Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the
fourth quarter of 2021 and summarized recent corporate highlights.
Recent Corporate Highlights
- On December 7, 2021, Kolmar Americas
Inc and Gevo entered into a financeable fuel supply agreement for
45 million gallons per year of renewable, energy-dense liquid
hydrocarbons.
- On November 16, 2021, Gevo signed a
memorandum of understanding (MoU) with Sweetwater Energy, Inc.,
regarding the use of sustainably sourced agricultural residues and
woody biomass as a feedstock for producing cellulosic alcohols and
energy-dense renewable liquid hydrocarbons.
- On October 25, 2021, ADM, a global
leader in nutrition and agricultural origination and processing,
and Gevo signed a MoU to support the production of sustainable
aviation fuel and other low carbon-footprint hydrocarbon
fuels.
- On October 12, 2021, Gevo and Axens
North America, Inc. (“Axens”) entered into an agreement that
establishes a strategic alliance aimed at accelerating the
commercialization of sustainable ethanol-to-jet projects in the
United States.
- In December 2021, Argonne National
Laboratory (“ANL”), a U.S. Department of Energy multidisciplinary
science and engineering research center, reported the preliminary
results of its life cycle analysis of Gevo’s planned Net-Zero plant
to Gevo. ANL’s preliminary findings were consistent with Gevo’s
findings that when renewable energy is used to power production
processes, and the corn is produced with climate smart ag practices
that drive the carbon intensity score of corn down, then the
sustainable aviation fuel (“SAF”) that would be produced could
achieve net-zero life-cycle emissions when measured using ANL’s
GREET Model. When carbon capture sequestration technology is added
as a de-carbonization tool, the life-cycle emissions should be
negative according to the model. ANL is currently working through
the scientific peer reviewed publication process.
- In January 2022, Gevo’s renewable
natural gas (“RNG”) facilities in NW Iowa began to start-up
operations. The start-up process is expected to take a few months
and reach a steady state operation in the second quarter of 2022
which will allow time for Gevo to apply for credits under the
federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon
Fuel Standard (“LCFS”) in California, including verification of
carbon intensity levels and other requirements. Depending on the
timing of the qualification and approval processes for obtaining
credits under RFS and LCFS, Gevo expects to generate biogas
revenues starting in the second quarter of 2022 and sales of
credits under RFS and LCFS in the second half of 2022. Gevo expects
that the RNG Project EBITDA1 should generate approximately $16-22
million per year by 2023 depending on a variety of assumptions,
including the value of credits under RFS and LCFS.
2021 Fourth Quarter Financial Highlights
- Ended the
quarter with cash, cash equivalents, restricted cash and marketable
securities of $475.8 million compared to $522.4 as of the end Q3
2021
- Revenue of $0.1
million for the quarter compared to $0.5 million in Q4 2020
- Loss from
operations of ($16.5) million for the quarter compared to ($7.6)
million in Q4 2020
- Non-GAAP cash
EBITDA loss2 of ($10.9) million for the quarter compared to ($5.7)
million in Q4 2020
- Net loss per
share of ($0.08) for the quarter compared to ($0.15) in Q4
2020
- Non-GAAP
adjusted net loss per share3 of ($0.08) for the quarter compared to
($0.07) in Q4 2020
Net-Zero 1 Update
Gevo continues to make progress on the design and engineering
work related to its Net-Zero 1 Project. As a result of Gevo’s
agreement and relationship with Axens, Gevo recently made the
decision to utilize ethanol fermentation technology instead of
isobutanol fermentation technology to produce SAF and other
renewable hydrocarbon products at Net-Zero 1.
Gevo believes that there are several advantages of using ethanol
fermentation technology at Net-Zero 1, including the following:
- Lower capital costs per gallon of hydrocarbon produced
- Increased production capacity of renewable hydrocarbons from
45MGPY to 60MGPY
- Process guarantees from Axens on the conversion of ethanol into
SAF
- Lower technology and execution risk which are expected to make
debt financing more readily available
- Leverages previous Net-Zero 1 engineering and design work from
2021
- The hydrocarbon plant design for Net-Zero 1 can be used at any
ethanol plant that meets certain sustainability and carbon
intensity score requirements which should enable Gevo to grow more
rapidly to meet demand
Gevo currently expects to construct Net-Zero 1 in Lake Preston,
South Dakota. In addition to Lake Preston, Gevo has identified
several other attractive greenfield sites that are at least as
attractive as Lake Preston from the standpoint of fundamental
economics, access to sustainable feedstocks, deployment of
renewable energy and transportation of finished product to
market. Lake Preston is the furthest developed of the sites that
Gevo has identified for Net-Zero 1. Gevo expects final site
selection for Net-Zero 1 to occur later in 2022.
Gevo is targeting Net-Zero 1 to be mechanically complete in late
2024 and operational in 2025. Based on current assumptions,
including those around future commodity pricing and future
environmental benefit credit values, and preliminary engineering
work, Gevo estimates Net-Zero 1 will have a fully installed and
non-recourse project financed capital cost of approximately $900
million, to generate approximately $150-200 million of
Net-Zero 1 Project EBITDA4 per year. Because Gevo can leverage
a substantial amount of the work already done for Net-Zero 1, Gevo
expects to order long lead equipment and begin site preparation in
late 2022 with full construction commencing in 2023.
