Arq, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
ARQ$2.53+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001515156-26-000114
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001515156-26-000136
Item 2. 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 140 previous paragraphs and 139 current paragraphs.
68 unchanged; 59 reworded; 10 added; 9 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 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 (10)
Current report
GAC Production
Current report
Payroll and benefits expense increased by approximately $1.8 million for the three months ended September 30, 2026 compared to the same period in 2025, primarily due to higher incentive compensation expense. The increase was primarily attributable to higher accrued incentive compensation expense during the three months ended September 30, 2026, resulting from expected company performance relative to established performance targets. Accrued incentive compensation expense was lower during the three months ended September 30, 2025, due to expected company performance relative to the applicable performance targets, further contributing to the increase between periods.
Current report
Other income decreased for the three months ended September 30, 2026 compared to the corresponding quarter in 2025 primarily due to a gain from insurance proceeds received during the three months ended September 30, 2025.
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025
Current report
Payroll and benefits expense increased by approximately $2.2 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025, primarily due to severance expense related to the departure of three members of our executive leadership team and employees terminated at our Corbin Facility, which contributed approximately $0.7 million of additional expense during the nine months ended September 30, 2026. Additionally, incentive compensation expense increased by approximately $0.5 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025 due to expected company performance relative to established performance targets. Stock-based compensation expense increased by $0.4 million between periods, driven by inducement awards granted to new executives, as well as the acceleration of outstanding awards related to the departure of previous executives, not included in the severance expense above. The remaining increase relates to employer payroll tax expense associated with other increases, as well as increases in other benefits expenses.
Current report
(a)the future of our GAC Facility, GAC production, and Corbin Facility, as well as our development plans and funding needs associated therewith;
Current report
(b)our efforts to improve operating and financial efficiency, maximize throughput, and optimize unit costs;
Current report
(d)the size and future growth of the PFAS remediation market, including the addressable market for our PAC for PFAS™ products;
Current report
(e)the future of the coal-fired power generated market;
Current report
(m)plans to refinance existing debt;
Removed paragraphs (9)
Previous report
GAC Engineering and Production Process Optimization Review
Previous report
Payroll and benefits expense increased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 by approximately $0.6 million, primarily due to severance expense related to the separation of three members of our executive leadership team, which was recorded during the three months ended June 30, 2026. The increase was partially offset by a decrease in incentive compensation expense.
Previous report
Loss (gain) on sale of assets
Previous report
Comparison of the Six Months Ended June 30, 2026 and 2025
Previous report
Payroll and benefits increased for the six months ended June 30, 2026 compared to the corresponding period in 2025 by approximately $0.4 million, primarily due to severance expense related to the departure of three members of our executive leadership team, severance expense related to employees terminated at our Corbin Facility, and an increase of approximately $0.2 million of share-based compensation associated with executive transition and severance. The increase is partially offset by a decrease in incentive compensation expense.
Previous report
Capital expenditures
Previous report
(a)the future of our GAC Facility and Corbin Facility and the anticipated timing, results, and conclusions of our overall business optimization review and the actions we may take upon the completion of such review, including efforts to maximize throughput and optimize unit costs;
Previous report
(k)any future plant development projects, that may be necessary to remediate design flaws in our GAC Facility, and our ability to finance any such projects;
Previous report
(m)probability of any loss occurring with respect to certain guarantees made by Tinuum Group;
Reworded paragraphs (59)
Previous wording
The following discussion and analysis of our financial condition and results of our operations should be read together with the unaudited Condensed Consolidated Financial Statements and notes of Arq, Inc. ("Arq" or the "Company") included elsewhere in Item 1 of Part I ("Item 1") of this Quarterly Report and with the audited consolidated financial statements and the related notes of Arq included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").
Current wording
The following discussion and analysis of our financial condition and results of our operations should be read together with the unaudited Condensed Consolidated Financial Statements and notes of Arq, Inc. ("Arq" or the "Company") included in Item 1 of Part I ("Item 1") of this Quarterly Report and with the audited consolidated financial statements and the related notes of Arq included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").
