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12. Agreements

12 Months Ended

Dec. 31, 2013

Working Capital Arrangement. In March 2011, we entered into a Corn Procurement and Working Capital Agreement with J.D. Heiskell. Pursuant to the agreement we agreed to procure whole yellow corn from J.D. Heiskell. We have the ability to obtain corn from other sources subject to certain conditions; however, in 2013 and 2012, all of our corn requirements were purchased from Heiskell. Title to the corn and risk of loss would pass to us when the corn is deposited in the weigh bin. The initial term of the Agreement expired on December 31, 2012 and is automatically renewed for additional one-year terms, currently to December 31, 2014. Heiskell further agrees to sell all ethanol to Kinergy Marketing or other marketing purchaser designated by the Company and all WDG and syrup to A.L. Gilbert. These agreements are ordinary purchase and sale agency agreements for an ethanol plant. See following for J.D. Heiskell & Company sales, net of transportation costs and marketing fees, purchases and accounts receivable as of and for the years ended 2013 and 2012.

J.D. Heiskell & Company:
		2013		2012
Sales
Ethanol	$	106,565,941	$	128,830,630
Distillers Grains		26,490,413		35,468,559
Corn Oil		2,609,061		2,582,858
Corn Purchases		95,999,548		156,984,918
Grain Sorghum Purchases		11,522,666		-
Accounts Receivable		641,147		394,784
Accounts Payable		2,227,828		2,650,013

Ethanol and Wet Distillers Grains Marketing Arrangement. The Company entered into an Ethanol Marketing Agreement with Kinergy Marketing and a Wet Distillers Grains marketing agreement with A. L Gilbert. Under the terms of the agreements, subject to certain conditions, the agreements with Kinergy Marketing matures on August 31, 2014 and with A.L Gilbert on December 31, 2014 with automatic one-year renewals thereafter. For the years ended December 31, 2013 and 2012, the Company expensed in total $2,098,484, and $2,394,194, respectively, under the terms of both ethanol and wet distillers grains agreements.

Acquisition of Cilion. On July 6, 2012, the Company acquired 100% of Cilion, Inc. through a merger. Each issued and outstanding share of Cilion Preferred Stock was automatically converted into the right to receive an aggregate of (a) $16,500,000 cash and (b) 20,000,000 shares of Aemetis common stock and (c) the right to receive an additional cash amount of $5,000,000 plus interest at the rate of 3% per annum, which is payable upon the satisfaction by the Company of certain conditions set forth in the merger agreement. The Seller Note was recorded at its estimated fair value based on an expected term of 2 years and a 22% discount rate. As of December 31, 2013, Aemetis Facility Keyes had $4,869,244 in principal and interest outstanding, net of unamortized debt discount of $353,906.