Aemetis (AMTX)

Todd Waltz Executive Vice President and Chief Financial Officer
Eric McAfee Founder, Chairman, and Chief Executive Officer
Carter Driscoll MLV & Co.
Call transcript
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Good day, ladies and gentlemen. Welcome to Aemetis Third Quarter 2017 Earnings Review. All lines have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. [Operator instructions.] At this time, it is my pleasure to turn the floor over to your host, Executive Vice President and CFO, Todd Waltz. yours. is floor the Sir,

Todd Waltz

corporate Thank the earnings you, Earnings website Third XXXX available or press release, the aemetis.com and review the Exchange for Commission, homepage. calls. Welcome conference call. This to recent updated press Review earnings our and review Aemetis filings We with to Security aemetis.com previous Quarter releases, today’s Kat. on presentation, conference suggest at is download visiting presentation

following the statement. today, I’d like we Before our read begin discussion to disclaimer

today’s cautioned to price, statements risks forward-looking call the respect that on with and During the this and statements be materially uncertainties without including, with forward-looking with may and made conjunction all our disclosures appear that are These call, making cautionary our we’ll statements involve must warnings that made. limitation, from statements in be to in expectations differ future plans, respect financing activities. and statements stock events considered future Investors opportunities, SEC filings.

information, from For available Commission on are and please and charge. our website are Exchange company’s filings, which Security company posted additional without the to the refer

September income or expense, on share-based Our results and of on income, measures on to to expense, available our net expense, measures supplement extinguishment, as other is plus on A as this website. loss expense. is XX, and financial in our amortization tax which directly net extent included EBITDA tangible income XXXX, of loss compensation is the include to calculating and deducted Adjusted the call expense, ended a review interest such depreciation in defined for discussion a reconciliation the measures quarter the non-GAAP GAAP non-GAAP GAAP. most based will comparable release earnings

of XXXX. during the third due million results third to during for Now, third and XXXX $XXX,XXX operating the third Net for I’d with during of quarter Revenues compared quarter administrative margin XXXX. to $XX.X expenses was like $XXX,XXX of primarily distillers the Brazilian profit costs to Fuels, Services XXXX Aemetis, $XX.X million in during demand imports North $XX XXXX. for loss with $X.X $X.X the remain XXXX. of India the the same $X.X $XX.X operation loss grain. California, of gross Fuels, and were of compared of the structure to the the for pressure for ethanol review during contract million were the on associated Goods softening combined of Included attributable quarter quarter which million gross with the during million Included XXXX. of of of Goodland XXXX. quarter third of at was quarter of of to third the XXXX. Gross quarters in Goodland the $X.X the of XXXX quarter loss million quarter quarter of million overall in end third with million international compared placed the the $X.X the the million dried XXXX initiative, the of quarter selling, compared Tax fourth of during $X.X which with costs XXXX period expense India. one XXXX, costs Inc. to included the million end of introduction XXXX. from of offset was in cellulosic income the Weaker million the the $X.X America million quarter a increased segment $X XXXX our quarter on XXXX unit profit XXXX million but general, third of of to of development third of of was of XXXX. third placed and interest general, operating in associated Selling, XXXX third third million third the of the and wet XXXX $X.X and compared third was Inc. third associated of the pressure quarter $XXX,XXX for Coast a financial for the domestic quarter to to West ethanol was demonstration Operating both grain, same an XXXX expense Research Revenue for at XXXX for demand revenues pricing third third net the expense particularly for costs Advanced for integrated constant sluggish the quarter of compared during compared market ethanol start XXXX quarter $XX,XXX of locally million sold and of quarter was delay expense of from administrative to pricing of quarter to due to third was Cash $X.X of Interest distillers the quarter Inc. expected compared third the the with Advanced for of to $X.X BP the by softer was the quarter the quarter at

million ethanol XXXX. to nine the for XXXX the an first first the first increase million $XXX.X months for XXXX. of grain Now, of for nine during of months nine to nine production profit nine at months Gross compared I’d in the increase XXXX. of first the XXXX was during the financial Keyes compared months the resulted million and in An volumes the first results $XXX.X to months like Revenues to months XXXX the distillers in of ended review months compared XX, were nine of $X.X plant September million nine XXXX. for wet first $X.X

