Q3 2020 Aemetis Inc Earnings Call
Welcome to the <unk>.
Yes third quarter 2020 earnings review conference call.
At this time.
Participants trend in listen only mode.
Question and answer session will follow the formal presentation as a.
A reminder, this call is being recorded.
Now my pleasure to introduce your host Mr., Todd Waltz, Executive Vice President and Chief Financial Officer, EPS Aemetis Inc.
Mr. Waltz, you may begin.
Thank you Melinda welcome to the Aemetis third quarter 2020 earnings Review Conference call. We suggest visiting our website at Aemetis Dot Com to review todays earnings press release updated corporate presentation filings with the S. The security and Exchange Commission recent.
Recent press releases and previous earnings conference calls this.
This presentation is available for review or download on the meadows Dot Com home page before we begin our discussion today I'd like to read the following disclosure statements. During today's call, we'll be making forward looking statements, including without limitation statements with respect.
To our future stock performance plans opportunities and expectations with respect to financing activities and the execution of our business plans. These.
These statements must be considered in conjunction with the disclosures and cautionary warnings that appear in our SEC filings investors are cautioned that all forward looking statements made on this call.
Call involve risk and uncertainties and that future events may differ materially from the statements made produced.
For additional information please refer to the company's security and Exchange Commission filings, which are posted on our website or available from the company without charge.
Our discussion on this call will include a review of non-GAAP measures.
As a supplement to financial results based on GAAP, a reconciliation of non-GAAP measures to the most directly comparable GAAP measures is included in our earnings release for the quarter ended September 32020, which is available on our website adjusted EBITDA as defined as net income or loss plus to the extent it.
Ball and calculating such net income.
Interest expense loss on extinguishment income tax expense intangible and other amortization expense accretion expense depreciation expense loss contingency on litigation and share based compensation expense.
Now I'd like to review the financial results for the third quarter.
Definitely 20.
Revenue.
Where revenues were $40.9 million for the third quarter, a 2020 compared to $57.4 million for the third quarter of 2019, driven by a reduction in the price of ethanol and delays in the Indian government oil marketing companies biodiesel bidding process.
Gross profit for the third quarter 2020 was $771000 compared to a gross profit of $4 million during the third quarter 2019.
Selling general and administrative expenses remained flat at $4.6 million during the third quarter 2020 compared to $4.5 million.
First during the third quarter 2019.
Operating loss increased to $3.8 million for the third quarter 2020, compared to an operating loss of $600000 for the third quarter 2019.
Interest expense during the third quarter 2020 was $6.5 million exclusive.
Including accretion in connection with the series a preferred units in the Aemetis bio gas LLC subsidiary compared to $6.3 million during the third quarter 2019.
The Aemetis bio gas LLC subsidiary recognized $1.8 million of accretion in connection with.
The preference payments on his preferred stock units compared to $600 million during the third quarter of 2019.
Net loss was $12.2 million for the third quarter 2020, compared to a net loss of $7.2 million for the third quarter 2019.
Adjusted EBITDA was negative 2.5.
$5 million for the three months ended September 32020.
Cash at the end of the third quarter of 2022 was $79000 compared to $656000 at the end of 2019.
That completes our financial review for the third quarter 2020, now I'd like to.
Use the founder Chairman and Chief Executive Officer of Aemetis, Eric Mcafee for a business update Eric.
Eric Thank you Todd.
Aemetis was founded in 2006, we have grown into four lines of business, which are focused on producing renewable fuels, including low carbon and below zero carbon intensity ethanol biodiesel.
Total waste wood, ethanol and byproducts, including carbon dioxide and corn oil.
Renewable natural gas, including below zero carbon intensity dairy while gas for transportation fuel.
Health safety products, including high grade alcohol refined glycerin blended hand, sanitizer gel and liquid sanitizer wipes and other health safety product.
Alex and technology development to maximize the value of our products and processes.
We own and operate production facilities with more than 110 million gallons per year of capacity in the us in India included in our production portfolio is a 65 million gallon per year high grade alcohol fuel ethanol distillers grain and corn oil plant.
Located in Keyes, California near Modesto, we.
We also build own and operate a 50 million gallon per year capacity refined glycerin and distilled biodiesel by refinery on the East coast of India near the Port City of Concannon.
I encourage you to consider viewing our updated video and slide presentation about emeritus.
Which can be found on the homepage of our web site.
During the third quarter of 2020.
Him as the achieved important milestones toward revenue growth and sustained profitability in each of our four lines of business.
Let's start with a review of our new Aemetis health products business.
In response to a national shortage.
Shortage of hand, Sanitizer, which has recommended by this said centers for disease control to help slow the spread of the Cove in 18 virus.
In late March 2020, the FDA and the TTB issued temporary regulations, allowing fuel ethanol plants to produce alcohol for hand sanitizers risk.
Responding to this approval and the spike in demand for.
Sanitizer products.
Aemetis delivered our first sanitizer alcohol within a few days after the announcement through a post processing arrangement that was formed with the local wine and spirits producer.
Then we installed equipment and process upgrades at our ethanol plant to produce higher quality ethanol for health safety and personal care markets.
We quickly discover.
Did that Aemetis has a sustainable advantage over Midwest ethanol producers they have very high transportation costs and the Amedisys Keyes facility is just a four hour drive to Los Angeles, where most bottlers and co Packers are located in the West coast.
Most Midwest plants were transporting alcohol for sanitizer from the Midwest to California using fuel.
Ethanol trailers and railcars.
Fuel ethanol use as gasoline as a DNA trends in the finished product so producers who use fuel ethanol tankers and railcars were tainting the product with benzene and other dangerous chemicals.
We arranged a 2 million dollar lease purchase of 15, new bulk tanker trailers to view solely for.
For the transport heavy Metis high grade alcohol, allowing us to deliver up to 20 loads per day of our high grade alcohol to west coast lenders of bottlers from our Central Valley plant and eliminating the risk of transportation contamination.
In addition to using new uncontaminated bulk I'll call trailers are California high grade alcohol plant location.
It's about 2000 miles closer to customers in the western United States compared to Midwestern alcohol producers impetus has a permanent transportation cost advantage with western use sanitizer I'll call customers over Midwest ethanol producers due to our California production plant location.
During Q2 2020, we began.
And shipping large quantities of hand, sanitizer alcohol from our plant in California into the rapidly growing health safety and personal care markets.
To expand our product line and support customers in the Us and Canada, We launched the Amedisys health products subsidiary to manage the development production and marketing of our sanitizer products.
