UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended ~~June~~September 30, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to ___________
	Commission file number: 0-52577

(Exact Name of Registrant as Specified in Its Charter)

Delaware		20-3340900
(State or Other Jurisdiction of		(IRS Employer Identification No.)
Incorporation or Organization)

8235 Forsyth Blvd., Suite 400, St Louis, Missouri		63105
(Address of Principal Executive Offices)		(Zip Code)

	(314) 854-8352
	(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FF	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer	☑
Non-accelerated filer ☐	Smaller reporting company	☐
	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of ~~August~~November 9, 2021: 43,763,243

	(Unaudited)					(Unaudited)
	June 30, 2021			December 31, 2020		September 30, 2021			December 31, 2020
Assets
Cash and cash equivalents	$	97,594		$	198,122	$	116,787		$	198,122
Accounts receivable, inclusive of the blenders' tax credit of $12,160 and $8,300 at June 30, 2021 and December 31, 2020, respectively, and net of allowances for bad debt of $50 and $63 at June 30, 2021 and December 31, 2020, respectively		31,333			21,387
Accounts receivable, inclusive of the blenders' tax credit of $12,679 and $8,300 at September 30, 2021 and December 31, 2020, respectively, and net of allowances for bad debt of $55 and $63 at September 30, 2021 and December 31, 2020, respectively							26,473			21,387
Accounts receivable – related parties		21			1,426		82			1,426
Inventory		53,514			33,889		43,694			33,889
Income tax receivable		16,867			17,668		9,773			17,668
Prepaid expenses		1,990			3,967		838			3,967
Prepaid expenses – related parties		12			0		12			0
Marketable securities		46,238			64,404		45,164			64,404
Other current assets		2,294			1,742		1,732			1,742
Total current assets		249,863			342,605		244,555			342,605
Property, plant and equipment, net		86,852			91,544		84,343			91,544
Intangible assets		-			1,408		-			1,408
Other noncurrent assets		5,705			5,747		5,803			5,747
Total noncurrent assets		92,557			98,699		90,146			98,699
Total Assets	$	342,420		$	441,304	$	334,701	��	$	441,304
Liabilities and Stockholders’ Equity
Accounts payable, inclusive of the blenders' tax credit rebates due customers of $890 and $1,116 at June 30, 2021 and December 31, 2020 respectively	$	35,578		$	12,453
Accounts payable, inclusive of the blenders' tax credit rebates due customers of $890 and $1,116 at September 30, 2021 and December 31, 2020, respectively						$	25,864		$	12,453
Accounts payable – related parties		8,943			984		8,629			984
Deferred revenue – short-term		5,390			3,976		6,265			3,976
Dividends payable		5,248			10,498		2,622			10,498
Accrued expenses and other current liabilities		5,218			5,077		4,824			5,077
Total current liabilities		60,377			32,988		48,204			32,988
Deferred revenue – long-term		19,129			21,861		17,920			21,861
Noncurrent deferred income tax liability		3,451			12,332		128			12,332
Other noncurrent liabilities		2,049			2,240		1,886			2,240
Total noncurrent liabilities		24,629			36,433		19,934			36,433
Total liabilities		85,006			69,421		68,138			69,421
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding		0			0
Common stock, $0.0001 par value, 75,000,000 shares authorized, 43,763,243 and 43,743,243 issued and outstanding at June 30, 2021 and December 31, 2020 respectively		4			4
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding							0			0
Common stock, $0.0001 par value, 75,000,000 shares authorized, 43,763,243 and 43,743,243 issued and outstanding at September 30, 2021 and December 31, 2020, respectively							4			4
Accumulated other comprehensive income		208			208		155			208
Additional paid in capital		282,446			282,215		282,446			282,215
Retained (deficit) earnings		(25,244	)		89,456		(16,042	)		89,456
Total stockholders’ equity		257,414			371,883		266,563			371,883
Total Liabilities and Stockholders’ Equity	$	342,420		$	441,304	$	334,701		$	441,304

The accompanying notes are an integral part of these consolidated financial statements.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020			2021			2020			2021			2020
Revenue	$	73,813		$	47,310		$	114,971		$	99,682		$	98,490		$	53,306		$	213,461		$	152,988
Revenue – related parties		305			112			663			822			192			832			855			1,654
Cost of goods sold		69,760			43,469			111,138			76,250			85,895			44,129			197,033			120,379
Cost of goods sold – related parties		2,727			1,342			11,937			3,557			2,889			1,508			14,826			5,065
Distribution		1,633			1,657			3,242			3,297			1,666			2,007			4,908			5,304
Distribution – related parties		41			43			96			90			40			48			136			138
Gross (loss) profit		(43	)		911			(10,779	)		17,310
Gross profit (loss)														8,192			6,446			(2,587	)		23,756
Selling, general, and administrative expenses
Compensation expense		523			724			1,051			1,579			571			769			1,622			2,348
Other expense		469			403			1,322			985			529			927			1,851			1,912
Related party expense		170			155			337			303			136			155			473			458
Research and development expenses		798			768			1,572			1,603			814			791			2,386			2,394
Total operating expenses		1,960			2,050			4,282			4,470			2,050			2,642			6,332			7,112
(Loss) income from operations		(2,003)			(1,139	)		(15,061)			12,840
Income (loss) from operations														6,142			3,804			(8,919	)		16,644
Interest and dividend income		790			1,519			1,795			3,486			654			1,076			2,449			4,562
Interest expense		(32	)		(31	)		(64	)		(87	)		(32	)		(32	)		(96	)		(119	)
Gain (loss) on marketable securities		1,612			1,573			537			(8,486	)
(Loss) gain on marketable securities														(729	)		1,213			(192	)		(7,273	)
Other (expense) income		(1,355)			8,348			(1,355	)		8,348			(14	)		(1	)		(1,369	)		8,347
Other income		1,015			11,409			913			3,261
(Loss) income before taxes		(988	)		10,270			(14,148	)		16,101
Other (expense) income														(121	)		2,256			792			5,517
Income (loss) before taxes														6,021			6,060			(8,127	)		22,161
Income tax benefit		(4,469	)		(4,889	)		(8,856	)		(18,101	)		(3,181	)		(830	)		(12,037	)		(18,931	)
Net income (loss)	$	3,481		$	15,159		$	(5,292	)	$	34,202
Net income													$	9,202		$	6,890		$	3,910		$	41,092

Earnings (loss) per common share
Earnings per common share
Basic	$	0.08		$	0.35		$	(0.12	)	$	0.78		$	0.21		$	0.16		$	0.09		$	0.94
Diluted	$	0.08		$	0.35		$	(0.12	)	$	0.78		$	0.21		$	0.16		$	0.09		$	0.94
Weighted average shares outstanding
Basic		43,754,232			43,743,243			43,748,768			43,743,243			43,763,243			43,743,243			43,753,646			43,743,243
Diluted		43,754,422			43,743,740			43,748,768			43,743,491			43,763,243			43,745,339			43,753,709			43,744,107

Comprehensive income (loss)
Net income (loss)	$	3,481		$	15,159		$	(5,292	)	$	34,202
Other comprehensive income (loss) from unrealized net gains (losses) on available-for-sale debt securities		60			190			0			(207	)
Comprehensive income
Net income													$	9,202		$	6,890		$	3,910		$	41,092
Other comprehensive loss from unrealized net losses on available-for-sale debt securities														(67	)		(8	)		(67	)		(215	)
Income tax effect		(16	)		(40	)		0			44			14			1			14			45
Total other comprehensive income (loss), net of tax		44			150			0			(163	)
Comprehensive income (loss)	$	3,525		$	15,309		$	(5,292	)	$	34,039
Total other comprehensive loss, net of tax														(53	)		(7	)		(53	)		(170	)
Comprehensive income													$	9,149		$	6,883		$	3,857		$	40,922

The accompanying notes are an integral part of these consolidated financial statements.

	For the Six Months Ended June 30, 2020															For the Nine Months Ended September 30, 2020
					Accumulated															Accumulated
					Other			Additional					Total							Other			Additional					Total
	Common Stock				Comprehensive			Paid-in		Retained			Stockholders’			Common Stock				Comprehensive			Paid-in		Retained			Stockholders’
	Shares		Amount		Income (Loss)			Capital		Earnings			Equity			Shares		Amount		Income (Loss)			Capital		Earnings			Equity
Balance - December 31, 2019		43,743,243	$	4	$	296		$	282,166	$	184,632		$	467,098			43,743,243	$	4	$	296		$	282,166	$	184,632		$	467,098
Prior period adjustment: change in accounting principle		-		0		0			0		(12	)		(12	)		-		0		0			0		(12	)		(12	)
Balance – January 1, 2020, As adjusted		43,743,243	$	4	$	296		$	282,166	$	184,620		$	467,086			43,743,243	$	4	$	296		$	282,166	$	184,620		$	467,086
Cash dividends declared, $3.00 per share		-		0		0			0		(131,230	)		(131,230	)
Cash dividends declared, $3.00 per share																	-		0		0			0		(131,230	)		(131,230	)
Stock based compensation		0		0		0			49		0			49			-		0		0			49		0			49
Other comprehensive loss		-		0		(313	)		0		0			(313	)		-		0		(313	)		0		0			(313	)
Net income		-		0		0			0		19,043			19,043			-		0		0			0		19,043			19,043
Balance - March 31, 2020		43,743,243	$	4	$	(17	)	$	282,215	$	72,433		$	354,635			43,743,243	$	4	$	(17	)	$	282,215	$	72,433		$	354,635
Other comprehensive income		-		0		150			0		0			150			-		0		150			0		0			150
Net income		-		0		0			0		15,159			15,159			-		0		0			0		15,159			15,159
Balance - June 30, 2020		43,743,243	$	4	$	133		$	282,215	$	87,592		$	369,944			43,743,243	$	4	$	133		$	282,215	$	87,592		$	369,944
Other comprehensive loss																	-		0		(7	)		0		0			(7	)
Net income																	-		0		0			0		6,890			6,890
Balance - September 30, 2020																	43,743,243	$	4	$	126		$	282,215	$	94,482		$	376,827

The accompanying notes are an integral part of these consolidated financial statements.

