Aemetis (AMTX)

Eric McAfee Founder, Chairman and Chief Executive Officer
Todd Waltz Executive Vice President and Chief Financial Officer
Carter Driscoll B. Riley FBR
Call transcript
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Welcome to the Aemetis First Quarter 2018 Earnings Review Conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. President Financial Vice of Executive Waltz, and Officer Chief Aemetis. Todd

Todd Waltz

today's XXXX the review website the Conference review Exchange updated Commission, Aemetis previous Securities to for releases conference with Earnings presentation, at press homepage. filing corporate Aemetis.com First to recent our Welcome available and visiting calls. on Quarter Review This or the is release, download, suggest call. Aemetis.com and press earnings earnings We presentation

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

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

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

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

of first loss of increasing ethanol, demand to profit first million $X.X review $XX.X North XX% to quarter in revenue of tons. at end of for the quarter quarter quarter the Revenues quarter Net XXXX. first from million. compared India That $X.X financial first million $XXX,XXX quarter XXXX, for our million quarter the was of first first with close the for loan to the results compared the compared million domestic loss quarter quarter period XXXX, fee first were million XXXX, first XXX% XXXX. million to expense from thousand million to demand the Now, the for $XXX,XXX quarter XXXX for of revenue of gross XX.X XXXX a XXXX, due generating to EBITDA quarter of $XX quarter to was compared deficit XXXX. of during to stronger $X.X I'd was to to completes metric quarter the during rising first increase of during first while by First $XXX,XXX million business Operating X.X of quarter of improved increase of compared operating increased during a Interest million $X.X to loss of $X.X interest sales of of of XXXX XX.X $X.X Cash XXXX. net the an first $X EBITDA Quarter of of was adjusted loss the the financial the $X.X of of for million first to the Gross Included fourth $XXX,XXX expenses improved quarter generated of onetime expense like XX% for principally XXXX compared XXXX. rising $X.X gallons, in $X strengthening $XX.X of a review for generated administrative the was first quarter the same during the million in $X.X XXXX. general million first Selling, the compared to the and during of XXXX. charge the million for XXXX. America loss million $X Aemetis first million, and XXXX. our by during compared million at feed gallons adjusted to of of the XXXX.

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

Eric McAfee

Thank you, Todd.

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

cost, higher not with the food Aemetis and plants feedstocks. due built, capacity on glycerin biorefinery supply city biofuel own east to same of reducing million waste fuels. revenue generation to our production feedstocks the or various is biofuels also product achieve our XX a distilled the in goals the competing lower first of These production carbon in operate renewable emissions us upgrading carbon refined We to and the year of per capacity of the Kakinada. for to biodiesel plants utilize and our lower gallon place mandates India, enable production near waste and generate expanding incentives port and the by profitability of expanding significantly coast

in enable of We and planned carbon to cellulosic higher expected construction pollution production. the a the the vineyard, value into biofuels and the California We several waste orchard, achieving at to are toward forest biofuels progress cost high excellent profitability plants field building construction advanced feedstock use feedstocks burning. demolition plant pretreatment of lost reduce oil wood unit agricultural first production the from of recently emissions waste announced air convert ethanol from making India advanced to is Aemetis and

by the the fully that Standard the the direct at is while dramatically White occurring decreased lack Renewable of enforced Fuel Renewable significant has enforcement the for believe oil president's federal Federal with agriculture refiners wavers. EPA. and whether strong XX that lack of Our the support result the without biofuels changes crude overturn Standard of waivers by demonstrated biofuels of renewable We US in compliance disclosure resulted representation a secret that confusion from the of demand prices compliance be will and that ongoing of consistently EPA. the the to The business the an policy numbers, to meetings a value marketplace is reduced refiners granting and billion identification EPA gallons of in as discuss X.X beneficiary in in number due of positive House public as of the waivers of which should biofuels the receiving many the is the estimated to facing rise oil Fuel law biofields

