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Item 1. Business

2026-03-16 compared with 2025-03-31 · 493 added, 386 removed, 29 unchanged (97% of the section changed)

FutureFuel Corp.

(sometimes referred to as the “Company,” “we,” “us,” or “our,” and includes our wholly-owned subsidiaries) is a Delaware corporation, and, through its wholly-owned subsidiary, FutureFuel Chemical Company, manufactures diversified chemical products, bio-based fuel products, and bio-based specialty chemical products.

Unless otherwise stated, all dollar amounts other than per share amounts are in thousands.

We are headquartered in St.

Louis, Missouri, and our manufacturing operations are conducted at our facility in Batesville, Arkansas.

Trading of our common stock on the New York Stock Exchange (“NYSE”) commenced on March 23, 2011, under the symbol “FF”.

During 2024, we distributed normal quarterly cash dividends of $0.06 per share.

We have declared normal quarterly cash dividends of $0.06 per share on our common stock for the calendar year 2025.

Additionally, we paid a special cash dividend of $2.50 per share on our common stock on April 9, 2024, to the holders of record of all the issued and outstanding shares of common stock as of the close of business on March 26, 2024.

Our business is managed in two segments:

(“FutureFuel,” the “Company,” “we,” “us,” or “our,” and includes our wholly-owned subsidiaries) is a Delaware corporation operating primarily through our subsidiary, FutureFuel Chemical Company.

We manufacture a diverse portfolio of inorganic chemicals, bio-based specialty chemicals, and biofuels in our integrated facility in Batesville, Arkansas.

FutureFuel is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “FF”.

Our headquarters are located at our facility in Batesville, Arkansas.

Unless noted otherwise, all financial figures in this report are presented in thousand United States dollars, excluding per-share data.

Financial Highlights & Dividends

We maintained a consistent commitment to returning value to our shareholders.

Distributed quarterly cash dividends totaling $0.24 per share.

Declared an initial quarterly dividend of $0.06 per share for the first quarter of 2026.

Segment Operations

Our operations are organized into two primary segments:

Chemicals and Biofuels.

The chemicals segment manufactures a diversified listing of chemical products that are sold to third party customers.

The majority of the revenues from the chemicals segment are derived from the custom manufacturing of specialty chemicals for specific customers.

We have actively worked to develop our chemicals business with new customers in more diversified growth markets.

As part of that focus on growth, we have introduced procedural updates to our operation to allow our re-entry to the pharma intermediates market.

This capability has been confirmed by third party audits.

Our chemicals business is based on a solid reputation as a technology-driven, highly reliable, and globally competitive chemicals producer.

We retain a strong emphasis on operational excellence, cost control, and efficiency improvements to enable us to compete in the worldwide chemical industry.

With respect to our biofuels segment, our plant's demonstrated capacity is approximately 59 million gallons (“MMgy”).

We produced 45 and 59 million gallons during 2024 and 2023, respectively.

This scale and the design of our plant in Batesville allows us to process a wide variety of feedstocks and continuously achieve high biodiesel yields.

Combined with the synergies of running a shared chemical manufacturing facility, this has allowed us to be consistently successful in a highly competitive market.

Chemicals Segment

Our Chemicals segment is a premier provider of custom manufacturing solutions, serving a diverse portfolio of third-party customers.

By combining high-barrier technical expertise with a sophisticated integrated infrastructure, we deliver mission-critical chemistry at scale.

Strategic Roadmap:

Integration and Market Expansion:

We are aggressively expanding our market footprint through a dual-track strategy of diversification and vertical integration.

Most notably, by backward integrating into the production of key intermediate raw materials, we have secured our internal supply chain while creating the opportunity for a new revenue stream through external sales.

Our growth is anchored by an unwavering commitment to an ingrained culture of safety.

We simultaneously invest in process automation and lean methodologies to enhance manufacturing reliability and throughput.

Competitive Edge:

The Chemicals segment leverages a "moat" built on technical complexity and cost leadership.

As a premier integrated manufacturing site, we offer a unique value proposition that balances sophistication with fiscal discipline.

Our facility is equipped to handle intricate chemical syntheses, providing customers with superior quality and technical precision.

Through rigorous operational excellence and proactive cost management, we provide a high-quality, low-cost manufacturing environment that remains resilient in a fluctuating global marketplace.

Our scale allows partners to achieve significant production efficiencies, reducing their time-to-market and overall supply chain risk.

Biofuels Segment

This segment leverages chemical manufacturing know-how with cost effective infrastructure to produce biodiesel (fatty acid mono-alkyl esters) sustainable fuel solutions.

Capacity & Production:

Our facility has a demonstrated capacity of approximately 59 million gallons per year (“MMgy”).

In 2025, the plant had limited throughput of biodiesel due to the absence of regulatory guidance regarding certain government support for the sustainable fuel industry.

In 2025, we produced 9 million gallons, following a 2024 output of 45 million gallons.

Operational Synergy:

Our plant design supports a wide variety of feedstocks ensuring high yields.

By sharing infrastructure with our chemical operations, we benefit from significant cost synergies that allow us to thrive in a competitive landscape.

NARRATIVE DESCRIPTION OF OUR BUSINESS

Principal Executive Offices

Our principal executive offices are located at 8235 Forsyth Blvd., 9th Floor, Clayton, Missouri 63105.

Our telephone number is (314) 854-8352.

FutureFuel Chemical Company’s principal executive offices are located at 2800 Gap Road, Highway 394 South, Batesville, Arkansas 72501-9680.

FutureFuel Chemical Company's telephone number is (870) 698-3000.

Plant Location

We own approximately 2,200 acres of land six miles southeast of Batesville in north central Arkansas.

Approximately 500 acres of the site are occupied with our manufacturing facilities, laboratories, and associated infrastructure, including on-site liquid hazardous and non-hazardous waste treatment.

Land and infrastructure are available to support expansion and business growth.

For the year ended December 31, 2024, approxima tely 67% of our rev enue was derived from biofuels, 29% from manufacturing specialty chemicals for specific customers (“custom manufacturing”), and 4% of revenues from multi-customer specialty chemicals (“performance chemicals”).

Our biofuels business segment primarily involves the production and sale of biodiesel and petrodiesel blends.

Our custom chemicals manufacturing involves producing unique products for strategic customers, generally under long-term contracts.

The custom chemicals manufacturing portfolio includes biocides intermediates, specialty polymers, dyes, stabilizers, oil and gas, and chemicals intermediates.

Our performance chemicals product portfolio includes polymer modifiers that enhance stain resistance and dye-ability of nylon and polyester fibers, in addition to several small-volume specialty chemicals and solvents for diverse applications.

We are committed to growing and adapting our biofuels and chemicals businesses.

For the biofuels business segment, we will continue to leverage our technical capabilities and quality certifications, secure local and regional markets, and expand marketing efforts to fleets and regional/national customers.

For our chemicals segment, we intend to pursue development and commercialization of new products, including building block chemicals and intermediate chemicals requiring Good Manufacturing Practices (“GMP”).

GMP is a recognized and auditable system ensuring products are produced consistently and controlled according to strict quality standards.

It covers all aspects of manufacturing, facilities, equipment, and training utilizing detailed written procedures affecting the quality and consistency of the finished product.

GMP complements the Company’s current and active quality registrations, including ISO 9001 and BQ9000, and will benefit our custom chemicals business.

GMP will open growth opportunities for the Company to serve customers active in the pharmaceutical intermediates, food ingredients, and other fine chemicals segment.

While pursuing this strategy, we will continue our efforts to establish a name identity for both segments.

Biofuels Business Segment

Biofuel Products

Our biofuels business segment began in 2005 and primarily includes the production and sale of biodiesel.

In addition, we sell petrodiesel in blends with our biodiesel and, from time to time, with no biodiesel added.

Biodiesel is a renewable energy product consisting of mono-alkyl esters of fatty acids.

These esters are typically produced from vegetable oil, fat, or grease feedstocks.

Biodiesel is used primarily as a blend with petrodiesel (usually 5%, commonly referenced as “B5,” to 20%, commonly referenced as “B20,” by volume).

A major advantage of biodiesel is that it can be used in most existing diesel engines and fuel injection equipment in blends up to B20 with no material impact to engine performance.

Biodiesel also benefits from favorable properties compared to petrodiesel (e.g., negligible sulfur content, lower particulate matter, lower greenhouse gas emissions, and a higher cetane number leading to better engine performance and lubrication).

See https://afdc.energy.gov/files/pdfs/30882.pdf .

Our technical and operational competency developed as a supplier of specialty chemicals, inclusive of research and development and analytical laboratory testing, enabled the expansion of a flexible manufacturing process.

Our process can use a broad range of feedstock oils, including, but not limited to, soy oil, cottonseed oil, pork lard, poultry fat, inedible corn oil, yellow grease, inedible tallow, choice white grease, used cooking oil, and beef tallow.

Our Batesville plant produces biodiesel, which is sometimes referenced as “B100.” We offer B100 and biodiesel blended with petrodiesel (B2, B5, B10, B20, B50, and B99 blends) at our Batesville facility and at a short-term leased storage facility in Little Rock, Arkansas.

In addition, we deliver blended product to customers within our region.

Biodiesel Production/Capacity

While biodiesel can be made from various renewable sources, the choice of feedstock to be used at any particular facility is determined primarily by the price and availability of each feedstock variety;

the yield of biodiesel achieved from that feedstock;

and the capabilities of the producer’s biodiesel production facility.

In addition, the chemical properties of the biodiesel (e.g., cloud point, pour point, and cetane number) depend on the type of feedstock.

In the United States, the majority of biodiesel historically has been made from domestically produced crude soybean oil due to its widespread availability and ease of processing.