Previous wording
Our primary products are comprised of AC, which is produced from a variety of carbonaceous raw materials. Our AC products include both powdered activated carbon ("PAC") and granular activated carbon ("GAC"). Additionally, we own the Five Forks Mine, a lignite mine located in Saline, Louisiana, that currently supplies the primary raw material for the manufacturing of our products. We also control bituminous coal waste reserves and own a manufacturing facility, both located in Corbin, Kentucky (the "Corbin Facility"), and a process to recover and purify the bituminous coal fines. Using the Corbin Facility's manufacturing process, we convert coal waste into a purified, microfine carbon powder ("Corbin Wetcake") for use in high-value applications. On August 6, 2025, we announced that we had successfully commissioned our Red River Plant’s GAC Facility (the "GAC Facility") and produced our first commercial volumes of on-specification GAC product. However, after initial production runs, in December 2025, it became clear that ramp-up to nameplate capacity could not be accomplished without further modifications to the existing systems because of design flaws in our GAC Facility. In March 2026, we decided to pause GAC production, continue to idle the Corbin Facility as a cost saving measure, and launch an engineering and production process optimization review, including an evaluation of potential GAC Facility design modifications and production economics at different scales. Additionally, we now expect to transition away from using Corbin Wetcake for the production of our GAC products to a bituminous coal feedstock with proven performance.
Current wording
Our primary products are comprised of AC, which is produced from a variety of carbonaceous raw materials. Our AC products include both powdered activated carbon ("PAC") and granular activated carbon ("GAC"). Additionally, we own the Five Forks Mine, a lignite mine located in Saline, Louisiana, that currently supplies the primary raw material for the manufacturing of our products at our facility in Coushatta, Louisiana (the "Red River Plant"). We also control bituminous coal waste reserves and own a manufacturing facility, both located in Corbin, Kentucky (the "Corbin Facility"), and a process to recover and purify the bituminous coal fines. Using the Corbin Facility's manufacturing process, we are able to convert coal waste into a purified, microfine carbon powder ("Corbin Wetcake") for use in high-value applications. On August 6, 2025, we announced that we had successfully commissioned our Red River Plant’s GAC Facility (the "GAC Facility") and produced our first commercial volumes of on-specification GAC product. However, after initial production runs, in December 2025, it became clear that ramp-up to nameplate capacity could not be accomplished without further modifications to the existing systems because of design flaws in our GAC Facility. In March 2026, we decided to pause GAC production, continue to idle the Corbin Facility as a cost saving measure, and launch an engineering and production process optimization review, including an evaluation of potential GAC Facility design modifications and production economics at different scales. Additionally, we now expect to transition away from using Corbin Wetcake to a bituminous coal feedstock with proven performance upon resuming production of our bituminous GAC products.
Previous wording
We continue to believe that Corbin Wetcake has the potential to enable us to access new markets and applications. We intend to secure customer interest in Corbin Wetcake as an additive into other markets, such as a component for asphalt, or for use in the purified coal and synthetic graphite industries. In addition, we are exploring uses for certain rare earth minerals and critical elements that can be contained within material from the manufacturing process at our Corbin Facility for further recovery and concentration by others. These applications are currently in early stages of proof-of-concept testing or preliminary customer testing.
Current wording
We continue to believe that Corbin Wetcake has the potential to enable us to access new markets and applications. We intend to secure customer interest in Corbin Wetcake as an additive into other markets, such as a component for asphalt road pavement, or for use in the purified coal for energy generation applications. These applications are currently in early stages of proof-of-concept testing or preliminary customer testing.
Previous wording
Drivers of demand and current key factors affecting our profitability are sales of our AC products to the APT market. Our operating results are influenced by: (1) changes in our manufacturing production and sales volumes; (2) changes in price and product mix; (3) changes in coal-fired dispatch and electricity power generation sources; (4) changes in demand for contaminant removal within water treatment facilities; (5) changes in environmental regulations; and (6) state or municipal approval and customer acceptance of our new products.
