary damages, as well as punitive damages, attorneys’ fees, and costs. In response to the lawsuit, EdenIQ filed a cross-complaint asserting causes of action relating to the Company’s alleged inability to consummate the merger, the Company’s interactions with EdenIQ’s business partners, and the Company’s use of EdenIQ’s name and trademark in association with publicity surrounding the merger. Further, EdenIQ named Third Eye Capital Corporation (“TEC”) as a defendant in a second amended cross-complaint alleging that TEC had failed to disclose that its financial commitment to fund the merger included terms that were not disclosed. Finally, EdenIQ claimed that TEC and the Company concealed material information surrounding the financing of the merger. By way of its cross-complaint, EdenIQ sought monetary damages, punitive damages, injunctive relief, attorneys’ fees and costs. In November 2018, the claims asserted by the Company were dismissed on summary judgment and the Company filed a motion to amend its claims, which remains pending. In December 2018, EdenIQ dismissed all of its claims prior to trial. In February 2019, the Company and EdenIQ each filed motions seeking reimbursement of attorney fees and costs associated with the litigation. On July 24, 2019, the court awarded EdenIQ a portion of the fees and costs it had sought in the amount of approximately $6.2 million. The Company recorded the $6.2 million as loss contingency on litigation during the year ended December 31, 2019. The Company’s ability to amend its claims and present its claims to the court or a jury could materially affect the court’s decision to award EdenIQ its fees and costs. In addition to further legal motions and a potential appeal of the Court’s summary judgment order, the Company plans to appeal the court’s award of EdenIQ’s fees and costs. The Company intends to continue to vigorously pursue its legal claims and defenses against EdenIQ.

6. Biogas LLC - Series A Prefer

6. Biogas LLC - Series A Preferred Financing	6 Months Ended
	Jun. 30, 2020
Stockholders' deficit:
6. Biogas LLC - Series A Preferred Financing	On December 20, 2018, Aemetis Biogas LLC entered into a Series A Preferred Unit Purchase Agreement (the “Preferred Unit Agreement”) by selling Series A Preferred Units to Protair-X Americas, Inc. (the “Purchaser”), with Third Eye Capital acting as an agent for the purchaser (the “Agent”). ABGL plans to construct and collect biogas from dairies located near the Keyes Plant. Biogas is a blend of methane along with CO2 and other impurities that can be captured from dairies, landfills and other sources. After a gas cleanup and compression process, biogas can be converted into bio-methane, which is a direct replacement of petroleum natural gas and can be transported in existing natural gas pipelines. ABGL is authorized to issue 11,000,000 common units, and up to 6,000,000 convertible, redeemable, secured, preferred membership units (the “Series A Preferred Units”). ABGL issued 6,000,000 common units to the Company. ABGL also issued 1,660,000 Series A Preferred Units to the Purchaser for $8,300,000 with the ability to issue an additional 4,340,000 Series A Preferred Units at $5.00 per Unit for a total of up to $30,000,000 in funding. Additionally, 5,000,000 common units are held in reserve as potential conversion units issuable to the Purchaser upon certain triggering events discussed below. The Preferred Unit Agreement includes (i) preference payments of $0.50 per unit on the outstanding Series A Preferred Units commencing on the second anniversary, (ii) conversion rights for up to 1,200,000 common units or up to maximum number of 5,000,000 common units (also at a one Series A Preferred Unit to one common unit basis) if certain triggering events occur, (iv) one board seat of the three available to be elected by Series A Preferred Unit holders, (iii) mandatory redemption value at $15 per unit payable at an amount equal to 75% of free cash flow generated by ABGL, up to $90 million in the aggregate (if all units are issued), (iv) full redemption of the units on the sixth anniversary, (v) minimum cash flow requirements from each digester, and (vi) $0.9 million paid as fees to the Agent from the proceeds. Triggering events occur upon ABGL’s failure to redeem units, comply with covenants, any other defaults or cross defaults, or to perform representations or warranties. Upon a triggering event: (i) the obligation of the Purchaser to purchase additional Series A Preferred Units is terminated, (ii) cash flow payments for redemption payments increases from 75% to 100% of free cash flows, and (iii) total number of common units into which preferred units may be converted increases from 1,200,000 common units to 5,000,000 common units on a one for one basis. As of June 30, 2020, ABGL has not completed construction within one year from the date of initial investment and generated minimum quarterly operating cash flows. Upon the violation of this covenant, cash flows applied for redemption payments increased to 100% from 75% of free cash flows. From inception of the agreement to date, ABGL issued 3,200,000 Series A Preferred Units on first tranche for a value of $16.0 million and also issued 1,003,461 Series A Preferred Units on second tranche for a value of $5.0 million. The Company is accreting up these two tranches to the redemption value of $63.1 million over the estimated future cash flow periods of six years using the effective interest method. In addition, the Company identified freestanding future tranche rights and the accelerated redemption feature related to a change in control provision as derivatives which required bifurcation. These derivative features were assessed to have minimal value as of June 30, 2020 and December 31, 2019 based on the evaluation of the other conditions included in the agreement. During the quarter ended June 30, 2020, ABGL issued 1,323,461 Series A Preferred Units for incremental proceeds of $6.6 million as part of the first and second tranches of the Preferred Unit Agreement. Consistent with the previous issuances, the units are treated as a liability as the conversion option was deemed to be non-substantive. The Company is accreting up to the redemption value of $19.9 million over the estimated future cash flow periods of six years from the original anniversary date using the effective interest method. As of June 30, 2020 and December 31, 2019, the Company recorded Series A Preferred Unit liabilities of $24.3 million and $14.1 million net of unit issuance costs and inclusive of accretive preferences pursuant to this agreement.

