What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-11 compared with 2025-11-10 · 92 added, 121 removed, 124 unchanged (63% of the section changed)

5 unchanged sentences

See “Forward-Looking Information” below for additional discussion regarding risks associated with forward-looking statements.

In the first quarter of 2026, the Company elected to change its method of accounting for certain inventories in the U.S.

from last in, first out ("LIFO") to weighted average cost.

The Company believes the change to weighted average cost is preferable because it provides a better matching of costs and revenues, conforms the Company's inventory to a single method of accounting and improves comparability with the Company's peers.

The Company retrospectively applied this change in accounting principle to all prior periods contained herein.

Unless otherwise stated, all dollar amounts are in thousands.

6 unchanged sentences

The biofuel segment is composed of one product group.

Management believes that the diversity of each segment strengthens the company in the ability to utilize resources and is committed to growing each segment.

Within the United States Environmental Protection Agency (“EPA”) Renewable Fuel Standard (“RFS”), we generate 1.5 Renewable Identification Numbers (“RINs”) for each gallon of biodiesel sold in the United States with a classification of a D4 or D6 RIN.

Management believes that the diversity of each segment strengthens the Company in its ability to utilize resources and is committed to growing each segment.

The biodiesel segment was supported by the United States Environmental Protection Agency (“EPA”) Renewable Fuel Standard (“RFS”).

We generate 1.5 Renewable Identification Numbers (“RINs”) for each gallon of biodiesel sold in the United States with a classification of a D4 or D6 RIN.

RINs are used to monitor the level of renewable fuel traded in a given year in accordance with RFS within the EPA moderated transaction system.

We do not assign cost of goods sold to the generation of RINs as the physical fuel generates the full cost.

As of September 30, 2025, we held 0.4 million D4 RINs with a fair market value of $361.

Comparatively, as of September 30, 2024, we held 5.0 million RINs with a fair market value of $2,556.

On June 13, 2025, the EPA proposed a rule to establish RFS volume requirements and percentage standards for 2026 and 2027.

Key changes in the proposal include a potential increase in RINs in biomass-based diesel from 5.36 billion in 2025 to 7.12 billion in 2026 and 2027 and a reduction in the RINs generated for imported or foreign-feedstock-based renewable fuel and the removal of renewable electricity from the program.

Starting in 2026, imported renewable fuel or fuel produced domestically using foreign feedstocks would generate 50% fewer RINs compared to purely domestic renewable fuel.

In addition, the proposed rule would reduce the RIN equivalency factor for renewable diesel from 1.7 to 1.6.

The final rule could materially affect the Company's operations and financial results.

The EPA's final rule is still pending.

On July 4, 2025, the Budget Reconciliation Act of 2025 was signed into law which made modifications to the CFPC.

The Budget Reconciliation Act is expected to help level the competitive environment for biodiesel by:

(i) reducing the tax credit for sustainable aviation fuel (“SAF”) from $1.75 per gallon to $1.00 per gallon effective January 1, 2026;

(ii) requiring that all feedstock for SAF be sourced from North America, as required for biomass based diesel;

and (iii) extending the clean fuel production credit (“CFPC”) for an additional two years through December 31, 2029.

As of March 31, 2026, we held 0.2 million D4 RINs with a fair market value of $298.

Comparatively, as of March 31, 2025, we held 2.3 million D4 RINs with a fair market value of $2,077.

On March 27, 2026, the EPA finalized the “Set 2” RFS volumes establishing the highest blending mandates in the program’s history targeting a 60% increase over 2025.

The EPA estimates the mandate will require roughly 5.3 to 5.4 billion physical gallons of biomass diesel in 2026 and 5.7 to 5.8 billion gallons in 2027.

The rule reduced the RIN equivalency factor for renewable diesel from 1.7 to 1.6 (from a revenue advantage on every gallon sold of 13% to 6%) and further to 1.5 (the same as biodiesel) by 2027 which represents a fundamental shift in the competitive and structural landscape of biodiesel.

To meet the 2027 volume targets, utilization of domestic capacity is expected to be 100%.