Commenting on the fourth quarter of 2021 and recent corporate
developments, Dr. Patrick R. Gruber, Gevo’s Chief Executive
Officer, said “It’s an exciting time to work for Gevo with plans
moving forward on our first of its kind, fully-decarbonized
alcohol-to-SAF plant that will produce commercial volumes of SAF.
Our relationship with Axens is bearing fruit. Knowing how to
convert ethanol into net-zero SAF and other hydrocarbons is key to
our growth strategy, especially with the potential commercial
relationships with ADM and other partners.”
Dr. Gruber continued, “Over the last twelve months, we’ve hired
the leaders for our Net-Zero 1 Project. We are focused on
engineering Net-Zero 1 so that we can get it built and
operating.”
Fourth Quarter 2021 Financial Results
Revenue for the three months ended December 31, 2021 was $0.1
million compared with $0.5 million in the same period in 2020.
During the three months ended December 31, 2021, hydrocarbon
revenue was nil compared to $0.4 million during the three months
ended December 31, 2020. Gevo’s hydrocarbon revenue is comprised of
sales of SAF and renewable premium gasoline.
During the three months ended December 31, 2021 and 2020, no
significant revenue was derived at Gevo’s production facility in
Luverne, Minnesota (the “Luverne Facility”) related to ethanol
sales and related products.
As a result of COVID-19 and in response to an unfavorable
commodity environment, Gevo terminated its production of ethanol
and distiller grains in March 2020. As previously announced, the
Luverne Facility is currently producing isobutanol that will be
used as a feedstock for us to produce SAF and renewable premium
gasoline to fulfill existing sales contracts. We also expect to
utilize some of the isobutanol produced to develop certain
isobutanol specialty markets. These renewable hydrocarbons will be
produced at Gevo’s demonstration plant at the South Hampton
Resources, Inc. facility in Silsbee, Texas (the “South Hampton
Facility”).
Cost of goods sold was $2.8 million for the three months ended
December 31, 2021, compared with $0.9 million in the same period in
2020. We began producing isobutanol during the third quarter 2021
resulting in higher production costs. The cost of goods sold was
significantly higher for isobutanol without the coproduction of
ethanol as operated in previous years as we worked to improve and
refine our production processes. Cost of goods sold included costs
associated with the production of isobutanol, SAF and isooctane as
well as maintenance of the Luverne Facility and the South Hampton
Facility.
Depreciation and amortization for the three months ended
December 31, 2021 totaled approximately $1.1 million related to
production costs. Depreciation and amortization for the three
months ended December 31, 2021 totaled approximately $0.5 million
related to research and development expense and sales, general and
administrative expense.
Gross loss was ($3.8) million for the three months ended
December 31, 2021, compared with a ($1.4) million gross loss in the
same period in 2020.
Research and development expense increased by approximately
$1.1 million during the three months ended December 31, 2021,
compared with the three months ended December 31, 2020, due
primarily to an increase in personnel and recruiting costs related
to increased headcount and stock-based compensation as we work to
improve our process for growing and fermenting yeast strains.
Selling, general and administrative expense increased by
approximately $4.5 million during the three months ended December
31, 2021, compared with the three months ended December 31, 2020,
due primarily to increases in personnel costs and recruiting
related to increased headcount and stock-based compensation,
increased professional fees, higher costs for insurance and
increased consulting fees related to documenting our compliance
with Section 404(b) of the Sarbanes-Oxley Act.
Preliminary stage project costs related to our RNG and Net-Zero
projects were approximately $2.1 million during the three months
ended December 31, 2021 compared to $1.0 million for the three
months ended December 31, 2020. During the three months ended
December 31, 2021, the preliminary stage project costs were
primarily related to consulting for preliminary engineering costs
and for personnel expenses to support the growth in business
activity at our Net-Zero projects. During the three months ended
December 31, 2020, the preliminary stage project costs were
primarily related to consulting for preliminary engineering costs
and for personnel expenses to support the growth in business
activity at our RNG project. During the three months ended December
31, 2021, we began capitalizing our Net-Zero 1 project costs after
completing certain front-end engineering studies and determining it
was probable that we would build the Net-Zero 1 project.
Loss from operations in the three months ended December 31, 2021
was ($16.5) million, compared with a ($7.6) million loss from
operations in the same period in 2020.
Non-GAAP cash EBITDA loss5 in the three months ended December
31, 2021 was ($10.9) million, compared with a ($5.7) million
non-GAAP cash EBITDA loss in the same period in 2020.
Interest expense decreased by $0.4 million in the three months
ended December 31, 2021 as compared to the same period in 2020, due
to the conversion of all Gevo’s 12% convertible senior secured
notes due 2020/2021 to common stock during 2020.
Interest and dividend income during the three months ended
December 31, 2021 increased $0.2 million compared to the three
months ended December 31, 2020, primarily due to income received on
marketable securities and restricted cash.
Gevo incurred a net loss for the three months ended December 31,
2021 of ($16.5) million, compared with a net loss of ($18.1)
million during the same period in 2020. Non-GAAP adjusted net loss6
for the three months ended December 31, 2021 was ($16.5) million,
compared with a non-GAAP adjusted net loss of ($8.1) million during
the same period in 2020.