7. Stock-Based Compensation

7. Stock-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
7. Stock Based Compensation	2019 Plan On April 29, 2019, the Aemetis 2019 Stock Plan (the “2019 Stock Plan”) was approved by stockholders of the Company. This plan permits the grant of Incentive Stock Options, Non-Statutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and other stock or cash awards as the Administrator of the plan may determine in its discretion. The 2019 Stock Plan’s term is 10 years and supersedes all prior plans. The 2019 Stock Plan authorized the issuance of 200,000 shares of common stock for the 2019 calendar year, in addition to permitting the transfer and grant of any available and unissued or expired options under the prior Amended and Restated 2007 Stock Plan in an amount up to 177,246 options. Employee grants have a general vesting term of 1/12th every three months and are exercisable at any time after vesting subject to continuation of employment. Option grants for directors have immediate vesting with a 10-year term expiration. With the approval of the 2019 Stock Plan, the Zymetis 2006 Stock Plan and the Amended and Restated 2007 Stock Plan (the “Prior Plans,” and together with the 2019 Stock Plan, the “Stock Plans”) are terminated for granting any options under either plan. However, any options granted before the 2019 Stock Plan approved will remain outstanding and can be exercised, and any expired options issued pursuant to the Prior Plans can be granted under the 2019 Stock Plan. On January 9, 2020, 771,500 stock option grants were issued for employees and directors under the 2019 Stock Plan. On March 28, 2020, 1,075,500 stock options grant were approved by Board for employees and directors under the 2019 Stock Plan. On April 3, 2020, 450,000 stock option grants were issued for employees under the 2019 Stock Plan with 10 year term and immediate vesting. On June 4, 2020, 10,000 stock option grant was approved by Board for a director under the 2019 Stock Plan with 10 year term and 2 year vesting. As of June 30, 2020, 6.0 million options are outstanding under the Stock Plans. Inducement Equity Plan Options In March 2016, the Directors of the Company approved an Inducement Equity Plan (“Inducement Equity Plan,” together with the Stock Plans, the “Plans”) authorizing the issuance of 0.1 million non-statutory options to purchase common stock. As of June 30, 2020, no options are outstanding under the Inducement Equity Plan. Common Stock Reserved for Issuance The following is a summary of options granted under the Plans: Shares Available for Grant Number of Shares Outstanding Weighted-Average Exercise Price Balance as of December 31, 2019 147 3,746 $ 1.38 Authorized 2,342 - - Granted (2,307 ) 2,307 0.69 Exercised - - - Forfeited/expired 25 (25 ) - Balance as of June 30, 2020 207 6,028 $ 1.12 As of June 30, 2020, there were 3.9 million options vested under all the 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, 2020 and 2019, the Company recorded stock compensation expense in the amount of $325 thousand and $196 thousand, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded stock compensation expense in the amount of $635 thousand and $486 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 our 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. During the three months ended June 30, 2020 and 2019, 460,000 and 399,000 options were granted respectively. The weighted average fair value calculations for options granted during the three months ended June 30, 2020 and 2019 are based on the following assumptions: Description For the three months ended June 30, 2020 2019 Dividend-yield 0 % 0 % Risk-free interest rate 0.39 % 2.00 % Expected volatility 87.09 % 88.58 % Expected life (years) 5.02 6.81 Market value per share on grant date $ 0.60 $ 0.92 Fair value per share on grant date $ 0.41 $ 0.71 As of June 30, 2020, the Company had $1.2 million of total unrecognized compensation expense for employees, which the Company will amortize over the 2.2 years weighted average remaining term.

8. Agreements

8. Agreements	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
8. Agreements	Working Capital Arrangement. The J.D. Heiskell’s sales activity associated with the Corn Procurement and Working Capital Agreement for the three and six months ended June 30, 2020 and 2019 are as follows: As of and for the three months ended June 30, As of and for the six months ended June 30, 2020 2019 2020 2019 Ethanol sales $ 1,666 29,808 $ 26,049 $ 56,997 Wet distiller's grains sales 7,466 8,733 15,840 17,336 Corn oil sales 1,051 852 1,979 1,652 Corn purchases 22,541 30,719 51,755 59,980 Accounts receivable 55 1,238 55 1,238 Accounts payable 250 3,118 250 3,118 Ethanol and Wet Distillers Grains Marketing Arrangement.

9. Segment Information

9. Segment Information	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
9. Segment Information	Aemetis recognizes two reportable geographic segments: “North America” and “India.” The “North America” operating segment includes the Keyes Plant, the Riverbank Cellulosic Ethanol Facility, the Biogas Project, the Goodland Plant and the research and development facility in Minnesota. The “India” operating segment includes the Kakinada Plant, 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, 2020 and 2019 follows: Three months ended June 30, 2020 Three months ended June 30, 2019 North America India Total Consolidated North America India Total Consolidated Revenues $ 45,223 2,601 47,824 $ 39,486 $ 11,133 $ 50,619 Cost of goods sold 31,284 2,481 33,765 38,483 8,863 47,346 Gross profit 13,939 120 14,059 1,003 2,270 3,273 Other Expenses Research and development expenses 21 - 21 90 - 90 Selling, general and administrative expenses 3,746 303 4,049 3,190 755 3,945 Interest expense 6,172 16 6,188 6,470 116 6,586 Accretion of Series A preferred units 1,362 - 1,362 471 - 471 Loss contingency on litigation - - - 6,200 - 6,200 Other (income) expense 314 (11 ) 303 (74 ) (15 ) (89 ) Income (loss) before income taxes $ 2,324 $ (188 ) $ 2,136 $ (15,344 ) $ 1,414 $ (13,930 ) Capital expenditures $ 6,086 $ 163 $ 6,249 $ 234 $ 206 $ 440 Depreciation 1,012 160 1,172 947 149 1,096 For the six months ended June 30, 2020 For the six months ended June 30, 2019 North America India Total Consolidated North America India Total Consolidated Revenues $ 81,095 $ 6,209 $ 87,304 $ 76,122 $ 16,385 $ 92,507 Cost of goods sold 67,697 5,981 73,678 75,450 14,135 89,585 Gross profit 13,398 228 13,626 672 2,250 2,922 Other Expenses Research and development expenses 138 - 138 123 - 123 Selling, general and administrative expenses 6,866 1,119 7,985 7,256 930 8,186 Interest expense 13,029 35 13,064 12,512 283 12,795 Accretion of Series A preferred units 2,322 - 2,322 920 - 920 Loss contingency on litigation - - - 6,200 - 6,200 Other expense (income) 261 (21 ) 240 37 (749 ) (712 ) Income (loss) before income taxes $ (9,218 ) $ (905 ) $ (10,123 ) $ (26,376 ) $ 1,786 $ (24,590 ) Capital expenditures $ 7,384 1,237 8,621 $ 585 $ 453 $ 1,038 Depreciation 1,945 317 2,262 1,941 293 2,234 North America: During the three and six months ended June 30, 2019, the Company’s revenues from ethanol, WDG, and corn oil were made pursuant to the Corn Procurement and Working Capital Agreement. Sales of ethanol, WDG, and corn oil to J.D. Heiskell accounted for 99.8% and 99.9% of the Company’s North America segment revenues for the three and six months ended June 30, 2019, respectively. India During the six months ended June 30, 2020, four biodiesel customers accounted for 28%, 23%, 11% and 10% of the Company’s consolidated India segment revenues while none of the refined glycerin customers accounted for more than 10% of such revenues, compared to three biodiesel customers accounted for 35%, 16% and 13% of the Company’s consolidated India segment revenues while none of the refined glycerin customers accounted for more than 10% of such revenues during the six months ended June 30, 2019. Total assets by segment consist of the following: As of June 30, December 31, 2020 2019 North America $ 107,307 $ 82,990 India 14,851 16,906 Total Assets $ 122,158 $ 99,896

