Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used anywhere in this Report, the words “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These forward-looking statements include, among other things, statements about: risks and uncertainties related to our ability to sell our products, our ability to expand or continue production of ethanol and isobutanol at our production facility in Luverne, Minnesota (the “Luverne Facility”), our ability to meet our production, financial and operational guidance, our strategy to pursue low-carbon ethanol for sale into California, our ability to replace our fossil-based energy sources with renewable energy sources at the Luverne Facility, our ability and plans to construct a commercial hydrocarbon facility to produce alcohol-to-jet fuel (“ATJ”), our ability to raise additional funds to continue operations and/or expand the Luverne Facility, our ability to produce ethanol and isobutanol on a commercial level and at a profit, achievement of advances in our technology platform, the success of our retrofit production model, the availability of suitable and cost-competitive feedstocks, our ability to gain market acceptance for our products, the expected cost-competitiveness and relative performance attributes of our ethanol and isobutanol and the products derived from isobutanol, additional competition and changes in economic conditions and the future price and volatility of petroleum and products derived from petroleum. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements such as those contained in documents we have filed with the U.S. Securities and Exchange Commission (the “SEC”), including this Report in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” our Annual Report on Form 10-K for the year ended December 31, 2018 (our “Annual Report”), and subsequent reports on Form 10-Q. All forward-looking statements in this Report are qualified entirely by the cautionary statements included in this Report and such other filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this Report. These forward-looking statements speak only as of the date of this Report. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and readers should not rely on the forward-looking statements as representing the Company’s views as of any date subsequent to the date of the filing of this Report.
Unless the context requires otherwise, in this Report the terms “we,” “us,” “our” and the “Company” refer to Gevo, Inc. and its subsidiaries.
The following discussion should be read in conjunction with our unaudited consolidated financial statements and the related notes and other financial information appearing elsewhere in this Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including, without limitation, the disclosures in our Annual Report.
Reverse Stock Split
On June 1, 2018, we effected a reverse stock split of the outstanding shares of our common stock by a ratio of one-for-twenty (the “Reverse Stock Split”) and our common stock began trading on the Nasdaq Capital Market on a Reverse Stock Split-basis on June 4, 2018. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth herein have, where applicable, been adjusted retroactively to reflect the Reverse Stock Split.
Company Overview
We are a next generation “low-carbon” fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle. The most common low-carbon fuels are renewable fuels. We are focused on the development and production of mainstream fuels like jet fuel and gasoline using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. In addition to serving the low-carbon fuel markets, we can also serve markets for the production of chemical intermediate products for solvents, plastics, and building block chemicals using our technologies.
Our proven production technologies target what we believe to be large potential markets of renewable fuels and related chemicals that can compete directly against petrochemical products depending on the price of oil and the value of carbon intensity reductions. Renewable fuels are one of the few fuel products where the value for renewable carbon has already been established, particularly in the United States and the European Union. We believe that the demand for low-carbon fuels and renewable chemicals will continue to grow in the future.
Latest Highlights and Developments
|
●
|
On April 4, 2019, we executed a binding, definitive Construction License Agreement with Praj Industries Ltd. (“ Praj”), pursuant to which we will commercialize the production of renewable isobutanol using sugary-based feedstocks, such as juice, syrup and molasses made of sugarcane and sugar beets (the “Construction License Agreement”). Pursuant to the Construction License Agreement, Praj will provide engineering procurement and construction services to certain third party customers using a process design package that incorporates our proprietary isobutanol biocatalyst and is designed for use with sugary-based feedstocks (the “PDP”). The PDP is jointly owned by us and Praj. We have granted a license to Praj that would allow Praj to provide such services to certain third party customers. In connection with the Construction License Agreement, Gevo and Praj have also entered into a new Joint Development Agreement and a new Development License Agreement, dated April 4, 2019, to continue their joint development efforts to produce isobutanol using sugarcane juice, sugarcane syrup, sugarcane molasses, sugar beet juice, sugar beet syrup, sugar beet molasses, sugar beet pulp, cassava, rice, wheat, sorghum, bagasse, rice straw, wheat straw, corn stover, cotton stalk and empty fruit bunches.
|
|
|
|
|
●
|
On April 4, 2019, we also executed a Memorandum of Understanding (“MOU”) with Praj Industries Ltd. to commercialize our renewable hydrocarbon products in India, including our ATJ and renewable isooctane, derived from our renewable isobutanol. The MOU contemplates two phases. In phase one, Praj will implement a pilot plant in India for the purpose of introducing our technology to potential customers. Following phase one, we expect to enter into a commercial license agreement for the production of renewable hydrocarbons. Together, we expect to use a combination of their respective technologies for the conversion of sugars to renewable hydrocarbon products.
