Recent Corporate Highlights
- On
July 18, 2022 , Gevo signed a financeable fuel sales agreement withAmerican Airlines, Inc. to supply 100 million gallons per year of SAF for five years from Gevo’s future commercial operations. The table below summarizes the supply agreements executed sinceApril 1, 2022 :
Recently Announced Sales Agreements | ||||
Date Signed | Customer | Product | Volume (MGPY) | Term (Years) |
Japan Airlines | SAF | 5.3 | 5 | |
Finnair | SAF | 7.0 | 5 | |
SAF | 6.3 | 5 | ||
SAF | 100.0 | 5 | ||
SAF | 37.0 | 5 |
- Gevo now has more than 350 million gallons per year (“MGPY”) of financeable SAF and hydrocarbon fuel supply agreements, which based on current market projections and operating assumptions, represent approximately
$2.1 billion in expected revenue per year, inclusive of the value of environmental benefits. These types of contracts are expected to assist Gevo in obtaining project debt financing. - On
June 5th, 2022 , Gevo executed a registered direct offering of 33.3 million shares to certain institutional investors. That offering closed onJune 8th, 2022 , providing net proceeds of$139.0 million . As part of the offering, Gevo issued 33.3 million Series 2022-A Warrants with an exercise price of$4.37 per share. - The Company's Net-Zero 1 project is on schedule and the Company continues to work towards completion of the various milestones for 2022, including, among others, executing certain commercial development, build, own and operate agreements, and selecting an EPC contractor for the project.
- On
July 25, 2022 , the Company completed the purchase of approximately 245 acres nearLake Preston, South Dakota for its Net-Zero 1 production facility. - Gevo's renewable natural gas ("RNG") project in
Northwest Iowa is now generating biogas from all three dairies and the RNG produced is expected to ramp toward nameplate capacity of 355,000 MMBtu throughout the second half of 2022.
2022 Second Quarter Financial Highlights
- Ended the quarter with cash, cash equivalents, restricted cash and marketable securities of
$546.8 million compared to$475 .8 million as of the end of Q4 2021 - Revenue of
$0.1 million for the quarter compared to$0.3 million in Q2 2021 - Loss from operations of
$(16.1) million for the quarter compared to$(19.1) million in Q2 2021 - Non-GAAP cash EBITDA loss1 of
$(11.0) million for the quarter compared to$(17.2) million in Q2 2021 - GAAP net loss per share and non-GAAP adjusted net loss per share2 of
$(0.06) for the quarter compared to$(0.09) in Q2 2021
Management Comment
Commenting on the second quarter of 2022 and recent corporate events, Dr.
Second Quarter 2022 Financial Results
During the three months ended
Cost of goods increased
Research and development expense increased
Selling, general and administrative expense increased
Preliminary stage project costs are related to our Verity and future Net-Zero Projects and consist primarily of employee expenses and consulting costs. Preliminary stage project costs decreased
Other operations expense increased
Depreciation and amortization expense increased
We incurred no gain (loss) from the change in the fair value of the derivative warrant liability in the three months ended
There were no significant changes in interest expense during the three months ended
Interest and dividend income increased
Other income (expense) increased
Non-GAAP cash EBITDA loss3 in the three months ended
During the six months ended
Webcast and Conference Call Information
Hosting today’s conference call at
To participate in the live call, please register through the following event weblink: https://register.vevent.com/register/BI82c9f363e71c46baa4a8d5e9764fcdbd. After registering, participants will be provided with a dial-in number and pin.
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A webcast replay will be available two hours after the conference call ends on
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 it possesses the technology and know-how to convert various carbohydrate feedstocks through a fermentation process into alcohols and then transform the alcohols into renewable fuels and materials, through a combination of its own technology, know-how, engineering, and licensing of technology and engineering from
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, whether our fuel sales agreements are financeable, the timing of our Net-Zero 1 project, our financial condition, our results of operation and liquidity, our business development activities, our Net-Zero Projects, our
Non-GAAP Financial Information
This press release contains financial measures that do not comply with
1 Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock-based 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 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.
