Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the
fourth quarter of 2019 and recent corporate highlights.
Recent Corporate Highlights
- Gevo now has approximately $500 million of take-or-pay off-take
agreements in place for a combination of renewable jet fuel and
renewable isooctane for gasoline. This represents the revenue
forecasted of 17 million gallons per year of off-take across the
life of the contracts, with delivery expected to begin in 2023. The
full revenue potential is subject to the completion of an expansion
to Gevo’s production facility in Luverne, Minnesota (the “Luverne
Facility”), which is expected to be constructed over the next
several years.
- On December 17, 2019, Gevo announced that Delta Air Lines, Inc.
agreed to purchase 10 million gallons per year of advanced
renewable biofuels from Gevo, subject to the completion of the
expansion of the Luverne Facility.
- On December 2, 2019, Gevo announced that Avfuel Corporation had
begun delivery of Gevo’s renewable jet fuel to Bombardier for new
customer aircraft deliveries in Canada, and on January 31, 2020,
Gevo announced that it supplied renewable jet fuel to Avfuel for
delivery to Banyan Air Service in Fort Lauderdale, Florida.
- On November 14, 2019, Gevo announced that it signed a Fuel
Sales Agreement with Scandinavian Airline System to produce and
supply renewable jet fuel for use and distribution in low carbon
fuel regions of the United States from the planned expansion of the
Luverne Facility.
- On March 12, 2020, Gevo announced that it held a ribbon cutting
ceremony to celebrate the completed construction of two wind
turbines that will supply up to 5.0 MW of fully renewable
electricity to the Luverne Facility, which is expected to enable it
to utilize the emissions-free energy towards a lower carbon
intensity score under the Low Carbon Fuel Standard in California
(“LCFS”).
- On February 6, 2020, Gevo announced that it received
certification from the Roundtable on Sustainable Biomaterials for
its sourcing of sustainable corn at the Luverne Facility and its
production of intermediate feedstock isobutanol, which is in
addition to Gevo’s certification from International Sustainability
and Carbon Certification under the ISCC PLUS scheme for Food, Fuel,
Industrial Applications, Energy, and Biofuels outside of
Europe.
- On January 15, 2020, Gevo announced that it contracted with
three dairies to provide manure that Gevo plans to convert into
pipeline quality biogas (“Renewable Natural Gas”). Combined, these
three dairies expect to generate approximately 350,000 MMBTU biogas
per year for sale to off-takers or use by Gevo’s affiliate,
Agri-Energy, LLC, at the Luverne Facility. Gevo also announced that
it has a letter of commitment from a lender in the amount of $20
million for financing the Renewable Natural Gas project at one of
the three dairies. In addition, Gevo also has a verbal commitment
from the same lender to finance the Renewable Natural Gas projects
at the other two dairies.
- On January 13, 2020, Gevo entered into an Exchange and Purchase
Agreement with its senior lender pursuant to which Gevo exchanged
all of its outstanding senior notes for approximately $14.4 million
of Gevo’s newly created 12.0% Convertible Senior Secured Notes due
2020/2021, which are convertible into Gevo’s common stock.
2019 Fourth Quarter Financial Highlights
- Ended the quarter with cash and cash equivalents of $16.3
million compared to $33.7 million as of the end of Q4 of 2018
- Revenue of $6.9 million for the quarter compared to $6.6
million in Q4 of 2018
- Hydrocarbon revenue increased to $1.0 million for the quarter
compared to $0.1 million in Q4 of 2018
- Loss from operations of ($6.2) million for the quarter compared
to ($6.7) million in Q4 of 2018
- Non-GAAP cash EBITDA loss1 of ($4.0) million for the quarter
compared to ($4.7) million in Q4 of 2018
- Net loss per share of ($0.50) for the quarter compared to
($0.83) in Q4 of 2018
- Non-GAAP adjusted net loss per share2 of ($0.50) for the
quarter compared to ($0.87) in Q4 of 2018
“The agreements with Delta Air Lines and our other customers
demonstrate that the demand for our renewable hydrocarbon products
is real and growing. We expect to secure even more contracts for
hydrocarbons in the near future. The world is changing, and
companies appear to be waking up to the reality that they will be
held accountable for greenhouse gas emissions. Gevo technologies
de-fossilize liquid transportation fuels, directly addressing the
greenhouse gas problem. We need to focus on financing the
build-outs and growing the business. It’s a new game, and it looks
like the timing is right for Gevo,” said Patrick R. Gruber, Chief
Executive Officer of Gevo.
