10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

Commission File Number 001-35073

GEVO, INC.

(Exact name of registrant as specified in its charter)

Delaware	87-0747704
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

345 Inverness Drive South, Building C, Suite 310

Englewood, CO 80112

(303) 858-8358

(Address, including zip code, and telephone number, including

area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2018, 8,085,084 shares of the registrant’s common stock were outstanding.

GEVO, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2018

TABLE OF CONTENTS

		Page
PART I.  FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of June 30, 2018 (unaudited) and December 31, 2017	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017 (unaudited)	4
	Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	45
	Signatures	49

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

GEVO, INC.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	(unaudited)
	June 30,			December 31,
	2018			2017
Assets
Current assets:
Cash and cash equivalents	$	27,030		$	11,553
Accounts receivable		1,443			1,054
Inventories		3,846			4,362
Prepaid expenses and other current assets		15,258			712
Total current assets		47,577			17,681
Property, plant and equipment, net		67,180			70,369
Deposits and other assets		1,273			803
Total assets	$	116,030		$	88,853
Liabilities
Current liabilities:
Accounts payable and accrued liabilities	$	3,520		$	4,011
2020 Notes embedded derivative liability		684			5,224
Derivative warrant liability		86			1,951
Total current liabilities		4,290			11,186
2020 Notes, net		11,731			13,491
2022 Notes, net		-			515
Other long-term liabilities		414			130
Total liabilities	$	16,435		$	25,322
Commitments and Contingencies (see Note 11)
Stockholders' Equity
Common Stock, $0.01 par value per share; 250,000,000 authorized, 7,990,050 and 1,090,553shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		80			11
Additional paid-in capital		514,859			464,870
Accumulated deficit		(415,344	)		(401,350	)
Total stockholders' equity		99,595			63,531
Total liabilities and stockholders' equity	$	116,030		$	88,853

See the accompanying notes to unaudited consolidated financial statements.

3

GEVO, INC.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue and cost of goods sold
Ethanol sales and related products, net	$	8,813		$	6,839		$	17,031		$	12,333
Hydrocarbon revenue		607			660			607			749
Grant and other revenue		-			43			25			75
Total revenues		9,420			7,542			17,663			13,157
Cost of goods sold		10,693			9,705			21,276			19,113
Gross loss		(1,273	)		(2,163	)		(3,613	)		(5,956	)
Operating expenses
Research and development expense		1,469			1,891			2,258			3,108
Selling, general and administrative expense		1,637			2,123			3,507			4,297
Total operating expenses		3,106			4,014			5,765			7,405
Loss from operations		(4,379	)		(6,177	)		(9,378	)		(13,361	)
Other (expense) income
Interest expense		(904	)		(630	)		(1,729	)		(1,341	)
(Loss) on exchange of debt		(2,181	)		(3,969	)		(2,202	)		(4,933	)
(Loss) from change in fair value of the 2017 Notes		-			-			-			(339	)
(Loss)/Gain from change in fair value of derivative warrant liability		(3,517	)		2,260			(3,040	)		5,519
(Loss)/Gain from change in fair value of 2020 Notes embedded derivative		(511	)		(1,662	)		2,347			(1,662	)
Other income		-			20			8			26
Total other expense, net		(7,113	)		(3,981	)		(4,616	)		(2,730	)
Net loss	$	(11,492	)	$	(10,158	)	$	(13,994	)	$	(16,091	)
Net loss per share - basic and diluted	$	(7.19	)	$	(13.22	)	$	(10.26	)	$	(23.86	)
Weighted-average number of common shares outstanding - basic and diluted		1,597,242			768,625			1,363,394			674,451

See the accompanying notes to unaudited consolidated financial statements.

4

GEVO, INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Six Months Ended June 30,,
	2018			2017
Operating Activities
Net loss	$	(13,994	)	$	(16,091	)
Adjustments to reconcile net loss to net cash used in operating activities:
(Loss)/Gain from change in fair value of derivative warrant liability		3,040			(5,519	)
(Loss)/Gain from change in fair value of 2020 Notes embedded derivative		(2,347	)		1,662
Loss from the change in fair value of the 2017 Notes		-			339
Loss on exchange of debt		2,202			4,933
Stock-based compensation		237			225
Depreciation and amortization		3,285			3,341
Non-cash interest expense		884			196
Other non-cash expense		6			-
Changes in operating assets and liabilities:
Accounts receivable		(389	)		(242	)
Inventories		516			(838	)
Prepaid expenses and other current assets		(416	)		(114	)
Accounts payable, accrued expenses, and long-term liabilities		(829	)		(1,276	)
Net cash used in operating activities		(7,805	)		(13,384	)
Investing Activities
Acquisitions of property, plant and equipment		(97	)		(1,315	)
Net cash used in investing activities		(97	)		(1,315	)
Financing Activities
Payments on secured debt		-			(9,616	)
Debt and equity offering costs		(299	)		(931	)
Proceeds from issuance of common stock		22,415			11,044
Proceeds from the exercise of common stock warrants		1,263			6
Net cash provided by financing activities		23,379			503
Net (decrease) in cash and cash equivalents		15,477			(14,196	)
Cash, cash equivalents, and restricted cash
Beginning of period		11,553			30,499
End of period	$	27,030		$	16,303

See the accompanying notes to unaudited consolidated financial statements.

5

GEVO, INC. 

Consolidated Statements of Cash Flows - Continued

(in thousands)

(unaudited)

Supplemental disclosures of cash and non-cash investing and financing transactions	Six Months Ended March 31,
	2018		2017
Cash paid for interest, net of interest capitalized	$	850	$	2,116
Non-cash purchase of property, plant and equipment	$	16	$	189
Exchange or conversion of convertible debt into common stock	$	3,701	$	8,653
Accrued debt and equity issuance costs	$	61	$	126
Discount due to exchange of 2017 Notes for 2020 Notes	$	—	$	3,009
Fair value of 2020 Notes embedded derivative upon exchange	$	—	$	6,975
Fair value of 2020 Notes embedded derivative liability upon conversion into common stock	$	2,193	$	—
Fair value of warrants at issuance and upon exercise, net	$	4,905	$	5,213
Shares of common stock sold but not paid at June 30, 2018	$	14,130	$	—

See the accompanying notes to unaudited consolidated financial statements.

6

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

1. Nature of Business, Financial Condition, Basis of Presentation and Reverse Stock Split

Nature of Business. Gevo, Inc. (“Gevo” or the “Company,” which, unless otherwise indicated, refers to Gevo, Inc. and its subsidiaries) is a renewable chemicals and next generation "low-carbon" fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle. The most common low-carbon fuels are renewable fuels. Gevo is focused on the development and production of mainstream fuels like gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. In addition to serving the low-carbon fuel markets, through Gevo's technology, Gevo can also serve markets for the production of chemical intermediate products for solvents, plastics and building block chemicals.

In addition to its ethanol production capabilities, the Company developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to make isobutanol and hydrocarbon products from isobutanol that can displace petrochemical incumbent products. The Company has been able to genetically engineer yeast, whereby the yeast produces isobutanol from carbohydrates. The Company’s technology converts its renewable isobutanol to alcohol-to-jet (“ATJ”), isooctane, isooctene, and para-xylene (building block for polyester) at its hydrocarbons demonstration plant located at South Hampton Resources located in Silsbee, Texas. In addition the Company’s production facility located in Luverne, Minnesota (the "Luverne Facility") has production capacity of about 20 MGPY of ethanol, 45-50 kilotons (“KT”) of animal feed, and 3 million pounds of corn oil.

As of June 30, 2018, the Company continues to engage in research and development, business development, business and financial planning, optimizing operations for low-carbon ethanol, isobutanol, and related hydrocarbons production and raising capital to fund future expansion of its Luverne Facility. Ultimately, the Company believes that the attainment of profitable operations is dependent upon future events, including (i) completing certain capital improvements at the Luverne Facility to produce low-carbon ethanol side-by-side with low-carbon isobutanol; (ii) completing its development activities resulting in commercial production and sales of isobutanol or isobutanol-derived products and/or technology, (ii) obtaining adequate financing to complete its development activities, (iii) obtaining adequate financing to build out low-carbon ethanol capacity and further isobutanol and hydrocarbon production capacity, (iv) gaining market acceptance and demand for its products and services, and (v) attracting and retaining qualified personnel.

Financial Condition. For the six months ended June 30, 2018and 2017, the Company incurred a consolidated net loss of $14.0 million and $16.1 million, respectively, and had an accumulated deficit of $415.3 million at June 30, 2018. The Company’s cash and cash equivalents at June 30, 2018 totaled $27.0 million (does not include gross proceeds of $14.9 million received under the at-the-market offering program after June 30, 2018 due to timing of settlement of sales under the at-the-market offering program) and are expected to be used for the following purposes: (i) operating activities of the Luverne Facility; (ii) operating activities at the Company’s corporate headquarters in Colorado, including research and development work; (iii) capital improvements primarily associated with the Luverne Facility; (iv) costs associated with optimizing isobutanol production technology; (v) exploration of strategic alternatives and new financings; and (vi) debt service and repayment obligations.

7

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

The Company expects to incur future net losses as it continues to fund the development and commercialization of its product candidates. To date, the Company has financed its operations primarily with proceeds from multiple sales of equity and debt securities, borrowings under debt facilities and product sales. The Company’s transition to profitability is dependent upon, among other things, the successful development and commercialization of its product candidates and the achievement of a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability or positive cash flows, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, the Company may seek additional capital through arrangements with strategic partners or from other sources, it may seek to restructure its debt and it will continue to address its cost structure. Notwithstanding, there can be no assurance that the Company will be able to raise additional funds, or achieve or sustain profitability or positive cash flows from operations. Existing working capital was not sufficient to meet the cash requirements to fund planned operations through the period that is one year after the date the Company’s audited 2017 year-end financial statements were issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s inability to continue as a going concern may potentially affect the Company’s rights and obligations under its outstanding senior secured convertible notes. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

At-the-Market Offering Program. In February 2018, the Company commenced an at-the-market offering program, which initially allowed it to sell and issue up to $5.0 million of shares of the Company’s common stock. During the three months ended June 30, 2018, the Company amended the at-the-market offering program and increased the available capacity by approximately $84.9 million.

During the six months ended June 30, 2018, the Company issued 6,286,617 shares of common stock (after giving effect to the one-for-twenty reverse stock split effected on June 1, 2018) under the at-the-market offering for gross proceeds of $37.4 million, of which $14.5 million was not received until July 3, 2018. The Company paid commissions to its sales agent of approximately $0.9 million and incurred other offering related expenses of approximately $0.4 million during the six months ended June 30, 2018.

During the three months ended June 30, 2018, the Company issued 6,281,409 shares of common stock (after giving effect to the one-for-twenty reverse stock split effected June 1, 2018) under the at-the-market offering for gross proceeds of $37.4 million during the three months ended June 30, 2018, of which $14.5 million was not received until July 3, 2018. The Company paid commissions to its sales agent of approximately $0.9 million and the incurrence of other offering related expenses of $0.2 million during the three months ended June 30, 2018.

 

Basis of Presentation. The unaudited consolidated financial statements of the Company (which include the accounts of its wholly-owned subsidiaries Gevo Development and Agri-Energy) have been prepared, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company at June 30, 2018 and are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included under the heading “Financial Statements and Supplementary Data” in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “Annual Report”).

       Reverse Stock Split. On May 30, 2018, after receipt of stockholder approval, the Board of Directors approved an amendment to the Company's Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s common stock, par value $0.01 per share, by a ratio of one-for-twenty. The reverse stock split became effective June 1, 2018. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split.

Recent Accounting Pronouncements

   Leases (“ASU 2016-02”). In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Topic 842 Leases. ASU-2016-02 requires leases to be reported on the financial statements. The objective is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Future minimum lease obligations for leases accounted for as operating leases at June 30, 2018 totaled $2.3 million. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on its consolidated financial statements.

8

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Derivatives and Hedging (Topic 815). Accounting for Certain Financial Instruments with Down Round Provisions (“ASU 2017-11”). In July 2017, the FASB issued ASU No. 2017-11, Derivatives and Hedging (Topic 815) Accounting for Certain Financial Instruments with Down Round Provisions which simplifies the accounting for certain equity-linked financial instruments and embedded features with down round features that reduce the exercise price when the pricing of a future round of financing is lower. Currently, the existence of such features require classification outside of equity and recognition of changes in the fair value of the instrument in earnings each reporting period. This standard eliminates the need to remeasure the instruments at fair value and allows classification within equity. This standard will not materially impact the Company, as the Company's liability classified financial instruments and embedded derivatives that require separation from the host instrument have features other than down-round provisions that require current accounting and classification.

Adoption of New Accounting Pronouncements.

Revenue from Contracts with Customers (“ASU 2014-09”). In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The objective of ASU 2014-09 is to outline a new, single comprehensive model to use in accounting for revenue arising from contracts with customers. The new revenue recognition model provides a five-step analysis for determining when and how revenue is recognized, depicting the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. ASU 2014-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. On July 9, 2015, the FASB Board voted to delay the implementation of ASU 2014-09 by one year to December 15, 2017. In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing (“ASU 2016-10”) which provides additional clarification regarding Identifying Performance Obligations and Licensing. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. As a result of the Company’s conclusions below, there is no impact upon revenue recognition, historical or otherwise, due to the adoption of ASU 2014-09 effective January 1, 2018, and accordingly, there is no requirement to select a transition method.

The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants. The following provides the Company’s assessment on how this standard impacted the Company upon its adoption effective January 1, 2018

Ethanol sales and related products revenues, net. Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are no future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services. The Company has sold and continues to sell close to 100% of its ethanol production to a single customer, representing69% and 75% of total revenues for the three months ended June 30, 2018 and 2017, respectively, and 71% and 77% of total revenues for the six months ended June 30, 2018and 2017, respectively,. The Company completed its review of this customer and consistent with prior assessments, does not expect there to be any impact on how the Company has and will continue to account for sales of ethanol to this customer. The Company further evaluated related products, including distiller’s grains, corn oil and isobutanol, and after its review, there is no significant impact either historically or prospectively upon the Company’s adoption of this standard on January 1, 2018.

Hydrocarbon revenue. Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and is sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are no future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services. The Company has determined that there will be no material impact as to how the Company has historically recognized or will recognize revenues upon adopting this standard on January 1, 2018.

Grant and other revenues. Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the Northwest Advanced Renewables Alliance (“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of these revenues since 2014. After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does not qualify as a contract pursuant to Topic 606 “Revenues from Contracts with Customers”, which was established with the issuance of ASU 2014-09. However, Topic 606 stipulates revenue recognition under these circumstances, and the Company determined that there is no change to revenue recognition upon adopting this standard on January 1, 2018.

9

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Statement of Cash Flows – Restricted Cash (“ASU 2016-18”). In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows – Restricted Cash, which standardizes the classification and presentation of changes in restricted cash on the statement of cash flows. This amendment requires that that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This amendment was effective for public business entities for fiscal years beginning after December 15, 2017, but early adoption was permitted. This standard must be applied retrospectively for all periods presented. The Company’s adoption of this standard on January 1, 2018 materially impacted the presentation of the Company’s previously presented 2017 statements of cash flows for the three, six, nine and twelve months ended December 31, 2017, as the Company released approximately $2.6 million of restricted cash in April 2017. Prior to the adoption of this standard, the 2017 beginning of period cash and cash equivalents totaled $27.9 million. After adoption of this standard, the 2017 beginning period of cash, cash equivalents, and restricted cash totaled $30.5 million.

2. Earnings per Share

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share (“EPS”) includes the dilutive effect of common stock equivalents and is computed using the weighted-average number of common stock and common stock equivalents outstanding during the reporting period. Diluted EPS for the three and six months ended June 30, 2018 and 2017 excluded common stock equivalents because the effect of their inclusion would be anti-dilutive, or would decrease the reported loss per share.

The following table sets forth securities outstanding that could potentially dilute the calculation of diluted earnings per share.

	June 30,
	2018		2017
Warrants to purchase common stock - liability classified (see Note 7)		58,902		680,119
Warrant to purchase common stock - equity classified		6		72
2020 Notes		1,116,637		1,485,100
2022 Notes		–		21
Outstanding stock appreciation rights		68,638		–
Outstanding options to purchase common stock		358		3,846
Unvested restricted common stock		16		268
Total		1,244,557		2,169,426

The Company issued95,000 shares of common stock under the at-the-market offering program, between July 1, 2018 and August 8, 2018, which are not reflected in the tables presented above. See Note 1, Nature of Business, Financial Condition and Basis of Presentation.

3. Revenues from Contracts with Customers Other Revenues

The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants.

Ethanol sales and related products revenues, net. Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are no future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.

10

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Hydrocarbon revenue. Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and are sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are no future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.

Grant and other revenues. Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the Northwest Advanced Renewables Alliance (“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of those revenues since 2014. After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does not qualify as a contract pursuant to Topic 606 “Revenues from Contracts with Customers”. Other revenues also include occasional short-term (less than one-year) consulting services and until December of 2017, the lease of the Company’s corn storage bins at its Luverne, MN facility.

The following table sets forth the components of the Company’s revenues between those generated from contracts with customers and those generated from arrangements that do not constitute a contract with a customer (in thousands):

	Three Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	8,813	$	-	$	8,813
Hydrocarbon revenue		607		-		607
Grant and other revenue		-		-		-
	$	9,420	$	-	$	9,420
Timing of Revenue Recognition
Goods transferred at a point in time	$	9,420	$	-	$	9,420
Services transferred over time		-		-		-
	$	9,420	$	-	$	9,420
Operating Segment
Gevo	$	607	$	-	$	607
Gevo Development / Agri-Energy		8,813		-		8,813
	$	9,420	$	-	$	9,420
Geographic Region
United States	$	8,813	$	-	$	8,813
Other		607		-		607
	$	9,420	$	-	$	9,420

	Three Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	6,839	$	-	$	6,839
Hydrocarbon revenue		660		-		660
Grant and other revenue		-		43		43
	$	7,499	$	43	$	7,542
Timing of Revenue Recognition
Goods transferred at a point in time	$	7,499	$	-	$	7,499
Services transferred over time		-		43		43
	$	7,499	$	43	$	7,542
Operating Segment
Gevo	$	660	$	-	$	660
Gevo Development / Agri-Energy		6,839		43		6,882
	$	7,499	$	43	$	7,542
Geographic Region
United States	$	6,839	$	43	$	6,882
Other		660		-		660
	$	7,499	$	43	$	7,542

11

	Six Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	17,031	$	-	$	17,031
Hydrocarbon revenue		607		-		607
Grant and other revenue		25		-		25
	$	17,663	$	-	$	17,663
Timing of Revenue Recognition
Goods transferred at a point in time	$	17,638	$	-	$	17,638
Services transferred over time		25		-		25
	$	17,663	$	-	$	17,663
Operating Segment
Gevo	$	632	$	-	$	632
Gevo Development / Agri-Energy		17,031		-		17,031
	$	17,663	$	-	$	17,663
Geographic Region
United States	$	17,056	$	-	$	17,056
Other		607		-		607
	$	17,663	$	-	$	17,663

	Six Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	12,333	$	-	$	12,333
Hydrocarbon revenue		749		-		749
Grant and other revenue		-		75		75
	$	13,082	$	75	$	13,157
Timing of Revenue Recognition
Goods transferred at a point in time	$	13,082	$	-	$	13,082
Services transferred over time		-		75		75
	$	13,082	$	75	$	13,157
Operating Segment
Gevo	$	749	$	-	$	749
Gevo Development / Agri-Energy		12,333		75		12,408
	$	13,082	$	75	$	13,157
Geographic Region
United States	$	12,333	$	75	$	12,408
Other		749		-		749
	$	13,082	$	75	$	13,157

12

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Goods transferred at a point-in-time. For the three and six months ended June 30, 2018 and 2017, there were no contracts with customers for which consideration was variable or for which there were multiple performance obligations for any given contract. Accordingly, the entire transaction price is allocated to the goods transferred. As of June 30, 2018 and December 31, 2017, there were no remaining unfulfilled or partially fulfilled performance obligations.

All goods transferred are tested to ensure product sold satisfies contractual product specifications prior to transfer. The customer obtains control of the goods when title and risk of loss for the goods has transferred, which in most cases is “free-on-board, shipping point”. All material contracts have payment terms of between one to six months, and there are no return or refund rights.

Services transferred over time. For the three and six months ended June 30, 2018 and 2017, there were no contracts for which consideration was variable or for which there were multiple performance obligation for any given contract. Accordingly, the entire transaction price is allocated to the individual service performance obligation. As of June 30, 2018 and December 31, 2017, there were no material unfulfilled or partially fulfilled performance obligations.

For the three and six months ended June 30, 2018 and 2017, revenues were recognized ratably over time, as the performance obligation was satisfied and benefit to the customer was transferred on a ratable basis over time.

Contract Assets and Trade Receivables. As of June 30, 2018 and December 31, 2017, there were no contract assets or liabilities as all customer amounts owed to the Company are unconditional and the Company does not receive payment in advance for its products. Accordingly, amounts owed by customers are classified as account receivables on the Company’s consolidated balance sheets. In addition, due to the nature of the Company’s contracts, there are no costs incurred or to be paid in the future that qualify for asset recognition as a cost to fulfill or obtain a contract. The Company did not incur any impairment losses on any receivables as all amounts owed were paid or current as of June 30, 2018 and December 31, 2017.

4. Inventories

The following table sets forth the components of the Company’s inventory balances (in thousands).

	June 30,		December 31,
	2018		2017
Raw materials
Corn	$	188	$	189
Enzymes and other inputs		251		202
Nutrients		3		5
Finished goods
Ethanol		229		222
Isobutanol		897		1,122
Jet Fuels, Isooctane and Isooctene		484		524
Distiller's grains		49		59
Work in process - Agri-Energy		201		197
Work in process - Gevo		95		437
Spare parts		1,449		1,405
Total inventories	$	3,846	$	4,362

Work in process inventory includes unfinished jet fuel, isooctane, and isooctene inventory.

13

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

5. Prepaid Expenses and Other Current Assets

The following table sets forth the components of the Company's prepaid expenses and other current assets in the consolidated balance sheets (in thousands).

	June 30, 2018		December 31, 2017
Amounts owed to the Company from sale of common stock	$	14,130	$	-
All other non-trade receivables		239		73
Prepaid assets		889		639
Total prepaid expenses and other current assets	$	15,258	$	712

The amounts owed to the Company from the sale of its common stock under the At-The-Market offering program related to sales that occurred on June 29, 2018. The Company received payment, in full on July 3, 2018.

6. Property, Plant and Equipment

The following table sets forth the Company’s property, plant and equipment by classification (in thousands).

	Useful Life		June 30,			December 31,
	(in years)		2018			2017
Construction in progress			$	537		$	479
Plant machinery and equipment		10		16,285			16,284
Site improvements		10		7,055			7,051
Luverne retrofit asset		20		70,842			70,842
Lab equipment, furniture and fixtures and vehicles		5		6,513			6,513
Demonstration plant		2		3,597			3,597
Buildings		10		2,543			2,543
Computer, office equipment and software		3		1,808			1,795
Leasehold improvements, pilot plant, land and support equipment		2-5		2,536			2,536
Total property, plant and equipment				111,716			111,640
Less accumulated depreciation and amortization				(44,536	)		(41,271	)
Property, plant and equipment, net			$	67,180		$	70,369

Included in cost of goods sold is depreciation of $1.6 million and $1.5 million during the three months ended June 30, 2018 and 2017, respectively, and $3.1 million and $3.1 million during the six months ended June 30, 2018and 2017, respectively. 

