Aemetis (AMTX)

Todd Waltz EVP and CFO
Eric McAfee Founder, Chairman, CEO
Ed Woo Ascendiant Capital
Shane Martin Stonegate Capital Partners
Call transcript
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Good day and welcome to the Aemetis First Quarter 2020 Earnings Review Conference Call. [Operator Instructions].

As a reminder, today's call is being recorded. It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis. Mr. sir. begin, may you Waltz,

Todd Waltz

corporate Thank the earnings you, earnings website first 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 filing We with to Securities aemetis.com previous quarter releases today's Melinda. on presentation, conference suggest at is download visiting presentation

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

today's to performance, statements, respect with and During the be without including, forward-looking with plan. and call, making our we'll execution limitation, statements business of to expectations plans, respect financing activities stock our future opportunities

in be statements are considered forward-looking made differ that that Investors in statements made. must all that the cautioned may events and and this materially and These uncertainties, appear from risks SEC statements call our future involve on the filings. with disclosures conjunction cautionary warnings

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

directly non-GAAP a to quarter this release on discussion ended GAAP. include XXXX, of is the website. non-GAAP XX, reconciliation a which Our the comparable GAAP on included available will our supplement is in to our of based call as measures most financial on the measures for results A review measures earnings on March

on extent share-based deducted amortization extinguishment, expense, such expense. Adjusted EBITDA litigation contingency calculating income the other intangible is defined or in expense, compensation expense, expense, and to as net income, and depreciation plus loss tax interest income loss net accretion expense, on loss

America $X.XX Revenue compared sold of of for in an XXXX, million quarter per million the of to gallon, of gallons, was the quarter of to North first results Now million XX.X for volume gallon. million I'd financial first review like the during the first XXXX. $X.XX $XX.X first at compared average per was first gallons price to of $XX.X compared quarter quarter the during quarter ethanol XX.X to XXXX. XXXX the

a was metric quarter sold biodiesel X,XXX to compared metric million the XXXX loss per first first first the quarter quarter compared was ton tons decreased during ton X,XXX with to from to first a loss and Selling, million of $XXX the metric per India's for decreasing $XXX,XXX of price administrative compared the general $XXX,XXX ton. XXXX XXXX. during $XXX $X.X $X.X to of to of Gross during quarter XXXX. ton, expenses

during compared million $X.X decreased $X.X million the million in loss during of XXXX. XXXX first including LLC XXXX, million Operating loss operating A Series first period the subsidiary, to was of XXXX. Biogas in Aemetis of $X.X accretion for of to the compared - units quarter to same quarter preferred quarter expense for the of first excluding $X.X Interest the

Additionally, Biogas first XXXX recognized stock preferred of during of the our of the of during initiative payments accretion its quarter to Aemetis $XXX,XXX $XXX,XXX compared on the XXXX. first quarter preference

first quarter for the Net loss XXXX the quarter at fourth quarter the XXXX. of first compared $XX.X XXXX, to XXXX. of first compared close of to the of $XX.X a at million net $XXX,XXX of million loss increased $XXX,XXX Cash of to end the the for was quarter of

our That completes financial review.

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

Eric McAfee

on carbon grown gas we've byproducts Todd. transportation, to and carbon in biochemicals business Aemetis lines low renewable fuels, founded and natural below you, into Thank markets supplying renewable dioxide. zero focusing four was of and including carbon, XXXX and

ethanol, XX gallon capacity more India million production near XXX U.S. portfolio alcohol is our capacity shipping own than including and began California, Keyes, hand distillers we Recently, corn in million in We year per production refined Modesto. and oil year plant glycerin sanitizer operate grain located facilities the into and rapidly a sanitizer market. antiviral expanding with gallon and per the

We own City and XX of refined distilled million Kakinada. a east glycerin year port biodiesel gallon biorefinery India capacity per and coast operate of the also near built on the

you ingredients in key largest India. high glycerin operates is may and are high quality in largest the refined the alcohol the alcohol plant know, in glycerin As quality Aemetis of hand one two California, producers sanitizer. and production for refined

ethanol the that our our to The provided demand the employees, during began operate of while cows our global challenges supply COVID-XX significantly. XXXX feed continuing decreased biofuels XXX,XXX dairy animal to for health a including period in more protecting California crisis which during plant business to to than QX time

to to Essential continued alcohol. To operate price ethanol ethanol fueled California declined interruption. QX and sanitizer a gas Aemetis during produce while operates of QX our rapid ability been due a recently California the Federal demand the recovered has of continue three extent, to and significantly our has our construction alcohol and then production hand natural plant the of without in large and project plant conversion to Critical Infrastructures, in to operate renewable

