AEMETIS, INC Revenue Disclosure

11. Revenue and Accounts Receivable

 

California Ethanol: We sell most of our fuel ethanol segment products to J.D. Heiskell which sells them to third parties designated by us. We invoice J.D. Heiskell each business day with payment due upon invoicing, with no variable consideration, and no financing options. We record revenue as invoiced, which is when performance obligations have been met, and do not collect any advance payments for products at the ethanol segment, so there is no unearned revenue as of December 31, 2025. We also buy our corn feedstock from J.D. Heiskell.  Transaction prices for ethanol sales and corn purchases are based on daily market prices, and J.D. Heiskell pays us the net balance between ethanol and other product sales and our corn purchases. We record the full purchase cost as costs of goods sold. There are no significant obligations for returns, refunds, or warranties in the ethanol segment. 

 

Given the similarity of the individual sales transactions with J.D. Heiskell, we have assessed them as a portfolio of similar contracts. The performance obligation for ethanol is satisfied at the point in time of delivery of the physical product to our finished goods tank leased by J.D. Heiskell, at which point the customer has the ability to direct the use of the product and receive substantially all of the benefits, and the risk of loss passes to the customer, and thus we are the principal in the ethanol segment sales to J.D. Heiskell. The transaction price is determined based on daily market prices and quarterly contract pricing negotiated by Murex for its customers for ethanol and based on dry distillers' market and local demand by our marketing partner A.L. Gilbert Company (“A.L. Gilbert”) for WDG. The transaction price is allocated to one performance obligation. For the other ethanol segment products, our performance obligations are satisfied at the point in time when the product leaves the Keyes Plant premises on the transportation truck, at which point the customer has the ability to direct the use of the product and receive substantially all of the benefits, and the risk of loss passes to the customer.

 

The following table shows our sales in California Ethanol by product category:

 

California Ethanol		For the Year Ended December 31,
		2025				2024
Ethanol sales		$	115,830			$	118,878
Wet distiller's grains sales			29,981				36,214
Other sales			7,423				6,664
		$	153,234			$	161,756

 

California Dairy Renewable Natural Gas: Our facilities as of  December 31, 2025 consist of twelve anaerobic digesters that process feedstock from dairies into biogas, a 36-mile collection pipeline leading to a central upgrading hub, and an interconnect to inject the gas into the utility natural gas pipeline for delivery to customers for use as transportation fuel.  We recognize revenue from gas sales concurrent with injection of gas into the pipeline, at which point our performance obligation has been met. In connection with dispensing the RNG, we also generate sellable credits under the federal Renewable Fuel Standard (referred to as "D3 RINs"), and the California Low Carbon Fuel Standard credits ("LCFS"). We recognize revenue from sales of D3 RINs and LCFS credits at the time we sell the credits under ASC 606 guidance. We record a liability for unearned revenue on the limited occasions in which the renewable natural gas segment receives payment from customers prior to the performance obligations being fulfilled. As of  December 31, 2025 and 2024, we had $0 and $1.6 million as liabilities for unearned revenue, respectively, with the revenue for the 2024 balance recognized in January 2025 after the performance obligations were fulfilled.  

 

Dairy Renewable Natural Gas		For the Year Ended December 31,
		2025				2024
Gas sales		$	1,331			$	907
LCFS credit sales			4,736				2,922
RIN sales			8,663				9,208
Total		$	14,730			$	13,037

 

India Biodiesel: We sell products pursuant to purchase orders (written or verbal) or by contract with governmental or international parties, in which performance is satisfied at the point in time when the physical product is delivered and accepted. Given that the contracts are sufficiently similar in nature, we have assessed these contracts as a portfolio of similar contracts as allowed under the practical expedient. Doing so does not result in a materially different outcome compared to individually accounting for each contract. All domestic and international deliveries are subject to certain specifications as identified in contracts. The transaction price is determined based on reference market prices for biodiesel, refined glycerin, and PFAD net of taxes. Transaction price is allocated to one performance obligation. The India segment records a liability for advance payments received from customers, and revenue is generally recognized shortly after each reporting period once performance obligations are fulfilled; the balance for unearned income at the India segment is not material to our company. 

 

The following table shows our sales in India by product category:

  

India Biodiesel		For the Year Ended December 31,
		2025				2024
Biodiesel sales		$	23,511			$	86,653
Other sales			6,151				6,194
		$	29,662			$	92,847

 

Accounts receivable for all segments represent invoicing for products with varying payment terms, but with no variable consideration or financing. The opening balance of accounts receivable for all segments as of January 1, 2024, was $8.6 million, and the closing balances as of December 31, 2025 and 2024, were $0.5 million and $1.8 million, respectively.