However, it is also one of the more costly feedstocks on the market.

As a result, the biodiesel feedstock market in the United States transitioned from this expensive first-generation soy feedstock to incorporate alternative second-generation lower-cost, non-food feedstocks, such as waste vegetable oil, tallow, and inedible corn oil.

Our ability to efficiently manage the co-products and waste products associated with these more challenging feedstocks and still achieve excellent yields and processing rates has allowed us to remain competitive.

Demand for second-generation feedstocks has increased substantially as they are also used to produce renewable diesel which has lower marginal costs than conventional biodiesel production and can also be used as a direct substitute for petrodiesel.

Our continuous production line can produce biodiesel from this wide range of feedstocks, allowing for maximum flexibility in feedstock selection.

Our plant has a demonstrated production capacity of 59 MMgy.

Legislative Incentives

Biodiesel production and use in the United States continues to be heavily influenced in large part by legislative initiatives at both the federal and state levels.

Federal Renewable Fuels Mandate

The largest incentive program at this time is the federal mandate enacted by Congress as part of the Energy Policy Act of 2005 (the “2005 Act”).

The 2005 Act included several provisions intended to spur the production and use of biodiesel.

In particular, the 2005 Act’s provisions included biodiesel as part of the minimum volume (i.e., a mandate) of renewable fuels (the “renewable fuels standard” or “RFS”) to be included in the nationwide gasoline and diesel pool.

The volume, which is intended to increase each year, began at four billion gallons per year in 2006.

The 2005 Act required the Environmental Protection Agency (the “USEPA”) to publish “renewable fuel obligations” applicable to refiners, blenders, and importers in the contiguous 48 states.

The renewable fuel obligations are expressed in terms of a volume percentage of gasoline sold or introduced into commerce and consist of a single applicable percentage that applies to all categories of refiners, blenders, and importers.

The renewable fuel obligations are based on estimates that the Energy Information Association provides to the USEPA on the volumes of transportation fuels it expects will be sold or introduced into commerce.

The USEPA released the final rules to implement the RFS on April 10, 2007.

Under those rules, the RFS compliance period began on September 1, 2007.

No differentiation was made among the various types of renewable fuels (e.g., biodiesel or ethanol).

On December 19, 2007, the Energy Independence and Security Act of 2007 (the “2007 Act”) was enacted which, among other things, expanded the RFS (“RFS2”).

Prior to the enactment of the 2007 Act, the RFS requirement was mostly filled by ethanol.

In contrast to the 2005 Act, the 2007 Act provided a renewable fuel standard carve-out specifically applicable to biodiesel.

On July 1, 2010, RFS2’s biodiesel requirement became effective, thus requiring that a certain percentage of the diesel fuel consumed in the United States be made from renewable sources.

The biomass-based diesel mandate rose annually and reached 2.43 billion gallons per year in 2021.

On June 21, 2023, USEPA finalized a package of actions setting biofuel volumes for the Renewable Fuel Standard (RFS) program for the years 2023, 2024, and 2025.

The following table shows the finalized volume requirements by the USEPA with a steady growth rate in biomass-based diesel.

Renewable Fuel Volumes (billion Renewable Identification Number ("RINs")*

Cellulosic biofuel

Biomass-based diesel

Advanced biofuel

Renewable fuel

Units for all volumes are ethanol-equivalent, except for biomass-based diesel volumes, which are expressed as physical gallons.

See https://www.epa.gov/renewable-fuel-standard-program/final-renewable-fuels-standards-rule-2023-2024-and-2025.

EPA has not yet set the volume requirements for 2026 which were due by statute on or prior to October 31,2024.

Federal Blenders’ and Producers’ Credits

Biodiesel tax incentives have been provided through various federal statutes, including the 2005 Act and the American Jobs Creation Act, and later, the Emergency Economic Stabilization Act of 2008.

The most important of these is the one dollar per gallon Blenders' Tax Credit (“BTC”) applicable to all biodiesel.

The Inflation Reduction Act of 2022 extended this credit through December 31, 2024.

In August 2022, a new Clean Fuel Production Credit (“CFPC”) was made effective January 1, 2025.

The CFPC consolidated and replaced several fuel related credits that were scheduled to expire at the end of 2024, including credits for the production of biodiesel, agri-biodiesel, renewable diesel, second-generation biofuel, sustainable aviation fuel, alternative fuels, and alternative fuels mixtures.

In contrast to these expiring provisions, which subsidize specific types of low-greenhouse gas (“GHG”) emission fuels, the CFPC is technology neutral and is intended to subsidize the production of any transportation fuel with zero or low GHG emissions.

The CFPC is structured on a sliding scale so that producers become eligible for larger credits as the GHG emissions of the fuels they produce approach zero.

For producers meeting prevailing wage and registered apprenticeship requirements, the maximum credit is $1.00 per gallon of nonaviation fuel and $1.75 per gallon of aviation fuel.

For producers not meeting prevailing wage and registered apprenticeship requirements, the maximum credit is 20 cents per gallon of nonaviation fuel and 35 cents per gallon of aviation fuel.

FutureFuel was approved for the CFPC in December 2024.

There has yet to be definitive guidance on how the CFPC will be interpreted and how it may impact the other market variables that ultimately determine operating margin.

On January 10, 2025, the IRS issued Notice 2025-10 with the purpose of providing initial guidance and solicited comment from the public with a deadline of April 10, 2025, and was to serve as an announcement of forthcoming proposed regulations.

It did not include any reliance language and did not constitute final or binding guidance.

On January 15, 2025, the IRS issued Notice 2025-11 which provided emission rate guidance in support of Notice 2025-10.

We commented on both Notices seeking immediate clarity.

Like the BTC, the small agri-biodiesel credit which provides for an annual tax incentive in the amount of $0.10 per gallon on the first 15 million gallons of qualified agri-biodiesel produced was also extended to December 31, 2024, by the Inflation Reduction Act of 2022 and was not reinstated with the CFPC.

State Incentives

Our review of state statutes reveals that virtually all states provide user or producer incentives for biodiesel, several states provide both types of incentives, and more than 35 states provide incentives to biodiesel producers to build facilities in their states, typically offering tax credits, grants, and other financial incentives.

Arkansas does not offer any producer incentives, but does offer investment incentives.

We are registered in fuel programs in the states of California and Oregon, which incentivize the use of low carbon fuels specific to biomass-based diesel.

We will continue to assess these and other state incentives and determine if we qualify.

We will also stay abreast of regulations and update registrations if eligible.

We will continue to identify and pursue other legislative incentives to support our business.

However, no assurances can be given that we will qualify for any such incentives or, if we do qualify, what the amount of such incentives will be or whether such incentives will continue to be available.

For quality specification purposes, and to qualify for the federal mandate, biodiesel must meet the requirements of American Society for Testing and Materials (“ASTM”) D6751.

This specification ensures that blends up to B20 are compatible with diesel engines and associated fuel system hardware.

See Status and Issues for Biodiesel in the United States , National Renewable Energy Laboratory, Theresa Alleman, Margo Melendez, and Wendy Dafoe et.

All biodiesel manufactured at our Batesville plant is tested in on-site quality control laboratories and confirmed to meet, and typically exceed, the ASTM D6751 standard.

Commercially available biodiesels can contain small amounts of unreacted or partially reacted oils and fats as well as other minor impurities.

The unreacted or partially reacted oils and fats are called glycerides.

In rare instances, the glycerides and other minor components and impurities can clog engine filters.

To address this issue, ASTM D6751 was amended in February 2012 to create two new grades of biodiesel.

2 is essentially the specifications in effect before the amendment.

1 provides for a maximum total monoglyceride content and a maximum cold soak filterability time and, in theory, would be used where the cloud point of Grade No.

2 biodiesel does not provide adequate assurance of quality.

Both grades of biodiesel qualify as “biodiesel” for purposes of the RFS2 mandate.

The Company continues to operate under the most recently published version of ASTM D6751, Standard Specifications for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels.

All biodiesel made in our continuous process meets the more stringent specifications for Grade No.

biodiesel industry created the BQ-9000 program to address quality issues that arose during the early years of the industry.

This program is run by the National Biodiesel Accreditation Committee, which is a cooperative and voluntary program for the accreditation of biodiesel producers and marketers.

The program is a quality system-oriented program that includes standards for storage, sampling, testing, blending, shipping, distribution, and fuel management practices.

Since the creation and adoption of the BQ-9000 program, the quality of biodiesel in the U.S.

market has markedly improved.

Our plant has operated as a BQ-9000 accredited production facility since 2006.

Principal Executive Offices and Facility Location

FutureFuel maintains its principal executive offices in Batesville, Arkansas.

Our 2,200-acre site serves as the hub for our operations, with approximately 500 acres dedicated to:

State-of-the-art manufacturing facilities and laboratories.

Advanced infrastructure, including on-site liquid hazardous and non-hazardous waste treatment.

Ample land reserves to support future business expansion.

Our plant is an International Organization for Standardization (“ISO”) 9001 accredited production facility for both chemicals and biofuels, meeting international standards for quality management systems.

The ISO 9000 family of standards represents an international consensus on good quality management practices.

2 unchanged sentences

It is the only international standard against which organizations can be certified, although certification is not a compulsory requirement of the standard.

Our plant is an ISO 9001 accredited production facility for both chemicals and biofuels.

Renewable Identification Numbers

As noted above, the RFS2 mandates levels of various types of renewable fuels that are to be blended with U.S.

gasoline and diesel fuel by U.S.

refiners, blenders, and importers.

RINs are the mechanism for ensuring that the prescribed levels of blending are reached.

