XML 58 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
14. Subsequent Events
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
14. Subsequent Events

Sub debt refinancing

 

On July 1, 2015, the January 2014 Sub Note and  January 2013 Sub Note with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2015; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; (iii) the completion of an Initial Public Offering by AAFK or Aemetis; or (iv) after the occurrence of an Event of Default, including failure to pay interest or principal when due and breaches of note covenants.  A 10% cash extension fee was paid by adding the fee to the balance of the new Note and warrants to purchase 116 thousand shares of common stock were granted with a term of two years and an exercise price of $0.01 per share.  These July 1, 2015 amendments and the refinancing terms of the Notes will be evaluated and accounting is determined in accordance with ASC 470-50 Debt – Modification and Extinguishment.

 

Third Eye Capital Debt Agreement Amendment

 

On August 6, 2015, Third Eye Capital agreed to Amendment No. 11 to the Note Purchase Agreement to allow for the extension of the maturity date of the Notes to April 1, 2017 provided that the Company i) has $11.5 million in EB-5 funds in escrow as of August 31, 2015, ii) enters into an investment banking engagement by October 1, 2015 to complete a capital market transaction for the sale of shares in the India subsidiary, and iii) repurchases 100,000 shares of common stock at the greater of $4.00 and the closing price on the date of the amendment. In addition, Third Eye Capital waived the free cash flow financial covenant under the Note Purchase Agreement for the three months ended June 30, 2015 and for the three months ending September 30, 2015, and revised the market value to note indebtedness to 65%.  As consideration, Third Eye Capital charged an amendment fee of $1.0 million to be added to the outstanding principal balance of the Revolving Credit Facility and an extension fee equal to 5% of the Note indebtedness to be charged at the time of exercise.  We will evaluate the amendment of the Notes and will determine accounting treatment in accordance with ASC 470-50 Debt – Modification and Extinguishment.