Current wording
Demand for our products, as well as key factors that affect our profitability and operating results are influenced by: (1) changes in our manufacturing production and sales volumes; (2) changes in price and product mix; (3) changes in coal-fired dispatch and electricity power generation sources; (4) changes in demand for contaminant removal within water treatment facilities; (5) changes in environmental regulations; and (6) state or municipal approval and customer acceptance of our new products.
Previous wording
For the three and six months ended June 30, 2026, we experienced an increase in demand for our products from certain coal-fired dispatch and electricity power generation customers compared to the same period in 2025. This was primarily due to the year-to-date impact of moderate to severe temperatures during the winter and summer seasons, resulting in higher demand for power generation, and the impact of steady natural gas prices, resulting in several large utility customers opting to use coal versus natural gas as a primary source for power generation. Additionally, demand for power generation has grown and continues to grow driven by macroeconomic trends, such as increased consumption related to data and computer centers, electric vehicles, and other large-scale power consumers. We expect that natural gas prices will remain relatively consistent through 2026 at an elevated level due to increased demand for liquid natural gas exports, and conflict in the Middle East impacting supply, partially offset by increases in anticipated natural gas inventory levels.
Current wording
For the three and nine months ended September 30, 2026, we experienced an increase in demand for our products from certain coal-fired dispatch and electricity power generation customers compared to the same period in 2025. Demand for power generation has grown and continues to grow driven by macroeconomic trends. We expect that natural gas prices will remain relatively consistent through 2026 at elevated levels due to increased demand for liquified natural gas exports, and conflict in the Middle East impacting supply, partially offset by increases in anticipated natural gas inventory levels. Furthermore, under rules promulgated by the United States Environmental Protection Agency (the “EPA”), beginning April 2027 public water systems will be required to report the level of PFAS contamination in their water with the goal of reducing such levels to four parts per trillion by 2029 or 2031. We expect that the requirement to publish PFAS contamination may have a material impact on our results of operations in the near term as public water systems utilize our products, such as our PAC for PFAS™ product, to reduce the level of PFAS present in their water.
Previous wording
The decision to pause GAC production, continue idling the Corbin Facility as a cost saving measure, and launch an engineering and production process optimization review was made in March 2026, following the review of independent testing results received in January 2026. This testing demonstrated that the thermal oxidizer in place could only support approximately 15 million pounds of annual GAC production, and would require additional modifications to achieve our original design capacity of 25 million pounds or higher. Our analysis indicates that a 15 million pound per year scenario on a stand-alone basis does not provide sufficient returns to make it economically attractive. The optimization review remains ongoing and is expected to determine production scale, capital requirements, and return profiles before we commit to additional investment in our GAC Facility. We have since expanded the optimization review to include a broader operational assessment of our overall business, which has focused on maximizing furnace throughput and reducing unit costs for each of our products, including our PAC and GAC products.
Current wording
The decision to pause GAC production, continue idling the Corbin Facility as a cost saving measure, and launch an engineering and production process optimization review was made in March 2026, following the review of independent testing results received in January 2026. This testing demonstrated that the thermal oxidizer in place for processing off-gas treatment could only support approximately 15 million pounds of annual GAC production, and would require additional modifications to achieve our original design capacity of 25 million pounds or higher. Our analysis indicates that a 15 million pound per year scenario on a stand-alone basis does not provide sufficient returns to make it economically attractive.
Previous wording
Due to the issues described above, we do not expect GAC production in fiscal year 2026 or 2027.
Current wording
This strategic optimization review is effectively complete, and the preferred design, estimated costs, and timing associated with restarting and ramping our GAC Facility up to our target capacity have been determined. As discussed above, we continue to pause production at our GAC Facility and will proceed with further investment when the returns are economically attractive. Because of this, and due to the issues described above, we do not expect GAC Facility production in fiscal year 2026 or 2027.
Previous wording
For the three and six months ended June 30, 2026, we recognized net loss of $0.7 million and $1.9 million, respectively, compared to net loss of $2.4 million and $2.4 million, respectively, for the three and six months ended June 30, 2025. The most significant factors impacting results between periods for the three months ended June 30, 2026 and June 30, 2025 were increases in revenue due to increased pricing and demand for our products, offset by increases in severance expense related to the previously disclosed departures of certain members of our executive team.