In response sanitizers. produce broader and hand and and industrial care to hand lack in approval plants our few produce alcohol We Treasury delivered thereafter, first issued quality markets. the sanitizer plant for a installed for higher fuel upgrades March XXXX, Department within our allow to the severe to to alcohol California FDA personal days sanitizer ethanol ethanol to an alcohol a of late producers to

hand for Grade Aemetis producer to in months. and received the within continue knowledge, a to is now Aemetis April, in US. we of ethanol our the western largest certification. upgrading producer distilled US a our facilities few In invest quality our of Pharmacopoeia To sanitizer Food the And spirits production alcohol achieve for

sanitizer driven and of the consumers. a schools, products and and be wipes of sanitizer, sprays quality expected alcohol is market private antiviral governments, adoption Our to used alcohol for alcohol expanding industry markets by term market the for long growth production high hand by

and California. near at a build our a we to fueling About digesters and ago, carbon to launched about to digesters million gas project installed local natural in gas conditioning a signed diesel by the production biogas ethanol of to dairies a the a displace connecting gas carbon and year $XX plant plant funding gas renewable ethanol reduce equity our Construct negative natural pipeline dozen trucks. content renewable natural to our reduce

now two have and at four a agreements to the now dairy lagoon participation We dairies about and permitted designed XX plant. dairy built pipeline cost digesters is million. that signed our connect have digesters tested of ethanol a under construction with $X And to mile

signed about we cycle the now XX sheets of and to We're in biomass waste of California and engineering gallons financing an final fund into million prior production facility other year. per advanced commencement convert to In procurement waste of the XXXX plant. wood ethanol financing of and to ethanol in term completion orchard cellulosic construction project

growth more million reduction projected growth and planned to year. increase reflects initiatives these of flow certain than more gas the completion and The ethanol per million in per $XXX as cash cost of are to This our and well renewable combination revenues our waste cash new $XXX of annual completed wood natural as flow expected than the upgrades dairy year, and production planned existing plants, facilities. revenue and

carbon positive during quarter regulators With of the fuel of businesses California has XXXX. four first of progress and each consistent made credit strong standard Aemetis low the California continued crisis, our support in

operations expanded oil. is a to other plant glycerin plant unit, in review we construction, fully upgrades lower of The using unit capacity plant in of XX feedstock first pretreatment in India. enabled installation waste India cost and commissioned refined of new including unit, biodiesel completed Let's After biodiesel that our the the XXXX, year. pretreatment and business into our plant million of two investment and toward process per boiler upgrade now feedstock the gallons new full years

restricted India. but month, refined continue biodiesel at we meet and biodiesel refined ship from stay in inventory. to production the to The expect India our order glycerin India expanding home in and This begin glycerin to needs plant we at production has

to the domestic Though has Since to of prices, remained despite of the declined, increased oil due the price biodiesel decrease that oil. sold price price along remained the have diesel largely in with diesel India crude our prices linked price steady, government India significant the biodiesel domestic declines. in unchanged India diesel crude crude offset the our India to of oil, the of price has taxes in price global

In our owned contract tender Universal that addition, in the to consumer for subsidiary other and announced response last companies process. India have with sanitizer refined government hand public we in awarded products. increased prices biodiesel In Biofuels three a need supply Indian marketing the oil year, glycerin million was May of $XX the

requests award supply of oil should for month. and XXXX occur the next company issued the purchase marketing biodiesel year for been in Additional agreements have

contracts. participate We a as expect these to key to biodiesel supplier continue under

weather colder high feedstock primary the XXXX decreased growth of And a During has revenues constraint from temperatures. seasonal is late on the January cost in biodiesel lower months India significantly. the December in of now winter and

toward major three Our sustained businesses milestones profitability. increasing achieved the revenues in U.S. have and

review input ethanol Let's to the alcohol market. the of our we've biofuels, our ethanol the of supply business. upgrading plant where strategy gallon reduce Keyes, allowed and we X.X the a California that biofuel, ethanol sanitizer our market now lower to California to added technology costs, to produce the of India, billion value and we waste California been use ethanol in feedstock lower cost intensity the significantly carbon the Similar our increase

carbon units and sanitizer the this systems doubling now quality week. filter carbon higher amount market, for we're the ethanol the produce of To installed filtering we