Cash, cash equivalents, restricted cash and marketable
securities at December 31, 2021 totaled $475.8 million compared to
$522.4 as of the end Q3 2021.
Webcast and Conference Call Information
Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT)
will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn
Smull, Chief Financial Officer, Heather Manuel, Vice President –
Investor Relations & Communications and John Richardson,
Investor Relations Manager. They will review Gevo’s financial
results and provide an update on recent corporate highlights.
To participate in the conference call, please dial 1 (833)
729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.)
and reference the access code 3465026# or through the event weblink
https://edge.media-server.com/mmc/p/38zwqbqa.
A replay of the call and webcast will be available two hours
after the conference call ends on February 24, 2022. To access the
replay, please visit https://edge.media-server.com/mmc/p/38zwqbqa.
The archived webcast will be available in the Investor Relations
section of Gevo’s website at www.gevo.com.
About Gevo
Gevo’s mission is to transform renewable energy and carbon into
energy-dense liquid hydrocarbons. These liquid hydrocarbons can be
used for drop-in transportation fuels such as gasoline, jet fuel,
and diesel fuel, that when burned have potential to yield net-zero
greenhouse gas emissions when measured across the full lifecycle of
the products. Gevo uses low-carbon renewable resource-based
carbohydrates as raw materials and is in an advanced state of
developing renewable electricity and renewable natural gas for use
in production processes, resulting in low-carbon fuels with
substantially reduced carbon intensity (the level of greenhouse gas
emissions compared to standard petroleum fossil-based fuels across
their lifecycle). Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven, patented,
technology enabling the use of a variety of low-carbon sustainable
feedstocks to produce price-competitive low carbon products such as
gasoline components, jet fuel, and diesel fuel yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business.
Gevo believes that Argonne National Laboratory GREET model is
the best available standard of scientific based measurement for
life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, Gevo’s business development activities, Gevo’s
agreement with Kolmar Americas Inc., Gevo’s Net-Zero Projects,
Gevo’s RNG project, fermentation technologies, the status of the
engineering and design work for the Net-Zero 1 Project, the timing
of Net-Zero 1, projections concerning Net-Zero 1, including
projected capital costs, projected internal rates of return and
projected EBITDA, Gevo’s ability to the commercialize its projects,
Gevo’s offtake agreements, Gevo’s plans to develop its business,
Gevo’s ability to successfully construct and finance its operations
and growth projects, Gevo’s ability to achieve cash flow from its
planned projects, the ability of Gevo’s products to contribute to
lower greenhouse gas emissions and other statements that are not
purely statements of historical fact. These forward-looking
statements are made based on the current beliefs, expectations and
assumptions of the management of Gevo and are subject to
significant risks and uncertainty. Investors are cautioned not to
place undue reliance on any such forward-looking statements. All
such forward-looking statements speak only as of the date they are
made, and Gevo undertakes no obligation to update or revise these
statements, whether as a result of new information, future events
or otherwise. Although Gevo believes that the expectations
reflected in these forward-looking statements are reasonable, these
statements involve many risks and uncertainties that may cause
actual results to differ materially from what may be expressed or
implied in these forward-looking statements. For a further
discussion of risks and uncertainties that could cause actual
results to differ from those expressed in these forward-looking
statements, as well as risks relating to the business of Gevo in
general, see the risk disclosures in the Annual Report on Form 10-K
of Gevo for the year ended December 31, 2021 and in subsequent
reports on Forms 10-Q and 8-K and other filings made with the U.S.
Securities and Exchange Commission by Gevo.
Non-GAAP Financial Information
This press release contains financial measures that do not
comply with U.S. generally accepted accounting principles (“GAAP”),
including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and
non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss
excludes depreciation and amortization and non-cash stock-based
compensation. Non-GAAP adjusted net loss and adjusted net loss per
share excludes non-cash gains and/or losses recognized in the
quarter due to the changes in the fair value of certain of Gevo’s
financial instruments, such as warrants, convertible debt and
embedded derivatives. Management believes these measures are useful
to supplement its GAAP financial statements with this non-GAAP
information because management uses such information internally for
its operating, budgeting and financial planning purposes. These
non-GAAP financial measures also facilitate management’s internal
comparisons to Gevo’s historical performance as well as comparisons
to the operating results of other companies. In addition, Gevo
believes these non-GAAP financial measures are useful to investors
because they allow for greater transparency into the indicators
used by management as a basis for its financial and operational
decision making. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and therefore, should only be
read in conjunction with financial information reported under GAAP
when understanding Gevo’s operating performance. A reconciliation
between GAAP and non-GAAP financial information is provided in the
financial statement tables below.
1 RNG Project EBITDA is a non-GAAP financial measure that we
define as total operating revenues less total operating expenses
for the project.2 Cash EBITDA loss is a non-GAAP measure calculated
by adding back depreciation and amortization and non-cash stock
compensation to GAAP loss from operations. A reconciliation of cash
EBITDA loss to GAAP loss from operations is provided in the
financial statement tables following this release.3 Adjusted net
loss per share is a non-GAAP measure calculated by adding back
non-cash gains and/or losses recognized in the quarter due to the
changes in the fair value of certain of our financial instruments,
such as warrants, convertible debt and embedded derivatives, to
GAAP net loss per share. A reconciliation of adjusted net loss per
share to GAAP net loss per share is provided in the financial
statement tables following this release.4 Net-Zero 1 Project EBITDA
is a non-GAAP financial measure that we define as total operating
revenues less total operating expenses for the project.5 Cash
EBITDA loss is a non-GAAP measure calculated by adding back
depreciation and amortization and non-cash stock compensation to
GAAP loss from operations. A reconciliation of cash EBITDA loss to
GAAP loss from operations is provided in the financial statement
tables following this release.6 Adjusted net loss is a non-GAAP
measure calculated by adding back non-cash gains and/or losses
recognized in the quarter due to the changes in the fair value of
certain of our financial instruments, such as warrants, convertible
debt and embedded derivatives, to GAAP net loss. A reconciliation
of adjusted net loss to GAAP net loss is provided in the financial
statement tables following this release.