The EPA delayed the implementation of the half RIN penalty for imported fuels and feedstocks until January 1, 2028.

On February 4, 2026, the Treasury Department and the Internal Revenue Service issued proposed regulations providing expanded guidance on the clean fuel production credit (“CFPC”) integrating changes from the Budget Reconciliation Act of 2025, which made modifications to the CFPC.

The proposed rule is expected to help level the competitive environment for biodiesel by:

(i) reducing the tax credit for sustainable aviation fuel from $1.75 per gallon to $1.00 per gallon effective January 1, 2026, and (ii) requiring that all feedstock be sourced from North America, as required for biomass-based diesel.

Summary of Financial Results

Set forth below is a summary of certain consolidated financial information for the periods indicated.

Three Months Ended September 30,

Three Months Ended March 31,

As Adjusted (Note 1)

Loss from operations

1 unchanged sentence

Adjusted EBITDA

Nine Months Ended September 30,

(Loss) income from operations

Net (loss) income

(Loss) earnings per common share:

Adjusted EBITDA

We use adjusted EBITDA as a key operating metric to measure both performance and liquidity.

14 unchanged sentences

The following table reconciles net (loss) income, the most directly comparable GAAP performance financial measure, with adjusted EBITDA.

Three Months Ended September 30,

Nine Months Ended September 30,

Net (loss) income

Three Months Ended March 31,

As Adjusted (Note 1)

Non-cash stock-based compensation

1 unchanged sentence

Non-cash interest expense and amortization of deferred financing costs

Loss (gain) on disposal of property and equipment

Unrealized (gain) loss on derivative instruments

Other expense (income)

Income tax (benefit) provision

Gain on disposal of property and equipment

Unrealized loss on derivative instruments

Change in allowance for credit losses

Change in inventory reserve

Extraordinary maintenance costs

Income tax provision (benefit)

Adjusted EBITDA

The following table reconciles cash flows from operations, the most directly comparable GAAP liquidity financial measure, with adjusted EBITDA.

Nine Months Ended September 30,

Net cash (used in) provided by operating activities

Three Months Ended March 31,

As Adjusted (Note 1)

Net cash used in operating activities

Deferred income taxes, net

Interest income, net

Income tax provision

Income tax provision (benefit)

Change in operating assets and liabilities, net

Other expense (income)

Extraordinary maintenance costs

Adjusted EBITDA

Results of Operations

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

As Adjusted (Note 1)

Volume/product mix effect

Gross (loss) profit

Operating expenses

Other income, net

Income tax (benefit) provision

Net (loss) income

Consolidated revenue in the three and nine months ended September 30, 2025, decreased $28,451 and $105,930, compared to the three and nine months ended September 30, 2024, respectively.

This decrease was primarily attributed to continued uncertainty surrounding the CFPC, which negatively and materially impacted the biofuel segment.

In the three months ended September 30, 2025, due to continued weak market conditions, we idled our biodiesel production line and implemented a reduction in force.

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

Gross profit in the three months ended September 30, 2025 , decreased $7,214 as compared to the same period of 2024 , due primarily to reduced throughput from the market conditions noted above.

We proactively took cost reduction measures with the idling of the biodiesel plant inclusive of the reduction in force as previously noted.

Partially offsetting the decrease in gross profit in the current three-month period was the change in the adjustment in the carrying value of our inventory as determined utilizing the last-in, first-out, (“LIFO”) method of inventory accounting.

This adjustment decreased gross profit $358 in the current three-month period as compared to a decrease of $1,456 in the same period of the prior year.

Gross profit in the nine months ended September 30, 2025 , decreased $44,208 as compared to the same period of 2024 , primarily from the reduced throughput given the issues noted above along with increased spend on parts and contract labor for the turnaround and for other plant support assets.

Also reducing gross profit in the current nine-month period was the change in the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting.

This adjustment decreased gross profit $1,190 in the current nine-month period as compared to an increase of $2,441 in the prior nine-month period.

These negative impacts were partially offset by a LIFO inventory liquidation effect of $5,083 in the current period as compared to $444 in the prior year period.