Included in operating expenses is depreciation of $0.1 million and $0.1 million for the three months ended June 30, 2018 and $0.2 million and $0.2 million during the six months ended June 30, 2018and 2017, respectively. 

7. Embedded Derivatives and Derivative Warrant Liabilities 

2020 Notes Embedded Derivative

In June 2017, the Company issued its 12% convertible senior secured notes due 2020 (the “2020 Notes”) in exchange for its 12.0% convertible senior secured notes due 2017 (the “2017 Notes”). The 2020 Notes contain the following embedded derivatives: (i) a Make-Whole Payment (as defined in the indenture governing the 2020 Notes (the “2020 Notes Indenture”)) upon either conversion or redemption; (ii) right to redeem the outstanding principal upon a Fundamental Change (as defined in the 2020 Notes Indenture); (iii) issuer rights to convert into a limited number of shares in any given three month period commencing nine -months from the issuance date and dependent on the stock price exceeding 150% of the then in-effect conversion price over a ten-business day period; and (iv) holder rights to convert into either shares of the Company’s common stock or pre-funded warrants upon the election of the holders of the 2020 Notes.

Embedded derivatives are separated from the host contract and the 2020 Notes, and carried at fair value when: (a) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (b) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument. The Company has concluded that certain embedded derivatives within the 2020 Notes meet these criteria and, as such, must be valued separate and apart from the 2020 Notes as one embedded derivative and recorded at fair value each reporting period.

14

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

The Company used a binomial lattice model in order to estimate the fair value of the embedded derivative in the 2020 Notes. A binomial lattice model generates two probable outcomes, whether up or down, arising at each point in time, starting from the date of valuation until the maturity date. A lattice was initially used to determine if the 2020 Notes would be converted by the holder, called by the issuer, or held at each decision point. Within the binomial lattice model, the following assumptions are made: (i) the 2020 Notes will be converted by the holder if the conversion value plus the holder’s Make-Whole Payment is greater than the holding value; or (ii) the 2020 Notes will be called by the issuer if (a) the stock price exceeds 150% of the then in-effect conversion price over a ten-business day period and (b) if the holding value is greater than the conversion value plus the Make-Whole Payment at the time. Using this binomial lattice model, the Company valued the embedded derivative using a “with-and-without method”, where the value of the 2020 Notes including the embedded derivative is defined as the “with”, and the value of the 2020 Notes excluding the embedded derivative is defined as the “without”. This method estimates the value of the embedded derivative by comparing the difference in the values between the 2020 Notes with the embedded derivative and the value of the 2020 Notes without the embedded derivative. The binomial lattice model requires the following inputs: (i) price of Gevo common stock; (ii) Conversion Rate (as defined in the 2020 Notes Indenture); (iii) Conversion Price (as defined in the 2020 Notes Indenture); (iv) maturity date; (v) risk-free interest rate; (vi) estimated stock volatility; and (vii) estimated credit spread for the Company.

As of June 30, 2018, the estimated fair value of the embedded derivatives was $0.7 million. Any change in the estimated fair value of the embedded derivatives represents an unrealized gain or loss, which has been recorded as a $0.5 million loss and a $2.3 million gain from the change in fair value of embedded derivatives in the consolidated statements of operations for the three and six months ended June 30, 2018, respectively. The Company recorded the estimated fair value of the embedded derivative with the 2020 Notes, net in the consolidated balance sheets.

The following table sets forth the inputs to the lattice model that were used to value the embedded derivatives.

	June 30,			December 31,
	2018			2017
Stock price	$	3.80			0.59
Conversion Rate per $1,000		67.9			1,358.90
Conversion Price	$	14.72		$	0.74
Maturity date		March 15, 2020		March 15, 2020
Risk-free interest rate		2.43	%		1.89	%
Estimated stock volatility		125	%		75	%
Estimated credit spread		27	%		28	%

Changes in certain inputs into the lattice model can have a significant impact on changes in the estimated fair value of the embedded featured within the 2020 Notes. For example, the estimated fair value will generally decrease with: (1) a decline in the stock price; (2) decreases in the estimated stock volatility; and (3) a decrease in the estimated credit spread.

2022 Notes Embedded Derivative

In July 2012, the Company issued 7.5% convertible senior notes due July 2022 (the “2022 Notes”) which contain the following embedded derivatives: (i) rights to convert into shares of the Company’s common stock, including upon a Fundamental Change (as defined in the indenture governing the 2022 Notes (the “2022 Notes Indenture”)); and (ii) a Coupon Make-Whole Payment (as defined in the 2022 Notes Indenture) in the event of a conversion by the holders of the 2022 Notes prior to July 1, 2017.

The Company had concluded that the embedded derivatives within the 2020 Notes required separation from the host instrument and was re-valued each reporting period, with changes in the fair value of the embedded derivative recognized as a component of the Company’s consolidated Statements of Operations. As of December 31, 2017, the fair value of the 2020 Notes embedded derivative was zero. In January 2018, the Company entered into a private exchange agreement with a holder of the 2022 Notes to exchange the remaining $0.5 million of outstanding principal amount of the 2022 Notes for 39,016 shares of common stock. Upon completion of this exchange, the 2022 Notes were satisfied in their entirety and there are no remaining obligations under the 2022 Notes, including any remaining obligations under the 2022 Notes embedded derivative.

15

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Derivative Warrant Liability

The following warrants were sold by the Company:

• In December 2013, the Company sold warrants to purchase 3,551 shares of the Company’s common stock (the “2013 Warrants”).

• In August 2014, the Company sold warrants to purchase 2,500 shares of the Company’s common stock (the “2014 Warrants”).

• In February 2015, the Company sold Series A warrants to purchase 5,542 shares of the Company’s common stock (the “Series A Warrants”) and Series B warrants to purchase 5,542 shares of the Company’s common stock (the “Series B Warrants”).

• In May 2015, the Company sold Series C warrants to purchase 1,075 shares of the Company’s common stock (the “Series C Warrants”).

• In December 2015, the Company sold Series D warrants to purchase 25,125 shares of the Company’s common stock (the “Series D Warrants”) and Series E warrants to purchase 20,000 shares of the Company’s common stock (the “Series E Warrants”).

• In April 2016, the Company sold Series F warrants to purchase 25,733 shares of the Company’s common stock (the “Series F Warrants”) and Series H warrants to purchase 51,465 shares of the Company’s common stock (the “Series H Warrants”), and pre-funded Series G warrants (the “Series G Warrants”) to purchase 16,429 shares of the Company’s common stock, pursuant to an underwritten public offering.

• In September 2016, the Company sold Series I warrants to purchase 35,650 shares of the Company’s common stock (the “Series I Warrant”) and pre-funded Series J warrants (“Series J Warrants”) to purchase 9,250 shares of the Company’s common stock, pursuant to an underwritten public offering.

• In February 2017, the Company sold Series K warrants to purchase 312,516 shares of the Company’s common stock (the “Series K Warrants”) and Series M warrants to purchase 312,500 shares of the Company’s common stock (the “Series M Warrants”), and pre-funded Series L warrants (the “Series L Warrants”) to purchase 28,500 shares of the Company’s common stock, pursuant to an underwritten public offering.

16

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

The following table sets forth information pertaining to shares issued upon the exercise of such warrants as of June 30, 2018:

	Issuance Date	Expiration Date	Exercise Price as of June 30, 2018			Shares Underlying Warrants on Issuance Date		Shares Issued upon Warrant Exercises as of June 30, 2018		Shares Underlying Warrants Outstanding as of June 30, 2018 (4)
2013 Warrants	12/16/2013	12/16/2018	$	85.05			3,551		762		2,789
2014 Warrants	08/05/2014	08/05/2019	$	65.50			2,500		1,526		974
Series A Warrants	02/03/2015	02/03/2020	$	3.80			5,542		5,222		320
Series B Warrants	02/03/2015	08/03/2015		-	(1)		5,542		5,542		-
Series C Warrants	05/19/2015	05/19/2020	$	53.43			1,075		-		1,075
Series D Warrants	12/11/2015	12/11/2020	$	40.00			25,125		25,078		47
Series E Warrants	12/11/2015	12/11/2020		-	(1)		20,000		20,000		-
Series F Warrants	04/01/2016	04/01/2021	$	40.00			25,733		11,692		14,041
Series G Warrants	04/01/2016	04/01/2017		-	(1)		16,429		16,429		-
Series H Warrants	04/01/2016	10/01/2016		-	(1)		51,465		51,465		-
Series I Warrants	09/13/2016	09/13/2021	$	220.00			35,650		-		35,650
Series J Warrants	09/13/2016	09/13/2017		-	(1)		9,250		9,250		-
Series K Warrants	02/17/2017	2/17/2022	$	3.80			312,516		308,510		4,006
Series L Warrants	02/17/2017	02/17/2018		-	(1)		28,500		28,500		-
Series M-A Warrants	02/17/2017	11/17/2017		-	(1), (2)		115,250		74,250		-
Series M-B Warrants	02/17/2017	11/17/2017		-	(1), (3)		197,250		197,250		-
							855,378		755,476		58,902

(1)	Warrants have either been fully exercised and/or expired as of June 30, 2018.
(2)	In October 2017, the exercise price of Series M warrants to purchase 74,250 shares of common stock were repriced between $12.00 and $13.00 per share. Of those warrants that were repriced, all were exercised in the fourth quarter of 2017, providing proceeds of $1.0 million.
(3)	In September 2017, the exercise price of Series M warrants to purchase 197,250 shares of common stock were repriced to $12.00 per share. Of those warrants that were repriced, all were exercised in the second half of 2017, providing proceeds of $2.4 million.
(4)	This table does not include equity-classified warrants to purchase 6 shares of common stock issued in 2011, with strike price of $354 per share.

The agreements governing the above warrants include the following terms:

• certain warrants have exercise prices which are subject to adjustment for certain events, including the issuance of stock dividends on the Company’s common stock and, in certain instances, the issuance of the Company’s common stock or instruments convertible into the Company’s common stock at a price per share less than the exercise price of the respective warrants;

• warrant holders may exercise the warrants through a cashless exercise if, and only if, the Company does not have an effective registration statement then available for the issuance of the shares of its common stock. If an effective registration statement is available for the issuance of its common stock a holder may only exercise the warrants through a cash exercise;

• the exercise price and the number and type of securities purchasable upon exercise of the warrants are subject to adjustment upon certain corporate events, including certain combinations, consolidations, liquidations, mergers, recapitalizations, reclassifications, reorganizations, stock dividends and stock splits, a sale of all or substantially all of the Company’s assets and certain other events; and

17

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

• in the event of an “extraordinary transaction” or a “fundamental transaction” (as such terms are defined in the respective warrant agreements), generally including any merger with or into another entity, sale of all or substantially all of the Company’s assets, tender offer or exchange offer, or reclassification of its common stock, in which the successor entity (as defined in the respective warrant agreements) that assumes the successor entity is not a publicly traded company, the Company or any successor entity will pay the warrant holder, at such holder’s option, exercisable at any time concurrently with or within 30 days after the consummation of the extraordinary transaction or fundamental transaction, an amount of cash equal to the value of such holder’s warrants as determined in accordance with the Black Scholes option pricing model and the terms of the respective warrant agreement. In some circumstances, the Company or successor entity may be obligated to make such payments regardless of whether the successor entity that assumes the warrants is a publicly traded company.

During the three months ended June 30, 2018, Series A Warrants to purchase 251 shares of common stock and Series K Warrants to purchase 300,510 shares of common stock were exercised to purchase an aggregate of 300,761 shares of common stock, providing cash proceeds of approximately $1.3 million.

As of June 30, 2018, all of the Series B, E, G, H, J, L and M Warrants for which the exercise price had been adjusted were fully exercised or expired.

8. Accounts Payable and Accrued Liabilities

The following table sets forth the components of the Company’s accounts payable and accrued liabilities in the consolidated balance sheets (in thousands).

	June 30,		December 31,
	2018		2017
Accounts payable - trade	$	1,053	$	666
Accrued legal-related fees		82		274
Accrued employee compensation		655		700
Accrued interest		418		434
Accrued production fees		315		447
Accrued utilities and supplies payable		605		677
Accrued taxes payable		52		172
Customer deposit		-		436
Other accrued liabilities *		340		205
Total accounts payable and accrued liabilities	$	3,520	$	4,011

* Other accrued liabilities consist of franchise taxes, audit fees, and a variety of other expenses, none of which individually represent greater than five percent of total current liabilities.

18

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

9. Debt

2020 Notes 

The following table sets forth information pertaining to the 2020 Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Principal Amount of 2020 Notes			Debt Discount			Debt Issue Costs			Total 2020 Notes			2020 Notes Embedded Derivative			Total 2020 Notes and 2020 Notes Embedded Derivative
Balance - December 31, 2017	$	16,657		$	(2,501	)	$	(665	)	$	13,491		$	5,224		$	18,715
Amortization of debt discount		-			566			-			566			-			566
Amortization of debt issue costs		-			-			150			150			-			150
Paid-in-kind interest		168			-			-			168			-			168
Change in fair value of 2020 Notes embedded derivative		-			-			-			-			(2,347	)		(2,347	)
Conversion of 2020 Notes into common stock		(3,186	)		428			114			(2,644	)		(2,193	)		(4,837	)
Balance - June 30, 2018	$	13,639		$	(1,507	)	$	(401	)	$	11,731		$	684		$	12,415

On April 19, 2017, the Company entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) with WB Gevo, LTD, the holder of the 2017 Notes (the “Holder”) and Whitebox Advisors LLC, in its capacity as representative of the Holder (“Whitebox”). The 2020 Notes were issued under that certain Indenture dated as of June 6, 2014, by and among the Company, the guarantors party thereto, and Wilmington Savings Fund Society, FSB, as trustee and as collateral trustee (as supplemented, the “2017 Notes Indenture”), and Whitebox. Pursuant to the terms of the Purchase Agreement, the Holder, subject to certain conditions, including approval of the transaction by the Company’s stockholders (which was received on June 15, 2017), agreed to exchange all of the outstanding principal amount of the 2017 Notes for an equal principal amount of the 2020 Notes, plus an amount in cash equal to the accrued and unpaid interest (other than interest paid in kind) on the 2017 Notes (the “Exchange”). Pursuant to the Purchase Agreement, the Company also granted the Holder an option (the “Purchase Option”) to purchase up to an additional aggregate principal amount of $5.0 million of 2020 Notes (the “Option Notes”), at a purchase price equal to the aggregate principal amount of such Option Notes purchased, having identical terms (other than with respect to the issue date and restrictions on transfer relating to compliance with applicable securities law) to the 2020 Notes issued, at any time on or within ninety (90) days of the closing of the Exchange. The right to purchase Option Notes expired in the third quarter of 2017. On June 20, 2017, the Company completed the Exchange, terminated the 2017 Notes Indenture and cancelled the 2017 Notes. The Company recognized an approximately $3.9 million loss which has been recorded as loss on exchange or conversion of debt within the consolidated statements of operations.

The 2020 Notes will mature on March 15, 2020. The 2020 Notes bear interest at a rate equal to 12% per annum (with 2% potentially payable as PIK Interest (as defined and described below) at the Company’s option), payable on March 31, June 30, September 30, and December 31 of each year. Under certain circumstances, the Company has the option to pay a portion of the interest due on the 2020 Notes by either (a) increasing the principal amount of the 2020 Notes by the amount of interest then due or (b) issuing additional 2020 Notes with a principal amount equal to the amount of interest then due (interest paid in the manner set forth in (a) or (b) being referred to as “PIK Interest”). In the event the Company pays any portion of the interest due on the 2020 Notes as PIK Interest, the maximum aggregate principal amount of 2020 Notes that could be convertible into shares of the Company’s common stock will be increased. Additional shares of the Company’s common stock may also become issuable pursuant to the 2020 Notes in the event the Company is required to make certain make-whole payments as provided in the 2020 Notes Indenture.

The 2020 Notes are convertible into shares of the Company’s common stock, subject to certain terms and conditions. The initial conversion price of the 2020 Notes is equal to $14.72 per share of common stock, or .06795 shares of common stock per $1 principal amount of 2020 Notes (the “Conversion Price”). In addition, upon certain equity financing transactions by the Company, the Holders will have a one-time right to reset the Conversion Price (the “Reset Provision”) (i) in the first ninety (90) days following the Exchange Date, at a 25% premium to the common stock price in the equity financing and (ii) after ninety (90) and to and including one hundred eighty (180) days following the closing of the Exchange, at a 35% premium to the common stock share price in the equity financing. Following an exercise of the Reset Provision, the Holders will also have a right to consent to certain equity financings by the Company during the one hundred eighty (180) days following the closing of the Exchange.

Each Holder has agreed not to convert its 2020 Notes into shares of Company common stock to the extent that, after giving effect to such conversion, the number of shares of common stock beneficially owned by such Holder and its affiliates would exceed 4.99% of Company common stock outstanding at the time of such conversion (the “4.99% Ownership Limitation”); provided that a Holder may, at its option and upon sixty-one (61) days’ prior notice to the Company, increase such threshold to 9.99% (the “9.99% Ownership Limitation”). If a conversion of 2020 Notes by Whitebox would exceed the 4.99% Ownership Limitation or the 9.99% Ownership Limitation, as applicable, the Purchase Agreement contains a provision granting the holder a fully funded prepaid warrant for such common stock with a term of nine months, subject to a six month extension, which it can draw down from time to time.

19

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Other than as set forth in the Reset Provision, the 2020 Notes do not contain any anti-dilution adjustments for future equity issuances that are below the Conversion Price, and adjustments to the Conversion Price will only generally be made in the event that there is a dividend or distribution paid on shares of the Company’s common stock, a subdivision, combination or reclassification of the Company’s common stock, or at the discretion of the Board of Directors of the Company in limited circumstances and subject to certain conditions.

Under certain circumstances, the Company may file one or more registration statements on Form S-3 or amend filings in order to register shares of common stock for sale or resale, as necessary in connection with the 2020 Notes.

During the three months ended June 30, 2018, an aggregate of 260,793 shares of common stock were issued to the holder of the 2020 Notes upon the conversion of an aggregate of approximately $3.2 million in outstanding principal and $0.7 million in "make-whole" interest.

 2022 Notes

The following table sets forth information pertaining to the 2022 Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Principal Amount of 2022 Notes
Balance - December 31, 2017	$	515
Exchange of 2022 Notes		(515	)
Balance – June 30, 2018	$	—

In July 2012, the Company sold $45.0 million in aggregate principal amount of 2022 Notes, for net proceeds of $40.9 million, after accounting for $2.7 million and $1.4 million of discounts and issue costs, respectively. The 2022 Notes bear interest at 7.5% per annum, which is to be paid semi-annually in arrears on January 1 and July 1 of each year. The 2022 Notes were to mature on July 1, 2022, unless earlier repurchased, redeemed or converted. During the six months ended June 30, 2018 and 2017, the Company recorded:

● $0.0 million and $0.08 million, respectively, of expense related to the amortization of debt discounts and issue costs,

● $0.02 million and $1.2 million, respectively, of expense related to the exchange of debt;

● $0.0 million and $0.02 million, respectively, of interest expense related to the 2022 Notes.

The amortization of debt issue costs, debt discounts and cash interest are included as a component of interest expense in the consolidated statements of operations. The Company amortized debt discounts and debt issue costs associated with the 2022 Notes using an effective interest rate of 40% from the issuance date through July 1, 2017, a five-year period, which represents the date the holders can require the Company to repurchase the 2022 Notes.

In January 2018, the Company entered into a private exchange agreement with a holder of the 2022 Notes to exchange the remaining $0.5 million of outstanding principal amount of the 2022 Notes for 39,016 shares of common stock. Upon completion of this exchange, the 2022 Notes were satisfied in their entirety and there are no remaining obligations under the 2022 Notes.

10. Gevo Development

The Company made capital contributions to Gevo Development of $0.5 million and $3.0 million during the three months ended June 30, 2018 and 2017, and $1.8 million and 6.2$ million, respectively, during the six months ended June 30, 2018and 2017, respectively.  

The following table sets forth (in thousands) the net loss incurred by Gevo Development (including Agri-Energy after September 22, 2010, the closing date of the acquisition) which has been fully allocated to the Company’s capital contribution account based upon its capital contributions (for the period prior to September 2010) and 100% ownership (for the period after September 22, 2010).

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	2018			2017			2018			2017
Gevo Development Net Loss	$	(2,062	)	$	(3,067	)	$	(4,579	)	$	(7,178	)

20

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

The accounts of Agri-Energy are consolidated within Gevo Development as a wholly-owned subsidiary which is then consolidated into Gevo.

11. Stock-Based Compensation

The Company records stock-based compensation expense during the requisite service period for share-based payment awards granted to employees and non-employees.

The following table sets forth the Company’s stock-based compensation expense (in thousands) for the periods indicated.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options and employee stock purchase plan awards
Research and development	$	9	$	9	$	18	$	18
Selling, general and administrative		11		31		41		61
Restricted stock awards
Research and development		-		1		-		13
Selling, general and administrative		-		-		-		17
Restricted stock units
Research and development		17		17		34		35
Selling, general and administrative		17		39		58		81
Stock appreciation rights
Research and development		-		-		-		-
Selling, general and administrative		86		-		86		-
Total stock-based compensation	$	140	$	97	$	237	$	225

12. Commitments and Contingencies

Legal Matters. From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of its business. The Company is not presently a party to any litigation that it believes to be material and is not aware of any pending or threatened litigation against the Company that it believes could have a material adverse effect on its business, operating results, financial condition or cash flows.

Leases. During the year ended December 31, 2012, the Company entered into a six-year software license agreement. The Company concluded that the software license agreement qualified as a capital lease. Accordingly, at June 30, 2018 and December 31, 2017, there were no capital lease obligations outstanding. 

The Company has an operating lease for its office, research, and production facility in Englewood, Colorado with a term expiring in July 2021. The Company also maintains a corporate apartment in Colorado, which has a lease term expiring during the next 12 months. The Company has an operating lease for the rail cars used by Agri-Energy in Luverne, Minnesota.

Rent expense for the three months ended June 30, 2018 and 2017, respectively, was $0.4 and $0.4, and for the six months ended June 30, 2018and 2017 was $0.9 million and $0.8 million, respectively.

The table below shows the future minimum payments under non-cancelable operating leases and at June 30, 2018 (in thousands):

	Operating Leases
2018 (remaining)	$	731
2019		943
2020		430
2021		218
2022 and thereafter		-
Total	$	2,322

21

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

On July 27, 2018, the Company entered into an Equipment Operating Lease and Services Agreement with Shockwave, LLC ("Shockwave") for one DGS Drying Machine (the "Dryer Agreement"). Pursuant to the terms of the Dryer Agreement, the Company is obligated to pay Shockwave $1.0 million in forty-eight equal payments following the installation of the DGS Drying Machine. Also on July 27, 2018, the Company entered into an Equipment Operating Lease and Services Agreement with Shockwave for one Corn Fractionation Machine ("the Corn Fractionation Agreement"). Pursuant to the terms of the Corn Fractionation Agreement, the Company is obligated to pay Shockwave $2.5 million in forty-eight equal payments following the Operation Date, as such term is defined in the Corn Fractionation Agreement.

Indemnifications. In the ordinary course of its business, the Company makes certain indemnities under which it may be required to make payments in relation to certain transactions. As of June 30, 2018 and December 31, 2017, the Company did not have any liabilities associated with indemnities.

Certain of the Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable, for which the carrying value on the Company’s balance sheet approximates their fair values due to the short maturities.

