Stabilis Solutions Inc
For the period ended Dec 31, 2024. Filed Feb 25, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 25, 2025
SLNG$3.58-4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-03-07.
0001437749-24-006870
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-25.
0001437749-25-005086
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 105 current paragraphs.
70 unchanged; 31 reworded; 4 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Customer Contracts–*** Supporting Energy Grid Resiliency***
Current report
The Company continues to provide LNG for peak load, intermittent, and emergency relief power across multiple industries. During 2024, the Company secured the extension of its LNG supply agreement with a leading global provider of on-demand industrial power solutions to provide turnkey production and last mile delivery of up to 9.5 million gallons of LNG to generate roughly 23 megawatt-hours of grid resiliency power in support of communities along the Gulf Coast through May 2025.
Current report
Management Transition
Current report
Effective January 31, 2025, the Company entered into a release and consulting agreement with Westervelt T. Ballard, Jr. (formerly the Company's President and Chief Executive Officer) pursuant to which the Company and Mr. Ballard mutually agreed to terminate his employment as President and Chief Executive Officer and Mr. Ballard transitioned to a consultant of the Company. Additionally, Mr. Ballard voluntarily resigned as a member of the Company’s Board of Directors. Concurrent with Mr. Ballard's departure, the Company appointed the Company’s Chairman of the Board, J. Casey Crenshaw, as its Executive Chairman, and interim President and Chief Executive Officer. See Notes to the Consolidated Financial Statements, Note 17 - Subsequent Events, for additional discussion related to Mr. Ballard's departure and Mr. Crenshaw's expanded role.
Removed paragraphs (6)
Previous report
We believe that LNG will provide an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition.
Previous report
Gas Pretreatment Upgrades at our George West, Texas Liquification Facility
Previous report
During the second and third quarter of 2023, the Company was adversely impacted by natural gas feedstock composition changes, which reduced production from our George West, Texas liquefaction facility (our "George West facility") as well as overall profitability. The Company implemented corrective actions and completed installation of additional gas pretreatment equipment that allowed our George West facility to resume LNG production at full rates.
Previous report
Stabilis supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG. The sale of the Brazil Operations in 2022 consists of all of the revenues and expenses formerly reported within the Company's Power Delivery segment with the exception of the Company's equity method investment in BOMAY. Further, the decision to exit the Brazil Operations met the criteria to be reported as discontinued operations. As a result, the Company has one reporting segment and the results presented in the table below separately presents the revenues and expenses for the Brazil Operations as discontinued operations.
Previous report
Discontinued Operations. Loss from discontinued operations, net of tax was $2.0 million in the Prior Year. The Company sold its Brazil Operations on October 31, 2022. There was no activity from discontinued operations during the Current Year. See Note 12 in the Notes to Consolidated Financial Statements for further discussion of the Company's discontinued operations.
Previous report
Power Delivery revenue prior to the sale of the Brazil Operations was generated from time and material projects, consulting services, and the resale of electrical and instrumentation equipment. Revenue was billed based on contractual terms that can be based on an event or an hourly rate. Revenue was recognized as the event was completed or work was done. Payment terms for service contracts were generally within thirty days from the receipt of the invoice. Performance obligations for service revenue were considered to be satisfied as the event was completed or work was done per the terms of the related contract. The resale of electrical and instrumentation equipment is billed upon delivery and were generally due within thirty days from the receipt of the invoice.
Reworded paragraphs (31)
Previous wording
Stabilis Solutions, Inc. and its subsidiaries is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas (“LNG”) to multiple end markets. We provide LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of alternative fuels, including distillate fuel oil and propane, among others, to provide environmental and economic benefits. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage.
Current wording
Stabilis Solutions, Inc. and its subsidiaries is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas (“LNG”) to multiple end markets. We provide LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of fuels, including distillate fuel oil, such as diesel and marine gas oil, and propane, among others, to provide environmental and economic benefits. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage.
Previous wording
During the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent. The authorization is for a term of 28 years, provided certain milestones of utilization are achieved. As of December 31, 2023, the Company has not made any exports under this approval and has not expended material funds nor entered into any sales commitments. For exports to non-FTA countries, the Company has two years from the date it received authorization with which to initiate exportation of LNG. For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.