In both nine-month periods, this liquidation was primarily attributed to biofuel inventory.

Income tax provision (benefit)

Consolidated revenue in the three months ended March 31, 2026, increased 82% or $14,414 compared to the three months ended March 31, 2025, driven by two factors

The change in volume and product mix of $10,800 was largely due to growth in the chemical segment's energy market products, specifically supported by a new plant within our facility that became operational in the fourth quarter of 2025 and additional regulatory clarity, supporting an additional contribution from the biofuels segment.

The biofuel segment added $4,147 following regulatory clarity.

Both segments saw improved price variance totaling $3,614, primarily due to the energy market's performance:

Chemicals (+$1,007) and Biofuels (+$2,607).

Gross loss in the three months ended March 31, 2026 , increased $670 as compared to the same period of 2025 .

This variance was primarily driven by two factors:

Derivative activity within the biofuel segment.

Total gains and losses on derivative instruments and changes in fair value of the derivative instruments were a net loss of $11,629 (including settlements of $9,141) for the three months ended March 31, 2026, and a net loss of $166 (including settlements of $93) for the three months ended March 31, 2025.

While the $9,141 in derivative settlements contributed significantly to the gross loss this quarter, these settlement costs are expected to be offset upon the sale of the underlying physical product.

This timing difference often creates a temporary disconnect between realized derivative losses and the eventual revenue recognition of the physical inventory.

Mostly offsetting these gross losses was the improvement in margins in product sold into the chemical energy market and in biodiesel with clarity obtained from the Treasury Department and the EPA on previously mentioned renewable energy regulations.

Operating e xpenses

Operating expenses decreased $367 in the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

The net decrease was from reduced legal and board fees partially offset by increased compensation expense.

Operating expenses increased $1,054 in the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

The increase was from separation compensation (unrelated to any reduction in force) expense in the current period, equity compensation for grants issued in September 2024, increased board fees, and higher research and development expenses.

Operating expenses increased $710 in the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

The net increase was primarily from winter storm Fern freeze repair expenses of $1,357, partially offset by reduced compensation and research and development expenses.

Other income, net

Other income decreased a net $1,309 in the three months ended September 30, 2025, as compared to the same period of 2024 from the reduction of interest income.

Other income, net decreased $932 in the three months ended March 31, 2026, as compared to the same period of 2025 primarily from the reduction of interest income.

In the current three-month period interest income was $298 as compared to $1,237 in the prior period.

Other income decreased a net $5,451 in the nine months ended September 30, 2025, as compared to the same period of 2024 primarily from the receipt of a legal settlement in the prior period of $2,750 and interest income being $2,834 lower.

Income tax provision

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

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

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

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

Since March 31, 2024, the Company’s deferred tax assets have been reduced to zero and an additional net liability has been recognized.

The Company’s income tax provision for the three months ended March 31, 2026, is comprised of immaterial state taxes and miscellaneous items.

The income tax benefit for the three months ended March 31, 2025, was comprised of immaterial state taxes and miscellaneous items.

Chemical Segment

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

As Adjusted (Note 1)

Volume/product mix effect

Gross (loss) profit

Chemical revenue in the three months ended September 30, 2025, decreased 13% or $2,350 compared to the three months ended September 30, 2024.

Revenue from custom chemicals for the three months ended September 30, 2025 totaled $14,457, a net decrease of $866 from the same period in 2024, resulting from lower sales volumes of products sold in the polymer coatings markets of $1,603 and other custom products of $1,060.

Partially offsetting the decrease was a rise in sales volumes of products sold in the energy market of $1,071.

Performance chemicals revenue was $1,121, a decrease of $1,484 from the three months ended September 30, 2024 from lower volumes.

This decrease was driven by reduced volumes of glycerin, a chemically refined by-product of biodiesel, due to the temporary plant shutdown.

Chemical revenue in the nine months ended September 30, 2025, decreased 25% or $13,661 compared to the nine months ended September 30, 2024.

This decline was due to weather related issues that extended the downtime of the plant turnaround, slower production rates as we restarted the plant, and lower sales volumes of products sold into the energy markets.