In addition, the Company, as permitted under Delaware law and in accordance with its amended and restated certificate of incorporation and amended and restated bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The duration of these indemnifications, commitments, and guarantees varies and, in certain cases, is indefinite. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that may enable it to recover a portion of any future amounts paid. The Company accrues for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. No such losses have been recorded to date.

Environmental Liabilities. The Company’s operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company’s liability is probable and the costs can be reasonably estimated. No environmental liabilities have been recorded as of June 30, 2018 or December 31, 2017.

13. Fair Value Measurements

Accounting standards define fair value, outline a framework for measuring fair value, and detail the required disclosures about fair value measurements. Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Standards establish a hierarchy in determining the fair market value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. Standards require the utilization of the highest possible level of input to determine fair value.

Level 1 – inputs include quoted market prices in an active market for identical assets or liabilities.

Level 2 – inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an active market, and other observable information that can be corroborated by market data.

Level 3 – inputs are unobservable and corroborated by little or no market data.

22

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

 These tables present the carrying value and fair value, by fair value hierarchy, of the Company's financial instruments, excluding cash and cash equivalents, accounts receivable and accounts payable at June 30, 2018 and December 31, 2017, respectively (in thousands).

			Fair Value Measurements at June 30, 2018 (in thousands)
	Fair Value at June 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	86	$	-	$	-	$	86
2020 Embedded Derivative Liability		684		-		-		684
Total Recurring Fair Value Measurements	$	770	$	-	$	-	$	770
Nonrecurring
Corn and finished goods inventory	$	1,747	$	188	$	1,559	$	-
Total Non-Recurring Fair Value Measurements	$	1,747	$	188	$	1,559	$	-

			Fair Value Measurements at December 31, 2017 (in thousands)
	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	1,951	$	–	$	–	$	1,951
2020 Notes Embedded Derivative Liability		5,224		–		–		5,224
Total Recurring Fair Value Measurements	$	7,175	$	–	$	–	$	7,175
Nonrecurring
Corn and finished goods inventory	$	1,916	$	189	$	1,727	$	–
Total Non-Recurring Fair Value Measurements	$	1,916	$	189	$	1,727	$	–

23

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

The following table provides changes to those fair value measurements using Level 3 inputs for the six months ended June 30, 2018.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands)
	Derivative Warrant Liability			2020 Notes Embedded Derivative
Opening Balance	$	1,951		$	5,224
Transfers into Level 3		–			–
Transfers out of Level 3		–			–
Total (gains) or losses for the period
Included in earnings		3,040			(2,347	)
Included in other comprehensive income		–			–
Purchases, issues, sales and settlements
Purchases		–			–
Issues		–			–
Sales		–			–
Settlements		(4,905	)		(2,193	)
Closing balance	$	86		$	684

Inventories. The Company records its corn inventory at fair value only when the Company’s cost of corn purchased exceeds the market value for corn. The Company determines the market value of corn and dry distiller’s grain based upon Level 1 inputs using quoted market prices. The Company records its ethanol, isobutanol and hydrocarbon inventory at market using Level 2 inputs.

2020 Notes Embedded Derivative. The Company had estimated the fair value of the embedded derivative on a stand-alone basis to be $0.7 million at June 30, 2018 and $5.2 million at December 31, 2017 based upon Level 3 inputs. Changes in the fair value of the embedded derivative is recognized each reporting period as a “Change in fair value of 2020 Notes embedded derivative” in the consolidated Statements of Operations and Statements of Cash Flows. See Note 6, Embedded Derivatives and Derivative Warrant Liabilities, for the fair value inputs used to estimate the fair value of the embedded derivative.

Derivative Warrant Liability. The Company values the Series K Warrants using a Monte-Carlo model (Level III), and all others using a Black-Scholes model, which have historically included additional inputs (Level III). The Company has estimated the fair value of the derivative warrant liability to be $0.1 million as of June 30, 2018. Changes in the fair value of the derivative warrant liability is recognized each reporting period as a “Change in fair value of derivative warrant liability” in the consolidated Statements of Operations and Statements of Cash Flows.

 While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

14. Segments

The Company has determined that it has two operating segments: (i) Gevo segment; and (ii) Gevo Development/Agri-Energy segment. The Company organizes its business segments based on the nature of the products and services offered through each of the Company's consolidated legal entities. Transactions between segments are eliminated in consolidation.

Gevo Segment. The Gevo segment is responsible for all research and development activities related to the future production of isobutanol, including the development of the Company's proprietary biocatalysts, the production and sale of biojet fuel, the Company's retrofit process and the next generation of chemicals and biofuels that will be based on the Company's isobutanol technology. The Gevo segment also develops, maintains and protects the Company's intellectual property portfolio, develops future markets for the Company's isobutanol and provides corporate oversight services.

24

GEVO, INC.

Notes to Unaudited Consolidated Financial Statements

(unaudited)

Gevo Development/Agri-Energy Segment. The Gevo Development/Agri-Energy segment is currently responsible for the operation of the Company's Luverne Facility and the production of ethanol, isobutanol and related products.

The tables below present revenues, loss from operations, interest expense, depreciation expense and acquisitions of plant, property and equipment by segment, in thousands.

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Gevo	$	607		$	660		$	632		$	749
Gevo Development / Agri-Energy		8,813			6,882			17,031			12,408
Consolidated	$	9,420		$	7,542		$	17,663		$	13,157
Loss from operations:
Gevo	$	(2,315	)	$	(3,091	)	$	(4,791	)	$	(6,156	)
Gevo Development / Agri-Energy		(2,064	)		(3,086	)		(4,587	)		(7,205	)
Consolidated	$	(4,379	)	$	(6,177	)	$	(9,378	)	$	(13,361	)
Interest expense:
Gevo	$	904		$	630		$	1,729		$	1,341
Gevo Development / Agri-Energy		-			-			-			-
Consolidated	$	904		$	630		$	1,729		$	1,341
Depreciation expense:
Gevo	$	76		$	127		$	160		$	264
Gevo Development / Agri-Energy		1,563			1,538			3,125			3,077
Consolidated	$	1,639		$	1,665		$	3,285		$	3,341
Acquisitions of plant, property and equipment:
Gevo	$	2		$	53		$	2		$	109
Gevo Development / Agri-Energy		54			265			121			882
Consolidated	$	56		$	318		$	123		$	991

	June 30,			December 31,
	2018			2017
Total assets (in thousands):
Gevo	$	115,116		$	87,507
Gevo Development / Agri-Energy		143,982			149,758
Intercompany eliminations		(143,068	)		(148,412	)
Consolidated	$	116,030		$	88,853

15. Subsequent Events

None noted except for those events described in Notes 2, 5 and 125 to the unaudited consolidated financial statements for the three and six months ended June 30, 2018.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used anywhere in this Report, the words “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements may include, but are not limited to, risks and uncertainties related to our ability to sell our products, our ability to expand or continue production of ethanol and isobutanol at our Luverne Facility (as defined below),, our ability to meet our production, financial and operational guidance, our ability and plans to construct a commercial hydrocarbon facility to produce alcohol-to-jet fuel (“ATJ”), our ability to raise additional funds to continue operations and/or expand the Luverne Facility, our ability to produce ethanol and isobutanol on a commercial level and at a profit, achievement of advances in our technology platform, the success of our retrofit production model, the availability of suitable and cost-competitive feedstocks, our ability to gain market acceptance for our products, the expected cost-competitiveness and relative performance attributes of our ethanol and isobutanol and the products derived from isobutanol, additional competition and changes in economic conditions, the future price and volatility of petroleum and products derived from petroleum, and those risks described in documents we have filed with the U.S. Securities Exchange Commission (the “SEC”), including this Report in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors,” our Annual Report on Form 10-K for the year ended December 31, 2017 (our “Annual Report”), and other reports that we have filed with the SEC. All forward-looking statements in this Report are qualified entirely by the cautionary statements included in this Report and such other filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this Report. These forward-looking statements speak only as of the date of this Report. We disclaim any undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Unless the context requires otherwise, in this Report the terms “we,” “us,” “our” and the “Company” refer to Gevo, Inc. and its subsidiaries.

The following discussion should be read in conjunction with our unaudited consolidated financial statements and the related notes and other financial information appearing elsewhere in this Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including, without limitation, the disclosures in our Annual Report.

Reverse Stock Split

On May 30, 2018, after receipt of stockholder approval, our board of directors approved an amendment to our Amended and Restated Certificate of Incorporation to effect a reverse stock split of the outstanding shares of our common stock by a ratio of one-for-twenty (the “Reverse Stock Split”). On June 1, 2018, we effected the Reverse Stock Split and our common stock began trading on a Reverse Stock Split basis on June 4, 2018.  Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth herein have, where applicable, been adjusted retroactively to reflect the Reverse Stock Split. 

Company Overview

We are a next generation “low-carbon” fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle. The most common low-carbon fuels are renewable fuels. We are focused on the development and production of mainstream fuels like gasoline and jet fuel using renewable feedstocks, that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. In addition to serving the low-carbon fuel markets, through our technology, we can also serve markets for the production of chemical intermediate products for solvents, plastics, and building block chemicals.

Our proven production technologies target what we believe to be large potential markets of renewable fuels and related chemicals that can compete directly against petrochemical products depending on the price of oil and the value of carbon intensity. Renewable fuels are one of the few fuel products where the value for renewable carbon has already been established, particularly in the United States and the European Union. We believe that the demand for low-carbon fuels and renewable chemicals will continue to grow in the future.

26

Decarbonization

We believe that we have the technology and production platform to produce renewable fuels that reduce or eliminate greenhouse gases from the burning of fuels, and to do so profitably. Low-carbon fuels can best be produced by (i) replacing fossil-based carbon with renewable carbon, and (ii) replacing some or most of the fossil-based energy sources needed for heat and electricity during the fuel production process. Renewable carbon comes from growing plants and crops. Growing plants efficiently provides the opportunity to capture carbon in the soil and generate protein, further lowering the carbon intensity of fuels produced from these renewable feedstocks. Eliminating or reducing fossil-based carbon is referred to as “decarbonization,” and the products resulting from such a decarbonization process are rewarded with a lower carbon intensity (“C.I.”) score, which increases the market value of certain products. In addition to the U.S. Renewable Fuel Standard policy that rewards low-carbon fuels, certain markets in North America such as California, Oregon, Washington and Canada and countries such as Japan, China, India, and other Asian countries are ascribing extra economic value on decarbonization. We believe that decarbonization is an emerging market opportunity, and that we have the technologies, products and a base production facility to take advantage of this opportunity.

The State of California is a leader in the push for decarbonization with its Low Carbon Fuel Standard (LCFS), which is a market-based cap and trade approach to lowering the greenhouse gas emissions from petroleum-based transportation fuels. We believe that the LCFS approach to reducing greenhouse gases will be implemented by Canada and other states in the United States (Oregon and Washington, as examples) and eventually could be implemented at the Federal level, which should create more demand for low-carbon fuel products. The demand and value for low-carbon fuel products in California has sharpened our focus on low C.I. ethanol. Our current production plant is small enough and specialized enough so that, with certain process optimizations, we could reduce our demand for fossil-based energy required in the production process. By doing this, we would increase the value of our ethanol because it would carry a lower C.I. score, which would translate into a premium selling price in the market. Any improvements we make to produce low-carbon ethanol, are also expected to benefit any other low-carbon products we produce, such as our renewable isobutanol, jet fuel and isooctane (gasoline).

Low-Carbon Ethanol Opportunity

Our specialty production facility in Luverne, Minnesota (the “Luverne Facility”) has an annual production capacity of approximately 20 million gallons per year ("MGPY") of ethanol, 45-50 kilotons of animal feed, and 3 million pounds of corn oil.

The Luverne Facility has the capability, with certain capital improvements, to produce low-carbon ethanol side-by-side with low-carbon isobutanol, in addition to renewable jet fuel and isooctane and other related products that can be made from isobutanol. By focusing on low-carbon ethanol in the near term, debottlenecking production, while adapting and optimizing the Luverne Facility’s energy and equipment infrastructure to use lower amounts of lower fossil-based energy sources, we believe that we can increase revenues to make the Luverne Facility profitable on a non-GAAP Cash EBITDA basis. Cash EBITDA is a non-GAAP measure and is calculated by adding depreciation and non-cash stock compensation to GAAP loss/income from operations. See "Non-GAAP Financial Information" below for additional information regarding non-GAAP EBITDA.

In addition, by undertaking further capital investments to improve our Luverne Facility, we believe we may be able to generate sufficient profits at the Luverne Facility to make the Company on a consolidated basis profitable on a non-GAAP Cash EBITDA basis, independent from the production and sales of isobutanol, jet fuel, isooctane and related technologies. Such capital investments could include: (i) improvements at the Luverne Facility to further lower the C.I. score of our fuel products; and (ii) installing fractionation technologies at the Luverne Facility to produce value added protein feed products, food grade corn oil, as well products using the fiber fraction of corn. Concurrently, while focusing on low-carbon ethanol, we plan on expanding hydrocarbon production either at our hydrocarbons demonstration plant located at South Hampton Resources located in Silsbee, Texas (the “Silsbee Facility”) or, subject to securing adequate financing, by constructing a new larger demo facility at the Luverne Facility for specialty hydrocarbon fuels, which may add additional positive cash flow on a non-GAAP Cash EBITDA basis.

The future improvements that we are planning for the Luverne Facility will lower the carbon intensity of the Luverne Facility and should benefit both ethanol and isobutanol production. The smaller size of our Luverne Facility compared to other ethanol production facilities means that the Luverne Facility offers opportunities to lower carbon intensity that other larger scale plants might not possess. For example, we could install small cogeneration units or make certain changes to unit operations to improve water removal efficiency given the lower power demands for steam and electricity which would result in lower ongoing capital expenditures. We believe that smaller, specialized biofuel production facilities aimed at low-carbon specialty fuels, related specialty protein products, and food oils, will have an advantage over large scale ethanol plants that, out of necessity, have to focus on commodity products for industrial markets. In other words, as these low C.I. markets further develop, tracking carbon lifecycles will be important. Tracking carbon means knowing the supply of feedstock and how it is grown. We believe a smaller production facility like our Luverne Facility will be well positioned to source responsibly grown feedstocks.

Renewable Isobutanol, Jet Fuel, Gasoline and Related Products

We believe that renewable isobutanol is a potentially valuable commercial product because of its versatility to address large markets either as a product directly or as a key intermediate for producing renewable carbon alternatives to mainstream fuels such as jet fuel, gasoline, plastics such as polyethylene terephthalate (“PET”), and various other chemical products and materials. Isobutanol is a four-carbon alcohol that can be sold directly for use as a specialty chemical in the production of solvents, paints and coatings, or more importantly from a market size and performance value-added point of view, as a gasoline blendstock. Because isobutanol can be readily converted to hydrocarbon products such hydrocarbon fuels, including isooctane, isooctene and alcohol-to-jet fuel (“ATJ”), lubricants, polyester, rubber, plastics, fibers and other polymers, we believe that the addressable markets are large, potentially being able to ultimately reach 40% of the global petrochemicals markets depending on the price of oil and the market value of renewable carbon.

We also have proven that our renewable isobutanol can be readily converted to hydrocarbon products that address large markets, such as jet fuel and isooctane. Specifically, our renewable ATJ has been certified for use in commercial aviation and used multiple times for commercial flights.

Our renewable isobutanol is being used as a gasoline blendstock in the Houston area for on-road vehicles as an ethanol-free fuel option for consumers and off-road uses in vehicles, boats and small engines.

Our renewable isooctane meets the performance and specification requirements for use in fuels and related chemicals. It is currently being used in the European Union as a fuel for Formula One race cars, as well as other applications. As a result of the commercial traction that we have already achieved, we believe that there is large potential to grow our business, through a combination of (i) directly producing and selling our renewable isobutanol and related hydrocarbon products and (ii) licensing our technology.

27

Our Strategy

Our strategy to grow our business is to become profitable by investing capital to upgrade the Luverne Facility to primarily produce low-carbon ethanol for the California market. We plan to use low-carbon ethanol to achieve positive cash flows, which should provide us the time to execute on our ultimate business goal of producing and selling into the isobutanol and its derivative hydrocarbon product markets such as ATJ and isooctane. Key elements of our strategy include:

●  Undertake incremental process improvements to lower energy consumption at the Luverne Facility. By investing additional capital at the Luverne Facility, we believe that we can lower the carbon intensity (i.e. lower the carbon dioxide emissions from the plant) creating additional profit margin opportunities in low-carbon markets for ethanol, as well as for our isobutanol and its derivative hydrocarbon products.

●  Implement fractionation technology at the Luverne Facility. We are evaluating various corn fractionation technologies that can be deployed at the Luverne Facility in order to generate additional revenue from incremental volumes of alcohol, distiller grains and corn oil, as well as generate new revenue opportunities from the production and sale of corn fiber.

● Expand hydrocarbon production at the Silsbee Facility. Along with our production partner, South Hampton Resources, we plan to expand and reconfigure the Silsbee Facility in order to generate greater revenues and better profit margins, while enabling customers to further develop markets for ATJ and isooctane which will help us transition these customers to long-term off-take agreements for greater volumes of products.

● Enter into supply agreements for isobutanol and its derivative hydrocarbon products with customers to support capacity growth using project financing or other less expensive and less dilutive forms of capital. We intend to build on our existing customer contracts, such as our isooctane supply agreements with HCS Holding GmbH, to obtain additional binding off-take agreements that would economically support converting the Luverne Facility primarily to the production of isobutanol and its derivative hydrocarbon products. If we are able to obtain sufficient new supply agreements, we expect to be able to raise capital to fund such conversion of the Luverne Facility using project financing or other less expensive and less dilutive forms of capital as compared to the equity offerings that we are conducting hereby and have used in the past.

● Subject to receipt of financing, we plan to scale up the Luverne Facility for the production of isobutanol and its derivative products. Upon, and subject to, securing adequate financing, we plan to build out the Luverne Facility to enable the production of isobutanol and its derivative products at levels sufficient to supply our initial larger scale off-take agreements with our customers.

● Expand the global production capacity of isobutanol and its derivative hydrocarbon products via licensing. We have proven that the isobutanol production process works in full scale fermenter systems at the Luverne Facility, and we have also proven that our renewable isobutanol can be readily converted to hydrocarbon products at the Silsbee Facility. We intend to expand the global production of isobutanol and its derivative hydrocarbon products beyond the Luverne Facility through a low-cost, high-margin licensing model, in collaboration with partners such as Praj Industries, with whom we have previously announced a joint development agreement.

28

Latest Highlights and Developments

● During the three months ended June 30, 2018, we sold 6,281,409 shares of common stock (after giving effect to the one-for-twenty reverse stock split effected on June 1, 2018) under our at-the-market offering program for gross proceeds of approximately $37.4 million, of which $14.5 million was received on July 3, 2018. As of June 30, 2018, we had cash and cash equivalents of approximately $27.0 million. We sold additional shares of our common stock and raised an additional $0.4 million under the at-the-market offering program after June 30, 2018.

● During June 2018, we received notices of exercise from holders of its Series A and K Warrants to purchase common stock to issue an aggregate of 300,761 shares of common stock for total gross proceeds of approximately $1.3 million.  Following these exercises, Series A Warrants to purchase 320 shares of common stock and Series K Warrants to purchase 4,006 shares of common stock remain outstanding at an exercise price of $3.80 per share.

● On June 12, 2018, the Environmental Protection Agency announced the approval of isobutanol at a 16% blend level in gasoline for on-road use in automobiles.  Previously, isobutanol had been approved for on-road use up to a 12.5% blend.  A 16% isobutanol blend in gasoline provides the same oxygen content in gasoline as an E10 gasoline, and provides other value added benefits such as low Reid vapor pressure, higher energy density, high octane, and low water solubility.

● On June 19, 2018, we announced that we had received a letter from The NASDAQ Stock Market LLC that we had regained compliance with the NASDAQ Capital Market’s minimum bid price continued listing requirement. 

● On June 19, 2018 and June 21, 2018, we received conversion notices from the holders of our 12.0% convertible senior secured notes due 2020 (the “2020 Notes”) to convert an aggregate of approximately $3.2 million in aggregate principal amount of 2020 Notes and $0.7 million in “make-whole” interest in exchange for an aggregate of 260,793 shares of our common stock. Upon completion, these conversions reduced the outstanding principal amount of the 2020 Notes to approximately $13.6 million. 

● On June 21, 2018, we announced that we had entered into a long-term agreement to supply our ATJ to Avfuel Corporation, effective July 1, 2018.  The Supply Agreement with Avfuel is our first long-term commercial supply agreement for our ATJ

● On July 27, 2018, we entered into two separate operating leases and service agreements with Shockwave, LLC to install a DGS Drying Machine and Corn Fractionation Machine (collectively the "Machines") at the Luverne Facility. The Machines are expected to improve profitability of the Luverne Facility by lowering the cost of ethanol and isobutanol production, increasing the number and value of feed and protein products, producing corn oil for food use and helping to lower the overall carbon footprint for the Luverne Facility. The Machines are expected to be operational during the first quarter of 2019.

29

Market Development, Sales and Production Strategy for 2018

In 2018, we intend to continue to develop the markets for our isobutanol, jet fuel, isooctane, and other products made from isobutanol and ethanol. Ultimately, our primary target is to enter into binding supply contracts for isobutanol and related hydrocarbon products that represent the majority of the production volumes to be produced at the expanded Luverne Facility that we plan to construct (the “Luverne Facility Expansion”). The focus for market development continues to be:

● Isobutanol for the ethanol free gasoline market, primarily in Reformulated Gasoline or RFG areas. We plan to increase our distribution network, and add additional regions, broadening our distribution footprint. We intend to use isobutanol in our inventory in part to develop these sales.

● Isooctane for gasoline and chemicals are expected to continue to be a priority. We expect the vast majority of sales to ship to the European Union. We expect that the demand for this product will continue to grow, and we may expand or modify the hydrocarbon demonstration plant at South Hampton Resources in Silsbee, Texas to increase capacity for isooctane. We intend to use renewable isobutanol in our inventory for the feedstock for this product. We expect to continue to work on securing a set of offtake contracts that would support the Luverne Facility Expansion.

● We plan to sell ATJ for market development purposes and demonstrations. In certain niche markets, we may begin commercial sales, depending on price and volumes that can be supported from the hydrocarbon demonstration plant at South Hampton Resources in Silsbee, Texas. We expect to continue to work on securing a set of offtake contracts that would support the Luverne Facility Expansion.

● In 2018, we expect to sell approximately 19 million gallons or more of ethanol, and approximately 56 thousand tons of its animal feed product. As previously announced, in 2018, we expect to improve the cash flow out of the Luverne Facility by optimizing the ethanol production processes, developing value added products for ethanol, animal feed, and corn oil produced at the Luverne Facility plant and further reducing the cost of the Luverne Facility’s carbohydrates.

We expect to use our inventory of isobutanol to meet our market development needs in 2018. In 2017, we increased our on-hand inventory of isobutanol. During the production runs at the Luverne Facility in 2017, we also met our variable cost production targets for isobutanol. As previously disclosed, running isobutanol at a scale of 1.5 MGPY, the current capacity of the Luverne Facility, increases cash burn because not all of the fixed costs are covered given the relatively low run rate. We are prepared to ramp-up isobutanol production in response to positive demand and price appreciation. We continue to be focused on developing markets and generating cash using the current inventory. We expect to sell isobutanol into the gasoline blendstock market, as well as selling isooctane, jet fuel and other products made from inventoried isobutanol.

Path to Profitability

We believe that there are two paths by which we can become profitable. First, together with the initiatives to improve the cash flow profile of our business in 2018 compared to 2017, we believe that by optimizing the Luverne Facility’s ethanol production processes to produce low-carbon ethanol as described above, developing value added products for low-carbon ethanol and animal feed produced at the plant and further reducing the cost of the plant’s carbohydrate feedstock, we could become profitable in the near future, independent of isobutanol production.

