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Note 13 - Subsequent Event
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Subsequent Events [Text Block]

13)

SUBSEQUENT EVENTS

 

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

 

On July 4, 2025, the Budget Reconciliation Act of 2025 was signed into law which made significant changes to federal tax law.  The legislation did not affect the Company’s income tax balances as of June 30, 2025.  The most significant provisions affecting the Company include modification to the CFPC, including an extension of the expiration date from December 31, 2027 to December 31, 2029, and rules on foreign based feedstocks as well as affirmation on the transferability of the credits.   In addition, the tax law reinstated the extension of the Small Agri-Biodiesel Producers Tax Credit.  This tax credit is $0.20 per gallon on the first 15 million gallons produced for facilities with up to 60 million gallons of capacity eligible for fuel sold after July 1, 2025 and before December 31, 2026. The Budget Reconciliation Act includes other changes which the Company is evaluating.

 

The Company continues to experience extremely high feedstock prices resulting in negative profit margins for biodiesel.  As a result, on July 9, 2025, the Company completed a reduction in force of 75 employees following the idling of biodiesel manufacturing given these unfavorable market conditions.  The Company retained employees with expertise to facilitate the restart of biodiesel production upon the return of more favorable market conditions. The aggregate cost of separation agreements related to the reduction in force are estimated to be approximately $386.