Revenue from custom chemicals for the nine months ended September 30, 2025 totaled $37,116, a net decrease of $9,217 from the same period in 2024, resulting from lower sales volumes of $9,735 primarily from products sold in the energy markets, and lower price effect of $2,368 from less amortization of deferred revenue.

Performance chemicals revenue was $4,446, a decrease of $4,444 from the nine months ended September 30, 2024 .

This decrease was mostly due to lower sales volumes of glycerin, from reduced production resulting from the plant turnaround and temporary biodiesel plant shutdown.

Gross loss for the chemical segment was $4,412 and $8,475 for the three and nine months ended September 30, 2025.

The gross loss was worsened by $7,819 and $20,580, respectively, compared to the same periods of 2024, primarily driven by higher share of infrastructure fixed costs due to the idled biodiesel plant of $8,344 in the current periods as compared to $2,229 in the comparative prior year periods.

The nine-month loss was further impacted by, (i) reduced throughput during the first quarter of fiscal year 2025, (ii) lower amortization of deferred revenue, and (iii) decreased sales volumes of products sold into energy markets.

Partially offsetting this decrease in the three-month period was a benefit from the change in the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting.

This adjustment decreased gross profit $358 in the current three-month period, as compared to a decrease of $418 in the same period of the prior year.

In the nine-month period, this adjustment contributed to the decrease in gross profit with an increase of $481 in the current nine-month period as compared to an increase of $623 in the prior year period.

Chemical revenue in the three months ended March 31, 2026, increased 110% or $10,267 compared to the three months ended March 31, 2025.

Revenue from custom chemicals for the three months ended March 31, 2026 totaled $13,872, a net increase of $5,463 from the same period in 2025, primarily resulting from higher sales volumes of products sold in the energy market of $4,405.

Performance chemicals revenue was $5,760, an increase of $4,804 from the three months ended March 31, 2025 from sales of a new energy market product brought online in the fourth quarter of 2025.

Gross loss for the chemical segment was $2,519 for the three months ended March 31, 2026, an improvement of $3,496 compared to the same period of 2025.

The improvement was primarily driven by new product revenue sold into the energy market as noted above.

Biofuel Segment

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

As Adjusted (Note 1)

Volume/product mix effect

Gross (loss) profit

Biofuels revenue in the three months ended September 30, 2025 , decreased $26,101 as compared to the same period of 2024 .

This decrease resulted from the temporary idling of biodiesel production due to continued renewable fuel market uncertainty resulting from the lack of clarity regarding the CFPC and other market conditions.

Biofuels revenue in the nine months ended September 30, 2025 , decreased $92,269 as compared to the same period of 2024 .

This decrease resulted from the extended plant turnaround to improve plant reliability and the subsequent temporary idling of production for the reasons stated above and other market conditions.

A significant portion of our biodiesel sold was to three and two major customers in the three and nine months ended September 30, 2025, respectively, as compared to two and three major customers in the three and nine months ended September 30, 2024.

No assurances can be given that we will continue to sell to such major refiners, or, if we do sell, the volume we will sell or the profit margin we will realize.

Biofuels revenue in the three months ended March 31, 2026 , increased by $4,147 compared to the prior-year period.

The upward trend was primarily attributed to enhanced clarity surrounding the CFPC and record-high final renewable volume obligation (“RVO”) levels.

However, these gains were partially offset by lower sales volumes, which were adversely impacted by severe winter weather and geopolitical instability in the fuel markets due to the war with Iran.

A significant portion of our biodiesel sold was to one major customer in the three months ended March 31, 2026, as compared to no major customers in the three months ended March 31, 2025.

No assurances can be given that we will continue to sell to such major refiner, or, if we do sell, the volume we will sell or the profit margin we will realize.

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

2 unchanged sentences

and (iii) the prices we receive from these customers are based upon then-market rates, as would be the case with sales of this commodity to other customers.

Biofuel gross loss was $2,419 in the three months ended September 30, 2025 , a decrease in gross loss of $605 from the comparative period in 2024 .