Current wording
In the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent. The authorization is for shipments of LNG and is for a term of 28 years with a remaining term of approximately 26 years under this authorization. As of December 31, 2024, the Company has met the initial time requirement to initiate exports to non-FTA countries. In 2024, we delivered LNG to Europe under this authorization. For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.
Previous wording
The DOE authorization received during the third quarter of 2022 supplements the Company's existing other export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck. In 2023, we delivered LNG to Mexico. In 2023, the Company did not deliver LNG to Canada.
Current wording
The DOE authorization received during the third quarter of 2022 supplements the Company's other existing export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck. In 2024, we delivered LNG to Mexico under this authorization.
Previous wording
During the second quarter of 2023, the Company entered into a three-year revolving credit facility with Cadence Bank for a maximum aggregate amount of $10 million. The Company may request an increase in the maximum aggregate amount by up to $5 million, subject to the approval by Cadence Bank. All borrowings under the Revolving Credit Facility are secured by the Company's accounts receivable and deposit accounts, subject to a borrowing base of 80% of eligible accounts receivable. The revolving credit facility provides additional sources of liquidity, if needed, to fund additional growth capital expenditures and/or bridge short-term liquidity needs for new contracts. See also Note 9 in the Notes to Consolidated Financial Statements for further discussion of our revolving credit facility.
Current wording
The Company maintains a three-year revolving credit facility with Cadence Bank for a maximum aggregate amount of $10 million, which expires in June 2026. The Company may request an increase in the maximum aggregate amount by up to $5 million, subject to the approval by Cadence Bank. All borrowings under the Revolving Credit Facility are secured by the Company's accounts receivable and deposit accounts, subject to a borrowing base of 80% of eligible accounts receivable. The revolving credit facility provides additional sources of liquidity, if needed, to fund additional capital expenditures and/or bridge short-term liquidity needs for new contracts. See also Note 9 in the Notes to Consolidated Financial Statements for further discussion of our revolving credit facility.
Previous wording
During the second quarter of 2023, the Company acquired the key components of a 100,000 LNG gallon per day liquefaction train for $6.0 million. The Company is currently evaluating the best alternatives for installation of these assets into its operations.
Current wording
During the second quarter of 2023, the Company acquired the key components of a 100,000 LNG gallon per day liquefaction train for $6.0 million. During 2024, the Company installed four storage tanks acquired in this transaction at its liquefaction facility in George West, Texas. The Company is currently evaluating the best alternatives for installation of the remaining assets into its operations.
Previous wording
The Company expects that LNG demand for marine fuel will increase as additional marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations. During the fourth quarter of 2023, the Company entered into a two-year marine bunkering contract with a cruise industry customer to deliver an estimated 22 million gallons of LNG per year.
Current wording
The Company expects that LNG demand for marine fuel will increase as marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations. During the fourth quarter of 2023, the Company entered into a marine bunkering contract with a cruise industry customer to deliver an estimated 22 million gallons of LNG per year. Additionally, the Company expects that LNG demand will increase to support anticipated increased commercial rocket launch activity. Stabilis is positioned to remain a key supplier of LNG as propellant and has contracts to supply high-purity propellant to two commercial space exploration companies.
Previous wording
During the Current Year revenues decreased $25.7 million, or 26%, compared to the Prior Year. The decrease in revenues primarily related to:
Current wording
During the Current Year revenues increased $0.2 million, or 0.2%, compared to the Prior Year. The increase in revenues primarily related to:
Previous wording
Costs of revenues. Cost of revenues decreased $22.8 million, or 29%, in the Current Year compared to the Prior Year. As a percentage of revenue, these costs were 75% and 79% in the Current Year and the Prior Year, respectively. The decrease in cost of revenues was attributable to:
Current wording
Costs of revenues. Cost of revenues decreased $2.9 million, or 5.2%, in the Current Year compared to the Prior Year. As a percentage of revenue, these costs were 71.0% and 75.1% in the Current Year and the Prior Year, respectively. The decrease in cost of revenues was attributable to:
Previous wording
Change in unrealized loss (gain) on natural gas derivatives. The Company incurred a gain of $0.5 million on the change in unrealized losses associated with the Company's natural gas derivatives in the Current Year compared to a loss of $0.9 million in the Prior Year. The gain in the Current Year was due to offsetting amortization of realized losses as call option volumes expired unexercised during the Current Year. See Note 4 in the Notes to the Consolidated Financial Statements for a further discussion of our derivatives.