	Six Months Ended June 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Cash flows from operating activities
Net (loss) income	$	(5,292	)	$	34,202
Net income							$	3,910		$	41,092
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		5,231			5,862			7,887			8,554
Amortization of deferred financing costs		47			60			72			84
Benefit for deferred income taxes		(8,881)			699
Benefit from deferred income taxes								(12,190	)		(951	)
Change in fair value of equity securities		222			7,405			1,027			5,445
Change in fair value of derivative instruments		1,136			198			2,147			(757	)
(Gain) loss on the sale of investments		(758	)		1,080			(835	)		1,828
Stock based compensation		0			49			0			49
Loss on disposal of property and equipment		0			2
Loss (gain) on disposal of property and equipment								11			(51	)
Impairment of intangible asset		1,315			0			1,315			0
Noncash interest expense		16			27			24			35
Changes in operating assets and liabilities:
Accounts receivable		(9,946	)		81,029			(5,086	)		73,041
Accounts receivable – related parties		1,405			4,290			1,344			3,218
Inventory		(19,625)			(4,610	)		(9,805	)		8,486
Income tax receivable		801			(19,380	)		7,895			(14,379	)
Prepaid expenses		1,977			782			3,129			1,349
Prepaid expenses – related parties		(12	)		0
Prepaid expenses - related parties								(12	)		0
Other assets		635			350			522			483
Accounts payable		23,074			(29,702	)		13,379			(51,711	)
Accounts payable – related parties		7,959			220			7,645			(341	)
Accrued expenses and other current liabilities		7			2,572			(387	)		2,295
Accrued expenses and other current liabilities – related parties		0			(64	)		0			(64	)
Deferred revenue		(1,318	)		(659	)		(1,652	)		(793	)
Other noncurrent liabilities		(342	)		(211	)		(513	)		(336	)
Net cash (used in) provided by operating activities		(2,349	)		84,201
Net cash provided by operating activities								19,827			76,576
Cash flows from investing activities
Collateralization of derivative instruments		(2,060	)		(2,877	)		(2,518	)		801
Purchase of marketable securities		(19,170	)		(2,359	)		(21,671	)		(5,073	)
Proceeds from the sale of marketable securities		37,873			5,192			40,652			7,729
Proceeds from the sale of property and equipment		0			50			0			104
Proceeds from the sale of intangible asset		93			0			93			0
Capital expenditures		(488	)		(2,759	)		(665	)		(3,717	)
Net cash from (used in) investing activities		16,248			(2,753	)		15,891			(156	)
Cash flows from financing activities
Loan proceeds		0			8,180			0			8,180
Payment on loan		0			(8,180	)		0			(8,180	)
Deferred financing costs		0			(477	)		0			(477	)
Proceeds from the issuance of stock		231			0			231			0
Payment of dividends		(114,658	)		(136,479	)		(117,284	)		(139,103	)
Net cash used in financing activities		(114,427	)		(136,956	)		(117,053	)		(139,580	)
Net change in cash and cash equivalents		(100,528	)		(55,508	)		(81,335	)		(63,160	)
Cash and cash equivalents at beginning of period		198,122			243,331			198,122			243,331
Cash and cash equivalents at end of period	$	97,594		$	187,823		$	116,787		$	180,171

Cash paid for interest	$	43		$	1		$	43		$	2
Cash paid for income taxes	$	79		$	639		$	83		$	660
Noncash investing and financing activities:
Noncash capital expenditures	$	51		$	94		$	32		$	98
Noncash operating leases	$	269		$	0		$	269		$	442

The accompanying notes are an integral part of these consolidated financial statements.

Notes to Consolidated Financial Statements of FutureFuel Corp.

FutureFuel Corp. (“FutureFuel” or “the Company”), through its wholly-owned subsidiary, FutureFuel Chemical Company (“FutureFuel Chemical”), owns and operates a chemical production facility located on approximately 2,200 acres of land six miles southeast of Batesville in north central Arkansas fronting the White River (the “Batesville Plant”). FutureFuel Chemical manufactures diversified chemical products, biobased products composed of biofuels, and biobased specialty chemical products. FutureFuel Chemical’s operations are reported in 2 segments: chemicals and biofuels.

The chemical segment manufactures a diversified portfolio of chemical products that are sold to third party customers. The majority of the revenues from the chemical segment are derived from the custom manufacturing of specialty chemicals for specific customers.

The biofuels segment primarily produces and sells biodiesel. FutureFuel Chemical also sells petrodiesel in blends with the Company’s biodiesel and, from time to time, with no biodiesel added. FutureFuel Chemical is also a shipper of petroleum-based products on a common carrier pipeline and buys and sells petroleum products to maintain an active shipper status on this pipeline. In April 2021, FutureFuel sold a portion of its historical line space. See Note 8 for additional information.

The unaudited consolidated financial statements have been prepared by FutureFuel in accordance and consistent with the accounting policies stated in FutureFuel’s 2020 audited consolidated financial statements and should be read in conjunction with those financial statements.

~~In the opinion of FutureFuel, all~~All normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements. The unaudited consolidated financial statements have been prepared in compliance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements, and do include amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of FutureFuel and its direct and indirect wholly owned subsidiaries; namely, FutureFuel Chemical Company; FFC Grain, L.L.C.; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C. Intercompany transactions and balances have been eliminated in consolidation.

Reinstatement of the Biodiesel Blenders’ Tax Credit and Small Agri-Biodiesel Producer Tax Credit

The biodiesel Blenders’ Tax Credit (“BTC”) provides a one dollar per gallon tax credit to the blender of biomass-based diesel with at least 0.1% petroleum-based diesel fuel.

The Further Consolidated Appropriations Act of 2020 was passed by Congress and signed into law on December 20, 2019, retroactively reinstating the BTC for 2018 and 2019 and extending it through December 31, 2022. As this act was passed into law in 2019, the Company recognized its impact in the last quarter of 2019 for both periods (2018 and 2019) within the Company’s 2019 financial results. The Company records the credit as a reduction to cost of goods sold.

As the law from which the BTC mentioned above was reinstated, small agri-biodiesel producers with production capacity not in excess of 60 million gallons were eligible for an additional tax credit of $0.10 per gallon on the first 15 million gallons of agri-biodiesel sold (the “Small Agri-biodiesel Producer Tax Credit”). The Company was eligible for this credit and recognized its benefit in the three months ended December 31, 2019 for both periods (2018 and 2019) as part of the tax provision.

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), was enacted on March 27, 2020, to encourage eligible employers to retain employees on their payroll. FutureFuel did not qualify for this credit, however, the Consolidated Appropriations Act, effective January 1, 2021 broadened the eligibility of the Employee Retention TaxCredit. FutureFuel is continuing to monitor whether it would qualify for this credit.

Notes to Consolidated Financial Statements of FutureFuel Corp.

FutureFuel recognizes revenue when performance obligations of the customer contract are satisfied. FutureFuel sells to customers through master sales agreements or standalone purchase orders. The majority of FutureFuel's terms of sale have a single performance obligation to transfer products. Accordingly, FutureFuel recognizes revenue when control has been transferred to the customer, generally at the time of shipment or delivery of products. For certain contracts, this occurs upon delivery of the material to a FutureFuel storage location, ready for customer pickup and separated from other FutureFuel inventory. Revenue is measured as the amount of consideration FutureFuel expects to receive in exchange for transferring products and is generally based upon a negotiated price. FutureFuel sells its products directly to customers generally under agreements with payment terms of 30 to 75 days for chemical segment customers and 2 to 10 days for biofuels segment customers.

Certain of FutureFuel custom chemical contracts within the chemical segment contain a material right as defined by ASU 2014-09, Revenue from Contracts with Customers ("Topic 606"), from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers. Each contract also has a performance obligation to transfer products with 30-day payment terms. FutureFuel recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pickup. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with Topic 606. FutureFuel applies the renewal option approach in allocating the transaction price to these material rights and transfer of product. As a basis for allocating the transaction price to the material right and transfer of product, FutureFuel estimates the expected life of the product, the expected contractual volumes to be sold over that life, and the most likely expected sales price. Each estimate is updated quarterly on a prospective basis.