Reducing gross profit in the current three-month period was the change in the activity of derivative instruments with a realized gain of $48 and an unrealized gain of $123 in the current three-month period as compared to a realized gain of $1,691 and an unrealized gain of $256 in the same period of the prior year.

In addition, gross profit in the current three-month period was not impacted by the change in the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting.

This adjustment decreased gross profit $1,038 in the same period of the prior year.

Biofuel gross loss was $21,686 in the nine months ended September 30, 2025 , a decrease in gross profit of $23,628 from the comparative period in 2024 .

This decrease primarily resulted from reduced sales volumes, stemming from the extended plant turnaround and temporary idling described above.

Partially offsetting these decreases was the net change in the activity of derivative instruments with a realized gain of $217 and an unrealized gain of $404 in the current nine-month period as compared to a realized gain of $1,337 and an unrealized loss of $1,439 in the same period of the prior year.

Further impacting gross profit was the change in the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting.

This adjustment decreased gross profit $1,671 in the current nine-month period as compared to an increase in gross profit of $1,818 in the same period of the prior year.

Lastly, benefiting gross profit was the effect of liquidation of biofuel inventory of $5,083 in the current nine-month period as compared to $444 in the prior year period.

Biofuel gross loss was $13,339 in the three months ended March 31, 2026 , representing an increase of $4,166 compared to the same period in 2025 .

This increased loss was primarily driven by unfavorable shifts in derivative instruments activity.

During the quarter, we recognized a realized loss of $9,141 and an unrealized loss of $2,488, compared to a realized gain of $93 and an unrealized loss of $259 in the prior-year period.

While the $9,141 in derivative settlements significantly impacted the current quarter’s gross loss, these costs are generally intended to be recovered once the underlying physical product is sold.

This timing difference often creates a temporary disconnect between realized derivative losses and the eventual revenue recognition of the physical inventory.

For our derivative activity, we recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets.

4 unchanged sentences

Asset (Liability)

September 30, 2025

March 31, 2026

December 31, 2025

22 unchanged sentences

Revenue from bill-and-hold transactions in which a performance obligation exists is recognized when the total performance obligation has been met and control of the product has transferred.

Bill-and-hold transactions for the three and nine months ended September 30, 2025 and 2024 were related to custom chemicals customers whereby revenue was recognized in accordance with contractual agreements based upon product being produced and ready for use by the customer.

Bill-and-hold transactions for the three months ended March 31, 2026 and 2025 were related to custom chemicals customers whereby revenue was recognized in accordance with contractual agreements based upon product being produced and ready for use by the customer.

These sales were subject to written monthly purchase orders.

1 unchanged sentence

Credit and payment terms for bill-and-hold customers are similar to other custom chemicals customers.

Revenues under bill-and-hold arrangement s were $10,650 and $25,085 for t he three and nine months ended September 30, 2025, respectively.

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

Revenues under bill-and-hold arrangement s were $10,378 for t he three months ended March 31, 2026.

As of March 31, 2026 and December 31, 2025, $5,486 and $5,106 of bill-and-hold revenue had not shipped, respectively.

Liquidity and Capital Resources

Our net cash from operating activities, investing activities, and financing activities for the nine months ended September 30, 2025 and 2024 is set forth in the following table.

Nine Months Ended September 30,

Net cash (used in) provided by operating activities

Our net cash from operating activities, investing activities, and financing activities for the three months ended March 31, 2026 and 2025 is set forth in the following table.

Three Months Ended March 31,

Net cash used in operating activities

Net cash used in investing activities

2 unchanged sentences

Operating Activities

Cash used in operating activities was $1,299 in the nine months ended September 30, 2025, as compared to cash provided by operating activities of $41,415 in the same period of 2024.

This increase in cash used was primarily attributable to the change in net (loss) income resulting in a cash outflow of $50,092.

Also contributing to the current period's increase in cash used was the change in other assets of $4,058, and the change in accrued expenses of $3,309.

Partially offsetting these cash outflows was the change in accounts payable, including accounts payable - related parties, resulting in a cash inflow of $8,454, the change in inventory of $5,848, the change in deferred revenue of $2,492, and the change in accounts receivable, including accounts receivable - related parties, of $1,582.