We of and exceeds third to standards upgrades quarter to U.S. install of are high also in alcohol and order produce quality to our food grade that in system engineering planning distillation XXXX. the pharmacopoeia

plant been A construction COX completion second Messer dioxide. has of ethanol May, now capture next we and our Plant commencement to Keyes the and the early of the shipments commercial newly Gas constructed to upgrade carbon completed. In to to plant reuse announced of

years Aemetis build COX the to liquification acres plants project leased Messer a owned of three development, Keyes by about adjacent five ethanol plant. After to

are than users. for COX tons COX produced beverage plant COX by per producers other XXX,XXX converting renewable ethanol sale our We year local industrial and of now to processors, food liquid into more

plants of the U.S. in about the COX Ethanol XX% produce

or of to COX ethanol received So COX is cash plants. COX shortage and expected from per a national idling About significant to sales for of plant. the occurred of year land has the million be lease $X.X due the shutdown

grows a per $X reuse year and over XX(Q) expect tax capture years and carbon per rules. initially next to IRS $X million to calculate under about the is worth million that year qualify also for we the COX federal five We credit

working financial to partner. tax a the We credits monetize on are with arrangement currently an

plan million Technology a is for corn upgrade Mitsubishi Keyes $X.X the strategic ethanol implementation third financed of a and system the by Zebrogs of a million Chemical of Japan the plant. as an at $X PG&E time The grant a to construction dehydration first Mitsubishi membrane

The per ethanol was to February The unit XXXX expected ethanol. carbon delivered generate Mitsubishi usage is unit decrease gas is And the once plant process. designed dehydration natural Keyes estimated late year petroleum implemented, and $X flow. in our to million cash installation reduce an is increased and of of in significantly the to intensity the

A million energy to grant fourth $X is to our artificial higher displace Keyes decrease through carbon that energy system will from intelligence solar sources. Commission. carbon the energy management biofuel, plant the an This intensity use upgrade system solar the microarray the Energy of solar received a and California of

Commission This Keyes awarded system the reduce the grant. exchanger was Pacific plant million plant grade that Electric vapor mechanical is significantly. was Energy use sixth million efficiency a awarded from project is a a to gas grant upgrade to to heat natural And California $X recompression Gas expected the the is that Keyes that and high $X.X

Keyes each impact are low of generated $XX if to number and occur plant flow year. reduce expected enforce increase costs targeted XX% up improvement in not the decides gas natural biofuels standard are petroleum increasing in combined usage of while the to at credits profit carbon including million to be these plant, is projects expected projects fuel margins The the the a to EPA per These cash operating existing year federal that Keyes any at laws. to by

up is powerful are pipeline our heat. Methane, project. gas, dairy capturing About of as XXx earth's and review than methane briefly known potent natural Aemetis greenhouse a gas digester is the to commonly at on ponds that from waste farms. more California's dioxide carbon Let's XX% dairy Biogas emissions

reduce California XXXX, XXXX late known in from biogas dairies. replace carbon Senate Biomethane in fuel can as of mandates air from in sourced gasoline capture the buses Bill dairies be emissions, methane and trucks damaging significantly law used to reduce and diesel the passed or emissions that to To pollution.

negative from California capturing State the it biogas annual generate lowering with truck change, dairies climate related while mandate, for way value funded dairies dairies vehicles. $XX biogas costs to to and fleets believe intensity into create is that reduce renewable about has natural digesters build million carbon gas electric diesel to systems. matching We Along converting biofuels an of for and grants excellent and and to

and existing supply is our pipeline this injection to animal completed, is Aemetis California in about relationships approvals in with on pipeline X that only feed the plant in biogas Based until who X we existing are of as infrastructure obtained our XXX ability use manner. utility use dairies companies positioned uniquely can ethanol and believe

the year After a more for a Food of grant Department about build work, $XX X first total California year, of dairies of equity our financing than matching the and a development biogas of X of in we financing Agriculture project $X and grants announced award project. to and last from million million

the pipeline completed we dairy ethanol renewable with plant natural connect digesters X late an to are QX expectation Aemetis building X-mile gas during the with now first XXXX. of of Construction was revenues beginning the digesters the and

XX We and agreements next end the lagoon by participation to year complete of have plan signed diaries approximately of with the XX XXXX. digesters construction the

finish our on carbon zero an Let's below cellulosic ethanol Riverbank update in project California. with

