Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

Our Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is provided in addition to the accompanying consolidated condensed financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. MD&A is organized as follows:

●

Overview. Discussion of our business and overall analysis of financial and other highlights affecting us to provide context for the remainder of MD&A.

●

Results of Operations. An analysis of our financial results comparing the three and nine months ended September 30, 2026 and 2025.

●

Liquidity and Capital Resources. An analysis of changes in our balance sheets and cash flows and discussion of our financial condition.

●

Critical Accounting Policies and Estimates. Accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.

The following discussion should be read in conjunction with our consolidated condensed financial statements and accompanying notes included in Item 1 of Part I of this report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Report and in other reports we file with the SEC. All references to years relate to the calendar year ended December 31 of the particular year.

Overview

Founded in 2006 and headquartered in Cupertino, California, we are a renewable natural gas and biofuels company focused on the operation, acquisition, development, and commercialization of innovative technologies that lower fuel costs and reduce emissions. We operate in three reportable segments consisting of "California Ethanol," "California Dairy Renewable Natural Gas," and "India Biodiesel." We have other operating segments determined not to be separately reportable that are collectively represented by the "All Other" category. Our mission is to produce innovative renewable fuel solutions that benefit communities and improve the environment. We are executing our mission by building a circular bioeconomy using agricultural products and waste to produce low carbon renewable fuels that create jobs, reduce greenhouse gas ("GHG") emissions, and improve air quality. For revenue and other information regarding our operating segments, see Note 13 - Segment Information of the Notes to the consolidated condensed financial statements of this Form 10-Q.

Our California Ethanol segment consists of a 65 million gallon per year capacity ethanol production facility located in Keyes, California (the "Keyes Plant") that we own and operate. In addition to low carbon renewable fuel ethanol, the Keyes Plant produces alcohol for other uses, Wet Distillers Grains ("WDG"), Distillers Corn Oil ("DCO"), and Condensed Distillers Solubles ("CDS"). WDG, DCO, and CDS are sold as animal feed to more than 80 local dairies and feedlots. A portion of our DCO is sold as feedstock for other renewable fuels plants. We also capture the Carbon Dioxide ("CO2") generated by our fermenters and sell it to an industrial gas company that liquifies the CO₂ to sell to food, beverage, and industrial customers. We are implementing energy efficiency initiatives focused on lowering the carbon intensity ("CI") of our ethanol, primarily by decreasing the use of fossil natural gas. Recently completed energy efficiency projects include high efficiency heat exchangers and a solar micro grid. A significant energy efficiency project in progress is the Mechanical Vapor Recompression ("MVR") system that will use low carbon electricity instead of natural gas. These changes will reduce our energy costs, lower the CI of the ethanol we produce, and generate increased cash flows from California Low Carbon Fuel Standard ("LCFS") and tax credits. We have acquired all the necessary equipment for the MVR project, and construction is progressing toward completion.

Our California Dairy Renewable Natural Gas segment operates anaerobic digesters at local dairies near the Keyes Plant (many of whom also purchase WDG produced by the Keyes Plant as animal feed) to produce biogas from dairy waste, transports the biogas by pipeline to the Keyes Plant site, and converts the biogas to Renewable Natural Gas ("RNG") that is delivered to customers through the utility natural gas pipeline. We currently operate fourteen digesters that produce biogas from manure waste received from seventeen dairies. Two of these digesters were placed into service in October 2026. We are actively growing with additional digesters planned for construction. We have constructed 36 miles of biogas collection pipeline and have received environmental approval to construct an additional 24 miles of pipeline. We currently have agreements to build digesters and receive waste from over 50 dairies and are seeking to sign agreements with additional dairies.

Our India Biodiesel segment includes a biodiesel production plant in Kakinada, India ("Kakinada Plant") with a production capacity of about 80 million gallons per year. The plant produces high-quality distilled biodiesel and refined glycerin for customers in India. We believe the Kakinada Plant is one of the highest capacity biodiesel production facilities in India. The Kakinada Plant is capable of processing a variety of vegetable and animal oil waste feedstocks into biodiesel that meets applicable product standards. Our Kakinada Plant also distills the crude glycerin coproduct from the biodiesel refining process into refined glycerin, which is sold to the pharmaceutical, personal care, paint, adhesive, and other industries.