Second, we believe that we could become profitable if we are able to obtain binding offtake agreements for our isobutanol and related hydrocarbon products that justify the Luverne Facility Expansion, along with adequate financing for such expansion, whereby we would convert the Luverne Facility primarily to the production of isobutanol at scale, with some percentage of such isobutanol volumes to be further processed into hydrocarbons such as ATJ and isooctane.

Luverne Facility Update

In 2018, as previously announced, we expect to undertake initiatives to improve the profitability of the Luverne Facility.

We currently have five fermentation vessels at our Luverne Facility. Three fermentation vessels are made from carbon steel. Two fermentation vessels are newer and made from stainless steel. The two stainless steel fermentation vessels and one of the three carbon steel fermentation vessels are expected to be used for ethanol production during 2018. The remaining two carbon steel fermentation vessels are not expected to be needed for production in 2018. If we were to run isobutanol production in side by side mode of operation with ethanol production, we would need one of the two other carbon steel fermentation vessels to be put back into operation, along with the other three fermentation vessels that we plan to use for ethanol production during 2018.

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During 2017, we hired a third-party engineering firm to test the structural integrity of the carbon steel fermentation vessels. The results of the testing indicate that one of these fermentation vessels has at least one more year of life before needing repair, and the other one has approximately two months of life remaining. If we were to start up and run isobutanol for an extended period of time, at least one of these carbon steel fermentation vessels would need to be repaired prior to being put back into service. Repair costs are estimated to be approximately $250,000 per fermentation vessel.

Ultimately, we anticipate that as we build out, or expand the Luverne Facility to increase capacity, we might repair both carbon steel fermentation vessels, and/or install additional fermentation vessels depending on the need for capacity for isobutanol and/or ethanol at that time.

Debt Maturities and Exchanges

In January 2018, we entered into a private exchange agreement with a holder of our 2022 Notes to exchange the remaining $0.5 million of outstanding principal amount of the 2022 Notes for 780,303 shares of our common stock. Upon completion of this exchange, the 2022 Notes were satisfied in their entirety and there are no remaining obligations under the 2022 Notes.

As noted above, in June 2018, holders of our 2020 Notes converted an aggregate of approximately $3.2 million of outstanding principal and $0.7 million in "make-whole" interest in exchange for an aggregate of 260,793 shares of our common stock. Upon completion of these conversions, approximately $13.6 million in outstanding principal remained outstanding.

Financial Condition

For the three months ended June 30, 2018 and 2017, we incurred a consolidated net loss of $11.5 million and $10.2 million, respectively, and for the six months ended June 30, 2018 and 2017, we incurred a consolidated net loss of $14.0 million and $16.1 million, respectively, and we had an accumulated deficit of $415.3 million at June 30, 2018. Our cash and cash equivalents at June 30, 2018 totaled $27.0 million (with gross proceeds of $14.9 million under the at-the-market offering program being added to cash since June 30, 2018 due to timing of settlement of sales under the at-the-market offering program) which is primarily being used for the following: (i) operating activities of our Luverne Facility; (ii) operating activities at our corporate headquarters in Colorado, including research and development work; (iii) capital improvements primarily associated with the Luverne Facility; (iv) costs associated with optimizing isobutanol production technology; and (v) debt service obligations

The continued operation of our business is dependent upon raising additional capital through future public and private equity offerings, debt financings or through other alternative financing arrangements. In addition, successful completion of our research and development programs and the attainment of profitable operations are dependent upon future events, including our ability to raise sufficient capital to expand our commercial production facility, completion of our development activities resulting in sales of isobutanol or isobutanol-derived products and/or technology, achieving market acceptance and demand for our products and services and attracting and retaining qualified personnel.

We expect to incur future net losses as we continue to fund the development and commercialization of our products and product candidates. We have primarily relied on raising capital to fund our operations and debt service obligations by issuing common stock and warrants in underwritten public offerings. Those issuances have caused significant dilution to our existing stockholders. While we have sought, and will continue to seek, other, less dilutive forms of financing to fund our operations and debt service obligations, there is no assurance that we will be successful in doing so.

Based on our current operating plan, existing working capital at December 31, 2017 was not sufficient to meet the cash requirements to fund planned operations through the period that is one year after the date our 2017 financial statements were issued unless we are able to raise additional capital to fund operations. Our audited financial statements for the year ended December 31, 2017, were prepared under the assumption that we would continue our operations as a going concern. Our independent registered public accounting firm for the year ended December 31, 2017 included a “going concern” emphasis of matter paragraph in its report on our financial statements as of, and for the year ended, December 31, 2017. These conditions raise substantial doubt about our ability to continue as a going concern. Our inability to continue as a going concern may potentially affect our rights and obligations under our debt obligations.

Our transition to profitability is dependent upon, among other things, the successful development and commercialization of our products and product candidates, the achievement of a level of revenues adequate to support our cost structure and securing sufficient financing for the build-out and Retrofit of the Luverne Facility or a facility at another suitable location. We may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise additional cash. We intend to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, we may seek additional capital through arrangements with strategic partners or from other sources, may seek to restructure our debt and we will continue to address our cost structure. Notwithstanding, there can be no assurance that we will be able to raise additional funds, or achieve or sustain profitability or positive cash flows from operations.

Non-GAAP Financial Information

Cash EBITDA is a non-GAAP measure and is calculated by adding depreciation and non-cash stock compensation to GAAP loss/income from operations. Management believes that non-GAAP Cash EBITDA is useful to supplement to its GAAP financial statements because management uses such information internally for its operating, budgeting and financial planning purposes. This non-GAAP financial measure also facilitates management's internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes this non-GAAP financial measure is useful to investors because it allows for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance.

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Results of Operations

Comparison of the Three Months Ended June 30, 2018 and 2017

	Three Months Ended June 30,
(in thousands)	2018			2017			Change
Revenue and cost of goods sold
Ethanol sales and related products, net	$	8,813		$	6,839		$	1,974
Hydrocarbon revenue		607			660			(53	)
Grant and other revenue		-			43			(43	)
Total revenues		9,420			7,542			1,878
Cost of goods sold		10,693			9,705			988
Gross loss		(1,273	)		(2,163	)		890
Operating expenses
Research and development expense		1,469			1,891			(422	)
Selling, general and administrative expense		1,637			2,123			(486	)
Total operating expenses		3,106			4,014			(909	)
Loss from operations		(4,379	)		(6,177	)		1,798
Other (expense) income
Interest expense		(904	)		(630	)		(274	)
(Loss) on exchange or conversion of debt		(2,181	)		(3,969	)		1,788
(Loss)/Gain from change in fair value of derivative warrant liability		(3,517	)		2,260			(5,777	)
(Loss) from change in fair value of 2020 Notes embedded derivative		(511	)		(1,662	)		1,151
Other income		-			20			(20	)
Total other expense, net		(7,113	)		(3,981	)		(3,132	)
Net loss	$	(11,492	)	$	(10,158	)	$	(1,334	)

Revenues. Revenue associated with the sale of ethanol, as well as isobutanol and related products for the three months ended June 30, 2018 was $8.8 million, an increase of $2.0 million compared to the three months ended June 30, 2017. This increase was primarily a result of increased ethanol and distiller grain sales. During the three months ended June 30, 2018, we sold 4.9 million gallons of ethanol compared to 4.0 million gallons of ethanol sold in the three months ended June 30, 2017. Hydrocarbon revenue, comprised of ATJ, isooctane and isooctene sales, decreased less than $0.1 million during the three months ended June 30, 2018, compared to the three months ended June 30, 2017, as a result of lower shipments of finished products from our demonstration plant located at the South Hampton Resources, Inc. facility near Houston, Texas (the “South Hampton Facility”).

Cost of goods sold. Cost of goods sold was $10.7 million during the three months ended June 30, 2018, compared to $9.7 million during the three months ended June 30, 2017. Cost of goods sold included approximately $9.1 million associated with the increased production of ethanol and related products and approximately $1.6 million in depreciation expense.

Research and development expense. Research and development expense decreased by approximately $0.4 million during the three months ended June 30, 2018, compared to the three months ended June 30, 2017, due primarily to a decrease in employee related expenses.

Selling, general and administrative expense. Selling, general and administrative expense decreased by approximately $0.5 million during the three months ended June 30, 2018, compared to the three months ended June 30, 2017 due primarily to a decrease in employee related expenses.

Interest expense. Interest expense in the three months ended June 30, 2018 was $0.9 million, an increase of $0.3 million compared to the three months ended June 30, 2017, due to an increase in the interest rate on our outstanding debt obligations as a result of the June 2017 exchange of the 2017 Notes for the 2020 Notes. 

(Loss) on exchange or conversion of debt. During the three months ended June 30, 2018, we incurred a $2.2 million non-cash loss as a result of the conversion of 2020 Notes for common stock, primarily the result of higher common stock prices at the time of the conversion.

(Loss)/Gain from change in fair value of derivative warrant liability. During the three months ended June 30, 2018 we incurred a $3.5 million non-cash loss on changes in the fair value of the derivative warrant liability, due primarily to the exercise of 251 Series A Warrants to purchase 251 shares of our common stock, and 300,510 Series K Warrants to purchase 300,510 shares of our common stock. The loss was the result of an increased price of our common stock at the time of exercise of our warrants.

(Loss) from change in fair value of the 2020 Notes embedded derivative. During the three months ended June 30, 2018, the estimated fair value of the 2020 Notes embedded derivative liability decreased, resulting in a non-cash loss of $0.5 million primarily due to the increase in the price of our common stock.

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Comparison of the Six Months Ended June 30, 2018 and 2017

	Six Months Ended June 30,
(in thousands)	2018			2017			Change
Revenue and cost of goods sold
Ethanol sales and related products, net	$	17,031		$	12,333		$	4,698
Hydrocarbon revenue		607			749			(142	)
Grant and other revenue		25			75			(50	)
Total revenues		17,663			13,157			4,506
Cost of goods sold		21,276			19,113			2,163
Gross loss		(3,613	)		(5,956	)		2,343
Operating expenses
Research and development expense		2,258			3,108			(850	)
Selling, general and administrative expense		3,507			4,297			(790	)
Total operating expenses		5,765			7,405			(1,640	)
Loss from operations		(9,378	)		(13,361	)		3,983
Other (expense) income
Interest expense		(1,729	)		(1,341	)		(388	)
(Loss) on exchange or conversion of debt		(2,202	)		(4,933	)		2,731
(Loss) from change in fair value of the 2017 Notes		-			(339	)		339
(Loss)/Gain from change in fair value of derivative warrant liability		(3,040	)		5,519			(8,559	)
(Loss)/Gain from change in fair value of 2020 Notes embedded derivative		2,347			(1,662	)		4,009
Other income		8			26			(18	)
Total other expense, net		(4,616	)		(2,730	)		(1,886	)
Net loss	$	(13,994	)	$	(16,091	)	$	2,097

Revenues.  Revenue associated with the sale of ethanol, as well as isobutanol and related products for the six months ended June 30, 2018 was $17.0 million, an increase of $4.7 million from the six months ended June 30, 2017.  This increase was primarily a result of greater ethanol and distiller grain sales. During the six months ended June 30, 2018, we sold 9.8 million gallons of ethanol compared to 7.3 million gallons of ethanol sold in the six months ended June 30, 2017. Hydrocarbon revenue, comprised of ATJ, isooctane, and isooctene sales, decreased during the six months ended June 30, 2018 primarily as a result of lower shipments of finished products from our South Hampton Facility.  Grant and other revenue was $25,000 during the six months ended June 30, 2018, a decrease of $0.5 million as compared to the six months ended June 30, 2017, primarily as a result of the Company’s activities from the Northwest Advanced Renewables Alliances ending in the third quarter of 2017.

Cost of goods sold. Cost of goods sold was $21.3 million during the six months ended June 30, 2018, compared with $19.1 during the six months ended June 30, 2017. Cost of goods sold in the 2018 period included approximately $18.2 million associated with the production of ethanol, isobutanol and related products and approximately $3.1 million in depreciation expense.

Research and development expense. Research and development expense decreased by approximately $0.9 million during the six months ended June 30, 2018, compared to the six months ended June 30, 2017, due primarily to a decrease in employee related expenses and costs associated with the South Hampton facility.

Selling, general and administrative expense. Selling, general and administrative expense decreased by approximately $0.8 million during the six months ended June 30, 2018, compared with to six months ended June 30, 2017, due primarily to an decrease in employee related expenses.

Interest expense.  Interest expense for the six months ended June 30, 2018 was $1.7 million, which was an increase of $0.4 million compared to the six months ended June 30, 2017, due to an increase in the interest rate on our outstanding debt obligations as a result of the June 20, 2017 exchange of the 2020 Notes.

(Loss) on exchange or conversion of debt. During the six months ended June 30, 2018, we incurred a non-cash loss of $2.2 million primarily The loss was due to an increase in the price of our stock at the time of the conversion.

(Loss)/Gain from change in fair value of derivative warrant liability.  During the six months ended June 30, 2018, we incurred a non-cash loss of approximately $3.0 million, due primarily to the exercise of 251 Series A Warrants to purchase 251 shares of our common stock, and 300,510 Series K Warrants to purchase 300,510 shares of our common stock. The loss was the result of an increased price of our common stock at the time of exercise of the warrants.

(Loss)/Gain from change in fair value of the 2020 notes embedded derivative. During the six months ended June 30, 2018, the estimated fair value of the 2020 Notes embedded derivative liability decreased,  resulting in a non-cash gain of $2.3 million primarily due to the increase in the price of the our stock.

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Revenues, Cost of Goods Sold and Operating Expenses

Revenues

During the six months ended June 30, 2018 and 2017, we generated revenue from: (i) the sale of ethanol, isobutanol and related products, net; (ii) hydrocarbon sales consisting primarily of the sale of ATJ fuel, isooctane and isooctene derived from our isobutanol for purposes of certification and testing; and (iii) government grants and research and development programs.

Cost of Goods Sold and Gross Loss

Cost of goods sold during the six months ended June 30, 2018 and 2017 primarily includes costs directly associated with isobutanol production and ethanol production at the Luverne Facility, such as costs for direct materials, direct labor, depreciation, other operating costs and certain plant overhead costs. Direct materials include corn feedstock, denaturant and process chemicals. Direct labor includes compensation of personnel directly involved in production operations at the Luverne Facility. Other operating costs include utilities and natural gas usage.

Our gross loss is defined as our total revenue less our cost of goods sold.

Research and Development

Our research and development costs consist of expenses incurred to identify, develop and test our technologies for the production of isobutanol and the development of downstream applications thereof. Research and development expenses include personnel costs (including stock-based compensation), consultants and related contract research, facility costs, supplies, depreciation and amortization expense on property, plant and equipment used in product development, license fees paid to third parties for use of their intellectual property and patent rights and other overhead expenses incurred to support our research and development programs. Research and development expenses also include upfront fees and milestone payments made under licensing agreements and payments for sponsored research and university research gifts to support research at academic institutions.

Selling, General and Administrative

Selling, general and administrative expenses consist of personnel costs (including stock-based compensation), consulting and service provider expenses (including patent counsel-related costs), legal fees, marketing costs, corporate insurance costs, occupancy-related costs, depreciation and amortization expenses on property, plant and equipment not used in our product development programs or recorded in cost of goods sold, travel and relocation and hiring expenses.

We also record selling, general and administrative expenses for the operations of the Luverne Facility that include administrative and oversight expenses, certain personnel-related expenses, insurance and other operating expenses.

Liquidity and Capital Resources

Our independent auditor included “going-concern” language in our audited financial statements for the year-ended December 31, 2017. For more information, see “—Financial Condition.”

Since our inception in 2005, we have devoted most of our cash resources to manufacturing, research and development, defense of intellectual property and selling, general and administrative activities related to the commercialization of isobutanol, as well as related products from renewable feedstocks. We have incurred losses since inception and expect to incur losses through at least the remainder of 2018 and likely beyond. To date, we have financed our operations primarily with proceeds from multiple sales of equity and debt securities, borrowings under debt facilities and product sales.

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The continued operation of our business, including the Luverne Facility Expansion, is dependent upon raising additional capital through future public and private equity offerings, debt financings or through other alternative financing arrangements. In addition, successful completion of our research and development programs and the attainment of profitable operations are dependent upon future events, including access to sufficient capital, repayment of our current debt, completion of our development activities resulting in sales of isobutanol or isobutanol-derived products and/or technology, achieving market acceptance and demand for our products and services and attracting and retaining qualified personnel. Such additional capital may not be available to us on acceptable terms or at all.

As of June 30, 2018, we had an accumulated deficit of $415.3 million with cash and cash equivalents totaling $27.0 million.

The following table sets forth the major sources and uses of cash for each of the periods set forth below (in thousands):

	Six Months Ended June 30,
	2018			2017
Net cash used in operating activities	$	(7,805	)	$	(13,384	)
Net cash used in investing activities	$	(97	)	$	(1,315	)
Net cash provided by financing activities	$	23,379		$	503

Operating Activities

Our primary uses of cash from operating activities are personnel-related expenses, research and development-related expenses, which include costs incurred under development agreements; costs and expenses for the production of isobutanol, ethanol and related products; logistics costs; costs associated with further processing of isobutanol and costs associated with the operation of the South Hampton Facility and debt service payments.

During the six months ended June 30, 2018, we used $7.8 million in cash from operating activities primarily resulting from a net loss of $14.0 million, a $1.0 million increase in working capital, and approximately $7.2 million in non-cash operating activities.

Investing Activities

During the six months ended June 30, 2018, we used $0.1 million in cash from investing activities primarily related to capital expenditures at our Luverne Facility.

Financing Activities

During the six months ended June 30, 2018, we raised approximately $23.4 million from our financing activities, primarily from the $22.4 million net proceeds from our “at-the-market” offering program, $1.3 million raised from the exercise of our Series A and Series K Warrants, while offset by approximately $0.3 million in offering costs related to the at-the-market offering program..

At-the-Market Offering Program. In February 2018, we commenced an at-the-market offering program, which initially allowed us to sell and issue up to $5.0 million of shares of our common stock. During the three months ended June 30, 2018, we subsequently amended the at-the-market offering program and increased the available capacity by approximately $84.9 million.

During the six months ended June 30, 2018, we issued 6,286,617 shares of common stock (after giving effect to the one-for-twenty reverse stock split effected on June 1, 2018) under the at-the-market offering program for gross proceeds of $37.4 million, of which $14.5 million was not received until July 3, 2018. We paid commissions to our sales agent of approximately $0.9 million and incurred other offering related expenses of $0.4 million during the six months ended June 30, 2018.

During the three months ended June 30, 2018, we issued 6,281,409 shares of common stock (after giving effect to the one-for-twenty reverse stock split) under the at-the-market offering program for  gross proceeds of $37.4 million, of which $14.5 million was not received until July 3, 2018. We paid commissions to our sales agent of approximately $0.9 million and incurred other offering related expenses of approximately $0.2 million during the three months ended June 30, 2018.

We sold an additional 95,000 shares of common stock, for gross proceeds of $0.4 million after June 30, 2018. The Company has remaining capacity to issue up to approximately $52.1 million of additional shares of common stock under the at-the-market offering program. Net proceeds are intended to be used to fund working capital and for other general corporate purposes, which may include repayment of outstanding indebtedness.

2020 Notes

On April 19, 2017, we entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) with WB Gevo, LTD, and Whitebox Advisors LLC, in its capacity as representative of the holder (“Whitebox”). Pursuant to the terms of the Purchase Agreement, the holder, subject to certain conditions, including approval of the transaction by our stockholders (which was received on June 15, 2017), agreed to exchange all of the outstanding principal amount of the 2017 Notes for an equal principal amount of our newly created 2020 Notes, plus an amount in cash equal to the accrued and unpaid interest (other than interest paid in kind) on the 2017 Notes (the “Exchange”). On June 20, 2017, we completed the Exchange, terminated the 2017 Notes Indenture and cancelled the 2017 Notes.

As noted above, in June 2018, the holders of our 2020 Notes converted an aggregate of approximately $3.2 million of outstanding principal and $0.7 million in "make-whole" interest in exchange for an aggregate of 260,793 shares of our common stock. As of June 30, 2018 and December 31, 2017, the outstanding principal on the 2020 Notes was $13.6 million and $16.7 million, including paid-in-kind interest, respectively.

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The 2020 Notes will mature on March 15, 2020. The 2020 Notes bear interest at a rate equal to 12% per annum (with 2% potentially payable as PIK Interest (as defined and described below) at our option), payable on March 31, June 30, September 30, and December 31 of each year. Under certain circumstances, we have the option to pay a portion of the interest due on the 2020 Notes by either (a) increasing the principal amount of the 2020 Notes by the amount of interest then due or (b) issuing additional 2020 Notes with a principal amount equal to the amount of interest then due (interest paid in the manner set forth in (a) or (b) being referred to as “PIK Interest”).

The 2020 Notes are convertible into shares of our common stock, subject to certain terms and conditions. The current conversion price of the 2020 Notes is equal to $14.72 per share of common stock, or 0.06795 shares of common stock per $1 principal amount of 2020 Notes.

See Note 7, Debt, to our consolidated financial statements included herein for further discussion of the 2020 Notes.

Critical Accounting Policies and Estimates

Except for the adoption of ASC 606 “Revenues from Contracts with Customers” (see Note 3 for the updated revenue recognition policy in accordance with ASU 2014-09), there have been no significant changes to our critical accounting policies since December 31, 2017. However, see Note 1, Nature of Business, Financial Condition and Basis of Presentation, to our consolidated financial statements included herein for a discussion of recently issued accounting pronouncements and their impact or future potential impact on our financial results, if determinable. For a description of critical accounting policies that affect our significant judgments and estimates used in the preparation of our consolidated financial statements, refer to our Annual Report.

Contractual Obligations and Commitments

The following summarizes the future commitments arising from our contractual obligations at June 30, 2018 (in thousands).

	Less than 1 year		1 - 3 years		4 - 5 years		5+ Years		Total
Principal debt payments (1)	$	-	$	14,112	$	-	$	-	$	14,112
Interest payments on debt (2)		1,374		994		-		-		2,368
Operating leases (3)		1,461		859		1		-		2,321
Insurance, maintenance and other		118		196		208		-		522
Total	$	2,953	$	16,161	$	209		-	$	19,323

(1) Represents cash principal payments due to the holders of the 2020 Notes.

(2) Represents interest payments due to the holders of the 2020 Notes.

(3) Represents commitments for operating leases related to our leased facility in Englewood, Colorado and our lease for rail cars in Luverne, Minnesota for ethanol and isobutanol shipments.

The table above reflects only payment obligations that are fixed and determinable as of June 30, 2018.

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Off-Balance Sheet Arrangements

As of June 30, 2018, we did not have any material off-balance sheet arrangements, except for operating lease obligations disclosed in our commitment and contingencies table above.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There was no material change in our market risk exposure during the three and six months ended June 30, 2018. For a discussion of our market risk associated with commodity prices, equity prices and interest rates, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required financial disclosures.

Management, including the participation of our Chief Executive Officer and our Principal Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2018. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable but not absolute assurance that the objectives of the disclosure controls and procedures are met. The design of any disclosure control and procedure also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we have been and may again become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any litigation that we believe to be material and we are not aware of any pending or threatened litigation against us that we believe could have a material adverse effect on our business, operating results, financial condition or cash flows.

Item 1A. Risk Factors.