|
|
|
|
Luverne Facility Update
As previously announced, we are undertaking several initiatives to improve the profitability of the Luverne Facility. Specifically, we are adapting and optimizing the Luverne Facility’s energy and equipment infrastructure to use lower amounts of lower fossil-based energy sources to lower the carbon intensity score of our products and decrease our production costs. We are also installing a process, the Shockwave Process, to fractionate corn to enable more feed and food products to be sold from the Luverne Facility that should increase revenues and profitability at the Luverne Facility. The Shockwave Process is expected to be operational during the first half of 2019. In addition, we are currently evaluating the implementation of one or more of the following systems or technologies to further lower our use of fossil-based energy sources at the Luverne Facility: combined heat and power systems; manure biogas, wind power and certain other expansion and energy reduction technologies. We expect that by approximately the end of 2020 we will have completed certain projects at our Luverne Facility to improve the carbon intensity score of our products that will increase the value of our ethanol and related products and that should translate into increased revenues for us as a result of the credits associated with our renewable fuels under LCFS and/or RFS. We expect this 'de-carbonization' process will benefit future production expansions at the Luverne Facility if implemented.
As previously disclosed, during 2017, we hired a third-party engineering firm to test the structural integrity of two of our three carbon steel production fermentation vessels. The results of the testing indicate that one of these fermentation vessels had at least one more year of life before needing repair, and the other one had approximately two months of life remaining. In April 2019, we had an inspection done on a third carbon steel fermenter. Based on this inspection, we decided to retire this fermenter and use one of the recently repaired fermenters. Besides these three carbon steel production fermenters, we have two stainless steel production fermenters.
Recently, we decided to repair two of the carbon steel fermentation vessels. Repairs are expected to be completed by the second quarter of 2019, at an estimated cost of approximately $0.6 million. After the repairs, the estimated useful life of the vessels is expected to be twenty-years.
Financial Condition
For the three month
s ended March 31, 2019 and 2018, we incurred a consolidated net loss of $6.1 million and $2.5 million, respectively, and had an accumulated deficit of $435.5 million at March 31, 2019. Our cash and cash equivalents at March 31, 2019 totaled $35.5 million which is primarily being used for the following: (i) operating activities of our Luverne Facility; (ii) operating activities at our corporate headquarters in Colorado, including research and development work; (iii) capital expenditures primarily associated with the Luverne Facility, including capital expenditures to “de-carbonize” the Luverne Facility; (iv)
exploration of strategic alternatives and new financings; and (v) debt service and repayment obligations.
The continued operation of our business is dependent upon raising additional capital through future public and private equity offerings, debt financings or through other alternative financing arrangements. In addition, successful completion of our research and development programs and the attainment of profitable operations are dependent upon future events, including our ability to raise sufficient capital to expand our commercial production facility, completion of our development activities resulting in sales of isobutanol or isobutanol-derived products and/or technology, achieving market acceptance and demand for our products and services and attracting and retaining qualified personnel.
We expect to incur future net losses as we continue to fund the development and commercialization of our products and product candidates. We have primarily relied on raising capital to fund our operations and debt service obligations by issuing common stock and warrants in underwritten public offerings. Those issuances have caused significant dilution to our existing stockholders. While we have sought, and will continue to seek, other, less dilutive forms of financing to fund our operations and debt service obligations, there is no assurance that we will be successful in doing so.
Our transition to profitability is dependent upon, among other things, the successful development and commercialization of our products and product candidates, the achievement of a level of revenues adequate to support our cost structure and securing sufficient financing for the build-out and Retrofit of the Luverne Facility or a facility at another suitable location. We may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise additional cash. We intend to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, we may seek additional capital through arrangements with strategic partners or from other sources, may seek to restructure our debt and we will continue to address our cost structure. Notwithstanding, there can be no assurance that we will be able to raise additional funds, or achieve or sustain profitability or positive cash flows from operations.