Contract assets consist of unbilled amounts typically resulting from revenue recognized through bill-and-hold arrangements. The contract assets at ~~June~~September 30, 2021 and December 31, 2020 consist of unbilled revenue from one customer and are recorded as accounts receivable in the consolidated balance sheets. Contract liabilities consist of advance payments related to material rights recorded as deferred revenue in the consolidated balance sheets. Increases to contract liabilities from cash received for a performance obligation of chemical segment plant expansions were ~~$320~~$178 and ~~$1,051~~$95 and ~~$529~~$707 and ~~$3,358~~$3,453 for the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, respectively. Contract liabilities are reduced as the Company transfers product to the customer under the renewal option approach. Revenue recognized in the chemical segment from the contract liability reductions were ~~$1,014~~$456 and ~~$2,579~~$174 for the three months, and ~~$1,737~~$2,192 and ~~$3,906~~$4,080 for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, respectively. These contract asset and liability balances are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

The following table provides the balances of receivables, contract assets, and contract liabilities from contracts with customers.

*Exclusive of the BTC of ~~$12,160~~$12,679 and $8,300, respectively, and net of allowances for bad debt of ~~$50~~$55 and $63, respectively, as of the dates noted.

At ~~June~~ September 30,2021,approximately ~~$20,505~~$20,227 of revenue is expected to be recognized from remaining performance obligations. FutureFuel expects to recognize this revenue ratably over expected sales over the expected term of its long-term contracts which range from three to five years. Approximately ~~25%~~30% of this revenue is expected to be recognized over the next 12 months, and ~~75%~~70% is expected to be recognized over the subsequent 4845 months. These amounts are subject to change based upon changes in the estimated contract life and estimated quantities to be sold over the contract life.

The Company applies the practical expedient in ASC 606-10-50-14 and excludes the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

Notes to Consolidated Financial Statements of FutureFuel Corp.

The following tables provide revenue from customers disaggregated by the type of arrangement and by the timing of the recognized revenue.

As of ~~June~~September 30, 2021, $~~3,421~~3,052 of the bill and hold revenue had not shipped.

Notes to Consolidated Financial Statements of FutureFuel Corp.

The Company records all derivative instruments at fair value. Fair value is determined by using the closing prices of the derivative instruments on the New York Mercantile Exchange at the end of an accounting period. Changes in the fair value of derivative instruments are recognized at the end of each accounting period and recorded in the statement of income as a component of cost of goods sold.

In order to manage commodity price risk caused by market fluctuations in biofuel prices, future purchases of feedstock used in biodiesel production, physical feedstock, finished product inventories attributed to the process, and other petroleum products purchased or sold, the Company may enter into exchange-traded commodity futures and options contracts. The Company accounts for these derivative instruments in accordance with ASC 815-20-25, Derivatives and Hedging. Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship. To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained. The Company had no derivative instruments that qualified under these rules as designated accounting hedges in 2021 or 2020. The Company has elected the normal purchase and normal sales exception for certain feedstock purchase contracts and supply agreements.

Realized gains and losses on derivative instruments and changes in fair value of the derivative instruments are recorded in the consolidated statements of operations as a component of cost of goods sold and amounted to a loss of ~~$5,404~~$2,348 and ~~$8,029~~$10,377 for the three months and ~~six~~nine months ended ~~June~~September 30, 2021, respectively and a ~~loss of $935 and a~~ gain of ~~$5,922~~$867 and $6,789 for the three months and ~~six~~nine months ended ~~June~~September 30, 2020, respectively.

The volumes and carrying values of FutureFuel’s derivative instruments were as follows at:

The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of ~~$2,994~~$3,452 and $933 at ~~June~~September 30, 2021 and December 31, 2020, respectively, and was classified as other current assets in the consolidated balance sheets. The carrying values of the margin account and of the derivative instruments are included net, in other current assets.

At ~~June~~September 30, 2021 and December 31, 2020, FutureFuel had investments in certain debt securities (trust preferred ~~securities and exchange-traded debt instruments)~~securities) and in preferred stock and other equity instruments. These investments are classified as current assets in the consolidated balance sheets. The unrealized (loss) gain on equity securities held for the three months ended ~~June~~September 30, 2021 and 2020 ~~were $1,543~~was ($805) and ~~$2,164,~~$1,961, respectively. The unrealized loss on equity securities held for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 ~~were $222~~was $1,027 and ~~$7,405,~~$5,445, respectively.

FutureFuel has designated the debt securities as being available-for-sale. The following comprises the available-for-sale debt securities balances included within marketable securities in the consolidated balance sheets at the respective dates:

The aggregate fair value of debt securities with unrealized losses totaled $0 $0 at ~~June~~September 30, 2021 and $0 at December 31, 2020.

The Company determined an allowance for credit losses for these debt securities was not necessary as of ~~June~~September 30, 2021. The large financial institutions have strong credit ratings with no recent history of defaulting on outstanding obligations, nor is the Company aware of any long-term credit risk related to delinquency under these obligations.

There were 0 sales of debt securities in the ~~six~~nine months ended ~~June~~September 30, ~~2021~~2021. orSales of debt securities amounted to $1,500 in the ~~2020.~~three and nine months ended September 30, 2020, resulting in a gain of $72.

The debt securities held at ~~June~~September 30, 2021, had a contractual maturity of greater than ten years.

Notes to Consolidated Financial Statements of FutureFuel Corp.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Fair value accounting pronouncements also include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of FutureFuel. Unobservable inputs are inputs that reflect FutureFuel’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following tables provide information by level for assets and liabilities that are measured at fair value, on a recurring basis, at ~~June~~September 30, 2021 and December 31, 2020.

In April of 2015, FutureFuel acquired additional historical line space on a pipeline for $1,408. The acquired line space was recorded as an intangible asset with an indefinite life as there was no foreseeable limit on the time period over which it was expected to contribute to cash flows. In April of 2021, FutureFuel made the strategic decision to reduce its status as a regular shipper on the pipeline and sold a portion of its line space. At that time, it was also determined that the value of the remaining line space had declined. As a result, an impairment charge was recorded in Other Expense for $1,315 to further reduce the intangible asset carrying value to $0 at June 30,2021from $1,408 at December 31, 2020.

Notes to Consolidated Financial Statements of FutureFuel Corp.

On March 30, 2020, FutureFuel, with FutureFuel Chemical as the borrower and certain of FutureFuel’s other subsidiaries as guarantors, amended and restated its credit agreement (the “Credit Agreement”) originally entered into on April 16, 2015 (as amended, the “Prior Credit Agreement”) with the lenders party, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent. The Credit Agreement consists of a five-year revolving credit facility in a dollar amount of up to $100,000, which includes a sublimit of $30,000 for letters of credit and $15,000 for swingline loans (collectively, the “Credit Facility”). The credit facility expires on March 30, 2025. The primary amendments from the Prior Credit Agreement were a reduction in the facility by $65,000, a reduction in the facility’s applicable interest rate by 0.25%, a reduction in the commitment fee, and elimination of the minimum consolidated fixed charge coverage ratio.

The interest rate floats at the following margins over LIBOR or base rate based upon the leverage ratio from time to time:

The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a consolidated minimum interest coverage ratio.

There were 0 borrowings under the Credit Agreement at ~~June~~September 30, 2021 or at December 31, 2020.

~~Because~~In order to minimize the ~~Company was unable to reliably estimate its~~potential for ambiguity and distortion produced using the annual effective tax rate approach, the Company has determined its income tax benefits for the three and ~~six~~nine months ended ~~June~~September 30, 2021 ~~it determined its income tax benefit~~ by applying its actual year-to-date effective tax rate to year-to-date pretax loss. In contrast, the tax ~~benefit~~benefits for the three and ~~six~~nine months ended ~~June~~September 30, 2020 ~~reflected~~reflect the application of an estimated annual effective tax rate to year-to-date pretax income.

The effective tax rates for both periods reflect the positive effects of certain tax credits and incentives, the most significant of which were the BTC and Small Agri-biodiesel Producer Tax Credit. Additionally, the effective rate for the three and ~~six~~nine months ended ~~June~~September 30, 2020 ~~30,~~~~2020~~was favorably impacted by the enhanced NOL carryback provisions of the CARES Act. This law, enacted on March 27, 2020, allowed the Company to carry back its 2020 federal tax loss to a year with a higher tax rate rather than forward to a year with a lower rate.

Notes to Consolidated Financial Statements of FutureFuel Corp.

In the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, FutureFuel used the treasury method in computing earnings per share.

Basic and diluted ~~(losses)~~ earnings per common share were computed as follows:

In the three and ~~six~~nine months ended ~~June~~September 30, 2021, ~~11,905~~24,000 and ~~33,905~~30,603 options to purchase FutureFuel’s common stock were excluded in the computation of diluted earnings per share as all were anti-dilutive, respectively. In the three and ~~six~~nine months ended ~~June~~September 30, 2020, ~~50,000~~40,000 and ~~62,000~~54,667 options were excluded, respectively.

