FutureFuel Corp.

(Dollars in thousands, except per share amounts)

FutureFuel Corp. (the “Company”) is a Delaware corporation with its wholly owned subsidiaries, FutureFuel Chemical Company; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C.

The Company’s sole operating facility is FutureFuel Chemical Company located in Batesville, Arkansas, a manufacturer of specialty and performance chemicals and biofuels.

Financial Presentation

The consolidated financial statements of FutureFuel Corp. and subsidiaries are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and include amounts that are based upon management estimates and judgments which could differ from actual future results. Intercompany transactions and balances are eliminated in consolidation.

Cash and cash equivalents

Cash equivalents include highly liquid investments with original maturities ofthree months or less. These are recorded at cost, which closely reflects fair value. The Company maintains its cash and temporary cash investments with high-credit, quality financial institutions. While bank balances* mayoccasionally exceed the Federal Deposit Insurance Corporation insurance limit, the Company has experiencedno* related losses.

Accounts receivable and allowance for credit losses

Accounts receivable are recorded at the invoiced amount and accrue interest if outstanding beyond the agreed upon payment terms. The Company has established procedures to monitor credit risk and hasnot experienced significant credit losses in prior years. Accounts receivable has been reduced by an allowance for amounts that* may*be uncollectible in the future. This estimated allowance is based upon management’s evaluation of historical collection experience, current and future economic and market conditions, and a review of the status of individual accounts receivable. Write-offs are recorded at the time a customer receivable is deemed uncollectible.

Customer concentrations

For the years ended* December 31, 2025,2024 and2023, significant portions of the Company’s sales were made to a relatively small number of customers. For the year ended December 31, 2025,no biodiesel customer represented greater than10%* of total sales revenue or receivables. Sales to two biodiesel customers totaled 25% and 35% of revenue in2024 and2023, respectively. Receivables for the significant customers at* December 31, 2024,*were 13% of total receivables.

For the year ended* December 31, 2025,three chemical customers each represented greater than10%* of total sales revenue for a total of 50%. For the years ended* December 31, 2024,and2023,* no chemical customer represented greater than10% of total sales revenue. Two chemical customers had receivables that were 38% and 29% of total receivables as of* December 31, 2025.One chemical customer had a receivable that was 20% of total receivables as of December 31, 2024.*

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Inventory

Inventories are valued at the lower of cost or market or net realizable value. The Company determines the cost of raw materials, work in process, and finished goods inventories by the last-in,first-out (“LIFO”) method. The cost of all other inventories is determined by the average cost method, which approximates thefirst-in,first-out ("FIFO") method. The Company writes down its inventories for estimated obsolescence or unmarketable inventory equal to the difference between the carrying value of inventory and the estimated market value based upon assumptions about future demand and market conditions.

Derivative instruments

The Company records all derivative instruments at fair value. Fair value is determined by using the closing prices of the derivative instruments on the New York Mercantile Exchange at the end of an accounting period. Changes in the fair value of derivative instruments are recognized at the end of each accounting period and recorded in the consolidated statements of income and comprehensive income as a component of cost of goods sold.

In order to manage commodity price risk caused by market fluctuations in biofuel prices, future purchases of feedstock used in biodiesel production, physical feedstock, finished product inventories attributed to the process, and other petroleum products purchased or sold, the Company* mayenter into exchange-traded commodity futures and options contracts. The Company accounts for these derivative instruments in accordance with Accounting Standards Codification (“ASC”)815-20-25, Derivatives and Hedging. Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship. To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained. The Company hadno* derivative instruments that qualified under these rules as designated accounting hedges in2025, 2024, or2023. See Note6 for further discussion of derivative instruments. The Company has elected the normal purchase and normal sales exception for certain feedstock purchase contracts and supply agreements and for certain biodiesel sales contracts.

Marketable securities

Investments consist of marketable equity and debt securities stated at fair value. The debt securities are designated as available-for-sale securities at the time of purchase based upon the intended holding period. Gains and losses from the sale of marketable securities and the changes in the fair value of equity securities are recognized as gain on marketable securities as a component of other income in the consolidated statements of income and comprehensive income. The cost basis used for all marketable securities is specific identification. Changes in the fair value of debt securities are recognized in accumulated other comprehensive income on the consolidated balance sheets, unless the Company determines that an unrealized loss willnot be recovered before it is sold, in which case, the Company will recognize the loss as a component of other income (expense).

See Notes7 and8 for further information on marketable securities and fair value measurements.

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Fair value measurements

The Company records recurring and non-recurring financial assets and liabilities as well as all non-financial assets and liabilities subject to fair value measurement at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. These fair value principles prioritize valuation inputs acrossthree broad levels. Level1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. An asset or liability classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement.

Supplies and parts

Supplies and parts are carried at cost in Other current assets and Other noncurrent assets. The Company writes down its supplies and parts for estimated obsolescence and amounts determined to be in excess of expected needs.