Commercialization and Plant Capacity Financing
Strategy
The growing demand for Gevo’s hydrocarbon products has caused it
to modify its commercialization plans. Gevo plans to step into the
role of developer, licensor and plant operator rather than a
majority owner. As Gevo contracts additional capacity, Gevo
believes that the assets and liabilities of the production
facilities likely will not be a part of Gevo’s balance sheet. With
the public’s increasing concern over greenhouse gas emissions and
their impact on climate change, combined with the projected
attractive returns of the take-or-pay off-take contracts currently
in place based on the pricing in those contracts, Gevo expects to
be able to attract both equity and debt financing partners as a
result. Gevo plans to hire a strategic advisor in the near future
to assist in securing financing for the large scale build-outs that
are being planned.
Gevo is focused on selling renewable hydrocarbons and may in the
future move away from the production and sale of ethanol. Gevo’s
analysis shows that using the assets of the Luverne Facility to
make isobutanol and hydrocarbons is expected to be much more
valuable than continuing to produce ethanol, so some of the assets
dedicated to ethanol are expected to be repurposed to enable a
larger build-out of hydrocarbon production capacity at the Luverne
Facility. Between now and the completion of the expanded Luverne
Facility, Gevo expects that its access to renewable wind
electricity and Renewable Natural Gas will help to lower the carbon
index of ethanol and thereby improve the profit margin of the
Luverne Facility.
Outlook for 2020
In 2020, Gevo will focus on securing long-term financing to
enable it to construct one or more expanded production facilities
to produce its renewable, low-carbon hydrocarbon products for
customers such as Delta Air Lines. The “take or pay” nature of the
agreements with customers such as Delta Air Lines and HCS Group
GmbH should make long-term financing easier to achieve than in the
past.
The focus for operational, sales and market development
activities during 2020 is expected to be the following:
- Secure the debt and equity required to build out at least 17
MGPY and potentially up to 70 MGPY of hydrocarbon capacity. The
financing for this expansion could take until early 2021 or later
to complete.
- Enter into additional binding, financeable off-take contracts
for renewable, low-carbon hydrocarbon products (renewable jet fuel
and isooctane).
- If Gevo enters into additional off-take agreements beyond the
current 17 MGPY, Gevo plans to secure an additional production
facility.
- Begin using renewable electricity at the Luverne Facility from
renewable electricity from wind and Renewable Natural Gas, and
along with other initiatives, plan to lower the carbon score for
Gevo’s fuel products under the LCFS. Gevo would expect to have
certain of its fuel products produced at the Luverne Facility
approved under LCFS during the 4th quarter of 2020.
- Gevo expects to finance its Renewable Natural Gas project
(350,000 MMBTU across three dairies) with debt and equity sourced
from third parties. The economic benefits of the Renewable Natural
Gas project would be expected in 2021 as the Renewable Natural Gas
comes online, by lowering the carbon score of the Luverne Facility
and improving profit margins for the site.
- Gevo expects to refinance the Whitebox convertible senior
secured notes due 2020/2021 during 2020 as it works to complete the
financing of its expansion of the Luverne Facility.
- Continue to produce renewable jet fuel and renewable isooctane
at the production facility at South Hampton Resources, Inc. in
Silsbee, Texas (the “South Hampton Facility”) using isobutanol to
be produced at the Luverne Facility during 2020.
- Gevo expects to use third party financing for, and then begin
construction of, a 1 MGPY renewable isooctane and renewable jet
fuel plant to be located at the Luverne Facility. The 1 MGPY
hydrocarbon plant would increase Gevo’s hydrocarbon production
capabilities by a factor of 10. As part of this site improvement
project, Gevo plans to upgrade its isobutanol section of the
Luverne Facility so that isobutanol can be run at a consistent rate
to supply the 1 MGPY hydrocarbon plant. The 1 MGPY hydrocarbon
plant is expected to be financed and constructed in advance of the
larger expansion to the Luverne Facility discussed above.