Additional.
Finally, our India plant has supplied refined glycerin, a key gradient and sanitizer products into the health products market.
We believe that year to date Aemetis has operated the largest production plant for high quality sanitizer alcohol in the Western US while also owning and operating one of the largest pharma.
Ms Copia grade refined glycerin production plants in Asia.
To expand our market position and maximize margins during the third quarter Aemetis health products filed FDA registrations to obtain national drug codes for our own hand, sanitizer product blends and began the production of Aemetis branded.
Ended gel hand sanitizer.
Our one gallon hand sanitizer sold under the Amedisys brand has been approved by a leading online marketplace and should be shipping soon with additional sizes plans for production.
We market the Amedisys brand to retailers and customers with made in California on the line.
Cable in contrast to imported products from Mexico, and China, many of which were banned by the FDA due to toxic levels of methanol.
We continue to invest in the upgrading of our production facilities that we believe will allow us to deliver us pharma copia grade alcohol, starting in Q2 2021.
Total investment.
And and upgrades for the production and storage of USPI medical grade alcohol is expected to be approximately $15 million of which more than 12 million has already been funded or will be reimbursed by grant funding.
Our expanding product line of high quality and medical grade alcohol use for hand, sanitizer alcohol wipes alcohol sprays and other health.
I'd products is expected to meet the demands of the long term market driven by the adoption of anti viral products by governments schools private industry and consumers.
Even if the COVID-19 virus is as an imminent health safety threat is resolved in the EU us during the.
Next year or two by Neuvax in.
The health and safety standards being widely adopted to reduce the transmission of viruses, including the common flu in Kohl's will expand the ongoing use of alcohol sanitizers as disinfectants.
Especially at schools government buildings offices sports arenas airports still.
Stores and other locations with groups of people in close proximity.
Let's review, our Metis bagasse dairy digester and pipeline project.
At Amedisys, we are focused on significantly reducing the carbon content of our products, thereby maximizing the value of carbon credits under the caf.
California, renewable fuel standard and the value under the federal renewable fuel standard, while reducing operating cost by using waste materials.
Using our own waste products or using waste products in the local area that are generated by the use of the products. We sell the local customers the sustainability of our process could benefit all the parties in the value chain.
An excellent example of this circular bio economy is our dairy renewable natural gas business.
In September 2020, we completed construction of the first two out of 18 dairy biogas biogas digesters in the Amedisys biogas central very dairy project.
Includes.
Alluding onsite dairy biogas cleanup and pressurization, a four mile pipeline owned by Amedisys and a boiler unit at the Keyes plant.
We are now generating below zero carbon intensity renewable natural gas that is being used at our alcohol plant to displace petroleum natural gas.
Methane.
Again, commonly known as natural gas is a potent greenhouse gas that is up to 30 times more powerful than carbon dioxide at capturing Earth heat.
About 25% of California, California's methane emissions come from the waist ponds on dairy farms.
To reduced damaging methane emission.
It's in late 2016, California passed a law, commonly known as Senate Bill 13, 83 that mandates a 40% reduction in methane emitted by large period with unions.
Biomethane source from dairies can be used directly in the form of renewable compressed natural gas to replace gasoline or diesel fuel in cars trucks and.
Buses to significantly reduce carbon emissions and air pollution.
To support the state mandate, California, its funded up to $75 million per year of matching grants to dairies to build a biogas digesters and related systems to date Aemetis has applied for or been awarded about $22 million of grants for biogas.
Gas and energy efficiency to support our conversion to low carbon and below zero carbon intensity power to operate our California by refinery and related biogas operations.
We believe that capturing biogas from dairies and converting it into renewable natural gas to generate negative carbon intensity transportation fuel is in.
Excellent way to reduce costs climate change great value for dairies and reduce costs for diesel truck fleets and potential for electric vehicles by conversion of dairy renewable natural gas to electricity for transportation use.
We are uniquely positioned as one of only two ethanol plants in California that can maximize the value of biogas.
We are able to use bio gas in our plant until our planned utility pipeline interconnection and gas upgrading as completed within the next six months and we received a $1 million grant to install our own renewable natural gas fueling system at our Keyes plant for CNG trucks.
After more than a year project.
Development and financing work last year, we announced $30 million of equity financing to build that biogas digesters at the first two dairies in our biogas project.
Our institutional Investor is working with us to expand this funding with $25 million of additional equity funding to complete the totalled 18 dairies within the next 18 months.
We initially signed 18 participation agreements with Aries, the majority, which have now been converted into 25 year land lease and the newer supply agreements we plan to complete construction of the remaining 16 Lagunas Digesters again during the next 18 months.
Immense owns 100% of the common stock of the Amedisys biogas.
Subsidiary.
The dairy biogas project has been funded by preferred stock issuance by the American Medicine Biogas subsidiary to a fund managed by third eye capital, which we expect to expand to $55 million of funding along with grants from state and federal programs.
There is no dilution to Amedisys parent company.
To shareholders for the biogas project and the Medis received 25% of the cash generated by biogas project operations.
The preferred stock is automatically repurchased at three times, the original issuance price using 75% of biogas operating cash flow.
After the preferred preferred stock is redeemed a medis as.
As the sole common shareholders will own 100% of the cash flow and assets of the biogas digester and pipeline system for the remaining balance of the 25 year contracts with dairies.
Let's discuss progress at our California ethanol plant.
The Global club COVID-19 crisis that began during Q1 2020 and.
And caused operational shutdowns shutdowns for many businesses during Q2 and Q3 2020 has also provided challenges to our business pertain.
Protecting the health of our employees, while continuing to operate our California ethanol plant to supply animal feed to more than 75 local dairies occurred during a time period in which the demand for Bob.
Sales in Q2, 2020 decreased significantly due to the steep decline in gasoline consumption during California shelter in place orders.
However.
As the company economy began to open up.
In June fuel ethanol demand, partially recovered during Q3 2020, resulting.
Turning in an 11% increase in ethanol gallons delivered compared to Q2 2020, and an increase in Q3 distillers grain shipments for animal feed.
At Aemetis operates in three of the federal is central critical infrastructures we.
We have been able to continuously operate our California ethanol plant this year in order.
To provide transportation fuel alcohol for Santander products and dairy feed.
By implementing stringent PE and worker safety policies, we were able to continue construction of plant upgrades and building our dairy renewable natural gas project without interruption, despite cobot shutdowns and operating restore.
Restrictions that impacted many other companies in California.