Property, plant, and equipment, net

Property, plant, and equipment, net is carried at cost less accumulated depreciation. Maintenance and repairs are charged to earnings; replacements and betterments are capitalized. When the Company retires or otherwise disposes of an asset, it removes the cost of such asset and related accumulated depreciation from the accounts. The Company records any profit and loss on retirement or other disposition in earnings.

Depreciation expense is calculated based on historical cost and the estimated useful lives of the assets, generally using the straight-line method with the following useful lives:

Impairment of assets

The Company evaluates the carrying value of long-lived tangible assets when events or changes in circumstances indicate that the carrying value* may**not* be recoverable. Such events and circumstances include, but arenot limited to, significant decreases in the market value of the assets, adverse changes in the extent or manner in which the asset is being used, significant changes in business climate, or current or projected cash flow losses associated with the use of the assets. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from such assets are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. For long-lived assets to be held for use in future operations, fair value is determined primarily by using either the projected cash flows discounted at a rate commensurate with the risk involved or an appraisal. For long-lived assets to be disposed of by sale or other than sale, fair value is determined in a similar manner, except those fair values are reduced for disposal costs.

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Asset retirement obligations and environmental costs

The Company establishes reserves for closure/post-closure costs associated with the environmental and other assets it maintains, which include, but arenot limited to, waste management units, such as a chemical waste destructor, storage tanks, and boilers. When these types of assets are constructed or installed, a liability is established with a corresponding asset for the future costs anticipated to be associated with the closure of the site based on an expected life of the environmental assets, the applicable regulatory closure requirements, and the Company’s environmental policies and practices. These expenses are charged into earnings over the estimated useful life of the assets. Currently, the Company estimates the useful life of each individual asset up to 27 years.

Environmental costs are capitalized if they extend the life of the related property, increase its capacity, and/or mitigate or prevent future contamination. The cost of operating and maintaining environmental control facilities is charged to expense.

Leases

The Company determines if an arrangement is a lease at inception, and if applicable, determines its lease classification. Leases with an initial expected term oftwelve months or less are considered short-term and arenot recorded on our consolidated balance sheets. The Company recognizes operating lease expense on a straight-line basis over the lease term.

Right-of-use (“ROU”) lease assets represent the Company's right to use an underlying asset for the term of lease. Lease liabilities represent the Company's obligation to make lease payments associated with the lease. ROU assets and liabilities are recognized at lease commencement based on the present value of the minimum lease payments over the lease term using an incremental borrowing rate with a maturity similar to the lease term. ROU assets include any lease payments made and exclude lease incentives. Lease terms* may*also include an option to extend or terminate the lease. These options would be recognized when it was reasonably certain the Company would exercise the option.

Litigation

The Company and its operations from time to time* may*be parties to or targets of lawsuits, claims, investigations, and proceedings including product liability, personal injury, patent and intellectual property, commercial, contract, environmental, health and safety, and environmental matters, which are handled and defended in the ordinary course of business. The Company accrues a liability for such matters when it is probable that a liability has been incurred, and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount.

Revenue recognition

In accordance with ASC Topic606, Revenue from Contracts with Customers, the Company recognizes revenue when performance obligations of the customer contract are satisfied. The Company sells to customers through master sales agreements or standalone purchase orders. The majority of the Company’s revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied. Accordingly, the Company recognizes revenue when control is transferred to the customer, which is when products are considered to meet customer specification per the customer contract and title and risk of loss are transferred. This typically occurs at the time of shipment or delivery; or for certain contracts, this occurs upon delivery of the material to a Company storage location, ready for customer pickup and separated from other Company inventory. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated price. The Company sells its products directly to customers generally under agreements with payment terms of30 to75 days for chemical segment customers and2 to10 days for biofuels segment customers.

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The Company applies the practical expedient and excludes the value of unsatisfied performance obligations for (i) contracts with an original expected length ofone year or less; and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed.

Revenue within the biofuel segment includes revenue from biodiesel RINs. RINs are renewable identification numbers under the Renewable Fuel Standard (“RFS2”) used to incent the use of renewable fuels domestically. RINs are generated at1.5 RINs per gallon of biodiesel produced and sold. Revenue is recognized from RINs when transferred to the buyer in the government provided tracking system.No cost is incurred in the generation of a RIN.

Taxes collected from customers remitted to governmental authorities are recorded as a reduction of the transaction price. Shipping and handling fees related to sales transactions are billed to customers and recorded as sales revenue with an offsetting expense included in cost of goods sold.

Cost of goods sold and distribution

Cost of goods sold consists of raw and packaging materials, direct manufacturing costs, depreciation, analytical lab costs, inbound freight, purchasing, and other indirect costs necessary to manufacture products. The Company follows the direct-expense method of accounting for turnaround activities with associated costs included in cost of goods sold. Biodiesel cost of goods sold also includes a credit for the Clean Fuel Production Tax Credit (“CFPC”) in2025 and theone dollar per gallon Blenders’ Tax Credit (“BTC”) for blending biodiesel with petroleum diesel during2024 and2023. See Note3 for further discussion.

