1 unchanged sentence
All dollar amounts expressed as numbers in these Market Risk Disclosures are in thousands (except per share amounts).
−Removed: In recent years, general economic inflation has not had a material adverse impact on our profit, and as described elsewhere herein, we have passed some price increases along to our customers.
+Added: In recent years, general economic inflation has not had a material adverse impact on our profit, as we have passed some price increases along to our customers.
However, we are subject to certain market risks as described below.
4 unchanged sentences
In order to manage price risk caused by market fluctuations in biofuel prices, we may enter into exchange-traded commodity futures and options contracts.
−Removed: We account for these derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging.
+Added: We account for these derivative instruments in accordance with ASC 815.
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 six months of 2024 or 2023.
−Removed: 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.
+Added: We had no derivative instruments that qualified under these rules as designated accounting hedges in the first nine months of 2024 or 2023.
+Added: 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 the 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 June 30, 2024 and December 31, 2023, the fair value of our derivative instruments was a net asset of $40 and $1,736, respectively.
+Added: At September 30, 2024 and December 31, 2023, the fair value of our derivative instruments was a net asset of $297 and $1,736, 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 six months of 2024.
+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 nine months of 2024.
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.
8 unchanged sentences
Sodium Methylate
−Removed: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the six months ended June 30, 2024.
+Added: (a) Volume requirements and average price information are based upon volumes used and prices obtained for the nine months ended September 30, 2024.
Volume requirements may differ materially from these quantities in future years as our business evolves.
−Removed: We had no borrowings at June 30, 2024 or December 31, 2023, and as such, we were not exposed to interest rate risk for those periods.
+Added: We had no borrowings at September 30, 2024, or December 31, 2023, 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.