v3.26.1
Note 12 - Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

12)

SEGMENT INFORMATION

 

FutureFuel has two reportable segments organized along similar product groups – chemicals and biofuels. The chief operating decision maker ("CODM”) is Roeland Polet, our 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

 

FutureFuel’s chemical segment manufactures diversified chemical products that are sold externally to third party customers. This segment is composed of two components: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals).

 

Biofuels

 

FutureFuel’s biofuel segment primarily 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 and through a network of remotely located tanks. Biofuel revenues also include the sale of biodiesel blends with petrodiesel, petrodiesel with no biodiesel added, internally generated Renewable Identification Numbers (“RINs”), biodiesel production byproducts, and revenue and profits from Legacy Regional Transport. Biodiesel selling prices and profitability can at times fluctuate based on the timing of unsold, internally generated RINs. FutureFuel does not allocate production costs to internally generated RINs. The benefit derived from the eventual sale of the RINs is not reflected in results of operations until such time as the RINs sale has been completed, which may lead to variability in reported operating results.

 

As of March 31, 2026, FutureFuel held 0.2 million RINs with a fair market value of $298. Comparatively, at March 31, 2025, FutureFuel held 2.3 million RINs with a fair market value of $2,077 and at December 31, 2025, 0.4 million RINs were held with a fair market value of $379. The fair value of RINs is considered a Level 1 input and has no cost.  

 

Summary of business by segment

 

  

Three Months Ended March 31, 2026

 
  

Chemical

  

Biofuel

  

Total

 

Revenue

 $19,632  $12,320  $31,952 
             

Less:

            

Cost of goods sold

  21,794   25,218   47,012 

Distribution

  357   441   798 

Segment gross loss

 $(2,519) $(13,339) $(15,858)
             

Reconciliation of Segment gross loss to Net loss before income taxes:

            

Selling, general, and administrative expenses

         $4,145 

Research and development expenses

          840 

Other income, net

          (269)

Net loss before income taxes

         $(20,574)

 

  

Three Months Ended March 31, 2025 (As Adjusted (Note 1))

 
  

Chemical

  

Biofuel

  

Total

 

Revenue

 $9,365  $8,173  $17,538 
             

Less:

            

Cost of goods sold

  15,140   17,047   32,187 

Distribution

  240   299   539 

Segment gross loss

 $(6,015) $(9,173) $(15,188)
             

Reconciliation of Segment gross loss to Net loss before income taxes:

            

Selling, general, and administrative expenses

         $2,884 

Research and development expenses

          1,391 

Other income, net

          (1,201)

Net loss before income taxes

         $(18,262)

 

Depreciation is allocated to segment cost of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel 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.