FutureFuel enters into transactions with companies affiliated with or controlled by a director and significant shareholder. Revenues, expenses, prepaid amounts, and unpaid amounts related to these transactions are captured in the accompanying consolidated financial statements as related party line items.

Related party revenues are the result of sales of biodiesel, petrodiesel, blends, other petroleum products, and other similar or related products to these related parties.

Related party cost of goods sold and distribution are the result of sales of biodiesel, petrodiesel, blends, and other petroleum products to third parties for items that were purchased from these related parties along with the associated expense from the purchase of natural gas, storage and terminalling services by FutureFuel from these related parties.

A related party manages natural gas purchases for FutureFuel, initially pays for the natural gas, and subsequently invoices FutureFuel for the same plus a nominal fee for such services. The natural gas matter as discussed in Note 17, Legal Matters, is in reference to the natural gas supplier, not the related party.

Notes to Consolidated Financial Statements of FutureFuel Corp.

FutureFuel has 2 reportable segments organized along similar product groups – chemicals and biofuels.

FutureFuel’s chemical segment manufactures diversified chemical products that are sold externally to third party customers. This segment is composed of 2 components: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals).

FutureFuel’s biofuels segment primarily manufactures and markets biodiesel. Biodiesel revenues are generated through the sale of biodiesel to customers through FutureFuel’s distribution network at the Batesville Plant, through distribution facilities available at leased oil storage facilities, and through a network of remotely located tanks. Biofuels revenue also ~~include~~includes the sale of biodiesel blends with petrodiesel; petrodiesel with no biodiesel added; internally generated, separated Renewable Identification Numbers (“RINs”); biodiesel production byproducts; and the purchase and sale of other petroleum products on common carrier pipelines. Biodiesel selling prices and profitability can at times fluctuate based on the timing of unsold, internally generated RINs. FutureFuel does not allocate production costs to internally generated RINs, and, from time to time, can enter into sales of biodiesel on a “RINs-free” basis, resulting in FutureFuel maintaining possession of the applicable RINs from the sale. The benefit derived from the eventual sale of the RINs is not reflected in results of operations until such time as the RINs sale has been completed, which may lead to variability in reported operating results.

Depreciation is allocated to segment cost of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.

Notes to Consolidated Financial Statements of FutureFuel Corp.

On May 10, 2021, the Company declared a special cash dividend of $2.50 per share on common stock and paid $109,408 on June 4, 2021. In the three months ended March 31, 2020, we declared a special cash dividend of $3.00 per share and paid $131,230 on April 17, 2020.

ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. Effective March 12, 2020, the guidance in the update is in response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This guidance will ease the accounting burden associated with transitioning away from reference rates that are expected to be discontinued within our credit facility as described in Note ~~10.~~10, Borrowings.

From time to time, FutureFuel and its operations are parties to, or targets of, lawsuits, claims, investigations, regulatory matters, and proceedings, which are being handled and defended in the ordinary course of business. While FutureFuel is unable to predict the outcomes of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows.

As a result of the extraordinary increase in natural gas prices, the Attorney General of Arkansas has launched a civil investigative demand against several natural gas suppliers. At this time the company is disputing the February 2021 natural gas bill and payment thereof is pending further investigation.

The natural gas expense was a component of Cost of goods sold-related parties in the Consolidated Statements of Operations and Comprehensive Income in the three months ended March 31, 2021 and ~~six~~nine months ended ~~June~~September 30, 2021. However, as discussed in Note 13, Related Party Transactions, the "ultimate" natural gas supplier is not a related party of FutureFuel.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations of FutureFuel Corp. (“FutureFuel”, “the Company”, “we”, or “our”) should be read together with our consolidated financial statements, including the notes thereto, set forth herein. This discussion contains forward-looking statements that reflect our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements. See “Forward-Looking Information” below for additional discussion regarding risks associated with forward-looking statements.

Our company is managed and reported in two reporting segments: chemicals and biofuels. Within the chemical segment are two product groupings: custom chemicals and performance chemicals. The custom product group is composed of specialty chemicals manufactured for a single customer whereas the performance product group is composed of chemicals manufactured for multiple customers. The biofuels segment is composed of one product group. Management believes that the diversity of each segment strengthens the company in the ability to utilize resources and is committed to growing each segment.

Within the biofuels segment following the laws of the United States Environmental Protection Agency (EPA) Renewable Fuel Standard (RFS), we generate 1.5 Renewable Identification Numbers (RINs) for each gallon of biodiesel sold in the United States, a classification of a D4 RINs. RINs are used to monitor the level of renewable fuel traded in a given year in accordance with RFS 2 within the EPA moderated transaction system (EMTS). We do not assign cost of goods sold to the generation of RINs as the physical fuel generates the full cost. We do not purchase RINs. The following table summarizes our RIN holdings and the median RIN market value at September 30, 2021 and September 30, 2020 according to Argus.

We are also registered in California's Low Carbon Fuel Standard program and Oregon's Clean Fuels Program. Only minimal credits were held in California as of September 30, 2021 and none were held at September 30,2020. No credits were held in Oregon in either period.

In March 2020, the World Health Organization categorized COVID-19 as a pandemic and it continues to spread throughout the United States and other countries across the world. During the pandemic, our objectives have been to protect the well-being of our employees, support our customers, obtain materials from our suppliers, and maintain our manufacturing operations. While the pandemic has reduced the overall level of activity across much of the economy, we have largely met these objectives.

The effects of the pandemic are still uncertain. The virus (including variants thereof) ~~are~~is still spreading. The three ~~principle~~principal areas where COVID-19 may still negatively impact our financial performance are customer demand, raw material procurement, and our ability to operate our manufacturing facility.

Customer Demand – Several of our major chemical customers sell the products we produce for them into markets that have been significantly impacted by COVID-19. The energy and automotive markets in particular have drastically been impacted since April 2020, and have not yet fully recovered to pre-pandemic levels. However, diesel prices and the value of Renewable Identification Numbers (RINs) have improved significantly in 2021 and while promising, this recovery is still fragile.

Supply Chain Impact – Our initial concern was that supplier shutdowns might result in raw material or input shortages and negatively impact our ability to manufacture products and meet our customers’ demands. This was true initially in our biofuel segment and the impact that had on the industry as a whole is part of the reason RINs have increased in value. We have managed supply such that our operations have not been hindered by shortages thus far and will continue in that effort.

Operations Impact - Our manufacturing is considered critical services and our plant has remained open to meet customer demand during the COVID-19 pandemic. The policies that were implemented including social distancing, enhanced cleaning and sanitizing, and the wearing of masks, have proven successful in preventing the spread of COVID-19 on-site. We will continue to take actions to help prevent the spread of COVID-19 at work and adjust policies as necessary. To date we have had no negative impact on our ability to operate the plant safely and in a way that meets our customers’ demands.

Even after the COVID-19 outbreak has subsided, we may ~~continue to~~ experience materially adverse impacts on our financial condition and results of operations.

Set forth below is a summary of certain consolidated financial information for the periods indicated.

We use adjusted EBITDA as a key operating metric to measure both performance and liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income, or cash flow from operating activities (each as determined in accordance with GAAP) as a measure of performance or liquidity. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization expenses, excluding, when applicable, non-cash stock-based compensation expenses, public offering expenses, acquisition-related transaction costs, purchase accounting adjustments, losses on disposal of property and equipment, gains or losses on derivative instruments, and other non-operating income or expenses. Information relating to adjusted EBITDA is provided so that investors have the same data that we employ in assessing the overall operation and liquidity of our business. Our calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the results of our calculation are not necessarily comparable to the results of other companies.

Adjusted EBITDA allows our chief operating decision makers to assess the performance and liquidity of our business on a consolidated basis to assess the ability of our operating segments to produce operating cash flow to fund working capital needs, to fund capital expenditures, and to pay dividends. In particular, our management believes that adjusted EBITDA permits a comparative assessment of our operating performance and liquidity, relative to a performance and liquidity based on GAAP results. This measure isolates the effects of certain items, including depreciation and amortization (which may vary among our operating segments without any correlation to their underlying operating performance), non-cash stock-based compensation expense (which is a non-cash expense that varies widely among similar companies), and gains and losses on derivative instruments (which can cause net income to appear volatile from period to period relative to the sale of the underlying physical product).

We utilize commodity derivative instruments primarily to protect our operations from downward movements in commodity prices, and to provide greater certainty of cash flows associated with sales of our commodities. We enter into hedges, and we utilize mark-to-market accounting to account for these instruments. Thus, our results in any given period can be impacted, and sometimes significantly, by changes in market prices relative to our contract price along with the timing of the valuation change in the derivative instruments relative to the sale of biofuel. We include this item as an adjustment as we believe it provides a relevant indicator of the underlying performance of our business in a given period.

Additionally, we invest in marketable securities of certain debt securities (trust preferred ~~stock and exchange-traded debt instruments)~~stock) and in preferred stock and other equity instruments. The realized and unrealized gains and losses on these marketable securities can fluctuate significantly from period to period. We include this item as an adjustment as we believe it provides a relevant indicator of the underlying performance of our business in a given period.