Distribution expense includes outbound freight costs, depreciation of distribution equipment, and other indirect costs necessary to distribute product.

Selling, general, and administrative expenses

Selling, general, and administrative expenses include personnel costs associated with sales, marketing, and administration; legal and related costs; consulting and professional service fees; advertising expenses; and other similar costs.

Research and development expenses

Research and development expenses include direct salaries, depreciation of equipment, material expenditures, contractor fees, and other indirect costs. All costs identified as research and development costs are charged to expense when incurred.

*Comprehensive income *

Comprehensive income is comprised of net income and other comprehensive income (loss) (“OCI”). Comprehensive income comprises all changes in stockholders’ equity from transactions and other events and circumstances from non-owner sources. The Company’s OCI comprises unrealized gains and losses resulting from its investments in marketable debt securities classified as available-for-sale (see Note7).

Unrealized gains and losses were determined using the specific identification method and are classified in OCI.

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Income taxes

The income tax (benefit) provision is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for (benefit from) income taxes represent income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted.

A tax valuation allowance is recognized if it is more likely thannot that some portion or all of the deferred tax assets willnot be realized. In assessing the recoverability of its deferred tax assets, the Company evaluates available positive and negative evidence to estimate whether it is more likely thannot that sufficient future taxable income will be generated to permit use of the existing deferred tax assets in each taxpaying jurisdiction. In making this determination, the Company considers positive evidence in the form of projections of future taxable income, reversing temporary differences, and tax planning strategies. In years in which the Company has experienced objective negative evidence in the form ofthree cumulative years of tax losses, the Companyno longer uses taxable income projections to overcome the presumption of losses and deferred tax asset valuations are computed using only the reversing net deferred tax liability from temporary differences as a source of income.

New Accounting Standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, willnot have a material impact on the consolidated financial statements upon adoption.

New accounting standards adopted

In* December 2023,the FASB issued ASUNo.* 2023-09 “Income Taxes (Topic740*): Improvements to Income Tax Disclosures.” ASU2023*-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional disclosure on income taxes paid. We adopted this guidance prospectively for the year ending* December 31, 2025and have provided the required disclosures. See Note15* Income Taxes.

New accounting standards issued butnot* yet adopted*

In* November 2024,the FASB issued ASU2024*-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic220*-40): Disaggregation of Income Statement Expenses.” ASU2024*-03 requires disaggregated disclosure of income statement expenses for public business entities. The ASU doesnot change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This guidance will be effective for us on* January 1, 2027.*The Company is currently evaluating the impact of the changes required by the new standard on the Company's financial statements and disclosures.

In* July**2025,* the FASB issued ASU2025-05 “Financial Instruments - Credit Losses (Topic326*): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU2025*-05 permits the use of certain estimates and assumptions in developing forecasts used for determining expected credit losses on accounts receivable. This guidance will be effective for us on* January 1, 2026.We donot* expect the above guidance to materially impact our consolidated financial statements.

In* September 2025,the FASB issued ASU2025*-06 “Intangibles–* Goodwill and Other - Internal-Use Software (Subtopic350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU2025*-06 eliminates the consideration of project development stages in determining whether a cost is eligible for capitalization. Instead, cost capitalization will be based on a “probable to complete” threshold. This guidance will be effective for us on* January 1, 2028.We are evaluating the impact, if any, that the adoption of ASU2025*-06 * may*have on our consolidated financial statements.

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BIODIESEL BLENDERS' TAX CREDIT

The BTC provided aone dollar per gallon tax credit to the blender of biomass-based diesel with at least0.1% petroleum-based diesel fuel. The Company recorded this credit as a reduction in the cost of goods sold as applicable sales were made in the years ended* December 31, 2024,and2023.* The BTC expired* December 31, 2024.*

SMALL AGRI-BIODIESEL PRODUCER TAX CREDIT (SAPC)

The SAPC also expired on* December 31, 2024.This tax credit was available to producers with production capacitynot* in excess of60 million gallons and provided a*$0.10* per gallon income tax credit on thefirst 15 million gallons of agri-biodiesel sold. The Company was eligible for this credit and recognized the credit in the same accounting period as the benefit from the BTC. The benefit of this credit was recognized as a component of income tax provision in the years ended* December 31, 2024,and2023.*

On* July**4,* 2025, the Budget Reconciliation Act of2025 reinstated and extended the SAPC through* December 31, 2026.This transferable, non-refundable credit offers eligible producers with a capacity of60* million gallons or less*$0.20* per gallon on thefirst 15 million gallons of fuel they produce. As the Budget Reconciliation Act of2025 also made the SAPC transferable, the benefit of this credit was recognized as a reduction in cost of goods sold in the year ended* December 31, 2025,*discussed further below.