To increase the value of our high grade and fuel ethanol and to reduce the cost of operation of our production plant. We are currently implementing several upgrade projects related to the California plant, including one building two new distillation columns and related systems.
To produce high acuity us pharma copia grade alcohol for Sanitizers known as Us P grade to begin operation in Q2 2021.
Two.
Installing five new stainless steel tanks for USPI and the beverage high grade alcohol storage and load out increasing our surge capacity by more than 250000 gallon.
Sales.
Three completing the installation of a new $7 million zeolite membrane dehydration units from Mitsubishi to reduced natural gas use of the alcohol plant by replacing our molecular sits with electrically powered equipment, which will reduce the carbon intensity of our fuel ethanol and is partially funded by $1.5 million energy.
The efficiency grant.
For adding high efficiency heat exchangers to reduce natural gas you'd use at the alcohol plants reimburse by $1.3 million energy efficiency Grant.
Five installing a solar panel micro grid array with battery backup backup to replace natural gas with solar electricity.
While optimizing energy use throughout the alcohol plant, primarily funded by an $8 million, California Energy Commission Grant sales.
Six designing and building a mechanical vapor compression or MDR system to significantly reduce the trillium natural gas use.
Partially funded by $6 million, California.
The Commission grant.
Seven.
Constructing the dairy biogas digester cluster and pipeline to deliver renewable natural gas to the alcohol plant from the initial two dairies this year with plant expansion to an additional 16 dairies next year, along with an interconnection to the utility gas spot pipeline. This.
And our gas project is scheduled to generate approximately $40 million per year operating cash flow under 25 year, Gary supply contracts as being primarily funded with $55 million of expected automatically redeem preferred equity being issued by the Amedisys biogas subsidiary.
When completed these.
By upgrades are designed to eliminate nearly 85% of the petroleum natural gas use at the alcohol plant saving up to $7 million per year of natural gas and pipeline costs. The.
The California by refinery will primarily operate using high efficiency electric motors and pumps powered by renewable power sources the.
The construction of the $7 million.
Membrane dehydration system financed by Mitsubishi Chemical, Japan, and a $1.5 million energy efficiency Grant is currently in the installation process, but was laid by the COVID-19 crisis due to international travel restrictions and local contractors stopping work under shelter in place orders.
The ethanol the hydro.
Our mission unit is designed to significantly reduce petroleum natural gas unit usage and decrease the carbon intensity of our ethanol and once implemented is expected to generate an estimated $3 million per year increase cash flow.
These projects at the Keyes plant are targeted to significantly reduce carbon intensity by reducing.
Drilling natural gas usage in costs, while increasing the number of California, low carbon fuel standard credits generated each year the potential combined impact of these projects is expected to be more than $20 million per year of increased operating cash flow at the Keyes plant not.
Not including any expanded cash flow from Aemetis health.
In products Sanitizer in health safety products.
Let's review, our biodiesel business in India.
This week, our Universal biofuel subsidiary in India bid on a portion of a newly issued $900 million biodiesel purchase order tender offer I'm, sorry for about 200 million gallons by the three India.
Health government oil marketing companies to be delivered over the next six months.
Our production capacity at the India plant is about 4 million gallons of biodiesel per month.
This large oil marketing companies tender offer is an indication of the rapidly expanding government demand for biodiesel in India to reduce dependence on.
Accorded crude oil the entire production capacity of the approximately five India biodiesel production plants is only about one third of the amount of biodiesel requested to be purchased by the government oil marketing companies signaling to the market that additional biodiesel capacity is needed to make India biofuels consumption goals.
However, importing biodiesel into India is not allowed under the National Biofuels policy. So only domestic production can meet the approximately 1.25 billion gallons per year of biodiesel blending.
In the goal set by the government.
Currently there is about 250 million gallons of India domestic.
Obviously production capacity and we believe that if medis produced and sold largest amount of any operating biodiesel plant in India. During 2020, while the in this industry waited for government oil marketing company purchasing which was delayed for nine months due to the COVID-19 shutdowns in India.
Those.
The global price of diesel has declined along with the price of crude oil the domestic price of diesel in India has remained largely unchanged due to increased India government taxes that offset crude oil price declines.
Since our biodiesel is sold at a price linked to India domestic diesel prices.
Those are biodiesel prices in India have remained steady despite the significant decrease in the price of crude oil the rising cost of feedstock relative to the price accepted by the government oil marketing companies is the primary barrier to operation of our India biodiesel plant at full capacity, which would generate more than $150 million of annual revenue.
Yes.
Due to the coverage related increase in demand the refined glycerin prices received by our India plant have increased in response to the need for hand, sanitizer and other consumer products.
Let's discuss our below zero carbon intensity Cellulosic ethanol project in Riverbanc, California.
We were pleased.
And yet the Aemetis advanced by refinery under development in Burbank, California, near Modesto was name as named as the number one waste to value project in the world by Biofuels Digest, the world's largest daily Biofuels publication.
The California Central Valley has about 1.5 million acres of Allmand, the walnut or.
Thirds allmand rewards have about a 20 year life, and then must be removed, creating about 3 billion pounds per year of waste wood, they're usually burned and large piles in the field. Since there is no market for most of the waste material.
The Metis Riverbanc project earned its number one project ranking.
As a result of our 20 year fixed price low cost Orchard wood waste contract plans.
Planned production of high value of renewable fuel and high grade alcohol from wood waste feedstock as well as valuable fish meal and other byproducts and using the patented lanzatech gas microbe ethanol production technology.
The land sales.
As knowledge he has been in full commercial operation since 2018 at a plant in Asia and additional plants using Lanzatech technology are being built in China, India and Europe.
In order to close the financing for the Riverbanc plant construction, we are completing the final permitting and engineering of the plant required for the negotiation of the.
EPC contract that will include a bonded maximum construction costs.
Riverbanc Cellulosic ethanol plant.
As expected generate more than $80 million of revenue and more than $50 million per year of positive cash flow by.
By producing cellulose ethanol from low cost waste Orchard vineyard and forest would as feedstock.
The circular biweekly bonomy created by the Amedisys Riverbanc waste wood renewable fuels and high grade alcohol plant will provide benefits to the local environment and community by eliminating field burning of the 3 billion pounds per year of waste Orchard Wood in the California Central Valley and will reduce air pollution and improve the health.
Residents, while displacing carbon intensive feedstock with below zero carbon intensity waste orchard wouldn't feedstock.
We can easily use forest waste wood in the Riverbanc plant, which has become a major issue for California, as we create forest waste wood from managing our forests to reduce damaging wild.
Thanks.
Let's wrap up with a quick review of a key milestone achieved by our technology development group and fueling an ethanol engine with waste wood ethanol.
Our technology development team worked with the federally funded joint Bio Energy Institute in Berkeley, California for three years in the development of a process to extract shuttered.
Fires from low cost waste Orchard forest would feedstocks to produce high value Cellulosic biofuels in our corn ethanol plant by displacing expensive and carbon intensive corn starch as feedstock.
$3 million, California Energy Commission Grant was awarded to Jay Bay, and a metis, which parts.
Partially funded the years of collaborative work and lab testing that in Q2 2020 resulted in the production of the first carbon negative fuel ethanol from California, Orchard, what would using ionic liquids.
During the third quarter, our waste wood ethanol was used to fuel the operation of an ethanol engine that generated the same performance and.
Low emissions as traditional ethanol used in the test.
The ethanol the engine technology was originally developed at Stanford University and is a modified diesel engine design that uses ethanol. The engine takes advantage of the high octane content of ethanol to generate about 30% more torque than an engine running.
On diesel while creating almost no particulate emissions and very low emissions since ethanol contains a low level of contaminants compared to petroleum with.
With high cost emissions equipments, such as diesel exhaust fluid required to meet increasing air pollution standards.
The ethanol engine could be more than doubled.
The size I am sorry could more than double the size of the ethanol market in us to 30 billion gallons per year with only a 20% share of the diesel engine market.
Our patent pending alcohol production process innovation allows the sugar component of low cost waste wood to be used to replace corn starch and into existing corn ethanol.
Plant produced to produce both high grade alcohol as well as cellulosic fuel up alcohol that are each currently valued at more than $5 per gallon.
Important importantly, this process innovation to use sugar from waste wood could be implemented at our existing California ethanol plant decreasing the cost of corn feedstock and substantial.
Really increasing the value of our alcohol, we expect to move forward with a pilot plant to extract sugars from locally sourced Orchard forest waste wood, thereby enabling the production of high margin high grade alcohol and say look ethanol at the Keyes plant by displacing corn feedstock.
In summary.
Hey, Matt.
All this has a technology advantage as well as geographic advantages and sanitizer alcohol production.
Is expanding the production of a diversified range of low carbon renewable fuels into attractive markets in California in India.
Generated $6 million of positive cash flow and 120% revenue growth at our India plant during.
In 2019 and is now moving past the government's COVID-19 delays in 2020 to be awarded bids and begin shipping under large government contract for power diesel.
Aemetis has begun the increased.
Profit margins from plant upgrades related to the keys by refinery that began in Q.
Going through 2020 as.
Has completed the first two aemetis bio gas dairy dipped digesters and four line mile pipeline and are now powering our biorefinery with waste dairy biogas.
And our planned deployment of patented renewable fuels process technology at the Riverbanc plant has positioned aemetis to rapidly produce expanding pie.
Cash flow from the production of high grade sanitizer alcohol as well as low carbon clean burning high performance renewable fuels from abundant low cost waste biomass feedstocks.
Matt This is building below zero carbon intensity products that create a sustainable circular bio economy utilizing waste speed.
Paas docs to create valuable products by implementing innovative cross.
Processes.
Now, let's take a few questions from our call participants Linda.
Thank you the floor is now open for questions. If you do have a question. Please press Star then one on your telephone keypad to join the queue if you're using.
Speakerphone, please pick up your handset to provide the best sound quality.
Ladies and gentlemen, if you do have a question or comment. Please press Star then one on your telephone keypad to join the queue.
And first we go to Ed Woo with Ascendiant capital. Please go ahead.
Yes. Thank you can you give us any updates on Wyndham Riverbanc project may begin construction actually when it may become operational.
Currently we're planning to do the project financing in 2021 and the.
Construction cycle should be about 24 months.
Great and then also on congratulations on getting the bio gas projects up and running when do you think we're going to see more I guess dairies being connected and when will we start seeing a greater impact on your financials from this project.
The second quarter of next year should see somewhat.
Additional dairies come online, it's a it's a ramp up over the next 18 months, but we're doing them in.
Roughly five dairies five to six dairies per group. So we have to done now the five to six another five or six another five or six to to get the 18 and so we'll we'll see.
Every couple of quarters, you'll see another cluster variously that get added we are building a pipeline as well as dairy digesters. So we extend the pipeline and then week gather up the dairies in that area that have already signed the 25 year agreements to connect to the pipeline.
Great.
My last question is what's your overall outlook for oil and ethanol prices I know obviously were the second we're going to revenue President What's your view on his take in terms of renewable fuel standards and and.
Ethanol standards.
Ethanol the 10% blend currently.
Under the Trump administration that was.
Largely approved will become at 15% blend that's a increase of about 50%, which represents about 7 billion gallons per year of additional demand added if eight fit at a 15% blend and at the fuel pump of even 15%.
What you would see at the pump is a very small amount when you subtract the taxes paid at the pump than multiply. The remaining balance were 15 cents youre only talking about maybe 25 or 30 cents of the entire cost of fuel is all of the ethanol so of ethanol goes up by.
Only 10% you are talking about two or three.
Cents difference at the pump really the rounding error between choosing between what's gas station you're going to pull into is the actual ethanol margin that is anywhere from 50 to 50 cents to one dollar of profit for an ethanol plant. So the function of the fuel ethanol business is solely about supply and demand and there has been seven point.
Point 2 billion gallons of waivers by the federal government.
The renewable fuel standard since 2013, and I think its informative, especially for people that might be newer investors in our company to note that in the last 12 months of enforcement of the federal law.
Our company made 10 million.
$3 per quarter, a total of $40 million of positive cash flow from operating our corn ethanol plant and that was when federal law was simply enforced and.
So the by the administration and into Federal Court decisions support the idea that we would begin again to enforce federal law.
That would represent $40 million per year by the way it would represent for us about 60 cents per gallon of margin and so at the pump it would convert into roughly a six cents difference at the pump for us to make $40 million per year. So, it's it's not not difficult to see.
Scenario in which either Trump or biden.
And certainly looking like Biden simply doesn't violate federal law and in so doing.
We're well positioned to to do quite well in the fuel ethanol business.
Great. Thank you for answering my questions and good.
Okay.
Thank you and appreciate your call.
Next we go to Craig Irwin with Roth Capital Partners. Please go ahead.
Good afternoon, Thanks for taking my questions.
Eric Congratulations on the momentum in your your buy gas businesses looks like it could become something really interesting.
$40 million year over 25 years, a billion dollars in that and profit off this business and Thats nothing nothing to sneeze at right. So I wanted to ask about some of the underpinning assumptions that youre using to get to that the $40 million here, obviously, that's all 18 plants up and running.
There's there's a cost of debt on the sales.
55 from third eye.
But theres, some basic fundamental assumptions, including the.
Carbon intensity of these plants some of the take slurry facilities out there and have seen eyes of negative 350 dairy guys typically range in it.
202 to 50 range.
Range. I mean are you are you assuming you'll sort of be in that range and then LCFS credit values. I mean are you using a full 200 or do you have a discounted value in there and then.
You know like Green.
Green gas for a landfill gas right.
Often.
The developer has to give away some of the economics to the landfill owner to facilitate the the permitting process is there much of an economic sharing agreement.
With the dairies that that are.
Adopting this exciting technology.
Excellent insights Craig. Thank you very much we're assuming current market price and all CFS as you know thats been that generally rising curve and under California State law increases every year by essentially a.
Fixed amount so we're assuming it does not increase and it frame.
He is not its maximum this year's maxims 217 don't $17 in our model. We are soon assuming approximately $195. So.
So to score flat 195 over 25 years, ignoring cost of living index increases allowed by the state of California.
The second is.
We have done a good fortune of being our own consumer so we generate LCFS credits by putting.
Bio gas into our work or corn ethanol plant, we also generated by putting it into our own owned CNG fueling station. So your question about discount.
Frank we obviously capture the entire value chain by putting it in our our own trucks and putting it into our own plant. If we went into the utility pipeline. The discounts were seeing today are relatively small and theres a proposal that they would capture more market value that offset much of that discount it used.
The discount was pretty large it was one of the reasons, we drove to or toward building a model, where we didnt actually after using the outside.
Trucks or or parties and so we have about 75 truckloads a day to go in and out of our plant and just feeling our own trucks could really be a built in customer base and.
And then last.
To be.
The.
The team that we have on the schedule right now are what is already what's called part of our relationship with third eye capital. We do anticipate we will be 30 or more dairies. We're just going to continue to grow the opportunity is just that this first two phases phase one is complete.
Isolated second phase is to be completed over the next 18 months does lay out a 40 year picture.
Which should be in excess of $40 million per year using the the numbers I've described to you.
Excellent excellent. So then when we talk to some of the larger.
Please green gas developers in the market right. There's a short list of names.
They all.
Described the.
Cow slurry or or take slurry opportunity I guess dairy gas opportunity as difficult to address I know, there's something like 280 projects that are that are in development.
We're out in California, but the Big boys all downplay the.
Dairy gas market, saying that it's actually very hard to serve.
Given the proportionate size of plants.
Seems like you don't find these issues that you found farmer.
Limbs that we'll be able to give you half dozen half dozen plants and you don't make the commitment on one piece of paper.
That kind of puts things back in the range of support sort of proportionate size closer to that of a landfill gas facility, but.
Can you can you maybe speak from your your experience in the dairy industry.
Armow amedisys doing things different and what's allowing you to find success here versus some of the other larger project developers that.
Have I.
Actually chosen to deemphasize this right now.
Craig you've obviously spent some time talking to larger lawyers developers.
California is the largest dairy shed and.
The world, we have over a million dairy cows, and a very small area.
Really within about 100 150 miles of our plant.
Is up to.
About 1200 dairies.
And and we feed dairy cows at about 75 of those there is already there are existing customers.
What most of the developers even the the two other major developers in California.
Having trouble with is they have no pre existing relationship credibility or confidence frankly to enter into a 25 year relationship with some guy shows up with pickup truck in a cellphone associates a biogas developer.
Whereas we have.
$150 million of cash invested in the ground were.
We're feeding their cows every day and have a very very long term well established relationships not only through us, but also through our green supplier and market specific screen to them that goes back decades, and so we have.
A very simple relationship with dairies they.
They have a liability coming under Senate Bill Senate Bill 33 in which they are going to have to start acting like little oil refiners that are emitting methane, they're going to have the buyers of carbon credits.
Unless they can find a way to spend literally tens of millions of dollars to build.
The system, we're building cleaned it up and sell it to somebody and what we offer is they don't have to invest anything we actually are paying cash bonuses when they sign and then they get positive cash flow for a 25 year span and it ends up being a very synergistic sustainable circular by economy, where we're selling in the.
The animal feed that creates some newer where then turning that into bio gas at our cost cleaning it up pipelining at cleaning up again, selling it and then giving them up through participation in that cash so.
That's accelerated our ability to.
Attract dairies and once we put a pipeline of the ground as you probably.
We know if you bypass a dairy there the disadvantage one because their neighbor can sell milk frankly at a lower cost than they can because they don't have the revenue from bio gas. So we're sort of picking the winners making the big bigger is really what's happening but to tell you the truth and so when we put a pipeline in the ground. We just tend to have to talk to.
The neighbors and say, we're going to re buy your place you want us to.
Agile in and it doesn't take long for people to say well. If you don't add me and then I don't get the cash every month do I and then eventually going to start buying carbon credits. So it's a monopoly business I would say that directly to dairies is that there is only one of the gas pipeline. There is only one owner the guest.
Yes pipeline and if you're the guy put the gas pipeline in the in the ground and you do that by signing up the biggest areas in an area, albeit the dairies will end up interconnecting at very low cost. So thats our strategy, it's worked very well and.
It takes only a couple.
Not a couple of years with maybe a decade to build relationships that can execute is.
As quickly as we have.
So then last question if I may I mean.
Knowing the weight of some of these regulations in California economically what they mean and how they change behavior.
Is it feasible for us to take the 18 that you announced in hand, and maybe extrapolate there is an opportunity for.
For that to get much bigger over over the next single digit number years.
I'll give you the answer is yes, I'll give you. The the next follow up question as a response as well we are physically close to 75 dairies, because we truck to them everyday with with water and animal feed thats.
Wet distillers grain as they need to be kind of relatively close to our plant and so our pipeline systems are intended to maximize number large areas that we can connect up directly to our plant that we do have an ability to expand beyond just the ones connected to our plant to putting them put up smaller class of pipeline clusters that are farther away.
Way from our plant and with approximately 250 dairies in California, I'm going to estimate about 300 of them are extremely attractive bio EPS customers.