Our "All Other" segment consists of our projects that are under development, including our planned Carbon Capture and Underground Sequestration ("CCUS") operations and the planned sustainable aviation fuel ("SAF") and renewable diesel ("RD") plant in Riverbank, California. All Other segment also includes our research and development facility in Minneapolis, Minnesota, operation of the Riverbank Industrial Complex, and our corporate offices in Cupertino, California.

We are developing an SAF/RD production plant that is currently designed to produce 90 million gallons per year of combined SAF/RD or 78 million gallons per year of SAF from feedstocks consisting of renewable waste vegetable and animal oils. Our project is located at the Riverbank Industrial Complex in Riverbank, California. We signed a lease with an option to purchase the Riverbank Industrial Complex in 2021 and took possession of the site in 2022. In 2023, we received a Use Permit and the California Environmental Quality Act ("CEQA") approval for the SAF/RD plant, and in 2024 we received Authority to Construct air permits for the plant. We are continuing with development activities, including engineering and financing. The Riverbank site has access to low carbon hydroelectric power, and our plant is designed to use renewable hydrogen that will be produced from byproducts of the SAF/RD production process.

Our planned CCUS projects will compress and inject CO₂ into deep wells that are monitored to ensure the long-term sequestration of carbon underground. California's Central Valley has been identified as one of the world's most favorable regions for large-scale CO₂ injection projects due to the subsurface geologic formations that absorb and contain CO₂ gas. The two initial Aemetis CCUS injection projects are being designed to capture and sequester more than two million metric tons per year of CO₂ at the Aemetis biofuels plant sites in Keyes and Riverbank, California. Once operational, we expect these projects will generate revenue by selling California LCFS credits and federal Internal Revenue Code Section 45Q tax credits.

Our Minneapolis, Minnesota research and development laboratory evaluates and develops technologies that would use low carbon intensity and waste feedstocks to produce low or below zero carbon intensity biofuels and biochemicals. We are focused on processes that extract sugar from cellulosic feedstocks and produce low carbon ethanol, renewable hydrogen, SAF, and RD.

Results of Operations

Three Months Ended September 30, 2026, Compared to Three Months Ended September 30, 2025

Revenues

Our revenues are derived primarily from sales of ethanol and WDG in our California Ethanol segment, RNG environmental attributes in our California Dairy Renewable Natural Gas segment, and biodiesel in our India Biodiesel segment. We also generate IRA Section 45Z Production Tax Credits ("Section 45Z PTCs" or "PTCs") in the California Ethanol and RNG segments, which we recognize as income in 2026. The revenue recognized during the same period in 2025 does not include PTC income, as we recognized Section 45Z PTC income for calendar year 2025 in the fourth quarter of 2025 after establishing qualification for the PTCs under the applicable statute and guidance.

		2026				2025				Inc/(dec)				% change
California Ethanol		$	53,804			$	40,726			$	13,078				32.1	%
California Dairy Renewable Natural Gas			25,923				3,996				21,927				548.7	%
India Biodiesel			8,426				14,468				(6,042)				(41.8	)%
Total		$	88,153			$	59,190			$	28,963				48.9	%

California Ethanol. For the three months ended September 30, 2026, this segment generated 68% of its revenue from sales of ethanol, and the balance from sales of WDG, Corn Oil, CDS, and CO₂. It also generated and recognized $4.6 million in Section 45Z PTC income during the three months ended September 30, 2026. For the three months ended September 30, 2026, the Keyes Plant sold 15.6 million gallons of ethanol at an average price of $2.34 per gallon and 102 thousand tons of WDG at an average price of $89 per ton, compared to sales during the three months ended September 30, 2025, when the Keyes Plant sold 14.7 million gallons of ethanol at an average price of $2.13 per gallon and 96 thousand tons of WDG at an average price of $76 per ton.

