Welcome to the March 12, 2015, Aemetis Earnings Review and Business Update Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Todd Waltz, the Executive Vice President and Chief Financial Officer of Aemetis. Mr. Waltz, you may begin.

Thank you, Rob. Welcome to the Aemetis March Earnings Review and Business Update Conference Call. Before we begin our presentation, I would like to read the following disclaimer statement. This conference call will contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements discussed on this conference call will include without limitation, statements regarding expectations for financial performance, revenue, margin and operational efficiencies; our refinancing activity and funds to be received under our EB-5 loan program; increasing production at our biodiesel and glycerin biorefinery in India; expanding our business into rapidly growing markets with new technologies and products, including renewable jet fuel and diesel; expectations regarding continuing export demand; our positioning to be a leader in the next generation opportunities with our industry; our plans to construct and operate a liquid CO2 unit at our Keyes ethanol plant; and further reductions in our outstanding debt. Words or phrases such as anticipates, may, will, should, believes, estimates, expects, intends, plans, predicts, projects, potential, targets, will likely result, will continue or similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risk and uncertainty. A number of factors could cause actual future results to differ materially from historical results or from those expected or implied by such forward-looking statements, including those identified in our filings with the SEC. Such forward-looking statements are based on our best estimates of future results, performance or achievements, based on current conditions and our most recent results. We do not undertake to publicly update or revise our forward-looking statements even if future changes make it apparent that any projected result will not be realized. Our discussion on this call will include review of non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in our earnings release for the quarter and year ended December 31, 2014, which is available on our website in the Media section under Press Releases tab. Adjusted EBITDA is defined as net income or loss plus, to the extent deducted in calculating such net income, interest expense, loss on extinguishment, income tax expense, intangible and other amortization expense, depreciation expense, and share-based compensation expense. Our press release with details of today’s earnings review can be found at the company’s website, www.aemetis.com in the Media section under Press Releases. Now I would like to introduce the Founder, Chairman, and Chief Executive Officer of Aemetis, Inc., Mr. Eric McAfee.

Thank you, Todd. We welcome our shareholders and financial markets professionals to today's Aemetis March 2015 earnings review and business update conference call. For newer investors and participants, I suggest visiting the Aemetis website at aemetis.com to review today’s earnings press release, the updated Aemetis corporate presentation, Aemetis filings with the SEC and previous Aemetis business update conference calls. Todd Waltz, Aemetis’ Chief Financial Officer, will now provide a review of the company’s 2014 year-end and fourth quarter financial results, and then I will give a business update, which will be followed by a question-and-answer session. So let’s begin the financial review. Todd?

Thank you, Eric. I’m pleased to report that we improved on major aspects of our business in 2014 compared to previous years. Stronger gross profits, combined with reductions in sales, general, and administrative costs, as well as a reduction in interest expense, all contributed to the company’s profitability in 2014. For the full year of 2014, Aemetis’ revenues grew to a record $208 million, a 17% increase over 2013’s revenues of $178 million. In addition, gross profit grew substantially to $37 million, up 103% from $18 million in 2013, and operating income increased to $24 million, an increase of $21.6 million over operating income in 2013 of $2.5 million. Net income for 2014 was $7.1 million, or $0.35 per diluted share, a significant improvement to 2013’s loss of $24.4 million and $1.28 per diluted share, respectively. The company also recorded record adjusted EBITDA of $30 million in 2014, up from $10 million in 2013. In 2014, interest expense and amortizations was reduced by 38% to $17.4 million, a significant reduction from the $28 million of interest expense and amortizations in 2013, which reflects an improvement of our cash flow generated from operations, as well as principal reductions made in 2014 from EB-5 funding. In addition, SG&A expense was reduced in 2014 to $12.6 million, down from $15.3 million in 2013, further contributing to overall profitability. At the operational level, in 2014 Aemetis recorded record production of 60.2 million gallons of ethanol and 408,000 tons of wet distiller’s grains at the Keyes plant in California. Our ethanol plant operations averaged 109% of nameplate capacity in 2014, compared to 103% of capacity in the nine months of operation in 2013. In 2014, the Aemetis Keyes ethanol facility recorded only one day of downtime for scheduled maintenance. Additionally, our India subsidiary produced 9,000…