Aemetis the one publisher. by number was development world's largest biorefinery California to waste value as with in pleased projects in biofuels near daily under advanced the world the were Modesto Riverbank the named Digest, Biofuels We

ranking half period. The contract $XX the low-cost, of for almond fixed cost about contract result X wood ton Aemetis a of years price, with project and per a its the as XX earned first number for of walnut waste our

plant a to at ethanol in ethanol. LanzaTech other a expected in of operation patented more $X worth Northern production gas than is to and microbe plant the and is XXXX technology from opened steel valuable technology. well gases as high-value be production in The Planned as gallon, commercial now meal that per converts cellulosic that China full produce byproducts ethanol our fish of use waste LanzaTech

to X equipment, the California Agriculture of funding tax equity for million and $XXX Energy under XXXX, significant the million Commission a conditional offsets During the fund financing Riverbank and the to we project, XX-year related million a Department program. for a commitment $XX.X announced U.S. of that grant financings debt XXXX $X A project. engineering required letter waiver signing Biorefinery

the to bonded of working the loan for the to the expenditure budget focused cost. are engineering of project. EPC That will plant We construction the the completing required capital USDA match We're current for update on a maximum negotiation contract. include

positive to The from and Riverbank ethanol feedstock. demolition more wood generate and cellulosic expected flow cellulosic ethanol XX of by million $XX waste, plant revenue than as of low than million is forest orchard more cash per year cost vineyard, producing of construction

engineering we production closing Riverbank and sanitizer completing unique financial construction contract. for for begin ethanol rapidly quality and on required the to holds procurement the signing Aemetis is that the the summary, refined both of market. In plant higher The of the expanding believe dependent the glycerin with construction work position a of

in at a renewable fuels India low of production profitability our diversified XXX% The growth the begin of in The was California during in carbon the of India realized to in two XXXX. upgrades and India. Keyes achieved XXX% XXXX repaying increased have plant revenue also related subsidiary. debt margins and QX We plant are attractive while to markets, long-term expected from to biorefinery our be

cash Riverbank waste renewable late gas abundant our high ethanol from biomass dairy QX cellulosic rapidly deployment expanding performance Aemetis low Biogas the the digester carbon fuels produce from cost production Aemetis plant of the at of low to planned clean feedstocks. positioned has patented to of LanzaTech positive and XXXX. flow burning, expected in begin is first pipeline production project The And technology

Melinda? our call participants. take Now questions few a from of let's


you, McAfee. Thank Mr.

first Ed We Instructions] now ahead. session. a conducting will come like And go question-and-answer it Please with [Operator our looks be question Capital. will from Woo Ascendiant

Ed Woo

on taking you Thank is the project. for my question question. biogas My

it's of up You in that to guess in ramp current which mentioned will is terms going start second quarter, that quarter. quickly late I How the revenue? up

Eric McAfee

two We to are have dairies going online.

revenue projected of revenue the rapid pretty ramped initial a project. to be our approximately So XX% our would for

So projected the it's revenue. about XX% of

a the next we just announced grant to awaiting ramp in we But in then we'll as up. additional up expect additional starts early piecing are over months, XX rapid application That XXXX. ramp have filed that have online, come dairies And we rapid September. an

pace. no will that be phase. to after this will dairies we at - to Soon dairies be dozen really we're full There in waiting a end with first for construction up remaining the nothing complete about

Ed Woo

has the Great. mentioned this your month? to resume I And that you class guess then is moving production India, of by back suspended, to you end but been, expected

Eric McAfee

approved facility conditions That's the relaxed the our operation and they've lot our current of frankly, They've expectation. India. a in of

the The And is increased getting things organized demand just we're decreased. really price, nicely. for the of production. of So in never process and in back course, diesel

market And getting it's attractive looking forward for again. us. So going production to we're an

Ed Woo

And will then the the back as plant in to pretty terms again. up there up any be once able is you started, it plant of as simple with you that production down Is getting back get or challenges into quickly? full technical shutting and to starting

Eric McAfee

have winter actually already. maintenance cycle already we we every did And the a Yes, recommissioning.

