6 unchanged sentences
Market risk represents the potential loss arising from adverse changes in market rates and prices.
−Removed: Commodity price risk is inherent in the chemicals and biofuels business both with respect to inputs (electricity, coal, raw materials, biofuels feedstock, etc.) and outputs (manufactured chemicals and biofuels).
−Removed: We seek to mitigate our market risks associated with the manufacturing and sale of chemicals by entering into long-term sale contracts that include contractual market price adjustment protections to allow changes in market prices of key raw materials to be passed on to the customer.
+Added: Commodity price risk is inherent in the chemicals and biofuels business both with respect to inputs (electricity, coal, raw materials, biofuel feedstock, etc.) and outputs (manufactured chemicals and biofuels).
+Added: We seek to mitigate our market risks associated with the manufacturing and sale of chemicals by entering into long-term sales contracts that include contractual market price adjustment protections to allow changes in market prices of key raw materials to be passed on to the customer.
Such price protections are not always obtained, however, and some raw material price risk remains significant.
−Removed: In order to manage price risk caused by market fluctuations in biofuels prices, we may enter into exchange-traded commodity futures and options contracts.
−Removed: We account for these derivative instruments in accordance with Topic 815, Derivatives and Hedging.
+Added: In order to manage price risk caused by market fluctuations in biofuel prices, we may enter into exchange-traded commodity futures and options contracts.
+Added: We account for these derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging.
 Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship.
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 three months of 2023 or 2022.
+Added: We had no derivative instruments that qualified under these rules as designated accounting hedges in the first six 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 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.
+Added: At June 30, 2023 and December 31, 2022, the fair value of our derivative instruments were a net asset of $3,117 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 three months of 2023.
+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 six 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: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the three months ended March 31, 2023.
+Added: Sodium Methylate
+Added: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the six months ended June 30, 2023.
Volume requirements may differ materially from these quantities in future years as our business evolves.
−Removed: 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.
+Added: We had no borrowings at June 30, 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.