Thank you, Todd. Aemetis continues to achieve important milestones that are creating significant value for shareholders. Aemetis is seeking to commercialize the conversion of first generation biodiesel and ethanol plants into integrated production facilities that produce an expanded portfolio of higher-value products, such as renewable jet fuel, renewable diesel, renewable chemicals, as well as valuable products from liquefied CO2. For those of you who may be new to our company, let me take a moment to give you some brief background information. Aemetis was founded in 2006, and we own and operate 110 million gallons per year of renewable fuel production capacity in the U.S. and in India. Included in our production portfolio is a 60 million gallon per year capacity ethanol plant located in Keyes, California, which is near Modesto in California’s Central Valley. We also own and operate a 50 million gallon per year capacity distilled biodiesel and refined glycerin biorefinery on the East Coast of India, near the port city of Kakinada. Aemetis operates the largest capacity renewable fuels production facility in California, and is the largest U.S.-owned renewable fuels producer in Asia. We also operate a research and development facility at the Maryland Biotech Center for the development of patented microbes for biofuels and biochemicals production. As Todd just mentioned, in 2014 Aemetis had record revenues of $208 million, record adjusted EBITDA of $30 million, and very strong gross profit, operating income and net income. Our Keyes ethanol plant recorded record production of fuel and wet distiller’s grains, which is sold without drying and used as high-value, high-protein animal feed by local dairies. The India biorefinery produced 9,000 metric tons of biodiesel and 2,200 metric tons of refined glycerin, both of which we expect to show significant growth in 2015 due to significant policy improvements in…

Thank you, Mr. McAfee. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Scott Ozer with Sandlapper Securities. Please proceed with your question.

Hi. How are you, Eric?

Good, Scott. Good to hear from you.

Did you say, I think I missed it, how much you reduced in debt? And are there any comments about the increase in ethanol being blended in fuels in the future?

Let’s take the fuels in future question first. As I think everybody knows, the EPA was under Federal law obligated to announce in November 1 of 2013 what the 2014 blended ethanol would be in United States. Federal law provides for 14.4 million gallons of blend. There is some political intervention by the White House. They did not propose a compliance with Federal law. They just have postponed announcing what the 2014 number would be. Again, as I’m sure everyone knows, there are only two criteria that can be used by the EPA. The first criteria is whether it causes severe economic harm to U.S. economy. That has been litigated and that’s no longer an issue for anybody. Number two is whether there is sufficient capacity. And the U.S. produced 14.4 billion gallons of ethanol in the year 2014. The mandate was 2014, 14.4 billion gallons. So just almost coincidently the industry produced exactly the amount required under the ethanol mandate. So we obviously had traditional capacity that we actually produced the ethanol for the year. So the EPA has backed itself into a bit of a corner. They really don’t have any regulatory authority to do anything other than to announce the 14.4 for 2014 and 15.0 for 2015 for ethanol. And we anticipate that their statements that that will happen by June of this year is probably accurate. Their – this has became a political hot potato and we’re getting back into presidential season again, so this may be a loss of somebody’s desk and so we do expect that there will be an announcement. The affect on the industry has been dramatic. I think that’s the right term. The decline in crude oil is relevant and impactful, but frankly not having enforcement of federal law is most…

Okay, and also how much of the debt is paid back –

I was actually doing that calculation for you. We have – I’m going to include the first quarter. It’s now March 12, so we are almost through the first quarter. But our EB-5 program funds basically directly flow to the payment of our bridge funding. So we are basically almost on a dollar for dollar basis, we bring in this low cost EB-5 financing, we turn around and we reduce our high-class bridge financing. So the total net new dollars as of March 12 from that program just in the first quarter is $17 million. So, we are looking at $17 million reduction of senior debt in this quarter to-date. It will be more than that by the time we get at end of the quarter, but that’s just in EB-5. And then of course we had a reduction during Q4. We started the year at $73 million of senior secured debt, ended the year at approximately $60 million approximately. So, if you have the two together, we are talking about a reduction in senior debt in excess of $32 million through a combination of our EB-5 funding and operational positive cash flow. On top of that of course, we paid interest in Other Cost as we described. Those costs are decreasing, but still we are a significant use of funds in 2014.

Okay. Thank you very much.

Yeah, certainly.