Results of Operations
Comparison of the Three Months Ended March 31, 2019 and 2018
|
|
Three Months Ended March 31,
|
|
|
|
|
|
(in thousands)
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
Revenue and cost of goods sold
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol sales and related products, net
|
|
$
|
5,664
|
|
|
$
|
8,218
|
|
|
$
|
(2,554
|
)
|
Hydrocarbon revenue
|
|
|
739
|
|
|
|
–
|
|
|
|
739
|
|
Grant and other revenue
|
|
|
–
|
|
|
|
25
|
|
|
|
(25
|
)
|
Total revenues
|
|
|
6,403
|
|
|
|
8,243
|
|
|
|
(1,840
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
8,961
|
|
|
|
10,583
|
|
|
|
(1,622
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loss
|
|
|
(2,558
|
)
|
|
|
(2,340
|
)
|
|
|
(218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expense
|
|
|
978
|
|
|
|
789
|
|
|
|
189
|
|
Selling, general and administrative expense
|
|
|
2,092
|
|
|
|
1,870
|
|
|
|
222
|
|
Total operating expenses
|
|
|
3,070
|
|
|
|
2,659
|
|
|
|
411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(5,628
|
)
|
|
|
(4,999
|
)
|
|
|
(629
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(755
|
)
|
|
|
(825
|
)
|
|
|
70
|
|
(Loss) on exchange of debt
|
|
|
–
|
|
|
|
(21
|
)
|
|
|
20
|
|
Gain from change in fair value of derivative warrant liability
|
|
|
1
|
|
|
|
477
|
|
|
|
(476
|
)
|
Gain from change in fair value of 2020 Notes embedded derivative
|
|
|
246
|
|
|
|
2,858
|
|
|
|
(2,612
|
)
|
Other income
|
|
|
–
|
|
|
|
8
|
|
|
|
(8
|
)
|
Total other expense, net
|
|
|
(508
|
)
|
|
|
2,497
|
|
|
|
(3,005
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(6,136
|
)
|
|
$
|
(2,502
|
)
|
|
$
|
(3,634
|
)
|
Revenue.
Revenue from the sale of ethanol, isobutanol and related products for the three months ended March 31, 2019 was $5.6 million, a decrease of $2.6 million from the three months ended March 31, 2018. This decrease was primarily the result of a combination of (i) decreased sales volumes of ethanol and distiller grains and (ii) a decline in ethanol prices for the three months ended March 31, 2019 compared with the same period ended March 31, 2018. During the three months ended March 31, 2019, we sold 3.7 million gallons of ethanol compared to 4.9 million gallons of ethanol sold in the three months ended March 31, 2018.
Hydrocarbon revenues are comprised of ATJ, isooctane and isooctene sales. Hydrocarbon sales increased by $0.7 million during the three months ended March 31, 2019 as a result of greater shipments of finished products from our demonstration plant located at the South Hampton Resources, Inc. facility near Houston, Texas (the “South Hampton Facility”).
Grant and other revenue was $0.0 million during the three months ended March 31, 2019, a decrease of less than $0.1 million from the three months ended March 31, 2018.
Cost of goods sold.
Cost of goods sold was $9.0 million during the three months ended March 31, 2019, compared with $10.6 million during the three months ended March 31, 2018, a decrease of approximately $1.6 million, primarily the result of decreased production for the three months ended March 31, 2019 compared to March 31, 2018 in response to an unfavorable commodity environment for the three months ended March 31, 2019. Cost of goods sold included approximately $7.4 million associated with the production of ethanol and related products and approximately $1.6 million in depreciation expense during the three months ended March 31, 2019.
Research and development expense.
Research and development expense increased by approximately $0.2 million during the three months ended March 31, 2019, compared with the three months ended March 31, 2018, due primarily to an increase in consulting expenses.
Selling, general and administrative expense.
Selling, general and administrative expense increased by approximately $0.2 million during the three months ended March 31, 2019, compared with the three months ended March 31, 2018, due primarily to an increase in stock compensation expense.
Interest expense
. Interest expense during the three months ended March 31, 2019 was $0.8 million, a decrease of $0.1 million compared to the three months ended March 31, 2018, due to
the exchange of approximately $3.2 million of our 12% convertible senior secured notes due 2020 (the “2020 Notes”) for our common stock during 2018, which resulted in a decrease in the outstanding principal amount of the 2020 Notes as of March 31, 2019.
(Loss)/Gain from change in fair value of derivative warrant liability.
During the three months ended March 31, 2019 we incurred a $1,000 non-cash gain on changes in the fair value of the derivative warrant liability, primarily due to the decrease in the price of our common stock.
(Loss) from change in fair value of the 2020 Notes embedded derivative.
During the three months ended March 31, 2019, the estimated fair value of the 2020 Notes embedded derivative liability decreased, resulting in a non-cash gain of $0.2 million, primarily due to the decrease in the price of our common stock since the June 20, 2017 issuance date.
Revenue, Cost of Goods Sold and Operating Expenses
Revenue
During the three months ended March 31, 2019 and 2018, we generated revenue from: (i) the sale of ethanol, isobutanol and related products; (ii) hydrocarbon sales, consisting primarily of the sale of ATJ fuel, isooctane and isooctene derived from our isobutanol for purposes of certification and testing; and (iii) government grants and research and development programs.
