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Gevo Reports Fourth Quarter 2021 Financial Results

·26 min read
Gevo, Inc.
Gevo, Inc.

Gevo to Host Conference Call Today at 4:30 p.m. EDT/2:30 p.m. MDT

ENGLEWOOD, Colo., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the fourth quarter of 2021 and summarized recent corporate highlights.

Recent Corporate Highlights

  • On December 7, 2021, Kolmar Americas Inc and Gevo entered into a financeable fuel supply agreement for 45 million gallons per year of renewable, energy-dense liquid hydrocarbons.

  • On November 16, 2021, Gevo signed a memorandum of understanding (MoU) with Sweetwater Energy, Inc., regarding the use of sustainably sourced agricultural residues and woody biomass as a feedstock for producing cellulosic alcohols and energy-dense renewable liquid hydrocarbons.

  • On October 25, 2021, ADM, a global leader in nutrition and agricultural origination and processing, and Gevo signed a MoU to support the production of sustainable aviation fuel and other low carbon-footprint hydrocarbon fuels.

  • On October 12, 2021, Gevo and Axens North America, Inc. (“Axens”) entered into an agreement that establishes a strategic alliance aimed at accelerating the commercialization of sustainable ethanol-to-jet projects in the United States.

  • In December 2021, Argonne National Laboratory (“ANL”), a U.S. Department of Energy multidisciplinary science and engineering research center, reported the preliminary results of its life cycle analysis of Gevo’s planned Net-Zero plant to Gevo. ANL’s preliminary findings were consistent with Gevo’s findings that when renewable energy is used to power production processes, and the corn is produced with climate smart ag practices that drive the carbon intensity score of corn down, then the sustainable aviation fuel (“SAF”) that would be produced could achieve net-zero life-cycle emissions when measured using ANL’s GREET Model. When carbon capture sequestration technology is added as a de-carbonization tool, the life-cycle emissions should be negative according to the model. ANL is currently working through the scientific peer reviewed publication process.

  • In January 2022, Gevo’s renewable natural gas (“RNG”) facilities in NW Iowa began to start-up operations. The start-up process is expected to take a few months and reach a steady state operation in the second quarter of 2022 which will allow time for Gevo to apply for credits under the federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon Fuel Standard (“LCFS”) in California, including verification of carbon intensity levels and other requirements. Depending on the timing of the qualification and approval processes for obtaining credits under RFS and LCFS, Gevo expects to generate biogas revenues starting in the second quarter of 2022 and sales of credits under RFS and LCFS in the second half of 2022. Gevo expects that the RNG Project EBITDA1 should generate approximately $16-22 million per year by 2023 depending on a variety of assumptions, including the value of credits under RFS and LCFS.

2021 Fourth Quarter Financial Highlights

  • Ended the quarter with cash, cash equivalents, restricted cash and marketable securities of $475.8 million compared to $522.4 as of the end Q3 2021

  • Revenue of $0.1 million for the quarter compared to $0.5 million in Q4 2020

  • Loss from operations of ($16.5) million for the quarter compared to ($7.6) million in Q4 2020

  • Non-GAAP cash EBITDA loss2 of ($10.9) million for the quarter compared to ($5.7) million in Q4 2020

  • Net loss per share of ($0.08) for the quarter compared to ($0.15) in Q4 2020

  • Non-GAAP adjusted net loss per share3 of ($0.08) for the quarter compared to ($0.07) in Q4 2020

Net-Zero 1 Update

Gevo continues to make progress on the design and engineering work related to its Net-Zero 1 Project. As a result of Gevo’s agreement and relationship with Axens, Gevo recently made the decision to utilize ethanol fermentation technology instead of isobutanol fermentation technology to produce SAF and other renewable hydrocarbon products at Net-Zero 1.

Gevo believes that there are several advantages of using ethanol fermentation technology at Net-Zero 1, including the following:

  • Lower capital costs per gallon of hydrocarbon produced

  • Increased production capacity of renewable hydrocarbons from 45MGPY to 60MGPY

  • Process guarantees from Axens on the conversion of ethanol into SAF

  • Lower technology and execution risk which are expected to make debt financing more readily available

  • Leverages previous Net-Zero 1 engineering and design work from 2021

  • The hydrocarbon plant design for Net-Zero 1 can be used at any ethanol plant that meets certain sustainability and carbon intensity score requirements which should enable Gevo to grow more rapidly to meet demand

Gevo currently expects to construct Net-Zero 1 in Lake Preston, South Dakota. In addition to Lake Preston, Gevo has identified several other attractive greenfield sites that are at least as attractive as Lake Preston from the standpoint of fundamental economics, access to sustainable feedstocks, deployment of renewable energy and transportation of finished product to market. Lake Preston is the furthest developed of the sites that Gevo has identified for Net-Zero 1. Gevo expects final site selection for Net-Zero 1 to occur later in 2022.