California Dairy Renewable Natural Gas. During the three months ended September 30, 2026, we sold 158.2 thousand MMBtu ("million British thermal units") of RNG at an average price of $3.16 per MMBtu, compared to the three months ended September 30, 2025, when we sold 114.0 thousand MMBtu of RNG at an average price of $3.45 per MMBtu. During the three months ended September 30, 2026, we sold 1.4 million federal Renewable Fuel Standard ("RFS") credits (referred to as "D3 RINs") at an average price of $2.45 per D3 RIN, compared to the three months ended September 30, 2025, when we sold 1.0 million D3 RINs at an average price of $2.37 per RIN. During the three-month period ended September 30, 2026, we sold 27.8 thousand LCFS credits at an average price of $73 each, compared to 22.2 thousand LCFS credits at an average price of $54 each during the period ended September 30, 2025. The RNG segment also recorded $20.1 million of Section 45Z PTC income during the three months ended September 30, 2026. In September 2026, regulatory updates to the Section 45ZCF-GREET model decreased the Section 45Z emissions rate, resulting in an increase in the Section 45Z PTCs generated by RNG sales in 2026. Accordingly, we recorded a cumulative true-up adjustment of approximately $11.0 million related to the period January 1, 2026, through June 30, 2026, which was recognized in third quarter of 2026 PTC income.

India Biodiesel. In 2025 and 2026, our India sales of biodiesel were primarily to government-owned Oil Marketing Companies ("OMCs") pursuant to the OMC tender and allocation process. For the three months ended September 30, 2026 and 2025, we generated 87% and 96% of our India segment revenues from the sale of biodiesel and 13% and 4% from other sales, respectively. The decrease in revenue was primarily due to delays in receiving OMC tender contracts during the second quarter of 2026. Shipments under the contract commenced during the third quarter of 2026 and remained ongoing as of period end. We sold 6.6 thousand metric tons of biodiesel at an average sales price of $1,108 per metric ton during the three months ended September 30, 2026, compared to 12.5 thousand metric tons of biodiesel at an average sales price of $1,112 per metric ton during the three months ended September 30, 2025.

Cost of Goods Sold

Cost of goods sold consists primarily of feedstock, energy, chemicals, direct costs (principally labor and labor related costs), and overhead. Depending on the costs of these inputs in comparison to the sales price of our end products, our gross margins at any given time can vary from positive to negative. Overhead includes direct and indirect costs associated with plant operations, including the cost of repairs and maintenance, consumables, on-site security, insurance, and depreciation.

We purchase feedstock for the California Ethanol segment from J.D. Heiskell based on daily market prices for corn plus costs of rail transportation, local basis, and a handling fee paid to J.D. Heiskell. The credit term for the corn purchased from J.D. Heiskell is one day, netted from our product sales. Cost of goods sold also includes the cost of electricity and natural gas, chemicals, maintenance, direct labor, depreciation, and freight.

We obtain the feedstock for producing RNG from dairy operators who lease us their land for construction of our digesters and supply our digesters with manure in liquid form. Our cost of feedstock is established by manure supply agreements based on the value of the environmental attributes and the number of cows at each dairy.

We utilize several different feedstocks for the Kakinada Plant, including stearin, a non-edible feedstock, from neighboring natural oil processing plants. Raw material is received by truck and loaded at our vendor's nearby facilities. Credit terms vary by vendor. However, we generally receive 15 days of credit for the purchases.

		2026				2025				Inc/(dec)				% change
California Ethanol		$	46,360			$	42,158			$	4,202				10.0	%
California Dairy Renewable Natural Gas			5,284				2,696				2,588				96.0	%
India Biodiesel			7,036				14,394				(7,358)				(51.1	)%
Total		$	58,680			$	59,248			$	(568)				(1.0	)%

California Ethanol. We ground 5.4 million bushels of corn at an average cost of $6.29 per bushel during the three months ended September 30, 2026, compared to 5.0 million bushels of corn at an average cost of $5.95 per bushel during the three months ended September 30, 2025. The increase in cost of goods sold for the three months ended September 30, 2026, is mainly due to an increase in ethanol production and an associated increase in the quantity and price of corn used.

California Dairy Renewable Natural Gas. Cost of goods sold increased as a result of the increased manure costs, digester maintenance expenses, and depreciation from additional digesters placed into service.

India Biodiesel. The decrease in cost of goods sold during the three months ended September 30, 2026, compared to September 30, 2025, was attributable to a decrease in biodiesel sales.