The following table reconciles net income, the most directly comparable GAAP performance financial measure, with adjusted EBITDA.

The following table reconciles cash flows from operations, the most directly comparable GAAP liquidity financial measure, with adjusted EBITDA.

Consolidated revenue in the three and ~~six~~nine months ended ~~June~~September 30, 2021 increased ~~$26,696~~$44,544 and ~~$15,130,~~$59,674, compared to the three and ~~six~~nine months ended ~~June~~September 30, 2020. This increase primarily resulted from increased prices in the biofuels ~~segment partially offset by lower~~segment. Lower biofuels sales volumes ~~in the chemicals segment. Biofuels volume increased~~partially reduced sales revenue in the ~~current three-month period, but reduced revenue in the six-month period, as compared to the same prior year~~comparative three- and nine-month periods.

Gross profit~~loss~~ in the three months ended ~~June~~September 30, 2021 was ~~$43~~$8,192 as compared to gross profit of ~~$911~~$6,446 in the three months ended ~~June~~September 30, 2020. This ~~decline~~increase primarily resulted from: i) ~~reduced sales volumes of two custom chemicals we no longer sell;~~improved margins in the biofuel segment and ii) the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting which ~~decreased~~increased gross profit $3,115 in the current three-month period as compared to an increase in gross profit of $1,575 in the same prior year period and iii) the change in the unrealized and realized postitions in derivative instruments with a loss of $5,404$961 in the current three-month period as compared to a ~~loss~~decrease in gross profit of ~~$935~~$628 in the same prior year period. ~~Mostly offsetting these declines was improved margins~~The change in the ~~biofuel segment.~~unrealized and realized positions in derivative instruments mostly offset these increases with a loss of $2,348 in the current three-month period as compared to a gain of $867 in the same prior year period.

Gross loss in the ~~six~~nine months ended ~~June~~September 30, 2021 was ~~$10,779~~$2,587 as compared to gross profit of ~~$17,310~~$23,756 in the ~~three~~nine months ended ~~June~~September 30, 2020. This decline primarily resulted from: i) exorbitant natural gas prices invoiced from Winter Storm Uri which resulted in an increase of $7,800 as compared to the prior year ~~quarter;~~period; ii) a reduction in production volumes given the natural gas curtailment; iii) reduced sales volumes of two custom chemicals we no longer ~~sale;~~sell; iv) the change in the unrealized and realized positions in derivative instruments with a loss of ~~$8,029~~$10,377 in the ~~six~~nine months ended ~~June~~September 30, 2021 as compared to a gain of ~~$5,922~~$6,789 in the ~~six~~nine months ended ~~June~~September 30, 2020 and ~~iv)~~v) the change in the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting. This adjustment decreased gross profit ~~$7,028~~$6,067 in the ~~six~~nine months ended ~~June~~September 30, 2021 as compared to an increase in gross profit of ~~$2,894~~$2,266 in the same prior period. Partially offsetting these declines was improved margins in the biofuel segment.

As a result of the extraordinary increase in natural gas prices, the Attorney General of Arkansas launched a civil investigative demand against several natural gas suppliers. At this time the company is disputing the February 2021 natural gas bill and payment thereof is pending further investigation. See Notes 13 and 1617 of the consolidated financial statements for further details.

Operating expenses decreased ~~$90~~$592 and ~~$188~~$780 in the three and ~~six~~nine months ended ~~June~~September 30, 2021, as compared to the same periods of ~~2020. This slight decrease was primarily~~2020 from decreased compensation expenses.

Other income decreased ~~$10,394~~$2,377 in the three months ended ~~June~~September 30, 2021 as compared to the same period of 2020, primarily due to the ~~2020.~~change in gains and losses in marketable securities. The loss (including unrealized losses) was $729 in the current three-month period as compared to gains (including unrealized gains) of $1,213 in the prior year period.

In the nine months ended September 30, 2021, Other income decreased $4,725 as compared to the same period in the prior year. This decrease ~~was primarily from~~resulted from: i) a legal resolution reached in the prior year on a contractual matter for which an accrual of $8,350 was relieved as Other ~~income. Other income in the three-month comparison period was also reduced by~~income; ii) the impairment of intangible assets of ~~$1,315.~~

$1,315 (see Note 8 of the consolidated financial statements for further details); and iii) reduced interest and dividend income. In addition, Other income was benefited from reduced losses in marketable securities (including unrealized losses) in the ~~six~~nine months ended ~~June 30, 2021, Other income decreased $2,348 as compared to the same period in the prior year. In addition to the items noted for the change in three months ended June~~September 30, 2021 compared to the prior ~~year, the gain~~year. The losses on marketable securities (including unrealized ~~gains) improved to $537~~losses) were $192 and $7,273 in the ~~six~~nine months ended ~~June~~September 30, 2021 ~~as compared to a loss (including unrealized losses) of $8,486.~~and 2020, respectively.

~~Because~~In order to minimize the ~~Company was unable to reliably estimate its~~potential for ambiguity and distortion produced using the annual effective tax rate approach, the Company has determined its income tax benefits for the three and ~~six~~nine months ended ~~June~~September 30, 2021 ~~it determined its income tax benefit~~ by applying its actual year-to-date effective tax rate to year-to-date pretax loss. In contrast, the tax ~~benefit~~benefits for the three and ~~six~~nine months ended ~~June~~September 30, 2020 ~~reflected~~reflect the application of an estimated annual effective tax rate to year-to-date pretax income.

The effective tax rates for both periods reflect the positive effects of certain tax credits and incentives, the most significant of which were the BTC and Small Agri-biodiesel Producer Tax Credit. Additionally, the effective rate for the three and ~~six~~nine months ended ~~June~~September 30, 2020 was favorably impacted by the enhanced NOL carryback provisions of the CARES Act. This law, enacted on March 27, 2020, allowed the Company to carry back its 2020 federal tax loss to a year with a higher tax rate rather than forward to a year with a lower rate.

Net income for the three and ~~six~~nine months ended ~~June~~September 30, 2021 increased $2,312 and decreased ~~$11,678 and $39,494~~$37,182 as compared to the same period in 2020, respectively. This decrease resulted primarily from the changes explained in gross profit (loss) ~~profit~~ as previously noted, Other income, and Income tax benefit.

Chemical revenue in the three ~~and six~~ months ended ~~June~~September 30, 2021 ~~decreased 31.9%~~increased 31.0% or ~~$7,291 and 37.4% or $18,874~~$3,954 compared to the three ~~and six~~ months ended ~~June~~September 30, 2020. Revenue ~~for~~from our custom chemicals (unique chemicals produced for specific customers) ~~for the three and six months ended June 30, 2021 totaled $12,260 and $22,935, a decrease~~was $12,720, an increase of ~~$5,781 and $18,866~~$2,391. Revenue from the same period in 2020. Two products we no longer sell benefited the prior year revenue $7,526 and $15,623, respectively. The remaining decrease in the six-month comparison period was primarily from lower sales volumes with the natural gas curtailment and COVID-19. Performanceour performance chemicals (composed of multi-customer products which are sold based on specification) was $3,971, an increase of $1,562. Prior year sales volumes for both product lines were negatively impacted by COVID.

In the nine months ended September 30, 2021, chemical revenue ~~for the three and six months was $3,287 and $8,722,~~totaled $48,348, a decrease of ~~$1,510~~23.6% or $14,920 from the ~~three months ended June 30,~~same period in 2020. Revenue from custom chemicals was $35,655, a decrease of $16,474 from the prior year comparison period resulting from two products we no longer sell. The remaining decrease in the nine-month comparison period was from lower sales volumes given the natural gas curtailment experienced in February of this year. Sales revenue improved $1,554 to $12,693 in the nine-month comparison period for performance chemicals. This ~~decrease~~increase was ~~primarily from decreased~~from: i) improved market conditions with higher sales ~~volume~~volumes of our polymer modifier, ii) improved price of glycerin, and iii) the timing of ~~campaign products, although market conditions were more supportive than during the same period of last year. Performance chemicals sales revenue in the six-month comparison periods were unchanged.~~campaigned products.

Gross profit for the chemical segment for the three and ~~six~~nine months ended ~~June~~September 30, 2021, increased $351 and decreased ~~$3,292 and $12,607~~$12,256 when compared to the same periods of 2020. The decline of gross profit in the nine-month comparison period ~~of 2020~~was driven mostly by the unusually high natural gas price, the loss of sales volume in our custom chemical products primarily driven by the effects of COVID-19 on customer demand, and the loss of two custom chemical products we no longer sell. Also reducing gross profit in the ~~three and six~~nine months ended ~~June~~September 30, 2021 as compared to the same prior year ~~periods~~period was the ~~change in adjustments~~increase in the ~~carrying value of our inventory as determined utilizing the~~ LIFO ~~method of inventory accounting. This change in adjustments~~reserve due to higher prices which decreased gross profit ~~$324 and $1,064~~$1,202 in the ~~three and six~~nine months ended ~~June~~September 30, ~~2021, and increased gross profit $258 and $760,~~2021; alternatively, in the same ~~periods~~period of 2020, ~~respectively.~~the LIFO reserve decreased due to lower prices increasing gross profit $748.