XXXX, same feedstock months market grain nine price During softening the to rising distillers a wet of to profit of decreased first gross and XXXX. the period compared a due for

$X.X million during to milo first awards, first of salary with the attributable grant months attributable gallons million selling, nine expense stock. the of in million of of a nine operating as increase nine America. XXXX. million loss North gross was of compared XXXX and to XXXX. were equity million million $XX XXXX the was the in $XX.X interest to was of XXXX and our usage ethanol Selling, million XXXX. $X.X XXXX months expense first Additionally, months $X of feed first quarter Aemetis, of first $XX.X million first completes XXXX expense one-time XXXX. the of during nine was to months first review months a the the compared $X.X months Interest nine the margins associated loss nine of for XXXX. during to general, months months during Operating of a of primarily third nine financial for compared during included first of expenses during of administrative benefit nine marketing The $X.X the nine Net costs the Inc. increase, in months loss the of general, the administrative of increase million That $XX.X sold and for compared first to loss net for

Eric to Executive update. Founder, like I’d Now, for Aemetis, introduce Chief Eric? the McAfee, Chairman, Officer business a and of

Eric McAfee

Todd. you, Thank

operate more was to million own with let new you grain, brief oil may of gallon Included information. founded those Aemetis gallons some our a in located and corn be For to than and provide per me a in XXX per facilities of our company, moment ethanol fuel and in XXXX, million background take who distillers capacity production renewable in XX near portfolio California year and Keyes, year capacity the India. Modesto. plant is US we

Kakinada. glycerin more was of and XX city decade the years. Chemical grew year leader We more ARCO a on refined of whom biodiesel also longtime than Aemetis capacity president member, India distilled than of of and Harold port served for Coast per the Sorgenti, built, more company gallon announced own, the biorefinery of near we Today, the million and has that the an was retirement East our than operate on $X Directors board a sold Board later billion. into for industry ten for Hal the

Directors, I supportive has a weather on On that friendly professional valuable and establish steady experience appreciate corporate Hal’s and provided Hal industry corporate Board of helped culture. Aemetis the personally manner strategy. hand has the the of Aemetis

and develop. to encouraged committed are the strategic continue that create has We or unique Aemetis products consistently opportunities to acquire to Hal

rates following. interest Third Number or rate rate, Before notes million reduction are reviewing we refinancing Aemetis regarding is that acquire the currently reliable communicated what debt original the by a Eye were Keyes loans actively by used These rate, funding EB-X Eye doing the primarily our to existing of were at supportive raising Capital phase at two, the commercial and interest the balance the to the the Aemetis the then would rate of I $XX conference X% of bank low million working during of $XXX call Third replace acquisitions provided plans $XX construction bridge for quarter’s for Toronto, using interest debt from notes of reiterate higher last assets. since existing cost of Aemetis X% like our plant. a Third outstanding one, the million to Though loans subordinated Eye quarter, XXXX. higher repay Canada, source and interest and operations lower financing Capital Capital

quarters positive one the about phase of The to the prior EB-X rate. plant in decision funding Number generated June already California Saudi crude $XX of improving the the business. margins of have X% flow million ethanol cash oil. the and million We to four at from of offering price EB-X two, operating interest completed XXXX Keyes received decrease $XX

generate the priced oil the the for higher California to is expected debt except financing. countries OPEC free in plant successfully inventory improved joining oil plant environment. year, this other is flow Number cash With three, prices a Saudi’s India crude increase to

for of to million pyramid in expected from expand may than $XX year under raise to are delivery company. the million grow to cellulosic to The value operations Revenues $XX ethanol IPO India expand the the an technology driven Number plant enzymatic sales by capital Number, India BP India growth an expected X% supply India and the an subsidiary domestic in fuel [ph] orchard per generate compared of increased to growth free as of of process repay the due ton we India. is to first flow in feedstock developed operations more subsidiary annual at the will agreement five, more flow than gallon million debt cellulosic million worldwide, in valuable price execute the by per of California supply prices India the debt team. years wood the year be waste ethanol. per ten of corn the than of expansion and and $XXX IPO four, oil XX-million planned delivery cash business parent $XX patent-pending cash of India about Aemetis ethanol India. a the the company biodiesel rising to the to current may equity annual used more crude for strong the of domestic be $XX repay average support Singapore first market, and So