- Depending on the market price for ethanol, produce
approximately 15 million gallons of ethanol. If the selling price
for ethanol is too low, Gevo could limit or cease production of
ethanol to conserve cash. Gevo plans on producing ethanol only when
a positive contribution margin is achievable.
- Begin selling higher-margin, premium animal feed, protein
products and corn oil, which is expected to improve the
profitability of the Luverne Facility. The total amount of dry
animal feed product expected to be sold in 2020 is approximately
30,000 metric tons.
Fourth Quarter 2019 Financial Results
Revenue for the three months ended December 31, 2019 was $6.9
million compared with $6.6 million in the same period in 2018.
During the three months ended December 31, 2019, hydrocarbon
revenue was $1.0 million compared with $0.1 million in the same
period in 2018. Hydrocarbon sales increased because of higher
production volumes at the South Hampton Facility. During the three
months ended December 31, 2018, Gevo reduced production at the
South Hampton Facility to upgrade the facility and double the
production capacity. Gevo’s hydrocarbon revenue is comprised of
sales of alcohol-to-jet fuel and isooctane.
During the three months ended December 31, 2019, revenue derived
at the Luverne Facility from ethanol sales and related products was
$5.9 million, a decrease of approximately $0.6 million from the
same period in 2018. As a result of an unfavorable commodity
environment during the three months ended December 31, 2019
compared with the same period in 2018, Gevo reduced its production
of ethanol and distiller grains which resulted in lower sales for
the period.
Cost of goods sold was $9.4 million for the three months ended
December 31, 2019, compared with $9.7 million in the same period in
2018, primarily as a result of decreased production of ethanol
during the 2019 quarter. Production was decreased due to an
unfavorable commodity environment, largely the result of greater
corn costs as compared to national markets than the region has
historically experienced. Cost of goods sold included approximately
$7.8 million associated with the production of ethanol, isobutanol
and related products and approximately $1.6 million in depreciation
expense for the three months ended December 31, 2019.
Gross loss was ($2.5) million for the three months ended
December 31, 2019 versus a ($3.0) million gross loss in the same
period in 2018.
Research and development expense decreased by $0.9 million
during the three months ended December 31, 2019 compared with the
same period in 2018, due primarily to a decrease in costs
associated with the South Hampton Facility partially offset by an
increase in personnel and consultant expenses.
Selling, general and administrative expense increased by $1.0
million during the three months ended December 31, 2019 compared
with the same period in 2018, due primarily to an increase in
personnel, legal, consulting and investor relations costs,
partially offset by a decrease in professional fees.
Loss from operations in the three months ended December 31, 2019
was ($6.2) million compared with a ($6.7) million loss from
operations in the same period in 2018.
Non-GAAP cash EBITDA loss3 in the three months ended December
31, 2019 was ($4.0) million compared with a ($4.7) million non-GAAP
cash EBITDA loss in the same period in 2018.
Interest expense in the three months ended December 31, 2019 was
$0.6 million, a decrease of $0.1 million as compared to the same
period in 2018, primarily due to a decline in outstanding debt as a
result of the conversion of an aggregate of $3.2 million of Gevo’s
convertible notes during the year ended December 31, 2018.
Gevo incurred a net loss for the three months ended December 31,
2019 of ($6.8) million compared with a net loss of ($7.1) million
during the same period in 2018. Non-GAAP adjusted net loss4 for the
three months ended December 31, 2019 was ($6.8) million compared
with a non-GAAP adjusted net loss of ($7.5) million during the same
period in 2018.
Cash at December 31, 2019 was $16.3 million, and the total
principal face value of outstanding debt was $14.1 million.
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, Carolyn M. Romero, Vice
President—Controller, and Geoffrey T. Williams, Jr., General
Counsel. They will review Gevo’s financial results and provide an
update on recent corporate highlights.
To participate in the conference call, please dial 1 (888)
771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.)
and reference the access code 49396999#.
A replay of the call and webcast will be available two hours
after the conference call ends on March 17, 2020. To access the
replay, please dial 1 (888) 843-7419 (inside the US) or 1 (630)
652-3042 (outside the US) and reference the access code 49396999#.
