Basis of Presentation and Consolidation

These consolidated condensed financial statements include the accounts of Aemetis, Inc. and its subsidiaries. We consolidate all entities in which we hold a "controlling financial interest." For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees' operating and financial decisions. For variable interest entities ("VIEs"), the determination of which is based on the amount and characteristics of the entity's equity, we are considered to hold a controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE's economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. 

The accompanying consolidated condensed balance sheet as of  June 30, 2026, the consolidated condensed statements of operations and comprehensive loss for the three and six months ended June 30, 2026 and 2025, the consolidated condensed statements of cash flows for the six months ended June 30, 2026 and 2025, and the consolidated statements of stockholders’ deficit for the three and six months ended June 30, 2026 and 2025, are unaudited. The consolidated condensed balance sheet as of  December 31, 2025, is derived from the 2025 audited consolidated financial statements and notes thereto. All intercompany balances and transactions have been eliminated in consolidation.

The financial statements in this report should be read in conjunction with the 2025 audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended  December 31, 2025. There have been no material changes to our significant accounting policies disclosed in Note 1 - Nature of Activities and Summary of Significant Accounting Policies and other Notes to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

The accompanying consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company’s management, the unaudited interim consolidated condensed financial statements as of and for the three and six months ended June 30, 2026 and 2025, have been prepared on the same basis as the audited consolidated statements as of and for the year ended  December 31, 2025, and reflect all adjustments, consisting primarily of normal recurring adjustments, necessary for the fair presentation of its statement of financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year, or any future periods.

In the fourth quarter of 2025 we adopted a policy to account for transferable PTCs by analogy to the grant model within International Accounting Standards 20 (IAS20), to recognize the credits when earned upon production and dispensing of eligible RNG and ethanol. We presented all twelve months of 2025 PTC earnings in the fourth quarter of 2025 as income separate from revenue in the consolidated statement of operations and comprehensive loss. Starting in the first quarter of 2026, PTCs are presented within Revenues. Starting in the second quarter of 2026, accrued but unmonetized Section 45Z PTCs are presented as a separate line item on the consolidated condensed balance sheets. The prior period amount of $5.5 million as of December 31, 2025, which was previously included within other current assets, has been reclassified to conform to the current period presentation. This change in presentation had no effect on total current assets, total assets, net income, or cash flows.