What changed in this filing

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Item 1. Financial Statements

2025-05-12 compared with 2024-11-08 · 156 added, 145 removed, 284 unchanged (51% of the section changed)

3 unchanged sentences

(Dollars in thousands)

September 30, 2024

March 31, 2025

December 31, 2024

2 unchanged sentences

Accounts receivable, inclusive of the blenders’ tax credit of $ 0 and $ 6,683 , respectively, and net of allowances for expected credit losses of $ 27 and $ 29 , respectively

15,967 28,406

Accounts receivable – related parties

Inventory, net

15 unchanged sentences

Accounts payable – related parties

Income tax payable

Deferred revenue – current

1 unchanged sentence

Accrued expenses and other current liabilities

14,698 11,082

Total current liabilities

30,536 33,307

Deferred revenue – non-current

Deferred revenue – noncurrent

Noncurrent deferred income taxes

1 unchanged sentence

Total noncurrent liabilities

13,524 15,857

Total liabilities

39,265 41,870

Commitments and contingencies (See Note 13)

Commitments and contingencies

Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized, none issued and outstanding

Common stock, $ 0.0001 par value, 75,000,000 shares authorized, 43,763,243 shares issued and outstanding as of September 30, 2024 and December 31, 2023

Common stock, $ 0.0001 par value, 75,000,000 shares authorized, 43,803,243 shares issued and outstanding as of March 31, 2025 and December 31, 2024

Additional paid in capital

205,661 205,434

Retained earnings

Retained earnings (accumulated deficit)

( 17,261 ) 383

Total stockholders’ equity

4 unchanged sentences

FutureFuel Corp.

Consolidated Statements of Operations and Comprehensive Income

Consolidated Statements of Operations and Net Income

(Dollars in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,

Revenue – related parties

Cost of goods sold

1 unchanged sentence

Distribution – related parties

Gross (loss) profit

Selling, general, and administrative expenses

7 unchanged sentences

Interest expense

Gain on marketable securities

Other (expense) income

Other expense

Other income, net

(Loss) income before taxes

Income tax (benefit) provision

Income tax provision

Net (loss) income

1 unchanged sentence

Weighted average shares outstanding

Comprehensive (loss) income

Net (loss) income

Other comprehensive income from unrealized net gains on available-for-sale debt securities

Income tax effect

Total other comprehensive income, net of tax

Comprehensive (loss) income

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

For the Nine Months Ended September 30, 2024

Comprehensive

For the Three Months Ended March 31, 2025

Stockholders’

Income (Loss)

Balance - December 31, 2024

43,803,243 $ 4 $ 205,434 $ 383 $ 205,821

Cash dividends declared, $ 2.50 per common share

- - - ( 77,691 ) ( 31,717 ) ( 109,408 )

Stock based compensation

3 unchanged sentences

43,803,243 $ 4 $ 205,661 $ ( 17,261 ) $ 188,404

For the Three Months Ended March 31, 2024

Stockholders’

Balance - December 31, 2023

43,763,243 $ 4 $ 282,489 $ 27,387 $ 309,880

Balance - June 30, 2024

Cash dividends declared, $ 2.50 per common share

- - ( 77,691 ) ( 31,717 ) ( 109,408 )

1 unchanged sentence

- - - 4,330 4,330

- - - - ( 1,195 ) ( 1,195 )

Balance - September 30, 2024

43,763,243 $ 4 $ - $ 204,911 $ 8,376 $ 213,291

For the Nine Months Ended September 30, 2023

Comprehensive

Stockholders’

(Loss) Income

Balance - December 31, 2022

Other comprehensive income

Balance - March 31, 2024

Other comprehensive loss

Balance - June 30, 2023

Balance - September 30, 2023

43,763,243 $ 4 $ 204,820 $ - $ 204,824

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities:

Net (loss) income

$ ( 17,643 ) $ 4,330

Adjustments to reconcile net income to net cash used in operating activities:

Amortization of deferred financing costs

Provision for deferred income taxes

Change in fair value of equity securities

Change in fair value of derivative instruments

Loss on the sale of investments

Stock based compensation

Loss on disposal of property and equipment

Gain on disposal of property and equipment

Noncash interest expense

2 unchanged sentences

Accounts receivable – related parties

(6,021 ) ( 22,758 )