10. Related Party Transactions

10. Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
10. Related Party Transactions	The Company owes Eric McAfee, the Company’s Chairman and CEO, and McAfee Capital LLC (“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, 2020 and December 31, 2019. For the three months ended June 30, 2020 and 2019, the Company expensed none and $8 thousand, respectively, to reimburse actual expenses incurred by McAfee Capital and related entities. For the six months ended June 30, 2020 and 2019, the Company expensed none and $21 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, 2020, $0.1 million remained as a prepaid expense. As consideration for the reaffirmation of guaranties required by Amendment No. 13 and 14 to the Note Purchase Agreement which the Company entered into with Third Eye Capital on March 1, 2017 and March 27, 2018 respectively, the Company also agreed to pay $0.2 million for each year in consideration to McAfee Capital in exchange for their willingness to provide the guaranties. On May 7, 2020 the Audit Committee of the Company approved a guarantee fee of 0.4% on the outstanding balance of Third Eye Capital Notes annually. Based on this approval, we accrued $0.3 million in guarantee fees as of June 30, 2020. The balance of $597 thousand and $304 thousand for guaranty fee remained as an accrued liability as of June 30, 2020 and December 31, 2019 respectively. The Company owes various members of the Board amounts totaling $1.3 million and $1.2 million as of June 30, 2020 and December 31, 2019, respectively, in connection with board compensation fees, which are included in accounts payable on the balance sheet. For the three months ended June 30, 2020 and 2019, the Company expensed $84 thousand and $97 thousand respectively, in connection with board compensation fees. For the six months ended June 30, 2020 and 2019, the Company expensed $162 thousand and $198 thousand respectively, in connection with board compensation fees.

11. Subsequent Events

11. Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
11. Subsequent Events	Subordinated Debt Refinancing On July 1, 2020, the Subordinated Notes with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2020; (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 (as defined in the Note and Warrant Purchase Agreements), 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 for the July 1, 2020 amendments and the refinancing terms of the Subordinated Notes will be evaluated in accordance with ASC 470-50 Debt – Modification and Extinguishment Third Eye Capital Limited Waiver and Amendment No. 17 On August 11, 2020, Third Eye Capital agreed to Limited Waiver and Amendment No. 17 to the Note Purchase Agreement (“Amendment No. 17”) to: (i) provide that the maturity date may be further extended at our election to two 1-year terms to April 1, 2022

12. Management's Plan

12. Management's Plan	6 Months Ended
	Jun. 30, 2020
Cilion shareholder Seller note payable
12. 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 required to remit substantially all excess cash from operations to its senior lender and is therefore reliant on senior lender to provide additional funding when required. In order to meet its obligations during the next 12 months, the Company will need to either refinance the Company’s debt or receive the continued cooperation of senior lender. This dependence on the senior lender raises substantial doubt about the Company’s ability to continue as a going concern. The Company plans to pursue the following strategies to improve the course of the business: ● Operate the Keyes Plant and continue to improve operational performance at the Plant, including the expansion into new products, new markets for existing products, and adoption of new technologies or process changes that allow for energy efficiency, cost reduction or revenue enhancements. ● Continue to develop and expand the markets for high grade alcohol by extending the value chain to allow for higher margin sales to consumers. ● Execute upon awarded grants at the Keyes Plant that improve operational efficiencies resulting in lower cost, lower carbon demands, and overall margin improvement. ● Operate the existing biogas digesters to capture and monetize RNG as well as continue to build new dairy digesters and extend the existing pipeline in order to capture high value California LCFS credits and RFS RINs. ● Raise the funds necessary to construct and operate the Riverbank Cellulosic Ethanol Facility using the licensed technology from LanzaTech and InEnTec Technology to generate federal and state carbon credits available for ultra-low carbon fuels utilizing lower cost, non-food advanced feedstocks to significantly increase margins. ● Secure higher volumes of shipments of fuels at the India plant by developing the sales channels and expanding the existing domestic markets. ● Continue to locate funding for existing and new business opportunities through a combination of working with our senior lender, restructuring existing loan agreements, selling the current offering for $50.8 million from the EB-5 Phase II funding, or by vendor financing arrangements. Management believes that through the above actions, the Company will have the ability to generate capital liquidity to carry out the business plan for the next 12 months.