As ethanol and biodiesel is produced or imported, the producer or importer has the responsibility to report the activity in the USEPA’s Moderated Transaction System (“EMTS”) where a series of numbers (i.e., a RIN) is assigned to their product.

Assignment is made according to guidelines established by the USEPA.

Currently, 1.5 RINs are assigned for each gallon of biodiesel produced.

When biofuels change ownership to the refiners, importers, and blenders of the fuel, the RINs are also transferred.

The RINs ultimately are separated from the renewable fuel generally at the time the renewable fuel is blended.

The refiners, importers, and blenders generally use the RINs to establish that they have blended their applicable percentage of renewable fuels during the applicable reporting period.

However, once the RINs are separated from the underlying biofuels (e.g., by blending the underlying biodiesel with petrodiesel), they can also be sold separate and apart from the underlying biofuels.

We generate RINs with our biodiesel.

At times, we sell biodiesel with the RIN attached to the fuel.

If we blend the biodiesel with petrodiesel in blends of B80 or less (e.g., B5 or B20), we can either sell the RINs with our blended biodiesel or we can sell them as a separate, free-standing instrument removed from the biodiesel.

The decision of whether or not to separate the RINs from the blended biodiesel depends on the desires of the customer and market conditions for separated RINs, particularly, market prices.

While biodiesel RINs continue to be traded through market makers, no assurances can be given that a separate market for RINs will be sustained or what value will be realized upon the sale of biodiesel RINs.

A byproduct of the biodiesel process is crude glycerin, which is produced at the rate of approximately 10% by mass of the quantity of biodiesel produced.

Our business produces both crude glycerin and refined glycerin for commercial sales.

Crude glycerin is sold into commercially viable uses for the crude product such as construction materials, agricultural and animal feed, and other applications not requiring high purity.

The price of crude glycerin is impacted by supply and demand balance, energy prices, and prices for other commodities such as corn and soy.

We also refine a large portion of our crude glycerin into a purer form which is used in higher value markets such as specialty chemical production, agricultural formulations, food, pharmaceutical, and/or cosmetic applications.

Our business strives to maximize availability of the higher value refined glycerin based on refining capacity, product specifications, prices, and other market conditions.

Biodiesel Residue

An additional byproduct of the biodiesel production process is biodiesel distillation residue.

This is a relatively low-priced commodity that we aggregate and sell to multiple customers, primarily for use in Bunker C #6 Oil and as an asphalt release agent.

Biodiesel Production Capacity

According to the U.S.

Energy Information Administration (“EIA”), biodiesel production capacity decreased to 1,995 million gallons per year from 2,083 million gallons and renewable diesel and other biofuels increased to 4,580 million gallons from 3,897 million gallons in November 2024 as compared to November 2023, respectively.

With the capacity growth of renewable diesel and other biofuels, the biodiesel industry has continued to show resilience.

https://www.eia.gov/biofuels/update/)

Both biodiesel and renewable diesel have been impacted by the lack of clarity from the U.S.

Treasury Department with respect to the CPFC on the delay of the Renewable Fuel Obligation (“RVO”) for 2026.

The USEPA reports that actual production in January 2025 was significantly lower as compared to January 2024 for both biodiesel (68.7 million gallons versus 160.6 million gallons, respectively) and renewable diesel (175.9 million gallons versus 200.9 million gallons, respectively).

However, sustainable aviation fuel (“SAF”) production increased during the same time frame (16.4 million gallons versus 9.7 million gallons, respectively).

https://www.epa.gov/fuels-registration-reporting-and-compliance-help/spreadsheet-rin-generation-and-renewable-fuel-0)

Even given these challenges, we believe that biodiesel will continue to be a highly competitive, sustainable, renewable fuel as long as the approved RFS pathways continue to be eligible for tax credits.

Safety First.

We maintain a "safety-first" operational philosophy that protects our human capital and brand equity.

We are dedicated to maintaining a healthy and injury-free workplace.

To benchmark our performance and advance our efforts, we actively participate in leading safety programs, including the American Chemistry Council’s Responsible Care program and the Society of Chemical Manufacturers and Affiliates' Chem Stewards initiative, alongside programs from numerous other safety-focused organizations.

Operations and Revenue Mix

For the year ended December 31, 2025, our revenue was distributed across three primary categories:

Custom Manufacturing (54%):

Producing unique specialty chemicals for strategic customers, typically under long-term contracts (e.g., biocides, specialty polymers, and dyes).

Biofuels (38%):

Producing and selling biodiesel and petrodiesel blends.

Performance Chemicals (8%):

Multi-customer specialty chemicals, such as polymer modifiers for stain resistance and various solvents.

Please see below for additional information regarding these segments and offerings.

Chemicals Segment (62% of Total 2025 Revenue)

Our Chemicals segment is comprised of two distinct business models:

Custom Manufacturing (manufacturing specialty chemicals for specific customers) and Performance Chemicals (multi-customer specialty chemicals).

We operate as a strategic, full-service partner, leveraging our technical expertise and integrated infrastructure to serve a diverse client base.

For both chemical models, we are pursuing development and commercialization of building block chemicals and intermediate chemicals essential to the manufacture of pharmaceuticals.

The manufacture of pharmaceuticals requires compounds produced under ISO certified quality systems as well as compounds produced in accordance with Good Manufacturing Practices (“GMP”).

The manufacture of both non-GMP and GMP products provides the Company with more growth opportunities to serve customers active in the pharmaceutical intermediate, food ingredient, and other fine chemicals segment.

While pursuing this strategy, we continue our efforts to establish a name identity for both chemical business models.

Custom Manufacturing (54% of Total 2025 Revenue)

Custom manufacturing is a service-based business focused on producing unique, proprietary molecules for strategic customers, typically under long-term or multi-year contracts.

Intellectual Property & Confidentiality:

Most products are manufactured under strict confidentiality agreements to protect our customers’ proprietary formulations and intellectual property.

Production Versatility:

Depending on customer needs and volume requirements, we utilize continuous production, dedicated batch, or general-purpose batch models.

Value Proposition:

Our customers prioritize our proven track record in dependability, regulatory compliance, technical agility, and environmental stewardship.

Collaborative Innovation:

Our commercial, engineering, and technology teams work in lockstep with customers to drive continuous process improvements and scale new business opportunities.

We offer a diversified portfolio serving the following markets:

Agrochemicals and Oilfield Chemicals

Industrial Intermediates and Fabric Care

Coatings and Specialty Polymers

Performance Chemicals (8% of Total 2025 Revenue)

Performance chemicals include specialty products available to the open market and sold to multiple customers based on technical specifications for specific end-use applications.

This portfolio includes:

Polymer Modifiers:

Enhancing nylon and polyester for stain resistance and durability.

Specialty Solvents & Surfactants:

Used in industrial and consumer cleaning.

Glycerin Products:

High-purity byproducts refined for diverse specialty applications.

Future Strategy

We have established a robust reputation as a safe, reliable, and technology-driven producer within the global chemical and biofuels markets.

To drive shareholder value and maximize earnings, our strategy focuses on leveraging our integrated infrastructure and technical core competencies to capture high-margin growth opportunities.

Key Strategic Pillars

Operational Excellence and Cost Leadership:

We utilize large-scale batch and continuous production processes, paired with a relentless focus on process improvement.

This enables us to remain cost-competitive—and for certain product lines, cost-advantaged—relative to global competitors.

Integrated Infrastructure Advantage:

Our 2,200-acre site features fully integrated utilities and advanced waste treatment facilities.

This “complete package” approach provides a significant barrier to entry for competitors and a seamless experience for our custom manufacturing partners.

Expansion into Regulated Markets:

By integrating GMP capabilities alongside our existing ISO 9001 and Biodiesel Quality (“BQ”)-9000 certifications, we are positioned to expand into higher-value segments, including pharmaceutical intermediates and food-grade ingredients.

Bio-Based Expertise:

We possess a specialized core competency in the chemical processing of bio-based feedstocks.

As global demand for sustainable products increases, our expertise in specialty chemical synthesis and renewable process development positions us as a preferred manufacturer in green chemistry markets.

Growth and Margin Improvement

We intend to continue to improve operating margins through a disciplined approach to business development:

Customer Diversification:

Actively expanding our footprint across new market segments to reduce historical reliance on legacy contracts.

Strategic Product Mix:

Carefully managing our pipeline with respect to capital efficiency, time-to-market, and the optimal matching of market opportunities to our existing asset base.

Customer Relationship Development:

Transitioning from a transactional supplier to a full-service strategic partner to secure long-term, high-volume manufacturing agreements.

Customers and Markets

Biodiesel and biodiesel blends are currently used in nearly all of the end markets where petrodiesel is used.

Most biodiesel in the United States is consumed in the on-road diesel fuel market, although some is used for off-road purposes such as farming, residential/commercial heating oil, and power generation.

We currently market our biodiesel products by truck and rail directly to customers in the United States.

We also have the capability to load through barge from a terminal in Little Rock, Arkansas.

Through the utilization of liquid bulk storage facilities and barge loading capabilities, we are positioned to market biodiesel throughout the United States predominately for transportation.

For the years ended December 31, 2024, 2023, and 2022, two customers represented approximately 37 % of biofuel revenue (25 % of total revenue), 44% of biofuel revenue (35% of total revenue), and 34% of biofuel revenue (27% of total revenue), respectively.

Significant customers for the years ended December 31, 2024, 2023, and 2022 varied from year to year, and were comprised of five customers.

We do not have long-term contracts with any biofuels customer, but rather sell on the basis of monthly or short-term, multi-month purchase orders at prices based upon then-prevailing market rates.

