Gevo, Inc. (together with its subsidiaries, �Gevo� or the �Company�) is a renewable chemicals and next generation biofuels company focused on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Gevo, Inc. was incorporated in Delaware on June 9, 2005 (�Inception�). Gevo, Inc. formed Gevo Development, LLC (�Gevo Development�) on September 18, 2009 to finance and develop biorefineries through joint venture, tolling arrangements or direct acquisition (see Note 9). Gevo Development became a wholly owned subsidiary of the Company on September 22, 2010. Gevo Development purchased Agri-Energy, LLC (�Agri-Energy�) on September 22, 2010. Through May 2012, Agri-Energy, a wholly owned subsidiary of Gevo Development, was engaged in the business of producing and selling ethanol and related products produced at its plant located in Luverne, Minnesota (the �Agri-Energy Facility�). The Company commenced the retrofit of the Agri-Energy Facility in 2011, and commenced initial start-up operations for the production of isobutanol at this facility in May 2012. The Company expects to conclude initial start-up operations in the second half of 2012. These initial start-up operations included production of initial quantities of isobutanol produced at commercial scale, completion of initial commissioning of new equipment and development of operating discipline at commercial scale. During the 2012 third quarter, the Company made the strategic decision to pause isobutanol production at the Agri-Energy Facility for a period of time during which it plans to produce ethanol at the Agri-Energy Facility, based on then current economic conditions for ethanol production while it focuses on optimizing specific parts of its technology to further enhance isobutanol production rates. The Company intends to resume isobutanol production at the Agri-Energy Facility in support of future commercial operations once this work has been completed.
At September 30, 2012, the Company is considered to be in the development stage as its primary activities, since Inception, have been conducting research and development, business development, business and financial planning, establishing its facilities including retrofitting the Agri-Energy Facility, initial start-up operations for isobutanol production at the Agri-Energy Facility, recruiting personnel and raising capital. Ultimately, the attainment of profitable operations are dependent upon future events, including completion of its development activities resulting in sales of isobutanol or isobutanol-derived products and/or technology, obtaining adequate financing to complete its development activities, obtaining adequate financing to acquire access to and complete the retrofit of ethanol plants to isobutanol production, gaining market acceptance and demand for its products and services, and attracting and retaining qualified personnel.
Until May 24, 2012, when the Company commenced initial start-up operations for the production of isobutanol at the Agri-Energy Facility, the Company derived revenue from the sale of ethanol, distiller�s grains and other related products produced as part of the ethanol production process at this facility. Similarly, the Company expects to derive revenue from the sale of ethanol, and distiller�s grains during any period in which the Agri-Energy Facility is temporarily reverted to ethanol production, including the current planned reversion during which the Company will focus on optimizing specific parts of its technology to further enhance isobutanol production rates. However, the production of ethanol is not the Company�s intended business and its future profitability depends on its ability to produce and market isobutanol, not on continued production and sales of ethanol. The historical operating results of Agri-Energy and the operating results reported during the retrofit to isobutanol production, the initial start-up of isobutanol production and any period when the Company may temporarily revert to ethanol production will not be indicative of future operating results for Agri-Energy or Gevo once full-scale commercial isobutanol production commences at this facility. Additionally, because the production of ethanol is not the Company�s intended business, the Company will continue to report as a development stage company until it begins to generate significant revenue from the sale of isobutanol or other products that are or become the Company�s intended business.