significant Now let’s funding. cost review To of businesses of Aemetis let’s $X.X petroleum to July to biodiesel In collection. concept of state diesel meeting domestic India expansion and discuss is support platform ramp ethanol business. is to system of XXXX, Services from ten-year decreased production its that XXXX, July the of reviewing change. initiatives average Committee In X.X reduction Aemetis US-owned simplify a leading Tax as the for biodiesel the since tax smaller rate managed our subsidiary of reduces people GST in XXXX our a should tax the glycerin the on $X.X the by the important GST and GST revenues and of advanced XX% lower a and federal federal country business. fuel the than projects transformed was Services deliveries in This not Goods at XX India of known India in that in Tax, a due our an and producer our sells biofuels XX% year-over-year biodiesel state primary basic only GST to our and financing from of rate consumes each XX% to Goods to taxes increase a was BP in A would tax to and adoption implemented basis up Despite obtain year. plant total biodiesel, which and nearer then diesel. of begin, a continue be refined enforce produced billion X%. gallons India expensive biofuels as to about India decrease the less million. the in the the week, a in high review India component biodiesel located July, India and is India, million and in is to in and case a of slow amount adoption the biodiesel harmful quarter The the the reason third GST biodiesel tax admissions of of a India. customers plant. biodiesel billion revenue taxes and

to tax technology easily was We and new biodiesel India rate. deliveries expect of importance investors. biodiesel The however. this GST domestic adopt expand week, we our significantly milestone achievement domestic feedstock this lower commercialization team obtain by achieved a major sources by A can as be overlooked of

enzymatic is variety Aemetis high into of from the biodiesel. grape European encourage clear companies converting than feedstocks conversion the cost global from a implications capable and in production oils. that distilled world low-cost, of the free other is less the At to probably US feedstocks one time, our the of accomplishment. I biodiesel regular capacity you FFA acid canola, achieve first low-quality, biodiesel largest to up and quality resulting vegetable plant to So XX% and soybean, consider high this Aemetis wide waste the of opportunities fatty feedstocks in world operating seed,

biodiesel of biodiesel. a enable the of low-quality, for April US process subsidiary on Aemetis more worldwide India for supplier, low-cost worked the Novozymes and process of than patent the components the two has with develop patent-pending world’s useful enzyme feedstocks biofuel XXXX, extract In a use filed developed the enzymatic to enzymes Denmark, of years, that For to the largest Aemetis production. to production

During sustainable in rapid XXXX quarter domestic cost of Singapore. and and achieved upgrade been a late expected technology export XXXX, fatty have low-cost, completed. BP in low-carbon, of first customers the markets production India. in the the commissioning the in patent-pending the and both biodiesel the and using high phase This there’s enzymatic quarter shipments production result of plant feedstock yields BP fourth is repeatedly was both fourth the to the early imported XXXX, instillation equipment India biodiesel free for biodiesel of that of or advantage Commercial from QX existing acid our now expansion in consistently

unit about new commercial at Aemetis produce of used As has India the of gallons today, enzymatic the XXX,XXX plant biodiesel. to

three-year rate a we instillation of at run XXXX. during up feedstock, on agreement the on the a We feedstock To expect ship, are our X.X BP We not of the final for delivery delivery, million the deliveries stages gallons approximately availability. final XXXX upon recognize enzymatic XXXX to We on total monthly of biodiesel onboard the patent-pending in gallons to Europe and receiving biodiesel produce launch depending distilled to meet of biodiesel X.X biodiesel performance delivery to plant, during and Europe. a commercial ramp technology QX million BP XXXX, India and based approval commercial BP’s of more additional goals the revenue to the Europe. delivering late ship of full of currently single of in QX QX expect to than and new million to or ship an early annualized $XXX

Now let’s review ethanol our business.