We do not believe that the loss of any of these customers would have a material adverse effect on our biofuels segment or on us as a whole in that:

(i) biofuels are a commodity with a large potential customer base; (ii) we believe that we could readily sell biofuels to other customers; (iii) the prices we receive from these customers are based upon then-market rates; and (iv) our sales to the customers are not under fixed terms, and the customers have no obligation to purchase any minimum quantities except as stipulated by short term purchase orders.

Renewable diesel continues to be a rapidly growing biofuel competing with biodiesel.

The Company uses a conventional process of transesterification of feedstocks fats, vegetable oils, or waste cooking oils to make biodiesel.

Renewable diesel is produced via hydro-processing of the same feedstocks.

Renewable diesel, unlike conventional biodiesel, meets the fuel specification requirements of ASTM D975 (petrodiesel fuel) and ASTM D396 (home heating oil) and can be used as a direct substitute without requiring the need for petrodiesel blending.

As a result, renewable diesel trades at a premium price to conventional biodiesel based on fungibility with petrodiesel, better cold weather performance and generation of a higher number of RINS on a per gallon basis.

Renewable diesel operational capacity in the US has grown significantly since 2018 and at the end of 2024 was at approximately 4,580 million gallons per year with that figure expected to continue to rise over the next five years.

In 2023, renewable diesel capacity and production surpassed that of conventional biodiesel.

The increases forecasted for renewable diesel capacity will require an increase in the supply chain to meet that demand.

This was also the case in 2018, and new capacity was constructed to meet demand.

As well as being driven by the benefits of the RFS and those of the Californian Low Carbon Fuel Standard (“LCFS”), renewable diesel production is also attractive to U.S.

oil companies as it allows them to repurpose refinery hydro-processing equipment close to existing hydrogen supply facilities that would otherwise be redundant or uneconomical.

In addition to renewable diesel, SAF in the US has grown to a capacity of 16.4 million gallons.

The future of biodiesel will be driven by feedstock availability;

its market price compared to renewable diesel;

and State and Federal regulations and incentives.

We also compete with other producers of biodiesel regionally, nationally, and with foreign imports.

The principal methods of competition in the biodiesel industry are price, supply reliability, biodiesel quality, and RIN integrity, i.e., the degree of confidence the market maintains in the validity of a biodiesel producer’s RINs.

The number of operational biodiesel plants has dropped significantly in the past three years, but these have tended to be smaller, simpler plants with limited access to feedstock.

Additionally, we compete with numerous other smaller producers and emerging renewable diesel and cellulosic based biodiesel technologies.

We cannot give any assurances that renewable diesel fuel, green diesel, natural gas or some other product produced by these or similar competing technologies will not supplant biodiesel as an alternative to conventional petrodiesel.

The manufacturing processes for biodiesel and renewable diesel are inherently different and it would not be economically feasible to retrofit the Company’s operation to produce renewable diesel.

The biodiesel industry also is in competition with the petroleum-based diesel fuel industry.

The biodiesel industry is small relative to the size of the petroleum-based diesel fuel industry, and large petroleum companies have greater resources than we do.

Without government incentives and requirements, it is uncertain how the market would react and what the consequent impact on processing economics would be.

Our chemical products serve a diverse array of end-use markets, including detergents, agrochemicals, automotive, oil and gas, coatings, nutrition, and polymer additives.

While this broad reach provides stability, certain product lines are subject to cyclicality driven by fluctuations in global macroeconomic demand.

Custom Manufacturing Dynamics

In our custom manufacturing segment, our customers are typically the primary brand owners.

Consequently, they maintain control over the key drivers of production demand, including:

Market Development:

The speed and success of their end-product penetration.

Intellectual Property:

The timing of patent expirations and subsequent generic competition.

Sourcing Strategy:

Shifts in their internal or external manufacturing requirements.

Because these factors are outside of our direct control, we may face challenges in maintaining or increasing sales levels for specific custom products if a customer’s strategy or market position shifts.

Three chemical customers each represented greater than 10% of total sales revenue in 2025 for a total of 48%.

No chemical customer represented greater than 10% of total sales revenue in 2024.

The specialty chemicals industry has historically been characterized by high barriers to entry, driven by the concentration of proprietary technology and complex manufacturing capabilities among a limited number of established suppliers.

However, the competitive landscape has evolved as technology and capital investment have shifted globally

Global Competitive Dynamics:

We face intensifying competition from international multinational chemical manufacturers, particularly those based in India and China.

Our competition is generally categorized into two groups:

Large Multinational Corporations:

Competitors that maintain internal specialty chemical divisions.

While these entities possess significant resources, they are often challenged by slower responsiveness and less personalized customer service.

Small Independent Producers:

Boutique firms that may offer agility but frequently lack the necessary technical infrastructure, scale, and financial depth to compete for large-scale strategic contracts.

Our Competitive Advantages:

We compete primarily on the basis of price, quality, technical innovation, and reliability.

We believe FutureFuel is uniquely positioned for growth by bridging the gap between large-scale capacity and mid-market agility.

Key differentiators include:

Scale and Infrastructure:

Our expansive manufacturing footprint and integrated on-site utilities and wastewater treatment allow for cost-efficient, large-scale production.

Technical Sophistication:

Our ability to handle complex chemical syntheses and maintain rigorous ISO and GMP standards sets us apart from smaller producers.

Operational Reliability:

A proven reputation for responsiveness and consistent delivery, which is a critical factor for brand owners in the custom manufacturing space.

Financial Strength:

A solid balance sheet that provides the stability required to invest in long-term customer partnerships and facility upgrades.

Supply and Distribution

As a result of our feedstock-flexible process, we can source feedstock from a broad supplier base, which includes degummed soy oil, distilled corn oil producers, reclaimed used cooking oil, and pork, chicken, and beef rendering facilities from both national and regional suppliers.

Crude corn oil has been sourced from several national and regional producers.

All feedstocks are currently supplied by either rail or truck.

As discussed in the previous section, sourcing supplies of economically attractive feedstocks is becoming increasingly competitive.

We sell biodiesel from our plant site as well as ship it to liquid bulk storage facilities for further distribution.

Sales from our plant site are made by railcar and tank truck.

Biodiesel is being delivered by Company-owned tank trucks and common carriers to a liquid bulk storage facility leased by us for distribution there and for further transportation by barge or tank truck.

Our specialty chemicals are generally high-unit-value products sold either in bulk or as low-volume packaged goods.

Due to their high value relative to weight, distribution expenses typically represent a relatively minor component of our total cost structure.

Global Distribution:

Most of our chemical products are sold Free on Board (“FOB”) from our Batesville facility.

This allows for streamlined global distribution to our international customer base.

Raw Material Sourcing:

The raw materials required for our chemical syntheses are high-value components sourced from a diverse, global supplier network.

This ensures we maintain the specific technical standards required for our custom and performance portfolios.

Biofuels Co-products:

Unlike our chemical lines, biofuels co-products (such as glycerin and distillation residue) are recovered directly from our on-site processing.

These materials are primarily distributed to more localized industrial and agricultural markets.

Cyclicality and Seasonality

Biodiesel producers have historically experienced seasonal fluctuations in demand for biodiesel.

Biodiesel demand has tended to be lower during the winter in northern and Midwestern states due to historical concerns about biodiesel’s ability to operate optimally in cold weather as compared to petrodiesel.

This seasonal fluctuation has been strongest for biodiesel made from animal fats and used cooking oils.

Biodiesel made from such feedstocks has a higher cloud point (which is the point at which a fuel begins to gel) than biodiesel produced from vegetable oils, such as soybean, canola, or crude corn oil.

The mandate for biodiesel usage as established by RFS2 may interject an additional seasonal fluctuation in our biodiesel business.

Once the mandate for a calendar year is met, or is anticipated to be met, demand for biodiesel may decrease.

Outlook for the Biodiesel Industry/Our Future Strategy

The passage of the Inflation Reduction Act in August of 2022 extended the BTC through December 31, 2024 and introduced the CFPC effective January 1, 2025.

There has yet to be definitive guidance on how the CFPC will be interpreted and how it may impact the other market variables that ultimately determine operating margin.

Large scale investment in large scale renewable diesel plants competing for the same feedstock pool has put significant pressure on small scale conventional biodiesel producers.

We believe that producers who are proactive in responding to these changes can remain competitive and benefit in this emerging market.

These responses include:

new and improved technologies; alternative feedstocks with higher yields; production scalability and flexibility options; supply chain, distribution and co-location strategies; the sale of RINs separate from the underlying biodiesel; and innovative risk management strategies.

Our future strategy for our biofuels segment is geared towards these responses.

Notwithstanding our future strategy, our continued production of biodiesel may be limited, in part, by our ability to source feedstock given competitive growing renewable diesel markets, or, in a worst-case scenario, eliminated entirely, in the event Congress eliminates the federal mandate of the RFS2.

See “Risk Factors” beginning at page 15 below.

Chemicals Business Segment

Overview of the Segment

Our chemicals segment manufactures diversified chemical products that are sold to third party customers.

This segment comprises two components:

“custom manufacturing” (manufacturing specialty chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals).

Chemical Products

Custom manufacturing involves producing unique products for strategic customers, generally under multi-year or long-term contracts.

Most of these products are produced under confidentiality agreements in order to protect each company’s intellectual property.

This is a service-based business where customers value dependability, regulatory compliance, technical capabilities, responsiveness, quality assurance and control, process improvement, operational safety, and environmental protection.

Our custom manufacturing products are manufactured by continuous production, dedicated batch or general-purpose batch mode depending on the specific product and the volumes required.

Management believes that we are a full-service strategic partner to our key and potential customers in this segment.

Our commercial, engineering and technology teams work collaboratively with our customers to further drive continuous process improvements and with potential customers to deliver new business.

