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6. Operating Leases
12 Months Ended
Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]  
6. Operating Leases

 

6. Operating Leases

 

The Company, through its subsidiaries, has non-cancelable operating leases for office space in Cupertino.

 

Subsequent future minimum operating lease payments as of December 31, 2011 as adjusted for subsequent acquisition are approximately $1,592,000 for the year ended December 31, 2012.In July 2009, the Company entered into a sublease agreement with Nevo Energy, Inc. (formerly known as Solargen Energy, Inc.) for approximately 3,000 square feet of leased space. For the year ended December 31, 2010, the Company invoiced, collected and offset as rent expense $85,670 under this agreement. For the year ending December 31, 2011, the Company invoiced Nevo Energy for $86,291 in rents due, but reserved all the payments due to Nevo Energy’s inability to pay. See Note 13. Related Party Transactions. On April 12, 2011, the Company agreed to convert $62,151 of its then outstanding rent bills to a promissory note bearing a 10 percent annual interest rate and a maturity date of April 12, 2018. As of December 31, 2011 a balance of $66,812 remains outstanding on the note. The Company has fully reserved for the Nevo Energy promissory note, due to the high probability of not being able to collect on the Note.

 

On December 1, 2009, the Company entered into a lease for a 55 million gallon nameplate ethanol facility located in Keyes, CA for a term of 36 months at a monthly lease payment of $250,000.  The Lease term and rental began upon substantial completion of the repair and retrofit of the plant on April 1, 2011, which was amended in April 2012 to a 60-month term ending March 2016.

 

On July 6, 2012, Aemetis, Inc. acquired the Keyes, CA ethanol plant. As a result, no additional lease obligations remain for the ethanol plant lease after the acquisition date. See Note 15. Subsequent Events.

 

For the year ended December 31, 2011 and 2010, the Company recognized rent expense of $3,314,712 and $714,718, respectively.