CLEAN FUEL PRODUCTION TAX CREDIT (CFPC)

The CFPC or*§45Z* credit, established by the Inflation Reduction Act of2022 and extended through2029 by the Budget Reconciliation Act of2025, is a key incentive for low-emission transportation fuels. The Company’s biodiesel was approved for the CFPC in* December 2024.This transferable, non-refundable income tax credit uses a sliding scale based on the fuel's greenhouse gas (“GHG”) emissions. The Company qualifies for an increased credit above the base of$0.20* per gallon for non-aviation fuel because it satisfies the prevailing wage and apprenticeship requirements.

TRANSFERABLE TAX CREDITS (SAPC and CFPC)

Due to the lack of specific U.S. GAAP guidance for the transferable tax credits, the Company elected to follow International Accounting Standards (“IAS”)20 principles (“Accounting for Government Grants”). Accordingly, the SAPC and CFPC were recognized as a reduction in the cost of goods sold, net of estimated selling expenses when applicable.

For the year ended* December 31, 2025,*the Company recognized $2.5 million in CFPC and $0.2 million in SAPC in other current assets on the consolidated balance sheets.

CARES ACT – EMPLOYEE RETENTION TAX CREDIT

The Coronavirus Aid, Relief, and Economic Security Act, was enacted on* March 27, 2020,to encourage eligible employers to retain employees on their payroll. The Consolidated Appropriations Act, effective January 1, 2021,*broadened the eligibility of the credit. The Company applied for this credit and will recognize the benefit of the credit once reasonable assurance can be made as to the retention of the credit.

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The majority of revenue is from contracts with less thanone-year arrangements with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied.

Certain of the Company’s custom chemical contracts within the chemical segment contain a material right, as defined by ASC Topic606, from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers. Each contract also has a performance obligation to transfer products with30-day payment terms. The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC Topic606. The Company applies the renewal option approach in allocating the transaction price to these material rights and transfer of product. As a basis for allocating the transaction price to the material right and transfer of product, the Company estimates the expected life of the contract, the expected contractual volumes to be sold over that life, and the most likely expected sales price. Each estimate is updated quarterly on a prospective basis.

The Company leases warehouse space under a short-term lease agreement with a term oftwelve months. Lease revenue recognized under this agreement was $680 and $669 for the years ended* December 31, 2025and2024,* respectively.

Contract Assets and Liabilities:

Contract assets consist of unbilled amounts resulting from revenue recognized through bill-and-hold arrangements. The contract assets for2025 and2024 consist of unbilled revenue fromone customer and unbilled capital reimbursements from another customer and are recorded as accounts receivable in the consolidated balance sheets. Contract liabilities consist of advance payments related to material rights recorded as deferred revenue in the consolidated balance sheets. Increases to contract liabilities from cash received or due for a performance obligation of chemical segment plant expansions were $9,725 and $0 in2025 and2024, respectively. Contract liabilities are reduced as the Company transfers product to the customer under the renewal option approach. Revenue recognized in the chemical segment from the contract liability reductions were $551 and $8,984 in2025 and2024, respectively. One contract liability ended in2024 with additional revenue recognition of $5,492 in2024. This contract was expected to be negotiated before the end of the year based on a letter of intent and wasnot renewed. The customer continues to purchase material from the Company on a short-term purchased order basis. Contract asset and liability balances are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

The following table provides the opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers.

Contract balances

Contract Assets and Liabilities

Exclusive of the BTC of $0, $6,683, and $11,381, respectively, and net of allowances for bad debt of $28,** $29, and $55, respectively, as of the dates noted.*

The Company includes non-contract liabilities resulting from federal and state railroad grants as deferred revenue in the consolidated balance sheets. For the years ended* December 31, 2025and2024,* short-term non-contract liabilities were $207 and $207 and long-term non-contract liabilities were $2,809 and $3,031, respectively.

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Transaction price allocated to the remaining performance obligations of contract liabilities

As of* December 31, 2025*, approximately $13,163 of revenue is expected to be recognized in the future from remaining performance obligations. The Company expects to recognize this revenue ratably based upon the expected sales over the expected term of its long-term contracts which range from two toten years. Approximately 12% of this revenue is expected to be recognized over the next 12 months, and 88% is expected to be recognized betweenone andnine years. These amounts are subject to change based upon changes in the estimated contract life, estimated quantities, and most-likely expected sales price over the contract life. See Note2 for further information.

Disaggregation of revenue - contractual and non-contractual

Timing of revenue

Bill-and-hold transactions consisted offive specialty chemical customers in2025, 2024, and2023, whereby revenue was recognized in accordance with contractual agreements based on product produced, readied for use and loaded into customer provided containers. These sales were subject to written monthly purchase orders with revenue recognized upon production and loading into customer provided containers. The inventory was segregated from other Company inventory as it was custom manufactured and stored at the customer’s request and couldnot be sold to another buyer. Credit and payment terms for bill-and-hold transactions are similar to other specialty chemical customers. Sales revenue under bill-and-hold arrangements totaled $36,690, $43,959, and $43,766, for the years ended* December 31, 2025,2024, and2023, respectively. Of the bill-and-hold sales revenue recognized, $5,106,$7,301, and $4,317 hadnot been shipped for the years ended December 31, 2025,*2024, and2023, respectively. These balances donot include contract assets that havenot been billed or shipped as described above.

