Gevo Development

6 Months Ended

Jun. 30, 2016

9. Gevo Development

Gevo currently owns 100% of the outstanding equity interests of Gevo Development.

Gevo made capital contributions to Gevo Development of $8.3 million and $7.9 million, respectively, during the six months ended June 30, 2016 and the year ended December 31, 2015.

The following table sets forth (in thousands) the net loss incurred by Gevo Development (including Agri-Energy) which has been fully allocated to Gevo capital contribution account based upon 100% ownership.

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Gevo Development Net Loss	$	(2,946	)	$	(2,264	)	$	(6,522	)	$	(6,598	)

In connection with the formation of Gevo Development in September 2009, the Company granted CDP Gevo, LLC a warrant to purchase 57,200 shares of the Company’s common stock. The warrant has an exercise price of $40.50 per share which represented the estimated fair value of Gevo, Inc.’s common stock on the date of grant. The warrant expires in September 2016, unless terminated earlier as provided in the warrant agreement.

The accounts of Agri-Energy are consolidated within Gevo Development as a wholly owned subsidiary which is then consolidated into Gevo. As of June 30, 2016, Gevo Development does not have any assets that can be used only to settle obligations of Gevo Development. In addition, under the terms of the Amended Agri-Energy Loan Agreement with TriplePoint, as amended, subject to certain limited exceptions, Agri-Energy is only permitted to pay dividends if all principal balances due to TriplePoint have been paid.