The archived webcast will be available in the Investor Relations
section of Gevo’s website at www.gevo.com.
About Gevo
Gevo is commercializing the next generation of jet fuel,
gasoline and diesel fuel with the potential to achieve zero carbon
emissions and address the market need of reducing greenhouse gas
emissions with sustainable alternatives. Gevo uses low-carbon
renewable resource-based carbohydrates as raw materials (primarily
from non-food corn, but also sugar cane, molasses or other
cellulosic sugars) and is in an advanced state of developing
renewable electricity and renewable natural gas for use in
production processes. As a result, Gevo is able to produce
low-carbon fuels with substantially reduced carbon intensity (as
measured by 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 environmental problems of fossil-based carbon 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 that enables the use of a variety of
low-carbon sustainable feedstocks to produce price-competitive low
carbon products such as alcohol-to-jet fuel, gasoline components
like isooctane and isobutanol and diesel fuel, yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business. Learn more at
www.gevo.com.
Here is a link to Gevo’s latest
video:https://vimeo.com/396232536
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 ability to realize revenue and to perform under
its existing off-take agreements and to enter into additional
off-take agreements, Gevo’s ability to produce and deliver the 17
MGPY of renewable jet fuel and renewable isooctane under contract
and to realize the approximately $500 million in revenue from such
contracts on the timing anticipated or at all; Gevo’s ability to
successful finance, construct and complete its expansion projects,
including the expansion to the Luverne Facility in connection with
the 17 MGPY of renewable jet fuel and renewable isooctane under
contract, on the timing anticipated or at all; Gevo’s ability to
finance and complete the Renewable Natural Gas project with the
anticipated production levels and on the timing anticipated or at
all; Gevo’s success in becoming profitable; Gevo’s plans to become
project developer and operator and to successfully attract and
maintain partners; Gevo’s success in qualifying for and maintaining
eligibility for the LCFS; Gevo’s ability to refinance its
outstanding convertible senior secured notes due 2020/2021; Gevo’s
plans to produce renewable jet fuel and isooctane at the South
Hampton Facility; Gevo’s plans to use renewable electricity at the
Luverne Facility and to “de-carbonize” the Luverne Facility; Gevo’s
plans to produce ethanol and to begin selling premium animal feed,
protein products and corn oil 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, 2019 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 excludes
depreciation 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 U.S. 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 Cash EBITDA loss is a non-GAAP measure calculated by adding
back depreciation 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.2 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.3
Cash EBITDA loss is a non-GAAP measure calculated by adding back
depreciation 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.4 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 Sheet Information(Unaudited, in thousands,
except share and per share amounts)
|
|
December 31, |
|
December 31, |
|
|
2019 |
|
2018 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,302 |
|
|
$ |
33,734 |
|
Accounts receivable |
|
|
1,135 |
|
|
|
526 |
|