So basically being ready that through to process we're restart. already of

process. it's quick So a rather

Ed Woo

ethanol able well? from of you Congratulations have market. sanitizer to I XXX% Great. sanitizer into being ethanol you make on the market, into fuel the able hand And as to the ethanol guess, How back be change are production shifted shift or business selling ethanol the was completely then for difficult you your fuel your into market to, And hand to market? pivoting plant. it still

Eric McAfee

of out with ethanol is, plant, order difficult do, a obviously. really fuel because a fuel a blend you the very what it gasoline of of combination because come there's that producers of cares to is shift nobody qualities fuel alcohol The variety for ethanol

market, in matters weeks as by on issued three could carcinogenic that FDA a two the produce of focused the there composition well order hand their stating FDA, they been tremendous And after this product. fuel as disclosing alcohol on included actually operations unless in amount the went acetaldehyde so about sanitizer a is through for the one alcohol of the that steps fuel producers April not XXth, the business, notice fuel alcohol by are with FDA. some has business which And

have very FDA closing carcinogenic had not plants a down a acetaldehyde. and levels The to that about of went hand obviously then thing sanitizer. higher good It's in

So, the interested in components low easy acetaldehyde hand having an in not seeing being is that FDA a consistent and is task. and other quality sanitizer not

our why It's filtering one doubled carbon to product. to fuel reasons highest achieve of be investment alcohol this which is we another we've seek what made capacity have our the week, is is which we producer quality substantial

within be and medical in food the quality, couple to traditional shipping FDA then grade be the alcohol. months, And next quality position a

improve we're open our the a changes every at So and process product. at more up basically going high products actually quality a quality even of change, mid-summer And markets, of beyond are seeking to consistency very variety by through that be sanitizers. which of a

the and done that industry expansion completed really new orders. it's an been it's stay So business entirely home into an of during at the

can So issues meeting without industry new of ever you where a who you is know conducting a substantial the launching and them. amount customer imagine of the don't transactions

that and achieved path. continue along we've So that

Ed Woo

for currently FDA it is or on? Just the meet your later clarification, requirement meeting ethanol will

Eric McAfee

March the prior fuel to late we for course TTB and of were set producers. as expect that to separate upgrades, in meet rules of etcetera. XXXX over place summer complete FDA system we alcohol issued a that requirements were distillation We currently meet There's the the the that

be no the XXXX, to December waiver will us. then of temporary which So ends longer relevant

be of to quality to the be might to grade the So, the chance and make try food fuel our the have companies get standard, other at six is of producing standard. ahead to to standard months investments before alcohol long producer a termination target the

Ed Woo

sanitizer on selling is the Great. you the into That ethanol comparable to market fuel market? sounds wonderful. that into just the My the last is sell Is hand question economics.

Eric McAfee

go it lot it's it see a market. grades that’s is that and toward FCC change matures different to will continue we as because in price going No, the USP of Pharmacopoeia And a discovery the There definitely how Food and on market. Grades. we'll

So, quarter next we'll matures. see pricing the two, over or the how

Ed Woo

may. Great. one last question I And if

view market view? curious love it's oil hear lot now. the a on your about quarter. changed Just just current last what's to But your Obviously,

Eric McAfee

rebound was view increases any to dramatic in that demand, already a seen current But we've My is we're which there going other gasoline market. a than significant see decline.

the the they here have barrels perception make make demand. increasing think of finally a in gasoline million out a can time, more figured can million will So, Saudis day money barrels XX be At X I selling they same than that day. the

trading along And the so $XX, in oil with in days. with other participants that in OPEC, from we price saw $XX them, of and about constraint participating market went to XX

lid view there's constrain personal and shale plenty market produce. for market the $XX there's folks at $XX oil quite continue probably world my will barrel as we're and a Saudis the in the the oil the in Russians that a act production a to of available on So, and oil long shale is that time as a oil so

And question price for There's gasoline probably that. others no oil be while. demand a serious of so absolutely oil, about will recovered. to Saudis is the $XX crude $XX If about and get here

year, be third Saudis but in of this maybe quarter will the could And of the control later The price be as early as fourth sometime so oil. back quarter. the

will they of a by oil supply shale doing. get crimp simply Saudis At very price debt difficult guys oil in the global of $XX committed the have see at would from on to the capital of surprised to oil. time be the price to forcing markets, that not year, are and get of putting all more time, the end they'll to to try If point it very $XX a the this, $XX a by a which

think the that win. keep scared running play guys having the to their And I shale for the rigs bet oil Saudis will So is the market on badly. so

end in they the their the or first by to we XX% decline the So wells. year, of to And to have rapid decide in $XX XX% could of the oil because if are more a serious, a crude year, guys if rates shale drilling keep Saudis of we'll invest to. Saudis or massive the to crude have price have have which increase oil amount $XX capital oil the see

Ed Woo

Great. Well, thank you and good luck.