Gevo is targeting Net-Zero 1 to be mechanically complete in late 2024 and operational in 2025. Based on current assumptions, including those around future commodity pricing and future environmental benefit credit values, and preliminary engineering work, Gevo estimates Net-Zero 1 will have a fully installed and non-recourse project financed capital cost of approximately $900 million, to generate approximately $150-200 million of Net-Zero 1 Project EBITDA4 per year. Because Gevo can leverage a substantial amount of the work already done for Net-Zero 1, Gevo expects to order long lead equipment and begin site preparation in late 2022 with full construction commencing in 2023.

Commenting on the fourth quarter of 2021 and recent corporate developments, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “It’s an exciting time to work for Gevo with plans moving forward on our first of its kind, fully-decarbonized alcohol-to-SAF plant that will produce commercial volumes of SAF. Our relationship with Axens is bearing fruit. Knowing how to convert ethanol into net-zero SAF and other hydrocarbons is key to our growth strategy, especially with the potential commercial relationships with ADM and other partners.”

Dr. Gruber continued, “Over the last twelve months, we’ve hired the leaders for our Net-Zero 1 Project. We are focused on engineering Net-Zero 1 so that we can get it built and operating.”

Fourth Quarter 2021 Financial Results

Revenue for the three months ended December 31, 2021 was $0.1 million compared with $0.5 million in the same period in 2020.

During the three months ended December 31, 2021, hydrocarbon revenue was nil compared to $0.4 million during the three months ended December 31, 2020. Gevo’s hydrocarbon revenue is comprised of sales of SAF and renewable premium gasoline.

During the three months ended December 31, 2021 and 2020, no significant revenue was derived at Gevo’s production facility in Luverne, Minnesota (the “Luverne Facility”) related to ethanol sales and related products.

As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains in March 2020. As previously announced, the Luverne Facility is currently producing isobutanol that will be used as a feedstock for us to produce SAF and renewable premium gasoline to fulfill existing sales contracts. We also expect to utilize some of the isobutanol produced to develop certain isobutanol specialty markets. These renewable hydrocarbons will be produced at Gevo’s demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”).

Cost of goods sold was $2.8 million for the three months ended December 31, 2021, compared with $0.9 million in the same period in 2020. We began producing isobutanol during the third quarter 2021 resulting in higher production costs. The cost of goods sold was significantly higher for isobutanol without the coproduction of ethanol as operated in previous years as we worked to improve and refine our production processes. Cost of goods sold included costs associated with the production of isobutanol, SAF and isooctane as well as maintenance of the Luverne Facility and the South Hampton Facility.

Depreciation and amortization for the three months ended December 31, 2021 totaled approximately $1.1 million related to production costs. Depreciation and amortization for the three months ended December 31, 2021 totaled approximately $0.5 million related to research and development expense and sales, general and administrative expense.

Gross loss was ($3.8) million for the three months ended December 31, 2021, compared with a ($1.4) million gross loss in the same period in 2020.

Research and development expense increased by approximately $1.1 million during the three months ended December 31, 2021, compared with the three months ended December 31, 2020, due primarily to an increase in personnel and recruiting costs related to increased headcount and stock-based compensation as we work to improve our process for growing and fermenting yeast strains.

Selling, general and administrative expense increased by approximately $4.5 million during the three months ended December 31, 2021, compared with the three months ended December 31, 2020, due primarily to increases in personnel costs and recruiting related to increased headcount and stock-based compensation, increased professional fees, higher costs for insurance and increased consulting fees related to documenting our compliance with Section 404(b) of the Sarbanes-Oxley Act.

Preliminary stage project costs related to our RNG and Net-Zero projects were approximately $2.1 million during the three months ended December 31, 2021 compared to $1.0 million for the three months ended December 31, 2020. During the three months ended December 31, 2021, the preliminary stage project costs were primarily related to consulting for preliminary engineering costs and for personnel expenses to support the growth in business activity at our Net-Zero projects. During the three months ended December 31, 2020, the preliminary stage project costs were primarily related to consulting for preliminary engineering costs and for personnel expenses to support the growth in business activity at our RNG project. During the three months ended December 31, 2021, we began capitalizing our Net-Zero 1 project costs after completing certain front-end engineering studies and determining it was probable that we would build the Net-Zero 1 project.