Our plant’s custom manufacturing product portfolio includes products that are used in the coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, dyes, and specialty polymers industries.

Historically, but ending in 2021, our custom manufacturing product portfolio was highly concentrated on two significant legacy products, namely a laundry detergent additive for a leading consumer products company and a proprietary row crop herbicide.

Our current custom manufacturing product portfolio is more diversified into multiple markets including agrochemicals, oilfield chemicals, industrial intermediates, and fabric care markets.

Performance chemicals comprise products which are generally available to the open market and sold to multiple customers.

These products are sold based upon specification and are intended for specific performance in specialty end-use applications determined by the customer.

This portfolio includes a family of polymer (nylon and polyester) modifiers, glycerin products, consumer cleaning products, surfactants, and several small-volume specialty chemicals and solvents for diverse applications.

Future Strategy

We believe we have built a solid reputation as a safe, reliable, cost competitive, and technology-driven chemical producer.

To further build on this reputation, we must continuously increase our focus on maintaining and adding customer relationship development, cost control, operational efficiency, capacity utilization, operational safety, and environmental protection to maximize earnings.

We also believe that the ability to use large-scale batch and continuous production processes and a constant focus on process improvements allows us to compete effectively in the global custom manufacturing market and to remain cost competitive with, and for some products cost-advantaged over, our competitors.

Furthermore, our site’s fully integrated infrastructure facilities, including utilities and waste treatment, provide us with an advantage over many of our competitors, and allow us to provide a complete package of custom manufacturing services.

With GMP capabilities and ISO/BQ certifications, we strengthen our capabilities to grow our business further.

We intend to improve margins in this area of our business by expansion of the customer base in additional market segments, careful management of product mix with regard to size of opportunity, timing to market, capital efficiency and matching of opportunities to assets and capabilities.

We possess a core competency in chemical processing of bio-based feedstocks and expertise in specialty chemical synthesis and process development.

We believe that this positions us favorably as a preferred manufacturer of custom chemicals and sustainable products in growing markets.

While our Chemicals segment benefits from a diversified portfolio, several product lines are subject to cyclicality driven by fluctuations in global energy and agricultural markets.

Market Drivers:

Demand for chemicals utilized in energy exploration and transportation is closely tied to global oil prices.

Similarly, products sold into the agrochemical space are influenced by the pricing of agricultural commodities.

Economic Dynamics:

Profitability within these cycles is determined by broader supply and demand dynamics, while the duration of these cycles is often dictated by shifting global economic conditions.

Despite the inherent sensitivity to these industry-specific cycles, a significant portion of our chemical portfolio—particularly those under long-term custom manufacturing agreements—continues to provide a consistent and stable earnings base.

The nature of our Chemicals segment revenue, which is primarily derived from long-term custom manufacturing agreements, relies on a collaborative planning model rather than a traditional order-book system.

Demand Forecasting:

Our strategic customers typically provide us with rolling monthly or quarterly demand forecasts.

These projections allow us to synchronize our supply chain and optimize the efficiency of our production processes.

Order Structure:

Because these forecasts represent anticipated needs rather than firm, non-cancelable sales orders, they are not categorized as backlog.

Reporting Policy:

Consequently, we do not monitor or report backlog as a metric for assessing future performance, as our revenue realization is more accurately reflected through long-term contract stability and execution against customer forecasts.

Biofuels Segment (38% of Total 2025 Revenue)

Established in 2005, our biofuels segment focuses on biodiesel, a renewable energy product made from fatty acid mono-alkyl esters which are typically produced from vegetable oil, fat, or grease feedstocks.

Production Capabilities

Infrastructure:

Our Batesville plant features a continuous production line with a demonstrated capacity of 59 MMgy.

Feedstock Flexibility:

We can process a wide array of feedstocks, including soy oil, poultry fat, used cooking oil, beef tallow, and choice white grease.

Quality Standards:

All fuel meets the American Society for Testing & Materials (“ASTM”) D6751 standard.

We are a BQ-9000 accredited producer and ISO 9001 certified.

Regulatory Environment

The biofuel industry is heavily influenced by federal mandates:

Renewable Fuel Standard (“RFS2”):

Managed by United States Environmental Protection Agency (the “USEPA”), this program requires specific volumes of renewable fuels to be blended into the United States (“U.S.”) fuel pool.

The discussion of how the USEPA monitors the requirements is discussed below.

We transitioned from the Blenders’ Tax Credit (“BTC”) which expired December 31, 2024 to the Clean Fuel Production Credit (“CFPC”) effective January 1, 2025.

This new technology-neutral credit subsidizes fuels based on their greenhouse gas (“GHG”) emission levels as proposed by the United States Treasury Department (the “U.S.

The table below outlines the finalized and proposed volume requirements established by the USEPA, indicating increased volumes under RFS2 and growth for biomass-based diesel and other renewable fuels.

Renewable Fuel Volumes (billion Renewable Identification Number (“RINs”))

Cellulosic biofuel

Biomass-based diesel*

Advanced biofuel

Renewable fuel

Note on Measurement:

*Biomass-based diesel volumes are expressed in physical gallons.

All other categories are represented in ethanol-equivalent units.

Source & Status:

Data for 2025 is based on the finalized USEPA RFS2 standards.

**Figures for 2026 and 2027 reflect the proposed rule announced by the USEPA on June 13, 2025.

Renewable Identification Numbers (“RINs”)

RFS2 utilizes RINs as a regulatory tracking mechanism to ensure that U.S.

refiners, blenders, and importers meet mandatory renewable fuel blending requirements.

The RIN Lifecycle

When a producer like FutureFuel manufactures or imports biodiesel, we report the activity to the USEPA’s Moderated Transaction System.

The USEPA then assigns a RIN to the product.

Currently, biodiesel is assigned 1.5 RINs per physical gallon.

RINs remain attached to the biofuel as it moves through the supply chain.

When ownership of the fuel passes to refiners or blenders, the associated RINs are transferred as well.

RINs are typically “separated” from the fuel at the point of blending with petrodiesel.

Once separated, the RIN acts as a standalone credit that the blender can use to demonstrate compliance with USEPA mandates or sell on the open market.

Our Strategy for RIN Management

As a biodiesel producer, we generate RINs as an integral part of our production process.

Our approach to selling these credits is flexible and market-driven:

Attached Sales:

We frequently sell biodiesel with the associated RINs still attached to the fuel.

Separated Sales:

In instances where we blend the biodiesel with petrodiesel (at ratios of B80 or less, such as B5 or B20), we have the option to separate the RINs from the fuel.

We can then sell the fuel and the RINs as distinct products.

Decision Factors:

The choice to separate or attach RINs depends on specific customer requests and prevailing market prices for separated credits.

While RINs are currently traded through market makers, we cannot guarantee the long-term sustainability of a separate RIN market or the future valuation of these credits upon sale.

Byproducts of Biodiesel Production

The manufacturing of biodiesel generates valuable secondary products, primarily glycerin and distillation residue, the sale of which contribute to our overall revenue stream.

Glycerin is a natural byproduct of the transesterification process used in biodiesel production, generated at a rate of approximately 10% by mass of the total biodiesel produced.

We manage this byproduct in two ways:

Crude Glycerin:

This unrefined product is sold for industrial and agricultural applications that do not require high purity, such as construction materials and animal feed.

Its market price is generally sensitive to supply and demand of energy and agricultural commodities like corn and soy.

Refined Glycerin:

To capture higher margins, we process a significant portion of our crude glycerin into a high-purity form of glycerin.

This refined glycerin serves premium markets, including specialty chemical production and agricultural formulations.

Our strategy is to maximize the production of refined glycerin whenever refining capacity and market pricing provide a favorable return.

Biodiesel Residue

The final stage of the biodiesel production process leaves behind a distillation residue.

While this is a lower-value commodity, we aggregate and market it to various industrial customers.

Its primary applications include use as:

an additive for Bunker C #6 fuel oil;

a specialized asphalt release agent used in road construction.

2025 Biodiesel Market & Production Trends

Data from the U.S.

Energy Information Administration (“EIA”) highlights a shifting landscape in the biofuels sector.

As of late 2024, domestic biodiesel production capacity saw a slight contraction, decreasing to 1,995 MMgy from 2,083 MMgy the previous year.

Conversely, capacity for renewable diesel and other biofuels experienced robust growth, surging to 4,580 MMgy from 3,897 MMgy.

Despite the rapid expansion of renewable diesel, the conventional biodiesel industry continues to demonstrate significant operational resilience.

Current Industry Challenges and 2025 Performance

The industry faced a complex start to 2025, largely due to regulatory ambiguity.

The lack of timely guidance from the U.S.

Treasury regarding the CFPC, combined with delays in finalized Renewable Fuel Obligations (“RVO”) for 2026, created a cautious market environment.

According to USEPA reporting, these factors contributed to a sharp year-over-year decline in production volumes during the first month of 2025:

Jan 2024 Production

Jan 2025 Production

160.6 Million Gallons

68.7 Million Gallons

Renewable Diesel

200.9 Million Gallons

175.9 Million Gallons

Sustainable Aviation Fuel (SAF)

9.7 Million Gallons

16.4 Million Gallons

US EPA RIN Generation Summary

While biodiesel and renewable diesel volumes softened in early 2025, Sustainable Aviation Fuel (“SAF”) emerged as a growth leader, nearly doubling its output in the same period while it enjoyed a higher CFPC during 2025 which was reduced effective January 1, 2026 to the same level of credit as biodiesel and renewable diesel.

Customers and Markets

Our chemical products are used in a variety of markets and end uses, including detergent, agrochemical, automotive, oil and gas, coatings, nutrition, and polymer additives.

Some of the chemical products can be cyclically driven by changes in general demand factors.