Current wording
Change in unrealized loss (gain) on natural gas derivatives. The Company incurred a gain of $0.3 million on the change in unrealized losses associated with the Company's natural gas derivatives in the Current Year compared to a gain of $0.5 million in the Prior Year. The gains in both periods were due to offsetting amortization of realized losses as call option volumes expired unexercised. See Note 4 in the Notes to the Consolidated Financial Statements for a further discussion of our derivatives.
Previous wording
Selling, general and administrative. Selling, general and administrative expense decreased $0.3 million, or 2.3%, during the Current Year as compared to the Prior Year primarily due to lower incentive compensation, partially offset by increased professional services, and salaries.
Current wording
Selling, general and administrative. Selling, general and administrative expense decreased $1.1 million, or 8.8%, during the Current Year as compared to the Prior Year primarily due to decreased incentive compensation and personnel costs, including lower stock-based compensation expense.
Previous wording
Gain on the disposal of fixed assets. The Company recorded a gain on the disposal of fixed assets of $1.2 million in the Current Year related to proceeds received on an insurance settlement pertaining to certain assets damaged in a fire in June of 2023 (See Note 6 to the Consolidated Financial Statements for a further discussion of this gain) and on a settlement received for a damaged trailer.
Current wording
Gain on the disposal of fixed assets. The Company recorded a gain on the disposal of fixed assets of $0.8 million in the Current Year from the sale of various assets which included vaporizers and storage tanks primarily to customers on their sites. Gain on the disposal of fixed assets of $1.2 million was recognized in the Prior Year related to proceeds received on an insurance settlement pertaining to certain assets damaged in a fire in June of 2023 and from a settlement received for a damaged trailer.
Previous wording
Depreciation. Depreciation expense in the Current Year decreased $0.8 million compared to the Prior Year due to assets reaching the end of their depreciable lives.
Current wording
Depreciation. Depreciation expense in the Current Year decreased $0.7 million compared to the Prior Year due to assets reaching the end of their depreciable lives.
Previous wording
Net Equity Income From Foreign Joint Ventures' Operations. Income from investments in foreign joint ventures increased by $0.1 million, or 5.8%, in the Current Year compared to the Prior Year primarily due to improved business in China.
Current wording
Net Equity Income From Foreign Joint Ventures' Operations. Income from investments in foreign joint ventures decreased by $0.1 million, or 7.5%, in the Current Year compared to the Prior Year primarily due to lower earnings in China.
Previous wording
Interest income (expense), net. Interest expense, net decreased by $0.3 million in the Current Year primarily due to the Company's interest income on its cash balances and capitalized interest in the Current Year compared to the Prior Year. Additionally, lower debt service was incurred on lower debt balances in the Current Year.
Current wording
Interest income (expense), net. Interest expense, net decreased by $0.4 million in the Current Year primarily due to the Company's interest income on its cash balances and capitalized interest in the Current Year compared to the Prior Year. Additionally, lower debt service was incurred on lower debt balances in the Current Year.
Previous wording
Interest expense, net - related parties. Related party interest expense decreased by $0.1 million during the Current Year as compared to the Prior Year primarily due to amendments to the MG Finance debt which lowered the interest rate from 12% to 6%, as well as lower debt balance from payments made on related-party debt.
Current wording
Interest expense, net - related parties. Related party interest expense decreased $0.1 million during the Current Year as compared to the Prior Year due to the pay off of the debt owed to MG Finance Co., Ltd. ("MG Finance"), a related party, in December of the Prior Year.
Previous wording
Other income (expense). Other expense was lower in the Current Year compared to the Prior Year. Prior Year related to foreign exchange transactions and the revaluation of the Mexican peso.
Current wording
Other income (expense). Other expense was lower in the Current Year compared to the Prior Year, related to foreign exchange transactions.
Previous wording
Income tax expense. The Company incurred state and foreign income tax expense of $0.2 million during the Current Year primarily related to foreign taxes paid in connection with the cash dividend received from our BOMAY joint venture and foreign taxes incurred from our operations in Mexico. The Company incurred state income and foreign tax expense of $0.3 million in the Prior Year. No U.S. federal income tax benefit was recorded for the Current Year or Prior Year as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets.