Biofuels revenue in the three and ~~six~~nine months ended ~~June~~September 30, 2021 increased ~~$33,987~~$40,590 and ~~$34,004~~$74,594 compared to the same periods of 2020, respectively. This increase was primarily driven from the overall improvement in fuel and RIN prices. The biodiesel and biodiesel blend volumes decreased approximately ~~$3,000~~$3,000 in the ~~six-month~~nine-month comparison period primarily from the impact of Winter Storm Uri.

A significant portion of our biodiesel sold was to ~~two~~three major refiners in the three months ended ~~June~~September 30, 2021 and to three major refiner/blenders in the ~~six~~nine months ended ~~June~~September 30, 2021. In the same periods of the 2020, one major refiner was greater than 10% of revenue. No assurances can be given that we will continue to sell to such major refiners, or, if we do sell, the volume we will sell or the profit margin we will realize. We do not believe that the loss of these customers would have a material adverse effect on our biofuels segment or on us as a whole because: (i) we believe that we could readily sell our biodiesel to other customers as potential demand from other customers for biodiesel exceeds our production capacity; (ii) our sales to these customers are not under fixed terms and the customers have no fixed obligation to purchase any minimum quantities except as stipulated by short-term purchase orders; and (iii) the prices we receive from these customers are based upon then-market rates, as would be the case with sales of this commodity to other customers.

Biofuels gross ~~loss~~profit was ~~$4,328~~$3,087 in the three months ended ~~June~~September 30, 2021, as compared to a gross profit of $1,692 in the same period of 2020, primarily from: i) improved margins on biodiesel and ii) the reduction in our LIFO reserve from reduced inventories which increased gross profit $1,099 in the current period as compared to an increase in the LIFO reserve from higher prices in the same period of the prior year decreasing gross profit $616. Biofuels gross profit decreased further in the three-month comparison periods by the change in the activity in derivative instruments with a loss of ~~$6,666~~$2,348 in the three months ended September 30, 2021, as compared to a gain of $867 in the three months ended September 30, 2020.

Biofuels gross loss was $10,676 in the nine months ended September 30, 2021, as compared to a gross profit of $3,411 in the same period of 2020, primarily from: i) the impact of Winter Storm Uri which dramatically increased the price of natural gas and consequently reduced sales volumes when production was curtailed to minimize natural gas consumption, further exacerbated by delays in restarting caused by the freezing weather; ii) the change in the activity in derivative instruments with a loss of ~~$5,404~~$10,377 in the ~~three~~nine months ended ~~June~~September 30, 2021, as compared to a ~~loss~~gain of ~~$935~~$6,789 in the ~~three~~nine months ended ~~June~~September 30, 2020 and iii) ~~the change in adjustments~~increased LIFO reserve from increased prices in the ~~carrying value of our inventory as determined utilizing the LIFO method of inventory accounting in the three~~nine months ended ~~June~~September 30, 2021 as compared to reduced prices lowering the LIFO reserve in the same period of 2020; this adjustment decreased gross profit ~~$,2,791~~$4,865 and increased gross profit ~~$1,317, respectively.~~

Biofuels gross loss was $13,763 in the six months ended June 30, 2021, as compared to a gross profit of $1,719 in the same period of 2020, primarily from: i) the impact of Winter Storm Uri which dramatically increased the price of natural gas and consequently reduced sales volumes when production was curtailed to minimize natural gas consumption, further exacerbated by delays in restarting caused by the freezing weather; ii) the change in the activity in derivative instruments with a loss of $8,029 in the six months ended June 30, 2021, as compared to a gain of $5,922 in the six months ended June 30, 2020 and iii) the change in adjustments in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting in the six months ended June 30, 2021 as compared the same period of 2020; this adjustment decreased gross profit $5,964 and increased gross profit $2,134,$1,518, respectively.

We recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets. Our derivative instruments do not qualify for hedge accounting under the specific guidelines of Topic 815, Derivatives and Hedging. None of the derivative instruments are designated and accounted for as hedges primarily due to the extensive record keeping requirements.

All derivative instruments are entered into with the standard contract terms and conditions in accordance with major trading authorities of the New York Mercantile Exchange.

The Company recognizes revenue under Topic 606, Revenue from Contracts with Customers. Certain long-term contracts had upfront non-cancellable payments considered material rights. The Company applied the renewal option approach in allocating the transaction price to the material rights. For each of these contracts, the Company estimated the expected contractual volumes to be sold at the most likely expected sales price as a basis for allocating the transaction price to the material right. Estimates are updated quarterly on a prospective basis. These custom chemical contracts have payment terms of 30 days. See Note 3 to our consolidated financial statements.

For most product sales, revenue is recognized when product is shipped from our facilities and risk of loss and title have passed to the customer, which is in accordance with our customer contracts and the stated shipping terms. Nearly all custom manufactured products are manufactured under written master service agreements. Performance chemicals and biodiesel are generally sold pursuant to the terms of written purchase orders. In general, customers do not have any rights of return, except for quality disputes. All of our products are tested for quality before shipment, and historically returns have been inconsequential. We do not offer rebates, except those related to the BTC.

Biodiesel selling prices can at times fluctuate based on the timing of unsold, internally generated RINs. From time to time, sales of biodiesel are on a “RINs-free” basis. Such method of selling results in applicable RINs being held. The value of the RINs is not reflected in revenue until such time as the RIN sale has been completed.

Revenue from bill-and-hold transactions in which a performance obligation exists is recognized when the total performance obligation has been met and control of the product has transferred. Bill-and-hold transactions for the three months ended ~~June~~September 30, 2021 and 2020 were related to custom chemicals customers whereby revenue was recognized in accordance with contractual agreements based upon product being produced and ready for use by the customer. These sales were subject to written monthly purchase orders with agreement that production was reasonable. The product was custom manufactured and stored at the customer’s request and could not be sold to another buyer. Credit and payment terms for bill-and-hold customers are similar to other custom chemicals customers. Revenue under bill-and-hold arrangements was ~~$7,878~~$9,185 and ~~$7,335~~$7,400 for the three months ended ~~June~~September 30, 2021 and 2020, respectively. For the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 bill and hold sales revenue was ~~$15,427~~$24,612 and ~~$17,488,~~$24,888, respectively.

Our net cash from operating activities, investing activities, and financing activities for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 are set forth in the following table.

We believe that existing cash balances and cash flow to be generated from operating activities and borrowing capacity under the amended and restated credit agreement will be sufficient to fund operations, product development, cash dividends, and capital requirements for the foreseeable future. However, as the impact of the COVID-19 pandemic on the economy and our operations evolves, we will continue to assess our liquidity needs. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets. An extended period of global supply chain and economic disruption could materially affect our business, results of operations, ability to meet debt covenants, access to sources of liquidity and financial condition.

Cash ~~was used~~provided by operating activities ~~of $2,349~~was $19,827 in the first ~~six~~nine months of 2021 as compared to cash provided by in the first ~~six~~nine months of 2020 of ~~$84,201,~~$76,576, for a net decrease of ~~$86,550.~~$56,749. This decrease was primarily attributable to the change in accounts receivable, including accounts receivable-related parties, of ~~$93,860.~~$80,001. This change resulted from the receipt of ~~$85,319~~$76,259 in the first ~~half~~nine months of 2020, primarily from BTC payments, compared to ~~an $8,541~~a $3,742 increase in accounts receivable for the same period in 2021. Also contributing to the net decrease was the change in net income ~~of $34,202~~from $41,092 in the first ~~half~~nine months of 2020 to a net ~~loss~~income of ~~$5,292~~$729 for the same period in 2021 for a net decrease of ~~$39,494,~~$40,363, and higher cash outflows from inventory of ~~$15,015~~$18,291 in the first ~~half~~nine months of 2021 compared to the first ~~half~~nine months of 2020. Partially offsetting these net cash outflows was a net change in accounts payable, including accounts payable-related parties, demonstrating a cash inflow of ~~$31,033~~$21,024 in the first ~~half~~nine months of 2021 as compared to a cash outflow of ~~$29,482~~$52,052 in the first ~~half~~nine months of 2020, also primarily related to BTC rebates due to customers paid in 2020. In addition, there was a net change in income tax receivable, demonstrating a cash inflow of ~~$801~~$7,768 in the first ~~half~~nine months of 2021 as compared to a cash outflow of ~~$19,380~~$14,379 in the same period of 2020.

Cash from investing activities ~~increased to $16,248 of cash provided by~~was $15,891 in the first ~~six~~nine months of 2021 as compared to cash used in of ~~$2,753~~$156 in the first ~~six~~nine months of 2020. Of the ~~$19,001~~$16,047 change, ~~$15,870~~$16,325 was the result of an increase in net sales of marketable securities in the first ~~six~~nine months of 2021 compared to the first ~~six~~nine months of 2020. ~~Such~~Cash from net sales totaled ~~$18,703,~~$18,981, in the first ~~six~~nine months of 2021, compared to ~~$2,833 in net sales~~$2,656 in the first ~~six~~nine months of 2020.