Cash used in operating activities was $19,996 in the three months ended March 31, 2026, as compared to $5,395 in the same period of 2025.

This increase in cash used was primarily attributable to the change in accounts receivable, including accounts receivable - related parties resulting in a cash outflow of $17,891.

Also contributing to the current period's increase in cash used was the change in accrued expenses and other current liabilities of $2,842.

Partially offsetting these cash outflows was the change in accounts payable, including accounts payable - related parties, resulting in a cash inflow of $4,432, and the change in inventory of $3,359.

Investing Activities

Cash used in investing activities was $14,426 in the nine months ended September 30, 2025, as compared to $10,176 in the nine months ended September 30, 2024.

Cash used in investing activities was $6,321 in the three months ended March 31, 2026, as compared to $4,082 in the three months ended March 31, 2025.

This $2,239 increase in cash used was primarily due to an increase in capital expenditure of $1,384.

Financing Activities

Cash used in financing activities was $8,256 and $117,285 in the nine months ended September 30, 2025 and 2024, respectively, primarily for payments of dividends on our common stock inclusive of a special dividend of $109,408 paid in the prior nine-month period.

Cash used in financing activities was $2,632 and $2,993 in the three months ended March 31, 2026 and 2025, respectively, primarily for payments of dividends on our common stock.

Credit Facility

We have a credit agreement, as amended and restated on February 21, 2025, with a syndicated group of commercial banks for $75,000.

The credit agreement was further amended on July 25, 2025, effective as of June 30, 2025, when the Company entered into an amendment to the credit agreement that provided for non-cash interest expense to be excluded from the Consolidated Interest Coverage Ratio.

We have a credit agreement, as amended and restated on February 21, 2025, and further amended effective as of June 20, 2025, and December 22, 2025, with a syndicated group of commercial banks for $35,000.

The loan is a revolving facility, the proceeds of which may be used for our working capital, capital expenditures, and general corporate purposes.

3 unchanged sentences

We do not believe there will be a need to issue any securities to fund such capital requirements.

Regular cash dividends of $0.06 per share were paid on our common stock in each quarter of 2025 and 2024.

The regular cash dividend amounted to $2,628 and $2,626 in 2025 and 2024, respectively.

The declaration of these regular quarterly cash dividends was made in the three months ended December 31, 2024, and December 31, 2023, respectively.

In addition, on April 9, 2024, we paid a special dividend of $2.50 per share on our common stock which amounted to $109,408.

The declaration of this special dividend was made in the first quarter of 2024.

Regular cash dividends of $0.06 per share were paid on our common stock in each quarter of 2025.

The declaration of these regular quarterly cash dividends was made in the three months ended December 31, 2024.

During the three months ended December 31, 2025, a declaration for cash dividends of $0.06 per share was made for the first quarter of 2026.

The cash dividend in the three months ended March 31, 2026 and 2025, amounted to $2,628 and $2,632, respectively.

During the three months ended March 31, 2026, a cash dividend of $0.01 per share was declared for the second quarter of 2026.

Capital Management

6 unchanged sentences

First, for our biofuel sales, we enter into the purchase and sale of futures contracts and options on futures contracts of energy commodities.

This activity was captured in our consolidated balance sheets at September 30, 2025, and December 31, 2024 as derivative instruments recorded in accordance with ASC 815.

This activity was captured in our consolidated balance sheets at March 31, 2026, and December 31, 2025 as derivative instruments recorded in accordance with ASC 815.

Second, for our biofuel feedstocks, we execute purchase contracts and supply agreements with certain vendors that meet the normal purchase and normal sales exception of ASC 815.

These transactions are recognized in earnings and were not recorded in our consolidated balance sheets at September 30, 2025, or December 31, 2024 to the extent that we are able to apply the normal purchase and normal sales exception of ASC 815.

These transactions are recognized in earnings and were not recorded in our consolidated balance sheets at March 31, 2026, or December 31, 2025 to the extent that we are able to apply the normal purchase and normal sales exception of ASC 815.

The purchase of biofuels feedstock generally involves two risk components:

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis