What changed in this filing

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Item 1. Financial Statements

2025-11-10 compared with 2025-08-11 · 106 added, 93 removed, 342 unchanged (37% of the section changed)

3 unchanged sentences

(Dollars in thousands)

June 30, 2025

September 30, 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 $ 29 and $ 29 , respectively

10,946 21,896

Inventory, net

28 unchanged sentences

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, 43,803,243 shares issued and outstanding as of June 30, 2025 and December 31, 2024

Common stock, $ 0.0001 par value, 75,000,000 shares authorized, 43,803,243 shares issued and outstanding as of September 30, 2025 and December 31, 2024

Additional paid in capital

11 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Cost of goods sold

9 unchanged sentences

(Loss) income from operations

Interest and dividend income

Interest income

Interest expense

Other (expense) income

Other income, net

(Loss) income before taxes

Income tax provision

Income tax (benefit) provision

Net (loss) income

5 unchanged sentences

(Dollars in thousands)

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

Stockholders’

4 unchanged sentences

Balance - June 30, 2025

For the Six Months Ended June 30, 2024

Stock based compensation

Balance - September 30, 2025

For the Nine Months Ended September 30, 2024

Stockholders’

Balance - December 31, 2023

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

Cash dividends declared, $2.50 per common share

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

Stock based compensation

- - - 4,330 4,330

Balance - March 31, 2024

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

- - - 9,571 9,571

Balance - June 30, 2024

43,763,243 $ 4 $ 204,820 $ 9,571 $ 214,395

Stock based compensation

Balance - September 30, 2024

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

2 unchanged sentences

(Dollars in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities

5 unchanged sentences

Stock based compensation

Gain on disposal of property and equipment

(Gain) loss on disposal of property and equipment

Noncash interest expense

7 unchanged sentences

Accounts payable – related parties

Income tax payable

Accrued expenses and other current liabilities

15 unchanged sentences

Cash paid for income taxes

Noncash investing and financing activities:

Noncash capital expenditures

Cash paid for interest expense

Change in noncash capital expenditures

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

18 unchanged sentences

Recently Adopted Accounting Standards

Accounting standards updates (“ASU”) No.

Accounting standards update (“ASU”) No.

2023 - 09 Income Taxes (Topic 740 ):

1 unchanged sentence

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.

The amendments in this ASU apply to all entities that are subject to income taxes.

The ASU is effective for years beginning after December 15, 2024, but early adoption is permitted.

2 unchanged sentences

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

The adoption will have an immaterial impact on the Company's financial statements but additional disclosures will be included in the notes to the financial statements for the year ended December 31, 2025.

Accounting Standards Issued Not Yet Adopted as of June 30, 2025

The adoption has an immaterial impact on the Company's financial statements but additional disclosures will be included in the notes to the financial statements for the year ended December 31, 2025.

Accounting Standards Issued Not Yet Adopted as of September 30, 2025

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

5 unchanged sentences

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.

2025 - 06 Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350 - 40 ):

The FASB issued this ASU, which finalizes Proposed ASU No.

2024 - ED400 of the same name, in September 2025.

This ASU aims to address the challenges of applying current internal-use software accounting requirements (which were issued when companies followed a prescriptive and sequential development method) to software developed under more current, incremental and iterative development methods.

This ASU removes all references to a prescriptive and sequential software method, referred to as “project stages”, and requires a company to start capitalizing software costs when management has authorized or committed to funding the project and when it is probable that the project will be completed and the software will perform as intended.

The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods.

Early adoption is permitted as of the beginning of an annual reporting period.

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.

1 unchanged sentence

GOVERNMENT TAX CREDITS

Due to the lack of specific U.S.

GAAP guidance for the following tax credits, the Company elected to follow IAS 20 principles ("Accounting for Government Grants").

Accordingly, the following credits were recognized as a reduction in the cost of goods sold, net of estimated selling expenses.