Current wording
*Income tax expense.*The Company incurred state and foreign income tax expense of $0.5 million during the Current Year primarily related to state income taxes owed from operating income and foreign taxes paid in connection with the cash dividend received from our BOMAY joint venture. The Company incurred state income and foreign tax expense of $0.2 million in the Prior Year. No U.S. federal income tax expense was recorded for the Current Year or Prior Year as the Company had sufficient deferred tax assets to offset any U.S. federal taxes which were fully offset by a change in the Company's valuation allowance on utilized deferred tax assets.
Previous wording
We did not experience significant variations in volume of LNG delivered to our customers resulting from seasonal variations during 2023. However, our revenues are susceptible to variations due to changes in the price of natural gas as we pass this cost onto our customer. The price of natural gas can fluctuate at any time during the year due to isolated factors, but generally, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher.
Current wording
We did not experience significant variations in volume of LNG delivered to our customers resulting from seasonal variations during 2024. However, our revenues are susceptible to variations due to changes in the price of natural gas. The price of natural gas can fluctuate at any time during the year due to isolated factors, but generally, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher.
Previous wording
The Company continued to experience inflationary pressure during 2023 which began to slow, toward the end of 2023. Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase. We have responded with increasing our pricing to our customers. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs. No assurances can be made about future price trends; the ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.
Current wording
The Company continued to experience inflationary pressure during 2024. Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase. We have responded with increasing our pricing to our customers. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs. No assurances can be made about future price trends; the ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.
Previous wording
Historically, our principal sources of liquidity have consisted of cash provided by our operations, cash on hand, proceeds received from borrowings under the AmeriState Loan described below and distributions from our BOMAY joint venture. In prior years, the Company also obtained debt financing from MG Finance, a related party, which debt financing has been paid in full as of December 31, 2023. During 2023, our principal sources of liquidity were cash provided from our operations and our existing cash balances. The Company used cash flows generated from operations to invest in fixed assets and increased working capital to support growth as well as to pay interest and principal amounts outstanding under our debt agreements.
Current wording
Historically, our principal sources of liquidity have consisted of cash provided by our operations, cash on hand, proceeds received from borrowings under the AmeriState Loan described below and distributions from our BOMAY joint venture. In prior years, the Company also obtained debt financing from MG Finance, a related party, which was paid in full as of December 31, 2023. During 2024, our principal sources of liquidity were cash provided from our operations, our existing cash balances and distributions from our BOMAY joint venture. The Company used cash flows generated from operations to invest in fixed assets and increased working capital to support growth as well as to pay interest and principal amounts outstanding under our debt agreements.
Previous wording
As of December 31, 2023, we had $5.4 million in cash and cash equivalents on hand and $9.6 million in outstanding debt (net of debt issuance costs), and in lease obligations, (of which $1.8 million is due in 2024). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $5.6 million at December 31, 2023. The Company had no draw downs on the Revolving Credit Facility during the year ended December 31, 2023. The Company has also filed a shelf registration statement (described below) which provides the Company the flexibility to raise capital to fund working capital requirements, repay debt and/or fund future transactions.
Current wording
As of December 31, 2024, we had $9.0 million in cash and cash equivalents on hand and $9.3 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $2.4 million is due in 2025). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $4.3 million at December 31, 2024. The Company had no draw downs on the Revolving Credit Facility during the year ended December 31, 2024. The Company has also filed a shelf registration statement (described below) which provides the Company the flexibility to raise capital to fund working capital requirements, repay debt and/or fund future transactions.
Previous wording
Net cash provided by operating activities totaled $6.7 million and $14.7 million for the twelve months ended December 31, 2023 and 2022, respectively. The decrease in net cash provided by operating activities of $8.0 million as compared to the Prior Year was primarily attributable to the increase in working capital resulting from increased payments of accounts payable and lower dividends from our joint venture, BOMAY.
Current wording
Net cash provided by operating activities totaled $13.7 million and $6.7 million for the twelve months ended December 31, 2024 and 2023, respectively. The increase in net cash provided by operating activities of $7.0 million as compared to the Prior Year was primarily attributable to the increase in net income, improved collections and reduced payments of accounts payable and accrued liabilities compared to the Prior Year.