Condensed Consolidated Balance Sheets Information
(Unaudited, in thousands, except share and per share amounts)
As of | As of | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 172,984 | $ | 40,833 | |||
Marketable securities (current) | 297,631 | 275,340 | |||||
Restricted cash (current) | 5,894 | 25,032 | |||||
Accounts receivable, net | 188 | 978 | |||||
Inventories | 2,649 | 2,751 | |||||
Prepaid expenses and other current assets | 5,275 | 3,607 | |||||
Total current assets | 484,621 | 348,541 | |||||
Property, plant and equipment, net | 176,054 | 139,141 | |||||
Long-term marketable securities | — | 64,396 | |||||
Long-term restricted cash | 70,256 | 70,168 | |||||
Operating right-of-use assets | 2,098 | 2,414 | |||||
Finance right-of-use assets | 27,477 | 27,297 | |||||
Intangible assets, net | 8,364 | 8,938 | |||||
Deposits and other assets | 5,741 | 5,581 | |||||
Total assets | $ | 774,611 | $ | 666,476 | |||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 18,750 | $ | 28,288 | |||
Operating lease liabilities (current) | 423 | 772 | |||||
Finance lease liabilities (current) | 6,293 | 3,413 | |||||
Loans payable - other (current) | 158 | 158 | |||||
Total current liabilities | 25,624 | 32,631 | |||||
2021 Bonds payable (long-term) | 66,853 | 66,486 | |||||
Loans payable - other (long-term) | 238 | 318 | |||||
Operating lease liabilities (long-term) | 1,786 | 1,902 | |||||
Finance lease liabilities (long-term) | 16,342 | 17,797 | |||||
Other long-term liabilities | — | 87 | |||||
Total liabilities | 110,843 | 119,221 | |||||
Stockholders' Equity | |||||||
Common stock, | 2,353 | 2,020 | |||||
Additional paid-in capital | 1,249,880 | 1,103,224 | |||||
Accumulated other comprehensive loss | (2,256 | ) | (614 | ) | |||
Accumulated deficit | (586,209 | ) | (557,375 | ) | |||
Total stockholders' equity | 663,768 | 547,255 | |||||
Total liabilities and stockholders' equity | $ | 774,611 | $ | 666,476 |
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue and cost of goods sold | |||||||||||||||
Ethanol sales and related products, net | $ | 71 | $ | — | $ | 240 | $ | — | |||||||
Hydrocarbon revenue | 18 | 346 | 81 | 359 | |||||||||||
Total revenues | 89 | 346 | 321 | 359 | |||||||||||
Cost of production (including non-cash compensation expense) | 2,640 | 1,617 | 5,730 | 2,518 | |||||||||||
Depreciation and amortization | 1,088 | 1,177 | 2,179 | 2,270 | |||||||||||
Total cost of goods sold | 3,728 | 2,794 | 7,909 | 4,788 | |||||||||||
Gross loss | (3,639 | ) | (2,448 | ) | (7,588 | ) | (4,429 | ) | |||||||
Operating expenses | |||||||||||||||
Research and development expense (including stock-based compensation) | 1,966 | 1,332 | 3,158 | 2,710 | |||||||||||
Selling, general and administrative expense (including stock-based compensation) | 9,209 | 4,846 | 18,576 | 8,660 | |||||||||||
Preliminary stage project costs | 314 | 5,472 | 821 | 8,199 | |||||||||||
Other operations (including stock-based compensation) | 601 | — | 1,190 | — | |||||||||||
Loss (gain) on disposal of assets | — | 4,954 | — | 4,954 | |||||||||||
Depreciation and amortization | 386 | 46 | 737 | 104 | |||||||||||
Total operating expenses | 12,476 | 16,650 | 24,482 | 24,627 | |||||||||||
Loss from operations | (16,115 | ) | (19,098 | ) | (32,070 | ) | (29,056 | ) | |||||||
Other income (expense) | |||||||||||||||
(Loss) gain from change in fair value of derivative warrant liability | — | 43 | 16 | (10 | ) | ||||||||||
Interest expense | (2 | ) | (6 | ) | (4 | ) | (11 | ) | |||||||
Investment income (loss) | 78 | — | 330 | — | |||||||||||
Gain on forgiveness of SBA loan | — | 641 | — | 641 | |||||||||||
Other income (expense), net | 2,878 | 167 | 2,894 | 126 | |||||||||||
Total other income (expense), net | 2,954 | 845 | 3,236 | 746 | |||||||||||
Net loss | $ | (13,161 | ) | $ | (18,253 | ) | $ | (28,834 | ) | $ | (28,310 | ) | |||