BIODIESEL BLENDERS' TAX CREDIT

6 unchanged sentences

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 provision.

The benefit of this credit was recognized as a component of income tax provision through December 31, 2024.

On July 4, 2025, the Budget Reconciliation Act of 2025 officially reinstated and extended the Small Producer's Tax Credit through December 31, 2026.

This transferable, nonrefundable credit offers eligible producers—those with a capacity of 60 million gallons or less—$0.20 per gallon on the first 15 million gallons of fuel they produce.

The benefit of this credit was recognized as a reduction in cost of goods sold following IAS 20.

CLEAN FUEL PRODUCTION TAX CREDIT

The Inflation Reduction Act of 2022 (“IRA”) 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 non-aviation fuel.

For producers not meeting the prevailing wage and registered apprenticeship requirements, the maximum credit is $0.20 per non-aviation 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.

Due to the lack of a specific generally accepted accounting principle for the CFPC—a transferable, nonrefundable credit—the company has elected to follow the principles of International Accounting Standard 20 (IAS 20 ), "Accounting for Government Grants and Disclosure of Government Assistance." Accordingly, the credit has been recognized as a reduction in the cost of goods sold, net of estimated selling expenses, which management believes estimates fair value when generated.

In the three and six months ended June 30, 2025, the CFPC was $ 2.5 million.

See Note 13 Subsequent Events, regarding additional information related to the Small Agri-Biodiesel Tax Credit and the CFPC.

The Clean Fuel Production Credit (“CFPC” or §45Z credit), established by the Inflation Reduction Act of 2022 and extended through 2029 by the Budget Reconciliation Act of 2025, is a key incentive for low-emission transportation fuels.

The Company’s biodiesel was approved for the Clean Fuel Production Credit in December 2024.

This transferable, nonrefundable income tax credit uses a sliding scale based on the fuel's greenhouse gas (GHG) emissions.

The Company qualifies for an increased credit above the base of $0.20 per gallon for non-aviation fuel because it satisfies the prevailing wage and apprenticeship requirements.

For the three and nine months ended September 30, 2025, the Company recognized $ 2.5 million in CFPC.

Notes to Consolidated Financial Statements of FutureFuel Corp.

2 unchanged sentences

The majority of revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied.

Certain of the Company's custom chemical contracts within the chemical segment contain a material right as defined by ASC Topic 606, Revenue from Contracts with Customers, from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers.

Certain of the Company's custom chemical contracts within the chemical segment contain a material right as defined by ASC Topic 606 “Revenue from Contracts with Customers”, (“ASC 606” ), from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers.

Each contract also has a performance obligation to transfer products with 30 -day payment terms.

The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up.

If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC Topic 606.

If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC 606.

The Company applies the renewal option approach in allocating the transaction price to these material rights and transfer of product.

1 unchanged sentence

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 and $ 170 for the three months and $ 340 and $ 329 for the six months ended June 30, 2025 and 2024, respectively.

The Company has a short-term, twelve -month lease agreement for its warehouse space.

Lease revenue recognized under this agreement totaled $ 170 and $ 170 for the three months ended September 30, 2025, and 2024, respectively, and $ 510 and $ 499 for the nine months ended September 30, 2025 and 2024, respectively.

Contract Assets and Liabilities:

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

The contract assets at June 30, 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.

The contract assets at September 30, 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 $ 125 and $ 0 for the three months and $ 125 and $ 0 for the six months ended June 30, 2025 and 2024, respectively.

Increases to contract liabilities from cash received or due for a performance obligation of chemical segment plant expansions were $ 0 and $ 0 for the three months and $ 125 and $ 0 for the nine months ended September 30, 2025 and 2024, respectively.

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 $ 80 and $ 797 for the three months and $ 110 and $ 1,603 for the six months ended June 30, 2025 and 2024 , respectively.