issues the enabled the despite commodity biofuels, metrics markets at to crude these price political key in Aemetis compared India an the for XXXX, improvement to XXXX. expanding QX temporary EPA oil of for rising the market have biofuels financial and impacting During domestic of

both revenues glycerin. scaling unit generating for increase demand operating year bioproducts from business customers from domestic QX supply the our margins During recently sold prior in India India and in the revenues crude refined oil to up in quarterly at domestic compared to biodiesel distilled are began XXXX, the India increased nameplate countries. biodiesel business glycerin on The and in other India a India as US the in Argentina and was a prices quarter to XXX% We and India crude petroleum. to with production announced operations, India positive production since meet significantly made above diesel using and in during impact products had discount glycerin to imported increase a glycerin capacity direct revenues that

XX% America in though year increase with distiller's to ramp of compared EBITDA breakeven generated significant the a revenues. I'd contributing QX was million, an both was note in ethanol the increase loss quarterly revenues might with the for XXXX operations $XX up grains above Our quarter. in reported for and production that North prior

begin in reviewing our biodiesel let's business by So India.

construction XXXX plant. feedstock of quarter at first significant of the biodiesel India completion our the The regarding pretreatment announcements unit included

The glycerin also purchase whom would ramped at higher the was successful domestic to oil tons testing imported In fatty India stearine a India to business import or production created by increased up price barrel of sales unit biodiesel to but at a feedstock We in high year refining without crude the for imported than $XX the biodiesel of to requires importing XX,XXX require feedstocks XXXX, in acid margin content. March charge. feedstock otherwise production acid India pretreatment product customers remove the initial and per capacity advanced India preprocessing crude per tariff high content the market margin order local high glycerin free the April, glycerin biodiesel of high priced for the unit with sources. using stearine has feedstock more a high In free for fatty from nonrenewable plant of was completed. India, glycerin

so to in India is based directly pretreatment guidance in glycerin designed quality distilled affirm with low yield track the to that Our discussions have as about underway a of crude product India but feedstock month process XXXX upon quality biodiesel low increase biodiesel is expected cash runs the BP increases previous and year supply than We a a to price business. fuel, and export our only expansion. initial from now this our petroleum major $X operating flow flow. per any less and agreement. capability the The oil The generating the biodiesel demand been three world run supply be and million increased was from in subsidized to cash subsidiary the feedstocks under significant rise India BP continue unit while contributor not profitability that $X in are expensive data has in and alternative India production XXXX increase completed into is the in diesel. further the The revenues of is per generated Biodiesel the in prices by production revenue is revenues business we revenue and India country has rate on to domestic expect upon rapid runs. refined to benefits XXX% without approved sold based shipments occurred to month healthy, driven to million more positive diesel, India based

ethanol let's Now, review business. our

funding margin the all construction milestones low to completion cellulosic ethanol of of cellulosic The about high the announced During Riverbank, that from and will XXX,XXX required for first wood signed cost in vineyard, forest orchard year construction/demolition approximately for supply previously supply California. contract feedstock We a plant XX the cellulosic wood profit million tons announced ethanol at biofuels as feedstock. California the waste orchard, several we first final $XX year expected the a per quarter, ethanol advanced to of is producing new and plant the revenue by also add related plant. of

obtained. of demonstration continuous plant of XX Richland already and unit, to yields unit the the cycles, IDU low cellulosic The The Letter plant setting walnut integrated million and During gallons plant we Using ability projects a XX approvals for per production and cellulosic gallons from nutshells. adjusted from demon ethanol plant expect Washington year the as biomass. construction was years, scheduled a completed construction The proved for approximately engineering with key ethanol Agriculture and QX, have the The been waste capacity is ethanol milestones review operated the $XXX almond a wood these of interest waste on Commitment the commercial that yields cellulosic rate, of guaranteed plant results required the often cellulosic for permitting rates preliminary demonstration yield ton demonstration for demonstration to wood on a We as loan the other so maintenance engineering cellulosic delay the months operations XX wood, US orchard ethanol models four deliverable environmental of of yield of well we feedstocks, of year million based per plant, environmental translate per out in Riverbank approvals ground California. and subsequent federally of key high Department uptime. environmental to this break ton biomass. for the of gallon completed from on the biomass ethanol of design. records for

with few USDA by based within are working a receive from set the now expectations a we of the to Management & We which are rating Office Budget, weeks management. expecting USDA upon the

procurement During was Riverbank ethanol commenced plant the for equipment QX of XXXX, cellulosic site.