1. Nature of Activities and S_2

1. Nature of Activities and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Nature of Activities	Headquartered in Cupertino, California, Aemetis, Inc. (collectively with its subsidiaries on a consolidated basis, “Aemetis,” the “Company,” “we,” “our” or “us”) 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, we own and operate a 65 million gallon per year renewable ethanol facility (“Keyes Plant”) in California’s Central Valley, near Modesto, where we manufacture and produce ethanol, high grade alcohol, wet distillers’ grains (“WDG”), condensed distillers solubles (“CDS”), and distillers’ corn oil (“DCO”). We also own and operate a 50 million gallon per year renewable chemical and advanced fuel production facility (“Kakinada Plant”) on the East Coast of India that produces high quality distilled biodiesel and refined glycerin for customers in India and Europe. We operate a research and development laboratory to develop efficient conversion technologies using waste feedstocks to produce biofuels and biochemicals. Additionally, we own a partially completed plant in Goodland, Kansas (the “Goodland Plant”) through our subsidiary Goodland Advanced Fuels, Inc., (“GAFI”), which was formed to acquire the Goodland Plant. On December 31, 2019 we exercised an option to acquire all capital stock of GAFI for $10 and consolidated assets, liabilities, and equity of GAFI as a wholly-owned subsidiary from December 31, 2019. Prior to December 31, 2019, GAFI activity is shown as non-controlling interest in the consolidated statements of operations. We also lease a site in Riverbank, California, near the Keyes Plant, where we plan to utilize biomass-to-fuel technology that we have licensed from LanzaTech Technology (“LanzaTech”) and InEnTec Technology (“InEnTec”) to build a cellulosic ethanol production facility (the “Riverbank Cellulosic Ethanol Facility”) capable of converting local California surplus biomass – principally agricultural orchard waste – into ultra-low carbon renewable cellulosic ethanol (the “Riverbank Project”). By producing ultra-low carbon renewable cellulosic ethanol, we expect to capture higher value D3 cellulosic renewable identification numbers (“RINs”) and California Low Carbon Fuel Standard (“LCFS”) credits. In December 2018, we acquired a 5.2-acre parcel of land for the construction of a gas-to-liquid CO2 production facility by Messer. Aemetis sells carbon dioxide (“CO2”) produced at the Keyes Plant (the “CO2 Project”) to Messer for conversion and sale into the food processing, beverage, and technology sectors. The Aemetis portion of the CO2 Project construction was completed in January 2020, and Messer completed construction on their portion in April 2020. We commenced operations in late April 2020, and started recognizing revenue from this project in the second quarter of 2020. In 2018, we formed Aemetis Biogas, LLC (“ABGL”) to construct a cluster of anaerobic biogas digesters at local dairies near the Keyes Plant (the “Biogas Project”) to produce ultra-low carbon renewable natural gas (“RNG”) for use as transportation fuel. Construction of the first two dairy digesters and pipeline in the cluster will be completed in August 2020. ABGL has signed participation agreements or fully executed leases with nearly 20 local dairies near the Keyes Plant to build anerobic digesters to capture methane gas from manure lagoons at such dairies, which would otherwise be released into the atmosphere. We plan to capture methane-rich biogas from multiple dairies and convey the gas via a private underground pipeline to a centralized location at our Keyes Plant, where we will remove impurities in the gas and convert it into RNG for injection into the local utility pipeline operated by PG&E or to a renewable compressed natural gas (“RCNG”) truck loading station that will service local trucking fleets to displace diesel fuel. The biogas can also be used as energy in our Keyes Plant to displace petroleum-based natural gas. We believe the environmental and economic benefits of the Biogas Project are potentially significant due to dairy biogas having a negative carbon intensity (“CI”) under the California LCFS. The biogas produced by ABGL is expected to also receive D3 RINs under the federal Renewable Fuel Standard (“RFS”). On March 18, 2020, in order to address a supply shortage of hand sanitizer during the worldwide COVID-19 pandemic, the US Treasury Tobacco and Alcohol Tax and Trade Bureau (“TTB”) provided emergency waivers allowing fuel ethanol plants to produce high grade alcohol for use in the production of hand sanitizer. Concurrently, during the first week of April 2020, Aemetis applied for and was approved by the TTB as a Distilled Spirits Producer (“DSP”), which would allow the company to produce, in addition to fuel ethanol, high-grade alcohol for sanitizer and other health care and sanitary products, as well as industrial alcohol and potable alcohol for beverage spirits once the temporary waiver period expires. Accordingly, Aemetis began supplying high-grade alcohol for the production of hand sanitizer. Aemetis has also implemented a series of capital projects at the Keyes facility that will ultimately enable the production of US Pharmacopeia (“USP”) grade alcohol for sale into these key consumer and industrial markets. During June 2020, Aemetis renamed Biofuels Marketing, Inc. as Aemetis Health Products, Inc., and began a sales and marketing strategy of blending, bottling and selling hand sanitizer into bulk, retail branded, and white label markets.
Basis of Presentation and Consolidation	These consolidated financial statements include the accounts of Aemetis. Additionally, we consolidate all entities in which we have a controlling financial interest either directly or by option to acquire the interest. A controlling financial interest is usually obtained through ownership of a majority of the voting interests. However, an enterprise must consolidate a variable interest entity (“VIE”) if the enterprise is the primary beneficiary of the VIE, even if the enterprise does not own a majority of the voting interests. The primary beneficiary is the party that has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Prior to December 31, 2019, GAFI was consolidated into the financial statements as a VIE. On December 31, 2019, we exercised an option to acquire all capital stock of GAFI for $10 and consolidated assets, liabilities, and equity of GAFI into the accounts of Aemetis from December 31, 2019 forward. The accompanying consolidated condensed balance sheet as of June 30, 2020, the consolidated condensed statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019, the consolidated condensed statements of cash flows for the six months ended June 30, 2020 and 2019, and the consolidated condensed statements of stockholders’ deficit for the three and six months ended June 30, 2020 and 2019 are unaudited. The consolidated condensed balance sheet as of December 31, 2019 was derived from the 2019 audited consolidated financial statements and notes thereto. The consolidated condensed financial statements in this report should be read in conjunction with the 2019 audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. 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 Company’s management, the unaudited interim consolidated condensed financial statements for the three and six months ended June 30, 2020 and 2019 have been prepared on the same basis as the audited consolidated statements as of December 31, 2019 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, 2020 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, 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	We derive revenue primarily from sales of ethanol, high grade alcohol and related co-products in North America, and biodiesel and refined glycerin in India pursuant to supply agreements and purchase order contracts. We assessed the following criteria under the ASC 606 guidance: (i) identify the contracts with customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when the entity satisfies the performance obligations. North America: During the first quarter of 2020, Aemetis began selling high grade alcohol for consumer applications directly to customers on the West Coast and Midwest using a variety of payment terms. These agreements and terms were evaluated according to ASC 606 guidance and such revenue is recognized upon satisfaction of the performance obligation by delivery of the product based on the terms of the agreement. Sales of high grade alcohol represented 48% and 28% of revenue for three and six months ended June 30, 2020, respectively. The below table shows our sales in North America by product category: North America (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Ethanol sales $ 36,240 $ 29,808 $ 61,562 $ 56,997 Wet distiller's grains sales 7,466 8,733 15,840 17,336 Other sales 1,517 945 3,693 1,789 $ 45,223 $ 39,486 $ 81,095 $ 76,122 We have elected to adopt the practical expedient that allows for ignoring the significant financing component of a contract when estimating the transaction price when the transfer of promised goods to the customer and customer payment for such goods are expected to be within one year of contract inception. Further, we have elected to adopt the practical expedient in which incremental costs of obtaining a contract are expensed when the amortization period would otherwise be less than one year. We also assessed principal versus agent criteria as we buy our feedstock from our customers and process and sell finished goods to those customers in certain contractual agreements. In North America, we assessed principal versus agent criteria as we buy corn as feedstock in producing ethanol from our working capital partner J.D. Heiskell and sell all WDG and corn oil produced in this process to J.D. Heiskell through A.L. Gilbert. We sold all ethanol we produced to J.D.Heiskell until May 13, 2020. We consider the purchase of corn as a cost of goods sold and the sale of ethanol upon transfer to the common carrier as revenue on the basis that (i) we control and bear the risk of gain or loss on the processing of corn which is purchased at market prices into ethanol and (ii) we have legal title to the goods during the processing time. The pricing for both corn and ethanol is set independently. Revenues from sales of ethanol and its co-products are billed net of the related transportation and marketing charges. Transportation charges are accounted for in cost of goods sold and marketing charges are accounted for in sales, general and administrative expense. Transportation and marketing charges are known within days of the transaction and are recorded at the actual amounts. The Company has elected to adopt an accounting policy under which these charges have been treated as fulfillment activities provided after control has transferred. As a result, these charges are recognized in cost of goods sold and selling, general and administrative expenses, respectively, when revenue is recognized. Revenues are recorded at the gross invoiced amount. Hence, we are the principal in North America sales scenarios where our customer and vendor may be the same. India: The below table shows our sales in India by product category: India (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Biodiesel sales $ 2,149 $ 10,797 $ 4,942 $ 15,144 Refined glycerin sales 370 336 460 1,235 PFAD sales 62 - 774 - Other sales 20 - 33 6 $ 2,601 $ 11,133 $ 6,209 $ 16,385 In India, we also assessed principal versus agent criteria as we buy our feedstock from our customers and process and sell finished goods to those same customers in certain contractual agreements. In those cases, we receive the legal title to feedstock from our customers once it is on our premises. We control the processing and production of biodiesel based on contract terms and specifications. The pricing for both feedstock and biodiesel is set independently. We hold the title and risk to biodiesel according to agreements we enter into in these situations. Hence, we are the principal in India sales scenarios where our customer and vendor may be the same.
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 and WDG through third-party marketing arrangements generally without requiring collateral and high grade alcohol directly to customers on a variety of terms including advanced payment terms, based on the size and creditworthiness of the customer. DCO is marketed and sold to A.L. Gilbert and other customers under the J.D. Heiskell Purchasing Agreement. The Company sells CDS directly to customers on standard 30 day payment terms. 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. Usually, invoices are due within 30 days on net terms. 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 receivables 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, 2020 and December 31, 2019.
Inventories	Finished goods, raw materials, and work-in-process inventories 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 Keyes Plant, Goodland Plant and Kakinada Plant. The Goodland Plant is partially completed and is not ready for operation and the Riverbank Project and Biogas Project are being constructed and are not operating, hence we are not depreciating these assets yet. The CO2 Project was completed and commenced operations in the second quarter of 2020. Accordingly, any assets under the CO2 Project were capitalized in May 2020 and were depreciated starting May 2020. Otherwise, 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 ASC Subtopic 360-10-35 Property Plant and Equipment—Subsequent Measurements,
California Energy Commission Technology Demonstration Grant	The Company has been awarded and completed the demonstration project associated with the $825 thousand matching grant program from the California Energy Commission (“CEC”) Natural Resources Agency to optimize the effectiveness of technologies to break down biomass to produce cellulosic ethanol. The Company has received all of the awarded grant proceeds as of June 30, 2020. The project focused on the deconstruction and conversion of sugars liberated from California-relevant feedstocks and then converting the sugars to ethanol. The Company receives these funds as reimbursement for actual expenses incurred. Due to the uncertainty associated with the expense approval process under the grant program, the Company recognizes the grant as a reduction of the expenses in the period when approval is received.
California Department of Food and Agriculture Dairy Digester Research and Development Grant	The Company has been awarded $3.2 million in matching grants from the California Department of Food and Agriculture (“CDFA”) Dairy Digester Research and Development program. The CDFA grant reimburses the Company for costs required to permit and construct two of the Company’s biogas capture systems under contract with central California dairies. The Company received $2.6 million as of June 30, 2020 as reimbursement for actual costs incurred. Due to the uncertainty associated with the approval process under the grant program, the Company recognizes the grant as a reduction of the costs in the period when approval is received.
California Energy Commission Low Carbon Advanced Ethanol Grant Program	In May 2019, the Company was awarded the right to receive reimbursements from the CEC in an amount up to $5.0 million (the “CEC Reimbursement Program”) in connection with the Company’s expenditures toward the development of the Riverbank Cellulosic Ethanol Facility. To comply with the guidelines of the CEC Reimbursement Program, the Company must make a minimum of $7.9 million in matching contributions to the Riverbank Project. The Company receives the CEC funds under the CEC Reimbursement Program for actual expenses incurred up to $5.0 million as long as the Company makes the minimum matching contribution. Given that the Company has not made the minimum matching contribution, the grant of $1.36 million received for capital expenditures during the third quarter of 2019 was recorded as other long term liabilities as of June 30, 2020 and December 31, 2019.
Basic and Diluted Net Loss per Share	Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share reflects the dilution of common stock equivalents such as options, convertible preferred stock, debt, and warrants to the extent the impact is dilutive. As the Company incurred net income for the three months ended June 30, 2020, potentially dilutive securities have been included in the diluted net income per share computations and any potentially anti-dilutive shares have been excluded and are shown below. As the Company incurred net losses for the six months ended June 30, 2020 and 2019 and three months ended June 30, 2019, potentially dilutive securities have been excluded from the diluted net loss per share computations as their effect would be anti-dilutive. The following table reconciles the number of shares utilized in the net income (loss) per share calculations for three and six months ended June 30, 2020 and 2019: Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ 2,192 $ (12,936 ) $ (9,860 ) $ (22,665 ) Shares: Weighted average shares outstanding—basic 20,683 20,375 20,668 20,371 Weighted average dilutive share equivalents from preferred shares 132 - - - Weighted average dilutive share equivalents from stock options 337 - - - Weighted average dilutive share equivalents from common warrants - - - - Weighted average shares outstanding—diluted 21,152 20,375 20,668 20,371 Income (loss) per share—basic $ 0.11 $ (0.63 ) $ (0.48 ) $ (1.11 ) Income (loss) per share—diluted $ 0.10 $ (0.63 ) $ (0.48 ) $ (1.11 ) The following table shows the number of potentially dilutive shares excluded from the diluted net loss per share calculation as of June 30, 2020 and 2019: As of June 30, 2020 June 30, 2019 Series B preferred - 132 Common stock options and warrants 2,950 3,994 Debt with conversion feature at $30 per share of common stock 1,271 1,247 SARs conversion if stock issued at $1.02 per share to cover $2.1 million - 2,062 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 4,221 7,435
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 and 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 during the year. Transactional gains and losses from foreign currency transactions are recorded in other (income) loss, net.
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 recognized two reportable geographic segments: “North America” and “India.” The “North America” operating segment includes the Keyes Plant, the Riverbank Cellulosic Ethanol Facility, the Biogas Project, the Goodland Plant and the research and development facility in Minnesota. The “India” operating segment includes the Company’s 50 million gallon per year capacity Kakinada Plant in India, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius.
Fair Value of Financial Instruments	Financial instruments include accounts receivable, accounts payable, accrued liabilities, current and non-current portion of subordinated debt, notes payable, and long-term debt. Due to the unique terms of our notes payable and long-term debt and the financial condition of the Company, the fair value of the debt is not readily determinable. The fair value, determined using level 3 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments.
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 We have evaluated the 1% extension fee for extending the maturity date to April 1, 2021, in accordance with ASC 470-60 Troubled Debt Restructuring.
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	For a complete summary of the Company’s significant accounting policies, please refer to the Company’s audited financial statements and notes thereto for the years ended December 31, 2019 and 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2020. There were no new accounting pronouncements issued applicable to the Company during the three and six months ended June 30, 2020.