Revenue recognized in the chemical segment from the contract liability reductions was $ 61 and $ 936 for the three months and $ 171 and $ 2,539 for the nine months ended September 30, 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

June 30, 2025

September 30, 2025

December 31, 2024

6 unchanged sentences

Transaction price allocated to the remaining performance obligations:

At June 30, 2025 , approximately $ 4,005 of revenue is expected to be recognized from the remaining performance obligations.

The Company 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.

At September 30, 2025 , approximately $ 3,944 of revenue is expected to be recognized from the remaining performance obligations.

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

Approximately 20 % of this revenue is expected to be recognized over the next 12 months, and 80 % is expected to be recognized over the subsequent 51 months.

6 unchanged sentences

Disaggregation of revenue - contractual and non-contractual:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Contract revenue from customers with > one-year arrangements

3 unchanged sentences

Timing of revenue :

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Bill-and-hold revenue

1 unchanged sentence

Total revenue

As of June 30, 2025 and December 31, 2024 , $ 6,309 and $ 7,301 of bill-and-hold revenue had not shipped, respectively.

As of September 30, 2025 and December 31, 2024 , $ 5,902 and $ 7,301 , respectively, of bill-and-hold revenue had not shipped.

The carrying values of inventory were as follows as of:

June 30, 2025

September 30, 2025

December 31, 2024

4 unchanged sentences

Total inventory

There was $ 2,934 liquidation in the six months ended June 30, 2025 primarily from biodiesel related inventories.

A liquidation of $ 435 occurred in the twelve months ended December 31, 2024.

The Company recognized a liquidation of $ 5,083 during the nine months ended September 30, 2025 primarily as a result of lower biodiesel related inventories.

The Company recognized a liquidation of $ 435 during the year ended December 31, 2024.

Notes to Consolidated Financial Statements of FutureFuel Corp.

13 unchanged sentences

Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

In order to manage commodity price risk caused by market fluctuations in biofuel prices, future purchases of feedstock used in biodiesel production, physical feedstock, finished product inventories attributed to the process, and other petroleum products purchased or sold, the Company may enter into exchange-traded commodity futures and options contracts.

The Company accounts for these derivative instruments in accordance with ASC 815 - 20 - 25, Derivatives and Hedging.

In order to manage commodity price risk caused by market fluctuations in feedstock and biofuel prices, future purchases of feedstock used in biodiesel production, physical feedstock, finished product inventories attributed to the process, and other petroleum products purchased or sold, the Company may enter into exchange-traded commodity futures and options contracts.

The Company accounts for these derivative instruments in accordance with ASC Topic 815 - 20 - 25, “Derivatives and Hedging”, (“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.

2 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 $ 617 (including settlements of $ 77 ) and a net gain of $ 450 (including settlements of $ 169 ) for the three and six months ended June 30, 2025 , respectively, and a net gain of $ 1,414 (includin g settlements of $ 836 ) and a net loss of $ 2,050 (including settlements of $ 354 ) for the three and six months ended June 30, 2024 , respectively.

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 $ 171 (including settlements of $ 48 ) and a net gain of $ 621 (including settlements of $ 217 ) for the three and nine months ended September 30, 2025 , respectively, and a net gain of $ 1,947 (includin g 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 , respectively.

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

Asset (Liability)

June 30, 2025

September 30, 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 $ 18 and $ 877 at June 30, 2025 and December 31, 2024 , respectively, and was classified as other current assets in the consolidated balance sheets.

The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of $ 517 and $ 877 at September 30, 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.

3 unchanged sentences

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

June 30, 2025

September 30, 2025

December 31, 2024

4 unchanged sentences

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 with Regions Bank as administrative agent, collateral agent, and syndication agent (as amended, the "Credit Agreement").

The Company entered into an amendment to the Credit Agreement on July 25, 2025, effective as of June 30, 2025, which modified the Consolidated Interest Coverage Ratio to exclude non-cash interest.

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”).