Income tax receivable

Prepaid expenses

Prepaid expenses – related parties

( 6 ) ( 289 )

Accounts payable

( 3,404 ) ( 5,753 )

Accounts payable – related parties

Income tax payable

Accrued expenses and other current liabilities

Deferred revenue

( 85 ) ( 861 )

Other noncurrent liabilities

Net cash provided by operating activities

Net cash used in operating activities

( 5,395 ) ( 12,211 )

Cash flows from investing activities

Collateralization of derivative instruments

Proceeds from the sale of marketable securities

( 110 ) ( 1,212 )

Proceeds from the sale of property and equipment

Capital expenditures

Net cash (used in) provided by investing activities

( 4,003 ) ( 2,273 )

Net cash used in investing activities

( 4,082 ) ( 3,485 )

Cash flows from financing activities

Payment of dividends

( 2,628 ) ( 2,626 )

Deferred financing costs

Net cash used in financing activities

( 2,993 ) ( 2,626 )

Net change in cash and cash equivalents

( 12,470 ) ( 18,322 )

Cash and cash equivalents at beginning of period

109,541 219,444

Cash and cash equivalents at end of period

$ 97,071 $ 201,122

Cash dividends declared in the current period, not paid

$ - $ 109,408

Noncash investing and financing activities:

Noncash capital expenditures

$ ( 407 ) $ 536

The accompanying notes are an integral part of these consolidated financial statements.

4 unchanged sentences

The accompanying unaudited consolidated financial statements have been prepared by FutureFuel Corp.

(“FutureFuel” or “the Company”) in accordance and consistent with the accounting policies stated in the Company's 2023 Annual Report on Form 10 -K, as amended, inclusive of the audited consolidated financial statements, and should be read in conjunction with these consolidated financial statements.

(“FutureFuel” or “the Company”) in accordance and consistent with the accounting policies stated in the Company's 2024 Annual Report on Form 10 -K, inclusive of the audited consolidated financial statements, and should be read in conjunction with these consolidated financial statements.

Certain reclassifications were made to prior year amounts to conform to the 2025 presentation.

In the opinion of FutureFuel, all normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements.

4 unchanged sentences

namely, FutureFuel Chemical Company;

FFC Grain, L.L.C.;

FutureFuel Warehouse Company, L.L.C.;

and Legacy Regional Transport, L.L.C.

The majority of FFC Grain, L.LC.'s assets were disposed of during the current three -month period as the idle subsidiary is being dissolved.

Intercompany transactions and balances have been eliminated in consolidation.

Some of the Company's manufacturing equipment requires periodic, planned shutdowns of significant parts of our facility in order to perform necessary inspections, cleanings, and maintenance activities, referred to as turnarounds.

The cost of turnarounds incurred for routine repairs and maintenance or unplanned outages at our facility are expensed as incurred.

Recently Adopted Accounting Standards

The Company had no recently adopted accounting standards updates (“ASU”).

Accounting Standards Issued Not Yet Adopted as of September 30, 2024

2023 - 07 Segment Reporting (Topic 280 ):

Improvements to Reportable Segment Disclosures:

The FASB issued this update in November 2023 which aims to improve disclosures about a public entity’s reportable segments.

These changes will affect the Company’s segment reporting beginning with its Annual Report for the year ended December 31, 2024, and will be applied retrospectively to all prior periods presented.

The amendments in this ASU require public business entities to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and are included within each reported measure of segment profit or loss.

This update does not change how an entity identifies or aggregates its reportable segments or how it applies the quantitative thresholds to determine them.

Management believes the adoption of this ASU will have a minimal impact on the Company’s financial statements and related disclosures.

Accounting standards updates (“ASU”) No.

2023 - 09 Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures:

The FASB issued this update in December 2023 which aims to address requests for improved income tax disclosures from investors that use the financial statements to make capital allocation decisions.

The FASB issued this ASU in December 2023 which aims to address requests for improved income tax disclosures from investors that use the financial statements to make capital allocation decisions.

The amendments in this ASU address the investor requests for more transparency of income tax information and apply to all entities that are subject to income taxes.

1 unchanged sentence

This ASU should be applied on a prospective basis, although retrospective application is permitted.