1. Nature of Activities and S_3

1. Nature of Activities and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Disaggregation of revenue	North America (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Ethanol sales $ 36,240 $ 29,808 $ 61,562 $ 56,997 Wet distiller's grains sales 7,466 8,733 15,840 17,336 Other sales 1,517 945 3,693 1,789 $ 45,223 $ 39,486 $ 81,095 $ 76,122 India (in thousands) For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Biodiesel sales $ 2,149 $ 10,797 $ 4,942 $ 15,144 Refined glycerin sales 370 336 460 1,235 PFAD sales 62 - 774 - Other sales 20 - 33 6 $ 2,601 $ 11,133 $ 6,209 $ 16,385
Shares utilized in net income (loss) calculation	Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (In thousands, except per share amounts) (In thousands, except per share amounts) Net income (loss) $ 2,192 $ (12,936 ) $ (9,860 ) $ (22,665 ) Shares: Weighted average shares outstanding—basic 20,683 20,375 20,668 20,371 Weighted average dilutive share equivalents from preferred shares 132 - - - Weighted average dilutive share equivalents from stock options 337 - - - Weighted average dilutive share equivalents from common warrants - - - - Weighted average shares outstanding—diluted 21,152 20,375 20,668 20,371 Income (loss) per share—basic $ 0.11 $ (0.63 ) $ (0.48 ) $ (1.11 ) Income (loss) per share—diluted $ 0.10 $ (0.63 ) $ (0.48 ) $ (1.11 )
Schedule of dilutive securities	As of June 30, 2020 June 30, 2019 Series B preferred - 132 Common stock options and warrants 2,950 3,994 Debt with conversion feature at $30 per share of common stock 1,271 1,247 SARs conversion if stock issued at $1.02 per share to cover $2.1 million - 2,062 Total number of potentially dilutive shares excluded from the diluted net income (loss) per share calculation 4,221 7,435