15 unchanged sentences

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 June 30, 2025 or December 31, 2024 .

There were no borrowings under the Credit Agreement at September 30, 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 June 30,

Six Months Ended June 30,

Income tax provision

Three Months Ended September 30,

Nine Months Ended September 30,

Income tax (benefit) provision

$ ( 27 ) $ ( 3 ) $ 14 $ 635

1 unchanged sentence

0.3 % 0.3 % ( 0.0 )% 4.8 %

The Company’s income tax provision for the three and six months ended June 30, 2025, is comprised of an increase in its net deferred tax liability plus immaterial state taxes and miscellaneous items.

The provision for the three months ended June 30, 2024, consists of immaterial state taxes and miscellaneous items.

The provision for the six months ended June 30, 2024 includes immaterial state taxes and, primarily, the initial establishment of the net deferred tax liability reflecting the Company’s determination that its future reversing net deferred tax liabilities would not support full realization of its existing deferred tax assets.

The Company’s income tax (benefit) provision for the three and nine months ended September 30, 2025, is comprised of a decrease in its net deferred tax liability plus immaterial state taxes and miscellaneous items.

The benefit for the three months ended September 30, 2024 consists of immaterial state taxes and miscellaneous items.

The provision for the nine months ended September 30, 2024 includes immaterial state taxes and, primarily, the initial establishment of the net deferred tax liability reflecting the Company’s determination that its future reversing net deferred tax liabilities would not support full realization of its existing deferred tax assets.

The Budget Reconciliation Act of 2025 includes a broad range of U.S.

income tax provisions.

However, based upon the current expectations of how relevant provisions will be applied, it had an immaterial impact on the Company's income tax (benefit) provision for the three and nine months ended September 30, 2025.

The Company continues to evaluate the income tax effects but does not currently expect a material effect to its consolidated financial statements.

EARNINGS PER SHARE

In the three and six months ended June 30, 2025 and 2024 , FutureFuel used the treasury method in computing earnings per share.

We compute earnings per share using the two -class method in accordance with ASC Topic No.

260, “Earnings per Share”, (“ASC 260” ).

The two -class method is an allocation of earnings between the holders of common stock and a company’s participating security holders.

The Company has outstanding Restricted Stock Units (“RSUs”) granted on September 3, 2024, for 750,000 shares which provide the holder with a non-forfeitable right to receive dividends on the full amount, even prior to vesting.

The RSUs, and related dividends, vest in five equal installments on each anniversary of the award date.

These RSUs are considered participating securities and require the use of the two -class method for computing basic and diluted earnings per share (“EPS”), pursuant to ASC 260.

These contingently issuable shares associated with outstanding service-based restricted stock units were not included in the earnings per share calculations for the three -month and nine -month periods ended September 30, 2025 or 2024 as the shares which had vested were not issued.

The vested shares are held in name only per the award grant and held until the earlier of termination of employment under certain circumstances or full vesting at the end of the award period.

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Net (loss) income

Loss allocated to participating securities (RSUs)

Net (loss) income attributable to common stockholders

Weighted average shares outstanding – basic

4 unchanged sentences

Diluted (loss) earnings per share

For the three and six months ended June 30, 2025, 50,000 and 45,000 options to purchase FutureFuel’s common stock were excluded, respectively, in the computation of diluted earnings per share as all options were anti-dilutive.

In the three and six months ended June 30, 2024, 22,000 and 44,000 options, respectively, were excluded as all were anti-dilutive.

In addition, 750,000 restricted stock units (“RSUs”) were issued during the year ended December 31, 2024.

These RSUs, and related dividends, vest in five equal installments on each anniversary of the award date, September 3, 2024.

All of the prorated RSUs were excluded in the computation of diluted earnings per share for the three and six months ended June 30, 2025, as all were anti-dilutive.

There were no RSUs in the comparative periods.