Gevo, Inc.Condensed Consolidated
Balance Sheets Information(Unaudited, in
thousands, except share and per share amounts)
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
40,833 |
|
|
$ |
78,338 |
|
Marketable securities (current) |
|
275,340 |
|
|
|
- |
|
Restricted cash (current) |
|
25,032 |
|
|
|
- |
|
Accounts receivable, net |
|
978 |
|
|
|
527 |
|
Inventories |
|
2,751 |
|
|
|
2,491 |
|
Prepaid expenses and other current assets |
|
6,857 |
|
|
|
1,914 |
|
Total current assets |
|
351,791 |
|
|
|
83,270 |
|
|
|
|
|
Property, plant and equipment, net |
|
139,141 |
|
|
|
66,408 |
|
Long-term marketable securities |
|
64,396 |
|
|
|
- |
|
Long-term restricted cash |
|
70,168 |
|
|
|
- |
|
Operating right-of-use assets |
|
2,414 |
|
|
|
133 |
|
Finance right-of-use assets |
|
27,297 |
|
|
|
176 |
|
Intangible assets, net |
|
8,938 |
|
|
|
114 |
|
Deposits and other assets |
|
2,331 |
|
|
|
1,998 |
|
Total assets |
$ |
666,476 |
|
|
$ |
152,099 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Accounts payable and accrued liabilities |
$ |
28,288 |
|
|
$ |
3,943 |
|
Operating lease liabilities (current) |
|
772 |
|
|
|
172 |
|
Financing lease liabilities (current) |
|
3,413 |
|
|
|
10 |
|
Loans payable - other (current) |
|
158 |
|
|
|
807 |
|
Total current liabilities |
|
32,631 |
|
|
|
4,932 |
|
|
|
|
|
2021 Bonds payable (long-term) |
|
66,486 |
|
|
|
- |
|
Loans payable - other (long-term) |
|
318 |
|
|
|
447 |
|
Operating lease liabilities (long-term) |
|
1,902 |
|
|
|
- |
|
Finance lease liabilities (long-term) |
|
17,797 |
|
|
|
162 |
|
Other long-term liabilities |
|
87 |
|
|
|
179 |
|
Total liabilities |
|
119,221 |
|
|
|
5,720 |
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
Common Stock, $0.01 par value
per share; 250,000,000 authorized, 201,988,662 and 128,138,311
shares issued and outstanding at December 31, 2021 and 2020,
respectively. |
|
2,020 |
|
|
|
1,282 |
|
Additional paid-in capital |
|
1,103,224 |
|
|
|
643,269 |
|
Accumulated other comprehensive loss |
|
(614 |
) |
|
|
- |
|
Accumulated deficit |
|
(557,375 |
) |
|
|
(498,172 |
) |
Total stockholders' equity |
|
547,255 |
|
|
|
146,379 |
|
Total liabilities and stockholders' equity |
$ |
666,476 |
|
|
$ |
152,099 |
|
|
|
|
|
Gevo, Inc.Condensed Consolidated
Statements of Operations Information(Unaudited, in
thousands, except share and per share amounts)
|
Three Months Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Revenue
and cost of goods sold |
|
|
|
|
|
Ethanol sales and related products, net |
$ |
34 |
|
|
$ |
5 |
|
|
$ |
5,931 |
|
Hydrocarbon revenue |
|
20 |
|
|
|
416 |
|
|
|
957 |
|
Other revenue |
|
- |
|
|
|
110 |
|
|
|
- |
|
Total revenues |
|
54 |
|
|
|
531 |
|
|
|
6,888 |
|
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation shown below) |
|
2,791 |
|
|
|
866 |
|
|
|
7,836 |
|
Depreciation and amortization |
|
1,104 |
|
|
|
1,094 |
|
|
|
1,591 |
|
|
|
|
|
|
|
Gross loss |
|
(3,841 |
) |
|
|
(1,429 |
) |
|
|
(2,539 |
) |
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
Research and development expense |
|
2,570 |
|
|
|
1,507 |
|
|
|
271 |
|
Selling, general and administrative expense |
|
7,546 |
|
|
|
3,010 |
|
|
|
3,155 |
|
Preliminary stage project costs |
|
2,069 |
|
|
|
998 |
|
|
|
205 |
|
Loss on disposal of assets |
|
- |
|
|
|
587 |
|
|
|
23 |
|
Depreciation and amortization |
|
452 |
|
|
|
56 |
|
|
|
57 |
|
Total operating expenses |
|
12,637 |
|
|
|
6,158 |
|
|
|
3,711 |
|
|
|
|
|
|
|
Loss from
operations |
|
(16,478 |
) |
|
|
(7,587 |
) |
|
|
(6,250 |
) |
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
Interest expense |
|
(173 |
) |
|
|
(535 |
) |
|
|
(611 |
) |
Interest and dividend income |
|
183 |
|
|
|
26 |
|
|
|
32 |
|
(Loss) on modification of 2020 Notes |
|
- |
|
|
|
(6 |
) |
|
|
- |
|
(Loss) on conversion of 2020/21 Notes to common stock |
|
- |
|
|
|
(1,373 |
) |
|
|
- |
|
(Loss) from change in fair value of 2020/21 Notes embedded