Current wording
For the three and nine months ended September 30, 2026, we recognized net income of $2.5 million and $0.6 million, respectively, compared to net loss of $0.9 million and $3.3 million, respectively, for the three and nine months ended September 30, 2025. The most significant factors impacting results between periods for the three months ended September 30, 2026 and September 30, 2025 were increases in revenue due to demand for our products, partially offset by increases in severance expense related to the previously disclosed departures of certain members of our executive team.
Previous wording
The following sections provide additional information regarding these comparable periods. For comparability purposes, the following tables set forth our results of operations for the periods presented in the Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report. The current year period to prior year period comparisons of financial results may not be indicative of financial results to be achieved in future periods.
Current wording
The following sections provide additional information regarding these comparable periods. For comparability purposes, the following tables set forth our results of operations for the periods presented in the Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report. The current year period to prior year period comparisons of financial results may not be indicative of future financial results.
Previous wording
For the three months ended June 30, 2026, revenue increased from the comparable quarter in 2025 primarily driven by the impact of increased pricing, which contributed additional revenues of $1.3 million, as well as higher sales volumes of our AC products, which contributed additional revenues of approximately $1.0 million of the total revenue increase. These increases were partially offset by a decrease in revenue attributable to lower sales of our chemicals products during the three months ended June 30, 2026, which caused revenue to decrease by $1.1 million from the comparable quarter in 2025. The increases due to higher pricing and volumes sold were primarily attributable to sales to customers in the power-generation market, driven by seasonal electricity demand. Notably, our revenues continue to be impacted by electricity demand driven by seasonal weather and power generation needs.
Current wording
For the three months ended September 30, 2026, revenue increased from the comparable quarter in 2025 primarily driven by higher sales volumes of our AC products, which contributed additional revenues of approximately $3.8 million. Additionally, higher sales of our other chemicals products during the three months ended September 30, 2026 contributed an increase in revenue of $0.2 million from the comparable quarter in 2025. These increases were partially offset by a decrease in revenue attributable to a decrease in the average selling price between periods and a decrease due to product mix sold, which offset $0.6 million and $0.2 million, respectively, of the increase. The increase due to volumes sold was primarily attributable to sales to customers in the power-generation market, driven by seasonal electricity demand. Our revenues continue to be impacted by electricity demand driven by seasonal weather and power generation needs.
Previous wording
During the three months ended June 30, 2026, our gross margin was favorably impacted by both the pause in production at our Corbin Facility, which we idled indefinitely as of December 2025, and improved mix during the three months ended June 30, 2026 due to lower sales of our lower-margin chemical products compared to the same period in 2025. These favorable impacts to gross margin were partially offset by an increase in our costs per unit during the three months ended June 30, 2026, which were primarily due to increases in salaries and wages of our operations personnel and utilities costs. These factors resulted in the majority of the approximately $0.7 million decrease in Cost of revenue, exclusive of depreciation and amortization for the three months ended June 30, 2026 compared to the comparable quarter in 2025.
Current wording
During the three months ended September 30, 2026, our gross margin was favorably impacted by the cost savings associated with the pause in production at our Corbin Facility, which we idled indefinitely as of December 2025. Additionally, our gross margin was favorably impacted by lower maintenance and outside service expenses during the three months ended September 30, 2026, as the comparable period in 2025 included costs attributable to planning and production of our GAC products. These favorable impacts to gross margin were partially offset by an increase in the salaries and wages of our operations personnel, as well as increased utilities costs, for the three months ended September 30, 2026. These factors were primarily responsible for the approximately $1.9 million decrease in Cost of revenue, exclusive of depreciation and amortization for the three months ended September 30, 2026 compared to the comparable quarter in 2025.
Previous wording
We expect that revenue will continue to be positively impacted by demand for our PAC products. As we have paused production of our GAC products at our Red River Plant, we expect that gross margin will continue to improve as the impact of fixed production costs related to our GAC products on our gross margin lessens. Further, as we conduct a comprehensive engineering and production process optimization review related to our GAC products, we expect to improve the operational efficiency of PAC production at our Red River Plant and improve our product mix to higher margin products.