Loss from operations in the three months ended December 31, 2021 was ($16.5) million, compared with a ($7.6) million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss5 in the three months ended December 31, 2021 was ($10.9) million, compared with a ($5.7) million non-GAAP cash EBITDA loss in the same period in 2020.

Interest expense decreased by $0.4 million in the three months ended December 31, 2021 as compared to the same period in 2020, due to the conversion of all Gevo’s 12% convertible senior secured notes due 2020/2021 to common stock during 2020.

Interest and dividend income during the three months ended December 31, 2021 increased $0.2 million compared to the three months ended December 31, 2020, primarily due to income received on marketable securities and restricted cash.

Gevo incurred a net loss for the three months ended December 31, 2021 of ($16.5) million, compared with a net loss of ($18.1) million during the same period in 2020. Non-GAAP adjusted net loss6 for the three months ended December 31, 2021 was ($16.5) million, compared with a non-GAAP adjusted net loss of ($8.1) million during the same period in 2020.

Cash, cash equivalents, restricted cash and marketable securities at December 31, 2021 totaled $475.8 million compared to $522.4 as of the end Q3 2021.

Webcast and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Heather Manuel, Vice President – Investor Relations & Communications and John Richardson, Investor Relations Manager. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (833) 729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.) and reference the access code 3465026# or through the event weblink https://edge.media-server.com/mmc/p/38zwqbqa.

A replay of the call and webcast will be available two hours after the conference call ends on February 24, 2022. To access the replay, please visit https://edge.media-server.com/mmc/p/38zwqbqa. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s business development activities, Gevo’s agreement with Kolmar Americas Inc., Gevo’s Net-Zero Projects, Gevo’s RNG project, fermentation technologies, the status of the engineering and design work for the Net-Zero 1 Project, the timing of Net-Zero 1, projections concerning Net-Zero 1, including projected capital costs, projected internal rates of return and projected EBITDA, Gevo’s ability to the commercialize its projects, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2021 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (“GAAP”), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss excludes depreciation and amortization and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

1 RNG Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.
2 Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.
3 Adjusted net loss per share is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss per share. A reconciliation of adjusted net loss per share to GAAP net loss per share is provided in the financial statement tables following this release.
4 Net-Zero 1 Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.
5 Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.
6 Adjusted net loss is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss. A reconciliation of adjusted net loss to GAAP net loss is provided in the financial statement tables following this release.

Gevo, Inc.
Condensed Consolidated Balance Sheets Information
(Unaudited, in thousands, except share and per share amounts)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$

40,833

$

78,338

Marketable securities (current)

275,340

-

Restricted cash (current)

25,032

-

Accounts receivable, net

978

527

Inventories

2,751

2,491

Prepaid expenses and other current assets

6,857

1,914

Total current assets

351,791

83,270

Property, plant and equipment, net

139,141

66,408

Long-term marketable securities

64,396

-

Long-term restricted cash

70,168

-

Operating right-of-use assets

2,414

133

Finance right-of-use assets

27,297

176

Intangible assets, net

8,938

114

Deposits and other assets

2,331

1,998

Total assets

$

666,476

$

152,099

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$

28,288

$

3,943

Operating lease liabilities (current)

772

172

Financing lease liabilities (current)

3,413

10

Loans payable - other (current)

158

807

Total current liabilities

32,631

4,932

2021 Bonds payable (long-term)

66,486

-

Loans payable - other (long-term)

318

447

Operating lease liabilities (long-term)

1,902

-

Finance lease liabilities (long-term)

17,797

162

Other long-term liabilities

87

179

Total liabilities

119,221

5,720

Commitments and Contingencies

Stockholders' Equity

Common Stock, $0.01 par value per share; 250,000,000 authorized, 201,988,662 and 128,138,311 shares issued and outstanding at December 31, 2021 and 2020, respectively.