Gross Profit (Loss)

		2026				2025				Inc/(dec)				% change
California Ethanol		$	7,444			$	(1,432	)		$	8,876				NM
California Dairy Renewable Natural Gas			20,639				1,300				19,339				NM
India Biodiesel			1,390				74				1,316				NM
Total		$	29,473			$	(58	)		$	29,531				NM

Note: "NM" = not meaningful

California Ethanol. The gross profit during the three months ended September 30, 2026, compared to a gross loss during the same period in 2025, was attributable primarily to increased volumes and increased average sale prices, partially offset by higher corn costs, as well as $4.6 million of Section 45Z PTC income recognized during the three months ended September 30, 2026, but not during the three months ended September 30, 2025.

California Dairy Renewable Natural Gas. The increase in gross profit for the three months ended September 30, 2026, compared to the same period in 2025, is due to the increase in RNG production and associated environmental attributes, as well as $20.1 million of Section 45Z PTC income recognized during the three months ended September 30, 2026, but not during the three months ended September 30, 2025.

India Biodiesel. The increase in gross profit for the three months ended September 30, 2026, compared to the same period in 2025, is primarily due to a decrease in feedstock costs.

Operating Expenses and Other Expense (Income)

		2026				2025				Inc/(dec)				% change
Selling, general and administrative		$	8,621			$	8,450			$	171				2.0	%
				​				​				​				​
Other expense (income):				​				​				​				​
Interest expense				​				​				​				​
Interest rate expense			14,206				11,889				2,317				19.5	%
Debt related fees and amortization expense			342				1,061				(719	)			(67.8	)%
Accretion and other expenses of Series A preferred units			1,216				2,034				(818	)			(40.2	)%
Other expense (income)		$	(125	)		$	249			$	(374	)			(150.2	)%

Selling, General and Administrative expenses ("SG&A") expenses consist primarily of salary and related expenses for employees, marketing expenses related to sales of ethanol and WDG in California Ethanol and biodiesel and other products in India Biodiesel, as well as professional fees, insurance, other corporate expenses, and related facility expenses. SG&A expenses as a percentage of revenue were 10% in the three months ended September 30, 2026, compared to 14% in the three months ended September 30, 2025. The increase in SG&A expenses during the three months ended September 30, 2026 is primarily due to increases in salary and related expenses, and professional fees, partially offset by a reduction in utility expenses.

Other expenses consist primarily of interest and amortization expense on debt and accretion of the liability to redeem Biogas Series A Preferred Units. Debt related fees and amortization expense include amortization of debt extension fees and debt discounts of warrants issued in connection with debt renewals. The fair value of warrants issued is recorded as a debt discount and amortized to interest expense over the term of the related debt. Debt related fees and amortization expense decreased during the three months ended September 30, 2026 as a result of a significant portion of the Company's debt becoming due on demand during 2026. Accretion expense decreased during the three months ended September 30, 2026, as a result of the PUPA Thirteenth Amendment discussed in Note 11 - Aemetis Biogas LLC - Series A Preferred Financing, which resulted in a lower interest rate on the credit agreement. Interest rate expense increased during the three months ended September 30, 2026, due to higher variable interest rates and higher debt balances.

Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025

Revenues

Our revenues are derived primarily from sales of ethanol and WDG in our California Ethanol segment, RNG environmental attributes in our California Dairy Renewable Natural Gas segment, and biodiesel in our India Biodiesel segment. We also generate Section 45Z PTCs in the California Ethanol and RNG segments, which we recognize as income in 2026. Revenue recognized during the same period in 2025 did not include PTC income, as we recognized Section 45Z PTC income for calendar year 2025 in the fourth quarter of 2025 after establishing qualification for the PTCs under the applicable statute and guidance.

		2026				2025				Inc/(dec)				% change
California Ethanol		$	145,494			$	115,762			$	29,732				25.7	%
California Dairy Renewable Natural Gas			38,503				9,490				29,013				305.7	%
India Biodiesel			21,475				29,067				(7,592)				(26.1	)%
Total		$	205,472			$	154,319			$	51,153				33.1	%

California Ethanol. For the nine months ended September 30, 2026, this segment generated 67% of its revenue from sales of ethanol, and the rest from sales of WDG, Corn Oil, CDS, and CO₂. It also generated and recognized $13.7 million in Section 45Z PTC income during the nine months ended September 30, 2026. For the nine months ended September 30, 2026, the Keyes Plant sold 44.9 million gallons of ethanol at an average price of $2.18 per gallon and 300 thousand tons of WDG at an average price of $88 per ton, compared to sales during the nine months ended September 30, 2025, when the Keyes Plant sold 42.6 million gallons of ethanol at an average price of $2.04 per gallon and 280 thousand tons of WDG at an average price of $83 per ton.