The Company will adopt the new standard effective for the year ended December 31, 2025, and does not expect the adoption to have a material impact on its financial statements and disclosures.

The Company has adopted the new standard effective for the year ended December 31, 2025;

however, the required disclosures are effective for our 2025 annual report.

The adoption will have an immaterial impact on the Company's financial statements and disclosures.

Accounting Standards Issued Not Yet Adopted as of March 31, 2025

2024 - 03 Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

Disaggregation of Income Statement Expenses:

The FASB issued this update in November 2024 which aims to provide investors with more useful information about an entity’s expenses by improving disclosures on income statement expenses.

The FASB issued this ASU in November 2024 which aims to provide investors with more useful information about an entity’s expenses by improving disclosures on income statement expenses.

The amendments in this ASU require all public business entities to disclose disaggregated information about specific categories underlying certain income statement expense line items.

1 unchanged sentence

Early adoption is permitted.

The Company is evaluating this accounting standard and does not expect the adoption to have a material impact on its financial statements and disclosures.

The Company is evaluating this accounting standard and currently does not expect the adoption to have a material impact on its financial statements and disclosures.

Notes to Consolidated Financial Statements of FutureFuel Corp.

2 unchanged sentences

BIODIESEL BLENDERS' TAX CREDIT, SMALL AGRI-BIODIESEL PRODUCER TAX CREDIT, and CLEAN FUEL PRODUCTION TAX CREDIT

The biodiesel Blenders’ Tax Credit (“BTC”) provides a one dollar per gallon tax credit to the blender of biomass-based diesel with at least 0.1% petroleum-based diesel fuel.

The Company records this credit as a reduction to cost of goods sold as applicable sales are made.

The Further Consolidated Appropriations Act of 2020 was passed by Congress and signed into law on December 20, 2019, retroactively reinstating the BTC for 2018 and 2019 and extending it through December 31, 2022.

The Inflation Reduction Act (“IRA”) extended the BTC through December 31, 2024.

As part of each law from which the BTC was reinstated, small agri-biodiesel producers with production capacity not in excess of 60 million gallons were eligible for an additional income tax credit of $0.10 per gallon on the first 15 million gallons of agri-biodiesel sold (the “Small Agri-biodiesel Producer Tax Credit”).

The Company is eligible for this credit and recognizes the credit in the same accounting period as the benefit from the BTC.

The benefit of this credit is recognized as a component of income tax (benefit) provision.

The IRA created the clean fuel production credit (“CFPC”) for qualifying transportation fuel produced after 2024 and sold on or before December 31, 2027.

The CFPC consolidates and replaces several fuel related credits set to expire December 31, 2024, including the BTC and the Small Agri-biodiesel Producer Tax Credit.

The CFPC is an income tax credit structured on a sliding scale so that producers become eligible for larger credits as the greenhouse gas (“GHG”) emissions of the fuels they produce approach zero.

The biodiesel Blenders’ Tax Credit (“BTC”) provided a one dollar per gallon tax credit to the blender of biomass-based diesel with at least 0.1% petroleum-based diesel fuel.

The Company recorded this credit as a reduction to cost of goods sold as applicable sales were made.

The BTC expired December 31, 2024.

Small agri-biodiesel producers with production capacity not in excess of 60 million gallons were eligible for an additional income tax credit of $0.10 per gallon on the first 15 million gallons of agri-biodiesel sold (the “Small Agri-biodiesel Producer Tax Credit”).

The Company was eligible for this credit and recognized the credit in the same accounting period as the benefit from the BTC.

The benefit of this credit was recognized as a component of income tax (benefit) provision.

This credit expired December 31, 2024.

The Inflation Reduction Act created the clean fuel production credit (“CFPC”) in August 2022 for qualifying transportation fuel produced and sold in the years 2025 through 2027.

The CFPC is a nonrefundable and transferable income tax credit structured on a sliding scale so that producers become eligible for larger credits as the greenhouse gas (“GHG”) emissions of the fuels they produce approach zero.

For producers meeting the prevailing wage and registered apprenticeship requirements, the maximum credit is $1.00 per gallon of nonaviation fuel.

For producers not meeting the prevailing wage and registered apprenticeship requirements, the maximum credit is 20 cents per nonaviation fuel gallon.