In the case of our custom manufacturing business, the customers are typically the brand owners and, therefore, they control factors related to production demand, such as market development, patent expirations and their external manufacturing strategy.

In such cases, we may be unable to increase or maintain our level of sales revenue for these products.

No chemical customer represented greater than 10% of total sales revenue in 2024 or 2023.

Historically, there have been significant barriers to entry for competitors with respect to specialty chemicals, primarily due to the fact that the relevant technology and manufacturing capability has been held by a small number of companies.

As technology and investment have increasingly moved outside of North America, competition from international multi-national chemical manufacturers has intensified, primarily from manufacturers in India and China.

We compete with these and other producers primarily based on price, customer service, technology, quality, and reliability.

Our major competitors in this segment include large multi-national companies with internal specialty chemical manufacturing divisions and smaller independent producers.

The international multi-national competitors are often disadvantaged by poor responsiveness and customer service, while the small producers often have limited technology and financial resources.

We believe that we are well positioned for growth due to the combination of our scale of operations, technical capabilities, on-site utilities and wastewater treatment, reputation, and financial strength.

Market Reach and Applications

Biodiesel and its various blends serve nearly all traditional petroleum diesel end markets.

In the United States, consumption is primarily driven by the on-road transportation sector.

However, our products are also utilized in significant off-road applications, including:

Powering farming equipment.

Residential and commercial heating oil.

Stationary power generation.

Logistics and Distribution

We maintain a robust distribution network to reach customers across the United States.

Our logistics capabilities include:

Direct Transport:

Shipping via truck and rail directly from our facilities.

Barge Access:

Utilizing a terminal in Little Rock, Arkansas, for waterborne shipments.

Strategic Storage:

Leveraging liquid bulk storage facilities to ensure a consistent supply for the domestic transportation market.

Customer Concentration and Sales Strategy

Our biofuel sales are characterized by a varying but occasionally concentrated customer base.

The following table details the revenue concentration for our top two customers within the Biofuels segment and their impact on total Company revenue.

Biofuel Segment Revenue (Top 2 Customers)

Total Company Revenue (Top 2 Customers)

* During 2024 and 2025, our customer base was more diversified, with significant revenue distributed across five distinct entities rather than concentrated in the top two.

Contractual Framework and Risk Mitigation

We do not typically enter into long-term supply contracts for our biofuels.

Instead, sales are conducted through monthly or short-term purchase orders at prevailing market prices.

We believe the potential loss of any single customer would not result in a material adverse effect on the Company because:

Commodity Demand:

Biofuels have a broad and active global customer base.

Market Fungibility:

Our products can be readily redirected to alternative buyers.

Flexible Terms:

Sales are not tied to fixed-term obligations, and customers have no minimum purchase requirements beyond individual short-term orders.

Market-Based Pricing:

Revenue is consistently aligned with current market rates.

Competition in the Biofuels Sector

Our biofuels segment operates in a highly competitive environment, primarily contending with renewable diesel, other biodiesel producers, and the traditional petroleum industry.

Renewable Diesel and Sustainable Aviation Fuel (SAF)

Renewable diesel has emerged as a significant competitor to conventional biodiesel.

While both utilize similar feedstocks (fats, vegetable oils, and waste oils), their production methods and chemical properties differ substantially:

Production Process:

We utilize transesterification to produce biodiesel.

In contrast, renewable diesel is produced through hydro-processing.

Unlike biodiesel, which is typically blended with petrodiesel, renewable diesel meets ASTM D975 specifications.

This allows it to serve as a 100% direct substitute (“drop-in” fuel) without blending.

Market Advantage:

Renewable diesel often commands a premium price due to its superior cold-weather performance, seamless integration into existing infrastructure, and higher RIN generation per gallon.

Capacity Growth:

renewable diesel capacity reached approximately 4,580 million gallons per year by the end of 2024, surpassing conventional biodiesel production in 2023.

Additionally, SAF capacity has grown to 16.4 million gallons per year.

Competitive Landscape

We compete across regional, national, and international markets based on several key factors:

Price and Reliability:

Maintaining cost-competitiveness and a stable supply chain.

Product Quality:

Ensuring strict adherence to fuel standards.

RIN Integrity:

Maintaining high market confidence in the validity of our generated RINs.

While the number of operational biodiesel plants has declined—primarily affecting smaller facilities with limited feedstock access—we continue to face competition from large-scale producers, foreign imports, and emerging cellulosic technologies.

Industry Risks and Barriers

Technological Shift:

The manufacturing processes for biodiesel and renewable diesel are fundamentally different.

It is not economically feasible to retrofit our existing operations for renewable diesel production.

Petroleum Industry Dominance:

We compete against massive petroleum companies that possess significantly greater financial and operational resources.

Regulatory Reliance:

The economic viability of the biodiesel industry remains heavily dependent on government incentives and mandates.

Without these requirements, the impact on processing economics and market demand remains uncertain.

Supply and Distribution

Specialty chemicals are generally high unit value products sold in bulk, or low-volume packaged form, and for which distribution is a relatively minor component of cost.

Most products are sold free on board (“FOB”) from the Batesville site for distribution globally.

Similarly, raw materials for these products are comparatively higher-value components that are sourced globally.

An exception is the biofuels co-products, which are recovered from local processing.

Feedstock Sourcing and Flexibility

Our production process is engineered for high feedstock flexibility, allowing us to remain agile in a shifting market.

We source raw materials from a diverse, multi-channel supplier base that includes:

Vegetable Oils:

Degummed soybean oil and distilled crude corn oil from national and regional producers.

Waste and Recycled Fats:

Reclaimed used cooking oil.

Animal Rendering:

Pork, poultry, and beef fats (tallow and choice white grease).

All feedstocks are currently delivered to our facility via rail or truck.

As the biofuels industry expands, competition for economically attractive, low-carbon feedstocks has intensified.

Our ability to process a wide variety of these materials is a key factor in mitigating supply risks and managing input costs.

Logistics and Sales Channels

We utilize an integrated distribution network to ensure our products reach customers efficiently across the United States:

Direct Plant Sales:

We fulfill orders directly from our Batesville facility via railcar and tank truck.

Strategic Storage:

Finished biodiesel is transported—using both Company-owned trucks and third-party carriers—to leased liquid bulk storage facilities.

Multi-Modal Distribution:

From these regional hubs, we distribute product via tank truck or barge, allowing us to serve large-scale transportation and fuel-blending markets.

Cyclicality and Seasonality

Some of the chemical products can be cyclical, driven by changes in energy prices and agricultural commodity prices.

For example, demand for chemical products sold into energy exploration and transportation markets is influenced by oil prices.

The use of chemical products in agricultural markets likewise is influenced by agricultural commodity prices.

Supply and demand dynamics determine profitability at different stages of cycles and global economic conditions affect the length of each cycle.

Despite sensitivity to cyclicality in these industries, many of the products in the chemical segment provide stable earnings.

The majority of our chemical revenue is derived from custom manufacturing agreements with specific customers.

These customers generally provide us with forecasts of demand on a monthly or quarterly basis.

These forecasts are intended to enable us to optimize the efficiency of our production processes and generally are not firm sales orders.

As such, we do not monitor or report backlog.

The biodiesel industry is subject to periodic fluctuations driven by both environmental conditions and regulatory cycles.

Weather-Related Seasonality

Historically, biodiesel demand decreases during the winter months, particularly in the Northern and Midwestern United States.

This trend is driven by operational concerns regarding fuel performance in cold temperatures.

Cloud Point Variables:

The “cloud point”—the temperature at which wax crystals begin to form and the fuel starts to gel—varies by feedstock.

Feedstock Impact:

Biodiesel produced from animal fats and used cooking oils typically has a higher cloud point than vegetable-based biodiesels (such as those made from soy or corn oil).

Consequently, demand for these specific blends often softens during colder periods to ensure vehicle performance.

Regulatory Cyclicality

The Renewable Fuel Standard (RFS2) introduces a secondary seasonal layer to our business.

Mandate Fulfillment:

Demand is often tethered to annual blending requirements.

Once the federally mandated volumes for a calendar year are achieved—or when the market anticipates that the mandate will soon be met—buying activity for biodiesel can decrease significantly in the latter part of the year.

Industry Outlook and Strategic Direction

The biofuels landscape is currently navigating a pivotal transition.

With the expiration of the BTC at the end of 2024, the industry has shifted to the CFPC as of January 1, 2025.

While this new credit framework is now in effect, the market continues to seek definitive guidance on its long-term interpretation and its ultimate effect on operating margins.

The Competitive Landscape

Small-scale conventional biodiesel producers currently face significant pressure due to a massive influx of investment into large-scale renewable diesel facilities.

This growth has created intense competition for the same limited pool of feedstocks.

To remain competitive, we believe producers must be proactive.

Key Pillars of Our Adaptability Strategy:

Technological Advancement:

Implementing improved processes and exploring alternative high-yield feedstocks.

Operational Agility:

Maintaining scalability and flexibility in production to respond to market shifts.

Logistical Efficiency:

Optimizing our supply chain and distribution networks, including strategic co-location.

Monetization Strategies:

Leveraging the sale of separated RINs as a standalone revenue stream.

Risk Management:

Utilizing innovative hedging and risk-mitigation tools to protect margins.

Strategic Risks:

While our segment is geared toward these proactive responses, our future production levels remain subject to external forces.

Our ability to operate could be constrained by:

Feedstock Scarcity:

Continued competition from the expanding renewable diesel sector.

Legislative Changes:

In a worst-case scenario, the total elimination of the RFS2 federal mandate by the U.S.

Congress could render production non-viable.