California Dairy Renewable Natural Gas. During the nine months ended September 30, 2026, we sold 414.6 thousand MMBtu of RNG at an average price of $2.26 per MMBtu, compared to the nine months ended September 30, 2025, when we sold 291.3 thousand MMBtu of RNG at an average price of $3.24 per MMBtu. During the nine months ended September 30, 2026, we sold 3.4 million D3 RINs at an average price of $2.47 per D3 RIN, compared to the nine months ended September 30, 2025, when we sold 2.2 million D3 RINs at an average price of $2.50 per RIN. During the nine months ended September 30, 2026, we sold 85.5 thousand LCFS credits at an average price of $64 each, compared to 52.2 thousand LCFS credits at an average price of $60 each during the period ended September 30, 2025. The RNG segment also generated $23.6 million of Section 45Z PTC income during the nine months ended September 30, 2026.

India Biodiesel. In 2025 and 2026, our India sales of biodiesel were primarily to government-owned OMCs pursuant to the OMC tender and allocation process. For the nine months ended September 30, 2026, we generated 85% of our India segment revenues from the sale of biodiesel and 15% from other sales. The decrease in revenues was primarily due to palm fatty acid distillate ("PFAD") sales that occurred during the nine months ended September 30, 2025, but not during the same period in 2026. In addition, delays in receiving new OMC contracts delayed biodiesel shipments. We sold 17.2 thousand metric tons of biodiesel at an average sales price of $1,065 per metric ton during the nine months ended September 30, 2026, compared to 21.0 thousand metric tons of biodiesel at an average sales price of $1,117 per metric ton during the nine months ended September 30, 2025.

Cost of Goods Sold

Cost of goods sold consists primarily of feedstock, energy, chemicals, direct costs (principally labor and labor related costs), and overhead. Depending on the costs of these inputs in comparison to the sales price of our end products, our gross margins at any given time can vary from positive to negative. Overhead includes direct and indirect costs associated with plant operations, including the cost of repairs and maintenance, consumables, on-site security, insurance, and depreciation.

We purchase feedstock for the California Ethanol segment from J.D. Heiskell based on daily market prices for corn plus costs of rail transportation, local basis, and a handling fee paid to J.D. Heiskell. The credit term for the corn purchased from J.D. Heiskell is one day, netted from our product sales. Cost of goods sold also includes the cost of electricity and natural gas, chemicals, maintenance, direct labor, depreciation, and freight.

We obtain the feedstock for producing RNG from dairy operators who lease us their land for construction of our digesters and supply our digesters with manure in liquid form. Our cost of feedstock is established by manure supply agreements based on the value of the environmental attributes and the number of cows at each dairy.

We utilize several different feedstocks for the Kakinada Plant, including stearin, a non-edible feedstock, from neighboring natural oil processing plants. Raw material is received by truck and loaded at our vendor's nearby facilities. Credit terms vary by vendor. However, we generally receive 15 days of credit for the purchases.

		2026				2025				Inc/(dec)				% change
California Ethanol		$	128,620			$	125,938			$	2,682				2.1	%
California Dairy Renewable Natural Gas			11,800				7,030				4,770				67.9	%
India Biodiesel			19,308				29,844				(10,536)				(35.3	)%
Total		$	159,728			$	162,812			$	(3,084)				(1.9	)%

California Ethanol. We ground 15.5 million bushels of corn at an average cost of $6.10 per bushel during the nine months ended September 30, 2026, compared to 14.4 million bushels of corn at an average cost of $6.33 per bushel during the nine months ended September 30, 2025. The slight increase in cost of goods sold for the nine months ended September 30, 2026, is mainly due to higher corn ground for increased ethanol production, related transportation costs, chemicals and electricity costs, partially offset by a lower average cost per bushel of corn, compared to the nine months ended September 30, 2025.

California Dairy Renewable Natural Gas. Cost of goods sold increased as a result of increased manure costs, digester maintenance expenses, and depreciation from additional digesters placed into service.

India Biodiesel. The decrease in cost of goods sold during the nine months ended September 30, 2026, compared to September 30, 2025, was attributable to a decrease in biodiesel sales.