Cash used in financing activities was ~~$114,427~~$117,053 and ~~$136,956,~~$139,580, in the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, respectively. This ~~$22,529~~$22,527 difference primarily resulted from the payment of the special dividend of $109,408 on our common stock in the first ~~six~~nine months of 2021 compared to the payment of the special dividend of $131,230 in the same period of 2020, for a net difference of $21,822.

Effective March 30, 2020, we entered into an amended and restated credit agreement with a syndicated group of commercial banks for $100,000. The loan is a revolving facility, the proceeds of which may be used for our working capital, capital expenditures, and general corporate purposes. The facility terminates on March 30, 2025. See Note 10 to our consolidated financial statements for additional information regarding our Credit Agreement.

We intend to fund future capital requirements for our businesses from cash flow as well as from existing cash, cash investments, and, if the need should arise, borrowings under our credit facility. We do not believe there will be a need to issue any securities to fund such capital requirements.

In the ~~first~~ three and ~~six~~nine months ofended September 30, 2021 and 2020, we paid a regular quarterly cash ~~dividend~~dividends in the amount of $0.06 per share on our common stock. The regular cash dividend amounted to ~~$2,624~~$2,625 in each ~~period.~~of the first three quarters. On May 10, 2021 we also declared a special cash dividend of $2.50 per share and paid $109,408 on June 4, 2021. In the three months ended March 31, 2020, we declared a special cash dividend of $3.00 per share and paid $131,230 on April 17, 2020.

As a result of our ~~initial equity offering, our subsequent~~ positive operating results, ~~the exercise of warrants, and the issuance of shares in our at-the-market offering,~~ we accumulated excess working capital. Some of this excess working capital has been paid out as special and regular cash dividends. Additionally, regular dividends will be paid in December 2021, as previously reported. Third parties have not placed significant restrictions on our working capital management decisions.

A significant portion of these funds was held in cash or cash equivalents at multiple financial institutions. In the periods ended ~~June~~September 30, 2021 and December 31, 2020, we also had investments in certain preferred stock, debt securities, and other equity instruments. We classify these investments as current assets in the accompanying consolidated balance sheets and designate the debt securities as being “available-for-sale.” Accordingly, the debt securities are recorded at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ equity. We also held equity securities with readily available market values. These equity instruments are recorded at fair value, with the unrealized gains and losses reported as a component of net income. The fair value of the debt securities and equity instruments totaled ~~$46,238~~$45,164 and $64,404 at ~~June~~September 30, 2021 and December 31, 2020, respectively.

Lastly, we maintain depositary accounts such as checking accounts, money market accounts, and other similar accounts at selected financial institutions.

We engage in two types of hedging transactions. First, we hedge our biofuels sales through the purchase and sale of futures contracts and options on futures contracts of energy commodities. This activity was captured in our consolidated balance sheets at ~~June~~September 30, 2021 and December 31, 2020. Second, we hedge our biofuels feedstock through the execution of purchase contracts and supply agreements with certain vendors or they meet the normal purchase and normal sales exception of ASC 815 Derivatives and Hedging. These hedging transactions are recognized in earnings and were not recorded in our consolidated balance sheets at ~~June~~September 30, 2021 or December 31, 2020 because they do not meet the definition of a hedge instrument as defined under GAAP. The purchase of biofuels feedstock generally involves two risk components: basis and price. Basis covers any refining or processing required as well as transportation. Price covers the purchases of the actual agricultural commodity. Both basis and price fluctuate over time. A supply agreement with a vendor constitutes a hedge when we have committed to a certain volume of feedstock in a future period and have fixed the basis for that volume.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

All dollar amounts expressed as numbers in these Market Risk Disclosures are in thousands (except per share amounts).

In recent years, general economic inflation has not had a material adverse impact on our costs and, as described elsewhere herein, we have passed some price increases along to our customers. However, we are subject to certain market risks as described below.

Market risk represents the potential loss arising from adverse changes in market rates and prices. Commodity price risk is inherent in the chemicals and biofuels business both with respect to inputs (electricity, coal, raw materials, biofuels feedstock, etc.) and outputs (manufactured chemicals and biofuels).

We seek to mitigate our market risks associated with the manufacturing and sale of chemicals by entering into long-term sale contracts that include contractual market price adjustment protections to allow changes in market prices of key raw materials to be passed on to the customer. Such price protections are not always obtained, however, and some raw material price risk remains significant.

In order to manage price risk caused by market fluctuations in biofuels prices, we may enter into exchange-traded commodity futures and options contracts. We account for these derivative instruments in accordance with Topic 815, Derivatives and Hedging. Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship. To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained. We had no derivative instruments that qualified under these rules as designated accounting hedges in the first ~~six~~nine months of 2021 or 2020. Changes in the fair value of our derivative instruments are recognized at the end of each accounting period and recorded in the consolidated statement of operations as a component of cost of goods sold within the biodiesel segment.

Our immediate recognition of derivative instrument gains and losses can cause net income to be volatile from period to period due to the timing of the change in value of the derivative instruments relative to the volume of biofuel being sold. At ~~June~~September 30, 2021 and December 31, 2020, the fair values of our derivative instruments were a net liability and asset of ~~$1,103~~$2,023 and $124, respectively.

Our gross profit will be impacted by the prices we pay for raw materials and conversion costs (costs incurred in the production of chemicals and biofuels) for which we do not possess contractual market price adjustment protection. These items are principally composed of crude corn oil and yellow grease and petrodiesel. The availability and price of these items are subject to fluctuations due to unpredictable factors such as weather conditions, overall economic conditions, governmental policies, commodity markets, and global supply and demand.

We prepared a sensitivity analysis of our exposure to market risk with respect to key raw materials and conversion costs for which we do not possess contractual market price adjustment protections, based on average prices for the first ~~six~~nine months of 2021. We included only those raw materials and conversion costs for which a hypothetical adverse change in price would result in a 1%1.0% or greater decrease in gross profit. Assuming that the prices of the associated finished goods could not be increased and assuming no change in quantities sold, a hypothetical 10% ~~change~~increase in the average price of the commodity listed below would result in the following change in gross profit.

We had no borrowings at ~~June~~September 30, 2021 or December 31, 2020 and, as such, we were not exposed to interest rate risk for those periods. Due to the relative insignificance of transactions denominated in foreign currency, we consider our foreign currency risk to be immaterial.

Under the supervision and with the participation of our chief executive officer and our principal financial officer and other senior management personnel, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e)) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and our principal financial officer have concluded that these disclosure controls and procedures at ~~June~~September 30, 2021 were effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.

There were no changes in our internal control over financial reporting during our last fiscal quarter that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

We are not a party to, nor is any of our property subject to, any material pending legal proceedings, other than ordinary routine litigation incidental to our business. However, from time to time, we may be a party to, or a target of, lawsuits, claims, investigations, and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which we expect to be handled and defended in the ordinary course of business. While we are unable to predict the outcome of any matters currently pending, we do not believe that the ultimate resolution of any such pending matters will have a material adverse effect on our overall financial condition, results of operations, or cash flows. However, adverse developments could negatively impact earnings or cash flows in future periods.

There have been no material changes to the risk factors we previously disclosed in Item 1A of our Form 10-K, Annual Report for the year ended December 31, 2020 filed with the SEC on March 16, 2021.

This report, and the documents incorporated by reference into this report contain forward-looking statements. Forward-looking statements deal with our current plans, intentions, beliefs, and expectations, and statements of future economic performance. Statements containing such terms as “believe,” “do not believe,” “plan,” “expect,” “intend,” “estimate,” “anticipate,” and other phrases of similar meaning are considered to contain uncertainty and are forward-looking statements. In addition, from time to time we or our representatives have made or will make forward-looking statements orally or in writing. Furthermore, such forward-looking statements may be included in various filings that we make with the SEC, or in press releases, or in oral statements made by or with the approval of one of our authorized executive officers.