Future Strategy

Despite these short-term headwinds and the lack of regulatory clarity at the start of the year, we remain confident in the long-term viability of our products.

We believe biodiesel will remain a highly competitive and essential component of the renewable fuel mix, provided that established RFS2 pathways remain eligible for federal and state tax incentives.

Intellectual Property

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Our primary strategy regarding our intellectual property portfolio is to appropriately protect all innovations and know-how in order to provide our business segments with a technology-based competitive advantage wherever possible.

In the chemicals business segment, custom manufacturing projects are primarily conducted within the framework of confidentiality agreements with each customer to ensure that intellectual property rights are defined and protected.

In the chemicals business segment, performance chemicals are protected utilizing patents, both United States patents and international patents, or maintained as Trade Secrets.

In the biofuels business segment, innovations and process know-how are vigorously protected as appropriate.

As may be necessary, we will seek to license technologies from third parties that complement our strategic business objectives.

In the Chemicals segment, custom manufacturing projects are primarily conducted within the framework of confidentiality agreements with each customer to ensure that intellectual property rights are defined and protected.

Performance chemicals in the Chemicals segment are protected utilizing patents, both United States patents and international patents, or maintained as trade secrets.

In the Biofuels segment, innovations and process know-how are vigorously protected as appropriate.

As may be necessary, we seek to license technologies from third parties that complement our strategic business objectives.

Neither our business as a whole, nor any particular segment, is materially dependent upon any one particular patent, copyright, or trade secret.

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Substantially all of such research and development expense are related to the development of new products, services, and processes or the improvement of existing products, services, and processes.

Environmental Matters

Various aspects of our operations are subject to regulation by state and federal agencies.

Biofuel and chemical operations are subject to numerous, stringent and complex laws and regulations at the federal, state, and local levels governing the discharge of materials into the environment or otherwise relating to environmental protection.

These laws and regulations may:

require acquisition of permits regarding discharges into the air and discharge of waste waters;

place restrictions on the handling and disposal of hazardous and other wastes; and

require capital expenditures to implement pollution control equipment.

Compliance with such laws and regulations can be costly, and noncompliance can result in substantial civil and even criminal penalties.

Some environmental laws impose strict liability for environmental contamination, rendering a person liable for environmental damages and cleanup costs without regard to negligence or fault.

Moreover, there is strong public interest in the protection of the environment.

Our operations could be adversely affected to the extent laws are enacted or other governmental action is taken that imposes environmental protection requirements that result in increased costs to the biofuels and/or chemical manufacturing industry in general.

The following provides a general discussion of some of the significant environmental laws and regulations that impact our activities.

The federal Comprehensive Environmental Response, Compensation and Liability Act (or “CERCLA”), and analogous state laws, impose joint and several liability, without regard to fault or the legality of the original act, on certain classes of persons that contributed to the release of a hazardous substance into the environment.

These persons include the owner and operator of the site where the release occurred, past owners and operators of the site, and companies that disposed of or arranged for the disposal of hazardous substances found at the site.

Responsible parties under CERCLA may be liable for the costs of cleaning up hazardous substances that have been released into the environment and for damages to natural resources.

Additionally, it is not uncommon for third parties to assert claims for personal injury and property damage allegedly caused by the release of hazardous substances or other pollutants into the environment.

The federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (“RCRA”), is the principal federal statute governing the management of wastes, including the treatment, storage and disposal of hazardous wastes.

RCRA imposes stringent operating requirements, and liability for failure to meet such requirements, on a person who is either a generator or transporter of hazardous waste or an owner or operator of a hazardous waste treatment, storage, or disposal facility.

Many of the wastes generated in our manufacturing facility are governed by RCRA.

The federal Oil Pollution Act of 1990 (“OPA”) and regulations thereunder impose liability on responsible parties for damages resulting from oil spills into or upon navigable waters, adjoining shorelines, or in the exclusive economic zone of the United States.

A responsible party may include, but is not limited to, the owner or operator of an onshore facility.

Spill cleanup liability may not apply to the facility if a spill is caused by another party’s gross negligence or willful misconduct.

Responsible parties may be subject to penalties if the spill resulted from violation of a federal safety, construction, or operating regulation, or if a party fails to report a spill or to cooperate fully in a clean-up.

Failure to comply with OPA’s requirements may subject a responsible party to civil, criminal, or administrative enforcement actions via the Water Pollution Control Act.

The federal Water Pollution Control Act (the “Clean Water Act”) imposes restrictions and controls on the discharge of pollutants into navigable waters.

These controls have become more stringent over the years, and it is possible that additional restrictions may be imposed in the future.

Permits must be obtained to discharge pollutants into state and federal waters.

The Clean Water Act provides for civil, criminal, and administrative penalties for discharges of oil and other pollutants and imposes liability on parties responsible for those discharges for the costs of cleaning up any environmental damage caused by the release and for natural resource damages resulting from the release.

Comparable state statutes impose liability and authorize penalties in the case of an unauthorized discharge of petroleum or its derivatives, or other pollutants, into state waters.

The federal Clean Air Act and associated state laws and regulations restrict the emission of air pollutants from many sources, including facilities involved in manufacturing chemicals and biofuels.

New facilities are generally required to obtain permits before operations can commence, and new or existing facilities may be required to incur certain capital expenditures to install air pollution control equipment in connection with obtaining and maintaining operating permits and approvals.

Federal and state regulatory agencies can impose administrative, civil, and criminal penalties for non-compliance with permits or other requirements of the Clean Air Act and associated state laws and regulations.

The federal Endangered Species Act, the federal Marine Mammal Protection Act, and similar federal and state wildlife protection laws prohibit or restrict activities that could adversely impact protected plant and animal species or habitats.

Manufacturing activities could be prohibited or delayed in areas where such protected species or habitats may be located, or expensive mitigation may be required to accommodate such activities.

The Toxic Substances Control Act (“TSCA”) seeks to reduce risks of injury to health, or the environment associated with the manufacture, processing, distribution, use, or disposal of chemical substances.

TSCA requires reporting, record-keeping and testing of certain chemicals and restricts use of some chemical substances and/or mixtures.

Some substances are excluded from TSCA, including food, drugs, cosmetics and pesticides.

Government agencies may initiate regulatory action to label, restrict, or ban a chemical, or to require the submission of additional data needed to determine the risk a chemical may pose.

The statute contains enforcement provisions that include both criminal and civil penalties.

Our policy is to operate our plant and facilities in a manner that protects the environment and the health and safety of our employees and the public.

We intend to continue to make expenditures for environmental protection and improvements in a timely manner consistent with our policies and with the technology available.

In some cases, applicable environmental regulations such as those adopted under the Clean Air Act and RCRA, and related actions of regulatory agencies, determine the timing and amount of environmental costs incurred by us.

We establish reserves for closure/post-closure costs associated with the environmental and other assets we maintain.

Environmental assets include waste management units, such as chemical waste destructors, storage tanks, and boilers.

When these types of assets are constructed or installed, a reserve is established for the future costs anticipated to be associated with the closure of the site based on the expected life of the environmental assets, the applicable regulatory closure requirements, and our environmental policies and practices.

These expenses are charged into earnings over the estimated useful life of the assets.

Currently, we estimate the useful life of each individual asset up to 27 years.

In addition to our general environmental policies and policies for asset retirement obligations and environmental reserves, we accrue environmental costs when it is probable that we have incurred a liability and the amount can be reasonably estimated.

In some instances, the amount cannot be reasonably estimated due to insufficient data, particularly in the nature and timing of the future performance.

In these cases, the liability is monitored until such time that sufficient data exists.

With respect to a contaminated site, the amount accrued reflects our assumptions about remedial requirements at the site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties.

Changes in the estimates on which the accruals are based, unanticipated government enforcement action, or changes in health, safety, environmental, chemical control regulations, and testing requirements could result in higher or lower costs.

Our cash expenditures related to environmental protection and improvement were approximately $11,991, 000, $12,854,000, and $10,268,000 for the years ended December 31, 2024, 2023 and 2022, respectively, and are included in costs of goods sold in the consolidated statements of income for each period.

These amounts pertain primarily to operating costs associated with environmental protection equipment and facilities but also include expenditures for construction and development.

The USEPA recently updated the Miscellaneous Organic NESHAP (“MON”) regulation, 40 CFR Part 63 Subpart FFFF, which governs emissions from organic chemical manufacturing facilities.

To comply with this regulation, we updated equipment monitoring systems, chemical leak detection programs, maintenance programs, vessel pressure relief systems, emission reporting protocols and related procedures.

While we do not expect future environmental capital expenditures arising from requirements of environmental laws and regulations to materially increase our planned level of annual capital expenditures for environmental control facilities, we can give no assurances that such requirements will not materialize in the future.

We believe that we have obtained, in all material respects, the necessary environmental permits and licenses to carry on our operations as presently conducted.

We have reviewed environmental investigations of the properties owned by us and believe, based on the results of the investigations carried out to date, that there are no material environmental issues that adversely impact us.

In connection with our acquisition of our warehouse in Batesville, the seller agreed to remediate certain environmental conditions existing at the facility on the date that we acquired it and to indemnify us with respect to those environmental conditions.

We continue to monitor the seller’s compliance with its remediation obligations.

The Company is a leading provider of renewable fuel and actively works to reduce its carbon footprint.

The Company supports the global movement transitioning to a low-carbon economy and strives to control climate change related costs through process innovation, inventory control, and price indexing.

Energy, transportation, and raw material costs have all been negatively impacted by climate change.

The Company has the ability to treat hazardous and non-hazardous waste on-site.

Over 99% of all generated waste is treated at the facility, eliminating most greenhouse gas emissions associated with transportation of waste, and significantly reducing liability associated with public exposure to waste.

