3 unchanged sentences
are in thousands (except per share amounts).
+Added: In recent years, general economic inflation has not had a material adverse impact on our costs and, as described elsewhere herein, we have passed some price increases along to our customers.
+Added: However, we are subject to certain market risks as described below.
Market risk represents the potential loss arising from adverse changes in market rates and prices.
6 unchanged sentences
To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained.
−Removed: We had no derivative instruments that qualified under these rules as designated accounting hedges in the first nine months of 2022 or 2021.
+Added: We had no derivative instruments that qualified under these rules as designated accounting hedges in the first three months of 2023 or 2022.
Changes in the fair value of our derivative instruments are recognized at the end of each accounting period and recorded in the consolidated statement of operations as a component of cost of goods sold within the biodiesel segment.
Our immediate recognition of derivative instrument gains and losses can cause net income to be volatile from period to period due to the timing of the change in value of the derivative instruments relative to the volume of biofuel being sold.
−Removed: At September 30, 2022 and December 31, 2021, the fair values of our derivative instruments were a net asset of $1,902 and a net liability of $485, respectively.
+Added: At March 31, 2023 and December 31, 2022, the fair values of our derivative instruments were a net asset of $4,760 and a net liability of $142, respectively.
Our gross profit will be impacted by the prices we pay for raw materials and conversion costs (costs incurred in the production of chemicals and biofuels) for which we do not possess contractual market price adjustment protection.
1 unchanged sentence
The availability and price of these items are subject to fluctuations due to unpredictable factors such as weather conditions, overall economic conditions, governmental policies, commodity markets, and global supply and demand.
−Removed: We prepared a sensitivity analysis of our exposure to market risk with respect to key raw materials and conversion costs for which we do not possess contractual market price adjustment protections, based on average prices for the first nine months of 2022.
+Added: We prepared a sensitivity analysis of our exposure to market risk with respect to key raw materials and conversion costs for which we do not possess contractual market price adjustment protections, based on average prices for the first three months of 2023.
We included only those raw materials and conversion costs for which a hypothetical adverse change in price would result in a 1% or greater decrease in gross profit.
6 unchanged sentences
Biodiesel feedstocks
−Removed: Sodium methylate
−Removed: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the nine months ended September 30, 2022.
+Added: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the three months ended March 31, 2023.
Volume requirements may differ materially from these quantities in future years as our business evolves.
−Removed: We had no borrowings at September 30, 2022 or December 31, 2021 and, as such, we were not exposed to interest rate risk for those periods.
+Added: We had no borrowings at March 31, 2023 or December 31, 2022 and, as such, we were not exposed to interest rate risk for those periods.
Due to the relative insignificance of transactions denominated in foreign currency, we consider our foreign currency risk to be immaterial.
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.