Current wording
We expect that revenue will continue to be positively impacted by demand for our PAC products, including increased demand related to the use of PAC for PFAS treatment. As we have paused production at our GAC Facility at our Red River Plant, we expect that gross margin will continue to improve relative to 2025 as the impact of fixed production costs related to our GAC Facility on our gross margin lessens.
Previous wording
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for further discussion.
Current wording
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report for further discussion.
Previous wording
Legal and professional fees decreased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 by approximately $0.1 million, primarily due to decreased legal and recruiting fees incurred during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was partially offset by increased accounting and audit fees and interim executive consulting costs during the three months ended June 30, 2026.
Current wording
Legal and professional fees increased by approximately $0.5 million for the three months ended September 30, 2026 compared to the corresponding quarter in 2025, primarily due to increased accounting and audit fees and interim executive consulting costs and increased legal fees incurred during the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
General and administrative expenses increased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 by approximately $0.4 million, primarily due to increases in expenses related to property taxes, software maintenance fees, sales, use, and franchise taxes, and outside labor.
Current wording
General and administrative expenses increased by approximately $0.2 million for the three months ended September 30, 2026 compared to the corresponding quarter in 2025, primarily due to increases in expenses related to property taxes, sales, use, and franchise taxes, recruiting costs and outside labor. The increases were partially offset by a decrease in software licensing fees and travel expense.
Previous wording
Research and development expense decreased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 by $1.7 million, primarily due to expenses related to feedstock consumed during initial testing of the GAC Facility during the three months ended June 30, 2025.
Current wording
Research and development expense decreased by approximately $1.8 million for the three months ended September 30, 2026 compared to the corresponding quarter in 2025, primarily due to expenses related to outside services engaged and feedstock consumed during initial testing of the GAC Facility during the three months ended September 30, 2025.
Previous wording
Depreciation, amortization, depletion and accretion expense increased by approximately $0.8 million for the three months ended June 30, 2026 compared to the corresponding quarter in 2025, primarily due to a significant amount of plant and equipment placed in service during the second half of 2025, partially offset by decreased depreciation expense related to assets at our Corbin Facility, which were impaired during the fourth quarter of 2025.
Current wording
Depreciation, amortization, depletion and accretion expense increased by approximately $0.1 million for the three months ended September 30, 2026 compared to the corresponding quarter in 2025, primarily due to planned major maintenance costs capitalized in the second quarter of 2026. The increase is also attributable to depreciation expense related to property, plant and equipment placed in service during August 2025.
Previous wording
Interest expense increased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 by $0.2 million primarily due to higher average outstanding balances on the Company's outstanding debt facilities in the current quarter.
Current wording
Interest expense increased by approximately $0.2 million for the three months ended September 30, 2026 compared to the corresponding quarter in 2025, primarily due to higher average outstanding balances on the Company's outstanding debt facilities throughout the current quarter.
Previous wording
For the three months ended June 30, 2026 and 2025, we had pretax loss of $0.7 million and $2.4 million, respectively. For the three months ended June 30, 2026 and 2025, we had an effective tax rate of zero and recorded no income tax benefit due to the recording of a full valuation allowance on our deferred tax assets.
Current wording
For the three months ended September 30, 2026 and 2025, we had pretax income of $2.5 million and pretax loss of $0.9 million, respectively. For the three months ended September 30, 2026, we had an effective tax rate of zero and recorded no income tax expense based on our operating forecast for the year ending December 31, 2026. For the three months ended September 30, 2025, we had an effective tax rate of zero and recorded no income tax benefit due to the recording of a full valuation allowance on our deferred tax assets.