2,020

1,282

Additional paid-in capital

1,103,224

643,269

Accumulated other comprehensive loss

(614

)

-

Accumulated deficit

(557,375

)

(498,172

)

Total stockholders' equity

547,255

146,379

Total liabilities and stockholders' equity

$

666,476

$

152,099

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

Three Months Ended December 31,

2021

2020

2019

Revenue and cost of goods sold

Ethanol sales and related products, net

$

34

$

5

$

5,931

Hydrocarbon revenue

20

416

957

Other revenue

-

110

-

Total revenues

54

531

6,888

Cost of goods sold (exclusive of depreciation shown below)

2,791

866

7,836

Depreciation and amortization

1,104

1,094

1,591

Gross loss

(3,841

)

(1,429

)

(2,539

)

Operating Expenses

Research and development expense

2,570

1,507

271

Selling, general and administrative expense

7,546

3,010

3,155

Preliminary stage project costs

2,069

998

205

Loss on disposal of assets

-

587

23

Depreciation and amortization

452

56

57

Total operating expenses

12,637

6,158

3,711

Loss from operations

(16,478

)

(7,587

)

(6,250

)

Other income (expense)

Interest expense

(173

)

(535

)

(611

)

Interest and dividend income

183

26

32

(Loss) on modification of 2020 Notes

-

(6

)

-

(Loss) on conversion of 2020/21 Notes to common stock

-

(1,373

)

-

(Loss) from change in fair value of 2020/21 Notes embedded derivative liability

-

(8,578

)

-

Other income (expense), net

(45

)

(1

)

10

Total other income (expense)

(35

)

(10,467

)

(569

)

Net loss

$

(16,513

)

$

(18,054

)

$

(6,819

)

Net loss per share - basic and diluted

$

(0.08

)

$

(0.15

)

$

(0.50

)

Weighted-average number of common shares outstanding - basic and diluted

201,892,596

120,017,120

13,659,944

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

Year Ended December 31,

2021

2020

2019

Revenue and cost of goods sold

Ethanol sales and related products, net

$

50

$

3,809

$

22,115

Hydrocarbon revenue

483

1,501

2,338

Other revenue

178

226

34

Total revenues

711

5,536

24,487

Cost of goods sold (exclusive of depreciation shown below)

7,687

9,313

30,286

Depreciation and amortization

4,478

5,690

6,447

Gross loss

(11,454

)

(9,467

)

(12,246

)

Operating Expenses

Research and development expense

6,775

3,511

3,868

Selling, general and administrative expense

25,493

11,192

9,823

Preliminary stage project costs

10,581

1,698

205

Loss on disposal of assets

5,137

625

4

Depreciation and amortization

650

214

209

Restructuring expense

-

254

-

Total operating expenses

48,636

17,494

14,109

Loss from operations

(60,090

)

(26,961

)

(26,355

)

Other income (expense)

Gain on forgiveness of SBA Loans

641

-

-

Interest expense

(251

)

(2,094

)

(2,738

)

Interest and dividend income

571

102

33

(Loss) on modification of 2020 Notes

-

(732

)

-

(Loss) on conversion of 2020/21 Notes to common stock

-

(1,916

)

-

(Loss) from change in fair value of 2020/21 Notes embedded derivative liability

-

(8,607

)

394

Other income (expense), net

(74

)

22

6

Total other income (expense)

887

(13,225

)

(2,305

)

Net loss

$

(59,203

)

$

(40,186

)

$

(28,660

)

Net loss per share - basic and diluted

$

(0.30

)

$

(0.71

)

$

(2.35

)

Weighted-average number of common shares outstanding - basic and diluted

195,794,606

56,881,586

12,177,906

Gevo, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except share and per share amounts)

Three Months Ended December 31,

2021

2020

2019

Net Loss

$

(16,513

)

$

(18,054

)

$

(6,815

)

Other comprehensive income (loss):

Unrealized (loss) on available-for-sale securities, net of tax

(262

)

-

-

Adjustment for net (loss) realized and included in net income

(56

)

-

-

Total change in unrealized (loss) on marketable debt securities

(318

)

-

-

Comprehensive loss

$

(16,831

)

$

(18,054

)

$

(6,815

)

Year Ended December 31,

2021

2020

2020

Net Loss

$

(59,203

)

$

(40,186

)

$

(28,660

)

Other comprehensive income (loss):

Unrealized (loss) on available-for-sale securities, net of tax

(524

)

-

-

Adjustment for net (loss) realized and included in net income

(90

)

-

-

Total change in unrealized (loss) on marketable debt securities

(614

)

-

-

Comprehensive loss

$

(59,817

)

$

(40,186

)

$

(28,660

)

Gevo, Inc.
Condensed Consolidated Statements of Stockholders’ Equity Information
(Unaudited, in thousands, except share amounts)

