FutureFuel Corp. Segments Disclosure

21.	Segment information

 

The Company has two reportable segments organized along similar product lines – chemicals and biofuels. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2. The chief operating decision maker (“CODM”) is Roeland Polet, the chief executive officer. The CODM reviews the significant components for each of our segments. The CODM evaluates the performance of each reportable segment and decides how to allocate resources based on segment gross profit (loss) which includes the revenue and expenses that are directly attributable to management of each segment. The CODM uses segment gross profit (loss) to assess the income generated by each reportable segment and to decide which reportable segment to reinvest profits or pay dividends. Segment gross profit (loss) is also used to analyze performance against the budget and the Company’s competitors.

  

Chemicals

 

The Company’s chemicals segment manufactures diversified chemical products that are sold to third party customers. This segment comprises two product groups: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals). Included in this segment is warehouse lease rental revenue from a warehouse that was originally acquired for chemical storage.

 

Biofuels

 

The Company’s biofuels segment manufactures and markets biodiesel. Biodiesel revenues are generated through the sale of biodiesel to customers through the Company’s distribution network at the Batesville plant, through distribution facilities available at leased oil storage facilities, and through a network of remotely located tanks. Results of the Biofuels segment also reflect the sale of biodiesel blends with petrodiesel, petrodiesel with no biodiesel added, RINs, biodiesel production byproducts, and revenue and profits from Legacy Regional Transport.

 

Summary of business by segment 

 

		For the Year Ended December 31, 2025
		Chemical				Biofuel				Total
Revenue		$	59,565			$	36,177			$	95,742
Less:
Cost of goods sold			71,514				61,328				132,842
Distribution			1,058				1,267				2,325
Segment gross profit (loss)		$	(13,007	)		$	(26,418	)		$	(39,425	)
Reconciliation of Segment gross profit (loss) to Net Income before income taxes:
Selling, general, and administrative expenses										$	9,699
Research and development expenses											3,866
Other income, net											(3,758	)
Net (loss) before income taxes										$	(49,232	)

 

		For the Year Ended December 31, 2024
		Chemical				Biofuel				Total
Revenue		$	80,007			$	163,332			$	243,339
Less:
Cost of goods sold			56,627				164,299				220,926
Distribution			748				2,021				2,769
Segment gross profit (loss)		$	22,632			$	(2,988	)		$	19,644
Reconciliation of Segment gross profit (loss) to Net Income before income taxes:
Selling, general, and administrative expenses										$	9,279
Research and development expenses											3,993
Other income, net											(9,923	)
Net income before income taxes										$	16,295

 

		For the Year Ended December 31, 2023
		Chemical				Biofuel				Total
Revenue		$	79,333			$	288,917			$	368,250
Less:
Cost of goods sold			48,650				275,346				323,996
Distribution			747				2,528				3,275
Segment gross profit		$	29,936			$	11,043			$	40,979
Reconciliation of Segment gross profit (loss) to Net Income before income taxes:
Selling, general, and administrative expenses										$	9,213
Research and development expenses											4,398
Other expense, net											(10,015	)
Net income before income taxes										$	37,383

 

Depreciation is allocated to segment cost of goods sold based on plant usage. Total assets and capital expenditures of the Company have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.