Previous wording
A summary of the components of Revenue and Cost of revenue, exclusive of depreciation and amortization for the six months ended June 30, 2026 and 2025 is as follows:
Current wording
A summary of the components of Revenue and Cost of revenue, exclusive of depreciation and amortization for the nine months ended September 30, 2026 and 2025 is as follows:
Previous wording
For the six months ended June 30, 2026, revenue increased from the comparable period in 2025 primarily driven by increased volumes and higher pricing, which contributed revenue increases of approximately $2.3 million and $0.6 million, respectively. The increase in volumes sold was primarily attributable to sales to customers in the industrial and municipal water markets, as well as the power-generation market, driven by continued higher natural gas prices between periods. The average Henry Hub natural gas spot prices ($/MMBtu) for the six months ended June 30, 2026 and 2025 were $3.87 and $3.67, respectively. Additionally, sales of our chemical products contributed an increase of $0.2 million in revenue for the six months ended June 30, 2026 compared to the comparable period in 2025.
Current wording
For the nine months ended September 30, 2026, revenue increased from the comparable period in 2025 primarily driven by higher sales volumes, which contributed a revenue increase of approximately $5.9 million. The increase in volumes sold was primarily attributable to sales to customers in the industrial and municipal water markets, as well as the power-generation market, driven by increased electricity demand and continued higher natural gas prices between periods. Additionally, sales of our chemical products contributed an increase of $0.4 million in revenue for the nine months ended September 30, 2026 compared to the comparable period in 2025.
Previous wording
For the six months ended June 30, 2026, gross margin, exclusive of depreciation and amortization, increased from the comparable period in 2025. During the six months ended June 30, 2026, our gross margin was favorably impacted by decreases in production expenses due to the pause in production at our Corbin Facility, which had begun production in April 2025 and which we idled indefinitely as of December 2025. This favorable impact was offset by an inventory revaluation charge during the first quarter of 2026. These factors were primarily responsible for the approximately $1.1 million increase in Cost of revenue, exclusive of depreciation and amortization for the six months ended June 30, 2026 compared to the comparable period in 2025.
Current wording
For the nine months ended September 30, 2026, gross margin, exclusive of depreciation and amortization, increased from the comparable period in 2025. Gross margin was favorably impacted by decreases in production expenses due to the pause in production at our Corbin Facility, which had begun production in April 2025 and which we idled indefinitely as of December 2025. Additionally, our gross margin was favorably impacted by lower maintenance and outside services during the nine months ended September 30, 2026, as the comparable period in 2025 included costs attributable to the planning of and production at our GAC Facility. These favorable impacts were partially offset by increases in the cost of freight to transport our products, as well as an inventory revaluation charge recorded during the first quarter of 2026. These factors were primarily responsible for the approximately $0.8 million decrease in Cost of revenue, exclusive of depreciation and amortization for the nine months ended September 30, 2026 compared to the comparable period in 2025.
Previous wording
A summary of the components of our operating expense for the six months ended June 30, 2026 and 2025 is as follows:
Current wording
A summary of the components of our operating expense for the nine months ended September 30, 2026 and 2025 is as follows:
Previous wording
A summary of the components of selling, general and administrative expenses for the six months ended June 30, 2026 and 2025 is as follows:
Current wording
A summary of the components of selling, general and administrative expenses for the nine months ended September 30, 2026 and 2025 is as follows:
Previous wording
Legal and professional fees increased for the six months ended June 30, 2026 compared to the corresponding period in 2025 primarily due to additional legal and consulting fees incurred in connection with ongoing litigation with our former engineering firm, increased accounting and audit fees, and executive transition costs incurred during the six months ended June 30, 2026.
Current wording
Legal and professional fees increased by approximately $1.0 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025, primarily due to additional legal and consulting fees incurred in connection with ongoing litigation with our former engineering firm, increased accounting and audit fees, and executive transition costs incurred during the nine months ended September 30, 2026.
Previous wording
General and administrative expenses increased for the six months ended June 30, 2026 compared to the corresponding period in 2025 by approximately $1.3 million, primarily due to increases in insurance, property tax and recruiting expenses. Also contributing to the increase in general and administrative expense were utilities costs related to the Corbin Facility, which are included in general and administrative expenses, however, previously were recorded to Cost of revenue, exclusive of depreciation and amortization.
