FutureFuel Corp. Q3 2024: Assets $43.8M, Net Income $2.9K

TL;DR

**FutureFuel Q3: Assets $43.8M, Net Income $2.9K. Filing Nov 8.**

AI Summary

FutureFuel Corp. reported its Q3 2024 results, with total assets of $43,763,243 as of September 30, 2024. The company's net income for the nine months ended September 30, 2024, was $2,888. This filing covers the period ending September 30, 2024, and was submitted on November 8, 2024.

Why It Matters

This 10-Q filing provides a snapshot of FutureFuel Corp.'s financial health and performance for the third quarter of 2024, crucial for investors assessing the company's stability and profitability.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediately apparent significant negative financial events or disclosures.

Key Numbers

• $43.8M — Total Assets (As of September 30, 2024)
• $2.9K — Net Income (9 months) (For the period ended September 30, 2024)
• Q3 2024 — Reporting Period (Quarter ending September 30, 2024)

Key Players & Entities

• FutureFuel Corp. (company) — Filer
• 2024-09-30 (date) — Reporting period end date
• 2024-11-08 (date) — Filing date
• $43,763,243 (dollar_amount) — Total assets as of September 30, 2024
• $2,888 (dollar_amount) — Net income for the nine months ended September 30, 2024

FAQ

Key Financial Figures

• $0.10 — for an additional income tax credit of $0.10 per gallon on the first 15 million gall
• $1.00 — hip requirements, the maximum credit is $1.00 per gallon of nonaviation fuel. For pro

Filing Documents

• ff20240930_10q.htm (10-Q) — 1110KB
• ex_718716.htm (EX-31.1) — 13KB
• ex_718717.htm (EX-31.2) — 13KB
• ex_718718.htm (EX-32.1) — 8KB
• logo.jpg (GRAPHIC) — 8KB
• 0001437749-24-034210.txt ( ) — 4742KB
• ff-20240930.xsd (EX-101.SCH) — 42KB
• ff-20240930_cal.xml (EX-101.CAL) — 44KB
• ff-20240930_def.xml (EX-101.DEF) — 255KB
• ff-20240930_lab.xml (EX-101.LAB) — 227KB
• ff-20240930_pre.xml (EX-101.PRE) — 285KB
• ff20240930_10q_htm.xml (XML) — 677KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

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

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 1 ) SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by FutureFuel Corp. ("FutureFuel" or "the Company") in accordance and consistent with the accounting policies stated in the Company's 2023 Annual Report on Form 10 -K, as amended, inclusive of the audited consolidated financial statements, and should be read in conjunction with these consolidated financial statements. In the opinion of FutureFuel, all normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements. The unaudited consolidated financial statements have been prepared in compliance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") accounting principles generally accepted in the United States ("GAAP") for interim financial information and with instructions to Form 10 -Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements and do include amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of FutureFuel and its direct and indirect wholly owned subsidiaries; namely, FutureFuel Chemical Company; FFC Grain, L.L.C.; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C. The majority of FFC Grain, L.LC.'s assets were disposed of during the current three -month period as the idle subsidiary is being dissolved. Intercompany transactions and balances have been eliminated in consolidation. Recently Adopted Ac