You should carefully consider the risk factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report and the risk factors set forth below, which could materially affect our business, financial condition, cash flows or future results. Except as set forth below, there have been no material changes in our risk factors included in our Annual Report. The risk factors described herein and in our Annual Report are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

We have a history of net losses, and we may not achieve or maintain profitability.

We incurred net losses of $14.0 million and $16.1 million during the six months ended June 30, 2018 and 2017, respectively, and $24.6 million, $37.2 million, and $36.2 million during the years ended December 31, 2017, 2016 and 2015, respectively. As of June 30, 2018 and December 31, 2017, we had an accumulated deficit of $415.3 million and $401.4 million, respectively. We expect to incur losses and negative cash flows from operating activities for the foreseeable future. We currently derive revenue primarily from the sale of ethanol, isobutanol and related products at the Luverne Facility, although over certain periods of time, we may and have operated the plant for the sole production of ethanol and related products to maximize cash flows.

Additionally, we have generated limited revenue from the sale of products such as ATJ, isooctane and isooctene produced from isobutanol that has been used for commercial flights with Alaska Airlines, jet engine qualification and flight demonstration by the U.S. Air Force and other branches of the U.S. military, as well as specialty gasoline applications such as racing fuel. We have also generated revenue through grants and cooperative agreements. If we are unable to obtain new grants, cooperative agreements or product supply contracts, our revenues could be adversely affected.

Furthermore, we expect to spend significant amounts on the further development and commercial implementation of our technology. Our technology is designed to permit the Retrofit of existing ethanol production facilities. A “Retrofit” means either (i) modifying an existing ethanol production facility whereby equipment is added to the facility and the existing fermenters are used to produce isobutanol rather than ethanol, or (ii) modifying an existing ethanol facility to add fermenters and other equipment such that the facility is capable of producing both ethanol and isobutanol simultaneously “side by side.”

We also expect to spend significant amounts acquiring and deploying additional equipment to attain final product specifications that may be required by future customers, on marketing, general and administrative expenses associated with our planned growth, on management of operations as a public company, and on debt service obligations. In addition, the cost of preparing, filing, prosecuting, maintaining and enforcing patent, trademark and other intellectual property rights and defending ourselves against claims by others that we may be violating their intellectual property rights may be significant.

In particular, over time, costs related to defending the validity of our issued patents and challenging the validity of the patents of others at the U.S. Patent and Trademark Office (“USPTO”) may be significant. As a result, even if our revenues increase substantially, we expect that our expenses will exceed revenues for the foreseeable future. We do not expect to achieve profitability during the foreseeable future, and may never achieve it. If we fail to achieve profitability, or if the time required to achieve profitability is longer than we anticipate, we may not be able to continue our business. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis.

We will require substantial additional financing to achieve our goals, and a failure to obtain this capital when needed or on acceptable terms could force us to delay, limit, reduce or terminate our development and commercialization efforts.

Significant portions of our resources have been dedicated to research and development, as well as demonstrating the effectiveness of our technology through the Retrofit of the Luverne Facility. We believe that we will continue to expend substantial resources for the foreseeable future on further developing our technologies, developing future markets for our products, and constructing facilities necessary for the production of our products on a commercial scale. These expenditures may include costs associated with research and development, accessing existing ethanol plants, Retrofitting or otherwise modifying the plants to produce our products, obtaining government and regulatory approvals, acquiring or constructing storage facilities and negotiating supply agreements for the products we produce. In addition, other unanticipated costs may arise. Because the costs of developing our technology at a commercial scale are highly uncertain, we cannot reasonably estimate the amounts necessary to successfully commercialize our production.

To date, we have funded our operations primarily through equity offerings, issuances of debt, borrowing under our secured debt financing arrangements and revenues earned primarily from the sale of ethanol. Based on our current plans and expectations, we will require additional funding to achieve our goals. In addition, the cost of preparing, filing, prosecuting, maintaining and enforcing patent, trademark and other intellectual property rights and defending against claims by others that we may be violating their intellectual property rights may be significant. Moreover, our plans and expectations may change as a result of factors currently unknown to us, and we may need additional funds sooner than planned and may seek to raise additional funds through public or private debt or equity financings in the near future. We may also choose to seek additional capital sooner than required due to favorable market conditions or strategic considerations.

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Our future capital requirements will depend on many factors, including:

● the timing of and costs of adding unit operations to achieve low-carbon ethanol;

● the timing of, and costs involved in building out a full scale isobutanol and hydrocarbons plant;

● the timing of, and costs involved in obtaining permits;

● the ability for us to deploy strains of yeast with improved performance that help to lower capital cost;

● the costs involved in acquiring and deploying additional equipment to attain final product specifications including at the Luverne Facility, that may be required by future customers;

● the costs involved in increasing production capacity of our products, including at the Luverne Facility;

● our ability to negotiate agreements supplying suitable biomass to our plants, and the timing and terms of those agreements;

● the timing of, and the costs involved in developing adequate storage facilities for the products we produce;

● our ability to gain market acceptance for isobutanol as a specialty chemical, gasoline blendstock and as a raw material for the production of hydrocarbons;

● our ability to negotiate supply agreements for the products we produce, and the timing and terms of those agreements, including terms related to sales price;

● our ability to negotiate sales of our products and the timing and terms of those sales, including terms related to sales price;

● our ability to sell the iDGs left as a co-product of fermenting isobutanol from corn as animal feedstock;

● our ability to establish and maintain strategic partnerships, licensing or other arrangements and the timing and terms of those arrangements; and

● the cost of preparing, filing, prosecuting, maintaining, defending and enforcing patent, trademark and other intellectual property claims, including litigation costs and the outcome of such litigation.

Additional funds may not be available when we need them, on terms that are acceptable to us, or at all. In addition, our ability to raise additional funds will be subject to certain limitations in the agreements governing our indebtedness, including the 2020 Notes. If needed funds are not available to us on a timely basis, we may be required to delay, limit, reduce or terminate:

● our research and development activities;

● our plans to build out additional isobutanol and hydrocarbon capacity;

● our plans to operate our ethanol plant;

● our production of products at the Luverne Facility;

● our production of hydrocarbons at the demonstration plant located at the South Hampton facility near Houston, Texas, or any other future facilities;

● our efforts to prepare, file, prosecute, maintain and enforce patent, trademark and other intellectual property rights and defend against claims by others that we may be violating their intellectual property rights; and/or

● our activities in developing storage capacity and negotiating supply agreements that may be necessary for the commercialization of our products.

We may be unable to successfully negotiate final, binding terms related to our current non-binding isobutanol, ATJ and other hydrocarbon supply and distribution agreements, which could harm our commercial prospects.

From time-to-time, we agree to preliminary terms regarding supplying isobutanol or the products derived from it to various companies for their use or further distribution. We may be unable to negotiate final terms with these or other companies in a timely manner, or at all, and there is no guarantee that the terms of any final agreement will be the same or similar to those currently contemplated in our preliminary agreements. Final terms may include less favorable pricing structures or volume commitments, more expensive delivery or purity requirements, reduced contract durations and other adverse changes. Delays in negotiating final contracts could slow our initial isobutanol commercialization, and failure to agree to definitive terms for sales of sufficient volumes of isobutanol could prevent us from growing our business. To the extent that terms in our initial supply and distribution contracts may influence negotiations regarding future contracts, the failure to negotiate favorable final terms related to our current preliminary agreements could have an especially negative impact on our growth and profitability. Additionally, we have not demonstrated that we can meet the production levels contemplated in our current non-binding supply agreements. If our production scale-up proceeds more slowly than we expect, or if we encounter difficulties in successfully completing the planned expansion of the Luverne Facility, potential customers, including those with whom we have current letters of intent, may be less willing to negotiate definitive supply agreements, or demand terms less favorable to us, and our performance may suffer.

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The Luverne Facility is our first commercial ethanol and isobutanol production facility, and, as such, we may be unable to produce planned quantities of ethanol and isobutanol and any such production may be costlier than we anticipate.

Since commencing initial startup operations for the production of isobutanol at the Luverne Facility in May 2012, we have encountered some production challenges, including contamination issues, which have resulted in lower than planned isobutanol production. While we have resumed production of isobutanol at the Luverne Facility, this is our first commercial isobutanol production facility and we may encounter further production challenges, including, but not limited to, being unable to manage plant contamination, and we may add additional processing steps or incur additional capital expenditures to achieve our target customers’ product specifications and/or to increase production levels at the facility.

The Luverne Facility has the capability, with certain capital improvements, to produce low-carbon ethanol side-by-side with low-carbon isobutanol, in addition to renewable jet fuel and isooctane and other related products that can be made from isobutanol. Furthermore, by investing additional capital at the Luverne Facility, we believe that we can lower the carbon intensity (i.e. lower the carbon dioxide emissions from the plant) creating additional profit margin opportunities in low-carbon markets for ethanol, as well as for our isobutanol and its derivative hydrocarbon products. However, we cannot assure you that we will be able to secure adequate financing to make such improvements or that our capital investments at the Luverne Facility will successfully lower the carbon intensity and/or create additional profit margin opportunities.

In addition, the Luverne Facility was constructed in 1998. As an older production facility, the Luverne Facility may be more susceptible to maintenance issues that result in production challenges than newer production facilities. Any such production challenges may delay our ramp up of production capacity, prevent us from producing significant quantities of isobutanol, significantly increase our cost to produce isobutanol, or cause us to switch to producing ethanol or produce both products simultaneously, which could have a material adverse effect on our business, financial condition and results of operations.

Fluctuations in the price and availability of natural gas may harm our performance.

The Luverne Facility uses significant amounts of natural gas to produce ethanol. Accordingly, our business is dependent upon natural gas supplied by third parties. The prices for and availability of natural gas are subject to volatile market conditions. These market conditions are affected by factors beyond our control, such as weather conditions, overall economic conditions and governmental regulations. Should the price of natural gas increase, our performance could suffer. Likewise, disruptions in the supply of natural gas could have a material impact on our business and results of operations.

We may not be successful in the development of individual steps in the production of commercial quantities of low-carbon ethanol or isobutanol from plant feedstocks in a timely or economic manner, or at all.

As of the date of this Report, we have not produced any low-carbon ethanol and we have produced only limited quantities of isobutanol at commercial scale. We may not be successful producing low-carbon ethanol and we may not be successful in increasing our production of isobutanol from these limited production levels.

Our future success depends on our ability to produce commercial quantities of low-carbon ethanol and isobutanol in a timely and economic manner. While we have produced isobutanol using our biocatalysts at the Luverne Facility in commercial-scale fermenters, our biocatalysts have not yet produced isobutanol at fully optimized levels in fermenters typical of full scale operation at a commercial facility. The risk of contamination and other problems rises as we increase the scale of our isobutanol production. If we are unable to successfully manage these risks, we may encounter difficulties in achieving our target isobutanol production yield, rate, concentration or purity at a commercial scale, which could delay or increase the costs involved in commercializing our isobutanol production.

The technological and logistical challenges associated with producing, marketing, selling and distributing low-carbon ethanol and isobutanol are extraordinary, and we may not be able to resolve any difficulties that arise in a timely or cost-effective manner, or at all.

Prior to our purchase of the Luverne Facility, we had never operated or built (through Retrofit or otherwise) a commercial ethanol or isobutanol facility. We believe that we understand the engineering and process characteristics necessary to successfully build the additional facilities that we are contemplating and to scale up to larger facilities. We expect to incur additional capital expenditures to produce low-carbon ethanol and increase low-carbon ethanol and isobutanol production levels at the Luverne Facility. Our assumptions, however, may prove to be incorrect. Accordingly, we cannot be certain that we can consistently produce low-carbon ethanol and isobutanol in an economical manner in commercial quantities. If our costs to build a commercial facility to produce low-carbon ethanol and/or to increase isobutanol production are significantly higher than we expect or if we fail to consistently produce low-carbon ethanol and/or isobutanol economically on a commercial scale or in commercial volumes, our commercialization

The technological and logistical challenges associated with producing, marketing, selling and distributing low-carbon ethanol and isobutanol are extraordinary, and we may not be able to resolve any difficulties that arise in a timely or cost-effective manner, or at all.

Prior to our purchase of the Luverne Facility, we had never operated or built (through Retrofit or otherwise) a commercial ethanol or isobutanol facility. We believe that we understand the engineering and process characteristics necessary to successfully build the additional facilities that we are contemplating and to scale up to larger facilities. We expect to incur additional capital expenditures to produce low-carbon ethanol and increase low-carbon ethanol and isobutanol production levels at the Luverne Facility. Our assumptions, however, may prove to be incorrect. Accordingly, we cannot be certain that we can consistently produce low-carbon ethanol and isobutanol in an economical manner in commercial quantities. If our costs to build a commercial facility to produce low-carbon ethanol and/or to increase isobutanol production are significantly higher than we expect or if we fail to consistently produce low-carbon ethanol and/or isobutanol economically on a commercial scale or in commercial volumes, our commercialization of low-carbon ethanol, isobutanol and our business, financial condition and results of operations will be materially adversely affected.

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Our facilities and processes may fail to produce products at the volumes, rates and costs we expect.

Some or all of our future production facilities may be in locations distant from corn or other feedstock sources, which could increase our feedstock costs or prevent us from acquiring sufficient feedstock volumes for commercial production. General market conditions might also cause increases in feedstock prices, which could likewise increase our production costs.

Even if we secure access to sufficient volumes of feedstock, our production facilities may fail to perform as expected. The equipment and subsystems that we install in our production facilities may never operate as planned. Our systems may prove incompatible with the original facility, or require additional modification after installation. Unexpected problems may force us to cease or delay production and the time and costs involved with such delays may prove prohibitive. Any or all of these risks could prevent us from achieving the production throughput and yields necessary to achieve our target annualized production run rates and/or to meet the volume demands or minimum requirements of our customers, including pursuant to definitive supply or distribution agreements that we may enter into, which may subject us to monetary damages. Failure to achieve these rates or meet these minimum requirements, or achieving them only after significant additional expenditures, could substantially harm our commercial performance.

We lack significant experience operating commercial-scale ethanol and isobutanol facilities, and may encounter substantial difficulties operating commercial plants or expanding our business.

We have very limited experience operating commercial-scale ethanol and isobutanol facilities concurrently. Accordingly, we may encounter significant difficulties operating at a commercial scale once both production facilities are built out in a side-by-side operation. We believe that our future facilities will, like the Luverne Facility, be able to continue producing ethanol during much of the Retrofit process. We will need to successfully administer and manage this production. Although the employees at the Luverne Facility are experienced in the operation of ethanol facilities, and our future development partners or the entities that we acquire may likewise have such experience, we may be unable to manage ethanol-producing operations, especially given the possible complications associated with a simultaneous Retrofit. Once we complete a commercial Retrofit, operational difficulties may increase, because neither we nor anyone else has significant experience operating a pure isobutanol fermentation facility at a commercial scale. The skills and knowledge gained in operating commercial ethanol facilities or small-scale isobutanol plants may prove insufficient for successful operation of a large-scale isobutanol facility, and we may be required to expend significant time and money to develop our capabilities in isobutanol facility operation. We may also need to hire new employees or contract with third parties to help manage our operations, and our performance will suffer if we are unable to hire qualified parties or if they perform poorly.

We may face additional operational difficulties as we further expand our production capacity. Integrating new facilities with our existing operations may prove difficult. Rapid growth, resulting from our operation of, or other involvement with, isobutanol facilities or otherwise, may impose a significant burden on our administrative and operational resources. To effectively manage our growth and execute our expansion plans, we will need to expand our administrative and operational resources substantially and attract, train, manage and retain qualified management, technicians and other personnel. We may be unable to do so. Failure to meet the operational challenges of developing and managing increased production of isobutanol and/or ethanol, or failure to otherwise manage our growth, may have a material adverse effect on our business, financial condition and results of operations.

We may have difficulty adapting our technology to commercial-scale fermentation, which could delay or prevent our commercialization of isobutanol.

While we have demonstrated the ability to produce isobutanol under the demonstration plant operating conditions and under commercial scale operating conditions at the Luverne Facility, and we have succeeded in reaching our commercial fermentation performance targets for isobutanol concentration, fermentation productivity and isobutanol yield in laboratory tests, we have not yet reached all performance targets in a commercial plant environment at the larger scale we contemplate constructing involving multiple fermenters. Ultimately, our yeast biocatalyst may not be able to meet the commercial performance targets in a timely manner, or ever. In addition, the risk of contamination and other problems may increase as we seek to ramp up our production capacity, which could negatively impact our cost of production or require additional capital expenditures to solve for these problems. If we encounter difficulties in optimizing our production, our commercialization of isobutanol and our business, financial condition and results of operations will be materially adversely affected.

We may have difficulties gaining market acceptance and successfully marketing our ethanol, isobutanol and other hydrocarbon products to customers, including chemical producers, fuel distributors and refiners.

A key component of our business strategy to become profitable is to invest capital to upgrade the Luverne Facility to primarily produce low-carbon ethanol for the California market, and a key component of our business strategy is to market our isobutanol and other hydrocarbon products to chemical producers, fuels distributors, refiners and other fuel and chemical industry market participants. We have no experience marketing ethanol to the California market or isobutanol on a commercial scale and we may fail to successfully negotiate marketing agreements in a timely manner or on favorable terms. If we fail to successfully market our ethanol to the California market or isobutanol to refiners, fuels distributors, chemical producers and others, our business, financial condition and results of operations will be materially adversely affected.

We also intend to market our isobutanol to chemical producers for use in making various chemicals such as isobutylene, a type of butene that can be produced through the dehydration of isobutanol. Although a significant market currently exists for isobutylene produced from petroleum, which is widely used in the production of plastics, specialty chemicals, alkylate for gasoline blending and high octane aviation gasoline, no one has successfully created isobutylene on a commercial scale from bio-isobutanol. Therefore, to gain market acceptance and successfully market our isobutanol to chemical producers, we must show that our isobutanol can be converted into isobutylene at a commercial scale. As no company currently dehydrates commercial volumes of isobutanol into isobutylene, we must demonstrate the large-scale feasibility of the process and potentially reach agreements with companies that are willing to invest in the necessary dehydration infrastructure. Failure to reach favorable agreements with these companies, or the inability of their plants to convert isobutanol into isobutylene at sufficient scale, may slow our development in the chemicals market and could significantly affect our profitability.

Obtaining market acceptance in the chemicals industry is complicated by the fact that many potential chemicals industry customers have invested substantial amounts of time and money in developing petroleum-based production channels. These potential customers generally have well-developed manufacturing processes and arrangements with suppliers of chemical components, and may display substantial resistance to changing these processes. Pre-existing contractual commitments, unwillingness to invest in new infrastructure, distrust of new production methods and lengthy relationships with current suppliers may all slow market acceptance of isobutanol.

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A very limited market currently exists for isobutanol as a fuel or as a gasoline blendstock. Therefore, to gain market acceptance and successfully market our isobutanol to fuels distributors and refiners, we must effectively demonstrate the commercial advantages of using isobutanol over other biofuels and blendstocks, as well as our ability to produce isobutanol reliably on a commercial scale at a sufficiently low cost. We must show that isobutanol is compatible with existing infrastructure and does not damage pipes, engines, storage facilities or pumps. We must also overcome marketing and lobbying efforts by producers of other biofuels and blendstocks, including ethanol, many of whom may have greater resources than we do. If the markets for isobutanol as a fuel or as a gasoline blendstock do not develop as we currently anticipate, or if we are unable to penetrate these markets successfully, our revenue and growth rate could be materially and adversely affected.

We believe that consumer demand for environmentally sensitive products will drive demand among large brand owners for low-carbon ethanol, isobutanol and renewable hydrocarbon sources. One of our marketing strategies is to leverage this demand to obtain commitments from large brand owners to purchase our products. We believe these commitments will, in turn, promote chemicals industry demand for our isobutanol and hydrocarbon products. If consumer demand for environmentally sensitive products fails to develop at sufficient scale or if such demand fails to drive large brand owners to seek sources of renewable isobutanol or hydrocarbons, our revenue and growth rate could be materially and adversely affected.

We may be reliant on Butamax to develop certain markets for isobutanol.

As part of the License Agreement entered into with Butamax, it was agreed that Butamax would take the lead in developing the markets for on-road gasoline blendstocks. This would entail progressing the required approvals for these markets, as well as managing the marketing and distribution of our isobutanol and our potential licensee’s isobutanol in these markets beyond certain minimum volumes. On June 12, 2018, the EPA announced that it approved the registration of isobutanol as a fuel additive for blending into gasoline at levels up to 16 volume percent for on-road automotive use. If Butamax is unable to maintain or obtain the necessary approvals to sell isobutanol into the on-road gasoline blendstock markets, or if it is unsuccessful in building market demand for isobutanol as an on-road gasoline blendstock, our revenue and growth rate could be materially and adversely affected.

We may not be successful in the development of individual steps in the production of commercial quantities of low-carbon ethanol or isobutanol from plant feedstocks in a timely or economic manner, or at all.

As of the date of this prospectus, we have not produced any low-carbon ethanol and we have produced only limited quantities of isobutanol at commercial scale. We may not be successful producing low-carbon ethanol and we may not be successful in increasing our production of isobutanol from these limited production levels.

Our future success depends on our ability to produce commercial quantities of low-carbon ethanol and isobutanol in a timely and economic manner. While we have produced isobutanol using our biocatalysts at the Luverne Facility in commercial-scale fermenters, our biocatalysts have not yet produced isobutanol at fully optimized levels in fermenters typical of full scale operation at a commercial facility. The risk of contamination and other problems rises as we increase the scale of our isobutanol production. If we are unable to successfully manage these risks, we may encounter difficulties in achieving our target isobutanol production yield, rate, concentration or purity at a commercial scale, which could delay or increase the costs involved in commercializing our isobutanol production.

The technological and logistical challenges associated with producing, marketing, selling and distributing low-carbon ethanol and isobutanol are extraordinary, and we may not be able to resolve any difficulties that arise in a timely or cost-effective manner, or at all.

Prior to our purchase of the Luverne Facility, we had never operated or built (through Retrofit or otherwise) a commercial ethanol or isobutanol facility. We believe that we understand the engineering and process characteristics necessary to successfully build the additional facilities that we are contemplating and to scale up to larger facilities. We expect to incur additional capital expenditures to produce low-carbon ethanol and increase low-carbon ethanol and isobutanol production levels at the Luverne Facility. Our assumptions, however, may prove to be incorrect. Accordingly, we cannot be certain that we can consistently produce low-carbon ethanol and isobutanol in an economical manner in commercial quantities. If our costs to build a commercial facility to produce low-carbon ethanol and/or to increase isobutanol production are significantly higher than we expect or if we fail to consistently produce low-carbon ethanol and/or isobutanol economically on a commercial scale or in commercial volumes, our commercialization of low-carbon ethanol, isobutanol and our business, financial condition and results of operations will be materially adversely affected.

Even if we are successful in consistently producing low-carbon ethanol, isobutanol and our hydrocarbon products on a commercial scale, we may not be successful in negotiating sufficient supply agreements for our production.

We expect that many of our customers will be large companies with extensive experience operating in the fuels or chemicals markets. As an early stage company, we lack commercial operating experience, and may face difficulties in developing marketing expertise in these fields. Our business model relies upon our ability to successfully negotiate and structure long-term supply agreements for the isobutanol and other products we produce. Certain agreements with existing and potential customers may initially only provide for the purchase of limited quantities from us. For example, our agreement with Alaska Airlines entered into in May 2015 provides for the initial purchase of a limited quantity of our ATJ fuel, and does not obligate Alaska Airlines to purchase any additional quantity of jet fuel in addition to the amount to be initially purchased. Our ability to increase our sales will depend in large part upon our ability to expand these existing customer relationships into long-term supply agreements. Maintaining and expanding our existing relationships and establishing new ones can require substantial investment without any assurance from customers that they will place significant orders. In addition, many of our potential customers may be more experienced in these matters than we are, and we may fail to successfully negotiate these agreements in a timely manner or on favorable terms which, in turn, may force us to slow our production, dedicate additional resources to increasing our storage capacity and/or dedicate resources to sales in spot markets. Furthermore, should we become more dependent on spot market sales, our profitability will become increasingly vulnerable to short-term fluctuations in the price and demand for petroleum-based fuels and competing substitutes.