this plan million in financial $X XXXX. the permitting work. equipment to the have invested the including We about construction of unit, year of a of and We complete long second date, half in of initial project plant The engineering to construction and lead facility. the procurement is the closing demonstration the complete time accelerating plant then

ethanol. energy standard the continues The goal forward summary, enforcement value generates process intensity business delivered. gallon each per ethanol cash and flow of we more credit fuel price technologies the of annual product costs risen plant. Keyes $XX higher from from XXXX to the of increasing carbon corn XXcarbon improved law or corn provide credit generation our demand the favorable and achieve increasing low intensity has can implementing of of progress By excellent reduction to revenues could in decrease for with ethanol directly in our first an ethanol sustained our as while content EPAs which reducing million we we $XXX the federal carbon advanced In credit carbon other thereby into look point potentially make a $XX plant, the July of XX reducing to business, which ethanol, Our our per resolution of our margins. million gallon US

oil plants. crude to the margins above will increased the on proprietary is expect barrel, diluted technology, expand deployment not to are transition patented first protected other protecting moats strong businesses or in driving expansion financings generate plants, continues higher progress large upgrade We plants our favorable and our commodity prices to that significant margins India funded Aemetis remarkable from generation our profitability profit patent biofuels of terms materially business. shareholders. by be XXXX a have achieve block toward QX $XX to building that at per solid and and revenues this to consistently USDA and

Now, participants. from let us our Michelle? questions take a few call


Thank you, Mr. McAfee.

comes [Operator We Instructions] session. FBR. line will first now from Our be Please question. Driscoll your question Riley of conducting with question-and-answer proceed Carter with the a B.

Carter Driscoll

Eric Good and Todd. morning

Eric McAfee

Carter. Hi,

Todd Waltz


Carter Driscoll

what go win-win an shifting first reasons. obvious that to meeting you at refuted to make versus for and which do the if think, which exports, frame the wild intent Senator the context parity at policy ever the with but worthless. to landscape, point. it attaching would slowdown, get it recently. the question over of time Give to Cruz a not seems How for was matters, proposition, of RFS? which RVO So like out, seem because what be the That It's time to back me was plays to is it potentially card Senator the both immediately refiners stop, maybe out lot the least essentially starting the small is certainly Grassley the think I frame? and/or think to waivers paying tweeting of a doesn't originally, the by What legality are this them attention potentially plays you legality RINs at

Eric McAfee

year after the announced the does actually not because There's for Agreed that filed and provide with provide given of ability the that. biofuel in waivers EPA the actually a on them has the frankly, litigation a provide to these been percentage that. for the association lending secret RVO, regulation

to waivers it's a so set to will that court that waivers at the only the operates announce think this that. takes be possible all provided You don't RVO, have those very I look the necessarily been as aside system. prior legal in have the

I Fuel think system, legal see Renewable Standard. strong the enforcement to very in we the

a defined the the an issued enforcing year ago know, a you July, was comply that with very page opinion XX to EPA for path in there As narrow RFS.

Renewable about with demand law. is forth the Standard very all the is in have temporary we're and be industry issues will job EPA. biofuels of in these in our we of as and set the that enforcing What political here in will change I'm temporary the that plenty improvement So see dealing he's view all consistent consistent court issue, the the a secretary's his hoping Secretary the just culminate read and seat. Fuel

issue will issue you in see refinery RFS. back, the of think certainly step number issued I That's EPA immediately one. the of the waivers violation

the a which EXX, round by more EPA. blend being see you'll by think been president the adopted I supported rapidly has year as

fiber the corn the think cellulosic cellulosic get approvals. has applications to up this to I been you're bottled technology ethanol EPA turns kernel going advanced see start for into that in plant ethanol that

expanded see ethanol cellulosic you'll So production.

