Note 6 - Axens License

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

7. Intangible Assets

On September 21, 2021, the Company entered into an asset purchase agreement with Butamax Advanced Biofuels LLC and its affiliate, Danisco US Inc. (collectively, "Butamax"), pursuant to which the Company purchased all of Butamax’s rights, title and interests in certain U.S. and foreign patents and patent applications, subject to specified conditions and encumbrances, relating to the production, recovery and use of biobutanol that were owned by Butamax, for $9.2 million, including $0.2 million of legal fees. Management evaluated the patents to determine whether the patents (i) supported current products; (ii) supported planned research and development; or (iii) prevent others from competing with Gevo's products. Based on the Company's estimated purchase price allocation, approximately $4.3 million of the purchase price was allocated to the purchase of patents to support current products and planned product research and $4.9 million for patents purchased for defensive purposes. The patents are included in "Intangible assets" in the Consolidated Balance Sheets. The Gevo segment owns $8.8 million and the Agri-Energy segment owns $0.1 million of the net carrying amount of the patents.

Identifiable intangible assets were comprised of the following (in thousands):

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted Average Life (Years)
Finite-lived intangible assets:
Patents	$	4,575	$	(368	)	$	4,207		7.3
Defensive assets		4,895		(164	)		4,731		8.4
Identifiable tangible assets	$	9,470	$	(532	)	$	8,938		7.9
	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted Average Life (Years)
Finite-lived intangible assets:
Patents	$	300	$	(186	)	$	114		5.2

Amortization expense was as follows (in thousands):

	Years Ended December 31,
	2021		2020		2019
Related to cost of goods sold	$	21	$	21	$	165
Related to research and development expense		161		—		—
Related to selling, general and administrative expense		164		—		—
Total	$	346	$	21	$	165

The following table details the estimated net amortization of identifiable intangible assets as of December 31, 2021 (in thousands):

Year Ending December 31,	Patents		Defensive Assets		Total
2022	$	599	$	585	$	1,184
2023		599		585		1,184
2024		600		587		1,187
2025		599		585		1,184
2026		585		585		1,170
Thereafter		1,225		1,804		3,029
Total	$	4,207	$	4,731	$	8,938

License Agreement [Member]

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

6. Axens License

On September 22, 2021, Gevo entered into an agreement with Axens North America, Inc. (“Axens”) that establishes a strategic alliance aimed at accelerating the commercialization of sustainable alcohol-to-SAF projects in the United States. As part of the alliance, Axens brings technologies with over 60 related patents, engineering packages, proprietary catalysts and certain proprietary equipment required to convert ethanol into SAF. Axens would also provide process guarantees to Gevo for commercial alcohol-to-SAF projects. The Company paid a fee of $3.25 million in 2021 for Axens to provide certain alcohol-to-SAF services exclusively to Gevo for the first year of the agreement. The fee paid by the Company may be offset against future license fees and is included in "Other current assets" in the Consolidated Balance Sheets. The fee is included in the Gevo segment.