The Company’s revenues for the years ended* December 31, 2025,*2024 and2023 attributable to the United States and foreign countries (based upon the billing addresses of its customers) were as follows.

For the years ended* December 31, 2025,*2024 and2023,no revenues from a single foreign country were greater than1% of total revenues.

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The carrying values of inventory were as follows as of* December 31:*

A LIFO liquidation of $435 occurred in the year ended* December 31,2024. There wasno liquidation in the years ended December 31, 2025or2023.*

Realized and unrealized gains and losses on derivative instruments and changes in fair value of the derivative instruments are recorded in the consolidated statements of income and comprehensive income as a component of cost of goods sold and amounted to a net gain of $1,264 for the year ended* December 31, 2025,a net loss of $499 for the year ended December 31, 2024,and a net gain of $2,571 for the year ended December 31, 2023.*

The volumes and carrying values of the Company’s derivative instruments were as follows at* December 31:*

The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of $2,266 and $877 at* December 31, 2025and2024*, respectively, and is classified as other current assets in the consolidated balance sheets.

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At* December 31, 2025and2024,* the Company heldno marketable equity or trust preferred (debt) securities. The previous sale of these securities was recorded as a component of net income with a gain of $575 in the year ended* December 31, 2023.*

In2023, the Company hadno recategorized net gain or loss to report from accumulated other comprehensive income.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants as of the measurement date. Fair value accounting pronouncements also include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances.

Derivative instruments were fair value measurements using inputs considered as Level1 holdings in the year ended* December 31, 2025,as disclosed in Note6.* The Company hadno Level2 or Level3 securities.

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Property, plant, and equipment consisted of the following at* December 31:*

Depreciation expense totaled $9,657, $9,208, and $10,348 for the years ended* December 31, 2025,*2024 and2023, respectively.

Other current assets consisted of the following at* December 31:*

Other noncurrent assets is primarily comprised of supplies and parts held for equipment maintenance and repairs which arenot expected to be used in thetwelve-month period subsequent to the consolidated balance sheet date. The balance related to these items totaled $4,329 and $4,376 at* December 31, 2025and2024*, respectively.

Accrued expenses and other current liabilities consisted of the following at* December 31:*

Other noncurrent liabilities includes an employment tax credit with a balance of$2,737 and $0 at* December 31, 2025and2024,* respectively. The remaining balance of noncurrent liabilities is related to asset retirement obligations (see Note13).

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On* February**21,* 2025, the Company, with FutureFuel Chemical Company as the borrower and certain of the Company’s other subsidiaries as guarantors, amended and restated its credit agreement, as further amended effective as of* June 30, 2025and December 22, 2025 (the “Credit Agreement”), originally entered into on April 16, 2015with the lenders party thereto, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent (as amended, the “Prior Credit Agreement”). The Credit Agreement consists of afive-year revolving credit facility in a dollar amount of up to $35,000, which includes a sublimit of $30,000 for letters of credit and $15,000 for swingline loans (collectively, the “Credit Facility”). The Credit Facility expires on February 21, 2030.*

The interest rate floats at the following margins over Secured Overnight Financing Rate ("SOFR") or base rate based upon our leverage ratio.

The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio.

There wereno borrowings under the Credit Agreement at* December 31, 2025or December 31, 2024.*

The Batesville plant generates hazardous and non-hazardous wastes, the treatment, storage, transportation, and disposal of which are regulated by various governmental agencies. In addition, the Batesville plant* maybe required to incur costs for environmental and closure and post-closure costs under the Resource Conservation and Recovery Act. The Company’s liability for asset retirement obligations and environmental contingencies was$1,502 and $1,466 as of December 31, 2025and2024*, respectively. These amounts are recorded in other noncurrent liabilities in the accompanying consolidated balance sheets. The accretion expense for2025,2024, and2023 was $37, $35, and $35, respectively. The periodic review of the asset retirement obligation calculations resulted in an addition to the reserve of$0 in2025,2024, and2023.

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The Company leased railcars under multi-year arrangements primarily for delivery of feedstock and biodiesel within its biofuels segment. The lease fees were fixed withno option to purchase andno upfront fees or residual value guarantees. All railcar leases were direct, andno subleases existed. These leases expired on* December 31, 2024.*

Following are supplemental income statement and cash flow information related to leases.

On* December 31, 2025and2024,* there wereno right of use assets reported on the balance sheet.