Inventories |
|
|
3,201 |
|
|
|
3,166 |
|
Prepaid expenses and other
current assets |
|
|
3,590 |
|
|
|
1,284 |
|
Total current assets |
|
|
24,228 |
|
|
|
38,710 |
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
|
66,696 |
|
|
|
67,462 |
|
Investment in Juhl |
|
|
1,500 |
|
|
|
- |
|
Deposits and other assets |
|
|
935 |
|
|
|
863 |
|
Total assets |
|
$ |
93,359 |
|
|
$ |
107,035 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
5,678 |
|
|
$ |
4,896 |
|
2020 Notes (current), net |
|
|
13,900 |
|
|
|
- |
|
2020 Notes embedded derivative
liability |
|
|
- |
|
|
|
394 |
|
Notes payable – other
(current) |
|
|
516 |
|
|
|
- |
|
Total current liabilities |
|
|
20,094 |
|
|
|
5,290 |
|
|
|
|
|
|
|
|
2020 Notes (long-term),
net |
|
|
- |
|
|
|
12,554 |
|
Notes payable – other
(long-term) |
|
|
233 |
|
|
|
- |
|
Other long-term
liabilities |
|
|
528 |
|
|
|
404 |
|
Total liabilities |
|
|
20,855 |
|
|
|
18,248 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
Common Stock, $0.01 par value
per share; 250,000,000 authorized, 14,083,232 and 8,640,583 shares
issued and outstanding at December 31, 2019 and 2018,
respectively. |
|
|
141 |
|
|
|
86 |
|
Additional paid-in
capital |
|
|
530,349 |
|
|
|
518,027 |
|
Accumulated deficit |
|
|
(457,986 |
) |
|
|
(429,326 |
) |
Total stockholders'
equity |
|
|
72,504 |
|
|
|
88,787 |
|
Total liabilities and
stockholders' equity |
|
$ |
93,359 |
|
|
$ |
107,035 |
|
Gevo, Inc.Condensed Consolidated
Statements of Operations Information(Unaudited, in
thousands, except share and per share amounts)
|
|
Three Months EndedDecember
31, |
Year EndedDecember 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol sales and related products, net |
|
$ |
5,931 |
|
|
$ |
6,539 |
|
|
$ |
22,115 |
|
|
$ |
31,641 |
|
Hydrocarbon revenue |
|
|
957 |
|
|
|
86 |
|
|
|
2,338 |
|
|
|
1,197 |
|
Grant and other revenue |
|
|
- |
|
|
|
- |
|
|
|
34 |
|
|
|
25 |
|
Total revenues |
|
|
6,888 |
|
|
|
6,625 |
|
|
|
24,487 |
|
|
|
32,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
9,427 |
|
|
|
9,664 |
|
|
|
36,733 |
|
|
|
41,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loss |
|
|
(2,539 |
) |
|
|
(3,039 |
) |
|
|
(12,246 |
) |
|
|
(8,705 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expense |
|
|
308 |
|
|
|
1,251 |
|
|
|
4,020 |
|
|
|
5,374 |
|
Selling, general and
administrative expense |
|
|
3,380 |
|
|
|
2,425 |
|
|
|
10,085 |
|
|
|
8,122 |
|
Total operating expenses |
|
|
3,688 |
|
|
|
3,676 |
|
|
|
14,105 |
|
|
|
13,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(6,227 |
) |
|
|
(6,715 |
) |
|
|
(26,351 |
) |
|
|
(22,201 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(605 |
) |
|
|
(741 |
) |
|
|
(2,732 |
) |
|
|
(3,237 |
) |
Loss on exchange or conversion
of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,202 |
) |
Gain from change in fair value
of 2020 Notes embedded derivative |
|
- |
|
|
|
297 |
|
|
|
394 |
|
|
|
2,637 |
|
Gain (loss) from change in
fair value of derivative warrant liability |
|
13 |
|
|
|
59 |
|
|
|
14 |
|
|
|
(2,976 |
) |
Other income |
|
|
4 |
|
|
|
(2 |
) |
|
|
15 |
|
|
|
3 |
|
Total other (expense)
income |
|
|
(588 |
) |
|
|
(387 |
) |
|
|
(2,309 |
) |
|
|
(5,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,815 |
) |
|
$ |
(7,102 |
) |
|
$ |
(28,660 |
) |
|
$ |
(27,976 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share - basic and
diluted |
|
$ |
(0.50 |
) |
|
$ |
(0.83 |
) |
|
$ |
(2.35 |
) |
|
$ |
(5.74 |
) |
Weighted-average number of
common shares outstanding - basic and diluted |
|
13,659,944 |
|
|
|
8,578,797 |
|
|
|
12,177,906 |
|
|
|