In June 2024, when the Internal Revenue Service gave notice of the requirement, the Company applied for registration as a producer that meets the wage and registered apprenticeship requirements to receive the credit applicable to the level of GHG emissions for the fuel the Company produces.

For producers not meeting the prevailing wage and registered apprenticeship requirements, the maximum credit is $0.20 per nonaviation fuel gallon.

The Company is a registered producer that meets the wage and apprenticeship requirements to receive the credit applicable to the level of GHG emissions for the fuel the Company produces.

However, there is a lack of clarity from the U.S.

Treasury Department with respect to the CFPC with final rules yet to be issued.

In addition, there has been a delay of the Renewable Fuel Obligation for 2026.

For the three months ended March 31, 2025, the Company had only sold inventory that was produced in 2024 which was not eligible for the CFPC;

therefore, no CFPC credits were recognized for the three months ended March 31, 2025.

As eligible inventory is produced and sold, the Company will account for the CFPC as a reduction to cost of goods sold when product is sold.

CARES ACT – EMPLOYEE RETENTION TAX CREDIT

13 unchanged sentences

Each estimate is updated quarterly on a prospective basis.

The Company leases warehouse space under a short-term lease agreement with a term of twelve months.

Lease revenue recognized under this agreement was $ 170 for the three months ended March 31, 2025.

Contract Assets and Liabilities:

Contract assets consist of unbilled amounts typically resulting from revenue recognized through bill-and-hold arrangements.

The contract assets at September 30, 2024 and December 31, 2023 consist of unbilled revenue from one customer and unbilled capital reimbursement from another customer and are recorded as accounts receivable in the consolidated balance sheets.

The contract assets at March 31, 2025 and December 31, 2024 consist of unbilled revenue from one customer and unbilled capital reimbursement from another customer and are recorded as accounts receivable in the consolidated balance sheets.

Contract liabilities consist of advance payment arrangements related to material rights recorded as deferred revenue in the consolidated balance sheets.

Increases to contract liabilities from cash received or due for a performance obligation of chemical segment plant expansions were $ 0 and $ 506 for the three months and $ 0 and $ 538 for the nine months ended September 30, 2024 and 2023, respectively.

Increases to contract liabilities from cash received or due for a performance obligation of chemical segment plant expansions were $ 0 for both the three months ended March 31, 2025 and 2024.

Contract liabilities are reduced as the Company transfers product to the customer under the renewal option approach.

Revenue recognized in the chemical segment from the contract liability reductions was $ 936 and $ 444 for the three months and $ 2,539 and $ 2,402 for the nine months ended September 30, 2024 and 2023 , respectively.

Revenue recognized in the chemical segment from the contract liability reductions was $ 30 and $ 806 for the three months ended March 31, 2025 and 2024 , respectively.

These contract asset and liability balances are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

1 unchanged sentence

Contract Assets and Liability Balances

September 30, 2024

March 31, 2025

December 31, 2024

December 31, 2023

Trade receivables, included in accounts receivable*

$ 7,691 $ 14,991 $ 15,897

Contract assets, included in accounts receivable

209 222 1,128

Contract liabilities, included in deferred revenue - short-term

842 697 3,656

Contract liabilities, included in deferred revenue - long-term

3,117 3,293 9,318

* Exclusive of the BTC of $ 0 , $ 6,683 , and $ 11,381 , respectively, and net of allowances for expected credit losses of $ 27 , $ 29 , and $ 55 , respectively, as of the dates noted.

Transaction price allocated to the remaining performance obligations:

At September 30, 2024 , approximately $ 10,434 of revenue is expected to be recognized from the remaining performance obligations.

At March 31, 2025 , approximately $ 3,959 of revenue is expected to be recognized from the remaining performance obligations.

FutureFuel expects to recognize this revenue ratably over the expected sales over the expected term of its long-term contracts ranging from two to six years.

7 unchanged sentences

Disaggregation of revenue - contractual and non-contractual:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Contract revenue from customers with > one-year arrangements

$ 1,969 $ 9,240

Contract revenue from customers with < one-year arrangements

15,514 48,986

Revenue from non-contractual arrangements

Total revenue

$ 17,538 $ 58,281

Timing of revenue :

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Bill-and-hold revenue

$ 4,590 $ 11,644

Non-bill-and-hold revenue

12,948 46,637

Total revenue

As of September 30, 2024 and December 31, 2023 , $ 4,482 and $ 4,317 of bill-and-hold revenue had not shipped, respectively.