A sustained low oil price environment may negatively impact the price we receive for the sale of our ethanol, isobutanol and hydrocarbon products.

Many of our end-products such as isobutanol, ethanol and hydrocarbon products have some level of price correlation with crude oil. If crude oil prices were to remain at low levels over a sustained period of time, this may have an impact on the pricing that we are able to achieve in the marketplace for many of those end-products. This may cause us to operate at a lower, or negative, operating margins and, as a result, our management may decide to reduce or suspend production of ethanol and/or isobutanol at the Luverne Facility. Unfavorable operating margins may also impact our ability to enter into commercial agreements with development partners or licensees.

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If we lose key personnel, including key management personnel, or are unable to attract and retain additional personnel, it could delay our product development programs and harm our research and development efforts, make it more difficult to pursue partnerships or develop our own products or otherwise have a material adverse effect on our business.

Our business is complex and we intend to target a variety of markets. Therefore, it is critical that our management team and employee workforce are knowledgeable in the areas in which we operate. The departure, illness or absence of any key members of our management, including our named executive officers, or the failure to attract or retain other key employees who possess the requisite expertise for the conduct of our business, could prevent us from developing and commercializing our products for our target markets and entering into partnerships or licensing arrangements to execute our business strategy. In addition, the loss of any key scientific staff, or the failure to attract or retain other key scientific employees, could prevent us from developing and commercializing our products for our target markets and entering into partnerships or licensing arrangements to execute our business strategy. We may not be able to attract or retain qualified employees in the future due to the intense competition for qualified personnel among biotechnology and other technology-based businesses, particularly in the advanced biofuels area, or due to the limited availability of personnel with the qualifications or experience necessary for our renewable chemicals and advanced biofuels business. If we are not able to attract and retain the necessary personnel to accomplish our business objectives, we may experience staffing constraints that will adversely affect our ability to meet the demands of our partners and customers in a timely fashion or to support our internal research and development programs. In particular, our product and process development programs are dependent on our ability to attract and retain highly skilled scientists. Competition for experienced scientists and other technical personnel from numerous companies and academic and other research institutions may limit our ability to do so on acceptable terms. All of our employees are at-will employees, meaning that either the employee or we may terminate their employment at any time.

Our planned activities will require additional expertise in specific industries and areas applicable to the products and processes developed through our technology platform or acquired through strategic or other transactions, especially in the end markets that we seek to penetrate. These activities will require the addition of new personnel, and the development of additional expertise by existing personnel. The inability to attract personnel with appropriate skills or to develop the necessary expertise could impair our ability to grow our business.

Our government grants are subject to uncertainty, which could harm our business and results of operations.

We have received various government grants, including a cooperative agreement, to complement and enhance our own resources. We may seek to obtain government grants and subsidies in the future to offset all or a portion of our operating costs and the costs of our research and development activities. We cannot be certain that we will be able to secure any such government grants or subsidies. Any new grants that we may obtain may be terminated, modified or recovered by the granting governmental body under certain conditions.

We may also be subject to audits by government agencies as part of routine audits of our activities funded by our government grants. As part of an audit, these agencies may review our performance, cost structures and compliance with applicable laws, regulations and standards. Funds available under grants must be applied by us toward the research and development programs specified by the granting agencies, rather than for all of our programs generally. If any of our costs are found to be allocated improperly, the costs may not be reimbursed and any costs already reimbursed may have to be refunded. Accordingly, an audit could result in an adjustment to our revenues and results of operations.

As isobutanol has not previously been used as a commercial fuel in significant amounts, its use subjects us to product liability risks.

Isobutanol has not been used as a commercial fuel in large quantities or for a long period of time. Research regarding isobutanol and its distribution infrastructure is ongoing. Although isobutanol has been tested on some engines, there is a risk that it may damage engines or otherwise fail to perform as expected. If isobutanol degrades the performance or reduces the lifecycle of engines, or causes them to fail to meet emissions standards, market acceptance could be slowed or stopped, and we could be subject to product liability claims. A significant product liability lawsuit could substantially impair our production efforts and could have a material adverse effect on our business, reputation, financial condition and results of operations.

We may face substantial delays in obtaining regulatory approvals for use of our isobutanol and hydrocarbon products in the fuels and chemicals markets, which could substantially hinder our ability to commercialize our products.

Large-scale commercialization of our isobutanol may require approvals from state and federal agencies. Before we can sell isobutanol as a fuel or as a gasoline blendstock directly to large petroleum refiners, we must receive EPA fuel certification. On June 12, 2018, the EPA announced that it approved the registration of isobutanol as a fuel additive for blending into gasoline at levels up to 16 volume percent for on-road automotive use.  There can be no assurances that the EPA registration of isobutanol as a fuel additive for blending into gasoline at levels up to 16 volume percent will not be revoked or changed.  Nor does approval by the EPA of 16 volume percent blends mitigate other rules that may exist that have to be overcome for main market adoption (rather than a specialty market) regarding blending of isobutanol in gasoline. For example the issue of Product Transfer Documents for Blendstock for Oxygenate Blending in common blending tanks served by multiple suppliers, needing to be labeled to accept isobutanol.

Additionally, California requires that fuels meet both its fuel certification requirements and a separate state low-carbon fuel standard. Any delay in receiving approval will slow or prevent the commercialization of our low-carbon ethanol or isobutanol for fuel markets, which could have a material adverse effect on our business, financial condition and results of operations.

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With respect to the chemicals markets, we plan to focus on isobutanol production and sell to companies that can convert our isobutanol into other chemicals, such as isobutylene. However, should we later decide to produce these other chemicals ourselves, we may face similar requirements for EPA and other regulatory approvals. Approval, if ever granted, could be delayed for substantial amounts of time, which could significantly harm the development of our business and prevent the achievement of our goals.

Our isobutanol fermentation process utilizes a genetically modified organism which, when used in an industrial process, is considered a new chemical under the EPA’s Toxic Substances Control Act (“TSCA”). The TSCA requires us to comply with the EPA’s Microbial Commercial Activity Notice process to operate plants producing isobutanol using our biocatalysts. The TSCA’s new chemicals submission policies may change and additional government regulations may be enacted that could prevent or delay regulatory approval of our isobutanol production.

There are various third-party certification organizations, such as ASTM and Underwriters’ Laboratories, Inc., involved in standard-setting regarding the transportation, dispensing and use of liquid fuel in the U.S. and abroad. These organizations may change the current standards and additional requirements may be enacted that could prevent or delay approval of our products. The process of seeking required approvals and the continuing need for compliance with applicable standards may require the expenditure of substantial resources, and there is no guarantee that we will satisfy these standards in a timely manner, if ever.

In addition, to Retrofit or otherwise modify ethanol facilities and operate the Retrofitted and modified plants to produce isobutanol, we will need to obtain and comply with a number of permit requirements. As a condition to granting necessary permits, regulators may make demands that could increase our Retrofit, modification or operations costs, and permit conditions could also restrict or limit the extent of our operations, which could delay or prevent our commercial production of isobutanol. We cannot guarantee that we will be able to meet all regulatory requirements or obtain and comply with all necessary permits to complete our planned ethanol plant Retrofits, and failure to satisfy these requirements in a timely manner, or at all, could have a substantial negative effect on our performance.

 Jet fuels must meet various statutory and regulatory requirements before they may be used in commercial aviation, including regulations of the Federal Aviation Administration (“FAA”) and specifications determined by ASTM International. Currently, our renewable jet fuel meets the FAA regulations and the ASTM International specifications. However, changes to applicable regulations and specifications.in the future might have a material adverse effect on our business if such changes resulted in our renewable jet fuel not being eligible for use in commercial aviation.

Our isobutanol and hydrocarbon products may encounter physical or regulatory issues, which could limit its usefulness as a gasoline blendstock.

In the gasoline blendstock market, isobutanol can be used in conjunction with, or as a substitute for, ethanol and other widely used fuel oxygenates, and we believe our isobutanol is physically compatible with typical gasoline engines. However, there is a risk that under actual engine conditions, isobutanol will face significant limitations, making it unsuitable for use in high percentage gasoline blend.

Additionally, current regulations limit gasoline blends to low percentages of isobutanol, and also limit combination isobutanol-ethanol blends.   On June 12, 2018, the EPA announced that it approved the registration of isobutanol as a fuel additive for blending into gasoline at levels up to 16 volume percent for on-road automotive use.    There can be no assurances that the EPA registration of isobutanol as a fuel additive for blending into gasoline at levels up to 16 volume percent will not be revoked or changed.  Government agencies may maintain or even increase the restrictions on isobutanol gasoline blends. As we believe that the potential to use isobutanol in higher percentage blends than is feasible for ethanol will be an important factor in successfully marketing isobutanol to refiners, a low blend wall could significantly limit commercialization of isobutanol as a gasoline blendstock.

We may be required to obtain additional regulatory approvals for use of our iDGs as animal feed, which could delay our ability to sell iDGs increasing our net cost of production and harming our operating results.

Our Luverne Facility and many of the ethanol plants that we might Retrofit use dry-milled corn as a feedstock. We plan to sell, as animal feed, the iDGs left as a co-product of fermenting isobutanol from dry-milled corn. We believe that this will enable us to offset a significant portion of the expense of purchasing corn for fermentation. We are currently approved to sell iDGs as animal feed through the self-assessed Generally Regarded as Safe (“GRAS”) process of the U.S. Federal Drug Administration (the “FDA”) via third party scientific review. In order to improve the value of our iDGs, we are working with The Association of American Feed Control Officials (“AAFCO”) to establish a formal definition for our iDGs as well as clearance for the materials into animal feed. We believe obtaining AAFCO approval will increase the value of our iDGs by offering customers of our iDGs further assurance of the safety of our iDGs. If we make certain changes in our biocatalyst whereby we can no longer rely on our GRAS process, we would be required to obtain FDA approval for marketing our iDGs. While we believe we can rely on the GRAS process, as we update our biocatalysts to increase isobutanol production, for further customer assurance, we also intend to pursue approval upon a completed biocatalyst from the Center for Veterinary Medicine of the FDA. FDA testing and approval can take a significant amount of time, and there is no guarantee that we will ever receive such approval. While we have sold initial quantities of our iDGs TM from the Luverne Facility, if FDA or AAFCO approval is delayed or never obtained, or if we are unable to secure market acceptance for our iDGs, our net cost of production will increase, which may hurt our operating results.

44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

As disclosed on January 2, 2018, the Company's Chief Executive Officer, Mr. Patrick Gruber, volunteered and elected to reduce his 2018 base salary by 30% to $350,000. Effective August 3, 2018, the Company's Compensation Committee approved the termination of the voluntary salary reduction and Mr. Gruber's annual base was returned to $500,000. In addition, effective August 3, 2018, the Compensation Committee of the Board of Directors approved an increase in the annual base salary of the Company's Chief Accounting Officer, Bradford K. Towne, from $170,000 to $185,000.

Item 6. Exhibits.

The exhibits listed below are filed or furnished as part of this report.

Exhibit Number		Description	Previously Filed				Included Herewith
			Form	File No.	Filing Date	Exhibit
	3.1	Amended and Restated Certificate of Incorporation of Gevo, Inc.	10-K	001-35073	March 29, 2011	3.1
	3.2	Certificate of Amendment to Amended and Restated Certificate of Incorporation of Gevo, Inc.	8-K	001-35073	June 10, 2013	3.1
	3.3	Certificate of Amendment to Amended and Restated Certificate of Incorporation of Gevo, Inc.	8-K	001-35073	July 9, 2014	3.1
	3.4	Certificate of Amendment to Amended and Restated Certificate of Incorporation of Gevo, Inc.	8-K	001-35073	April 22, 2015	3.1
	3.5	Certificate of Amendment to Amended and Restated Certificate of Incorporation of Gevo, Inc.	8-K	001-35073	January 6, 2017	3.1
	3.6	Certificate of Amendment to Amended and Restated Certificate of Incorporation of Gevo, Inc.	8-K	001-35073	June 4, 2018	3.1
	3.7	Amended and Restated Bylaws of Gevo, Inc.	10-K	001-35073	March 29, 2011	3.2
	4.1	Form of the Gevo, Inc. Common Stock Certificate.	S-1	333-168792	January 19, 2011	4.1
	4.2	Fifth Amended and Restated Investors’ Rights Agreement, dated March 26, 2010.	S-1	333-168792	August 12, 2010	4.2
	4.3†	Stock Issuance and Stockholder’s Rights Agreement, dated July 12, 2005, by and between Gevo, Inc. and California Institute of Technology.	S-1	333-168792	August 12, 2010	4.3

45

Exhibit Number		Description	Previously Filed				Included Herewith
			Form	File No.	Filing Date	Exhibit
	4.4	Plain English Warrant Agreement, No. 0647-W- 03, dated October 20, 2011, by and between Gevo, Inc. and TriplePoint Capital LLC.	8-K	001-35073	October 26, 2011	10.7
	4.5	First Amendment to Plain English Warrant Agreement, relating to Warrant Number 0647-W- 01, dated December 11, 2013, by and between Gevo, Inc. and TriplePoint Capital LLC.	8-K	001-35073	December 12, 2013	4.1
	4.6	Common Stock Unit Warrant Agreement, dated December 16, 2013, by and between Gevo, Inc. and the American Stock Transfer & Trust Company, LLC.	8-K	001-35073	December 16, 2013	4.1

46

Exhibit Number		Description	Previously Filed				Included Herewith
			Form	File No.	Filing Date	Exhibit
	4.7	Exchange and Purchase Agreement, dated April 19, 2017, by and among Gevo, Inc., the guarantors party thereto, the holders named in Schedule I thereto, and Whitebox Advisors LLC, in its capacity as representative of the holders.	8-K	001-35037	April 20, 2017	4.1
	4.8	Indenture, dated June 20, 2017, by and among Gevo, Inc., the guarantors party thereto, and Wilmington Savings Fund Society, FSB, as trustee and collateral trustee.	8-K	001-35037	June 20, 2017	4.1
	4.9	Registration Rights Agreement, dated June 20, 2017, by and among Gevo, Inc. and the investors named therein.	8-K	001-35037	June 20, 2017	4.2
	4.10	Common Stock Unit Warrant Agreement, dated August 5, 2014, by and between Gevo, Inc. and the American Stock Transfer & Trust Company, LLC.	8-K	001-35073	August 6, 2014	4.1
	4.11	2015 Common Stock Unit Series A Warrant Agreement, dated February 3, 2015, by and between Gevo, Inc. and the American Stock Transfer & Trust Company, LLC.	8-K	001-35073	February 4, 2015	4.1
	4.12	2015 Common Stock Unit Series C Warrant Agreement, dated May 19, 2015 by and between Gevo, Inc. and the American Stock Transfer & Trust Company LLC.	8-K	001-35073	May 20, 2015	4.1
	4.13	Form of Series D Warrant to Purchase Common Stock.	8-K	001-35037	December 15, 2015	4.1
	4.14	Form of Amendment No. 1 to Series D Warrant	8-K	001-35037	June 13, 2016	4.1

47

Exhibit Number		Description	Previously Filed				Included Herewith
			Form	File No.	Filing Date	Exhibit
	4.15	Form of Series F Warrant to Purchase Common Stock.	8-K	001-35037	April 5, 2016	4.1
	4.16	Form of Series I Warrant to Purchase Common Stock	8-K	001-35037	September 15, 2016	4.1
	4.17	Form of Series K Warrant to Purchase Common Stock	8-K	001-35037	February 22, 2017	4.1
	10.1	Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan	8-K	001-35037	May 31, 2018	10.1
	10.2	Amendment to At-The-Market Offering Agreement and Engagement Agreement, dated June 20, 2018, between Gevo, Inc. and H.C. Wainwright & Co., LLC.	8-K	001-35037	June 20, 2018	1.2
	10.3	Amendment to At-The-Market Offering Agreement, dated June 25, 2018, between Gevo, Inc. and H.C. Wainwright & Co., LLC.	8-K	001-35037	June 25, 2018	1.3
	10.4	Amendment to At-The-Market Offering Agreement and Engagement Agreement, dated June 28, 2018, between Gevo, Inc. and H.C. Wainwright & Co., LLC.	8-K	001-35037	June 28, 2018	1.4
	10.5	Second Amendment to Grain Bin Lease Agreement, dated May 1, 2018, between Agri-Energy, LLC and FCStone Merchant Services, LLC.					X
	10.6#	Form of Stock Option Award Agreement under the Amended and Restated 2010 Stock Incentive Plan.					X
	10.7#	Form of Restricted Shares Award Agreement under the Amended and Restated 2010 Stock Incentive Plan.					X
	10.8#	Form of Stock Appreciation Rights Award Agreement under the Amended and Restated 2010 Stock Incentive Plan.					X
	31.1	Section 302 Certification of the Principal Executive Officer.					X
	31.2	Section 302 Certification of the Principal Financial Officer.					X
	32.1	Section 906 Certification of the Principal Executive Officer and Principal Financial Officer.**					X
	101	Financial statements from the Quarterly Report on Form 10-Q of Gevo, Inc. for the quarterly period ended June 30, 2018, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to the Consolidated Financial Statements.					X

† Certain portions have been omitted pursuant to a confidential treatment request. Omitted information has been filed separately with the SEC.

** Furnished herewith

# Indicates a management contract or compensatory plan or arrangement.

48

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Gevo, Inc. (REGISTRANT)
By:	/s/ Bradford K. Towne
	Bradford K. Towne Chief Accounting Officer (Principal Financial and Accounting Officer)

Date: August 8, 2018

49

EX-10.5

Exhibit 10.5

SECOND

AMENDMENT

dated as of May 1, 2018

to the

GRAIN BIN LEASE AGREEMENT

dated as of June 1, 2015

between

FCStone Merchant Services, LLC ("FMS")

and

Agri-Energy, LLC ("Agri")

The parties have previously entered into that certain Grain Bin Lease Agreement dated as of June 1, 2015 (the "Lease"), which along with any amendments, schedules, annexes, exhibits and Confirmation that thereto constitute (the "Agreement"). The parties have now agreed to amend the Agreement by the terms of this Amendment (this "Amendment").

A. AMENDMENT TO LEASE

1) 12. Assignment, shall be amended as follows:

a. "(iii) this Agreement may be assigned without consent for the benefit of FCStone's creditors. In such event, FCStone shall give notice as soon as practical to the Company;"

b. Subsection "(iii)" shall hereby be renumbered "(iv)."

B. REPRESENTATIONS

Each party represents to the other party in respect of the Agreement, that all representations made by it pursuant to the Agreement are true and accurate as of the date of this Amendment.

C. MISCELLANEOUS

1) Entire Agreement; Restatement

(i)     This Amendment constitutes the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communication and prior writings (except as otherwise provided herein) with respect thereto.

(ii)     Except for any amendment to the Agreement made pursuant to this Amendment, all terms and conditions of the Agreement will continue in full force and effect in accordance with its provisions on the date of this Amendment. References to the Agreement will be to the Agreement, as amended by this Amendment.

D. CONFLICTS

For any conflict between the terms of this Amendment and any term of the Agreement, this Amendment shall govern.

E. COUNTERPARTS

This Amendment may be executed and delivered in counterparts (including by facsimile transmission), each of which will be deemed an original.

F. HEADINGS

The headings used in this Amendment are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Amendment.

G. GOVERNING LAW

This Amendment will be governed by and construed in accordance with the laws of the State of New York (without reference to choice of law doctrine).

IN WITNESS WHEREOF the parties have executed this Amendment on the respective dates specified below with effect from the date specified first on the first page of this Amendment.

Agri-Energy, LLC	FCStone Merchant Services, LLC
By: /s/ Christopher M/ Ryan	By: /s/ Brent Grecian
Name: Christopher M. Ryan Title: President Date: 5/2/18	Name: Brent Grecian Title: President & CEO Date: 5/2/18
	By: /s/ Tricia Harrod
	Name: Tricia Harrod Title: CRO Date: 5/2/18

EX-10.6

Exhibit 10.6

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

____________________________

Stock Option Award Agreement

____________________________

You are hereby awarded this stock option (the “Option”) to purchase Shares of Gevo, Inc. (the “Company”), subject to the terms and conditions set forth in this Stock Option Award Agreement (the “Award Agreement” or the “Award”) and in the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan (as amended from time to time, the “Plan”). A copy of the Plan is attached as Exhibit A. Capitalized terms are defined in the Plan or in this Award Agreement.

This Award is conditioned on your execution of this Award Agreement within twenty (20) days after the Grant Date specified in Section 1 below. By executing this Award Agreement, you will be irrevocably agreeing that all of your rights under this Award will be determined solely and exclusively by reference to the terms and conditions of the Plan, subject to the provisions set forth below. As a result, you should not execute this Award Agreement until you have carefully considered the terms and conditions of the Plan and this Award, plus the information disclosed within the attached Plan prospectus, and (ii) consulted with your personal legal and tax advisors about all of these documents.

In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of the Company or any Committee appointed by the Board to administer the Plan, and shall (in the absence of manifest bad faith or fraud) be final, conclusive and binding on all parties, including you and your successors in interest.

1.     Specific Terms. Your Option has the following terms:

Name of Participant:
Type of Option:
Grant Date:
Expiration Date:
Exercise Price:
Number of Shares subject to this Award:
Dividend Equivalent Rights:
Vesting Schedule:
Accelerated Vesting:	You will become 100% vested in this Award if your Continuous Service ends due to your Involuntary Termination on or within 12 months after a Change in Control (subject to the terms of any employment or other agreement between you and the Company and/or any Affiliate).
Recapture and Recoupment:	Section 14 of the Plan shall apply regarding Termination, Rescission, and Recapture of this Award. Section 15 of the Plan shall apply regarding Recoupment of this Award; provided that the three-year limitation therein shall not apply to the extent a longer period is required by applicable law, rule, regulation or listing standard.

Stock Option Award Agreement

Gevo. Inc.

Amended and Restated 2010 Stock Incentive Plan

2.     Manner of Exercise. Subject to the provisions of Section 7 below, the vested portion of the Option shall be exercised in the manner set forth in the Plan, by using the exercise form attached hereto as Exhibit B and delivering the full exercise price for the Shares being purchased to the Company using the method(s) of payment set forth on Exhibit B. The amount of Shares for which this Option may be exercised is cumulative; that is, if you do not exercise this Option for all of the Shares vested under this Option during any period set forth above, then any Shares subject hereto that are not exercised during such period may be exercised during any subsequent period, until the expiration or termination of this Option pursuant to Section 1 or Section 4 of this Award Agreement or the terms of the Plan. Fractional Shares may not be purchased.

3.     Non-ISO. This Option shall be treated as a Non-ISO.

4.     Termination of Continuous Service. Subject to the terms of any employment agreement between you and the Company (and/or any Affiliate) that is in effect when your Continuous Service terminates, this Award shall be canceled and become automatically null and void immediately after termination of your Continuous Service for any reason, but only to the extent the Award is not vested, pursuant to the terms of Section 1 above, on or before the date your Continuous Service ends. Any vested portion of this Award will remain exercisable until expiration of the applicable time period set forth in the Plan, or, if earlier, the Expiration Date for the Option.