We expect to be the largest actual.
Gary biogas producer in the United States, I mean, it's pretty easy because California.
He is the biggest and so if your biggest California is the biggest in us and that would entail 30, plus at Gary's, perhaps many anyway.
Any more than that so.
The scalability is really based upon.
Our.
Our partnership with our our.
Our capital partners, a $3 billion company Hunt.
When funding as for 12 years, and I think they have a very strong appetite for us to execute well and execute steadily but just keep on growing and I wouldn't be surprised all end up with more than 50, or even 100 dairies overtime because of our ability to execute well other competitors are still struggling to find credibility with the dairies.
Great. Thanks for taking my questions.
Yeah.
Thank you Craig.
Next we go to the line of Marco Rodriguez with Stonegate Capital Partners. Please go ahead.
Good afternoon, Eric Thanks for taking the question.
I was wondering if maybe you could talk a little bit more on the health care products side of the business.
It kind of sounded like in your press release, and maybe you guys saw a little under pressure for some competitive environment. Maybe you can provide a little color there and just kind of how we should be thinking about.
The competitive environment, there as the year unfolds and into next.
I kind of expected there would be some questions about it weve.
We had a tremendous second quarter.
In a booming market and what we saw as an industry is unregulated product coming in from Mexico, approximately 200 hand sanitizer brands got.
Got FDA warnings for for violating methanol content and when you drinks hand, sanitizer, which you shouldn't do.
By the way.
If its ethyl I'll call. It makes you drunk if its methanol it it actually cause paralysis blindness or death, so not a good thing and have over 200 brands came in from Mexico with that and then China again, largely not tested product coming in from China, So as as retailers and the customers.
Scrambled for product they bought product it didnt meet specification. The FDA then stepped in and started writing.
Writing warnings and bands and recalls and that cleaning up the market is what we're seeing now the final cleanup is going to be when the temporary waiver ceases then the product has to meet that.
There is additional good manufacturing practices facility, plus the us pharmacopeia medical grade alcohol, which will significantly curtail the the number of producers and largely that's what we're investing in is that and second second quarter next year that there is really only one large scale sanitizer alcobra.
The trees in the Western United States now, what we've decided is not to sit here and sell bulk alcohol product at commodity prices, but rather to take advantage of the geographical advantage that does not ever go away.
That is up to one dollar a gallon of cost to produce alcohol in the Midwest.
Ship at 2000 miles to California, and put it on the store shelf.
At Costco right next to ours, it literally costs, an extra dollar and that never goes away so by going to branded products and even private label products you could go into Costco and see our Aemetis brand as well as you could see the Kirkland brand, which.
As cosco, both of which would be made by us and so we have moved forward with a fully integrated process to take full advantage of what we what we believe to be an ongoing.
Slightly growing market, but larger market than what it was certainly before cobot and our customers.
Are the full gamut of consumers government and corporate and academic customers that will need an ongoing supply of not just hand, sanitizer, but sanitizer wipes and sprays and aerosols and don't hold stuff that lysol is 58% alcohol. That's that's what kills germs with lysol. So we've taken a long.
In terms of you and we're upgrading our plant to be able to be 100% medical grade, but the second quarter of next year and we've spent over $12 million of the 15 million required. We just have some additional equipment to arrive and installed to be completed with it and I think it will be a sustainable competitive advantage we have.
As we.
All I think we're all kind of wondering how long covance is going to last but we certainly have seen people are much more attentive.
To the protocols of standardization and thats, requiring alcohol supplied to be increased.
Got it and it sounds like your hands are kind of the next question just kind of wanted to get an update.
On the.
Expansion for our year healthcare farmer, Copia hand, sanitizer alcohol, rather is that that's all on track.
It is on track with the volatility we expected and what you probably saw was a lot of shelves getting filled after the second quarter and then a lot of product that had to be pulled off the.
Yes.
Costco I mentioned, but they did a massive recall on civil their products and now having to turn to the supply chain and look for more stable long term direct relationships preferably local relationships our product to both.
The private label.
As well as the branded product.
Have made it in the Cal in California stickers on them, so you're you're able to end to end up with basically long term relationships that are trusted relationships with a customer that really spend a dollar a gallon no matter how they how they look at it if they're not going to buy product from us and that's the what is it 80 million people in the west coast of United States and Columbia.
British Columbia that that all would need to basically just by our product. So that's why we're making the investment is we think that there is not a good solution. If we don't do it. These people are stuck with buying product.
2000 miles away.
Hi, Thanks, I really appreciate your time.
Sure. Thank you appreciate it.
Next we go to Tom Welch <unk> private Investor. Please go ahead.
Hey, Eric Thanks for taking my call.
When the FTC a temporary alcohol.
Wherever it goes away.
[music].
Whenever that is and we don't know.
I would guess that you're hoping that by that time. You are then producing U.S.P. [laughter] grade alcohol I believe you're producing GNS grade alcohol currently.
So.
Uh huh.
Do you have do you expect any kind of.
A waiver from the FDA that would allow you to continue to produce essentially food grade.
Golf for use in Sanitizers.
We are looking forward to the FDA are ending the waiver, we think that we've got at least another six months past December as before.
For that wave is going to happen, but we would expect middle of next year that all hand, sanitizer, we'll go back to being an over the counter drug regulated product, which requires U.S.P. medical grade alcohol. So we are scheduled to be a producer of U.S.P. grade alcohol by the end of the second quarter.
In order to kind of match up with that time timeframe and I would not expect that we'd be submitting a request for waiver we.
Would have capacity of in excess of 65 million gallons, Europe Sanchez or I'll call. It we could ship.
Very good. Thank you second question again regards to sanitizer.
What percent of your alcohol is currently going on the coal production is currently going to the specifically the emeritus branded sanitizer.
No in Q2 your goal was to essentially move to 100% alcohol production.
Going to your own branded met a sanitizer.
So can you give us some color on on.
What percent of your production.
It's currently going towards the Amedisys branded sanitizer.
Yeah, just to clarify one point, we our goal is to move towards that size or production.
And to fully meet the bulk sanitizer the branded a medicines as are but also private label Sensitizer markets and we even frankly, our blending the product we're putting it together and what essentially is a hand sanitizer gel formula and then selling it and totes so far.
Our our goal is to just maximize our market position and not really have a reason for any producer bottler consumer retail or school anybody west of Colorado to buy any product that doesn't have a met its alcohol on it so our our because of our transportation cost advantage and very soon.