Cost of Goods Sold and Gross Loss
Cost of goods sold during the three months ended March 31, 2019 and 2018 primarily includes
costs directly associated with isobutanol production and ethanol production at the Luverne Facility, such as costs for direct materials, direct labor, depreciation, other operating costs and certain plant overhead costs. Direct materials include corn feedstock, denaturant and process chemicals. Direct labor includes compensation of personnel directly involved in production operations at the Luverne Facility. Other operating costs include utilities and natural gas usage.
Our gross loss is defined as our total revenue less our cost of goods sold.
Research and Development
Our research and development costs consist of expenses incurred to identify, develop and test our technologies for the production of isobutanol and the development of downstream applications thereof. Research and development expenses include personnel costs (including stock-based compensation), consultants and related contract research, facility costs, supplies, depreciation and amortization expense on property, plant and equipment used in product development, license fees paid to third parties for use of their intellectual property and patent rights and other overhead expenses incurred to support our research and development programs. Research and development expenses also include upfront fees and milestone payments made under licensing agreements and payments for sponsored research and university research gifts to support research at academic institutions.
Selling, General and Administrative
Selling, general and administrative expenses consist of personnel costs (including stock-based compensation), consulting and service provider expenses (including patent counsel-related costs), legal fees, marketing costs, corporate insurance costs, occupancy-related costs, depreciation and amortization expenses on property, plant and equipment not used in our product development programs or recorded in cost of goods sold, travel and relocation and hiring expenses.
We also record selling, general and administrative expenses for the operations of the Luverne Facility that include administrative and oversight expenses, certain personnel-related expenses, insurance and other operating expenses.
Liquidity and Capital Resources
Since our inception in 2005, we have devoted most of our cash resources to manufacturing ethanol, isobutanol and related products, research and development and selling, general and administrative activities related to the commercialization of ethanol, isobutanol, as well as related products from renewable feedstocks. We have incurred losses since inception and expect to incur losses through at least 2020. We have financed our operations primarily with proceeds from multiple sales of equity and debt securities, borrowings under debt facilities and product sales.
The continued operation of our business, including any expansion of the Luverne Facility, is dependent upon raising additional capital through future public and private equity offerings, debt financings or through other alternative financing arrangements. In addition, successful completion of our research and development programs and the attainment of profitable operations are dependent upon future events, including access to sufficient capital, repayment of our current debt, completion of our development activities resulting in sales of isobutanol or isobutanol-derived products and/or technology, achieving market acceptance and demand for
our products and services and attracting and retaining qualified personnel. Such additional capital may not be available to us on acceptable terms or at all.
As of March 31, 2019, we had an accumulated deficit of $435.5 million with cash and cash equivalents totaling $35.5 million.
The following table sets forth the major sources and uses of cash for each of the periods set forth below (in thousands):
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Net cash used in operating activities
|
|
$
|
(5,708
|
)
|
|
$
|
(4,350
|
)
|
Net cash used in investing activities
|
|
$
|
(2,204
|
)
|
|
$
|
(67
|
)
|
Net cash provided by/(used in) financing activities
|
|
$
|
9,644
|
|
|
$
|
(107
|
)
|
Operating Activities
Our primary uses of cash from operating activities are personnel-related expenses, research and development expenses, which include costs incurred under development agreements; costs and expenses for the production of isobutanol, ethanol and related products, logistics costs, costs associated with further processing of isobutanol and costs associated with the operation of the South Hampton Facility and debt service p
ayments.
During the three months ended March 31, 2019, we used $5.7 million in cash from operating activities primarily resulting from a net loss of $6.1 million, a $1.6 million increase in working capital items, and approximately $2.0 million in non-cash operating activities.
Investing Activities
During the three months ended March 31, 2019, we used $
2.2 million in cash from investing activities related primarily to capital expenditures at our Luverne Facility.
Financing Activities
During the three months ended March 31, 2019, we raised approximately $9.6 million associated with financing activities, which consisted entirely of $9.6 million of net proceeds from sales under our “at-the-market” offering program discussed below.
At-the-Market Offering Program.