Previous wording
Net cash used in investing activities totaled $8.9 million and $1.9 million for the twelve months ended December 31, 2023 and 2022, respectively. The increase in net cash used in the Current Year was primarily due to the acquisition of liquefaction assets in the Current Year and lower proceeds received from the disposal of assets. During the Current Year, proceeds received from the disposal of assets were $1.3 million compared to proceeds received of $2.0 million from the sale of certain CNG assets in Mexico and $0.2 million from the sale of the Brazil Operations in the Prior Year.
Current wording
Net cash used in investing activities totaled $8.1 million and $8.9 million for the twelve months ended December 31, 2024 and 2023, respectively. In both the Current Year and the Prior Year, cash used in investing was primarily for the acquisition of liquefaction assets and their subsequent deployment. During the years ended December 31, 2024 and 2023, proceeds received from the disposal of assets were $0.8 million and $1.3 million, respectively.
Previous wording
Net cash used in financing activities totaled $3.9 million for the twelve months ended December 31, 2023 compared to $2.3 million for 2022. Cash used by financing activities in both years was primarily attributable to the pay down of debt. The increase in cash used by financing activities compared to the Prior Year is due to proceeds received from the AmeriState Bank loan facility of $1.0 million during the Prior Year. In addition, debt payments increased $0.6 million over the Prior Year. As of December 31, 2023, a Secured Promissory Note to MG Finance Co., Ltd. in the principal amount of $5.0 million, was paid in full. No draws on the AmeriState Bank or Revolving Credit Facility were made in the Current Year.
Current wording
Net cash used in financing activities totaled $1.9 million for the twelve months ended December 31, 2024 compared to $3.9 million for 2023. Cash used in financing activities in both years was primarily attributable to the repayment of debt. The decrease in cash used by financing activities compared to the Prior Year is due to a secured promissory note to MG Finance that was paid in full in the Prior Year. No draws on the AmeriState Bank or Revolving Credit Facility were made in the Current Year.
Previous wording
On April 11, 2022, the Company filed a registration statement on Form S-3 (the "Shelf Registration") which was declared effective on April 26, 2022 and will permit the Company to issue up to $100.0 million in either common stock, preferred stock, warrants or a combination of the above, and gives the Company the flexibility to raise capital to fund working capital requirements, repay debt and/or fund future transactions. On December 16, 2022, the Company filed a prospectus supplement to the Shelf Registration that allows the Company to sell and issue shares of common stock directly to the public "at the market" as permitted in Rule 415 under the Securities Act. As a smaller reporting company, we are subject to General Instruction I.B.6 of Form S-3, which limits the amounts that we may sell under the Shelf Registration to no more than one-third of our public float in any twelve month period as measured in accordance with such instruction. There is no assurance that we will be able to raise capital pursuant to the Shelf Registration on acceptable terms or at all. We made no issuances under the Shelf Registration during the year ended December 31, 2023.
Current wording
On April 11, 2022, the Company filed a registration statement on Form S-3 (the "Shelf Registration") which was declared effective on April 26, 2022 and will permit the Company to issue up to $100.0 million in either common stock, preferred stock, warrants or a combination of the above, and gives the Company the flexibility to raise capital to fund working capital requirements, repay debt and/or fund future transactions. On December 16, 2022, the Company filed a prospectus supplement to the Shelf Registration that allows the Company to sell and issue shares of common stock directly to the public "at the market" as permitted in Rule 415 under the Securities Act. As a smaller reporting company, we are subject to General Instruction I.B.6 of Form S-3, which limits the amounts that we may sell under the Shelf Registration to no more than one-third of our public float in any twelve month period as measured in accordance with such instruction. There is no assurance that we will be able to raise capital pursuant to the Shelf Registration on acceptable terms or at all. We made no issuances under the Shelf Registration during the year ended December 31, 2024. The current Shelf Registration expires April 25, 2025.