derivative liability |
|
- |
|
|
|
(8,578 |
) |
|
|
- |
|
Other income (expense), net |
|
(45 |
) |
|
|
(1 |
) |
|
|
10 |
|
Total other income (expense) |
|
(35 |
) |
|
|
(10,467 |
) |
|
|
(569 |
) |
|
|
|
|
|
|
Net
loss |
$ |
(16,513 |
) |
|
$ |
(18,054 |
) |
|
$ |
(6,819 |
) |
|
|
|
|
|
|
Net loss
per share - basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.50 |
) |
|
|
|
|
|
|
Weighted-average number of common shares outstanding -
basic and diluted |
|
201,892,596 |
|
|
|
120,017,120 |
|
|
|
13,659,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gevo, Inc.Condensed Consolidated
Statements of Operations Information(Unaudited, in
thousands, except share and per share amounts)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Revenue and cost of
goods sold |
|
|
|
|
|
Ethanol sales and related products, net |
$ |
50 |
|
|
$ |
3,809 |
|
|
$ |
22,115 |
|
Hydrocarbon revenue |
|
483 |
|
|
|
1,501 |
|
|
|
2,338 |
|
Other revenue |
|
178 |
|
|
|
226 |
|
|
|
34 |
|
Total revenues |
|
711 |
|
|
|
5,536 |
|
|
|
24,487 |
|
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation shown below) |
|
7,687 |
|
|
|
9,313 |
|
|
|
30,286 |
|
Depreciation and amortization |
|
4,478 |
|
|
|
5,690 |
|
|
|
6,447 |
|
|
|
|
|
|
|
Gross loss |
|
(11,454 |
) |
|
|
(9,467 |
) |
|
|
(12,246 |
) |
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
Research and development expense |
|
6,775 |
|
|
|
3,511 |
|
|
|
3,868 |
|
Selling, general and administrative expense |
|
25,493 |
|
|
|
11,192 |
|
|
|
9,823 |
|
Preliminary stage project costs |
|
10,581 |
|
|
|
1,698 |
|
|
|
205 |
|
Loss on disposal of assets |
|
5,137 |
|
|
|
625 |
|
|
|
4 |
|
Depreciation and amortization |
|
650 |
|
|
|
214 |
|
|
|
209 |
|
Restructuring expense |
|
- |
|
|
|
254 |
|
|
|
- |
|
Total operating expenses |
|
48,636 |
|
|
|
17,494 |
|
|
|
14,109 |
|
|
|
|
|
|
|
Loss from
operations |
|
(60,090 |
) |
|
|
(26,961 |
) |
|
|
(26,355 |
) |
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
Gain on forgiveness of SBA Loans |
|
641 |
|
|
|
- |
|
|
|
- |
|
Interest expense |
|
(251 |
) |
|
|
(2,094 |
) |
|
|
(2,738 |
) |
Interest and dividend income |
|
571 |
|
|
|
102 |
|
|
|
33 |
|
(Loss) on modification of 2020 Notes |
|
- |
|
|
|
(732 |
) |
|
|
- |
|
(Loss) on conversion of 2020/21 Notes to common stock |
|
- |
|
|
|
(1,916 |
) |
|
|
- |
|
(Loss) from change in fair value of 2020/21 Notes embedded
derivative liability |
|
- |
|
|
|
(8,607 |
) |
|
|
394 |
|
Other income (expense), net |
|
(74 |
) |
|
|
22 |
|
|
|
6 |
|
Total other income (expense) |
|
887 |
|
|
|
(13,225 |
) |
|
|
(2,305 |
) |
|
|
|
|
|
|
Net loss |
$ |
(59,203 |
) |
|
$ |
(40,186 |
) |
|
$ |
(28,660 |
) |
|
|
|
|
|
|
Net loss per share -
basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.71 |
) |
|
$ |
(2.35 |
) |
|
|
|
|
|
|
Weighted-average
number of common shares outstanding - basic and
diluted |
|
195,794,606 |
|
|
|
56,881,586 |
|
|
|
12,177,906 |
|
|
|
|
|
|
|
Gevo, Inc.Condensed Consolidated
Statements of Comprehensive Income(Unaudited, in
thousands, except share and per share amounts)
|
Three Months Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Net Loss |
$ |
(16,513 |
) |
|
$ |
(18,054 |
) |
|
$ |
(6,815 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
Unrealized (loss) on available-for-sale securities, net of tax |
|
(262 |
) |
|
|
- |
|
|
|
- |
|
Adjustment for net (loss) realized and included in net income |
|
(56 |
) |
|
|
- |
|
|
|
- |
|
Total change in unrealized (loss) on marketable debt
securities |
|
(318 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Comprehensive
loss |
$ |
(16,831 |
) |
|
$ |
(18,054 |
) |
|
$ |
(6,815 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net Loss |
$ |
(59,203 |
) |
|
$ |
(40,186 |
) |
|
$ |
(28,660 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
Unrealized (loss) on available-for-sale securities, net of tax |
|
(524 |
) |
|
|
- |
|
|
|