Net loss per share - basic and diluted | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.15 | ) | |||
Weighted-average number of common shares outstanding - basic and diluted | 209,809,994 | 198,137,420 | 205,889,651 | 190,892,223 |
Condensed Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except share and per share amounts)
Three months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net loss | $ | (13,161 | ) | $ | (18,253 | ) | $ | (28,834 | ) | $ | (28,310 | ) | |||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (669 | ) | (307 | ) | (1,643 | ) | (307 | ) | |||||||
Adjustment for net gain (loss) realized on available-for-sale securities and included in net income, net of tax | — | — | 1 | — | |||||||||||
Total change in other comprehensive income (loss) | (669 | ) | (307 | ) | (1,642 | ) | (307 | ) | |||||||
Comprehensive loss | $ | (13,830 | ) | $ | (18,560 | ) | $ | (30,476 | ) | $ | (28,617 | ) |
Condensed Consolidated Statements of Stockholders’ Equity Information
(Unaudited, in thousands, except share amounts)
For the three months ended | ||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Stockholders’ Equity | |||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, | 201,752,722 | $ | 2,019 | $ | 1,107,051 | $ | (1,587 | ) | $ | (573,048 | ) | $ | 534,435 | |||||||||
Issuance of common stock and common stock warrants, net of issuance costs | 33,333,336 | 333 | 138,675 | — | — | 139,008 | ||||||||||||||||
Non-cash stock-based compensation | — | — | 4,220 | — | — | 4,220 | ||||||||||||||||
Issuance of common stock under stock plans, net of taxes | 79,893 | 1 | (66 | ) | — | — | (65 | ) | ||||||||||||||
Other comprehensive loss | — | — | — | (669 | ) | — | (669 | ) | ||||||||||||||
Net loss | — | — | — | — | (13,161 | ) | (13,161 | ) | ||||||||||||||
Balance, | 235,165,951 | $ | 2,353 | $ | 1,249,880 | $ | (2,256 | ) | $ | (586,209 | ) | $ | 663,768 | |||||||||
Balance, | 198,050,449 | $ | 1,981 | $ | 1,101,939 | $ | — | $ | (508,229 | ) | $ | 595,691 | ||||||||||
Issuance of common stock and common stock warrants, net of issuance costs | — | — | (45 | ) | — | — | (45 | ) | ||||||||||||||
Issuance of common stock upon exercise of warrants | 3,700 | — | 4 | — | — | 4 | ||||||||||||||||
Non-cash stock-based compensation | — | — | 858 | — | — | 858 | ||||||||||||||||
Issuance of common stock under stock plans, net of taxes | (89,673 | ) | (1 | ) | (1,824 | ) | — | — | (1,825 | ) | ||||||||||||
Other comprehensive loss | — | — | — | (307 | ) | — | (307 | ) | ||||||||||||||
Net loss | — | — | — | — | (18,253 | ) | (18,253 | ) | ||||||||||||||
Balance, | 197,964,476 | $ | 1,980 | $ | 1,100,932 | $ | (307 | ) | $ | (526,482 | ) | $ | 576,123 |
For the six months ended | ||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Stockholders’ Equity | |||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, | 201,988,662 | $ | 2,020 | $ | 1,103,224 | $ | (614 | ) | $ | (557,375 | ) | $ | 547,255 | |||||||||
Issuance of common stock and common stock warrants, net of issuance costs | 33,333,336 | 333 | 138,675 | — | — | 139,008 | ||||||||||||||||
Issuance of common stock upon exercise of warrants | 4,677 | — | 3 | — | — | 3 | ||||||||||||||||
Non-cash stock-based compensation | — | — | 8,264 | — | — | 8,264 | ||||||||||||||||
Issuance of common stock under stock plans, net of taxes | (160,724 | ) | — | (286 | ) | — | — | (286 | ) | |||||||||||||
Other comprehensive loss | — | — | — | (1,642 | ) | — | (1,642 | ) | ||||||||||||||
Net loss | — | — | — | — | (28,834 | ) | (28,834 | ) | ||||||||||||||
Balance, | 235,165,951 | $ | 2,353 | $ | 1,249,880 | $ | (2,256 | ) | $ | (586,209 | ) | $ | 663,768 | |||||||||
Balance, | 128,138,311 | $ | 1,282 | $ | 643,269 | $ | — | $ | (498,172 | ) | $ | 146,379 | ||||||||||
Issuance of common stock, net of issuance costs | 68,170,579 | 682 | 456,963 | — | — | 457,645 | ||||||||||||||||