And the fact that were U.S.P. and nobody else is we see that as a logical oh.
I come up with this thing so just just clarifying at we're moving toward.
Multi Mike.
Mark multi market segment strategy, not just our Medis brand.
And that by the way also might include exports to cut.
Countries like South Korea, and in Japan, who don't really have much domestic supply but to have loved domestic demand for this product, but we're only about 30 miles from a 40 miles from a deepwater ports, we can export too.
To Asia without too much from.
So that's our real goal.
For competitive reasons, we do not talk about what percentage were shipping on a given month or given weaker given day.
We are on these earnings calls have to report the overall number of gallons of ethanol. So we definitely report that but we.
We will see a transition toward a medis branded product because that.
That is the highest margin product, we are taking the full value chain and selling directly on an online marketplace, which I mentioned, we had been approved for one and we should be up and going you will see a press release from us on that.
That that is where we can maximize our margins and.
You'll see hopefully.
Some some emphasis on on how governments can buy from us directly just basically through the online marketplaces as well as through our bidding process, where we're bidding directly for government contracts.
Very good.
Switching gears, just a little bit, but really on the same track I just thought it was so brilliant on your part to be switching.
And from a bulk commodity low.
Low margin fuel supplier to a retail supplier of finished products.
I mean gosh I mean, it's just brilliant have you ever thought about doing that.
With your biodiesel sales.
Oh limited.
It just could be for instance.
Right now.
When I go into Walmart I, typically we'll spend 15 to $20 on a.
Diesel fuel additive.
Just to increase the lubricity and and the cetane of the.
The diesel is that I drive.
90% of the stuff in that jug that I buy is.
Essentially just diesel fuel with 10% an additive and it would be.
Really exciting if you folks had ever entertain the idea of taking your biodiesel.
Doing a doing a pulling ascena retail sanitizer move on it with.
The current increased added value.
Being able to Bali your own.
Bio diesel.
Based fuel diesel fuel additive in India.
Has that ever.
Cross the desk.
Yes, there were thought of that.
Not specifically as a fuel additive, but interestingly enough you're right on target I don't know maybe it's your own personal experience. It gets you got here, but.
Just looking up in India, you are dealing with very poor population, where three or $4 is sometimes their entire days income and.
So we have.
Begun the process of selling at retail in small one leader.
How much is essentially it's literally a power it's not a it's not a can.
And it's enough to fuel attractor for a few hours or for a day and it's quite fascinating.
That's exactly what we ended up in India was in order to meet the needs of the population we started packaging our product into.
Small patches and eventually could do half gallons or something that person could walk out of a retail store with some biodiesel and whats interesting.
Is a personal experience of the people, especially the tractors is that your dramatic.
And then reducing particulate emissions and if you've been attracted wherever it sounds like you've got a diesel vehicle you know that having exhaust blown in your face with a bunch of black smoke is quite miserable in India. One of the reasons. Our product is quite popular is it smells not like petroleum, but frankly smells a little bit like.
Like more of a food product.
Second the particulate emissions were reduced by more than 90%, so they're not getting smoke blown on their face and there is 1.1 billion people in India over time, I think that the channel of being able to supply through retail gas stations.
Through packets at retail stores as well as bulk so.
Permit.
As well as directly to trucking companies, which is a major market for us in the mining companies mining companies have very large vehicles that might only get one mile per gallon and they save a tremendous amount of money buying our product so.
So we were well positioned we are the leader in the market. We are the biggest supplier in India, and we're well positioned.
Governor for very strong growth and even expanding beyond the $150 million of revenue by expanding our capacity to 100 million gallons a year.
Our business plans to be over $300 million revenue in India, and we're well positioned to do that our capital costs do that's less than $20 million.
Well I know that the quality of these.
I don't feel in India is.
Trouble, it's like the diesel fuel that we used to get here back in the 19 fifties and we all remember driving on the California Railroad tie ways.
With smoke belching interfaces from the from the diesel trucks.
So I know that.
Biodiesel Burns cleanly it improves your gas mileage tie your cetane goes up had lubricate tranche in your engine is actually clean or after running even just a 5% to 10% plan to biodiesel even with your regular diesel so.
I, just thought Wow, what a great opportunity.
Two.
Essentially to some degree.
Bypass the powers that be.
In the bulk supplies to the government controlled.
Oil companies.
And get right to the people even if its people are just adding 5% blend or a 10% blend I know when.
What's driving diesel is back in the seventies we.
We had to use some type of an additive package.
Otherwise would be cleaning out our injectors after 60000 miles.
So.
What's the thought and that appreciate not mentioned we've mentioned this in the back in the past but.
The India stock Mark.
Not is very excited about the national Biofuels policy that was adopted by the India government in which they are currently importing their crude oil and spending approximately $50 billion a year buying crude oil and so the national Biofuels policy said, let's use 5% of bio diesel.
Marketable to displace having to import as much crude oil and after we achieve 5%, let's go to 10%. After 10 percents go to 20% and so that's where their purchase order is.
Literally three times as much as the industry can even produce they are trying to signal that they'd like us at amedisys to investor.
Correct.
Increasing our capacity from 50 million gallon per 100 million gallons. What's interesting is that the stock market in India can fund that sort of activity. We currently own 100% of the subsidiary and have had a round of discussions with investment banking firms in the past about valuing our subsidiary and some of those valuations are very.
The very high multi hundred million dollar valuations because in fact, we are the biggest it's a big market fast growth. You know you do a billion gallons of biodiesel you're talking about 3 billion revenue company and so funding rapid growth in India has been a primary goal of our of our of our building our position there and we.
It was going to take time, we knew it was going to be slower than anybody wanted but its one of those wow, how did that happen kind of deals when you see the valuation on a subsidiary IPO in India, which we could still retain 60% to 75% ownership, but have a multi $100 million holding because of that.
And ladies and gentlemen, we are running short on time, we do have time for one more brief question. We go to the line of Maxim Biosphere Rolla private Investor. Please go ahead.
Hello, heavy so first of all let's say that most of this quarter.
But on the more than one.
Sam.
Capacity that is very good in a moment, where 50% of idle plant in California.
Idled and they also have this JV that you are probably the only company we settle with US away nor did we should all that is the number of REO sales that open immediately.
Yeah.
Welcome to Haskew lumpy Inc. and then they want to do like equates about electric et cetera. So this time.
South Bend Bollea welcome safety that will be a bit back that Dan.
I think that the time aware.