- |
|
Adjustment for net (loss) realized and included in net income |
|
(90 |
) |
|
|
- |
|
|
|
- |
|
Total change in unrealized (loss) on marketable debt
securities |
|
(614 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Comprehensive
loss |
$ |
(59,817 |
) |
|
$ |
(40,186 |
) |
|
$ |
(28,660 |
) |
|
|
|
|
|
|
Gevo, Inc.Condensed Consolidated
Statements of Stockholders’ Equity
Information(Unaudited, in thousands, except share
amounts)
|
Common Stock |
|
Paid-In Capital |
|
Comprehensive Loss |
|
Accumulated Deficit |
|
Stockholders' Equity |
Shares |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2018 |
8,640,583 |
|
$ |
86 |
|
$ |
518,027 |
|
|
$ |
- |
|
|
$ |
(429,326 |
) |
|
$ |
88,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
of issue costs |
3,965,688 |
|
|
40 |
|
|
11,317 |
|
|
|
- |
|
|
|
- |
|
|
|
11,357 |
|
Non-cash stock-based
compensation |
- |
|
|
- |
|
|
1,221 |
|
|
|
- |
|
|
|
- |
|
|
|
1,221 |
|
Issuance of common stock under
stock plans, net of taxes |
1,476,961 |
|
|
15 |
|
|
(216 |
) |
|
|
- |
|
|
|
- |
|
|
|
(201 |
) |
Net loss |
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(28,660 |
) |
|
|
(28,660 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2019 |
14,083,232 |
|
|
141 |
|
|
530,349 |
|
|
|
- |
|
|
|
(457,986 |
) |
|
|
72,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock and
common stock warrants, net of issue costs |
46,290,808 |
|
|
463 |
|
|
69,614 |
|
|
|
- |
|
|
|
- |
|
|
|
70,077 |
|
Issuance of common stock upon
exercise of warrants |
53,678,400 |
|
|
537 |
|
|
16,545 |
|
|
|
- |
|
|
|
- |
|
|
|
17,082 |
|
Issuance of common stock upon
conversion of 2020/21 Notes |
9,842,080 |
|
|
99 |
|
|
24,958 |
|
|
|
- |
|
|
|
- |
|
|
|
25,057 |
|
Issuance of common stock in
exchange for services rendered |
101,730 |
|
|
1 |
|
|
93 |
|
|
|
- |
|
|
|
- |
|
|
|
94 |
|
Non-cash stock-based
compensation |
- |
|
|
- |
|
|
2,101 |
|
|
|
- |
|
|
|
- |
|
|
|
2,101 |
|
Issuance of common stock under
stock plans, net of taxes |
4,142,061 |
|
|
41 |
|
|
(391 |
) |
|
|
- |
|
|
|
- |
|
|
|
(350 |
) |
Net loss |
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(40,186 |
) |
|
|
(40,186 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance December 31, 2020 |
128,138,311 |
|
|
1,282 |
|
|
643,269 |
|
|
|
- |
|
|
|
(498,172 |
) |
|
|
146,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
of issue costs |
68,170,579 |
|
|
682 |
|
|
456,765 |
|
|
|
- |
|
|
|
- |
|
|
|
457,447 |
|
Issuance of common stock upon
exercise of warrants |
1,866,758 |
|
|
18 |
|
|
1,103 |
|
|
|
- |
|
|
|
- |
|
|
|
1,121 |
|
Non-cash stock-based
compensation |
- |
|
|
- |
|
|
7,700 |
|
|
|
- |
|
|
|
- |
|
|
|
7,700 |
|
Issuance of common stock under
stock plans, net of taxes |
3,813,014 |
|
|
38 |
|
|
(5,613 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5,575 |
) |
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
|
(614 |
) |
|
|
- |
|
|
|
(614 |
) |
Net loss |
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(59,203 |
) |
|
|
(59,203 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2021 |
201,988,662 |
|
$ |
2,020 |
|
$ |
1,103,224 |
|
|
$ |
(614 |
) |
|
$ |
(557,375 |
) |
|
$ |
547,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gevo, Inc.Condensed Consolidated Cash
Flow Information(Unaudited, in
thousands)
|
|
Three Months Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Operating
Activities |
|
|
|
|
|
|
Net loss |
|
$ |
(16,513 |
) |
|
$ |
(18,054 |
) |
|
$ |
(6,815 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Loss from change in fair value of 2020/21 Notes embedded derivative
liability |
|
|
- |
|
|
|
8,578 |
|
|
|
- |
|
Loss on conversion of 2020/21 Notes to common stock |
|
|
- |
|
|
|
1,373 |
|
|
|
- |
|
Loss on disposal of assets |
|
|
- |
|
|
|
587 |
|
|
|
23 |
|
Stock-based compensation |
|
|
4,051 |
|
|
|
778 |
|
|
|
411 |
|
Depreciation and amortization |
|
|
1,556 |
|
|
|
1,150 |
|
|
|
1,807 |
|
Non-cash lease expense |
|
|
45 |
|
|
|
17 |
|
|
|
23 |
|
Non-cash interest expense |
|
|
(28 |
) |
|
|
155 |
|
|
|
257 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(271 |
) |
|
|
(157 |
) |
|
|
(757 |
) |
Inventories |
|
|
(409 |
) |
|
|
295 |
|
|
|
(239 |
) |
Prepaid expenses and other current assets, deposits and other
assets |
|
|
1,330 |
|
|
|
1,395 |
|
|
|
(1,801 |
) |
Accounts payable, accrued expenses and
long-term liabilities |
|
|
(4,604 |
) |
|
|
(874 |
) |
|
|
1,050 |
|
Net cash used in operating activities |
|
|
(14,843 |
) |
|
|
(4,757 |
) |
|
|
(6,041 |
) |
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
Acquisitions of property,
plant and equipment |
|
|
(28,707 |
) |
|
|
(4,149 |
) |
|
|
(210 |
) |
Acquisition of patents |
|
|
(170 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from sale marketable
securities |
|
|
45,242 |
|
|
|
- |
|
|
|
- |
|
Proceeds from sale of
property, plant and equipment |
|
|
- |
|
|
|
- |
|
|
|
13 |
|
Net cash used in investing activities |
|
|
16,365 |
|
|
|
(4,149 |
) |
|
|
(197 |
) |
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
Debt and equity offering
costs |
|
|
(36 |
) |
|
|
(200 |
) |
|
|
(54 |
) |
Proceeds from issuance of
common stock and common stock warrants |
|
|
1,824 |
|
|
|
6,429 |
|
|
|
1,942 |
|
Proceeds from the exercise of
warrants |
|
|
2 |
|
|
|
435 |
|
|
|
- |
|
Net settlement of common stock
under stock plans |
|
|
(1,904 |
) |
|
|
(19 |
) |
|
|
- |
|
Payment of loans payable -
other |
|
|
(56 |
) |
|
|
(20 |
) |
|
|
(292 |
) |
Payment of finance lease
liabilities |
|
|
(1,492 |
) |
|
|
(2 |
) |
|
|
- |
|
Net cash provided by financing activities |
|
|
(1,662 |
) |
|
|
6,623 |
|
|
|
1,596 |
|
|
|
|
|
|
|
|
Net (decrease) in cash and
cash equivalents and restricted cash |
|
|
(140 |
) |
|
|
(2,283 |
) |
|
|
(4,642 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash |
|
|
|
|
|
|
Beginning of period |
|
|
136,173 |
|
|
|
80,621 |
|
|
|
20,944 |
|
|
|
|
|
|
|
|
End of period |
|
$ |
136,033 |
|
|
$ |
78,338 |
|
|
$ |
16,302 |
|
|
|
|
|
|
|
|
Gevo, Inc.Condensed Consolidated Cash
Flow Information(Unaudited, in
thousands)
|
|
Year to Date December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Operating
Activities |
|
|
|
|
|
|
Net loss |
|
$ |
(59,203 |
) |
|
$ |
(40,186 |
) |
|
$ |
(28,660 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Loss (gain) from change in fair value of 2020/21 Notes and
2020 Notes embedded derivative liability |
|
|
- |
|
|
|
8,607 |
|
|
|
(394 |
) |
Loss on conversion of 2020/21 Notes to common stock |
|
|
- |
|
|
|
1,916 |
|
|
|
- |
|
Loss on disposal of assets |
|
|
5,137 |
|
|
|
625 |
|
|
|
4 |
|
(Gain) on forgiveness of SBA Loans |
|
|
(641 |
) |
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
|
9,874 |
|
|
|
2,125 |
|
|
|
1,349 |
|
Depreciation and amortization |
|
|
5,128 |
|
|
|
5,904 |
|
|
|
6,656 |
|
Non-cash lease expense |
|
|
52 |
|
|
|
62 |
|
|
|
48 |
|
Non-cash interest expense |
|
|
37 |
|
|
|
761 |
|
|
|
1,346 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(257 |
) |
|
|
608 |
|
|
|
(609 |
) |
Inventories |
|
|
(259 |
) |
|
|
945 |
|
|
|
(35 |
) |
Prepaid expenses and other current assets, deposits and other
assets |
|
|
(3,133 |
) |
|
|
782 |
|
|
|
(1,824 |
) |
Accounts payable, accrued expenses and
long-term liabilities |
|
|
(271 |
) |
|
|
(1,487 |
) |
|
|
1,280 |
|
Net cash used in operating activities |
|
|
(43,536 |
) |
|
|
(19,338 |
) |
|
|
(20,839 |
) |
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
Acquisitions of property,
plant and equipment |
|
|
(59,662 |
) |
|
|
(5,905 |
) |
|
|
(5,989 |
) |
Acquisition of patents |
|
|
(9,170 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from sale marketable
securities |
|
|
79,574 |
|
|
|
- |
|
|
|
- |
|
Purchase of marketable
securities |
|
|
(422,362 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from sale of
property, plant and equipment |