5.     Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a death beneficiary (the “Beneficiary”) to your interest, if any, in this Award and any underlying Shares. You shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as Exhibit C (the “Designation of Death Beneficiary”) and delivering an executed copy of the Designation of Death Beneficiary to the Company. To the extent you do not duly designate a Beneficiary who survives you, your estate will automatically be your Beneficiary.

6.     Restrictions on Transfer of Award. Your rights under this Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee, except as provided herein. During your lifetime only you can exercise the Option.

7.     Taxes. By signing this Award Agreement, you acknowledge that you shall be solely responsible for the satisfaction of any taxes, interest and penalties that may arise pursuant to this Award (including taxes arising under Code Sections 409A (regarding deferred compensation) or 4999 (regarding golden parachute excise taxes), and that the Company, its Affiliates, the Administrator Committee and all other persons or entities shall have no obligation whatsoever to pay such taxes, interest or penalties or otherwise indemnify or hold you harmless from any or all of such taxes, interest or penalties. The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Award Agreement. You acknowledge and agree that the Company, its Affiliates, the Committee and all of their employees and representatives have not and will not provide any tax advice to you. The Company’s obligation to issue Shares to you upon exercise of this Award is at all times subject to your prior or coincident satisfaction of all required Withholding Taxes.

Page 2 of 10

Stock Option Award Agreement

Gevo. Inc.

Amended and Restated 2010 Stock Incentive Plan

You may satisfy Withholding Tax obligations by any of the following means or a combination thereof: (i) tendering a cash payment to the Company, (ii) having the Company withhold an amount from any cash amount otherwise due or become due from the Company to you, (iii) having the Company withhold a number of Shares as to which the Option is exercised of an amount equal to the applicable withholding tax or (iv) delivering to the Company already owned Shares of Company Stock (up to the employer's minimum required tax withholding rate ).

8.     Not a Contract of Employment. By executing this Award Agreement, you acknowledge and agree that (i) any person who is terminated before full vesting of an award, such as the one granted to you by this Award Agreement, could claim that he or she was terminated to preclude vesting; (ii) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company (or any Affiliate), nor shall it affect in any way your right or the Company’s right (or the right of any Affiliate) to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iii) the Company would not have granted this Award to you but for these acknowledgements and agreements. You will have no right to bring a claim or to receive damages if you are required to exercise the vested portion of the Option within the applicable time period set forth in the Plan or if any portion of the Option is cancelled or expires unexercised. The loss of existing or potential profit in the Option will not constitute an element of damages in the event of termination of your Continuous Service for any reason even if the termination is in violation of an obligation of the Company or an Affiliate to you.

9.     Investment Purposes. By executing this Award Agreement, you represent and warrant that any Shares issued to you pursuant to your Option will be held for investment purposes only for your own account, and not with a view to, for resale in connection with, or with an intent in participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

10.    Securities Law Prospectus and Restrictions. By executing this Award Agreement, you acknowledge that you have received a copy of the Prospectus describing the Plan. A copy of the Plan’s Prospectus is attached as Exhibit D. Regardless of whether the offering and sale of this Option or Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company, in its sole discretion, may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act or the securities laws of any state or any other law or to enforce the intent of this Award. Exercise of the Option must also comply with Applicable Law governing the Option, and you may not exercise the Option if the Company determines that such exercise would not be in material compliance with such Applicable Law.

Page 3 of 10

Stock Option Award Agreement

Gevo. Inc.

Amended and Restated 2010 Stock Incentive Plan

11.     Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award Agreement or any provision hereof.

12.     Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement.

13.     Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but both such counterparts shall together constitute one and the same instrument.

14.     Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to your current or future participation in the Plan by electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

15.     Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall be in writing and shall be delivered electronically, personally, or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally or electronically delivered or two business days after such notice is properly mailed.

16.     Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.

17.    Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 18 of the Plan and provided that you must consent in writing to any modification that adversely and materially affects any rights or obligations under this Award Agreement (with such an affect being presumed to arise from a modification that would trigger a violation of Section 409A of the Code), unless otherwise provided in this Award Agreement or the Plan and provided that before a Change in Control, the Committee may make such modifications as it determines in good faith are not materially adverse to you.

18.     Plan Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this Award Agreement and your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control.

Page 4 of 10

Stock Option Award Agreement

Gevo. Inc.

Amended and Restated 2010 Stock Incentive Plan

19.     Governing Law. The laws of the State of Delaware shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto, without regard to the State’s conflict of laws rules.

BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the Company agree that this Award is made under and governed by the terms and conditions of this Award Agreement and the Plan.

GEVO, INC.
By:
	Name:
	Title:
PARTICIPANT The undersigned Participant hereby accepts the terms of this Award Agreement and the Plan.
By:

Name of Participant:

Page 5 of 10

Exhibit A

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

____________________________

Plan Document

____________________________

Page 6 of 10

Exhibit B

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

__________________________________________

Form of Exercise of Stock Option Award

___________________________________________

Gevo, Inc.

[Company Address]

Attention:      _______________________

Dear Sir or Madam:

The undersigned elects to exercise his/her Option to purchase shares of Common Stock of Gevo, Inc. (the “Company”) as follows:

Grant Date of Option	Total Shares Granted	Exercise Price Per Share	Total Shares Being Purchased	Total Exercise Price	Total Taxes Owed to Company	Total Due Company
		$_____		$______	$______	$______

Form(s) of Payment Provided:

$____________	in cash or bank cashier’s or teller’s check
$____________	delivery of ____ shares of Company Stock already owned by the undersigned, valued at $___________ per share (based on the closing sale price on the business day prior to the date of exercise)

$____________ ____ shares withheld by the Company but otherwise issuable upon exercise of the Option (based on the closing sale price on the business day prior to the date of exercise)^’1

$____________	Copy of irrevocable instructions to broker
$                            Total

	Very truly yours,
Date	Optionee

______________________________

¹ Shares may be delivered or withheld for federal income tax purposes up to the employer’s minimum required federal tax withholding rate.

Page 7 of 10

Company Receipt:

Exercise Date: ___________________________ (Date Company receives both the executed Exercise Notice and payment)	By: ______________________________________ Name: ____________________________________
Per share FMV as of such date: $______________	For: Gevo, Inc.

Page 8 of 10

Exhibit C

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

_________________________________

Designation of Death Beneficiary

_________________________________

In connection with the Awards designated below that I have received pursuant to the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan (as amended from time to time, the “Plan”), I hereby designate the person specified below as the beneficiary upon my death of my interest in such Awards. This designation shall remain in effect until revoked in writing by me.

Name of Beneficiary:

Address: 

Social Security No.:

This beneficiary designation relates to any and all of my rights under the following Award or Awards:

☐ any Award that I have received or ever receive under the Plan.

☐ the _________________ Award that I received pursuant to an Award Agreement dated _________ __, ____ between myself and the Company.

I understand that this designation operates to entitle the above named beneficiary, in the event of my death, to any and all of my rights under the Award(s) designated above from the date this form is delivered to the Company until such date as this designation is revoked in writing by me, including by delivery to the Company of a written designation of beneficiary executed by me on a later date.

Date:
By:
	Name of Participant

Sworn to before me this

____day of ____________, 20__

___________________________

Notary Public

County of     _________________

State of     __________________

Page 9 of 10

Exhibit D

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

________________________________

Prospectus describing the Plan

_________________________________

Page 10 of 10

EX-10.7

Exhibit 10.7

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

____________________________

Restricted Shares Award Agreement

__________________________________

You are hereby awarded Restricted Shares subject to the terms and conditions set forth in this agreement (the “Award Agreement” or “Award”) and in the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan (as amended from time to time, the “Plan”). A copy of the Plan is attached as Exhibit A. A summary of the Plan appears in its Prospectus, which is attached as Exhibit B. You should carefully review these documents, and consult with your personal financial and legal advisors, before accepting this Award. Capitalized terms are defined in the Plan or in this Award Agreement.

This Award is conditioned on your execution of this Award Agreement within twenty (20) days after the Award Date specified in Section 1 below. By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim below as well as this Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Gevo, Inc. (the “Company”) or any Committee appointed by the Board to administer the Plan, and shall (in the absence of manifest bad faith or fraud) be final, conclusive and binding on all parties, including you and your successors in interest.

1. Specific Terms. This Award is being granted pursuant to Section 7 of the Plan and has the following terms:

Name of Participant:
Number of Shares Subject to Award:
Purchase Price per Share (if applicable):
Fair Market Value per Share on Award Date:
Award Date:
Vesting Schedule:
Deferral Elections:	Not allowed.
§83(b) Elections:	Allowed pursuant to Section 7(d) of the Plan (a suggested form of Election is attached hereto as Exhibit C).
Accelerated Vesting:	You will become 100% vested in this Award if your Continuous Service ends due to your Involuntary Termination on or within 12 months after a Change in Control (subject to the terms of any employment or other agreement between you and the Company and/or any Affiliate).
Recapture and Recoupment:	Section 14 of the Plan shall apply regarding Termination, Rescission, and Recapture of this Award. Section 15 of the Plan shall apply regarding Recoupment of this Award; provided that the three-year limitation therein shall not apply to the extent a longer period is required by applicable law, rule, regulation, or listing standard.
Lifetime Transfers:	Your rights under this Award Agreement and the Restricted Shares may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee.

Restricted Shares Award Agreement

Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan

Page 2

2. Termination of Continuous Service. Subject to the terms of any employment agreement between you and the Company (and/or any Affiliate) that is in effect when your Continuous Service terminates, any Restricted Shares that have not vested as of the date your Continuous Service terminates shall be canceled and shall become automatically null and void immediately upon such termination of your Continuous Service for any reason.

3. Dividends. When Shares are delivered to you or your duly-authorized transferee pursuant to the vesting of the Shares, you or your duly-authorized transferee shall also be entitled to receive, with respect to each Share delivered, (i) a number of Shares equal to any stock dividends that were declared and paid to the holders of Shares between the Award Date and the date such Share is issued, and (ii) cash or a number of Shares having a Fair Market Value (on the date of each cash dividend payment date) equal to any cash dividends that were paid to the holders of Shares based on a record date between the Award Date and date such Share is delivered. To the extent that your Continuous Service ends, you will forfeit all right to dividends (whether paid in cash or in stock) attributable to all unvested Restricted Shares.

4. Investment Purposes. By executing this Award Agreement, you acknowledge that you are receiving and will be holding your Shares for investment purposes only for your own account, and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

Restricted Shares Award Agreement

Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan

Page 3

5. Issuance of Restricted Shares. Until all vesting restrictions lapse, any certificates that you receive for Restricted Shares will include a legend stating that they are subject to the restrictions set forth in the Plan and this Award Agreement. The certificates evidencing such Restricted Shares that will be issued will bear the following legend that shall remain in place and effective until all other vesting restrictions lapse and new certificates are issued:

The sale or other transfer of the Stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain vesting, forfeiture, termination, rescission, and recapture restrictions on transfer set forth in the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan, in a related Award Agreement, and in any rules and administrative procedures adopted pursuant to such Plan or related Award Agreement. A copy of the Plan, such Award Agreement, and such rules and procedures may be obtained from the Secretary of Gevo, Inc.

In addition, the Company shall make a notation regarding the restrictions on transfer of the Restricted Shares in its stock books, and shares of the Restricted Shares shall be transferred on the books of the Company only if transferred or sold in accordance with the terms of the Plan and this Award Agreement.

6. Unvested Restricted Shares. The Company will hold any Restricted Shares in escrow until vesting occurs. You will be reflected as the owner of record on the Company’s books and records of any Shares issued pursuant to this Award Agreement. The Company will hold any stock certificates for safekeeping until such Restricted Shares have become vested and non-forfeitable. You must deliver to the Company, as soon as practicable after the date any Restricted Shares are issued, a stock power, endorsed in blank, with respect to any such Shares. If you forfeit any Restricted Shares, the stock power will be used to return the certificates for the forfeited Restricted Shares to the transfer agent for cancellation. As the owner of record of any Restricted Shares you qualify to receive pursuant to this Award Agreement, you will be entitled to all rights of a stockholder of the Company, including the right to vote the Shares; subject, however, to the provisions of Section 3 hereof with respect to any cash or stock dividends that are paid between the Award Date and your receipt of Shares pursuant to a vesting event, subject in each case to the treatment of the Award upon cessation of Continuous Service before the particular record date for determining stockholders of record entitled to the payment of the dividend or distribution. To the extent such a dividend is paid in stock or cash, such stock or cash shall be subject to the same vesting restrictions contained in Section 1.

7. Section 83(b) Election Notice. If you make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Restricted Shares subject to the Award (a “Section 83(b) election”), you agree to provide a copy of such election to the Company within 10 days after filing that election with the Internal Revenue Service. Exhibit C contains a suggested form of Section 83(b) election.

8. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest, if any, in this Award and any underling Shares. In order to designate a Beneficiary you must complete and execute a designation of beneficiary agreement substantially in the form attached hereto as Exhibit D (the “Designation of Beneficiary”) and deliver an executed copy of the Designation of Beneficiary to the Company.

9. Restrictions on Transfer of Award. If, while Shares are Restricted Shares, you attempt to assign, pledge, transfer, or otherwise dispose of such Restricted Shares, voluntarily or involuntarily, all rights with respect to such Restricted Shares shall irrevocably terminate and all such Restricted Shares shall promptly be surrendered to the Company. Your rights under this Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee, except as provided herein.

Restricted Shares Award Agreement

Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan

Page 4

10. Conditions on Issuance of Shares; Transfer Restrictions. Notwithstanding any other provision of the Plan or of this Award Agreement, the Committee may condition your receipt of Shares on your execution of a shareholder agreement imposing terms generally applicable to other similarly-situated employee-shareholders. In addition, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of Shares received pursuant to this Award Agreement (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act or the securities laws of any state or any other law or to enforce the intent of this Award.

11. Taxes. By signing this Award Agreement, you acknowledge that you shall be solely responsible for the satisfaction of any taxes, interest and penalties that may arise pursuant to this Award (including taxes arising under Sections 409A or 4999 of the Code), and that the Company, its Affiliates, the Committee and all other persons or entities shall have no obligation whatsoever to pay such taxes, interest or penalties or otherwise indemnify or hold you harmless from any or all of such taxes, interest or penalties. The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Award Agreement. You acknowledge and agree that the Company, its Affiliates, the Committee and all of their employees and representatives have not and will not provide any tax advice to you. The Company’s obligation to issue Shares to you upon vesting is at all times subject to your prior or coincident satisfaction of all required Withholding Taxes.

You may satisfy Withholding Tax obligations by any of the following means or a combination thereof: (i) tendering a cash payment to the Company, (ii) having the Company withhold an amount from any cash amount otherwise due or become due from the Company to you, (iii) having the Company withhold a number of Shares that would otherwise become vested under this Award Agreement (up to the employer's minimum tax withholding rate) or (iv) delivering to the Company already owned Shares of Company Stock (up to the employer's minimum required tax withholding rate).

12. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to your current or future participation in the Plan by electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

13. Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall be in writing and shall be delivered electronically, personally, or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or two business days after the date such notice is properly mailed.

Restricted Shares Award Agreement

Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan

Page 5

14. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.

15. Modifications. This Award Agreement may be modified or amended at any time, in accordance with the Plan (including, but not limited to, Section 18 of the Plan) and provided that you must consent in writing to any modification that adversely and materially affects any rights or obligations under this Award Agreement (with such an affect being presumed to arise from a modification that would trigger a violation of Section 409A of the Code), unless otherwise provided in this Award Agreement or the Plan and provided that before a Change in Control, the Committee may make such modifications as it determines in good faith are not materially adverse to you.

16. Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award Agreement or any provision hereof.

17. Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement.

18. Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but both such counterparts shall together constitute one and the same instrument.

19. Plan Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this Award Agreement and your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control.

20. Not a Contract of Employment. By executing this Award Agreement, you acknowledge and agree that (i) any person who is terminated before full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) in any event, you have no right to pro-rated vesting with respect to the Award if your Continuous Service is terminated before any applicable Vesting Date (regardless of the portion of the vesting period you actually were in Continuous Service), (iv) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company or any Affiliate, nor shall it affect in any way your right or the Company’s right or the right of any Affiliate to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (v) the Company would not have granted this Award to you but for these acknowledgements and agreements.

Restricted Shares Award Agreement

Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan

Page 6

21. Governing Law. The laws of the State of Delaware shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto, without regard to the State’s conflict of laws rules.

BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the Company agree that the Restricted Shares are awarded under and governed by the terms and conditions of this Award Agreement and the Plan.

Gevo, Inc.
By:
	Name:
	Title:
PARTICIPANT The undersigned Participant hereby accepts the terms of this Award Agreement and the Plan.
By:

Name of Participant: 

EXHIBIT A

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

_______________________________

Plan Document

______________________________

EXHIBIT B

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

_______________________________

Plan Prospectus

______________________________

EXHIBIT C

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

_______________________________

Section 83(b) Election Form

______________________________

Attached is an Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE RESTRICTED SHARES COVERED BY THE ELECTION WERE TRANSFERRED (WITHIN THE MEANING OF SECTION 83(B)) TO YOU. In order to make the election, you must completely fill out the attached form (or an acceptable substitute substantially identical to the attached form) and file one copy with the Internal Revenue Service office where you file your tax return. You also must submit a copy of the election form to the Company within 10 days after filing that election with the Internal Revenue Service. A Section 83(b) election normally cannot be revoked.

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

________________________________________________________

Election to Include Value of Restricted Shares in Gross Income

in Year of Transfer Under Internal Revenue Code Section 83(b)

_________________________________________________________

Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days after receiving the property described herein to be taxed immediately on its value specified in item 5 below.

1. My General Information:

Name: 

Address:

S.S.N.or T.I.N.:

2. Description of the property with respect to which I am making this election:

____________________ shares of ___________ stock of Gevo, Inc. (the “Restricted Shares”).

3. The Restricted Shares were transferred to me on ______________ ___, 20__. This election relates to the 20____ calendar taxable year.

4. The Restricted Shares are subject to the following restrictions:

The Restricted Shares are forfeitable until they are earned in accordance with Section 1 of the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan (“Plan”) Restricted Share Award Agreement (“Award Agreement”) or other Award Agreement or Plan provisions. The Restricted Shares generally are not transferable until my interest becomes vested and nonforfeitable, pursuant to the Award Agreement and the Plan.

5. Fair market value:

The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms never will lapse) of the Restricted Shares with respect to which I am making this election is $_____ per share.

6. Amount paid for Restricted Shares:

The amount I paid for the Restricted Shares is $____ per share.

7. Furnishing statement to employer:

A copy of this statement has been furnished to my employer, ______________. If the transferor of the Restricted Shares is not my employer, that entity also has been furnished with a copy of this statement.

8. Award Agreement or Plan not affected:

Nothing contained herein shall be held to change any of the terms or conditions of the Award Agreement or the Plan.

Dated: ____________ __, 20__.

_________________________________________

Taxpayer

EXHIBIT D

GEVO, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

_________________________________

Designation of Beneficiary

_________________________________

In connection with the Awards designated below that I have received pursuant to the Gevo, Inc. Amended and Restated 2010 Stock Incentive Plan (as amended from time to time, the “Plan”), I hereby designate the person specified below as the beneficiary upon my death of my interest in such Awards. This designation shall remain in effect until revoked in writing by me.

Name of Beneficiary:

Address:

Social Security No.: 

This beneficiary designation relates to any and all of my rights under the following Award or Awards:

☐ any Award that I have received or ever receive under the Plan.

☐ any Restricted Shares that I have received or ever receive under the Plan.

☐ the _________________ Award of __________________ that I received pursuant to an Award Agreement dated _________ __, ____ between myself and the Company.

I understand that this designation operates to entitle the above named beneficiary, in the event of my death, to any and all of my rights under the Award(s) designated above from the date this form is delivered to the Company until such date as this designation is revoked in writing by me, including by delivery to the Company of a written designation of beneficiary executed by me on a later date.

Date:
By:
	Name of Participant

Sworn to before me this

____day of ____________, 20__

___________________________

Notary Public

County of     _________________

State of     __________________

EX-10.8

Exhibit 10.8

GEVO, INC.

2010 STOCK INCENTIVE PLAN

____________________________

Stock Appreciation Rights Award Agreement

____________________________

You are hereby awarded this stock appreciation right (the “SAR”) with respect to Shares of Gevo, Inc. (the “Company”), subject to the terms and conditions set forth in this Stock Appreciation Rights Award Agreement (the “Award Agreement”) and in the Amended and Restated Gevo, Inc. 2010 Stock Incentive Plan, as amended and restated from time to time (the “Plan”). A copy of the Plan is attached as Exhibit A. Terms below that begin with capital letters have the special meaning set forth in the Plan or in this Award Agreement.

This Award is conditioned on your execution of this Award Agreement by Tim Cesarek. By executing this Award Agreement, you will be irrevocably agreeing that all of your rights under this Award will be determined solely and exclusively by reference to the terms and conditions of the Plan, subject to the provisions set forth below. As a result, you should not execute this Award Agreement until you have carefully considered the terms and conditions of the Plan and this Award Agreement, plus the information disclosed within the attached Plan prospectus, and (ii) consulted with your personal legal and tax advisors about all of these documents.

1.     Specific Terms. Your SAR has the following terms:

Name of Participant:
Grant Date:
Expiration Date:
Exercise Price:
Number of Shares subject to this Award:
Dividend Equivalent Rights:	Not applicable to this Award.
Vesting:
Accelerated Vesting	You will become 100% vested in this Award if your Continuous Service ends due to your Involuntary Termination or in the event of a Change in Control (subject to the terms of any employment or other agreement between you and the Company and/or any Affiliate).
Recapture and Recoupment	Section 14 of the Plan shall apply re: Termination, Rescission, and Recapture of this Award. Section 15 shall apply re: Recoupment of this Award; provided that the three-year limitation shall not apply to the extent a longer period is required by applicable law, rule, regulation or listing standard.

Stock Appreciation Rights Award Agreement

Gevo. Inc.

2010 Stock Incentive Plan

2.     Manner of Exercise; Settlement. Subject to the provisions of Section 6 below, this SAR shall be exercised in the manner set forth in the Plan, by using the exercise form attached hereto as Exhibit B. Following receipt of the exercise form from you, the Company will, at the sole discretion of the Committee, either (a) make a cash payment to you equal to the excess, if any, of the then Fair Market Value of one Share over the Exercise Price (per Share), multiplied by the number of Shares for which the SAR is exercised or (b) issue to you that number of Shares determined by dividing (x) the excess, if any, of the then Fair Market Value of one Share over the Exercise Price (per Share), multiplied by the number of Shares for which the SAR is exercised by (y) the then Fair Market Value of one Share (any fractional shares resulting from this calculation will be paid in cash). Any fractional amount resulting from payment in Shares shall be rounded down to the nearest whole Share. The amount of Shares for which this SAR may be exercised is cumulative; that is, if you fail to exercise this SAR for all of the Shares vested under this SAR during any period set forth above, then any Shares subject hereto that are not exercised during such period may be exercised during any subsequent period, until the expiration or termination of this SAR pursuant to Section 1 or Section 3 of this Award Agreement or the terms of the Plan.

3.     Termination of Continuous Service. Subject to the terms of any employment agreement between you and the Company (and/or any Affiliate) that is in effect when your Continuous Service terminates, this Award shall be canceled and become automatically null and void immediately after termination of your Continuous Service for any reason, but only to the extent you have not become vested, pursuant to the terms of Section 1 above, on or before your Continuous Service ends.