Eric McAfee

appreciate Ed. Thanks it. I you. Thank


apologize. I Next,

go Stonegate Shane Capital with Martin Please we to Partners. proceed. Next,

Shane Martin

give guys Hey, maybe customers for questions. on alcohol guys, like follow at before several be Can to, your Is me singular an thanks taking that revenue And then my idea And is this again, how was idea the proof up purchaser quick output looks of than less an or It from of right quarter. kind me. of it A high now there? would time? think this up. one targeting you X% much you your also I some a it intermediaries quick of in follow market?

Eric McAfee

expectation There that And and think, product or shipments have a March to a our until because grade XX. in grade to going days sanitizer three sometime fuel were only we're blend I approval and USPA two FCC on was included product summer. the is the get this first of quarter alcohol we

possible which line and time it's to amount, for going actually sanitizer product very very small to ethanol. of just fuel percentage balancing a At our a would be product that going large mostly is

trend. it as an I upward see So

customers customer more a than have probably more look at XX I is list probably dozen it or customers. if We had

for exist coming international entire that emerging have there's markets including markets, not we an And opening do customers markets. those large from before. And up are bases did in so customer new market that we which us are some but have

probably second hit So us. then I think the a our going it think to business it matures from think XX product going with that will in way when it's be quarter USP stable will. third And will the to of we production to sustained that probably quarter, the customers. with the XX of high consistent if we market maturing quality I much ongoing And stabilize be

Shane Martin

revenue $X.X should annually or there into then is you ramp sort of some sort that carbon sort the well decrease would Great. annual And system about benefit Would it next to again, of dioxide increase? up to then as it million on that that my Is have assuming guys switchover expect market. question you. still And there's of it there? capture you alcohol the any from or mentioned

Eric McAfee

Good We million additional credit that questions. year $X.X And $X don't for the expect on million five that monetizing do we're per The every an tax grows million to working much. pretty year. contracts. that we under is years little a get much long-term next change over $X to

impact amount And of But the is so the capacity, does of off comes ethanol It overall hand revenue the running of in COX. at opportunity factory year. million sanitizer production COX not the per obviously or amount excess produce produce. $X.X is is here really the fermentation same of we It we process.

Shane Martin

there? volume the kind me have and maintenance scheduled related Okay, any you then what percentage just for COVID over attributable general great. to due And repairs actual of guys to was a give shutdowns, then sales was you the the switching decrease gears to Can the color side. feel what India that of

Eric McAfee

March impact. the inability to in and would volume February restart was the February February the say I which in India. had is of repairs, not and result in have in would operate that much early It were declines completed largely

prior we would shutdown. literally expected twice if through And year have have so the to in have flowing would amount of rate and we early this had tremendous not the of February late a products March,

Shane Martin

and as needs And for capital year expectations as great. over working last CapEx that can year me you give this guys then then have? any color this well any on you Okay, just question,

Eric McAfee

key of a already been working term where sits of loan several vendors. our able perspective has substantial we capital on - increase from amount Working free cash. been on of capital, our one debt an hand we’re operations, funding have to paydown India from is and amount

amount have vendors reduced replicated to extended and have status So us. that our our we in India of what in California cash our

from our grants so we're expecting capital we've positive combination partially about is been the with of we've operations. of done have been our more $XX it's million of has from in expenditures three already. And in through $XX the flow fund the invested as working well And flow received things, a to as and place that cash half already doing capital. operations million drawn cash But that all from already equity and drawn

at which time Riverbank in talking the in they we which largely described the And place, and But throw haven't largely have in activities COVID-XX about why financings, all we plans. are So the say other fully we activities additional closed because subject except future some conditions the our all to they're project I current yet. funding, financing our requires for of for project, funded we're future financings. should

Shane Martin

Okay, great. question guys. Thanks taking for the

Eric McAfee

Sure. Thank Shane. you,


Next, to Tom Welch. investor, Please proceed. we private go

Unidentified Analyst

have Thank really you're I on Everybody talk refinancing you. you about that Great EB-X? one question. have that only working future have. besides that covered plan I But you questions can do any else call.