During the year ended* December 31, 2025,the Company entered into a supply agreement with athird* party that obligates thethird party to construct a nitrogen plant to be used solely by the Company. Thethird party is also obligated to make certain capital improvements during the term of the agreement. The Company is obligated to provide and maintain related infrastructure and utilities and pay a monthly fee. The arrangement for the use of the nitrogen plant meets the definition of a lease under Topic842, as the Company will receive all output associated with it. Based on terms outlined in the agreement, the Company expects the lease with an estimated amount of $8,500 to $10,900 to be classified as a finance lease when the nitrogen plant is placed in service, which is expected to occur in2027.

Purchase obligations

The Company has entered into contracts for the purchase of goods and services including contracts for feedstocks for biodiesel, expansion of the Company’s specialty chemicals segment, and related infrastructure with less thanone-year terms.

The Company holds two non-cancelable obligations for enterprise resource planning and software maintenance with payment obligations as of* December 31, 2025*presented as follows.

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The Company prospectively adopted ASUNo. 2023-09* (see Note2* for further details) which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional disclosure on income taxes paid.

The following table summarizes the income (or loss) before income tax (or benefit) and the income tax (or benefit) from continuing operations for the years ended:

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The following table reconciles the income tax provision (benefit) to the U.S. federal statutory rate for the year ended* December 31, 2025.*

(a) The Company is subject to taxation in the U.S. federal jurisdiction and various state jurisdictions. The significant driver of the state and local income tax expense, net of federal benefit, is primarily attributable to operations in Arkansas (greater than50%).

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Differences between the income tax provision (benefit) computed using the U.S. federal statutory income tax rate were as follows:

The income tax provision in2025 was $165 or an effective tax rate of (0.3%) as compared to an income tax provision of $792 or an effective tax rate of 4.9% in2024 and an income tax provision of $1 or an effective tax rate of 0.0% in2023.

The Company's effective tax rate for2025 reflects the positive effect of the CFPC, new in2025, and the Small Agri-biodiesel Producer Tax Credit that was reinstated with the Budget Reconciliation Act of2025 and extended through* December 31, 2026.*

The Company’s effective tax rates for the years2024, and2023 reflect the positive effect of the BTC and Small Agri-biodiesel Producer Tax Credit. Based on technical guidance from the Internal Revenue Service, the Company excluded the portion of the BTCnot used to satisfy excise tax liabilities from income.

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The significant components of deferred tax assets and liabilities were as follows as of* December 31:*

The Company’s federal net operating loss carryforwards at* December 31, 2025donot* expire and can be carried forward indefinitely. Utilization of these carryforwards is limited to 80% of taxable income in any given year. State net operating loss carryforwards at* December 31, 2025reflect losses generated in2020* through2025 and, if unused, will expire in years2028 through2045.

Federal tax credit carryforwards at* December 31, 2025include the Small Agri-biodiesel Producer Credit and Credit for Increasing Research generated in years2019* through2025 and expiring in2039 through2045. State credit carryforwards comprise Arkansas In-house Research Credits generated in2019 through2020 and expiring in2028 through2029.

Capital loss and charitable contribution carryforwards were generated in2020 through2025 and will expire in2026 through2030.

A valuation allowance is recognized if it is more likely thannot that some portion or all of the deferred tax assets willnot be realized. In assessing the recoverability of its deferred tax assets, the Company evaluates available positive and negative evidence to estimate whether it is more likely thannot that sufficient future taxable income will be generated to permit use of the existing deferred tax assets in each taxing jurisdiction. In making this determination, the Company considers positive evidence in the form of projections of future taxable income, reversing temporary differences, and tax planning strategies. In years in which the Company has experienced objective negative evidence in the form ofthree cumulative years of tax losses, the Companyno longer uses taxable income projections to overcome the presumption of losses and deferred tax asset valuations are computed taking into account tax planning strategies and the reversing net deferred tax liability from temporary differences as sources of income.

As of* December 31, 2025,the Company determined that its deferred tax liabilities wouldnot* be sufficient to support its deferred tax assets and recorded a valuation allowance of $33,916, resulting in a net deferred tax liability of $910. As of* December 31, 2024,*the Company similarly recorded a valuation allowance of $22,385, resulting in a net deferred tax liability of $773.

There areno unrecognized tax positions as of* December 31,*2025,2024, or2023.

The Company records interest expense (income) and penalties, net, as a component of income tax provision (benefit) and had accrued interest and penalties of $0, $0, and $0 for* December 31, 2025,2024 and2023, respectively. Liabilities for accrued interest and tax penalties on unrecognized tax benefits were$0 and $0 at December 31, 2025and2024*, respectively.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and with various state jurisdictions. In general, the Company is subject to U.S., state, and local examinations by tax authorities from 2022 forward.

The following table presents income taxes paid (net of refunds) for the year ending* December 31, 2025:*

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In the years ended* December 31,*2025, 2024 and2023, the Company used the treasury method in computing earnings per share as all shares with participating security holders had vested.

The Company has outstanding restricted stock units (“RSUs”) issued in2024, for 750,000 shares which provide the holder with a non-forfeitable right to receive dividends on the full amount, even prior to vesting. The RSUs, and related dividends, vest infive equal installments on each anniversary of the award date. There wereno other outstanding RSUs for the years ended* December 31,*2025, 2024 and2023.