Issuance of common stock upon exercise of warrants | 1,866,758 | 18 | 1,103 | — | — | 1,121 | ||||||||||||||||
Non-cash stock-based compensation | — | — | 1,420 | — | — | 1,420 | ||||||||||||||||
Issuance of common stock under stock plans, net of taxes | (211,172 | ) | (2 | ) | (1,823 | ) | — | — | (1,825 | ) | ||||||||||||
Other comprehensive loss | — | — | — | (307 | ) | — | (307 | ) | ||||||||||||||
Net loss | — | — | — | — | (28,310 | ) | (28,310 | ) | ||||||||||||||
Balance, | 197,964,476 | $ | 1,980 | $ | 1,100,932 | $ | (307 | ) | $ | (526,482 | ) | $ | 576,123 |
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)
Six Months Ended | |||||||
2022 | 2021 | ||||||
Operating Activities | |||||||
Net loss | $ | (28,834 | ) | $ | (28,310 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Loss on disposal of assets | — | 4,954 | |||||
(Gain) on forgiveness of SBA Loans | — | (641 | ) | ||||
Stock-based compensation | 7,945 | 1,617 | |||||
Depreciation and amortization | 2,916 | 2,372 | |||||
Noncash interest expense | 2,637 | — | |||||
Other noncash (income) expense | 352 | (41 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 790 | (320 | ) | ||||
Inventories | 102 | 275 | |||||
Prepaid expenses and other current assets, deposits and other assets | (1,828 | ) | (3,142 | ) | |||
Accounts payable, accrued expenses and long-term liabilities | (1,194 | ) | 3,768 | ||||
Net cash used in operating activities | (17,114 | ) | (19,468 | ) | |||
Investing Activities | |||||||
Acquisitions of property, plant and equipment | (46,165 | ) | (14,167 | ) | |||
Acquisition of patent portfolio | (10 | ) | — | ||||
Proceeds from sale and maturity of marketable securities | 169,082 | — | |||||
Purchase of marketable securities | (131,257 | ) | (422,362 | ) | |||
Net cash used in investing activities | (8,350 | ) | (436,529 | ) | |||
Financing Activities | |||||||
Proceeds from issuance of 2021 Bonds | — | 68,995 | |||||
Debt and equity offering costs | (10,993 | ) | (34,757 | ) | |||
Proceeds from issuance of common stock and common stock warrants | 150,000 | 487,549 | |||||
Proceeds from exercise of warrants | 3 | 1,119 | |||||
Net settlement of common stock under stock plans | (286 | ) | — | ||||
Payment of loans payable - other | (72 | ) | (53 | ) | |||
Payment of finance lease liabilities | (87 | ) | — | ||||
Net cash provided by financing activities | 138,565 | 522,853 | |||||
Net increase (decrease) in cash and cash equivalents | 113,101 | 66,856 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 136,033 | 78,338 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 249,134 | $ | 145,194 |
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Non-GAAP Cash EBITDA: | |||||||||||||||
Loss from operations | $ | (16,115 | ) | $ | (19,098 | ) | $ | (32,070 | ) | $ | (29,056 | ) | |||
Depreciation and amortization | 1,474 | 1,223 | 2,916 | 2,374 | |||||||||||
Stock-based compensation | 3,687 | 692 | — | — | |||||||||||
Non-GAAP cash EBITDA | $ | (10,954 | ) | $ | (17,183 | ) | $ | (29,154 | ) | $ | (26,682 | ) | |||
Non-GAAP Adjusted Net Loss: | |||||||||||||||
Net Loss | $ | (13,161 | ) | $ | (18,253 | ) | $ | (28,834 | ) | $ | (28,310 | ) | |||
Adjustments: | |||||||||||||||
Gain (loss) from change in fair value of derivative warrant liability | — | (43 | ) | (16 | ) | 10 | |||||||||
Total adjustments | — | (43 | ) | (16 | ) | 10 | |||||||||
Non-GAAP Net Income (Loss) | $ | (13,161 | ) | $ | (18,296 | ) | $ | (28,850 | ) | $ | (28,300 | ) | |||
Non-GAAP adjusted net loss per share - basic and diluted | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.15 | ) | |||
Weighted-average number of common shares outstanding - basic and diluted | 209,809,994 | 198,137,420 | 205,889,651 | 190,892,223 | |||||||||||
Investor and Media Contact
+1 720-647-9605
IR@gevo.com
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