Eric McAfee

I by That's up a of what and would being I had, their saw down breakthrough the three put year what EB-X you expedite called earnings to investors. move a our investor to XX quote day morning then in. there process interest It is a this all process. as had that that major application understood EB-X release takes should the a reviewed. able category says. to is U.S. national in say the be that program, In getting otherwise that regulation And the

our go in U.S. and the sitting kids you could be Each shutdown the to with had spend new your U.S. and approved And have so the your to interested change investment to days hundred schools the several that And prospect the condition have family send It's XX a by dramatic process. investor when we within be move India, and members. time happen. of attractiveness in of way. is $XXX,XXX investors a

we XXX we our that have for. our investors job plant showed in studies qualifies so And

And for our could that's week. tremendous And in the amount a if do million from we at find which largely approximately capital phase interest the you math, rate. of just first our so you raised business X.XX% funding, happened $XX one of

that company, years one weekends, in largely lined China window you offering. in in things time really of If following week, a two which would passed, entire you that, are one entire It we And up. the notice and we had that closed was oversubscribed of went though million $XX week. to sets the we that

of one the how investing. people pace restrictions interest of pace the and has not real interest foreign countries it's COVID-XX is shutdown but the definitely of people increased and significantly the in affecting the week, activity excitement This

should aware on think those use we company. of projects. of funds secured directly reduction fund financing to flow debt, I And impact investors to that fully the the so bridge is its senior And these which be the our

by refinancing financing has a into the which relatively interest bond payments proceeds mentioned debt and for of project, two a low XX-year, principal municipal reduces our those loan our market with no Secondly, of it also periods. component also that USDA debt the Riverbank has year

the alternatives as would at being there. markets that open to we lower don't So bond debt. currently, that as was, or markets the our very this is time the are plants point it active than those available. Other expensive certainly see that, replacing in reducing be refinancing senior long-term ethanol and if see of it cost But we high credit do with yield debt, impact we not

Unidentified Analyst

Very good.

a investor. Just for $XXX,XXX $XXX,XXX XXX million minimum they to you're was from believe, those there posted EBX see required units. And the The to in for year the qualified to are, $XX financing up clarification. I

gone phase two financing million? from has $XX $XX EBX So million to the

Eric McAfee

coverage, We're exemplar produced function to market, significant were because our, of they jobs approved most investors. plan government. EBX actually be used the the XXX set the of projects a But aggressive Chinese there's that projects the specifically wanted that project in that and this It's business of what's the actually most the by an have proposal market by never was in funding which of called government. to approved number

ours XXX EBX opportunities project I'm would XXX taken jobs those you did slots investors of. are XX%. a being created. after We China, XXX sorry, marketed offering in slots first it's typically available, When the then by our and the that and increase care increase we number so with of offering just hundreds like and have being created, out And go say, about in

no plant exceeded number this and we the The other lot Chinese market, we in longer primarily project, because in have have a credibility completed It's of the all are developers. And because jobs jobs, completed now other project originally of a compared our countries. we really. actually first India, we projected. And to Indians

a many approved the the have because opens investors we all idea and developer, those jobs US achieve opportunity have now market be might which to we for available. moved investors the to up been have proven considered And to do to not us are XXX don't that we number the of

model. of that isn't $XXX,XXX at more And amount under additional funding an that's conservative the

US of project filing a investors under And grows. with government amendments in going we're as the the is gradual through doing the construction. So it obtaining process

jobs create competence. which you to as So, happens, continues build this

happened replication national has this succeeded. what a now an was last took about expedite that a we're effort year interest half and So, and time. a us seeing But of

know because glom. believe considered expedite approved in facility last or it I except that was alternatives so didn't of the of glom. interest an for the been year person's are we, to lot has casino national we entertainment national is personnel and the it for that And only be for in interest a military And have

approved expedite. as So, they amount a national small got interest

So, it's more of a breakthrough on rejections spite achieved. successful that in a major for worked year we and half, getting in a than we that many were

Unidentified Analyst

answers That question. you. good. Thank my Very

Eric McAfee

Sure. time. Thank Appreciate you. your


private investor. our take Massimo Siarala, question from we or And comment last a

may You ahead. go

Unidentified Analyst

Eric. Hello,

I want first fuel and So, United gallon. to the like is and fact production $X.XX for States. over because sold this make according at did know sanitizer I to want some [indiscernible] warehousing $XXX my [indiscernible] $XX per [indiscernible]. were I around research because this saw gallon, ethanol per just me all, sanitizer company like producer [indiscernible] of Western sanitizer other That to own achievement I big first in a to

and the are So they sanitizer ethanol they too I how or they some like gallon number And are each wanted you give to [ph]? for or ship know for analytic many day? you with much

