Company: AMTX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015301
Chunk: 88

Company: AEMETIS, INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1F
Chunk 88
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     336,291

     338,061

Our principal sources of liquidity have been cash provided by the sale of equity, operations, and borrowings under various debt arrangements.

       24

       (Tabular data in thousands, except par value and per share data)

We operate in a volatile market in which we have limited control over major components of input costs and product revenues. We are making investments in future facilities and facility upgrades that improve overall margins while lessening the impact of volatile markets. As such, we expect cash provided by operating activities to fluctuate in future periods primarily because of changes in the prices for corn, ethanol, WDG, DCO, CDS, biodiesel, waste fats and oils, glycerin, non-refined palm oil, natural gas, LCFS credits, and D3 RINs. To the extent that we experience periods in which the spread between ethanol prices and corn and energy costs narrow or the value of environmental attributes or tax credits is reduced, we require additional working capital to fund operations. 

As a result of collateralization of substantially all of the Company assets with our senior secured lender, we have been reliant in the past on our senior secured lender to provide a portion of our funding and have been required to remit a significant portion of the cash received from investment tax credit sales to our senior lender. In order to meet obligations during the next twelve months, we will need to receive the continued cooperation of our senior lender to provide extensions of our debt maturities. We plan to pursue the following strategies to improve the course of the business.

For the Keyes Plant, we plan to operate the plant and continue to improve its financial performance by adopting new technologies or process changes that increase energy efficiency, reduce costs, and enhance revenue, as well as execute on awarded grants that improve energy and operational efficiencies resulting in lower cost, lower carbon intensity, and overall margin improvement. The planned improvements include the MVR system that is expected to begin operation in the first half of 2026. The MVR system is expected to reduce energy costs, reduce exposure to fluctuations in natural gas pricing, reduce the carbon intensity of ethanol produced by the plant, reduce the Keyes Plant's direct emissions of greenhouse gases, increase the value of LCFS and tax credits, and substantially improve the cash flows of the Keyes Plant.

For our dairy RNG production, we plan to continue to operate our existing digesters, build new dairy digesters, and extend our pipeline