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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, preference payments, 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.
• 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 are dependent on, and vulnerable to any difficulties of, our principal suppliers and customers.
• 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.
• Aemetis has entered into new markets for alcohol, including the sanitizer market and other industrial alcohol segments. These new markets, along with existing transportation/energy markets Aemetis already serves, are highly volatile and have significant risk associated with current market conditions.
• 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 could be subject to strict restrictions on the movement of cash and the exchange of foreign currencies which could limit our access to cash held in our Indian subsidiary to fund our U.S. operations or otherwise make investments where needed.
• 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 ability to utilize our NOL carryforwards may be limited.
• Non-U.S. stockholders of our common stock, in certain situations, could be subject to U.S. federal income tax on the gain from the sale, exchange or other disposition of our common stock.
• 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.
• We may be subject to liabilities and losses that may not be covered by insurance.
• The widespread outbreak of an illness, pandemic (such as COVID-19) or any other public health crisis may have material adverse effects on our financial position, results of operations or cash flows.
• 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.
• Adverse weather conditions, including as a result of climate change, may adversely affect the availability, quality and price of agricultural commodities and agricultural commodity products, as well as our operations and operating results.
• 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.
• 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.
• 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.
• 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.
• Operational difficulties at our facilities may negatively impact our business.
• Our success depends on our ability to manage the growth of our operations.
• Our business may be subject to natural forces beyond our control.
• U.S. tax law changes could materially affect the tax aspects of our business and the industries in which we 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.