2. Inventories (Tables)

2. Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of inventories	As of June 30, 2020 December 31, 2019 Raw materials $ 1,981 $ 2,566 Work-in-progress 1,324 1,455 Finished goods 3,985 2,497 Total inventories $ 7,290 $ 6,518

3. Property, Plant and Equipm_2

3. Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	As of June 30, 2020 December 31, 2019 Land $ 4,076 $ 4,104 Plant and buildings 86,559 83,139 Furniture and fixtures 1,095 1,094 Machinery and equipment 4,190 4,252 Construction in progress 22,603 12,571 Property held for development 15,408 15,408 Finance lease right of use assets 2,881 - Total gross property, plant & equipment 136,812 120,568 Less accumulated depreciation (38,287 ) (36,342 ) Total net property, plant & equipment $ 98,525 $ 84,226
Depreciation of property, plant, and equipment	Years Plat and Buildings 20-30 Machinery & Equipment 5-7 Furniture & Fixtures 3-5

4. Debt (Tables)

4. Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of debt	June 30, 2020 December 31, 2019 Third Eye Capital term notes $ 7,038 $ 7,024 Third Eye Capital revolving credit facility 71,308 62,869 Third Eye Capital revenue participation term notes 11,821 11,794 Third Eye Capital acquisition term notes 26,310 25,518 Third Eye Capital promissory note 2,231 2,815 Cilion shareholder seller notes payable 6,199 6,124 Subordinated notes 11,988 11,502 Term loan on Equipment purchase 5,652 - EB-5 promissory notes 42,246 41,932 PPP loans 1,134 - Unsecured working capital loans 1,370 2,631 GAFI Term and Revolving loans 32,172 30,216 Total debt 219,469 202,425 Less current portion of debt 23,665 22,740 Total long term debt $ 195,804 $ 179,685
Maturities of long-term debt	Twelve months ended June 30, Debt Repayments 2021 $ 23,665 2022 171,214 2023 14,935 2024 6,634 2025 2,436 Thereafter 1,403 Total debt 220,287 Debt issuance costs (818 ) Total debt, net of debt issuance costs $ 219,469

5. Commitments and Contingenc_2

5. Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of lease expense and sublease income	Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating lease cost Operating lease expense $ 183 $ 143 $ 360 $ 324 Short term lease expense 15 12 29 53 Variable lease expense 26 17 60 49 Sub lease income - (51 ) - (68 ) Total operating lease cost $ 224 $ 121 $ 449 $ 358 Finance lease cost Amortization of right-of-use assets $ 61 $ - $ 61 $ - Interest on lease liabilities 18 - 18 - Total finance lease cost $ 79 $ - $ 79 $ -
Cash paid for amounts included in the measurement of lease liabilities	Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating cash flows used in operating leases $ 138 170 $ 317 $ 332 Operating cash flows used in finance leases 18 - 18 - Financing cash flows used in finance leases 702 - 702 -
Supplemental non-cash flow information related to right-of-use asset and lease liabilities	Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating leases Accretion of the lease liability $ 42 $ 36 $ 59 $ 76 Amortization of right-of-use assets 142 146 302 287 Weighted Average Remaining Lease Term Operating leases 7.3 years Finance leases 3.2 years Weighted Average Discount Rate Operating leases 13.8 % Finance leases 4.6 %
Supplemental balance sheet information	As of June 30, 2020 December 31, 2019 Operating leases Operating lease right-of-use assets $ 2,906 $ 557 Current portion of operating lease liability 223 377 Long term operating lease liability 2,730 200 Total operating lease liabilities 2,953 577 Finance leases Property and equipment, at cost $ 2,881 $ - Accumulated depreciation (61 ) - Property and equipment, net 2,820 - Other current liability 835 - Long term other liability 1,308 - Total finance lease liabilities 2,143 -
Maturities of operating and finance lease liabilities	Twelve months ended June 30, Operating leases Finance leases 2021 $ 613 $ 914 2022 631 494 2023 565 494 2024 581 414 2025 599 - There after 1,851 - Total lease payments 4,840 2,316 Less imputed interest (1,887 ) (173 ) Total lease liability $ 2,953 $ 2,143

7. Stock-Based Compensation (Ta

7. Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
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, 2019 147 3,746 $ 1.38 Authorized 2,342 - - Granted (2,307 ) 2,307 0.69 Exercised - - - Forfeited/expired 25 (25 ) - Balance as of June 30, 2020 207 6,028 $ 1.12
Schedule of weighted average fair value calculations for options	Description For the three months ended June 30, 2020 2019 Dividend-yield 0 % 0 % Risk-free interest rate 0.39 % 2.00 % Expected volatility 87.09 % 88.58 % Expected life (years) 5.02 6.81 Market value per share on grant date $ 0.60 $ 0.92 Fair value per share on grant date $ 0.41 $ 0.71

8. Agreements (Tables)

8. Agreements (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
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, 2020 2019 2020 2019 Ethanol sales $ 1,666 29,808 $ 26,049 $ 56,997 Wet distiller's grains sales 7,466 8,733 15,840 17,336 Corn oil sales 1,051 852 1,979 1,652 Corn purchases 22,541 30,719 51,755 59,980 Accounts receivable 55 1,238 55 1,238 Accounts payable 250 3,118 250 3,118

9. Segment Information (Tables)

9. Segment Information (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of segment information	Three months ended June 30, 2020 Three months ended June 30, 2019 North America India Total Consolidated North America India Total Consolidated Revenues $ 45,223 2,601 47,824 $ 39,486 $ 11,133 $ 50,619 Cost of goods sold 31,284 2,481 33,765 38,483 8,863 47,346 Gross profit 13,939 120 14,059 1,003 2,270 3,273 Other Expenses Research and development expenses 21 - 21 90 - 90 Selling, general and administrative expenses 3,746 303 4,049 3,190 755 3,945 Interest expense 6,172 16 6,188 6,470 116 6,586 Accretion of Series A preferred units 1,362 - 1,362 471 - 471 Loss contingency on litigation - - - 6,200 - 6,200 Other (income) expense 314 (11 ) 303 (74 ) (15 ) (89 ) Income (loss) before income taxes $ 2,324 $ (188 ) $ 2,136 $ (15,344 ) $ 1,414 $ (13,930 ) Capital expenditures $ 6,086 $ 163 $ 6,249 $ 234 $ 206 $ 440 Depreciation 1,012 160 1,172 947 149 1,096 For the six months ended June 30, 2020 For the six months ended June 30, 2019 North America India Total Consolidated North America India Total Consolidated Revenues $ 81,095 $ 6,209 $ 87,304 $ 76,122 $ 16,385 $ 92,507 Cost of goods sold 67,697 5,981 73,678 75,450 14,135 89,585 Gross profit 13,398 228 13,626 672 2,250 2,922 Other Expenses Research and development expenses 138 - 138 123 - 123 Selling, general and administrative expenses 6,866 1,119 7,985 7,256 930 8,186 Interest expense 13,029 35 13,064 12,512 283 12,795 Accretion of Series A preferred units 2,322 - 2,322 920 - 920 Loss contingency on litigation - - - 6,200 - 6,200 Other expense (income) 261 (21 ) 240 37 (749 ) (712 ) Income (loss) before income taxes $ (9,218 ) $ (905 ) $ (10,123 ) $ (26,376 ) $ 1,786 $ (24,590 ) Capital expenditures $ 7,384 1,237 8,621 $ 585 $ 453 $ 1,038 Depreciation 1,945 317 2,262 1,941 293 2,234 As of June 30, December 31, 2020 2019 North America $ 107,307 $ 82,990 India 14,851 16,906 Total Assets $ 122,158 $ 99,896