Basic and diluted earnings per common share were computed as follows:

The effect of incremental shares from the unvested RSUs and options to purchase the Company's common stock werenot included in the calculation of EPS for the year ended* December 31, 2025,as their inclusion would be anti-dilutive due to the reported net loss. Certain options to purchase the Company’s common stock werenot* included in the computation of diluted earnings per share for the years ended* December 31,*2024, and2023 because they were anti-dilutive in the period. The weighted number of options excluded was 47,500,44,000, and 40,060, respectively.

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The Board of Directors of the Company adopted an omnibus incentive plan which was approved by the shareholders of the Company at its2017 annual shareholder meeting (the “Incentive Plan”). The purpose of the plan is to:

The Incentive Plan authorizes the Company to issue stock options (including incentive stock options and nonqualified stock options), common stock awards, and stock appreciation rights. Eligible participants in the plan include: (i) members of the Company’s board of directors and its executive officers; (ii) regular, active employees of the Company and any of its subsidiaries; and (iii) persons engaged by the Company or any of its subsidiaries to render services to the Company or its subsidiaries as an advisor or consultant.

Awards under the Incentive Plan are limited to shares of the Company’s common stock, which* may*be shares acquired by the Company, including shares purchased in the open market, or authorized but un-issued shares. Awards are limited to 10% of the issued and outstanding shares of the Company’s common stock in the aggregate.

The Incentive Plan became effective upon its approval by the Company’s shareholders on* September 7, 2017*and continues in effect for a term often years thereafter unless amended and extended by the Company or unless otherwise terminated.

The Company recognizes compensation expense in its financial statements for common stock-based options, stock units, and stock awards based upon the grant-date fair value over the requisite service period.

In2025, the Company issued the following awards under the Incentive Plan:

In2024, the Company issued the following awards under the Incentive Plan:

In2023, the Company didnot make any grants under the Incentive Plan.

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There wereno stock options exercised in2025, 2024 or2023.

The assumptions used in the determination of the fair value of the options granted are provided in the following table:

The volatility rate for the options granted in2025 and2024 were derived from the historical stock price volatility of the Company’s common stock over the same time period as the expected term of each stock option award. The volatility rate is derived by a mathematical formula using the daily closing stock price data over the expected term.

The expected dividend yield is calculated using the Company’s expected dividend amount at the date of the option grant over the expected term divided by the fair market value of the Company’s common stock.

Forfeitures for RSU grants are recognized as they occur.

For the years ended* December 31, 2025,2024 and2023, total share-based compensation totaled $1,059, $636, and$0, respectively. In the years ended December 31, 2025,and2024,* this balance was recorded as an element of selling, general, and administrative expenses. A reduction to retained earnings for the forfeitable dividend of the RSU was recorded for$51and $277, for the years ended* December 31, 2025and2024,* respectively. As of* December 31, 2025and2024*, there was no unrecognized compensation expense related to stock options. As of* December 31, 2025and2024,* there was unrecognized compensation expense related to restricted stock units of $3,313 and $4,218, respectively. As of* December 31, 2025and2024,* there was unrecognized compensation expense related to restricted stock awards of $54 and$0, respectively.

A summary of the activity of the Company’s stock optionsfor the period beginning* January 1, 2023,and ending December 31, 2025*is presented below.

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There were 3,456,008 shares of stock (options or awards) available for grant under the Incentive Plan. The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable from the Incentive Plan at* December 31, 2025*.

The aggregate intrinsic value of total options outstanding and exercisable was $0 at* December 31, 2025and2024*. Intrinsic value is the amount by which the last trade price of the common stock closest to* December 31, 2025and2024* exceeded the exercise price of the options granted.

St. Albans Global Management, LLC (“St. Albans”), an entity affiliated with Mr. P. A. Novelly II, a member of the board, is entitled to demand that the Company register under the Securities Act of1933, as amended, the resale of all shares of the Company’s common stock beneficially owned by it. If St. Albans exercises its registration rights with respect to all 17,085,100 shares of the Company’s common stock currently owned by it, there will be an additional 6,637,600 registered shares of common stock available for trading in the public market.

Dividends payable at* December 31, 2025was $0.06 per common share or $2,681 payable in March 2026.*

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Defined contribution savings plan

The Company currently offers its employees a company401(k) matching savings plan, which covers substantially all employees. Under this plan, the Company matches the amount of eligible employees’ contributions, subject to specified limits, up to 6% of earnings. Company contributions totaled $2,017, $2,080, and $1,923 for the years ended* December 31, 2025,*2024 and2023, respectively.

The Company enters into transactions with companies affiliated with or controlled by a director or significant stockholder. Revenues, expenses, accounts receivable, prepaid amounts, and unpaid amounts related to these transactions are captured on the consolidated financial statements as related party line items. These related party transactions are summarized in the following table and further described below.