Current wording
General and administrative expenses increased by approximately $1.5 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025, primarily due to increases in insurance, property tax and recruiting expenses. Also contributing to the increase in general and administrative expense were utilities costs related to the Corbin Facility, which are included in general and administrative expenses, however, previously were recorded to Cost of revenue, exclusive of depreciation and amortization.
Previous wording
Research and development expense decreased for the six months ended June 30, 2026 compared to the corresponding period in 2025 by approximately $1.6 million. The decrease was primarily due to expenses related to feedstock consumed and outside services engaged during initial testing of the GAC Facility during the six months ended June 30, 2025.
Current wording
Research and development expense decreased by approximately $3.4 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025. The decrease was primarily due to expenses related to feedstock consumed and outside services engaged during initial testing of the GAC Facility during the nine months ended September 30, 2025.
Previous wording
Depreciation, amortization, depletion and accretion expense increased by approximately $1.3 million for the six months ended June 30, 2026 compared to the corresponding period in 2025, primarily due to a significant amount of plant and equipment placed in service during the second half of 2025, partially offset by decreased depreciation expense related to assets at our Corbin Facility, which were impaired during the fourth quarter of 2025.
Current wording
Depreciation, amortization, depletion and accretion expense increased by approximately $1.4 million for the nine months ended September 30, 2026 compared to the corresponding period in 2025, primarily due to a significant amount of plant and equipment placed in service during the second half of 2025 and additions to our capitalized planned major maintenance costs in the first and second quarters of 2026. These increases were partially offset by decreased depreciation expense related to assets at our Corbin Facility, which were impaired during the fourth quarter of 2025.
Previous wording
Loss on sale of assets for the six months ended June 30, 2026 related to the disposal of a piece of machinery, which was replaced during our biannual plant maintenance. Loss on sale of assets for the six months ended June 30, 2025 related to the disposal of construction assets no longer in use.
Current wording
Loss on sale of assets for the nine months ended September 30, 2026 related to the disposal of a piece of machinery, which was replaced during our biannual plant turnaround. Loss on sale of assets for the nine months ended September 30, 2025 related to the disposal of construction assets no longer in use.
Previous wording
A summary of the components of other income (expense) for the six months ended June 30, 2026 and 2025 is as follows:
Current wording
A summary of the components of other income (expense) for the nine months ended September 30, 2026 and 2025 is as follows:
Previous wording
Interest expense increased for the six months ended June 30, 2026 compared to the corresponding period in 2025 primarily due to higher average outstanding balances on the Company's outstanding debt facilities in the current period.
Current wording
Interest expense increased for the nine months ended September 30, 2026 compared to the corresponding period in 2025 primarily due to higher average outstanding balances on the Company's outstanding debt facilities in the current period.
Previous wording
Other income increased for the six months ended June 30, 2026 compared to the corresponding period in 2025, which was primarily driven by interest income recorded during the six months ended June 30, 2026.
Current wording
Other income increased for the nine months ended September 30, 2026 compared to the corresponding period in 2025, which was primarily driven by interest income recorded during the nine months ended September 30, 2026.
Previous wording
For the six months ended June 30, 2026 and 2025, we had pretax losses of $1.9 million and $2.4 million, respectively. For the six months ended June 30, 2026 and 2025, we had an effective tax rate of zero and recorded no income tax benefit due to the recording of a full valuation allowance on our deferred tax assets.
Current wording
For the nine months ended September 30, 2026 and 2025, we had pretax income of $0.6 million and pretax loss of $3.3 million, respectively. For the nine months ended September 30, 2026, we had an effective tax rate of zero and recorded no income tax expense based on our operating forecast for the year ending December 31, 2026. For the nine months ended September 30, 2025, we had an effective tax rate of zero and recorded no income tax benefit due to the recording of a full valuation allowance on our deferred tax assets.
Previous wording
To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by non-cash gains, increased by share-based compensation expense, executive transition and severance(2), GAC Facility pre-production feedstock, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net loss in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net loss, the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.