1. Nature of Activities and S_4

1. Nature of Activities and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Sales	$ 47,824	$ 50,619	$ 87,304	$ 92,507
North America
Sales	45,223	39,486	81,095	76,122
North America | Ethanol sales
Sales	36,240	29,808	61,562	56,997
North America | Wet distiller's grains sales
Sales	7,466	8,733	15,840	17,336
North America | Other sales
Sales	1,517	945	3,693	1,789
India
Sales	2,601	11,133	6,209	16,385
India | Other sales
Sales	20	0	33	6
India | Biodiesel sales
Sales	2,149	10,797	4,942	15,144
India | Refined Glycerin sales
Sales	370	336	460	1,235
India | PFAD sales
Sales	$ 62	$ 0	$ 774	$ 0

1. Nature of Activities and S_5

1. Nature of Activities and Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Accounting Policies [Abstract]
Net income (loss)	$ 2,192	$ (12,936)	$ (9,860)	$ (22,665)
Weighted average shares outstanding - basic	20,683	20,375	20,668	20,371
Weighted average dilutive share equivalents from preferred shares	132	0	0	0
Weighted average dilutive share equivalents from stock options	337	0	0	0
Weighted average dilutive share equivalents from common warrants	0	0	0	0
Weighted average shares outstanding - diluted	21,152	20,375	20,668	20,371
Income (loss) per share - basic	$ 0.11	$ (0.63)	$ (0.48)	$ (1.11)
Income (loss) per share - diluted	$ 0.1	$ (0.63)	$ (0.48)	$ (1.11)

1. Nature of Activities and S_6

1. Nature of Activities and Summary of Significant Accounting Policies (Details 2) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Total number of potentially dilutive shares excluded from the basic and diluted net loss per share calculation (in thousands)	4,221	7,435
Series B preferred (post split basis)
Total number of potentially dilutive shares excluded from the basic and diluted net loss per share calculation (in thousands)	0	132
Common stock options and warrants
Total number of potentially dilutive shares excluded from the basic and diluted net loss per share calculation (in thousands)	2,950	3,994
Debt with conversion feature at $30 per share of common stock
Total number of potentially dilutive shares excluded from the basic and diluted net loss per share calculation (in thousands)	1,271	1,247
SARs conversion if stock issued at $1.02 per share to cover $2.1 million
Total number of potentially dilutive shares excluded from the basic and diluted net loss per share calculation (in thousands)	0	2,062

2. Inventories (Details)

2. Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 1,981	$ 2,566
Work-in-progress	1,324	1,455
Finished goods	3,985	2,497
Total inventories	$ 7,290	$ 6,518

2. Inventories (Details Narrati

2. Inventories (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Lower cost of market impairment	$ 100	$ 100

3. Property, Plant and Equipm_3

3. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Land	$ 4,076	$ 4,104
Plant and buildings	86,559	83,139
Furniture and fixtures	1,095	1,094
Machinery and equipment	4,190	4,252
Construction in progress	22,603	12,571
Property held for development	15,408	15,408
Finance lease right of use assets	2,881	0
Total gross property, plant & equipment	136,812	120,568
Less accumulated depreciation	(38,287)	(36,342)
Total net property, plant & equipment	$ 98,525	$ 84,226

3. Property, Plant and Equipm_4

3. Property, Plant and Equipment (Details 1)	6 Months Ended
	Jun. 30, 2020
Plant and Buildings | Minimum
Depreciation (years)	20 years
Plant and Buildings | Maximum
Depreciation (years)	30 years
Machinery and Equipment | Minimum
Depreciation (years)	5 years
Machinery and Equipment | Maximum
Depreciation (years)	7 years
Furniture and Fixtures | Minimum
Depreciation (years)	3 years
Furniture and Fixtures | Maximum
Depreciation (years)	5 years

3. Property, Plant and Equipm_5

3. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,172	$ 1,096	$ 2,262	$ 2,234

4. Debt (Details)

4. Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Third Eye Capital term notes	$ 7,038	$ 7,024
Third Eye Capital revolving credit facility	71,308	62,869
Third Eye Capital revenue participation term notes	11,821	11,794
Third Eye Capital acquisition term notes	26,310	25,518
Third Eye Capital promissory note	2,231	2,815
Cilion shareholder seller notes payable	6,199	6,124
Subordinated notes	11,988	11,502
Term loan on equipment purchase	5,652	0
EB-5 long term promissory notes	42,246	41,932
PPP loans	1,134	0
Unsecured working capital loans	1,370	2,631
GAFI Term and Revolving loans	32,172	30,216
Total debt	219,469	202,425
Less current portion of debt	23,665	22,740
Total long term debt	$ 195,804	$ 179,685

4. Debt (Details 1)

4. Debt (Details 1) $ in Thousands	Jun. 30, 2020USD ($)
Twelve months ended June 30,
2021	$ 23,665
2022	171,214
2023	14,935
2024	6,634
2025	2,436
Thereafter	1,403
Total debt	220,287
Debt issuance costs	(818)
Total debt, net of debt issuance costs	$ 219,469

4. Debt (Details Narrative)

4. Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
February 2019 Note
Principal and interest outstanding	$ 2,200
Third Eye Capital Term Notes
Principal and interest outstanding	7,000
Third Eye Capital Revolving Credit Facility
Principal and interest outstanding	71,300
Third Eye Capital Revenue Participation Term Note
Principal and interest outstanding	11,800
Third Eye Capital Acquisition Term Notes
Principal and interest outstanding	26,300
Third Eye Capital Reserve Liquidity Notes
Principal and interest outstanding	0
Cilion Shareholder Seller Notes Payable
Principal and interest outstanding	6,200
Subordinated Notes
Principal and interest outstanding	12,000	$ 11,500
EB-5 Phase I Notes
Principal outstanding	35,000
Interest outstanding	3,100
EB-5 Phase II Notes
Principal and interest outstanding	4,100
Unsecured Working Capital Loans
Principal and interest outstanding	1,400	2,000
Secunderabad Oils
Principal and interest outstanding		$ 600
GAFI Term Loan
Principal outstanding	21,000
GAFI Revolving Loan
Principal outstanding	$ 11,100