Gross Profit (Loss)

		2026				2025				Inc/(dec)				% change
California Ethanol		$	16,874			$	(10,176	)		$	27,050				NM
California Dairy Renewable Natural Gas			26,703				2,460				24,243				NM
India Biodiesel			2,167				(777	)			2,944				NM
Total		$	45,744			$	(8,493	)		$	54,237				NM

Note: "NM" = not meaningful

California Ethanol. The gross profit during the nine months ended September 30, 2026, compared to a gross loss during the same period in 2025, was attributable primarily to increased sales volumes, average sales prices, and a decrease in corn prices, as well as the $13.7 million of Section 45Z PTC income recognized during the nine months ended September 30, 2026, but not during the nine months ended September 30, 2025.

California Dairy Renewable Natural Gas. The increase in gross profit for the nine months ended September 30, 2026, compared to the same period in 2025, is due to the increase in RNG production and associated environmental attributes, as well as the $23.6 million of Section 45Z PTC income recognized during the nine months ended September 30, 2026, but not during the nine months ended September 30, 2025.

India Biodiesel. The gross profit for the nine months ended September 30, 2026, compared to the loss during the same period in 2025, reflects lower feedstock costs.

Operating Expensesand Other Expense (Income)

		2026				2025				Inc/(dec)				% change
Selling, general and administrative expenses		$	25,454			$	26,244			$	(790	)			(3.0	)%
Other expense (income):				​				​				​				​
Interest expense				​				​				​				​
Interest rate expense			39,919				34,142				5,777				16.9	%
Debt related fees and amortization expense			2,668				4,831				(2,163	)			(44.8	)%
Accretion and other expenses of Series A preferred units			4,338				6,345				(2,007	)			(31.6	)%
Other income		$	(637	)		$	(1,078	)		$	441				(40.9	)%

SG&A expenses consist primarily of salary and related expenses for employees, marketing expenses related to sales of ethanol and WDG in California Ethanol and biodiesel and other products in India Biodiesel, as well as professional fees, insurance, other corporate expenses, and related facility expenses. SG&A expenses as a percentage of revenue were 12% in the nine months ended September 30, 2026, compared to 17% in the nine months ended September 30, 2025. The decrease in SG&A expenses during the nine months ended September 30, 2026, is primarily due to reductions in insurance and professional fees, supplies and services expenses, partially offset by an increase in salary and related expenses.

Other expenses consist primarily of interest and amortization expense on debt and accretion of the liability to redeem Biogas Series A Preferred Units. Debt related fees and amortization expense include amortization of debt extension fees and debt discounts of warrants issued in connection with debt renewals. The fair value of warrants issued is recorded as a debt discount and amortized to interest expense over the term of the related debt. Debt related fees and amortization expense decreased during the three months ended September 30, 2026, as a result of a significant portion of the Company's debt becoming due on demand during 2026. Accretion expense decreased during the nine months ended September 30, 2026, as a result of the PUPA Thirteenth Amendment discussed in Note 11 - Aemetis Biogas LLC - Series A Preferred Financing, which resulted in a lower interest rate on the credit agreement. Interest rate expense increased during the nine months ended September 30, 2026, due to higher variable interest rates and higher debt balances.

Liquidity and Capital Resources

Cash and Cash Equivalents

Cash and cash equivalents were $3.4 million at September 30, 2026, with $2.6 million held in our North American entities and $0.8 million in our India entity. We expect that our future available cash resources will be generated from operations, sales of equity, sales of tax credits, and new debt. Incurrence of new debt and the associated use of proceeds from future debt financings are subject to approval by our senior lender.

Liquidity

Cash and cash equivalents, current assets, current liabilities, and debt at the end of each period were as follows:

		As of
		September 30, 2026				December 31, 2025
Cash and cash equivalents		$	3,359			$	4,894
Current assets (including cash, cash equivalents, and deposits)		$	29,128			$	26,870
Current and long-term liabilities (excluding all debt)		$	190,755			$	184,908
Current & long-term debt		$	435,447			$	381,764

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

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.

The India Biodiesel segment utilized its receivables financing facility during the quarter to support short-term liquidity needs. As of September 30, 2026, $2.0 million was outstanding under the facility. We believe this arrangement provides flexibility in managing cash flows while maintaining prudent risk oversight.