blends lose internal million easily to the to cause than ethanol engines are chatter more renewable significant quarter combustion ethanol view, business supply we’ve produced of to site towards other were strong clear as media third the investors the X% my replace quarter than and the Ethanol of decarbonization the can more last US. X.X% of vehicles grew the trend for pricing increased petroleum. X.X% year. daily XXXX, ethanol due global fuels ethanol worldwide. During In excess by with revenues solution higher XXX our year-over-year. only Operating Biofuels weak the and in margins same year-over-year,

the congressional to XXXX current administration, two enforce occurred. for for Last oxygen than dangerous the agreements and after cleaner by to ethanol RFS renewable, have the more mandates. during toluene, inventory pollution emissions XXX enables burn replace billion This gasoline ethanol the benzene, and of other again global renewable octane, of to resulting the air a due more expect in jobs and and engines domestic ethanol the rural and the Federal different weaken reaffirmed Since low-carbon, lower X.X reduction the more in Pruitt countries, in environmental XXX,XXX in to were sight very efficiency endorsed expanding ethanol’s gasoline meet to XXXX. efficient cost, ethanol carbon to excess billion Federal about by high EPA were The will gas failure has projects investment Secretary important and more other there is domestic prior writing years XXX attracted outcome the to a by month compression recently can enforced than but that was law to areas. RFS standard law. makes by and the lost administration primarily of industry high of President, proposals gradually would failure that grow fully exports that RFS expand enforce biofuels, created nationally XX% smaller US the language violated we US, is was a octane. qualities the fuel would high of capital not shipments use and $XX due Administration, economic as of fuel As but of than additives the intent meet in reduction many tested the Ethanol and greenhouse demand. decline presented content previous gallons fuel the mandated In to and oxygen ethanol the

this capacity export in meet capacity with ethanol India is a exceed country international China significant only ethanol rates these feedstock in low-cost growing X% the ethanol to and blend US These demand. and Vietnam. countries. in the The production ethanol blending XX% countries blend expanding and blend a Foreign significantly domestic include

shortages of million after has EXX use XXXX. about XX demand, US to than growing The billion gallons about global gallons. vehicles XX In barrel, demand additional stations ethanol the production since the XX% more the year of a XX has reflecting compared purchased in of has a recently of comprised early that $XX the than now on about the with per XXXX. US from current oil gas XX% at run ethanol US represents to export can approved price in per be addition And in manufactured US miles the pumps. X,XXX more the to for vehicles $XX driven sustained billion XX% can X risen that of oil period crude year

over ethanol As rise, crude blenders price gasoline expensive should source attractive of the fuel of crude The continue fuel. oil blends prices a about ethanol the consumed Federal current XXX price advantage XX of and and is gasoline. for billion oil as to the more improve the increasingly gallons EXX rising including ethanol blending million to of than high-octane, level. Mandate less enforcement high-oxygen The gallons ethanol of ethanol Standard Fuel to requires of EXX be US in Renewable

it be parties obligated standard under by As of that meet all enforced to blending will clear expect the as administration, current mandates a in mandates. the RINs under the refineries in biofuels purchase investment avoid blending order to blending we becomes the biofuels RFS

attract gasoline. to the and $X.XX is two the can agreement emissions Cellulosic cellulosic is about ethanol under which Renewable Fuel ethanol cellulosic the incentivizes convert is Edeniq sales mechanism let important cellulosic ethanol. per gallon production. by to ethanol $X.XX about review gallon the LanzaTech investment capital Fuel Standard regardless more Standard total, us plant or [ph] only reduce biofuel per biofuel the to with of upgrade XX% corn a Now projects, also conventional pricing acquire a ethanol tax ethanol compared plus our price advance to our to In $X fiber per strongly Keyes gallon Carbon federal credit, the Low of California gasoline, to more biofuels. worth than Since today carbon cellulosic cellulosic

an biomass project into with of and Ag our start cellulosic convert our ethanol Let’s expansion as California waste corn plant. other ethanol to

converted the munitions near ethanol of is is of cellulosic town former industrial a Our use. that on army production site Keyes to ethanol in plant Bank located River the plant project being now the