5. Commitments and Contingenc_3

5. Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operating Lease Cost
Operating lease expense	$ 183	$ 143	$ 360	$ 324
Short term lease expense	15	12	29	53
Variable lease expense	26	17	60	49
Sub lease income	0	(51)	0	(68)
Total operating lease cost	$ 224	$ 121	$ 449	$ 358

5. Commitments and Contingenc_4

5. Commitments and Contingencies (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows used in operating leases	$ 138	$ 170	$ 317	$ 332
Operating cash flows used in finance leases	18	0	18	0
Financing cash flows used in finance leases	$ 702	$ 0	$ 702	$ 0

5. Commitments and Contingenc_5

5. Commitments and Contingencies (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Accretion of the lease liability	$ 42	$ 36	$ 59	$ 76
Amortization of right-of-use assets	$ 142	$ 146	$ 302	$ 287
Weighted Average Remaining Lease Term
Operating leases	7 years 3 months 18 days		7 years 3 months 18 days
Finance leases	3 years 2 months 12 days		3 years 2 months 12 days
Weighted Average Discount Rate
Operating leases	13.80%		13.80%
Finance leases	4.60%		4.60%
Operating leases
Operating lease right-of-use assets	$ 2,906		$ 2,906		$ 557
Current portion of operating lease liability	223		223		377
Long term operating lease liability	2,730		2,730		200
Total operating lease liabilities	2,953		2,953		577
Finance leases
Property and equipment, at cost	2,881		2,881		0
Accumulated depreciation	(61)		(61)		0
Property and equipment, net	2,820		2,820		0
Other current liability	835		835		0
Long term other liability	1,308		1,308		0
Total finance lease liabilities	$ 2,143		$ 2,143		$ 0

5. Commitments and Contingenc_6

5. Commitments and Contingencies (Details 3) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2021	$ 613
2022	631
2023	565
2024	581
2025	599
Thereafter	1,851
Total lease payments	4,840
Less: imputed interest	(1,887)
Total operating lease liability	2,953	$ 577
2021	914
2022	494
2023	494
2024	414
2025	0
Thereafter	0
Total lease payments	2,316
Less: imputed interest	(173)
Total finance lease liability	$ 2,143	$ 0

7. Stock-Based Compensation (De

7. Stock-Based Compensation (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Shares available for grant, beginning (in thousands)			147
Shares available for grant, authorized (in thousands)			2,342
Shares available for grant, granted (in thousands)	460,000	399,000	(2,307)
Shares available for grant, exercised (in thousands)			0
Shares available for grant, forfeited/expired (in thousands)			25
Shares available for grant, ending (in thousands)	207		207
Number of outstanding, beginning (in thousands)			3,746
Number of shares, granted (in thousands)			2,307
Number of shares, forfeited/expired (in thousands)			(25)
Number of outstanding, ending (in thousands)	6,028		6,028
Weighted average exercise price outstanding, beginning			$ 1.38
Weighted average exercise price, granted			.69
Weighted average exercise price outstanding, ending	$ 1.12		$ 1.12

7. Stock-Based Compensation (_2

7. Stock-Based Compensation (Details 1) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Dividend-yield	0.00%	0.00%
Risk-free interest rate	0.39%	2.00%
Expected volatility	87.09%	88.58%
Expected life (years)	5 years 7 days	6 years 9 months 22 days
Market value per share on grant date	$ 0.60	$ 0.92
Weighted average fair value per share of common stock	$ 0.41	$ 0.71

7. Stock-Based Compensation (_3

7. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Options outstanding	6,028				6,028		3,746
Options vested					3,900
Stock compensation expense	$ 325	$ 310	$ 196	$ 290	$ 635	$ 486
Options granted	460,000		399,000		(2,307)
Unrecognized compensation expense	$ 1,200				$ 1,200
Unrecognized compensation expense, recognition period					2 years 2 months 12 days

8. Agreements (Details)

8. Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Ethanol sales	$ 1,666	$ 29,808	$ 26,049	$ 56,997
Wet distiller's grains sales	7,466	8,733	15,840	17,336
Corn oil sales	1,051	852	1,979	1,652
Corn purchases	22,541	30,719	51,755	59,980
Accounts receivable	55	1,238	55	1,238
Accounts payable	$ 250	$ 3,118	$ 250	$ 3,118

8. Agreements (Details Narrativ

8. Agreements (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Marketing costs	$ 500	$ 700	$ 1,100	$ 1,300

9. Segment Information (Details

9. Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 47,824	$ 50,619	$ 87,304	$ 92,507
Cost of goods sold	33,765	47,346	73,678	89,585
Gross profit (loss)	14,059	3,273	13,626	2,922
Other Expenses
Research and development expenses	21	90	138	123
Selling, general and administrative expenses	4,049	3,945	7,985	8,186
Interest expense	6,188	6,586	13,064	12,795
Accretion of Series A preferred units	1,362	471	2,322	920
Loss contingency on litigation	0	(6,200)	0	(6,200)
Other (income) expense	303	(89)	240	(712)
Income (loss) before income taxes	2,136	(13,930)	(10,123)	(24,590)
Capital expenditures	6,249	440	8,621	1,038
Depreciation	1,172	1,096	2,262	2,234
North America
Revenues	45,223	39,486	81,095	76,122
Cost of goods sold	31,284	38,483	67,697	75,450
Gross profit (loss)	13,939	1,003	13,398	672
Other Expenses
Research and development expenses	21	90	138	123
Selling, general and administrative expenses	3,746	3,190	6,866	7,256
Interest expense	6,172	6,470	13,029	12,512
Accretion of Series A preferred units	1,362	471	2,322	920
Loss contingency on litigation	0	6,200	0	6,200
Other (income) expense	314	(74)	261	37
Income (loss) before income taxes	2,324	(15,344)	(9,218)	(26,376)
Capital expenditures	6,086	234	7,384	585
Depreciation	1,012	947	1,945	1,941
India
Revenues	2,601	11,133	6,209	16,385
Cost of goods sold	2,481	8,863	5,981	14,135
Gross profit (loss)	120	2,270	228	2,250
Other Expenses
Research and development expenses	0	0	0	0
Selling, general and administrative expenses	303	755	1,119	930
Interest expense	16	116	35	283
Accretion of Series A preferred units	0	0	0	0
Loss contingency on litigation	0	0	0	0
Other (income) expense	(11)	(15)	(21)	(749)
Income (loss) before income taxes	(188)	1,414	(905)	1,786
Capital expenditures	163	206	1,237	453
Depreciation	$ 160	$ 149	$ 317	$ 293

9. Segment Information (Detai_2

9. Segment Information (Details 1) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets	$ 122,158	$ 99,896
North America
Assets	107,307	82,990
India
Assets	$ 14,851	$ 16,906

10. Related Party Transactions

10. Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Eric McAfee and McAfee Capital
Related party debt	$ 400		$ 400		$ 400
Related party transaction	0	$ 8	0	$ 21
Various Board Members
Related party debt	1,300		1,300		$ 1,200
Related party transaction	$ 84	$ 97	$ 162	$ 198