ff20240930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended September 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to ___________
	Commission file number: 0-52577

(Exact Name of Registrant as Specified in Its Charter)

Delaware		20-3340900
(State or Other Jurisdiction of		(IRS Employer Identification No.)
Incorporation or Organization)

8235 Forsyth Blvd., Suite 400, St Louis, Missouri		63105
(Address of Principal Executive Offices)		(Zip Code)

	(314) 854-8352
	(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FF	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer	☑
Non-accelerated filer ☐	Smaller reporting company	☑
	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of November 8, 2024: 43,763,243

PART I FINANCIAL INFORMATION

Item 1. Financial Statements.

FutureFuel Corp.

Consolidated Balance Sheets

(Dollars in thousands)

		(Unaudited)
	*September 30, 2024*		*December 31, 2023*
Assets
Cash and cash equivalents	$	133,398	$	219,444
Accounts receivable, inclusive of the blenders’ tax credit of $3,964 and $11,381, respectively, and net of allowances for expected credit losses of $136 and $55, respectively		15,967		28,406
Accounts receivable – related parties		-		1
Inventory, net		24,878		32,978
Income tax receivable		-		1,940
Prepaid expenses		964		4,346
Prepaid expenses – related parties		12		12
Other current assets		1,018		3,419
Total current assets		176,237		290,546
Property, plant and equipment, net		76,815		72,711
Other assets		3,414		3,824
Total noncurrent assets		80,229		76,535
Total Assets	$	256,466	$	367,081
Liabilities and Stockholders’ Equity
Accounts payable, inclusive of the blenders’ tax credit rebates due customers of $890 and $890, respectively	$	11,587	$	22,178
Accounts payable – related parties		124		42
Income tax payable		359		-
Deferred revenue – current		4,135		3,863
Dividends payable		2,626		10,503
Accrued expenses and other current liabilities		10,820		4,758
Total current liabilities		29,651		41,344
Deferred revenue – non-current		9,593		12,570
Noncurrent deferred income taxes		618		-
Other noncurrent liabilities		3,313		3,287
Total noncurrent liabilities		13,524		15,857
Total liabilities		43,175		57,201
Commitments and contingencies (See Note 13)
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding		-		-
Common stock, $0.0001 par value, 75,000,000 shares authorized, 43,763,243 shares issued and outstanding as of September 30, 2024 and December 31, 2023		4		4
Additional paid in capital		204,911		282,489
Retained earnings		8,376		27,387
Total stockholders’ equity		213,291		309,880
Total Liabilities and Stockholders’ Equity	$	256,466	$	367,081

The accompanying notes are an integral part of these consolidated financial statements.

FutureFuel Corp.

Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

(Unaudited)

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2024*			*2023*			*2024*			*2023*
Revenue	$	51,140		$	116,752		$	181,830		$	276,221
Revenue – related parties		-			-			-			20
Cost of goods sold		50,152			113,328			165,644			257,890
Cost of goods sold – related parties		36			(728	)		63			(700	)
Distribution		532			244			1,939			2,018
Distribution – related parties		37			38			137			132
Gross profit		383			3,870			14,047			16,901
Selling, general, and administrative expenses
Compensation expense		1,140			1,010			3,188			3,102
Other expense		994			1,247			2,833			3,130
Related party expense		156			153			462			462
Research and development expenses		981			1,163			2,803			3,242
Total operating expenses		3,271			3,573			9,286			9,936
(Loss) income from operations		(2,888	)		297			4,761			6,965
Interest and dividend income		1,830			2,527			6,151			6,595
Interest expense		(35	)		(36	)		(104	)		(103	)
Gain on marketable securities		-			-			-			575
Other (expense) income		(105	)		-			2,533			-
Other income, net		1,690			2,491			8,580			7,067
(Loss) income before taxes		(1,198	)		2,788			13,341			14,032
Income tax (benefit) provision		(3	)		12			635			34
Net (loss) income	$	(1,195	)	$	2,776		$	12,706		$	13,998

(Loss) earnings per common share
Basic	$	(0.03	)	$	0.06		$	0.29		$	0.32
Diluted	$	(0.03	)	$	0.06		$	0.29		$	0.32
Weighted average shares outstanding
Basic		43,763,243			43,763,243			43,763,243			43,763,243
Diluted		43,763,243			43,765,709			43,763,243			43,765,163

Comprehensive (loss) income
Net (loss) income	$	(1,195	)	$	2,776		$	12,706		$	13,998
Other comprehensive income from unrealized net gains on available-for-sale debt securities		-			-			-			2
Income tax effect		-			-			-			(1	)
Total other comprehensive income, net of tax		-			-			-			1
Comprehensive (loss) income	$	(1,195	)	$	2,776		$	12,706		$	13,999

The accompanying notes are an integral part of these consolidated financial statements.