Eric McAfee

Thank you. you, Massimo. hear Good to from

for discovery in definitely than higher are the getting marketplace. sanitizer of ethanol are we market. lot We in There's the market on going the getting price fuel a a price

quite the wide. is So prices of range

it $XXX $XX $XXX to two there's actually or as be excess that's to $XX $XX ounces. You retail, are true sizes of prices when that a range reasonable many four at product a in to that sits in in and a and smaller buying mentioned you're such considered even the discounted pricing is

And this in is with player We supplier of a as a we're But Western itself. in just alcohol major successful are which market make we the see partnering customers them entered we the in major market. in States. a United to the the which market the market maturing

focusing that's And on quality. really

will biggest and ability to at ability be on high to think upgrades a I and impact we're our supply in which our our a quality sustain plant leader. phase to to marketplace So to have the the continue continuing

market regular we time. third expect we'll shipping see So a returns grades in our how as be when and quarter that I and FCC financial report that because really USP to matures. the do the of think this become completes that But that quarter we player, point at we is

Until then, transitional lot for a in customers' desire make. up terms that producers of we're alcohol a and of don't market down really at with product the

a And in right we're quarter so it's transitional now.

very, Regarding volatile. our et very number It's cetera. of gallons,

report a of of market. the it's the customers get And quarter and lot it you I and think and the where one a then out end what different learn lot will we about get those ship So you things of is.

third relationships we're focusing a successfully. And and out on are we've the dozen I a think And longer of customers quarter, coming small that. to of that by that then in maybe done group stabilize very going term

Unidentified Analyst

gallons will or you ship, So to-date more many less? like how XXX

Eric McAfee

pretty is it volatile. Yes,

numbers all So day the to over day place. are

Unidentified Analyst


very fundamental that that is to listed according say, because I rule will because important July. will we want to have time may the about NASDAQ we you, its complying that $X on to So you NASDAQ. comply ask according be they be rule And me with question until end be about that to another of this [indiscernible] is

I also it's the now this $XX related million is speak very like and this is very, Also very question, something capitalization cheap. like will low market to

$X [indiscernible] it me of that has you be May share. soybean will in commit, So [indiscernible] like will the people or according you up. be means future the because if will demand like where about June to in million, bright for will The XX% be tell example, to up, be

this are name according do capable projects of to is that to on me online. There that you There [indiscernible] program. is new one? you going is [indiscernible] and is best buyback about What you think invest think do do ones? lot these to are and start the a to itself Do buy investment want

Eric McAfee


Unidentified Analyst

condition? listed NASDAQ what the plan [Indiscernible] to is $X be to the in in procedure

Eric McAfee

the past the a They days. off our of NASDAQ. window be has crisis additional the time would large companies by COVID-XX original that NASDAQ to number delisted have NASDAQ due listed XX extended period time Right an

So anything. they We it didn't voluntarily. extended have or that apply for

us it the gave extension. they gave just They -

So can August after that. late we're there. for talking approximately And apply about extension an we

think we're performance just So price. concerned not currently will that solve dollar about the We pricing our issue.

Unidentified Analyst

buyback. Do Okay. And comment to anything this relating $XX? want the about you to

Eric McAfee

I'm sorry, say that again.

Unidentified Analyst

buyback to a in The for it's like buyback. According Do [indiscernible] good started compared share think plant me, as program? last because year, you to maybe. last also month option

[indiscernible]? maybe So wanted anything know is there to that I

Eric McAfee

A things price. we're then, business. of comprehend the medicine doesn't stock doesn't the of in course market the happened low such what's best fuel impacts We And of buyback understand case is at number in shares absolutely of of positive think in the ethanol largely a shareholders' doing. interest fully the

understand of as they But of refinancing the come and see debt. cash to from I they think combination the it will increased flow operations

is that we shareholders. could increases time So be that best a of our of appropriate our board at buyback that absolutely would we looks that in the considering as expectation shareholder our, at stock value interests are achieve. directors And

prices. extremely value something shareholder value - buyback that low shares cause to Certainly We're be be of low created. a a will tremendous amount would at buying their shareholder

Unidentified Analyst

thanks Okay, lot. a

Eric McAfee

with luck Thank Sure. Massimo. you, you're doing what in Good Italy.

Unidentified Analyst



time, to turn further at the questions closing comments. back no are this floor to like There for management over I'd

Eric McAfee

today. to forward us Aemetis. appreciate I Aemetis talking our Thanks to look for shareholders, with to about the and dialogue others at joining it opportunities you, We much. growth continue very Thank Melinda. analysts you

Todd Waltz

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


our concludes teleconference. This

your time. lines this participation. you your at for disconnect may Thank You