$ 17,538 $ 58,281

As of March 31, 2025 and December 31, 2024 , $ 5,628 and $ 7,301 of bill-and-hold revenue had not shipped, respectively.

The carrying values of inventory were as follows as of:

September 30, 2024

March 31, 2025

December 31, 2024

1 unchanged sentence

Finished goods

$ 4,308 $ 10,809

Work in process

Raw materials and supplies

Raw materials

27,309 15,335

32,412 27,016

( 5,748 ) ( 6,373 )

Total inventory

A Last In First Out (“LIFO”) liquidation of $ 935 occurred in the nine months ended September 30, 2024 .

There was no liquidation in the twelve months ended December 31, 2023.

$ 26,664 $ 20,643

There was no liquidation in the three months ended March 31, 2025 A liquidation of $ 435 occurred in the twelve months ended December 31, 2024.

Notes to Consolidated Financial Statements of FutureFuel Corp.

19 unchanged sentences

The Company has elected the normal purchase and normal sales exception for certain feedstock purchase contracts and supply agreements.

Total gains and losses on derivative instruments and changes in fair value of the derivative instruments are recorded in the consolidated statements of operations as a component of cost of goods sold and amounted to a net gain of $ 1,947 (including settlements of $ 1,691 ) and a net loss of $ 102 (including settlement gains of $ 1,337 ) for the three and nine months ended September 30, 2024 , and a net loss of $ 14,068 (includin g settlements of $ 7,286 ) and $ 1,373 (includingsettlement gains of $ 2,150 ) for the three and nine months ended September 30, 2023 .

Total gains and losses on derivative instruments and changes in fair value of the derivative instruments are recorded in the consolidated statements of operations as a component of cost of goods sold and amounted to a net loss of $ 166 (including settlement gains of $ 93 ) for the three months ended March 31, 2025 , and a net loss of $ 3,464 (includin g settlements of $ 1,190 ) for the three months ended March 31, 2024 .

The volumes and carrying values of FutureFuel’s derivative instruments were as follows at:

Asset (Liability)

September 30, 2024

March 31, 2025

December 31, 2024

2 unchanged sentences

Regulated fixed price future commitments, included in other current assets (in thousand barrels)

The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of $ 322 and $ 745 at September 30, 2024 and December 31, 2023 , respectively, and was classified as other current assets in the consolidated balance sheets.

120 $ ( 494 ) 100 $ ( 235 )

The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of $ 987 and $ 877 at March 31, 2025 and December 31, 2024 , respectively, and was classified as other current assets in the consolidated balance sheets.

The carrying values of the margin account and of the derivative instruments are included net, in other current assets.

1 unchanged sentence

(Dollars in thousands, except per share and per gallon amounts)

MARKETABLE SECURITIES

At September 30, 2024 and December 31, 2023 , FutureFuel held no marketable equity and trust preferred (debt) securities.

During the three months ended June 30, 2023, FutureFuel exited its position in marketable equity and trust preferred (debt) securities.

The sale of these securities was recorded as a component of net income with gains of $ 575 in the nine months ended September 30, 2023.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following at:

September 30, 2024

March 31, 2025

December 31, 2024

Refundable deposit

$ 9,000 $ 6,500

Employment tax credit

Accrued employee liabilities

Accrued property, franchise, motor fuel and other taxes

Lease liability, current

Notes to Consolidated Financial Statements of FutureFuel Corp.

(Dollars in thousands, except per share and per gallon amounts)

On March 30, 2020, the Company, with FutureFuel Chemical Company as the borrower and certain of the Company’s other subsidiaries as guarantors, amended and restated its credit agreement (the “Credit Agreement”) originally entered into on April 16, 2015 ( as amended, the “Prior Credit Agreement”) with the lenders party thereto, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent.

$ 14,698 $ 11,082

On February 21, 2025, the Company, with FutureFuel Chemical Company as the borrower and certain of the Company’s other subsidiaries as guarantors, amended and restated its credit agreement (the “Credit Agreement”) originally entered into on April 16, 2015 and amended on March 30, 2020 ( as amended, the “Prior Credit Agreement”) and further amended on February 21, 2025 with the lender party thereto, Regions Bank as administrative agent, collateral agent, and syndication agent.