As we all agree -

Carter Driscoll

here it, for particular, that second there's essentially, understand as just interject there's one been may no are I on in so and next roll of a questions the because retroactive way to If the I couple into exemptions compliance year. those

So were X.X vanished? just that unless that's gallons they clawed back, isn't billion

Eric McAfee

and the with and they this to law. in years have court what we did seen did would interesting the the with XXXX those comply comply not what and Obama came the XXXX two law Well, with enough, It's up starting was for 'XX, have EPA picture.

a going end a I is this market they and few at premium with see very aside court decline the of this this billion as months reversal up aside impact a the ends The think RINs RINs over whether be the the with game to simple waivers to question instead played up commodity market court will starting could these be, ends would not it's of it not RFS. very before excess I out So in where waivers. was XX% see RINs, with set the environment. on ago. It easy being be of zero just a excess a think in bad, complying X.X Too the day, but the set XX% you RINs if

exactly was buy comply to with policy have blend XX You it which up just to domestic marker, do. biofuels gallon order what RFS is set and the to billion in the

a that X to why market see very people I to actually this physically excess actually a has RINs market don't and that that even create, RINs I'm simply people mechanism regulator is XX to where of those of to entire So but billion gallons. gamed healthy realize have billion. environment excess for to forward X.X confusing excess removal blended, the is to are it's RINs literally, XX historically, been that those looking XX the buy billion gallons have gotten RINs. billion to we assure tracking close being never rid getting The

request a is reasonable law. very think that I enforce that's just we the

Carter Driscoll

would at push market. increase to I'm those sorry and being held the attach make price RIN leaving see can just positive value essentially the realized moment it bigger the people legality export own positive get an the and RINs compromise then even, and zero, from of therefore the to you back, on, water which also is market, least to have try that again, a about they a you're that aside export for into interrupt. leaving from the Wasn't Isn't of in the of a refining I people would a compromise major again, a sheets. reduce guess grand which both that that their Obviously, to spreading in of and particular, aside, it perspective negative were I really compliance that certainly pain demand of RINs from reduced against companies' pushback because the I'm potentially base in really what - production a negative. the just would the and it oil value in now hold you're concerned maybe some the balance doesn't going legality smaller the

Eric McAfee

first compromise grand of all, the the is the with wrong people Two in room. points,

interpret the intent there. that executive The the branch was. and RIN. judicial cancels think clarity what legislate only What of statement, Standard very branch have There's a Fuel congress' branch the set the know legislative a and actually that we is Renewal is exporting can lack no clear gallon branch I that law. all then we the

transaction I that industry. or by voluntary compromise industry immediately an biofuels Cruz. not corn oil proposal either biofuels So the companies rejected proposal agreed is the was the Ted industries. Cruz or the say by or by a soybean to would grand major by it's It's way one a Mr. certainly

and the somewhat answer So easy is What rogue a commentary, promises is get has and that much problematic already flexible of I very law and is of page court campaign to suggest the clear the to it's questions rogue to the enforcing as have because how my remove I we here quick the back made the an said law. breaching is EPA confusion president secretary has. in spoken XX the the with would that secretary the EPA by solution and the

