AMTX Aemetis, Inc.

Risks

• We are currently not profitable and historically, we have incurred significant losses. If we incur continued losses, we may have to curtail our operations, which may prevent us from successfully operating and expanding our business.
• Our indebtedness and interest expense could limit cash flow and adversely affect operations and our ability to make full payment on outstanding debt.
• Our business is dependent on external financing and cash from operations to service debt and provide future growth.
• We may be unable to repay or refinance our Third Eye Capital Notes upon maturity.
• Disruptions in ethanol production infrastructure may adversely affect our business, results of operations and financial condition.
• Our results from operations are primarily dependent on the spread between the feedstock and energy we purchase and the fuel, animal feed and other products we sell.
• The price of ethanol is volatile and subject to large fluctuations, and increased ethanol production may cause a decline in ethanol prices or prevent ethanol prices from rising, either of which could adversely impact our results of operations, cash flows and financial condition.
• We may be unable to execute our business plan.
• We may not be able to recover the costs of our substantial investments in capital improvements and additions, and the actual cost of such improvements and additions may be significantly higher than we anticipate.
• We face competition for our bio-chemical and transportation fuels products from providers of petroleum-based products and from other companies seeking to provide alternatives to these products, many of whom have greater resources and experience than we do, and if we cannot compete effectively against these companies we may not be successful.
• The high concentration of our sales within the ethanol production industry could result in a significant reduction in sales and negatively affect our profitability if demand for ethanol declines.
• Our operations are subject to environmental, health, and safety laws, regulations, and liabilities.
• Our business is affected by greenhouse gas and climate change regulation.
• A change in government policies may cause a decline in the demand for our products.
• Concerns regarding the environmental impact of biofuel production could affect public policy which could impair our ability to operate at a profit and substantially harm our revenues and operating margins.
• We may encounter unanticipated difficulties in converting the Keyes Plant to accommodate alternative feedstocks, new chemicals used in the fermentation and distillation process or new mechanical production equipment.
• We may be subject to liabilities and losses that may not be covered by insurance.
• Our success depends in part on recruiting and retaining key personnel and, if we fail to do so, it may be more difficult for us to execute our business strategy.
• Our operations subject us to risks associated with foreign laws, policies, regulations, and markets.
• We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act.
• A substantial portion of our assets and operations are located in India, and we are subject to regulatory, economic and political uncertainties in India.
• Currency fluctuations between the Indian Rupee and the U.S. dollar could have a material adverse effect on our results of operations.
• We are a holding company and there are significant limitations on our ability to receive distributions from our subsidiaries.
• Our Chief Executive Officer has outside business interests that could require time and attention.
• Our business may be subject to natural forces beyond our control.
• Our ability to utilize our NOL carryforwards may be limited.
• U.S. tax law changes could materially affect the tax aspects of our business and the industries in which we compete.
• We are subject to covenants and other operating restrictions under the terms of our debt, which may restrict our ability to engage in some business transactions.
• Operational difficulties at our facilities may negatively impact our business.
• Our success depends on our ability to manage the growth of our operations.
• Our mergers, acquisitions, partnerships, and joint ventures may not be as beneficial as we anticipate.
• EdenIQ’s attempt to terminate and failure to close the EdenIQ Merger, and litigation pertaining to the EdenIQ Merger, may negatively impact our business and operations.
• Our business may be significantly disrupted upon the occurrence of a catastrophic event or cyberattack.
• We may be unable to protect our intellectual property.
• We may not be able to successfully develop and commercialize our technologies, which may require us to curtail or cease our research and development activities.
• Technological advances and changes in production methods in the biomass-based biofuel industry and renewable chemical industry could render our plants obsolete and adversely affect our ability to compete.
• Future sales and issuances of rights to purchase common stock by us could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to fall.
• Our stock price is highly volatile, which could result in substantial losses for investors purchasing shares of our common stock and in litigation against us.
• We do not intend to pay dividends.
• Our principal shareholders hold a substantial amount of our common stock.
• The conversion of convertible securities and the exercise of outstanding options and warrants to purchase our common stock could substantially dilute your investment and reduce the voting power of your shares, impede our ability to obtain additional financing and cause us to incur additional expenses.