Common Stock

Paid-In Capital

Comprehensive Loss

Accumulated Deficit

Stockholders' Equity

Shares

Amount

Balance, December 31, 2018

8,640,583

$

86

$

518,027

$

-

$

(429,326

)

$

88,787

Issuance of common stock, net of issue costs

3,965,688

40

11,317

-

-

11,357

Non-cash stock-based compensation

-

-

1,221

-

-

1,221

Issuance of common stock under stock plans, net of taxes

1,476,961

15

(216

)

-

-

(201

)

Net loss

-

-

-

-

(28,660

)

(28,660

)

Balance, December 31, 2019

14,083,232

141

530,349

-

(457,986

)

72,504

Issuance of common stock and common stock warrants, net of issue costs

46,290,808

463

69,614

-

-

70,077

Issuance of common stock upon exercise of warrants

53,678,400

537

16,545

-

-

17,082

Issuance of common stock upon conversion of 2020/21 Notes

9,842,080

99

24,958

-

-

25,057

Issuance of common stock in exchange for services rendered

101,730

1

93

-

-

94

Non-cash stock-based compensation

-

-

2,101

-

-

2,101

Issuance of common stock under stock plans, net of taxes

4,142,061

41

(391

)

-

-

(350

)

Net loss

-

-

-

-

(40,186

)

(40,186

)

Balance December 31, 2020

128,138,311

1,282

643,269

-

(498,172

)

146,379

Issuance of common stock, net of issue costs

68,170,579

682

456,765

-

-

457,447

Issuance of common stock upon exercise of warrants

1,866,758

18

1,103

-

-

1,121

Non-cash stock-based compensation

-

-

7,700

-

-

7,700

Issuance of common stock under stock plans, net of taxes

3,813,014

38

(5,613

)

-

-

(5,575

)

Other comprehensive loss

-

-

-

(614

)

-

(614

)

Net loss

-

-

-

-

(59,203

)

(59,203

)

Balance, December 31, 2021

201,988,662

$

2,020

$

1,103,224

$

(614

)

$

(557,375

)

$

547,255


Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

Three Months Ended December 31,

2021

2020

2019

Operating Activities

Net loss

$

(16,513

)

$

(18,054

)

$

(6,815

)

Adjustments to reconcile net loss to net cash used in operating activities:

Loss from change in fair value of 2020/21 Notes embedded derivative liability

-

8,578

-

Loss on conversion of 2020/21 Notes to common stock

-

1,373

-

Loss on disposal of assets

-

587

23

Stock-based compensation

4,051

778

411

Depreciation and amortization

1,556

1,150

1,807

Non-cash lease expense

45

17

23

Non-cash interest expense

(28

)

155

257

Changes in operating assets and liabilities:

Accounts receivable

(271

)

(157

)

(757

)

Inventories

(409

)

295

(239

)

Prepaid expenses and other current assets, deposits and other assets

1,330

1,395

(1,801

)

Accounts payable, accrued expenses and long-term liabilities

(4,604

)

(874

)

1,050

Net cash used in operating activities

(14,843

)

(4,757

)

(6,041

)

Investing Activities

Acquisitions of property, plant and equipment

(28,707

)

(4,149

)

(210

)

Acquisition of patents

(170

)

-

-

Proceeds from sale marketable securities

45,242

-

-

Proceeds from sale of property, plant and equipment

-

-

13

Net cash used in investing activities

16,365

(4,149

)

(197

)

Financing Activities

Debt and equity offering costs

(36

)

(200

)

(54

)

Proceeds from issuance of common stock and common stock warrants

1,824

6,429

1,942

Proceeds from the exercise of warrants

2

435

-

Net settlement of common stock under stock plans

(1,904

)

(19

)

-

Payment of loans payable - other

(56

)

(20

)

(292

)

Payment of finance lease liabilities

(1,492

)

(2

)

-

Net cash provided by financing activities

(1,662

)

6,623

1,596

Net (decrease) in cash and cash equivalents and restricted cash

(140

)

(2,283

)

(4,642

)

Cash, cash equivalents and restricted cash

Beginning of period

136,173

80,621

20,944

End of period

$

136,033

$

78,338

$

16,302

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

Year to Date December 31,

2021

2020

2019

Operating Activities

Net loss

$

(59,203

)

$

(40,186

)

$

(28,660

)

Adjustments to reconcile net loss to net cash used in operating activities:

Loss (gain) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability

-

8,607

(394

)