The Credit Agreement consists of a five -year revolving credit facility in a dollar amount of up to $ 75,000 , which includes a sublimit of $ 30,000 for letters of credit and $ 15,000 for swingline loans (collectively, the “Credit Facility”).

The Credit Facility expires on March 30, 2025.

On March 1, 2023 , the Company entered into a First Amendment to the Credit Agreement (the “First Amendment”).

The First Amendment primarily amends the Credit Agreement to transition the Credit Facility from the London Interbank Offered Rate to the Secured Overnight Financing Rate (“SOFR”) and other conforming changes, in each case as more specifically set forth in the First Amendment.

The First Amendment does not modify the aggregate amount, or expiration date, of the Credit Facility.

Pursuant to the First Amendment, the interest rate floats at the following margins over SOFR, or base rate based upon our leverage ratio.

The Credit Facility expires on February 21, 2030.

The interest rate floats at the following margins over Secured Overnight Financing Rate ("SOFR") or base rate based upon our leverage ratio.

Adjusted SOFR Rate Loans and

11 unchanged sentences

2.00 % 1.00 % 0.25 %

The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a consolidated minimum interest coverage ratio.

There were no borrowings under the Credit Agreement at September 30, 2024 or December 31, 2023 .

The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio.

There were no borrowings under the Credit Agreement at March 31, 2025 or December 31, 2024 .

Notes to Consolidated Financial Statements of FutureFuel Corp.

2 unchanged sentences

The following table summarizes the income tax provision.

Three Months Ended September 30,

Nine Months Ended September 30,

Income tax (benefit) provision

Three Months Ended March 31,

Income tax provision

Effective tax rate

The Company’s income tax benefit was insignificant in the three months ended September 30, 2024.

In the nine months ended September 30, 2024, the provision was comprised primarily of an increase in the valuation allowance against net deferred assets, plus immaterial state taxes and miscellaneous items.

No deferred tax benefits on ongoing tax losses or other deferred tax assets have been recognized, reflecting management’s determination that none of the net deferred tax assets are more likely than not to be realized.

The three - and nine -month periods in 2023 reflected immaterial state taxes and miscellaneous items.

The Company evaluates its deferred tax assets quarterly and records a valuation allowance to reduce these assets to the amount that is more likely than not to be realized.

The Company’s income tax provision for the three months ended March 31, 2025, is comprised of immaterial state taxes and miscellaneous items.

The provision for the three months ended March 31, 2024, was comprised primarily of an increase in the valuation allowance against net deferred assets, plus immaterial state taxes and miscellaneous items.

EARNINGS PER SHARE

In the three and nine months ended September 30, 2024 and 2023 , FutureFuel used the treasury method in computing earnings per share.

In the three months ended March 31, 2025 and 2024 , FutureFuel used the treasury method in computing earnings per share.

Basic and diluted earnings per common share were computed as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Net (loss) income

$ ( 17,643 ) $ 4,330

Weighted average shares outstanding – basic

43,803,243 43,763,243

Effect of dilutive securities:

1 unchanged sentence

Weighted average shares outstanding – diluted

43,803,243 43,763,243

Basic (loss) earnings per share

$ ( 0.40 ) $ 0.10

Diluted (loss) earnings per share

For each of the three and nine months ended September 30, 2024 , 44,000 options to purchase FutureFuel’s common stock were excluded in the computation of diluted earnings per share as all were anti-dilutive.

In the three and nine months ended September 30, 2023 , 41,534 and 42,080 options, respectively, were excluded as all were anti-dilutive.

$ ( 0.40 ) $ 0.10

For the three months ended March 31, 2025 and 2024, 40,000 and 44,000 options to purchase FutureFuel’s common stock were excluded, respectively, in the computation of diluted earnings per share as all options were anti-dilutive.

RELATED PARTY TRANSACTIONS

FutureFuel enters into transactions with companies affiliated with or controlled by a director and significant shareholder.

Revenues, expenses, prepaid amounts, and unpaid amounts related to these transactions are captured in the accompanying consolidated financial statements as related party line items.

Related party revenues are the result of sales of biodiesel, petrodiesel, blends, other petroleum products, and other similar or related products to these related parties.