Related party balance sheet accounts

Related party income statement accounts

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Biodiesel, petrodiesel, blends, and other petroleum products

The Company enters into agreements to buy and sell biofuels (biodiesel, petrodiesel, biodiesel/petrodiesel blends, RINs, and biodiesel production byproducts) with an affiliate from time to time. Such agreements are priced at the then-current market price of the product as determined from bids from other customers and/or market pricing services. Cost of goods sold related to these sales includes variable costs and allocated fixed costs. The revenue amounts presented in the table above result when the Company sells biodiesel, petrodiesel, blends, and other petroleum products to a related party regardless of who the material was purchased from. Likewise, cost of goods sold amounts result when biodiesel, petrodiesel, blends, and other petroleum products are purchased from a related party regardless of who the material was sold to.

Natural gas purchases

The Company uses natural gas to generate steam for its manufacturing process and to support certain of its air and waste treatment utilities. The Company terminated this agreement in2021; however, the settlement for the underlying natural gas was finalized in2023.

Distribution and related services

The Company leases oil storage capacity from an affiliate under a storage and throughput agreement. This agreement provides for the storage of biodiesel, diesel or biodiesel/petrodiesel blends, methanol, and biodiesel feedstocks in above-ground storage tankage at designated facilities of the affiliate. Expenses related to this agreement include monthly lease charges, generally on a per-barrel basis, and associated heating, throughput, and other customary terminalling charges. This agreement was terminated* October 31, 2025.*

Commodity trading advisory fees

The Company entered into a commodity trading advisory agreement with an affiliate. Pursuant to the terms of this agreement, the affiliate provides advice to the Company concerning the purchase, sale, exchange, conversion, and/or hedging of commodities as requested from time to time.

Travel and administrative services

The Company reimburses an affiliate for legal, trading, travel and other administrative services incurred on its behalf. Such reimbursement is performed at cost with the affiliate realizingno profit on the transaction.

Income tax and consulting services

An affiliate provides professional services to the Company, primarily around income tax preparation and consulting. The Company also receives certain finance and accounting expertise from this affiliate as requested. Expenses related to these services comprise an agreed quarterly fee plus reimbursement of expenses, at cost and are reported as selling, general, and administrative expenses. These services ended* December 31, 2025.*

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The Company hastwo reportable segments organized along similar product lines – chemicals and biofuels. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note2. The chief operating decision maker (“CODM”) is Roeland Polet, the chief executive officer. The CODM reviews the significant components for each of our segments. The CODM evaluates the performance of each reportable segment and decides how to allocate resources based on segment gross profit (loss) which includes the revenue and expenses that are directly attributable to management of each segment. The CODM uses segment gross profit (loss) to assess the income generated by each reportable segment and to decide which reportable segment to reinvest profits or pay dividends. Segment gross profit (loss) is also used to analyze performance against the budget and the Company’s competitors.

Chemicals

The Company’s chemicals segment manufactures diversified chemical products that are sold tothird party customers. This segment comprisestwo product groups: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals). Included in this segment is warehouse lease rental revenue from a warehouse that was originally acquired for chemical storage.

Biofuels

The Company’s biofuels segment manufactures and markets biodiesel. Biodiesel revenues are generated through the sale of biodiesel to customers through the Company’s distribution network at the Batesville plant, through distribution facilities available at leased oil storage facilities, and through a network of remotely located tanks. Results of the Biofuels segment also reflect the sale of biodiesel blends with petrodiesel, petrodiesel withno biodiesel added, RINs, biodiesel production byproducts, and revenue and profits from Legacy Regional Transport.

Summary of business by segment

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Depreciation is allocated to segment cost of goods sold based on plant usage. Total assets and capital expenditures of the Company havenot been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.

The Company isnot a party to, nor is any of its property subject to, any material pending legal proceedings, other than ordinary routine litigation incidental to its business. However, from time to time, the Company* maybe a party to, or a target of, lawsuits, claims, investigations, and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which the Company expects to be handled and defended in the ordinary course of business. While the Company is unable to predict the outcome of any matters currently pending, the Company doesnot* believe that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows. However, adverse developments could negatively impact earnings or cash flows in future periods.

During the year ended* December**31,* 2024, the Company resolved a prior-year legal dispute which resulted in a cash payment of $2,750 to FutureFuel which is reflected in Other income (expense), net in the Consolidated Statements of Income and Comprehensive Income in thetwelve months ended* December 31, 2024.*

The Company evaluated subsequent events that would require an adjustment to the Company’s consolidated financial statements or require disclosure in the notes to the consolidated financial statements through the date of issuance of the consolidated financial statements. Where applicable, the notes to these consolidated financial statements have been updated to discuss significant subsequent events which have occurred, except as disclosed below.

On* January 27, 2026,the Company experienced an extended downtime of the plant due to the extreme freezing temperatures of Winter Storm Fern. As of February 25, 2026,all butone* continuous process was restarted.

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