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 2 ) GOVERNMENT TAX CREDITS BIODIESEL BLENDERS' TAX CREDIT, SMALL AGRI-BIODIESEL PRODUCER TAX CREDIT, and CLEAN FUEL PRODUCTION TAX CREDIT The biodiesel Blenders' Tax Credit ("BTC") provides a one dollar per gallon tax credit to the blender of biomass-based diesel with at least 0.1% petroleum-based diesel fuel. The Company records this credit as a reduction to cost of goods sold as applicable sales are made. The Further Consolidated Appropriations Act of 2020 was passed by Congress and signed into law on December 20, 2019, retroactively reinstating the BTC for 2018 and 2019 and extending it through December 31, 2022. The Inflation Reduction Act ("IRA") extended the BTC through December 31, 2024. As part of each law from which the BTC was reinstated, small agri-biodiesel producers with production capacity not in excess of 60 million gallons were eligible for an additional income tax credit of $0.10 per gallon on the first 15 million gallons of agri-biodiesel sold (the "Small Agri-biodiesel Producer Tax Credit"). The Company is eligible for this credit and recognizes the credit in the same accounting period as the benefit from the BTC. The benefit of this credit is recognized as a component of income tax (benefit) provision. The IRA created the clean fuel production credit ("CFPC") for qualifying transportation fuel produced after 2024 and sold on or before December 31, 2027. The CFPC consolidates and replaces several fuel related credits set to expire December 31, 2024, including the BTC and the Small Agri-biodiesel Producer Tax Credit. The CFPC is an income tax credit structured on a sliding scale so that producers become eligible for larger credits as the greenhouse gas ("GHG") emissions of the fuels they produce approach zero. For producers meeting the prevailing wage and registered apprenticeship requirements, the

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 3 ) REVENUE RECOGNITION The majority of revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied. Certain of the Company's custom chemical contracts within the chemical segment contain a material right as defined by ASC Topic 606, Revenue from Contracts with Customers, from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers. Each contract also has a performance obligation to transfer products with 30 -day payment terms. The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC Topic 606. The Company applies the renewal option approach in allocating the transaction price to these material rights and transfer of product. As a basis for allocating the transaction price to the material right and transfer of product, the Company estimates the expected life of the contract, the expected contractual volumes to be sold over that life, and the most likely expected sales price. Each estimate is updated quarterly on a prospective basis. Contract Assets and Liabilities: Contract assets consist of unbilled amounts typically resulting from revenue recognized through bill-and-hold arrangements. The contract assets at September 30, 2024 and December 31, 2023 consist of unbilled revenue from one customer and unbilled capital reimbursement from another customer and are recorded as accounts receivable in the consolidated balance sheets. Contract liabilities consist of

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) The following tables provide revenue from customers disaggregated by the type of arrangement and by the timing of the recognized revenue. Disaggregation of revenue - contractual and non-contractual: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Contract revenue from customers with > one-year arrangements $ 8,966 $ 8,291 $ 26,941 $ 28,318 Contract revenue from customers with < one-year arrangements 42,119 108,406 154,723 247,757 Revenue from non-contractual arrangements 55 55 166 166 Total revenue $ 51,140 $ 116,752 $ 181,830 $ 276,241 Timing of revenue : Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Bill-and-hold revenue $ 10,211 $ 10,149 $ 32,875 $ 31,504 Non-bill-and-hold revenue 40,929 106,603 148,955 244,737 Total revenue $ 51,140 $ 116,752 $ 181,830 $ 276,241 As of September 30, 2024 and December 31, 2023 , $ 4,482 and $ 4,317 of bill-and-hold revenue had not shipped, respectively. 4 ) INVENTORY The carrying values of inventory were as follows as of: September 30, 2024 December 31, 2023 At average cost (approximates current cost) Finished goods $ 7,914 $ 16,235 Work in process 748 611 Raw materials and supplies 22,732 25,532 31,394 42,378 LIFO reserve ( 6,516 ) ( 9,400 ) Total inventory $ 24,878 $ 32,978 A Last In First Out ("LIFO") liquidation of $ 935 occurred in the nine months ended September 30, 2024 . There was no liquidation in the twelve months ended December 31, 2023. 8

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 5 ) DERIVATIVE INSTRUMENTS The Company records all derivative instruments at fair value. Fair value is determined by using the closing prices of the derivative instruments on the New York Mercantile Exchange at the end of an accounting period. Changes in the fair value of derivative instruments are recognized at the end of each accounting period and recorded in the statements of operations and comprehensive income as a component of cost of goods sold. These instruments use inputs considered Level 1 holdings. Fair value accounting pronouncements include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of FutureFuel. Unobservable inputs are inputs that reflect FutureFuel's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. In order to manage commodity pri

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 6 ) MARKETABLE SECURITIES At September 30, 2024 and December 31, 2023

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