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Note 10 - Agreements

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Collaborative Arrangement Disclosure [Text Block]

10. Agreements

Working Capital Arrangement. Pursuant to a Corn Procurement and Working Capital Agreement with J.D. Heiskell, the Company agreed to procure whole yellow corn and grain sorghum, primarily from J.D. Heiskell. The Company has the ability to obtain grain from other sources subject to certain conditions; however, in the past all the Company’s grain purchases have been from J.D. Heiskell. Title and risk of loss of the corn pass to the Company when the corn is deposited into the Keyes Plant weigh bin. The term of the Corn Procurement and Working Capital Agreement expires on December 31, 2023, and the term can be automatically renewed for additional one-year terms. WDG continues to be sold to A.L.Gilbert and DCO is sold to other customers under the J.D.Heiskell Purchase Agreement. The Company’s relationships with J.D. Heiskell, and A.L. Gilbert are well established, and the Company believes that the relationships are beneficial to all parties involved in utilizing the distribution logistics, reaching out to widespread customer base, managing inventory, and building working capital relationships. These agreements are ordinary purchase and sale agency agreements for the Keyes Plant. On May 13, 2020, J.D. Heiskell and the Company entered into Amendment No.1 to the J.D. Heiskell Purchasing Agreement to remove J.D. Heiskell’s obligations to purchase ethanol from the Company under the J.D. Heiskell Purchasing Agreement.

As of December 31, 2022 and 2021, Aemetis made prepayments to J.D. Heiskell of $2.4 million and $4.0 million.

The J.D. Heiskell purchases and sales activity associated with the Purchasing Agreement, Corn Procurement and Working Capital Agreements during the years ended December 31, 2022 and 2021 were as follows:

		*As of and for the twelve months ended December 31,*
		*2022*				*2021*
Wet distiller's grains sales		$	50,930			$	41,476
Corn oil sales			10,168				6,184
Corn purchases			191,401				159,309
Accounts receivable			-				308
Accounts payable			27				862

Ethanol and Wet Distillers Grains Marketing Arrangement. The Company entered into an Ethanol Marketing Agreement with Kinergy and a Wet Distillers Grains Marketing Agreement with A.L. Gilbert. Under the terms of the agreements the Wet Distillers Grains Marketing Agreement matures on December 31, 2022 with automatic one-year renewals thereafter. We terminated the Ethanol Marketing Agreement with Kinergy as of September 30, 2021. Effective October 1, 2021, we entered into Fuel Ethanol Purchase and Sale Agreement with Murex. Under the terms of the agreement, the initial term matures on October 31, 2023 with automatic one-year renewals thereafter.

Sales to Kinergy were none and $110.7 million and there was no accounts receivable associated with Kinergy for the years ending December 31, 2022 and 2021, respectively.

Sales to Murex were $165.9 million and $51.7 million, and accounts receivable associated with Murex was $0.6 million $1.0 million, for the years ending December 31, 2022 and 2021, respectively.

For the years ended December 31, 2022 and 2021, the Company expensed marketing costs of $2.9 million for each period under the terms of both the Ethanol Marketing Agreement and the Wet Distillers Grains Marketing Agreement and are presented in Selling, General, and Administration expense.

For the years ended December 31, 2022 and 2021, the Company expensed shipping and handling costs related to sales of ethanol $3.3 million for each period and expensed transportation costs related to sales of WDG of $5.3 million and $3.1 million.

Supply Trade Agreement. On July 1, 2022, the Company entered into an operating agreement with Gemini Edibles and Fats India Private Limited (“Gemini”). Under this agreement, Gemini agreed to provide the Company with a supply of feedstock up to a credit limit of $12.7 million. If the Company fails to pay the invoice within the ten-day credit period, the outstanding amount will bear interest at 12%. The term of the agreement is for one year. Either party can terminate the agreement by giving notice one month notice in writing. As of December 31, 2022 and 2021, the Company had no outstanding balance under this agreement.

As of December 31, 2022, the Company has no forward sales commitments.