Company: AMTX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015301
Chunk: 41

Company: AEMETIS, INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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. Funding for construction has been based on government guaranteed debt financing and grant programs, which experienced delays in 2024 but we expect those sources to become available in the first half of 2025. We are seeking additional sources of project funding as well as equipment financing to allow us to accelerate construction of new digesters. Starting January 1, 2025, our RNG production qualifies for federal tax credits under Internal Revenue Code Section 45Z, and we anticipate monetizing these credits by selling them to third parties, which will provide an additional source of cash in addition to the sales of RNG, D3 RINs, and LCFS credits. We also expect LCFS revenue to increase when CARB approves our carbon intensity pathways, allowing us to generate approximately 80% more LCFS credits, and when CARB finalizes its adoption of new LCFS rules that are expected to increase the value of LCFS credits. We are also constructing our own dispensing station so we can sell RNG directly to users and reduce our costs.

For the Kakinada Plant, we plan to continue to enter contracts with the OMCs as our primary customers for biodiesel. We recently completed upgrades to increase our plant production capacity and specifically to increase the capacity to produce biodiesel from lower cost feedstocks and expand feedstock flexibility. The Kakinada Plant has had positive gross income during the last two years and we expect this to continue.  We also rely on our working capital arrangements with feedstock suppliers to fund the acquisitions of feedstock and on a bank line of credit to provide lower cost financing secured by our accounts receivable.

In addition to the above we plan to continue to locate funding for operations and for existing and new business opportunities through a combination of working with our senior lender, obtaining new debt, selling equity through our at-the-market sales, selling the current EB-5 Phase II offering, and by vendor financing arrangements.

As of December 31, 2024, the outstanding balance of principal, interest and fees, net of discounts, on all Third Eye Capital Notes equaled $217.4 million.  The maturity dates for the Third Eye Capital financing arrangements are as follows:

 ● Due April 30, 2025: $0.7 million

 ● Due on demand: $42.9 million

 ● May 30, 2025: $2 million

 ● March 1, 2026: $26.7 million

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