of a and XX-year the a also lease of the feedstock a XX-year We options waste the signed XX-year with ton that averages for have of project agreement portion exclusive feedstock Aemetis majority orchard low-cost others licenses other Ag with about XXX-acre the signed fixed site. a for key build a wood has in plant. $XX successfully rights for We’ve waste investors delivered price cellulosic for significant on ethanol to cellulosic per the breakthrough To and LanzaTech and land future, the buildings fermentation of integrated signed gasification our presentation technology. invite the and biofuels demonstration this almost describes technologies. Aemetis, InEnTec that a and these InEnTec the using an corporate production and ethanol, home Aemetis view microbial to completed page of The Richland, months in and I has July gases built began of year nutshells production demonstrate four integrated wood LanzaTech, XXXX idea operations. unit Washington. in orchard To production

in very approval of loan and demonstration Bank. demonstration the of guaranteed part Biorefinery XX-year the final construction for gallons pleased the the of government completing phase of XX rate, ethanol yield Yield from with under cellulosic million data The operation River provided and plant other original of data stages is US two the plant. yield are the Assistance the Department low-interest to the other significantly expectations. Program. of Aemetis exceeds USDA our the of $XXX Agriculture be as integrated We the loan XXXX generated million, of process in ethanol guarantee unit XX% by production a cellulosic will key integrated

of expect XXXX half the begin loan USDA River first in to XXXX. of at production closing and We in the Bank plant the guaranteed

corn an ethanol. ethanol technology Edeniq, value XXXX, Aemetis already April that corn that cellulosic signed In ethanol biofuels plant. a high to the cellulosic includes the of conversion commitment converts lower-carbon corn plants agreement in acquire higher-priced, to is fiber ethanol upgrade Our the to company produce fiber of kernel of into

perform support believe discovery of in demand the to We us to agreement. the We documents are in the acquisition the with forth to pleased fail enforcement definitive the our lead that related intervened the transaction to terms process the litigation Edeniq the on to and signed that of substantial complete damages from under disclosed the investor to agreement. progress Edeniq signed agreement equity set cause

initiatives. key review now our us Let financing

Our rate a million X% subordinated received EB-X escrow. interest XX have we from update, debt at offering $XX a investors from foreign

million funding biodiesel for the low at a growth that equity the reduced well-positioned years biofuels principal industry interest business, fundamentals Third construction growth interest biodiesel ethanol backlog. America significantly funding, is ethanol shipping debt fundamentals is driven shareholders. India near from launched for five These a existing business the X% two, Keyes phase potential plant. The but have XX India, cash and IPO high the in the with the not subsidiary domestic depending and advanced at by of into cellulosic company costs flow and million $XX India, planned foreign rate from our EB-X for expansion EB-X non-diluted government that on with plant. Phase LanzaTech subordinated plant opportunities more is the the repayment and into by ethanol debt convertible the rate is of believe with loan funds share, two of currently and to offering potential phase We EB-X low is of process. interest scheduled convertible and equity with positive In India earnings, payments our customers facility Eye Capital of in existing a positive including interest in improving summary, of repay fund is are we to revenues no Aemetis North increased $XX business, entirely gallon River one the per or processing Bank to

questions our few take call Operator? let’s Now a participants. from


questions. McAfee. ahead, The Mr. you, first Driscoll. for from question Our [Operator now Go instructions.] Carter comes open Thank is floor Carter.

Carter Driscoll

Good Thanks morning, my for taking gentlemen. question.

hurdle you I to maybe you and better India. weight Thank one imposed fairly the BP’s follow do confidence economics it couple have the get mean reverse commission least It you. I the I a to have marketing and making hike behind Eric, arbitrary. clarity? gives additional just to was related little looking reduced? could is ramp that trying was comment what significant in you ups. recently a that near-term seems have at this like therefore first The is a that

Eric McAfee

Actually, industry consistent. threw to meeting changes to should very and of In that rate. the was case, work be. to figure your government active Committee, industry what tax was and they policy using the in announce have compared He the biodiesels, of strongly. dozens very a Every have who not different the is the tax month at of personal supports really GST the particular number largely XX% in have and Minister, It basket we in rates the we a Transport correct. and come of the the with, and they also out didn’t what been a number point statement the industries ethanol the of this involvement GST support the as there’s his last biodiesel relationship has very actual literally chemicals in out an time revisions strong

government, XX% just a such as need in direct to dramatic that contact have with pass diesel, as realize to that to a on. fix come and a didn’t we finally pricing the on sell now have entire agenda they They occurred to biodiesel that rise that would a has of So and levels acts we which the clear we now an industry item at would highest going, prices work They keep adjust in method it. the then originally discount time us. and have India, dynamic but it’s the for thought effect in industry taxes it’s and for this impact to on has of them

to on and progress. it’s be it’s not to We rate. It’s not, but can’t passed be to that So this process, now be able supposed it’s a ongoing. week, there a it increase would we I XX% the see believe guarantee expect if this be in cost clear, do tax is to week. customers. a That’s decrease will