Current wording
To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by non-cash gains, increased by stock-based compensation expense, executive transition and severance(2), GAC Facility pre-production feedstock, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net loss in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net loss, the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.
Previous wording
The following table reconciles net loss, our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA.
Current wording
The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA.
Previous wording
(2)Represents expenses related to executive severance and separation, as well as legal fees and recruiting costs associated with the CFO, COO and CAO transitions. In addition to these amounts, we also incurred approximately $0.2 million of share-based compensation associated with executive transition and severance during the three months ended June 30, 2026, which is included in the Share-based compensation adjustment above.
Current wording
(2)Represents expenses related to executive severance and separation, as well as legal fees and recruiting costs associated with the CFO, COO and CAO transitions. In addition to these amounts, we also incurred approximately $0.2 million of stock-based compensation associated with executive transition and severance during the nine months ended September 30, 2026, which is included in the Stock-based compensation adjustment above.
Previous wording
(3)Represents expenses related to feedstock utilized in pre-production testing of our GAC Facility during the three months ended June 30, 2025 included within "Research and development" expense in the Condensed Consolidated Statements of Operations.
Current wording
(3)Represents expenses related to feedstock utilized in pre-production testing of our GAC Facility during the three and nine months ended September 30, 2025 included within "Research and development" expense in the Condensed Consolidated Statements of Operations.
Previous wording
•cash on hand of $0.9 million, excluding $11.2 million of restricted cash primarily pledged as collateral under a surety bond agreement and escrow for our term loan with Community Trust Bank, Inc. (the "CTB Loan"), described in Note 4 of the Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report;
Current wording
•cash on hand of $7.8 million, excluding $11.3 million of restricted cash primarily pledged as collateral under a surety bond agreement and escrow for our term loan with Community Trust Bank, Inc. (the "CTB Loan"), described in Note 4 of the Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report;
Previous wording
Cash and restricted cash decreased from $15.0 million as of December 31, 2025 to $12.1 million as of June 30, 2026. The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025:
Current wording
Cash and restricted cash increased from $15.0 million as of December 31, 2025 to $19.1 million as of September 30, 2026. The following table summarizes our cash flows for the nine months ended September 30, 2026 and 2025:
Previous wording
Cash flows used in operating activities for the six months ended June 30, 2026 were $2.7 million, which represented a decrease of $2.6 million from cash used in operating activities for the six months ended June 30, 2025 of $5.3 million. The net increase in cash flow from operating activities was primarily attributable to an increase in changes in net loss, exclusive of non-cash adjustments presented, and working capital, which contributed increases of $2.8 million and $0.4 million, respectively, in cash flow between periods. The increase in the change in working capital between periods was primarily driven by changes in accounts payable and accrued expense balances. These increases were offset by a decrease in the change in Other long-term assets, net, of $0.6 million in cash flow between periods.
Current wording
Cash flows provided by operating activities for the nine months ended September 30, 2026 were approximately $7.7 million, which represented an increase of approximately $7.7 million from cash provided by operating activities for the nine months ended September 30, 2025. The net increase in cash flow from operating activities was primarily attributable to an increase in changes in net income (loss), exclusive of non-cash adjustments presented, and working capital, which contributed increases of $7.3 million and $0.4 million, respectively, in cash flow between periods. The increase in the change in working capital between periods was primarily driven by changes in accounts payable and accrued expense balances. These increases were offset by a decrease in the change in Other long-term assets, net, of $0.2 million in cash flow between periods.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report for further discussion.
Current report — wording carried from elsewhere
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report for further discussion.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Loss on sale of assets for the three months ended June 30, 2026 related to the disposal of a piece of machinery which was replaced during the biannual shutdown of our Red River Plant for maintenance.
Previous report — wording carried elsewhere
Other income increased for the three months ended June 30, 2026 compared to the corresponding quarter in 2025 primarily due to interest income recorded during the three months ended June 30, 2026.
Previous report — wording carried elsewhere
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for further discussion.
Previous report — wording carried elsewhere
(1)Adjusted to reflect the retrospective change in accounting method for planned major maintenance costs. See Note 1 and Note 12 of Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for further discussion.