You should boost the investor concrete answer so in this moment will close in the evaluation of the company's low band slowly how you hope to see the next the days and weeks like a commitment from them.
You did is that on the board of directors I would appreciate.
You find to make so we.
The bar code and continue then to buy settled builder basket feeling good.
Thanks for color, then I want to do it would still be goes about electric vehicles.
Yes, like they may be likely one plant feed.
For company like that like that.
They allowed the carberry hooked up the momentum.
I think these won't be go Selectica required happy moment, then by your well throughput to produce electricity in high volume of border. For example, now is going how can you sum it be Obama did you see said downloads at the hotel.
Got to who you bid on Junin, who will sell to provide what I'm going to Myles Granger Highpowers long range electric back on I think why synergy then so that bodes well.
Well and the ILEC, because we'll need to head on with that football wherever the range. So I won't do Clos group you can see there when.
Like in this market and if you are maybe considering this opportunity to work close with the electric car requiring cash so with that if you have talked about this opportunity.
You're correct that we have two different very.
Central roles in electric vehicles.
First is the confidence we have in the renewable natural gas business driven by our very low carbon intensity score allow.
Allows us to potentially produce electricity that powers heavy trucks and buses and in California, they've made it very very attractive to produce carbon negative few.
First for buses and trucks, because they are driving a diesel which is a very carbon intensive fuel and batteries are not large enough to give them long distance the ability to apparel those batteries with electricity that's carbon negative helps the overall transition to a climate change.
We'll also see that's already been adopted in as well well on the way in California, So reduce renewable natural gas puts us right in the middle of the left to the carbon negative electricity business for vehicles. The second one though I spoke about briefly at the end of my presentation and that is the actual engine in a diesel vehicle.
Is a compression engine that does not have spark plugs. It does not use a little flame to explore the fuel it squeezes a fuel compresses as fuel to make if you will explode EPS.
Tunnel has a 114 octane rating, which allows you to compress it to a very high degree.
For explode, so it's very efficient.
So it's it's combustion in a diesel engine.
And there's a technology came out of Stanford University is now being commercialized two actually replace the diesel engine in a regular diesel.
Heavy duty bus for example, with an engine that uses ethanol and it creates 30% more toward more pulling power if.
This gives us ethanol then if he uses diesel if.
If you use that engine then as the generator for a range extender.
Yes on an electric vehicle, let's say you have a a truck and you want to drive a thousand miles your batteries might only take a 50 or 100 miles you then need some dense fuel.
Maybe to generate electricity, so an ethanol generator on board would have more than the 95% reduction of particulates have virtually no other emissions issue.
Issues that are currently problems and diesel engines that require very expensive equipment and ongoing diesel exhaust fluid expense and everything else.
And would have better performance, 30% more torque is a tremendous step forward and performance for the.
The non generator version and of course, you put a generator onboard and now you're driving and ethanol and dairy renewables renewable natural gas vehicle very low carbon emissions, probably been negative carbon emissions for your dairy naturally.
For gas electricity and if we make the ethanol out of wood waste. It's also carbon negative ethanol very inexpensive very low carbon and you can imagine regulators are interested in trying to remove diesel trucks diesel buses, even even tractors and other diesel equipment and convert it to this low emissions a little.
Air pollution low carbon.
Solution that Aemetis has so we are taking.
Very serious look at how we support the players in the industry. We are a very very large supporters of the the ethanol engine to displace diesel engines and we think.
Low into our industry is behind us on that one and we're looking for the industry to make major moves too.
And do a even a 20% replacement of the existing diesel truck fleet would double the size of the ethanol market in the United States from 15 billion gallons, the 30 billion gallons.
And they would have a tremendous financial impact.
Our core business, but also reduce air pollution and carbon emissions throughout the United States. So we were very much in the center of the electric vehicle Revolution, and hybrid vehicles, and replacing diesel engines with ethanol engines.
Okay. Then that you have had the last two ready maybe Sean Quinn assume defense well.
And you said about how much of the book Goma.
Sandy. So today you are selling water you are selling going on the books and you've got to most selling when will you start to sell bear and the second one is about yes, yes, I mean, I see that like a b yes.
Lack adequate but say by these important now that you are going to be something huge I. Just saw develop tiara. In 2019, you won 23 medium corn crop and deep generate like 6 million EBITDA.
Yes, the gold Cup will be local tiger because the India is 40.
We've begun to dabble like almost one beyond so I wont was two will be like a project shown off.
I'll now to you are going to we know 2002 and deep. It goes in place and then do you want to answer you can be drawn amounts you are going to we will.
That would be probably impactful.
So in 2021, the revenue and then the other thing I would appreciate the few out.
So before 10 can see that it seems to be his baby very whole cubbies moment right. If you will of the engine business that they according to me all they be met the big the path.
Equal would be valued maybe 200 300 million Tampico seamless. So if you do like and that your core that people said you would be like 50 million that we'd be 50 meal, you will pay back their crop that dichotomy of it is very very high end correct.
And they worked out there you are.
Actual in order to let the it'd be very I called the decrease.
The.
Let's let's let's take them in order the.
Online major marketplace has approved us and we should send out a press release as soon as you can buy our product.
On that.
Online major marketplace. So look for press releases, we have definitely an opportunity in India to IPO or subsidiary we've had long discussions on it we think that the $900 million.
[music].
Tender offer from the government is is.
In this case only for about six months actually its December January February March April may that's the entire period for the 900 million, it's not for the entire year. So when we got the 23 million dollar order last time that was for the entire year and so when we announced the.
The.
The bid process outcome here, what should happen in just a couple of weeks or less.
We would be only in a six month period, not a 12 month period and would expect to see.
Higher number so what we're seeing is very strong.
Demand from the India government and now we need to match that with with.
Pricing and we will be fine, we're the largest producer in the country Theres only about four other producers. So it's not a very large fractured fragmented industry, it's us and for the guys and we're looking to expand and then take advantage of the market opportunity in the stock market when that when that happens.
There are no further questions at this time I would like to turn the floor back over to management for closing remarks.
Thank you Linda I appreciate that and thanks to the amended shareholders analysts and others, who joined US today, we look forward to talking with you to continue our dialogue about the growth opportunities.
At our company thank.
Thank you for attending today's Aemetis earnings Conference call. Please visit the Investor section of the Aemetis website, where we will post a written version and an audio version of this aemetis.
We view earnings review and business update Linda.
This concludes today's teleconference. You may disconnect your lines.
At this time, thank you for your participation.
[music].
Mm.
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