|
|
- |
|
|
|
- |
|
|
|
32 |
|
Investment in Juhl |
|
|
- |
|
|
|
- |
|
|
|
(1,500 |
) |
Net cash used in investing activities |
|
|
(411620 |
) |
|
|
(5,905 |
) |
|
|
(7,457 |
) |
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
Proceeds from issuance of 2021
Bonds |
|
|
68,995 |
|
|
|
- |
|
|
|
- |
|
Debt and equity offering
costs |
|
|
(34,955 |
) |
|
|
(6,370 |
) |
|
|
(232 |
) |
Proceeds from issuance of
common stock and common stock warrants |
|
|
489,373 |
|
|
|
76,414 |
|
|
|
11,589 |
|
Proceeds from the exercise of
warrants |
|
|
1,121 |
|
|
|
17,082 |
|
|
|
- |
|
Net settlement of common stock
under stock plans |
|
|
(7,041 |
) |
|
|
(350 |
) |
|
|
(201 |
) |
Payment of loans payable -
other |
|
|
(154 |
) |
|
|
(501 |
) |
|
|
(292 |
) |
Payment of finance lease
liabilities |
|
|
(4,488 |
) |
|
|
(2 |
) |
|
|
- |
|
Proceeds from SBA Loans |
|
|
- |
|
|
|
1,006 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
512,851 |
|
|
|
87,279 |
|
|
|
10,864 |
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents and restricted cash |
|
|
57,695 |
|
|
|
62,036 |
|
|
|
(17,432 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash |
|
|
|
|
|
|
Beginning of period |
|
|
78,338 |
|
|
|
16,302 |
|
|
|
33,734 |
|
|
|
|
|
|
|
|
End of period |
|
$ |
136,033 |
|
|
$ |
78,338 |
|
|
$ |
16,302 |
|
|
|
|
|
|
|
|
Gevo, Inc.Reconciliation of GAAP to
Non-GAAP Financial Information(Unaudited, in
thousands, except share and per share amounts)
|
Three Months Ended December 31, |
Non-GAAP Cash EBITDA: |
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Loss from operations |
$ |
(16,478 |
) |
|
$ |
(7,587 |
) |
|
$ |
(6,250 |
) |
Stock-based compensation |
|
4,051 |
|
|
|
778 |
|
|
|
411 |
|
Depreciation and amortization |
|
1,556 |
|
|
|
1,150 |
|
|
|
1,807 |
|
Non-GAAP cash EBITDA |
$ |
(10,871 |
) |
|
$ |
(5,659 |
) |
|
$ |
(4,032 |
) |
|
|
|
|
|
|
Non-GAAP Adjusted Net
Loss: |
|
|
|
|
|
Net loss |
$ |
(16,513 |
) |
|
$ |
(18,054 |
) |
|
$ |
(6,819 |
) |
Adjustments: |
|
|
|
|
|
(Loss) on conversion of 2020/21 Notes to common stock |
|
- |
|
|
|
(1,373 |
) |
|
|
- |
|
(Loss) from change in fair value of 2020/21 Notes embedded
derivative liability |
|
- |
|
|
|
(8,578 |
) |
|
|
- |
|
Total adjustments |
|
- |
|
|
|
(9,951 |
) |
|
|
- |
|
Non-GAAP Net Income (Loss) |
$ |
(16,513 |
) |
|
$ |
(8,103 |
) |
|
$ |
(6,819 |
) |
Non-GAAP adjusted net loss per
share - basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.50 |
) |
Weighted-average number of common
shares outstanding - basic and diluted |
|
201,892,596 |
|
|
|
120,017,120 |
|
|
|
13,659,944 |
|
|
|
|
|
|
|
Non-GAAP Cash
EBITDA: |
Years Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Loss from operations |
$ |
(60,090 |
) |
|
$ |
(26,961 |
) |
|
$ |
(26,355 |
) |
Stock-based compensation |
|
9,874 |
|
|
|
2,125 |
|
|
|
1,349 |
|
Depreciation and amortization |
|
5,128 |
|
|
|
5,904 |
|
|
|
6,656 |
|
Non-GAAP cash EBITDA |
$ |
(45,088 |
) |
|
$ |
(18,932 |
) |
|
$ |
(18,350 |
) |
|
|
|
|
|
|
Non-GAAP Adjusted Net
Loss: |
|
|
|
|
|
Net loss |
|
|
|
|
|
Net loss |
$ |
(59,203 |
) |
|
$ |
(40,186 |
) |
|
$ |
(28,660 |
) |
Adjustments: |
|
|
|
|
|
(Loss) on conversion of 2020/21 Notes to common stock |
|
- |
|
|
|
(1,916 |
) |
|
|
- |
|
(Loss) from change in fair value of 2020/21 Notes and 2020 Notes
embedded derivative liability |
|
- |
|
|
|
(8,607 |
) |
|
|
394 |
|
Total adjustments |
|
- |
|
|
|
(10,523 |
) |
|
|
394 |
|
Non-GAAP Net Income (Loss) |
$ |
(59,203 |
) |
|
$ |
(29,663 |
) |
|
$ |
(29,054 |
) |
Non-GAAP adjusted net loss per
share - basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.52 |
) |
|
$ |
(2.39 |
) |
Weighted-average number of common
shares outstanding - basic and diluted |
|
195,794,606 |
|
|
|
56,881,586 |
|
|
|
12,177,906 |
|
|
|
|
|
|
|
Investor and Media ContactHeather Manuel+1
720-418-0085IR@gevo.com
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