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Note 14 - Segments
 9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

14. Segments

 

The Company's chief operating decision maker is provided with and reviews a monthly executive package which separately identifies its business segments based on the nature of the products and services offered through each of its consolidated legal entities. In January 2021, the Company began to separately identify the Renewal Natural Gas Segment and Net-Zero Segment in the monthly executive package. As such, the Company has determined that it has four operating segments: (i) Gevo segment; (ii) Agri-Energy segment; (iii) Renewable Natural Gas segment; and (iv) Net-Zero segment. Transactions between segments are eliminated in consolidation.

 

Gevo Segment. The Gevo segment is responsible for all research and development activities related to the future production of isobutanol, including the development of our proprietary biocatalysts, the production and sale of bio jet fuel, the Company’s retrofit process and the next generation of chemicals and biofuels that will be based on the Company’s isobutanol technology. The Gevo segment also develops, maintains and protects its intellectual property portfolio, develops future markets for its isobutanol and provides corporate oversight services.

 

Agri-Energy Segment. The Agri-Energy segment is currently responsible for the operation of the Company’s Luverne Facility and the production of isobutanol, ethanol and related products.

 

Renewable Natural Gas Segment. The Renewable Natural Gas segment produces low-carbon methane from the manure of cows and pigs for the production of energy.

 

Net-Zero Segment. The Net-Zero segment is responsible for the production of energy dense liquid hydrocarbons using renewable energy and our proprietary technology. The concept of a Net-Zero Project is to convert renewable energy (photosynthetic, wind, renewable natural gas, biogas) into energy dense liquid hydrocarbons.

 

The Company’s chief operating decision maker is provided with and reviews the financial results of each of the Company’s consolidated legal entities, Gevo, Inc. and Agri-Energy, LLC, as well as its Renewable Natural Gas and Net-Zero projects. The Company organizes its business segments based on the nature of the products and services offered through each of its consolidated legal entities. Substantially all revenue is earned, and all assets are held, in the U.S.

 

  

Three Months Ended September 30,

  Nine Months Ended September 30, 
  2021  2020  2021  2020 

Revenues:

                
Gevo $104  $176  $465  $1,198 

Agri-Energy

  38   16   192   3,807 

Renewable Natural Gas

  —   —   —   — 
Net-Zero  —   —   —   — 
                 

Consolidated

 $142  $192  $657  $5,005 
                 

Loss from operations:

                

Gevo

 $(10,968) $(3,508) $(22,471) $(9,197)

Agri-Energy

  (3,473)  (2,272)  (12,629)  (9,440)
Renewable Natural Gas  (218)  (323)  (286)  (699)
Net-Zero  (53)  —   (8,226)  — 
                 

Consolidated

 $(14,712) $(6,103) $(43,612) $(19,336)
                 

Interest expense:

                

Gevo

 $67  $465  $67  $1,546 

Agri-Energy

  —   8   6   13 
Renewable Natural Gas  —   —   5   — 
Net-Zero  —   —   —   — 
                 

Consolidated

 $67  $473  $78  $1,559 
                 

Depreciation and amortization expense:

                

Gevo

 $112  $53  $214  $159 

Agri-Energy

  

1,088

   1,423   3,358   4,595 
Renewable Natural Gas  —   —   —   — 
Net-Zero  —   —   —   — 
                 

Consolidated

 $1,200  $1,476  $3,572  $4,754 
                 

Acquisitions of patents, plant, property and equipment:

                

Gevo

 $9,536  $—  $10,377  $79 

Agri-Energy

  3,154   106   5,062   1,325 
Renewable Natural Gas  14,450   —   31,551   — 
Net-Zero  5,975   —   5,975   — 
                 

Consolidated

 $33,115  $106  $52,965  $1,404 
                 
Revenue by geographic area                
United States $49  $12  $282  $3,853 
Other  93   180   375   1,152 
                 
Consolidated $142  $192  $657  $5,005 

 

 

  September 30,  December 31, 
  2021  

2020

 
         

Total assets

        

Gevo

 $574,179  $152,177 

Agri-Energy

  144,552   131,893 
Renewable Natural Gas  112,594   — 
Net-Zero  6,944   — 

Intercompany eliminations (1)

  (162,914)  (131,971)
         

Consolidated (2)

 $675,355  $152,099 

 

(1) Intercompany sales of hydrocarbon during the nine months ended September 30, 2021 and for the year ended December 31, 2020 was $0 and $0.1 million, respectively.
(2) All other significant non-cash items relate to the activities of Gevo.