What changed in this filing

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Item 1. Business

2025-03-19 compared with 2024-03-26 · 56 added, 54 removed, 88 unchanged (56% of the section changed)

2 unchanged sentences

(the “Company”) has been a technology company focused on emerging technologies in renewable energy, biofuels, and lignin.

early 2018, the Company’s chief executive officer (“CEO”) Ben Slager invented a new reactor technology with a

higher yield and a continuous throughput in the Cellulose-to-Sugar process, or CTS, and the Company filed a process patent

application for this technology.

early 2018, the Company’s chief executive officer (“CEO”) Ben Slager invented a new reactor technology with a higher

yield and a continuous throughput in the Cellulose-to-Sugar process, or CTS, and the Company filed a process patent application for this

Slager has since further developed the system with the technical staff of the Company.

patent was awarded in 2021 in the United States (U.S.

10,994,255) and has subsequently been granted in Japan and El

The Company also filed this patent in other major jurisdictions of the world including the European Patent Organization,

Australia, Brazil, China, the African Regional Intellectual Property Organization, and the Russian Federation.

applications are currently pending in all of these international jurisdictions.

In addition to this patent, the Company has received

one additional patent in the United States (U.S.

11,484,858B2), for which it has also applied in all the above-mentioned

The CTS patent was awarded in

2021 in the United States (U.S.

10,994,255) and has subsequently been granted in Japan, Australia, Russia, and El Salvador.

The Company also filed this patent in other major jurisdictions of the world including the European Patent Organization, Brazil, China,

and the African Regional Intellectual Property Organization.

The patent applications are currently pending in all of these international

jurisdictions.

Further, the company has filed for 6 other patents in the United States which are currently pending.

In addition to this patent, the Company has received one additional patent in the United States (U.S.

11,484,858B2),

for which it has also applied in all the above-mentioned jurisdictions.

Further, the company has filed for 3 other patents in the United

States which are currently pending.

Slager has since further developed the system with the technical staff of the Company.

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The bankruptcy case was closed on October 25, 2019.

is environmentally friendly in that it recycles the water and catalyst, and it has a low carbon footprint:

the amount of added atmospheric

carbon created by burning the biofuels produced by the CTS system was absorbed by the plant-based feedstock while growing and is merely

released back into the atmosphere.

is environmentally friendly in that it has no toxic waste, and it has a low carbon footprint:

the amount of added atmospheric carbon

created by burning the biofuels produced by the CTS system was absorbed by the plant-based feedstock while growing and is merely released

back into the atmosphere.

No extra CO2 is released into the atmosphere when our biofuels are burned.

This is to be distinguished

from fossil fuels because new CO2 is released when fossil fuels are burned.

This is to be distinguished from

fossil fuels because new CO2 is released when fossil fuels are burned.

Company believes a significant difference between CTS cellulosic ethanol and corn ethanol is the wide range of abundantly available feedstocks

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that builds briquetting machines and compaction/granulation systems with throughput capacities up to 50 tons per hour.

2023, the Company completed the build-out of a pilot plant based on a modified Komarek machine and is in the process of further testing

and optimizing the plant.

The Company believes that it can optimize the pre and post processing elements at this pilot scale plant to

finalize design and operational parameters to provide operating cost estimates of a full-scale commercial volume system.

Due to its mechanical

nature and modularity, we anticipate that one plant would have multiple modular CTS systems.

addition, the Company has licensed the Vertimass Process to convert ethanol into sustainable aviation fuel (SAF) and other renewable

biofuels including bio-gasoline.

The license agreement with Vertimass is the subject to a confidentiality agreement between the parties.

2023, the Company completed the build-out of a pilot plant based on a modified Komarek machine and optimized the core process.

is now upscaling, testing and optimizing the pre and post processing elements at this pilot scale plant to finalize design and operational

parameters to provide operating cost estimates of a full-scale commercial volume system.

Due to its mechanical nature and modularity,

we anticipate that one plant would have multiple modular CTS systems.

This process is partially funded by the $1.15 million SBIR Phase

2 Department of Energy grant, which followed up from the SBIR Phase 1 DOE grant that helped fund the finalizing of the proof of concept.

addition, the Company has licensed the Vertimass Process which is a patented one step process that converts ethanol into sustainable

aviation fuel (SAF) and other renewable biofuels including bio-gasoline.