In February 2018, we commenced an at-the-market offering program, which allows us to sell and issue shares of our common stock from time-to-time. The at-the-market offering program was amended multiple times during 2018 to increase the available capacity under the at-the-market offering program by an aggregate of approximately $84.9 million. During the three months ended March 31, 2019, we issued 3,244,941 shares of common stock under the at-the-market offering program for gross proceeds of $9.9 million. We paid commissions to our sales agent of approximately $0.2 million and incurred other offering related expenses of $0.01 million during the three months ended March 31, 2019. As of March 31, 2019, we had remaining capacity to issue and sell up to approximately $34.7 million of additional shares of common stock under the at-the-market offering program. However, pursuant to Instruction I.B.6. to Form S-3, because the our market capitalization was below $75.0 million as of March 27, 2019, the date we filed our Annual Report on Form 10-K for the year ended December 31, 2018, we may only sell securities via Form S-3 if the aggregate market value of the securities sold by or on behalf of us during the 12-month period immediately prior to and including the date of the sale is no more than one-third of all common voting and nonvoting equity held by non-affiliates of us. Given the amount of common stock sold by us under the at-the-market offering program in 2018, we are currently unable to issue and sell additional shares of common stock under the at-the-market offering program.
2020 Notes
On April 19, 2017, we entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) with WB Gevo, LTD, the holder of our 12.0% convertible senior secured notes due 2017 (such notes, the “2017 Notes” and, such holder, the “Holder”), and Whitebox Advisors LLC, in its capacity as representative of the Holder (“Whitebox”). Pursuant to the terms of the Purchase Agreement, the Holder, subject to certain conditions, including approval of the transaction by our stockholders (which was received on June 15, 2017), agreed to exchange all of the outstanding principal amount of the 2017 Notes for an equal principal amount of our newly created 2020 Notes, plus an amount in cash equal to the accrued and unpaid interest (other than interest paid in kind) on the 2017 Notes (the “Exchange”). On June 20, 2017, we completed the Exchange, terminated the 2017 Notes Indenture and cancelled the 2017 Notes. As of March 31, 2019 and December 31, 2018, the outstanding principal on the 2020 Notes, including PIK Interest (as defined and described below), was $13.8 million and $13.8 million, respectively.
The 2020 Notes will mature on March 15, 2020. The 2020 Notes bear interest at a rate equal to 12% per annum (with 2% potentially payable as PIK Interest at our option), payable on March 31, June 30, September 30, and December 31 of each year. Under certain circumstances, we have the option to pay a portion of the interest due on the 2020 Notes by either (a) increasing the principal amount of the 2020 Notes by the amount of interest then due or (b) issuing additional 2020 Notes with a principal amount equal to the amount of interest then due (interest paid in the manner set forth in (a) or (b) being referred to as “PIK Interest”).
The 2020 Notes are convertible into shares of our common stock, subject to certain terms and conditions. The initial conversion price of the 2020 Notes is equal to $14.72 per share of common stock, or 0.0679 shares of common stock per $1 principal amount of 2020 Notes.
See Note 7,
Debt
, to our consolidated financial statements included herein for further discussion of the 2020 Notes.
Critical Accounting Policies and Estimates
Except for the adoption of ASC 842 “
Leases”
(see Note 4) there have been no significant changes to our critical accounting policies since December 31, 2018. However, see Note 1,
Nature of Business, Financial Condition and Basis of Presentation,
to our consolidated financial statements included herein for a discussion of recently issued accounting pronouncements and their impact or future potential impact on our financial results, if determinable. For a description of critical accounting policies that affect our significant judgments and estimates used in the preparation of our consolidated financial statements, refer to our Annual Report.
Contractual Obligations and Commitments
The following summarizes the future commitments arising from our contractual obligations at March 31, 2019 (in thous
ands).
|
|
Less than 1 year
|
|
|
1 - 3 years
|
|
|
4 - 5 years
|
|
|
5+ Years
|
|
|
Total
|
|
Principal debt payments (1)
|
|
$
|
14,112
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
14,112
|
|
Interest payments on debt (2)
|
|
|
1,340
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,340
|
|
Operating leases (3)
|
|
|
1,238
|
|
|
|
654
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,892
|
|
Insurance & Maintenance
|
|
|
375
|
|
|
|
391
|
|
|
|
235
|
|
|
|
-
|
|
|
|
1,001
|
|
Total
|
|
$
|
17,065
|
|
|
$
|
1,045
|
|
|
$
|
235
|
|
|
|
-
|
|
|
$
|
18,345
|
|
(1)
|
Represents cash principal payments due to the holders of the 2020 Notes.
|
(2)
|
Represents interest payments due to the holders of the 2020 Notes.
|
(3)
|
Represents commitments for operating leases related to our leased facility in Englewood, Colorado and our lease for rail cars in Luverne, Minnesota for ethanol and isobutanol shipments.
|
The table above reflects only payment obligations that are fixed and determinable as
of March 31, 2019.
Off-Balance Sheet Arrangements
As of March 31, 2019, we
did not have any material off-balance sheet arrangements, except for operating lease obligations disclosed in our commitment and contingencies table above.