4,876,897 |
|
Gevo, Inc.Condensed Consolidated
Statements of Stockholders’ Equity
Information(Unaudited, in thousands, except share
amounts)
|
|
Common Stock |
|
Paid-In |
|
Accumulated |
|
Stockholders' |
|
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2019 |
|
13,369,001 |
|
|
$ |
133 |
|
|
$ |
527,958 |
|
|
$ |
(451,171 |
) |
|
$ |
76,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
of issue costs |
|
720,747 |
|
|
|
8 |
|
|
|
1,880 |
|
|
|
- |
|
|
|
1,888 |
|
Non-cash stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
511 |
|
|
|
- |
|
|
|
511 |
|
Net settlement of stock
options |
|
(6,516 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,815 |
) |
|
|
(6,815 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2019 |
|
14,083,232 |
|
|
$ |
141 |
|
|
$ |
530,349 |
|
|
$ |
(457,986 |
) |
|
$ |
72,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30,
2018 |
|
8,095,120 |
|
|
$ |
81 |
|
|
$ |
515,367 |
|
|
$ |
(422,224 |
) |
|
$ |
93,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
of issue costs & warrants |
|
545,313 |
|
|
|
5 |
|
|
|
2,415 |
|
|
|
- |
|
|
|
2,420 |
|
Non-cash stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
243 |
|
|
|
- |
|
|
|
243 |
|
Issuance of common stock upon
exercise of warrants |
|
150 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
Issuance of common stock upon
exchange of debt |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
Net loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7,102 |
) |
|
|
(7,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2018 |
|
8,640,583 |
|
|
$ |
86 |
|
|
$ |
518,027 |
|
|
$ |
(429,326 |
) |
|
$ |
88,787 |
|
Gevo, Inc.Condensed Consolidated
Statements of Cash Flows Information(Unaudited, in
thousands)
|
|
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,815 |
) |
|
$ |
(7,102 |
) |
|
$ |
(28,660 |
) |
|
$ |
(27,976 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
(Gain) loss from change in fair value of derivative warrant
liability |
|
|
(13 |
) |
|
|
(59 |
) |
|
|
(14 |
) |
|
|
2,976 |
|
(Gain) from change in fair value of 2020 Notes embedded
derivative |
|
|
- |
|
|
|
(297 |
) |
|
|
(394 |
) |
|
|
(2,637 |
) |
Loss on sale of property, plant and equipment |
|
|
23 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Loss from the exchange of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,202 |
|
Stock-based compensation |
|
|
411 |
|
|
|
363 |
|
|
|
1,349 |
|
|
|
683 |
|
Depreciation and amortization |
|
|
1,807 |
|
|
|
1,617 |
|
|
|
6,656 |
|
|
|
6,520 |
|
Non-cash lease expense |
|
|
48 |
|
|
|
- |
|
|
|
48 |
|
|
|
- |
|
Non-cash interest expense |
|
|
257 |
|
|
|
399 |
|
|
|
1,346 |
|
|
|
1,706 |
|
Other non-cash expenses |
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
6 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(757 |
) |
|
|
111 |
|
|
|
(609 |
) |
|
|
528 |
|
Inventories |
|
|
(239 |
) |
|
|
135 |
|
|
|
(35 |
) |
|
|
1,196 |
|
Prepaid expenses and other current assets, deposits and other
assets |
|
|
(1,801 |
) |
|
|
(335 |
) |
|
|
(1,824 |
) |
|
|
(630 |
) |
Accounts payable, accrued expenses and long-term liabilities |
|
|
1,039 |
|
|
|
(529 |
) |
|
|
1,294 |
|
|
|
(425 |
) |
Net cash used in operating activities |
|
|
(6,041 |
) |
|
|
(5,697 |
) |
|
|
(20,839 |
) |
|
|
(15,851 |
) |
|
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
|
Acquisitions of property,
plant and equipment |
|
|
(210 |
) |
|
|
(1,300 |
) |
|
|
(5,989 |
) |
|
|
(2,233 |
) |
Proceeds from sale of
property, plant and equipment |
|
|
13 |
|
|
|
- |
|
|
|
32 |
|
|
|
- |
|
Investment in Juhl |
|
|
- |
|
|
|