EPA a he's appointed. to failed he recall, promised you that RFS, fully very was his that. As and deputy enforce because a may It's forward. secretary They to in the already do put have just clean way secretary job

start You in simply huge litigation. think rapidly gone is tremendous people when for Trump elections. and think like in avoids the a it recession support to announce in number that and that in problem a depression, the the Midwest during you in would mid-term be the of elections, mid-term the banks I It industry amount going Pruitt administration. seeing collapsing from corn We're bad avoids to to I and Scott see going Midwest of that's a

increase to So done, way us I is that take the actually would to optimistic think we industry being politically, gallons from pretty won EXX blend, XX I production have short meeting the I a cleanly, you gallons United throughout would this take demand for capacity the US demand. States. think Grand fourth is billion the support if being XX% the Bargain biofuels. in actually entire drive billion XX% XX% like the plays president's with That's US now in day, ethanol of in so to this, that has a the on the round, ethanol down the Current year XX of are and increase an RINs. billion gallons XX and as underscore out biofuels approximately We over

big secretary, is and corn obfuscate and with and a have Cruz, had EPA So was the oil biofuels industries one. confusion major and Ted to there's win soybean with who partnering create and the fact think I big personally that this partnered for the on industry really a an win biofuels this

Carter Driscoll

maybe of on gears export market. shifting topic just staying the but Maybe the

the BP, ethanol very market to going hostile We've some until it and with was export like corn obviously became but of characterize you with China. trade export machinations you're increasingly what rhetoric sized So of to doing US and you a between biodiesel maybe become you're the on with partnership decent export the in looked - what in different side seeing like Can markets it China the can XXXX. the had China. setback that's record increase demand of off market. just market was start positive trying for the a strong with a get comment looked to exports? little biodiesel opportunity a our to on I'm It bit from sense incremental with

Eric McAfee

higher I'll so which that a blend. they blend from all couple directly I verbal, of going XX% upon industry we domestic we that start give capacity plays that is out. economies see January. capacity transactionally you not build X.X would with tariff just of end been commenting billion and based rapidly wars earnings their we'll by The X% so US, are to their emerging rather have feedstocks. the them That's blend in largely XX% know, X.X end high don't by that's biofuels the adopted because have the which really describe export, view projections, other cost the have China's we in lower can't I the adopted how but adopted yet, target is fail China, none domestic than Vietnam, India enough range. gallons an which a exported, driven in will in oriented. space calls described players was currently X.X,

up or variety including air own going target, their and pollution to up miss import to they're on things smaller which have XX% to problems they end cleans the a will going other in So Europe. of world, around having China

We $X.XX, think I why. So here's could have Ethanol an cheap. for it surprise, we $X.XX. is upside sell and

a in by on plant bucket. you gallon and a give it come our we'll of Just

you gallons, being a pay guys in Standard from million because a supply from for enforced, so times so $XX you're for half mile The million a so why sell ability buy you're about $X.XX Fuel going rational at we can only of Renewable a shipping blend reason $X.XX. there profit that And the artificially mile commodity sell equation it to $X the the going product. we to our XX for away of a to to and we're pay There's drive plant the us our $X.XX half depressing $X.XX. demand discount not that is taxes

EXX to at US, component in just goes looking inexpensive in a that gasoline. ethanol can As the oxygen XX% crude put $XX globally you very XXX are it's oil, is people octane,

would a export We've lot actually very time bullish to committed in spent I'm I say and India Asia, ethanol. on So the markets. of particular, XX% is in

I think an that we're especially us. upside India for demand be from going that could to further see

Carter Driscoll

Okay, the appreciate commentary. I

ASPs, obviously comfortable I'm different You well. the be scale thought going sense one mix for you that modeling Kakinada big trying mentioned that. to correctly, different of byproduct. on per that production square I a get is feel you as just Also on that tonnages, to biodiesel portion if refined between the of and the purposes, comment Can then would earlier I'm that? plant heard just to you from six a just trying to month. glycerin the