Previous wording
We require cash to fund our operating expenses and working capital requirements, including costs associated with fuel sales, capital expenditures, debt repayments, equipment purchases, maintenance of LNG production facilities, mergers and acquisitions (if any), pursuing market expansion, supporting sales and marketing activities and other general corporate purposes. While we believe we have sufficient liquidity and capital resources to fund our operations and repay our debt, we may elect to pursue additional financing activities such as refinancing existing debt, obtaining new debt, or debt or equity offerings to provide flexibility with our cash management. Certain of these alternatives may require the consent of current lenders or stockholders, and there is no assurance that we will be able to execute any of these alternatives on acceptable terms or at all. Additionally, the Company may pursue additional expansion activities to increase its liquefaction capabilities. Such an effort, if pursued, would require additional liquidity from other sources either from the sales of equity securities, additional capital investment from new owners or joint venture partners, debt, or any combination of the above. The Company has made no expansion commitments to date. In the event, the Company does pursue expansion in the near term, there is no assurance that the Company will be able to secure additional liquidity on favorable terms or at all.
Current wording
We require cash to fund our operating expenses and working capital requirements, including costs associated with fuel sales, capital expenditures, debt repayments, equipment purchases, maintenance of LNG production facilities, mergers and acquisitions (if any), pursuing market expansion, supporting sales and marketing activities and other general corporate purposes. While we believe we have sufficient liquidity and capital resources to fund our operations and repay our debt, we may elect to pursue additional financing activities such as refinancing existing debt, obtaining new debt, or debt or equity offerings to provide flexibility with our cash management. Certain of these alternatives may require the consent of current lenders or stockholders, and there is no assurance that we will be able to execute any of these alternatives on acceptable terms or at all. Additionally, the Company may pursue additional expansion activities to increase its liquefaction capabilities. Such an effort, if pursued, would require additional liquidity from other sources either from the sales of debt or equity securities, additional capital investment from new owners or joint venture partners, or any combination of the above. The Company has made no expansion commitments to date. In the event, the Company does pursue expansion in the near term, there is no assurance that the Company will be able to secure additional liquidity on favorable terms or at all.
Previous wording
Future capital expenditures will be dependent upon accretive investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At December 31, 2023, we had open purchase orders with approximately $2.3 million related to capital expenditures.
Current wording
Future capital expenditures will be dependent upon value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At December 31, 2024, we had open purchase orders with approximately $1.0 million related to capital expenditures.
Previous wording
We had total indebtedness of $9.0 million ($8.7 million, net of debt issuance costs of $0.3 million) as of December 31, 2023. Expected maturities excluding debt issuance costs at December 31, 2023 are as follows (in thousands).
Current wording
We had total indebtedness, excluding leases, of $9.2 million ($8.9 million, net of debt issuance costs of $0.3 million) as of December 31, 2024. Expected maturities excluding debt issuance costs at December 31, 2024 are as follows (in thousands).
Previous wording
We expect our total interest payment obligations relating to our indebtedness to be approximately $0.5 million for the year ending December 31, 2024. Certain of the agreements governing our outstanding debt, which are discussed in Note 9 of our Consolidated Financial Statements, require compliance with certain financial covenants. As of December 31, 2023, we were in compliance with all of these covenants.
Current wording
We expect our total interest payment obligations relating to the above indebtedness to be approximately $0.5 million for the year ending December 31, 2025. Certain of the agreements governing our outstanding debt, which are discussed in Note 9 of our Consolidated Financial Statements, require compliance with certain financial covenants. As of December 31, 2024, we were in compliance with all of these covenants.
Previous wording
The Company recognizes revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our contracts may contain multiple performance obligations dependent upon the customer.
Current wording
The Company recognizes revenue from our contracts in accordance with Accounting Standards Codification (“ASC”), Topic 606 “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our contracts may contain multiple performance obligations dependent upon the customer.
Previous wording
Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable assets acquired less liabilities assumed. Intangible assets are assets that lack physical substance (excluding financial assets). Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized, and intangible assets with finite useful lives are amortized. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the assets carrying value may not be recoverable. We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test. During 2022, the Company recorded $0.1 million of goodwill impairment related to the sale of the Brazil Operations which is included within loss from discontinued operations. We completed our annual assessment of goodwill during 2023 and 2022, and determined no additional impairment of goodwill was warranted.
Current wording
Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable assets acquired less liabilities assumed. Intangible assets are assets that lack physical substance (excluding financial assets). Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized, and intangible assets with finite useful lives are amortized. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the assets carrying value may not be recoverable. We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test. We completed our annual assessment of goodwill during 2024 and 2023, and determined no additional impairment of goodwill was warranted.