The license agreement with Vertimass is the subject to a confidentiality

agreement between the parties.

total process from cellulosic feedstock to SAF consists basically of three steps:

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January 2024, the Company formed a 50-50 joint venture partnership with Vertimass called VertiBlue Fuels, LLC, that has the mission to

build an ethanol-to-SAF facility in Florida with the initial goal to produce around 10 million gallons of Sustainable Aviation Fuel (SAF),

and then expand SAF production to approximately 70 million gallon per year.

VertiBlue Fuels plans to initially convert sugarcane ethanol,

and then, when the Company’s CTS technology is fully commercialized, to build commercial CTS and ethanol facilities on the front-end

to produce cellulosic SAF and generate the large D7 RIN and other government credits.

Commencing commercial production will require project

build an ethanol-to-SAF facility in Florida with the initial goal to produce around 5-10 million gallons of Sustainable Aviation Fuel

(SAF), and then expand SAF production to approximately 70 million gallon per year.

VertiBlue Fuels plans to initially convert sugarcane

ethanol, and then, when the Company’s CTS technology is fully commercialized, to build commercial CTS and ethanol facilities on

the front-end to produce cellulosic SAF and generate the large D7 RIN and other government credits.

Commencing commercial production

will require project financing.

new biofuels plant that is built would require various government permits.

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in larger and larger quantities.

The RFS mandate for 2024 calls for 21.54 billion gallons of total renewable fuel, 15 billion from conventional

biofuels (corn ethanol) and 6.54 billion from advanced biofuels, including cellulosic biofuels.

The “blend wall” (or upper

limit to the amount of ethanol that can be blended into U.S.

gasoline and automobile performance and comply with the Clean Air Act) of

limiting ethanol content in gasoline to 10%, limits the total amount of ethanol consumed in the United States.

Recent proposals have

make 15% blending available year around in some states.

The value of the D3 RIN fluctuates, but as of this filing, it is approximately

$3.06 per gallon of ethanol.

For comparison, the D6 RIN for corn ethanol is $0.43.

To profit from these incentives, the Company plans

to apply for these D3 RIN credits as it brings its first plant into commercial operation.

The RFS mandate for 2024 called for 21.54 billion gallons of total renewable fuel, whereas for 2025

it’s 22.33 billion gallons with 7.33 billion gallons from advanced biofuels, including cellulosic biofuels, leaving 15 billion

gallons for conventional biofuels (corn ethanol).

The “blend wall” (or upper limit to the amount of ethanol that can be blended

gasoline and automobile performance and comply with the Clean Air Act) of limiting ethanol content in gasoline to 10%, limits

the total amount of ethanol consumed in the United States.

Recent proposals have make 15% blending available year around in some states.

The value of the D3 RIN fluctuates, but as of this filing, it is approximately $2.48 per gallon of ethanol.

For comparison, the D6 RIN

for corn ethanol is $0.72.

To profit from these incentives, the Company plans to apply for these RIN credits as it brings its first plant

into commercial operation.

45Z of the Inflation Reduction Act passed on August 16, 2022, offers a Clean Fuel Production Credit (CFPC) per gallon of transportation

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commercial scale, management expects to be able to earn substantial renewable fuel credits and produce sustainable ethanol, sustainable

aviation fuel, and other sustainable biofuels more profitably than they could be from existing commercial corn ethanol producers.

ethanol comes with a much more valuable D3 RIN credit as compared to the D6 RIN allocated to corn ethanol;

cellulosic SAF comes with

a very valuable D7 RIN, and cellulosic bio-gasoline comes with a valuable D3 RIN.

The Company also expects to receive Clean Fuel Production

Credits related to section 45Z of the Inflation Reduction Act, and the Company also plans to pursue Low Carbon Fuel Standard Credits.

aviation fuel, biogasoline, and other sustainable biofuels more profitably than they could be from existing commercial corn ethanol producers.

Cellulosic ethanol comes with a much more valuable D3 RIN credit as compared to the D6 RIN allocated to corn ethanol;

cellulosic SAF

comes with a very valuable D7 RIN, and cellulosic bio-gasoline comes with a valuable D3 RIN.

The Company also expects to receive Clean

Fuel Production Credits related to section 45Z of the Inflation Reduction Act, and the Company also plans to pursue Low Carbon Fuel Standard

its first plant is profitable, the Company intends to grow with additional plants in the United States and explore international growth

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Each share of Company Common Stock is entitled to one (1) vote per share.

company currently employs five full-time employees, one part-time employee and seven consultants.

Company currently employs six full-time employees, one part-time employee and seven consultants.

The Company plans to hire additional

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required as the Company is a “smaller reporting company.”

UNRESOLVED STAFF COMMENTS

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business