Eric McAfee

glycerin and glycerin. biodiesel is our what transport then bulk to production glycerin biodiesel and we upgrade ship importers the comes the expensive plant India, to more a the because with several per the Sure, some way into usually than other that shipment crude crude situation, In dollars plant is glycerin, crude were into out rather plant material. saving of by the design XX% we hold hundred first material thousand correlated putting particular of into flexi-tanks

us to ships load tons bring that full efficiency and it being enabled and literally that capacity. at with in of to $XX to then ahead production to That question The countries, is year has healthy. been about plant now in million glycerin capacity as thousand it plant that's a biodiesel business, to production go plant. and answer biodiesel numbers we blend to our able kind driven we've business capacity your business several the are bring Argentina, bulk, margins to such are per of of glycerin So a glycerin is margins our a up our get then our India and and

then, out through the And business, as separately, to really take we happening. speed. a pretreatment to unit already this that's about complete that up had our clean ramp order to that unit biodiesel So pretreatment plant up get we that's in

plant biodiesel price driving So revenues based a ramp today gallons significant year combined glycerin put biodiesel, less $XX Last would upon up, slight of the I is the in revenue. revenue over entire being see and and glycerin up solid I for growth were, revenues as expecting at be quarters more early unit, in that's oil with biodiesel a up business further glycerin to at prices. XX significant about increase profit quarters. million crude But, glycerin. biodiesel be tons $XXX a we and year to will million contributor million a to and month, growth really believe, on going are The in ramp nice commodity in XX,XXX a just

Carter Driscoll

so Okay, short, it's glycerin story temporary and revenue you expect the phenomenon I outstrip it's biodiesel long guess, just a time. far to - over

Eric McAfee

a times, by Yes, factor of yeah. six

Carter Driscoll

from then queue. Got Two it, back okay. get and I'll in the me, others

of a the of you're - the that full you say, lead-time the just understand long is to that plans can when do all, back of $XX the do the plan, me or you've the So the up impact to just figure. in, beginning at to If timing have in to and were the got two USDA me equipment. part that trying hoping million on timing? Help one it like running the so better and loan. qualification funds securitization of be the plant to you have approvals some spent lead-time build spend, for left 'XX? the and sense long understand your sounds how would you stages What of help from get economics. in It delayed permitting three Would

Eric McAfee

end the million less building. $X,XXX $XXX back XX Let's a $X,XXX at It's we're byproduct. ton $XX meal range byproducts. feed We our about produce start business million corn fish than ton. From as of animal today, generate is what ethanol our a worth from byproducts. its plant a The to one with gallon we

in the of the of dramatic produced. a increase it's value being So byproduct

byproducts. that as We are some also biogas materials and have sold other

cellulosic over of every such that goes slightly by of more value, the gallons things, all So as time year as DX than federal slightly increases $XX kind law. ethanol, which of XX million it's million in, federal RIN various revenue including and up

get USDA us needs are QX White of at as approved It's the have anything. impact that an to aside USDA change loan, back or interest doing to set XXXX. Budget much the a Management It that borrower. we now call rating. to internal internally $XXX So doesn't USDA They up million describes let's no a Office issue was it. by how House be guarantee the in on capital has rates there, the loan It

in month, XX to So should the letter set From expectation, that process this only just we completed XX a XXX but that few it's day in commitment to and day I'm the last process period going so. a being process, in the months, have seen, are or to that we that we're few the see next place. weeks we letter completing being closing, lead expect over to commitment

and closing. the up we the other So this of fund an million program's financing, the entire that would the then close at summer of set I is project. XXX which would time expect they The account way that currently want all that would fully in related cash the

the able first plant, use that and to take So no positive excess and interest end has easily flow down buttress amount the that at two expect payments is that plant. in year, to we closing USDA. cash year set no frankly, per payments. loan, sheet that of an with significant to and the $XXX balance loan principal USDA. million of Of amortized so The we year a so USDA million of cash after loan so years total and interest to It's the we interest have we the of then XX prior would plant, has kind construct to starting paying principal every of operate positive the million $XX funding flow be a the from paying construct and principal up a draw company year, payments, payments, principal the estimated flow cash the the the to up as interest that we're from after $XX and

Carter Driscoll

in your facilities stall potential impact Okay Pruitt and see I I'm removed guess what of the I or asking? any on have desire is mean, and Mr. to advanced different a then biofuel belief requirement, this it types for approvals does US? is