These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, those set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in FutureFuel’s Form 10-K Annual Report for the year ended December 31, 2020 and in our future filings made with the SEC. You should not place undue reliance on any forward-looking statements contained in this report which reflect our management’s opinions only as of their respective dates. Except as required by law, we undertake no obligation to revise or publicly release the results of any revisions to forward-looking statements. The risks and uncertainties described in this report and in subsequent filings with the SEC are not the only ones we face. New factors emerge from time to time, and it is not possible for us to predict which will arise. There may be additional risks not presently known to us or that we currently believe are immaterial to our business. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If any such risks occur, our business, operating results, liquidity, and financial condition could be materially affected in an adverse manner. You should consult any additional disclosures we have made or will make in our reports to the SEC on Forms 10-K, 10-Q, and 8-K, and any amendments thereto. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this report.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Contract Assets and Liability Balances	June 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Trade receivables, included in accounts receivable*	$	17,851	$	12,279	$	13,453	$	12,279
Contract assets, included in accounts receivable	$	1,343	$	808	$	423	$	808
Contract liabilities, included in deferred revenue - short-term	$	5,183	$	3,769	$	6,058	$	3,769
Contract liabilities, included in deferred revenue - long-term	$	15,322	$	17,943	$	14,169	$	17,943

	Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020			2021		2020		2021		2020
Contract revenue from customers with > 1 year arrangements	$	5,771	$	4,909	$	10,877	$	14,523		$	6,232	$	4,995	$	17,109	$	19,518
Contract revenue from customers with < 1 year arrangements		68,291		42,458		104,646		87,887			92,395		49,088		197,041		136,975
Revenue from non-contractual arrangements		56		55		111		111			55		55		166		166
BTC rebate		0		0		0		(2,017	)		0		0		0		(2,017	)
Total revenue	$	74,118	$	47,422	$	115,634	$	100,504		$	98,682	$	54,138	$	214,316	$	154,642

	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020		2021		2020		2021		2020
Bill-and-hold revenue	$	7,878	$	7,335	$	15,427	$	17,488	$	9,185	$	7,400	$	24,612	$	24,888
Non-bill-and-hold revenue		66,240		40,087		100,207		83,016		89,497		46,738		189,704		129,754
Total revenue	$	74,118	$	47,422	$	115,634	$	100,504	$	98,682	$	54,138	$	214,316	$	154,642

	June 30, 2021			December 31, 2020			September 30, 2021			December 31, 2020
At average cost (approximates current cost)
Finished goods	$	24,152		$	15,452		$	8,119		$	15,452
Work in process		1,377			1,632			483			1,632
Raw materials and supplies		40,882			22,674			47,028			22,674
		66,411			39,758			55,630			39,758
LIFO reserve		(12,897	)		(5,869	)		(11,936	)		(5,869	)
Total inventory	$	53,514		$	33,889		$	43,694		$	33,889

	Asset (Liability)
	June 30, 2021					December 31, 2020
	Contract Quantity Short		Fair Value			Contract Quantity Short		Fair Value
Regulated fixed price future commitments		375	$	(1,013	)		250	$	124

	For the Six Months Ended June 30, 2021															For the Nine Months Ended September 30, 2021
					Accumulated															Accumulated
					Other			Additional					Total							Other			Additional					Total
	Common Stock				Comprehensive			Paid-in		Retained			Stockholders’			Common Stock				Comprehensive			Paid-in		Retained			Stockholders’
	Shares		Amount		Income (Loss)			Capital		Earnings (Deficit)			Equity			Shares		Amount		Income (Loss)			Capital		Earnings (Deficit)			Equity
Balance - December 31, 2020		43,743,243	$	4	$	208		$	282,215	$	89,456		$	371,883			43,743,243	$	4	$	208		$	282,215	$	89,456		$	371,883
Other comprehensive loss		-		0		(60	)		0		0			(60)			-		0		(60	)		0		0			(60)
Net loss		-		0		0			0		(8,773	)		(8,773	)		-		0		0			0		(8,773	)		(8,773	)
Balance - March 31, 2021		43,743,243	$	4	$	148		$	282,215	$	80,683		$	363,050			43,743,243	$	4	$	148		$	282,215	$	80,683		$	363,050
Cash dividends declared, $2.50 per share		-		0		0			0		(109,408	)		(109,408	)		-		0		0			0		(109,408	)		(109,408	)
Proceeds for the issuance of stock		20,000		0		0			231		0			231			20,000		0		0			231		0			231
Other comprehensive income		-		0		60			0		0			60			-		0		60			0		0			60
Net income		-		0		0			0		3,481			3,481			-		0		0			0		3,481			3,481
Balance - June 30, 2021		43,763,243	$	4	$	208		$	282,446	$	(25,244	)	$	257,414			43,763,243	$	4	$	208		$	282,446	$	(25,244	)	$	257,414
Other comprehensive loss																	-		0		(53	)		0		0			(53	)
Net income																	-		0		0			0		9,202			9,202
Balance - September 30, 2021																	43,763,243	$	4	$	155		$	282,446	$	(16,042	)	$	266,563

	June 30, 2021
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value
Trust preferred stock	$	3,676	$	263	$	0	$	3,939

	Asset (Liability)										Asset (Liability)

	Fair Value at			Fair Value Measurements Using Inputs Considered as:							Fair Value at			Fair Value Measurements Using Inputs Considered as:
Description	June 30, 2021			Level 1			Level 2		Level 3		September 30, 2021			Level 1			Level 2		Level 3
Derivative instruments	$	(1,013	)	$	(1,013	)	$	0	$	0	$	(2,023	)	$	(2,023	)	$	0	$	0
Preferred stock and other equity instruments	$	42,298		$	42,298		$	0	$	0	$	41,291		$	41,291		$	0	$	0
Trust preferred stock and exchange-traded debt instruments	$	3,939		$	3,939		$	0	$	0
Trust preferred stock											$	3,873		$	3,873		$	0	$	0

	June 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Accrued employee liabilities	$	2,573	$	2,609	$	2,632	$	2,609
Accrued property, franchise, motor fuel and other taxes		1,658		1,730		1,141		1,730
Lease liability, current		634		491		639		491
Accrued directors' fees						208		0
Other		353		247		204		247
Total	$	5,218	$	5,077	$	4,824	$	5,077

Consolidated Leverage Ratio			Adjusted LIBOR Rate Loans and Letter of Credit Fee		Base Rate Loans		Commitment Fee
< 1.00:1.0				1.00%		0.00%		0.15%
≥ 1.00:1.0	And	< 1.50:1.0		1.25%		0.25%		0.15%
≥ 1.50:1.0	And	< 2.00:1.0		1.50%		0.50%		0.20%
≥ 2.00:1.0	And	< 2.50:1.0		1.75%		0.75%		0.20%
≥ 2.50:1.0				2.00%		1.00%		0.25%

	September 30,
		2021		2020
D4 RIN quantity		12,074,116		2,967,799
Market Value per RIN	$	1.42	$	0.74

	Three Months Ended June 30,												Three Months Ended September 30,
							Dollar			%							Dollar		%
	2021			2020			Change			Change			2021		2020		Change		Change
Revenue	$	74,118		$	47,422		$	26,696			56	%	$	98,682	$	54,138	$	44,544		82	%
Loss from operations	$	(2,003	)	$	(1,139	)	$	(864	)		(76	%)
Income from operations													$	6,142	$	3,804	$	2,338		61	%
Net income	$	3,481		$	15,159		$	(11,678	)		(77	%)	$	9,202	$	6,890	$	2,312		34	%
Earnings per common share:
Basic	$	0.08		$	0.35		$	(0.27	)		(77	%)	$	0.21	$	0.16	$	0.05		31	%
Diluted	$	0.08		$	0.35		$	(0.27	)		(77	%)	$	0.21	$	0.16	$	0.05		31	%
Adjusted EBITDA	$	4,668		$	2,652		$	2,016			76	%	$	11,144	$	5,575	$	5,569		100	%

Item	Volume Requirements (a)		Units	Hypothetical Adverse Change in Price			Decrease in Gross Profit		Percentage Decrease in Gross Profit			Volume Requirements (a)		Units	Hypothetical Adverse Change in Price			Decrease in Gross Profit		Percentage Decrease in Gross Profit
Biodiesel feedstocks		190,197	LB		10.0	%	$	8,388		77.8	%		307,046	LB		10.0	%	$	14,707		563.9	%
Natural Gas		639	MCF		10.0	%	$	898		8.3	%		916	MCF		10.0	%	$	1,029		39.4	%
Methanol		33,851	LB		10.0	%	$	619		5.7	%		53,548	LB		10.0	%	$	975		37.4	%
Electricity		54	MWH		10.0	%	$	257		2.4	%		81	MWH		10.0	%	$	418		16.0	%
Sodium Methylate		5,726	LB		10.0	%	$	225		2.1	%		9,116	LB		10.0	%	$	370		14.2	%
Coal		18	Ton		10.0	%	$	128		1.2	%		25	Ton		10.0	%	$	180		6.9	%
Caustic Soda													9,291	LB		10.0	%	$	110		4.2	%
Xylene													1,024	LB		10.0	%	$	35		1.3	%
Hydrogen Chloride													94	LB		10.0	%	$	34		1.3	%
190 Proof SDA													674	LB		10.0	%	$	33		1.3	%
Oleum													2,768	LB		10.0	%	$	27		1.0	%
Methyl Acetoacetate													261	LB		10.0	%	$	25		1.0	%

Exhibit	Description
~~11.~~	~~Statement re Computation of per Share Earnings~~
31(a).	Rule 13a-15(e)/15d-15(e) Certification of chief executive officer
31(b).	Rule 13a-15(e)/15d-15(e) Certification of chief principal officer
32.	Section 1350 Certification of chief executive officer and principal financial officer
99.	Statement re Computation of per Share Earnings
101	Interactive Data Files**
101.INS	Inline XBRL Instance
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Labels
101.PRE	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
**	Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

FUTUREFUEL CORP.

By:	/s/ Paul A. Novelly

Paul A. Novelly, Chairman and Chief Executive Officer


Date: ~~August~~November 9, 2021


By:	/s/ Rose M. Sparks

Rose M. Sparks, Chief Financial Officer and Principal Financial Officer


Date: ~~August~~November 9, 2021