As I posted yesterday KIOR's results were dismal and Condi as a board member must be seeking legal counsel for her dumb remarks about the company back in March.
Here is the filing the company posted with the SEC on August 9th. You have to love the last sentence that I quote:
"The lack
of any committed sources of financing other than the remaining availability
under our Loan and Security Agreement with 1538731 Alberta Ltd. as agent and
lender, 1538716 Alberta Ltd. as lender, who we refer to collectively as the
Alberta Lenders, and KFT Trust, Vinod Khosla, Trustee, as lender, who we refer
to as Khosla, raises substantial doubt about our ability to continue as a going
concern."
Form 10-Q for KIOR INC
9-Aug-2013
Quarterly Report
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The following discussion and analysis of our financial condition and results
of operations should be read together with our audited consolidated financial
statements as of December 31, 2012, the notes accompanying those financial
statements and management's discussion and analysis as contained in our Annual
Report on Form 10-K, or Annual Report, filed with the SEC on March 18, 2013 and
in conjunction with the unaudited condensed consolidated financial statements
and notes in Item 1 of Part I of this report. This discussion contains
forward-looking statements that involve risks and uncertainties. Our actual
results could differ materially from those anticipated in the forward-looking
statements as a result of various important factors, including those discussed
below and in the section entitled "Risk Factors" included in Item 1A of Part II
below and in Item 1A of Part I of our Annual Report. Due to the fact that we
have generated only limited revenue to date, we believe that the financial
information contained in this report is not indicative of, or comparable to, the
financial profile that we expect to have if and when we begin to generate
significant revenues. We undertake no obligation to update publicly any
forward-looking statements, even if new information becomes available or other
events occur in the future, except to the extent required by law.
Overview
We are a next-generation renewable fuels company. We have developed a
proprietary catalytic process that allows us to produce cellulosic gasoline and
diesel from abundant, lignocellulosic biomass. Our cellulosic gasoline and
diesel are true hydrocarbon fuels which are similar to their traditional
petroleum-based counterparts and yet we estimate they will result in over 60%
less life cycle greenhouse gas emissions. While other renewable fuels are
derived from soft starches, such as corn starch or cane sugar, for ethanol, or
from soy and other vegetable oils for biodiesel, cellulosic fuel is derived from
lignocellulose found in wood, grasses and the non-edible portions of plants. Our
biomass-to-cellulosic fuel technology platform combines our proprietary catalyst
systems with fluid catalytic cracking, or FCC, processes that have been used in
crude oil refineries to produce gasoline for over 60 years.
In April 2012, we mechanically completed our initial-scale commercial
production facility in Columbus, Mississippi. This first facility is designed to
produce up to 13 million gallons of cellulosic diesel and gasoline per year.
During the fourth quarter of 2012, we successfully commissioned our proprietary
biomass fluid catalytic cracking, or BFCC, operation at the Columbus facility,
and produced our first "on spec" cellulosic intermediate oil in limited
quantities. In the first quarter of 2013, we successfully commissioned the
Columbus plant's hydrotreater and fractionation units, and began our first
cellulosic diesel and gasoline shipments in March 2013 and June 2013,
respectively. We have had limited continuous production at our Columbus facility
and have not yet reached "steady state" production.
We currently intend to begin construction of our next commercial production
facility during the first quarter of 2014, which we expect will be either an
expansion of our production capabilities in Columbus, Mississippi through the
construction of a second initial scale commercial production facility or the
construction of a standard commercial production facility in Natchez,
Mississippi, subject to our ability to raise capital. If we build our next
commercial production facility adjacent to our current initial scale commercial
facility in Columbus, Mississippi, we believe it will be able to produce up to
13 million gallons of cellulosic diesel and gasoline per year, approximately the
same amount of our current Columbus facility. If we build our next commercial
production facility in Natchez, Mississippi, we believe it will be able to
produce up to 40 million gallons of cellulosic diesel and gasoline per year,
approximately three times the amount of our current Columbus facility. We
believe the standard scale commercial facility will be the model for our
standard commercial facilities in order to take advantage of economies of scale.
Our business plan contemplates that we will need to raise additional funds to
build our next commercial production facilities and subsequent facilities,
continue the development of our technology and products and commercialize any
products resulting from our research and development efforts.
We were incorporated and commenced operations in July 2007. Since our
inception, we have operated as a development stage company, performing extensive
research and development to develop, enhance, refine and commercialize our
biomass-to-cellulosic fuel technology platform. Until recently, we have focused
our efforts on research and development and the construction of our Columbus
facility. As a result, we have generated $265.4 million of operating losses and
an accumulated deficit of $296.6 million from our inception through June 30,
2013. We expect to continue to incur operating losses through at least 2015 as
we continue into the commercialization stage of our business. We must raise
capital in one or more external equity and/or debt financings by the end of
September 2013 to fund the cash requirements of our ongoing operations. The lack
of any committed sources of financing other than the remaining availability
under our Loan and Security Agreement with 1538731 Alberta Ltd. as agent and
lender, 1538716 Alberta Ltd. as lender, who we refer to collectively as the
Alberta Lenders, and KFT Trust, Vinod Khosla, Trustee, as lender, who we refer
to as Khosla, raises substantial doubt about our ability to continue as a going
concern.