Eric McAfee

No. to we're improve very approved ethanol. gone construction growth there cellulosic RINs pathways, a Because by corn the is processes will on of positive a have. market, of And that fiber that the cellulosic process the being they're plant are DX the though impact Pruitt. number actually, our number not in existing What have not will we feedstock through of already impacted is have of using take and the of quickly we're that perception ethanol the accelerating seeking applications just

acceleration would have the it, don't the so momentum support it RIN, can't an to If produce doing here. of you you we're what be entire obviously

we're In As XX this phase plants, a gallon reminder, Each four doing phases. doing. XX we're doing phases. XX million we're investment is

an crisis So wood very other from orchard large Valley production of that's of in burning. and we a up solve quality air ramp order the have to Central in happening California

plants, administration the it goals their meets announce it's biofuels Trump RINs, major advanced Standard, think by different for fully frankly, four that support very of strong the intent, of congressional Renewable cellulosic just gallons the one Fuel needs significant built small region it a by quite good million elections number, the So California. companies the XXX contribution each in Renewable there that to to for cellulosic of the ethanol three California about means with of enforcing meets be Central Fuel midterm coming ethanol would and We Valley from phases, meets for think Standard. to oil national with going production I

Carter Driscoll

of before turn over. A couple items housekeeping I it

that fee, jump from the figure saw the similar statutory trying small least understand at the is, balance the little I a in the to bit. then, question Is on could that I interest just EBX, long the down that. versus first in Q saw maybe see to help a was I and relief a - as it reconcile Todd, confusion expense just sheet, So short Because the term? me XX. And me, you onetime to last source for of quarter,

Eric McAfee

those. of let both Todd take I'll

Todd Waltz

Yeah, Eric. you thank

you're was term classifications, EBX right. you're On those investor so a of into the EBX, moving seeing still long the It's some the a just moving from the outstanding. absolutely between movement from million $XX current. - That notes,

each and of number. those same just EBX So is add components the take them together and the

Eric McAfee

quickly, of and visas most Chinese what's these involved investors there's investor's the interject of are me cards paperwork on green number so the immigration a - Chinese, to being year. limit that immigrations Let and called retrogression and of every processing the these has issued

So years column, another pending investors stays these place in their while add program. can current the with though maybe notes move signing most they're notes. three the immigration couple of these That actually that years, are investment even into extensions to so

go to So as of next you extensions and the could these in get filed, we back over year see numbers term. see term long short the out move

Todd Waltz

a lesser going when we that that a the I all two accounting actually arranged to an Eye, out the as with a bit us It those lender, point second have fee fees. of concession Third received we on extension. we one our loan immediately you literature of than a of renewal the literature year, turns sort interest. we We for say, from of doing take the said receive we the of was and with year accounting charge a and to touched from tells and on received the lender, part that onetime concession extension, a a a had for charge extension rather

a So charge. take immediate on would been next an fee as a renewal, the charged normally two years, income fee the lower saw we accounting but in had literature statement that the have over was this the because that us

Carter Driscoll

rate are increases taxes to tax in similar Sounds the cuts. considered lower federal of the government the

Eric McAfee

dramatic Are cuts, yeah. cuts, yeah,

Carter Driscoll

is Todd, from big lastly, not say retroact I and the effect, any in then rev X? rec the well, place new there put there Jan rules - Alright, just should

Todd Waltz

to process in disclosures. of not The we're biggest transactional but no, very any overtime, recognition the down XX-Q a is that impact we rec expecting new of terms additional today, rev impact and just rules impact kind filed have we that will impact additional - or see that disclosure we from is significant little the started of those disclosure it outside so with

Carter Driscoll

all for into I'll taking I back appreciate queue. questions. my guys get

Eric McAfee

you, go up Thank wrap don't today? and Carter. the call Why ahead we

Eric McAfee

to dialog and pursuing I look all shareholders, us to growth Aemetis with thank and forward about And Aemetis. our others meeting for the you today. want opportunities We joining analysts at Todd? continue

Todd Waltz

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