- |
|
|
|
(1,500 |
) |
|
|
- |
|
Net cash used in investing activities |
|
|
(197 |
) |
|
|
(1,300 |
) |
|
|
(7,457 |
) |
|
|
(2,233 |
) |
|
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
|
Payments of long-term
debt |
|
|
(292 |
) |
|
|
- |
|
|
|
(292 |
) |
|
|
- |
|
Proceeds from issuance of
common stock, net of commissions |
|
|
1,942 |
|
|
|
2,442 |
|
|
|
11,589 |
|
|
|
39,394 |
|
Proceeds from the exercise of
warrants |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,263 |
|
Net settlement of common stock
under stock plans |
|
|
- |
|
|
|
- |
|
|
|
(201 |
) |
|
|
- |
|
Debt and equity offering
costs |
|
|
(54 |
) |
|
|
(27 |
) |
|
|
(232 |
) |
|
|
(392 |
) |
Net cash provided by financing activities |
|
|
1,596 |
|
|
|
2,415 |
|
|
|
10,864 |
|
|
|
40,265 |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents |
|
|
(4,642 |
) |
|
|
(4,582 |
) |
|
|
(17,432 |
) |
|
|
22,181 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
20,944 |
|
|
|
38,316 |
|
|
|
33,734 |
|
|
|
11,553 |
|
End of period |
|
$ |
16,302 |
|
|
$ |
33,734 |
|
|
$ |
16,302 |
|
|
$ |
33,734 |
|
Gevo, Inc.Reconciliation of GAAP to
Non-GAAP Financial Information(Unaudited, in
thousands, except share and per share amounts)
|
|
Three Months EndedDecember
31, |
Non-GAAP Cash EBITDA: |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Loss from operations |
|
$ |
(6,227 |
) |
|
$ |
(6,715 |
) |
Depreciation and
amortization |
|
|
1,807 |
|
|
|
1,617 |
|
Non-cash stock-based
compensation |
|
|
411 |
|
|
|
363 |
|
Non-GAAP cash EBITDA |
|
$ |
(4,009 |
) |
|
$ |
(4,735 |
) |
|
|
|
|
|
Non-GAAP Adjusted Net
Loss: |
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(6,815 |
) |
|
$ |
(7,102 |
) |
Adjustments: |
|
|
|
|
Gain from change in fair value of derivative warrant liability |
|
|
13 |
|
|
|
59 |
|
(Loss) from change in fair value of the embedded derivative to the
2020 Notes |
|
|
- |
|
|
|
297 |
|
Total adjustments |
|
|
13 |
|
|
|
356 |
|
Non-GAAP Net Loss |
|
$ |
(6,828 |
) |
|
$ |
(7,458 |
) |
Weighted-average number of
common shares outstanding - basic and diluted |
|
|
13,659,944 |
|
|
|
8,578,797 |
|
Non-GAAP Adjusted Net loss per
share - basic and diluted |
|
$ |
(0.50 |
) |
|
$ |
(0.87 |
) |
Gevo, Inc.Reconciliation of GAAP to
Non-GAAP Financial Information(Unaudited, in
thousands, except share and per share amounts)
|
|
Year Ended December 31, |
Non-GAAP Cash EBITDA: |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Loss from operations |
|
$ |
(26,351 |
) |
|
$ |
(22,201 |
) |
Depreciation and
amortization |
|
|
6,656 |
|
|
|
6,520 |
|
Non-cash stock-based
compensation |
|
|
1,349 |
|
|
|
683 |
|
Non-GAAP cash EBITDA |
|
$ |
(18,346 |
) |
|
$ |
(14,998 |
) |
|
|
|
|
|
Non-GAAP Adjusted Net
Loss: |
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(28,660 |
) |
|
$ |
(27,976 |
) |
Adjustments: |
|
|
|
|
Loss on exchange or conversion of debt |
|
|
- |
|
|
|
(2,202 |
) |
Gain (loss) from change in fair value of derivative warrant
liability |
|
|
14 |
|
|
|
(2,976 |
) |
(Loss) from change in fair value of the embedded derivative to the
2020 Notes |
|
|
394 |
|
|
|
2,637 |
|
Total adjustments |
|
|
408 |
|
|
|
(2,541 |
) |
Non-GAAP Net Loss |
|
$ |
(29,068 |
) |
|
$ |
(25,435 |
) |
Weighted-average number of
common shares outstanding - basic and diluted |
|
|
12,177,906 |
|
|
|
4,876,897 |
|
Non-GAAP Adjusted Net loss per
share - basic and diluted |
|
$ |
(2.39 |
) |
|
$ |
(5.22 |
) |
Investor and Media ContactShawn M.
SeversonIntegra Investor Relations+1
415-226-7747Info@integra-ir.com
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