The calculation of diluted EPS in the three and nine months ended September 30, 2025 excludes the effect of incremental shares from the unvested RSUs ( 750,000 shares granted on September 3, 2024) and options to purchase the Company’s stock, as their inclusion would be anti-dilutive due to the reported net loss.

For the three and nine months ended September 30, 2025, 50,000 and 46,667 options to purchase FutureFuel’s common stock were excluded, respectively.

In the three and nine months ended September 30, 2024, 44,000 and 44,000 options to purchase FutureFuel's common stock, respectively, were excluded.

RELATED PARTY TRANSACTIONS

24 unchanged sentences

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 June 30, 2025 , FutureFuel held 0.5 million RINs with a fair market value of $ 604 .

Comparatively, at June 30, 2024 , FutureFuel held 2.1 million RINs with a fair market value of $ 1,055 and at December 31, 2024 , 3.1 million RINs were held with a fair market value of $ 1,831 .

As of September 30, 2025 , FutureFuel held 0.4 million RINs with a fair market value of $ 361 .

Comparatively, at September 30, 2024 , FutureFuel held 5.0 million RINs with a fair market value of $ 2,556 and at December 31, 2024 , 3.1 million RINs were held with a fair market value of $ 1,831 .

The fair value of RINs is considered a Level 1 input and has no cost.

Summary of business by segment

Three months ended June 30, 2025

Six months ended June 30, 2025

Three months ended September 30, 2025

Nine months ended September 30, 2025

$ 15,578 $ 7,111 $ 22,689 $ 41,562 $ 34,338 $ 75,900

2 unchanged sentences

291 280 571 825 963 1,788

Segment gross profit (loss)

Segment gross loss

$ ( 4,412 ) $ ( 2,419 ) $ ( 6,831 ) $ ( 8,475 ) $ ( 21,686 ) $ ( 30,161 )

Reconciliation of Segment gross profit (loss) to Net loss before income taxes:

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

Selling, general, and administrative expenses

7 unchanged sentences

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

Three months ended June 30, 2024

Six months ended June 30, 2024

Three months ended September 30, 2024

Nine months ended September 30, 2024

$ 17,928 $ 33,212 $ 51,140 $ 55,223 $ 126,607 $ 181,830

2 unchanged sentences

164 405 569 569 1,507 2,076

Segment gross profit

Segment gross profit (loss)

$ 3,407 $ ( 3,024 ) $ 383 $ 12,105 $ 1,942 $ 14,047

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

Reconciliation of Segment gross profit (loss) to Net (loss) income before income taxes:

Selling, general, and administrative expenses

3 unchanged sentences

( 1,690 ) ( 8,580 )

Net income before income taxes

Net (loss) income before income taxes

$ ( 1,198 ) $ 13,341

5 unchanged sentences

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.

On July 4, 2025, the Budget Reconciliation Act of 2025 was signed into law which made significant changes to federal tax law.

The legislation did not affect the Company’s income tax balances as of June 30, 2025.

The most significant provisions affecting the Company include modification to the CFPC, including an extension of the expiration date from December 31, 2027 to December 31, 2029, and rules on foreign based feedstocks as well as affirmation on the transferability of the credits.

In addition, the tax law reinstated the extension of the Small Agri-Biodiesel Producers Tax Credit.

This tax credit is $0.20 per gallon on the first 15 million gallons produced for facilities with up to 60 million gallons of capacity eligible for fuel sold after July 1, 2025 and before December 31, 2026.

The Budget Reconciliation Act includes other changes which the Company is evaluating.

The Company continues to experience extremely high feedstock prices resulting in negative profit margins for biodiesel.

As a result, on July 9, 2025, the Company completed a reduction in force of 75 employees following the idling of biodiesel manufacturing given these unfavorable market conditions.

The Company retained employees with expertise to facilitate the restart of biodiesel production upon the return of more favorable market conditions.

The aggregate cost of separation agreements related to the reduction in force are estimated to be approximately $ 386 .

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