Greenhouse gases may have an adverse impact on global weather patterns and crop production and, therefore, could impact the availability and pricing of raw materials used in biodiesel production.

The Company has developed strategies for coping with seasonal, weather related, and market driven volatility.

These strategies improve the Company’s ability to dampen the impact of climate driven challenges but may not successfully overcome poor market conditions.

Profits may be negatively impacted if the Company is unable to pass along price increases to our customers.

The Company’s chemical segment uses many commodities derived from crude oil feedstock.

These materials are affected by climate change driven policies that regulate petroleum and other energy production industries.

Prices are subject to volatility caused in part by supply and demand, political movements, production difficulties, transportation disruptions, and other world events that may be linked to climate change.

The Company has on-site emergency response equipment, trained personnel, and preparedness plans in place detailing actions needed to cope with the occurrence of severe weather.

The Company’s production location is in an area generally unaffected by hurricanes or floods;

however, changing weather patterns and the increased occurrence of severe weather has the potential to impede raw material supply lines, product distribution, and plant operations.

Key raw materials and spare production equipment are maintained on-site to mitigate the effects of such occurrences.

Management Team and Human Capital

Our executive management team at the Batesville plant consists of individuals with a combined 100 plus years of experience in the chemicals industry, comprising technical, operational, and business responsibilities.

The members of the executive team also have international experience, including assignments in Europe and Asia.

The operational and commercial management group at the Batesville site includes additional degreed professionals with an average experience of more than 30 years in the chemical industry.

Our Batesville workforce comprises approximately 537 full and part time non-union employees, and includes degreed professionals including chemists (some with PhDs) and engineers (including licensed professional electrical, mechanical, and chemical engineers).

Operations personnel have received extensive training and are highly skilled.

Additionally, all site manufacturing and infrastructure is fully automated and computer-controlled.

Due to the lack of locally-available process industry infrastructure, the workforce is substantially self-sufficient in the range of required operational skills and experience.

Voluntary attrition at the site has averaged 10% over the past five years.

Our Batesville operation is also supported by a small commercial team based in our corporate office in Clayton, Missouri.

Available Information

We file annual, quarterly, and other reports, proxy statements, and other information with the SEC.

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers such as us that file electronically with the SEC.

You may access that site at https://www.sec.gov.

Our Internet website address is www.futurefuelcorporation.com.

We make available free of charge, through the “Investors” section of our Internet website (https://futurefuel-corporation.ir.rdgfilings.com), our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (or the Exchange Act), as soon as reasonably practicable after electronically filing such material with, or furnishing it to, the SEC.

We also make available free of charge, through the “Investors - Corporate Governance” section of our website (https://futurefuel-corporation.ir.rdgfilings.com/corporate-governance), the corporate governance guidelines of our board of directors, the charters of each of the committees of our board of directors, and the code of business conduct and ethics for our directors, officers, and employees.

Such materials will be made available in print upon the written request of any shareholder to FutureFuel Corp., 8235 Forsyth Blvd., 9th Floor, Clayton, Missouri 63105, Attention:

Environmental Stewardship and Compliance

We are committed to operating our facilities in a manner that protects the environment and the health of our employees and the public.

A key component of our strategy is the on-site treatment of over 97% of our generated waste, which significantly reduces greenhouse gas emissions otherwise associated with waste transportation.

Environmental Protection Expenditures

Our annual expenditures for environmental protection—including operating costs for pollution control equipment, construction, and development—are reflected in our Cost of Goods Sold:

Total Environmental Expenditures

The decrease in 2025 expenditures primarily reflects reduced waste treatment requirements following the idling of our biodiesel operations due to regulatory uncertainty.

Regulatory Framework

Our chemical and biofuel operations are subject to a complex web of federal and state laws.

Compliance requires significant capital for permits, specialized waste handling, and the installation of pollution control technology.

Core Federal Mandates

Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, et.

seq., as amended (“CERCLA”) (Superfund):

Imposes strict, joint, and several liability for the cleanup of hazardous substance releases, regardless of fault.

Resource Conservation and Recovery Act (“RCRA”):

Governs the “cradle-to-grave” management of hazardous and non-hazardous solid waste.

Clean Air Act:

Restricts emissions and requires pre-operation permits and ongoing monitoring for chemical manufacturing.

Clean Water Act & Oil Pollution Act:

Regulate discharges into navigable waters and impose liability for oil spills or pollutant leaks.

Toxic Substances Control Act of 1976:

Mandates the reporting, testing, and restriction of chemical substances to mitigate health and environmental risks.

Endangered Species Act of 1973:

May prohibit or delay activities in habitats of protected plant or animal species.

Risk Management and Reserves

Liability Accruals:

We accrue environmental costs when a liability is probable and can be reasonably estimated.

These estimates are based on remedial requirements, regulatory discussions, and the financial viability of other potentially responsible parties.

Asset Retirement Obligations:

We maintain reserves for the closure and post-closure costs of environmental assets (e.g., waste destructors, storage tanks, and boilers).

These costs are charged to earnings over the assets’ estimated useful lives, currently projected at up to 27 years.

The prior owner of our Batesville warehouse remains responsible for remediating pre-existing environmental conditions.

We continue to monitor their compliance with these indemnification obligations.

Climate Change and Sustainability

As a provider of renewable fuels, we actively work to reduce our carbon footprint.

We address the rising costs of energy, transportation, and raw materials—driven by climate change—through:

Process Innovation:

Streamlining manufacturing to reduce resource intensity.

Inventory Control:

Optimizing supply chains to minimize waste.

Price Indexing:

Mitigating volatility in climate-impacted markets.

We believe we hold all material permits necessary for our current operations and are not aware of any environmental issues that would result in a material adverse effect on our financial standing.

To ensure operational continuity, the Company maintains robust emergency preparedness plans and on-site response equipment, with personnel specifically trained to manage severe weather events.

While our primary production facility is situated in a region generally insulated from hurricanes and major flooding, we recognize that shifting global weather patterns and the rising frequency of extreme weather could disrupt raw material supply chains, product distribution, and overall plant efficiency.

To mitigate these risks, we maintain strategic reserves of critical raw materials and essential spare production equipment on-site.

Human Capital and Strategic Management

Our competitive advantage is rooted in a highly stable, technically elite workforce and a leadership team with deep global expertise.

The following sections outline the strength of our management and the specialized nature of our operations.

Executive and Management Expertise

The Batesville executive team brings a combined 100+ years of multi-disciplinary experience, spanning technical innovation, large-scale operations, and strategic business management.

This leadership is bolstered by significant international experience, including high-level assignments across Europe and Asia.

Supporting this team is an operational and commercial management group of educated professionals, each averaging more than 30 years of industry experience.

Workforce Composition and Technical Caliber

We employ approximately 493 full- and part-time non-union personnel.

Our staff includes a high concentration of specialized talent, ensuring we remain at the forefront of chemical manufacturing:

Advanced Science:

Our team includes chemists holding PhDs and specialized research degrees.

Licensed Engineering:

We maintain a staff of licensed professional engineers across electrical, mechanical, and chemical disciplines.

Highly Skilled Operators:

Our operations personnel undergo extensive, continuous technical training to manage complex chemical processes safely and efficiently.

Operational Self-Sufficiency and Automation

Because of the unique regional landscape and the absence of local process industry infrastructure, we have cultivated a substantially self-sufficient workforce.

Our team possesses the full range of operational and maintenance skills required to manage our facility mostly independently of external specialized contractors.

To further enhance precision and safety, critical portions of our site manufacturing and infrastructure are automated and computer-controlled, allowing for real-time monitoring and rapid response to operational variables.

The Company remains focused on maintaining its highly automated manufacturing environment through computer-controlled infrastructure.

To maintain the security of our proprietary synthesis formulas and intellectual property, the Company is developing a Responsible Artificial Intelligence (“AI”) & large language models (“LLM”) Governance Policy.

This framework utilizes a 'Responsible AI by Design' philosophy to govern the current individual use of third-party tools while establishing the safety protocols and human-in-the-loop verification standards necessary to evaluate any future application of emerging technologies within our manufacturing or financial systems.

Retention and Stability

Our commitment to our employees is reflected in our strong retention rates.

Despite broader labor market volatility, our voluntary attrition has averaged just 11.7% over the past five years.

This stability ensures that critical institutional knowledge remains within the Company, fostering a reliable and safe production environment.

ACCESS TO COMPANY INFORMATION

We maintain a high standard of transparency by providing the public and our shareholders with timely access to our regulatory filings and corporate governance documents.

SEC Filings and Reports

The Company files annual, quarterly, and current reports, along with proxy statements and other required information, with the SEC.

These electronic filings are available to the public through the SEC’s official website at www.sec.gov.

Online Investor Resources

Our corporate website is located at www.futurefuelcorporation.com .

Through the “Investors” section of our site ( https://futurefuel-corporation.ir.rdgfilings.com ), we provide free access to the following documents as soon as reasonably practicable after they are filed with or furnished to the SEC:

Annual Reports on Form 10-K;

Quarterly Reports on Form 10-Q;

Current Reports on Form 8-K;

Amendments to reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act.

Corporate Governance

We are committed to ethical business practices and strong board oversight.

The following documents are available in the “Investors - Corporate Governance” section of our website:

Corporate Governance Guidelines of our board of directors;

Committee Charters for all standing board committees;

Code of Business Conduct and Ethics applicable to all directors, officers, and employees.

Request for Information

Shareholders may request printed copies of any of the aforementioned materials free of charge by contacting our Investor Relations department in writing:

FutureFuel Corp.

Investor Relations

2800 Gap Road

Batesville, Arkansas 72501

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-K

Item 1. Business