Loss on conversion of 2020/21 Notes to common stock

-

1,916

-

Loss on disposal of assets

5,137

625

4

(Gain) on forgiveness of SBA Loans

(641

)

-

-

Stock-based compensation

9,874

2,125

1,349

Depreciation and amortization

5,128

5,904

6,656

Non-cash lease expense

52

62

48

Non-cash interest expense

37

761

1,346

Changes in operating assets and liabilities:

Accounts receivable

(257

)

608

(609

)

Inventories

(259

)

945

(35

)

Prepaid expenses and other current assets, deposits and other assets

(3,133

)

782

(1,824

)

Accounts payable, accrued expenses and long-term liabilities

(271

)

(1,487

)

1,280

Net cash used in operating activities

(43,536

)

(19,338

)

(20,839

)

Investing Activities

Acquisitions of property, plant and equipment

(59,662

)

(5,905

)

(5,989

)

Acquisition of patents

(9,170

)

-

-

Proceeds from sale marketable securities

79,574

-

-

Purchase of marketable securities

(422,362

)

-

-

Proceeds from sale of property, plant and equipment

-

-

32

Investment in Juhl

-

-

(1,500

)

Net cash used in investing activities

(411620

)

(5,905

)

(7,457

)

Financing Activities

Proceeds from issuance of 2021 Bonds

68,995

-

-

Debt and equity offering costs

(34,955

)

(6,370

)

(232

)

Proceeds from issuance of common stock and common stock warrants

489,373

76,414

11,589

Proceeds from the exercise of warrants

1,121

17,082

-

Net settlement of common stock under stock plans

(7,041

)

(350

)

(201

)

Payment of loans payable - other

(154

)

(501

)

(292

)

Payment of finance lease liabilities

(4,488

)

(2

)

-

Proceeds from SBA Loans

-

1,006

-

Net cash provided by financing activities

512,851

87,279

10,864

Net increase (decrease) in cash and cash equivalents and restricted cash

57,695

62,036

(17,432

)

Cash, cash equivalents and restricted cash

Beginning of period

78,338

16,302

33,734

End of period

$

136,033

$

78,338

$

16,302

Gevo, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited, in thousands, except share and per share amounts)

Three Months Ended December 31,

Non-GAAP Cash EBITDA:

2021

2020

2019

Loss from operations

$

(16,478

)

$

(7,587

)

$

(6,250

)

Stock-based compensation

4,051

778

411

Depreciation and amortization

1,556

1,150

1,807

Non-GAAP cash EBITDA

$

(10,871

)

$

(5,659

)

$

(4,032

)

Non-GAAP Adjusted Net Loss:

Net loss

$

(16,513

)

$

(18,054

)

$

(6,819

)

Adjustments:

(Loss) on conversion of 2020/21 Notes to common stock

-

(1,373

)

-

(Loss) from change in fair value of 2020/21 Notes embedded derivative liability

-

(8,578

)

-

Total adjustments

-

(9,951

)

-

Non-GAAP Net Income (Loss)

$

(16,513

)

$

(8,103

)

$

(6,819

)

Non-GAAP adjusted net loss per share - basic and diluted

$

(0.08

)

$

(0.07

)

$

(0.50

)

Weighted-average number of common shares outstanding - basic and diluted

201,892,596

120,017,120

13,659,944

Non-GAAP Cash EBITDA:

Years Ended December 31,

2021

2020

2019

Loss from operations

$

(60,090

)

$

(26,961

)

$

(26,355

)

Stock-based compensation

9,874

2,125

1,349

Depreciation and amortization

5,128

5,904

6,656

Non-GAAP cash EBITDA

$

(45,088

)

$

(18,932

)

$

(18,350

)

Non-GAAP Adjusted Net Loss:

Net loss

Net loss

$

(59,203

)

$

(40,186

)

$

(28,660

)

Adjustments:

(Loss) on conversion of 2020/21 Notes to common stock

-

(1,916

)

-

(Loss) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability

-

(8,607

)

394

Total adjustments

-

(10,523

)

394

Non-GAAP Net Income (Loss)

$

(59,203

)

$

(29,663

)

$

(29,054

)

Non-GAAP adjusted net loss per share - basic and diluted

$

(0.30

)

$

(0.52

)

$

(2.39

)

Weighted-average number of common shares outstanding - basic and diluted

195,794,606

56,881,586

12,177,906

Investor and Media Contact
Heather Manuel
+1 720-418-0085
IR@gevo.com