FutureFuel Corp.

Consolidated Statements of Stockholders’ Equity

(Dollars in thousands)

(Unaudited)

	*For the Nine Months Ended September 30, 2024*
					*Accumulated*
					*Other*		*Additional*						*Total*
	*Common Stock*				*Comprehensive*		*paid-in*			*Retained*			*Stockholders’*
	*Shares*		*Amount*		*Income (Loss)*		*Capital*			*Earnings*			*Equity*
Balance - December 31, 2023		43,763,243	$	4	$	-	$	282,489		$	27,387		$	309,880
Cash dividends declared, $2.50 per common share		-		-		-		(77,691	)		(31,717	)		(109,408	)
Stock based compensation		-		-		-		22			-			22
Net income		-		-		-		-			4,330			4,330
Balance - March 31, 2024		43,763,243	$	4	$	-	$	204,820		$	-		$	204,824
Net income		-		-		-		-			9,571			9,571
Balance - June 30, 2024		43,763,243	$	4	$	-	$	204,820		$	9,571		$	214,395
Stock based compensation		-	$	-	$	-		91			-			91
Net loss		-		-		-		-			(1,195	)		(1,195	)
Balance - September 30, 2024		43,763,243	$	4	$	-	$	204,911		$	8,376		$	213,291

	*For the Nine Months Ended September 30, 2023*
					*Accumulated*
					*Other*			*Additional*					*Total*
	*Common Stock*				*Comprehensive*			*paid-in*		*Retained*			*Stockholders’*
	*Shares*		*Amount*		*(Loss) Income*			*Capital*		*Earnings*			*Equity*
Balance - December 31, 2022		43,763,243	$	4	$	(1	)	$	282,489	$	508		$	283,000
Other comprehensive income		-		-		17			-		-			17
Net income		-		-		-			-		21,081			21,081
Balance - March 31, 2023		43,763,243	$	4	$	16		$	282,489	$	21,589		$	304,098
Other comprehensive loss		-		-		(16	)		-		-			(16	)
Net loss		-		-		-			-		(9,859	)		(9,859	)
Balance - June 30, 2023		43,763,243	$	4	$	-		$	282,489	$	11,730		$	294,223
Net income		-		-		-			-		2,776			2,776
Balance - September 30, 2023		43,763,243	$	4	$	-		$	282,489	$	14,506		$	296,999

The accompanying notes are an integral part of these consolidated financial statements.

FutureFuel Corp.

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

	*Nine Months Ended September 30,*
	*2024*			*2023*
Cash flows from operating activities
Net income	$	12,706		$	13,998
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		6,923			7,736
Amortization of deferred financing costs		77			75
Provision for deferred income taxes		618			-
Change in fair value of equity securities		-			(3,117	)
Change in fair value of derivative instruments		1,439			3,523
Loss on the sale of investments		-			2,543
Stock based compensation		113			-
Loss on disposal of property and equipment		24			8
Noncash interest expense		26			26
Changes in operating assets and liabilities:
Accounts receivable		12,439			(3,295	)
Accounts receivable – related parties		1			6
Inventory		8,100			(149	)
Income tax receivable		1,940			32
Prepaid expenses		3,382			2,700
Other assets		872			963
Accounts payable		(11,043	)		(14,910	)
Accounts payable – related parties		82			(800	)
Income tax payable		359			-
Accrued expenses and other current liabilities		6,062			(404	)
Deferred revenue		(2,705	)		(2,030	)
Other noncurrent liabilities		-			1,553
Net cash provided by operating activities		41,415			8,458
Cash flows from investing activities
Collateralization of derivative instruments		423			(2,991	)
Proceeds from the sale of marketable securities		-			37,701
Proceeds from the sale of property and equipment

SEC Form 10-Q filed by FutureFuel Corp.