We are implementing several strategies to improve our cash flow from operations, as described in more detail in Note 16 - Liquidity of the Notes to the consolidated condensed financial statements of this Form 10-Q.

Senior Secured Debt

As of September 30, 2026, the outstanding balance of principal, interest and fees, net of discounts, on all Third Eye Capital notes totals $280.6 million, which is all due on demand by the lender. Third Eye Capital has provided a series of accommodating amendments to our debt facilities as described in further detail in Note 5 - Debt of the Notes to the consolidated condensed financial statements in this Form 10-Q. However, future amendments or accommodations will continue to be at the discretion of the lender. In the event our senior lender demands debt repayment, we would likely not have sufficient cash to pay the debt when due unless we are able to obtain alternative financing.

Change in Debt, Working Capital and Cash Flows

The following table describes the changes in current and long-term debt during the nine months ended September 30, 2026:

Increases to debt:				​				​
Accrued interest		$	41,612					​
Maturity date extension fee and other fees added to senior debt			750					​
Subordinated debt extension fees			340					​
Change in debt issuance costs, net of amortization			1,881					​
Secured loans and working capital loan draw			21,509					​
Third Eye Capital short-term promissory note			1,800					​
Construction loan short-term borrowings			17,007					​
Total increases to debt				​			84,899
Decreases to debt:				​				​
Principal, fees, and interest payments to senior lender			(5,940	)				​
Principal and interest payments and reductions to EB-5 promissory note			(53	)				​
Term loan Payments			(26	)				​
Construction loan payments			(5,350	)				​
Secured loans and working capital loans payments			(19,798	)				​
Payments on term loans for capital expenditures			(44	)				​
Reclass to accounts payable for payment			(5	)				​
Total decreases to debt				​			(31,216	)
Change in total debt				​		$	53,683

Cash provided by operating activities was $9.5 million, derived from a net loss of $25.9 million, non-cash expenses of $19.2 million, and changes in operating assets and liabilities of $16.1 million. The non-cash expenses primarily consisted of: (i) $7.6 million in depreciation expenses, (ii) $4.3 million in preferred unit accretion and other expenses of Series A Preferred Units, (iii) $2.7 million in amortization of debt issuance costs and other intangible assets, and (iv) $4.0 million in stock-based compensation expense. Changes in operating assets and liabilities consisted primarily of (i) a $4.4 million increase in accounts receivable, (ii) an increase in inventory of $1.9 million primarily due to the India biodiesel segment buying and processing feedstock for fourth quarter production and sales, (iii) a $4.6 million decrease in accounts payable, and (iv) $7.5 million decrease in other liabilities. This was offset by (i) a $2.0 million decrease in the balance of other current assets primarily from monetizing Section 45Z PTCs, and (ii) a $32.6 million increase in accrued interest expense.

Cash used in investing activities was $33.9 million, of which $35.3 million was primarily used for capital projects associated with production of RNG and energy efficiency projects in California offset by $1.4 million grants received.

Cash provided by financing activities was $21.4 million, consisting primarily of (i) $37.5 million proceeds from borrowings, and (ii) $15.5 million from sales of common stock, offset by $23.5 million and $7.9 million in repayments of borrowings and Series A preferred financing, respectively.

Our ongoing at-the-market stock sales program allows us to sell shares of common stock into the publicly traded market. During the three months ended September 30, 2026, we sold 0.9 million shares of common stock for proceeds of $1.8 million, net of commissions. During the nine months ended September 30, 2026, we sold 6.1 million shares of common stock for proceeds of $15.4 million, net of commissions.

Critical Accounting Policies and Estimates

Our discussion and analysis of financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported net sales and expenses for each period. We believe that of our most significant accounting policies and estimates, defined as those policies and estimates that we believe are the most important to the portrayal of our financial condition and results of operations and that require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain are: liquidity; debt covenant forecast; and recoverability of long-lived assets. These significant accounting principles are more fully described in "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies" in our Annual Report on Form 10-K for the year ended December 31, 2025.

Recently Issued Accounting Pronouncements

See Note 1 to the consolidated condensed financial statements of this Form 10-Q for information regarding recently issued accounting pronouncements.

Off Balance Sheet Arrangements

None.