Related party cost of goods sold and distribution are the result of sales and purchases of biodiesel, petrodiesel, blends, and other petroleum products with these related parties along with the associated expense from storage and terminalling services provided by these related parties.

Expenses, prepaid amounts, and unpaid amounts related to these transactions are captured in the accompanying consolidated financial statements as related party line items.

Related party cost of goods sold and distribution are the result of net sales and purchases of blended biodiesel with these related parties along with the associated expense from storage and terminalling services provided by these related parties.

Notes to Consolidated Financial Statements of FutureFuel Corp.

2 unchanged sentences

FutureFuel has two reportable segments organized along similar product groups – chemicals and biofuels.

The chief operating decision maker ("CODM”) is Roeland Polet, the chief executive officer.

The CODM reviews the significant components for each of our segments.

The CODM evaluates the performance of each reportable segment and decides how to allocate resources based on segment gross profit (loss), which includes the revenue and expenses that are directly attributable to management of each segment.

The CODM uses segment gross profit (loss) to assess the income generated by each reportable segment and to decide which reportable segment to reinvest profits or pay dividends.

Segment gross profit (loss) is also used to analyze performance against the budget and the Company’s competitors.

FutureFuel’s chemical segment manufactures diversified chemical products that are sold externally to third party customers.

6 unchanged sentences

internally generated, separated Renewable Identification Numbers (“RINs”);

and biodiesel production byproducts.

biodiesel production byproducts;

and revenue and profits from Legacy Regional Transport.

Biodiesel selling prices and profitability can at times fluctuate based on the timing of unsold, internally generated RINs.

1 unchanged sentence

The benefit derived from the eventual sale of the RINs is not reflected in results of operations until such time as the RINs sale has been completed, which may lead to variability in reported operating results.

As of September 30, 2024 , FutureFuel held 5.0 million RINs with a fair market value of $ 2,556 and no cost.

Comparatively, at September 30, 2023 , FutureFuel held 4.2 million RINs with a fair market value of $ 6,971 and no cost and at December 31, 2023 4.3 million RINs were held with a fair market value of $ 6,567 and no cost.

As of March 31, 2025 , FutureFuel held 2.3 million RINs with a fair market value of $ 2,077 and no cost.

Comparatively, at March 31, 2024 , FutureFuel held 2.0 million RINs with a fair market value of $ 1,624 and no cost and at December 31, 2024 , 3.1 million RINs were held with a fair market value of $ 1,831 and no cost.

These fair values are considered Level 1 inputs.

Summary of business by segment

Three Months Ended September 30,

Nine Months Ended September 30,

Custom chemicals

Performance chemicals

Chemical revenue

Biofuel revenue

Total Revenue

Segment gross profit (loss)

Total gross profit

Operating expenses

(Loss) income from operations

Three months ended March 31, 2025

Cost of goods sold

Segment gross loss

Reconciliation of Segment gross loss to Net loss before income taxes:

Selling, general, and administrative expenses

Research and development expenses

Other income, net

(Loss) income before taxes

Depreciation is allocated to segment cost of goods sold based on plant usage.

The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.

Net loss before income taxes

Notes to Consolidated Financial Statements of FutureFuel Corp.

(Dollars in thousands, except per share and per gallon amounts)

Three months ended March 31, 2024

Cost of goods sold

Segment gross profit

Reconciliation of Segment gross profit to Net income before income taxes:

Selling, general, and administrative expenses

Research and development expenses

Other income, net

Net income before income taxes

Depreciation is allocated to segment cost of goods sold based on plant usage.

LEGAL MATTERS

1 unchanged sentence

While FutureFuel is unable to predict the outcomes of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows.

During the three months ended June 30, 2024, the Company resolved a prior-year legal dispute which resulted in a cash payment of $ 2,750 to FutureFuel which is reflected in Other (expense) income in the Consolidated Statements of Operations and Comprehensive Income in the nine months ended September 30, 2024.

SUBSEQUENT EVENTS

The Company evaluated subsequent events that would require an adjustment to the Company’s consolidated financial statements or require disclosure in the notes to the consolidated financial statements through the date of issuance of the consolidated financial statements.

Where applicable, the notes to these consolidated financial statements have been updated to discuss significant subsequent events which have occurred .

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-Q

Item 1. Financial Statements