There are no further questions at this time. I’d like to turn the floor back over to management for closing comments.

Terrific.

Excuse me?

We got Tom Welch that I think wants to make a question here. Do you want to take him into the queue.

Our next question comes from Tom Welch with Ameriprise. Please proceed with your question.

Hey, thank you for taking my question. Looking at the numbers for the biodiesel plant in India, through the Q2 of 2013, plant looks like it’s running at about 25% of capacity. Moving forward to Q4 of 2014 it looks like it was running at about 4% capacity. And I know that the Indian government has been deregulating its subsidies of biodiesel since 2012. Could you comment on what you see happening currently with the biodiesel market in India and what you are looking at so far as far as increased usage of that plant?

The Indian market has been closed to biodiesel production largely because of this $20 billion per year subsidy for diesel which artificially depressed the price for biodiesel because biodiesel did not receive the subsidy. The result has been that we have operated it as an export-oriented unit - that’s a technical term used in India to mean, we bring in feedstock either domestically or internationally, we process them in India and then we exported these finished goods. And the target market has been Europe. And so, the 2013 numbers and early 2014 numbers are really European customers, not domestic India customers. Now we built the plant in India specifically because we knew there would be a market in India; it’s just, India is notorious for being a little slow in getting what you and I might consider obvious policies adopted. And so we were early, and are now, what I would consider to be not only the leader, but are going to be the big winner in India, as it’s a rapidly growing market domestically. But that rapidly growing market did not appear in 2013; did not appear in 2014. Technically, we couldn’t even sell directly to end users until January of 2015. We had to sell through the three government-owned blenders. That was the way the government controlled the subsidy environment, was that all producers had to sell thought the three government owned blenders. That rule was changed. In January 2015, we were leader in getting that rule changed and we can now sell directly to end users and that has obviously improved our margins down to sell through intermediary. And number two, as you might suspect dramatically increased the pace of our sales and marketing activities because we no longer just belong to a government agency with [indiscernible]…

Thank you. Can I ask a second question?

Yeah, go head.

Aemetis is an entirely adaptor of advanced proven bio-fuel technologies. You’ve already license the ISOCONVERSION process for jet fuel. Now enzymatic esterification has been rolled our commercially just beginning to get it being adopted here in the U.S. Have you looked at enzymatic esterification of making – in the process of bio-diesel production?

We have and notice Aemetis as you know is the leader in that process, there is a plant in the Midwest that is currently being scaled up to demonstrate that extra technology in the U.S. It does promise lower conversion costs and this is using enzymes instead of yeast as you know to convert biomass into ethanol. We believe that there are some opportunities to do exactly that. What I believe is going to be the correct approach is to take a smaller plant that is located in a feedstock disadvantage area. What’s that mean? It means a place where getting corn can be expensive or perhaps not even available at times and then converting that into this starch or say lot of feedstock flexibility and in essence enabling a plant that otherwise wouldn’t be able to operate – to actually operate and have all the benefits of lower operating costs and lower CI scores et cetera. And I do see several opportunities like that in just even today even in this low cost corn environment, there are some plants that really should be well positioned to adopt enzymatic processes. Our current plan is not a good candidate for that. Not to say, we couldn’t save money, we probably could, but we have some other lower hangings fruits that is very, very high increases in positive cash flow for our plants and so it’s on the list but it’s so far down the list, it’s really not on the radar screen right now. We just have some other ways to take the products from our ethanol plant and upgrade them into, distilled corn oil turning into jet fuel being sold into the market. It’s just a very high value creation opportunity. So those kinds of things, CO2 et cetera really trump the technology we described.

Thank you.

I think its 2 ’o’ clock. Operator, do you want to go– just – go and wrap up our call here today.

Yeah, there are no further questions at this time. I would like to turn the floor back over to management for closing remarks.

Thank you to the Aemetis shareholders. Thank you for stock analysts and others for joining us today. We had a pretty good long list today. We look forward to meeting with you and continuing our dialogue about growth opportunities for Aemetis.

Thank you for attending today’s Aemetis Business Update Conference Call. Please visit the Investor section of the Aemetis website where we have posted a written version and an audio version of this Aemetis Earnings Review and Business Update. Rob?

This concludes today’s teleconference. You may disconnect your lines at this time and thank you for your participation.