Carter Driscoll

price limit Okay. say serious the of your love bit Thank the little Do imports ethanol noise in year? market on if about China hurdles, material get they’re trying second of of or country? I’d they conjunction soaking around and and to up boost case. stands, opportunity that’s with some a in to I the if the helping import a the should supply, have their about timing, potential would effect ethanol, to up Can the where and therefore think magnitude you use you particular half the the RFS, thoughts export maybe to of you. talk market limiting ramping really the

Eric McAfee

have gap back China, the Beijing building billion requirement. estimated they then with about that their production to that per corn and is The that just they’re their It’s by going X facility year a up back have. will mandate domestic range, Shenzhen, year I XXXX. between their very they they about gallon that XX% They be but processing returned from ethanol X serious China and They’re from X.X Shanghai, ethanol a in gallon production per days mandate expect significant again. to ten have corn to is billion the online domestic to an enormous cash. Beijing, XX% in have mandate.

an also As you know imported it’s an for air strategy. pollution but oil them reduction it’s

expect successful domestic I up that would to although see to than set does us from significantly foreign improve They be our the of does quality but higher that mandate, it their it expecting ethanol their am performance their I and trade fuel not opening imported XX% their etc. it improves So do be air market, vehicles, necessarily representatives was gradual. importing improve the at production, which and

is Regarding markets. closed US [indiscernible] currently ethanol countries, ethanol I and the for other India, a except the market which think to industrial

into shipping, and otherwise drinking markets. are that what’s there So ethanol production go the happening industrial of X that into domestic fuels. these it’s ethanol, domestic India, gallons but think million replacing months we is the last I would about the over XXX going Then into is ethanol that

where So as foreign to polluted increase ethanol air trade priority India, enhance representatives they world are to order to policy its the it. production. the to know struggling on pollution, domestic clean I [indiscernible] India, again ethanol not Government in in cities facing the a to high yet of that are our in by see consumption buy proceeding increasingly product US-based India as is XX pressure been try their XX but worst has adopted and that India the are up low-cost That to

an and last India, market the think several three several been China, Vietnam times in to times, times. Vietnam. I is year, overlooked I’ve

to X% rely have Vietnam’s in domestic ethanol I’m starts the of it’s they really can going mandates. They think I don’t upon. market production importation sorry January, July, mandate acquire to meet substantial ethanol domestic

these the expanding carbon So to adoption of California have countries temperatures going reduction near done are national a to has the trying in well hundreds rise in their Brown mandates leaders and Asia than considering as marvelous the this driver global job are either the goals. Governor for as not of Jerry Frankly, garnering of that ethanol already support The future. global X%. or Europe I’ve overlooked more

requires So that initiative rapid of sector. decarbonization transportation the

their over impact carbon significant mechanism internal the I’ve engines is on only XXX emissions. real reducing world. a combustion there’s to mentioned, have in As million Biofuels the

on the short-term think as that purely about oil support. statistics the it’s I to that industry we US overlook focus doesn’t fully easy federal policies rumblings temporary,

Carter Driscoll

US on the specific any limitations see don’t into discussed? being imports You

Eric McAfee

I adopted, the don’t to would up all because reasons, the If political might to we imported various opportunity think It Organization. we’re policy be short-term term. I would it medium fail observers a purely in WTO. going the but and The it’s I for be going litigation know they has think have in World think reason is fuels, that put long-term then a lose Trade as the policy. serious why

Carter Driscoll

you may commenting to is Aemetis an last specifically more terms that within and that your it of can you the that grain mind long market of may pricing, mitigate really distillers anything dynamic industry-wide softness do or and or in of how if there’s Do on expectations how the issue?

Eric McAfee

customer We local The been distillers is more of is Central at successful the we’ve relationship been related, Valley and more volume are price last grain it’s of program the national very volume but aggressive said an over year. number, XXX I doing a supply the the price in somewhat over dairies local. and

contracts or it year excuse. We China. for of distillers blockage need impacted for nation US to grain ago, starting a physical by grain. GMOs other with About some countries came though in a temporary with that price deliveries are to very, very [indiscernible] pleased with export as some The distillers the about products, the China us the up is a inability concerned

with the temporary times our half at domestic to feedstock, means short-term of very I corn need animals their product cost think that that’s a very one and feed cheap literally It is China. in is game. China playing

work mandate is really that get adopted value. were degrading rid didn’t of to of rid the supply. get ethanol they so corn rapidly in they and to domestic supply, which think trying I That corn

but animal and We’re just have and seeing don’t China’s reduction can’t their and in that over produce they of acres in own the goals short-term and reality They cannot low-cost corn China enough capacity air they million biofuels decarbonization the they there’s medium-term in enough is country production their the to a capacity meet in the produce policies US. in XX period. of have feed self-interest, pollution an acting

export under has as I I increased a So an on ethanol. that see as we sustainable to the other can US as Federal for grain what US think we need. what Administration competitive focus expect might that’s products distillers and that’s need need in competitive well to countries export the stand a we provide going current those in advantage that We up import. advantages sustainably Government

Carter Driscoll

commentary. that for you Thank

they note you Just in last that get litigation, before back do a though countersuit. the progress in one Edeniq from you I me favorable see mention I queue, the that filed

some any of up Thank comments of your then countersuit. type of you. is back view the the and favorable where validity commentary litigation have to you Just general on heading

Eric McAfee

we that but was say shot decided we detail have to going have talk consider claim a the purely I would it. I they to general, about valid boiler having come with can would very have of worry frankly, them that to That’s be I some that pleased claim it Edeniq. countersuit plate. whatever we any about opportunity we to the much that an disclose, to was concerns we’re for to don’t their lot at consider was because pleased be Sure. very countersuit. we’ve see and Thanks. about In and with apparently not up we

forward to successful. see that Edeniq’s seeing looking progress watching business further to they’re and are in closely We

recommendation customers asks will highest rapidly deploy and US and ethanol. plant calls absolutely corn at step them give any plant should contact every fiber the dry opportunity corn that us adopt. ethanol absolute to that’s corn Edeniq we refer cellulosic where a We think and customer them an we it’s ethanol mill in first referral, to the So people encourage for a a

technology very and We’re Edeniq today. the the of being solution supportive

Carter Driscoll

litigation, specific timeframe sound it are? doesn’t the next to a The when like definable there’s as steps

Eric McAfee

is a timeframe. definable There

decide deliver They won for We’re were long-term they’ve motion doing in filed conclude patient go have to very expected. the discovery I a process this that reason point case, we year currently mettle some in required That about delaying view in half was order we’re time transaction. issue we test our helpful use of through things a court litigants. very discovery at disclosed that what the documents. documents to a believe been often They was In We’ll to time people case. basically about That’s delay just a to as a and that other strategy had see we is there late July, There’s a discovery it. it so. good we delivered the and Edeniq it’s and would the it. very and

Carter Driscoll

Thank back of questions. in you. I’ll I my appreciate all queue. get answering you the

Eric McAfee

Carter. you, Thank


[Operator instructions.]

Eric McAfee

up right operator. the I think we’re going call now, to wrap

do some other world I appreciate going the the on we have in to today’s the things specifically on that call. Thank in run you long-term fuels. to the as opportunities medium-term on attendees vehicles well. focus on and need the decarbonizing We

that is I about presentation Aemetis a as in. biodiesel industry can great corporate our think further enzymatic on that our process cellulosic there’s that information as our LanzaTech the there’s website both opportunity position our in provide a ethanol investors and process. I well remind

Todd Waltz

Thank of you version an call. Earnings earnings Aemetis this conference will the version audio business post a section visit Aemetis update. Please Kat? attending written for today’s investor Aemetis website and we the and review where of


does you. your you conference. conclude participation. This today’s We Thank thank for

day. your disconnect time, have lines at this You and may wonderful a