4.     Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a death beneficiary (the “Beneficiary”) to your interest, if any, in this Award and any underlying Shares. You shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as Exhibit C (the “Designation of Death Beneficiary”) and delivering an executed copy of the Designation of Death Beneficiary to the Company. To the extent you do not duly designate a Beneficiary who survives you, your estate will automatically be your Beneficiary.

5.       Restrictions on Transfer of Award. Your rights under this Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee, except as hereinafter provided.

6.      Taxes. Except to the extent otherwise specifically provided in an employment or consulting agreement between you and the Company (and/or any Affiliate), by signing this Award Agreement, you acknowledge that you shall be solely responsible for the satisfaction of any taxes that may arise pursuant to this Award (including taxes arising under Sections 409A (regarding deferred compensation) or 4999 (regarding golden parachute excise taxes), and that neither the Company (or any Affiliate) nor the Administrator shall have any obligation whatsoever to pay such taxes or to otherwise indemnify or hold you harmless from any or all of such taxes. The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Award Agreement. The Company’s obligation to issue Shares or cash to you upon exercise of this Award is at all times subject to your prior or coincident satisfaction of all required Withholding Taxes.

Page 2 of 8

Stock Appreciation Rights Award Agreement

Gevo. Inc.

2010 Stock Incentive Plan

7.       Not a Contract of Employment. By executing this Award Agreement, you acknowledge and agree that (i) any person who is terminated before full vesting of an award, such as the one granted to you by this Award Agreement, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company (or any Affiliate), nor shall it affect in any way your right or the Company’s right (or the right of any Affiliate) to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements.

8.      Investment Purposes. By executing this Award Agreement, you represent and warrant that any Shares issued to you pursuant to your SAR will be held for investment purposes only for your own account, and not with a view to, for resale in connection with, or with an intent in participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

9.        Securities Law Prospectus and Restrictions. By executing this Award Agreement you acknowledge that you have received a copy of the Prospectus describing the Plan. A copy of the Plan’s Prospectus is attached as Exhibit D. Regardless of whether the offering and sale of this SAR or Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company, in its sole discretion, may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act or the securities laws of any state or any other law or to enforce the intent of this Award.

10.       Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award Agreement or any provision hereof.

11.      Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement.

12.      Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but both such counterparts shall together constitute one and the same instrument.

13.      Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall be in writing and shall be delivered electronically, personally, or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally or electronically delivered or two business days after such notice is properly mailed.

Page 3 of 8

Stock Appreciation Rights Award Agreement

Gevo. Inc.

2010 Stock Incentive Plan

14.     Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.

15.    Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 18 of the Plan and provided that you must consent in writing to any modification that adversely and materially affects any rights or obligations under this Award Agreement.

16.    Plan Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this Award Agreement and your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control.

17.    Governing Law. The laws of the Delaware shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto.

BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the Company agree that this Award is made under and governed by the terms and conditions of this Award Agreement and the Plan.

GEVO, INC.
By:
	Name:
	Title:

PARTICIPANT

The undersigned Participant hereby accepts the terms of this Award

Agreement and the Plan.

By:

Name of Participant:

Page 4 of 8

Exhibit A

GEVO, INC.

2010 STOCK INCENTIVE PLAN

____________________________

Plan Document

____________________________

Page 5 of 8

Exhibit B

GEVO, INC.

2010 STOCK INCENTIVE PLAN

__________________________________________

Form of Exercise of Stock Appreciation Rights Award

___________________________________________

Gevo, Inc.

[Company Address]

Attention:

Dear Sir or Madam:

The undersigned elects to exercise his/her Stock Appreciation Right with respect to _______ shares of Common Stock of Gevo, Inc. (the “Company”) under and pursuant to a Stock Appreciation Rights Agreement dated as of ______________.

	Very truly yours,
Date	Participant

Page 6 of 8

Exhibit C

GEVO, INC.

2010 STOCK INCENTIVE PLAN

_________________________________

Designation of Death Beneficiary

_________________________________

In connection with the Awards designated below that I have received pursuant to the Gevo, Inc. 2010 Stock Incentive Plan (the “Plan”), I hereby designate the person specified below as the beneficiary upon my death of my interest in such Awards. This designation shall remain in effect until revoked in writing by me.

Name of Beneficiary: 

Address:  

Social Security No.:

This beneficiary designation relates to any and all of my rights under the following Award or Awards:

☐ any Award that I have received or ever receive under the Plan.

☐ the _________________ Award that I received pursuant to an Award Agreement dated _________ __, ____ between myself and the Company.

I understand that this designation operates to entitle the above named beneficiary, in the event of my death, to any and all of my rights under the Award(s) designated above from the date this form is delivered to the Company until such date as this designation is revoked in writing by me, including by delivery to the Company of a written designation of beneficiary executed by me on a later date.

Date:
By:
	Name of Participant

Sworn to before me this

____day of ____________, 20__

___________________________

Notary Public

County of     _________________

State of     __________________

Page 7 of 8

Exhibit D

GEVO, INC.

2010 STOCK INCENTIVE PLAN

________________________________

Prospectus describing the Plan

_________________________________

Page 8 of 8

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Patrick R. Gruber, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Gevo, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: August 8, 2018

/s/ Patrick R. Gruber

Patrick R. Gruber

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Bradford K. Towne, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Gevo, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: August 8, 2018

/s/ Bradford K. Towne

Bradford K. Towne

Chief Accounting Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, Patrick R. Gruber, Chief Executive Officer of Gevo, Inc. (the “Registrant”), and I, Bradford K. Towne, Chief Accounting Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report on Form 10-Q of the Registrant for the quarter ended June 30, 2018 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant for the period covered by the Report.

Date: August 8, 2018

/s/ PATRICK R. GRUBER

Patrick R. Gruber

Chief Executive Officer

(Principal Executive Officer)

/s/ BRADFORD K. TOWNE

Bradford K. Towne

Chief Accounting Officer

(Principal Financial and Accounting Officer)

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Information [Line Items]
Entity Registrant Name	Gevo, Inc.
Entity Central Index Key	0001392380
Trading Symbol	gevo
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		8,085,084
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 27,030	$ 11,553
Accounts receivable	1,443	1,054
Inventories	3,846	4,362
Prepaid expenses and other current assets	15,258	712
Total current assets	47,577	17,681
Property, plant and equipment, net	67,180	70,369
Deposits and other assets	1,273	803
Total assets	116,030	88,853
Current liabilities:
Accounts payable and accrued liabilities	3,520	4,011
2020 Notes embedded derivative liability	684	5,224
Derivative warrant liability	86	1,951
Total current liabilities	4,290	11,186
Other long-term liabilities	414	130
Total liabilities	16,435	25,322
Commitments and Contingencies (see Note 11)
Stockholders' Equity
Common Stock, $0.01 par value per share; 250,000,000 authorized, 7,990,050 and 1,090,553 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	80	11
Additional paid-in capital	514,859	464,870
Accumulated deficit	(415,344)	(401,350)
Total stockholders' equity	99,595	63,531
Total liabilities and stockholders' equity	116,030	88,853
Convertible 2020 Notes [Member]
Current liabilities:
2020 Notes, net	11,731	13,491
Convertible 2022 Notes [Member]
Current liabilities:
2020 Notes, net		$ 515

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock shares issued (in shares)	7,990,050	1,090,553
Common stock, shares outstanding (in shares)	7,990,050	1,090,553

XML

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue	$ 9,420	$ 7,499	$ 17,663	$ 13,082
Grant and other revenue		43	25	75
Total revenues	9,420	7,542	17,663	13,157
Cost of goods sold	10,693	9,705	21,276	19,113
Gross loss	(1,273)	(2,163)	(3,613)	(5,956)
Operating expenses
Research and development expense	1,469	1,891	2,258	3,108
Selling, general and administrative expense	1,637	2,123	3,507	4,297
Total operating expenses	3,106	4,014	5,765	7,405
Loss from operations	(4,379)	(6,177)	(9,378)	(13,361)
Other (expense) income
Interest expense	(904)	(630)	(1,729)	(1,341)
(Loss) on exchange of debt	(2,181)	(3,969)	(2,202)	(4,933)
(Loss) from change in fair value of the 2017 Notes				(339)
(Loss)/Gain from change in fair value of derivative warrant liability	(3,517)	2,260	(3,040)	5,519
(Loss)/Gain from change in fair value of 2020 Notes embedded derivative	(511)	(1,662)	2,347	(1,662)
Other income		20	8	26
Total other expense, net	(7,113)	(3,981)	(4,616)	(2,730)
Net loss	$ (11,492)	$ (10,158)	$ (13,994)	$ (16,091)
Net loss per share - basic and diluted (in dollars per share)	$ (7.19)	$ (13.22)	$ (10.26)	$ (23.86)
Weighted-average number of common shares outstanding - basic and diluted (in shares)	1,597,242	768,625	1,363,394	674,451
Ethanol Sales and Related Products [Member]
Revenue	$ 8,813	$ 6,839	$ 17,031	$ 12,333
Total revenues	8,813	6,839	17,031	12,333
Hydrocarbon [Member]
Revenue	607	660	607	749
Total revenues	$ 607	$ 660	$ 607	$ 749

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net loss	$ (13,994)	$ (16,091)
Adjustments to reconcile net loss to net cash used in operating activities:
(Loss)/Gain from change in fair value of derivative warrant liability	3,040	(5,519)
(Loss)/Gain from change in fair value of 2020 Notes embedded derivative	(2,347)	1,662
Loss from the change in fair value of the 2017 Notes		339
Loss on exchange of debt	2,202	4,933
Stock-based compensation	237	225
Depreciation and amortization	3,285	3,341
Non-cash interest expense	884	196
Other non-cash expense	6
Changes in operating assets and liabilities:
Accounts receivable	(389)	(242)
Inventories	516	(838)
Prepaid expenses and other current assets	(416)	(114)
Accounts payable, accrued expenses, and long-term liabilities	(829)	(1,276)
Net cash used in operating activities	(7,805)	(13,384)
Investing Activities
Acquisitions of property, plant and equipment	(97)	(1,315)
Net cash used in investing activities	(97)	(1,315)
Financing Activities
Payments on secured debt		(9,616)
Debt and equity offering costs	(299)	(931)
Proceeds from issuance of common stock	22,415	11,044
Proceeds from the exercise of common stock warrants	1,263	6
Net cash provided by financing activities	23,379	503
Net (decrease) in cash and cash equivalents	15,477	(14,196)
Beginning of period	11,553	30,499
End of period	27,030	16,303
Cash paid for interest, net of interest capitalized	850	2,116
Non-cash purchase of property, plant and equipment	16	189
Exchange or conversion of convertible debt into common stock	3,701	8,653
Accrued debt and equity issuance costs	61	126
Discount due to exchange of 2017 Notes for 2020 Notes		3,009
Fair value of 2020 Notes embedded derivative upon exchange		6,975
Fair value of 2020 Notes embedded derivative liability upon conversion into common stock	2,193
Fair value of warrants at issuance and upon exercise, net	4,905	5,213
Shares of common stock sold but not paid at June 30, 2018	$ 14,130

XML

Note 1 - Nature of Business, Financial Condition, Basis of Presentation and Reverse Stock Split

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1.

Nature of Business, Financial Condition, Basis of Presentation and Reverse Stock Split

Nature of Business

. Gevo, Inc. (“Gevo” or the “Company,” which, unless otherwise indicated, refers to Gevo, Inc. and its subsidiaries) is a renewable chemicals and next generation "low-carbon" fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle. The most common low-carbon fuels are renewable fuels. Gevo is focused on the development and production of mainstream fuels like gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. In addition to serving the low-carbon fuel markets, through Gevo's technology, Gevo can also serve markets for the production of chemical intermediate products for solvents, plastics and building block chemicals.

In addition to its ethanol production capabilities, the Company developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to make isobutanol and hydrocarbon products from isobutanol that can displace petrochemical incumbent products. The Company has been able to genetically engineer yeast, whereby the yeast produces isobutanol from carbohydrates. The Company’s technology converts its renewable isobutanol to alcohol-to-jet (“ATJ”), isooctane, isooctene, and para-xylene (building block for polyester) at its hydrocarbons demonstration plant located at South Hampton Resources located in Silsbee, Texas. In addition the Company’s production facility located in Luverne, Minnesota (the "Luverne Facility") has production capacity of about

20

MGPY of ethanol,

45

-

50

kilotons (“KT”) of animal feed, and

3

million pounds of corn oil.

As of

June 30, 2018,

the Company continues to engage in research and development, business development, business and financial planning, optimizing operations for low-carbon ethanol, isobutanol, and related hydrocarbons production and raising capital to fund future expansion of its Luverne Facility. Ultimately, the Company believes that the attainment of profitable operations is dependent upon future events, including (i) completing certain capital improvements at the Luverne Facility to produce low-carbon ethanol side-by-side with low-carbon isobutanol; (ii) completing its development activities resulting in commercial production and sales of isobutanol or isobutanol-derived products and/or technology, (ii) obtaining adequate financing to complete its development activities, (iii) obtaining adequate financing to build out low-carbon ethanol capacity and further isobutanol and hydrocarbon production capacity, (iv) gaining market acceptance and demand for its products and services, and (v) attracting and retaining qualified personnel.

Financial Condition

. For the

six

months ended

June 30, 2018

and

2017,

the Company incurred a consolidated net loss of

$14.0

 

million and

$16.1

 

million, respectively, and had an accumulated deficit of

$415.3

 

million at

June 30, 2018

.

The Company’s cash and cash equivalents at

June 30, 2018 

totaled

$27.0

million (does

not

include gross proceeds of

$14.9

million received under the at-the-market offering program after

June 30, 2018

due to timing of settlement of sales under the at-the-market offering program) and are expected to be used for the following purposes: (i) operating activities of the Luverne Facility; (ii) operating activities at the Company’s corporate headquarters in Colorado, including research and development work; (iii) capital improvements primarily associated with the Luverne Facility; (iv) costs associated with optimizing isobutanol production technology; (v) exploration of strategic alternatives and new financings; and (vi) debt service and repayment obligations.

The Company expects to incur future net losses as it continues to fund the development and commercialization of its product candidates. To date, the Company has financed its operations primarily with proceeds from multiple sales of equity and debt securities, borrowings under debt facilities and product sales. The Company’s transition to profitability is dependent upon, among other things, the successful development and commercialization of its product candidates and the achievement of a level of revenues adequate to support the Company’s cost structure. The Company

may

never achieve profitability or positive cash flows, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, the Company

may

seek additional capital through arrangements with strategic partners or from other sources, it

may

seek to restructure its debt and it will continue to address its cost structure. Notwithstanding, there can be

no

assurance that the Company will be able to raise additional funds, or achieve or sustain profitability or positive cash flows from operations. Existing working capital was

not

sufficient to meet the cash requirements to fund planned operations through the period that is

one

year after the date the Company’s audited

2017

year-end financial statements were issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s inability to continue as a going concern

may

potentially affect the Company’s rights and obligations under its outstanding senior secured convertible notes. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do

not

include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

At-the-Market Offering Program.

In

February 2018,

the Company commenced an at-the-market offering program, which initially allowed it to sell and issue up to

$5.0

million of shares of the Company’s common stock. During the

three

months ended

June 30, 2018,

the Company amended the at-the-market offering program and increased the available capacity by approximately

$84.9

million.

During the

six

months ended

June 30, 2018,

the Company issued

6,286,617

shares of common stock (after giving effect to the

one

-for-

twenty

reverse stock split effected on

June 1, 2018)

under the at-the-market offering for gross proceeds of

$37.4

million, of which

$14.5

million was

not

received until

July 3, 2018.

The Company paid commissions to its sales agent of approximately

$0.9

million and incurred other offering related expenses of approximately

$0.4

million during the

six

months ended

June 30, 2018.

During the

three

months ended

June 30, 2018,

the Company issued

6,281,409

shares of common stock (after giving effect to the

one

-for-

twenty

reverse stock split effected

June 1, 2018)

under the at-the-market offering for gross proceeds of

$37.4

million during the

three

months ended

June 30, 2018,

of which

$14.5

million was

not

received until

July 3, 2018.

The Company paid commissions to its sales agent of approximately

$0.9

million and the incurrence of other offering related expenses of

$0.2

million during the

three

months ended

June 30, 2018.

Basis of Presentation.

The unaudited consolidated financial statements of the Company (which include the accounts of its wholly-owned subsidiaries Gevo Development and Agri-Energy) have been prepared, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do

not

include all information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company at

June 30, 2018

and are

not

necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included under the heading “Financial Statements and Supplementary Data” in Part II, Item 

8

of the Company’s Annual Report on Form

10

-K for the year ended

December 

31,

2017

(the “Annual Report”).

       Reverse Stock Split.

On

May 30,

20

18,

after receipt of stockholder approval, the Board of Directors approved an amendment to the Company's Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s common stock, par value

$0.01

per share, by a ratio of

one

-for-twenty. The reverse stock split became effective

June 1, 2018.

Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split.

Recent Accounting Pronouncements

   

Leases (“ASU

2016

-

02”

)

. In

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

-

02,

Topic

842

Leases

. ASU-

2016

-

02

requires leases to be reported on the financial statements. The objective is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU

2016

-

02

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Future minimum lease obligations for leases accounted for as operating leases at

June 30, 2018

totaled

$2.3

million. The Company is currently in the process of evaluating the impact of adoption of ASU

2016

-

02

on its consolidated financial statements.

Derivatives and Hedging (Topic

815

). Accounting for Certain Financial Instruments with Down Round Provisions (“ASU

2017

-

11”

).

In

July 2017,

the FASB issued ASU

No.

2017

-

11,

Derivatives and Hedging (Topic

815

) Accounting for Certain Financial Instruments with Down Round Provisions

which simplifies the accounting for certain equity-linked financial instruments and embedded features with down round features that reduce the exercise price when the pricing of a future round of financing is lower. Currently, the existence of such features require classification outside of equity and recognition of changes in the fair value of the instrument in earnings each reporting period. This standard eliminates the need to remeasure the instruments at fair value and allows classification within equity. This standard will

not

materially impact the Company, as the Company's liability classified financial instruments and embedded derivatives that require separation from the host instrument have features other than down-round provisions that require current accounting and classification.

Adoption of New Accounting Pronouncements

.

Revenue from Contracts with Customers (“ASU

2014

-

09”

)

. In

May 2014,

the FASB issued ASU

No.

2014

-

09,

Revenue from Contracts with Customers

. The objective of ASU

2014

-

09

is to outline a new, single comprehensive model to use in accounting for revenue arising from contracts with customers. The new revenue recognition model provides a

five

-step analysis for determining when and how revenue is recognized, depicting the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. ASU

2014

-

09

is effective for fiscal years and interim periods within those years beginning after

December 15, 2016.

On

July 9, 2015,

the FASB Board voted to delay the implementation of ASU

2014

-

09

by

one

year to

December 15, 2017.

In

April 2016,

the FASB issuedASU

No.

2016

-

10

Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing

(“ASU

2016

-

10”

) which provides additional clarification regarding

 Identifying Performance Obligations and Licensing

. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. As a result of the Company’s conclusions below, there is

no

impact upon revenue recognition, historical or otherwise, due to the adoption of ASU

2014

-

09

effective

January 1, 2018, and accordingly, there is no requirement to select a transition method.

The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants. The following provides the Company’s assessment on how this standard impacted the Company upon its adoption effective

January 1, 2018

Ethanol sales and related products revenues, net.

Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver

future goods or services. The Company has sold and continues to sell close to

100

% of its ethanol production to a single customer, representing

69%

and

75%

of total revenues for the

three

months ended

June 30, 2018

and

2017,

respectively,

and

71%

and

77%

of total revenues for the

six

months ended

June 30, 2018

and

2017,

resp

ectively,. The Company completed its review of this customer and consistent with prior assessments, does

not

expect there to be any impact on how the Company has and will continue to account for sales of ethanol to this customer. The Company further evaluated related products, including distiller’s grains, corn oil and isobutanol, and after its review, there is

no

significant impact either historically or prospectively upon the Company’s adoption of this standard on

January 1, 2018.

Hydrocarbon revenue.

Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and is sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services. The Company has determined that there will be

no

material impact as to how the Company has historically recognized or will recognize revenues upon adopting this standard on

January 1, 2018.

Grant and other revenues.

Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the

Northwest Advanced Renewables Alliance

(“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of these revenues since

2014.

After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does

not

qualify as a contract pursuant to Topic

606

“

Revenues from Contracts with Customers”

, which was established with the issuance of ASU

2014

-

09.

However, Topic

606

stipulates revenue recognition under these circumstances, and the Company determined that there is

no

change to revenue recognition upon adopting this standard on

January 1, 2018.

Statement of Cash Flows – Restricted Cash (“ASU

2016

-

18”

).

In

November 2016,

the FASB issued ASU

No.

2016

-

18,

Statement of Cash Flows – Restricted Cash

, which standardizes the classification and presentation of changes in restricted cash on the statement of cash flows. This amendment requires that that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This amendment was effective for public business entities for fiscal years beginning after

December 15, 2017,

but early adoption was permitted. This standard must be applied retrospectively for all periods presented. The Company’s adoption of this standard on

January 1, 2018

materially impacted the presentation of the Company’s previously presented

2017

statements of cash flows for the three, six,

nine

and

twelve

months ended

December 31, 2017,

as the Company released approximately

$2.6

million of restricted cash in

April 2017. Prior to the adoption of this standard, the 2017 beginning of period cash and cash equivalents totaled $27.9 million. After adoption of this standard, the 2017 beginning period of cash, cash equivalents,

and restricted cashtotaled

$30.5

million.

XML

Note 2 - Earnings Per Share

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

2.

Earnings per Share

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share (“EPS”) includes the dilutive effect of common stock equivalents and is computed using the weighted-average number of common stock and common stock equivalents outstanding during the reporting period. Diluted EPS for the

three

and

six

months ended

June 30, 2018

and

2017

excluded common stock equivalents because the effect of their inclusion would be anti-dilutive, or would decrease the reported loss per share.

The following table sets forth securities outstanding that could potentially dilute the calculation of diluted earnings per share.

	June 30,
	2018		2017
Warrants to purchase common stock - liability classified (see Note 7)		58,902		680,119
Warrant to purchase common stock - equity classified		6		72
2020 Notes		1,116,637		1,485,100
2022 Notes		–		21
Outstanding stock appreciation rights		68,638		–
Outstanding options to purchase common stock		358		3,846
Unvested restricted common stock		16		268
Total		1,244,557		2,169,426

The Company issued

95,000

shares of common stock under the at-the-market offering program, between

July 1, 2018 and August 8, 2018

,

which are

not

reflected in the tables presented above. See Note

1,

Nature of Business, Financial Condition and Basis of Presentation

.

XML

Note 3 - Revenues From Contracts With Customers Other Revenues

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3.

Revenues from Contracts with Customers Other Revenues

The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants.

Ethanol sales and related products revenues, net.

Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.

Hydrocarbon revenue.

Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and are sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.

Grant and other revenues.

Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the

Northwest Advanced Renewables Alliance

(“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of those revenues since

2014.

After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does

not

qualify as a contract pursuant to Topic

606

“

Revenues from Contracts with Customers”

. Other revenues also include occasional short-term (less than

one

-year) consulting services and until

December

of

2017,

the lease of the Company’s corn storage bins at its Luverne, MN facility.

The following table sets forth the components of the Company’s revenues between those generated from contracts with customers and those generated from arrangements that do

not

constitute a contract with a customer (in thousands):

	Three Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	8,813	$	-	$	8,813
Hydrocarbon revenue		607		-		607
Grant and other revenue		-		-		-
	$	9,420	$	-	$	9,420
Timing of Revenue Recognition
Goods transferred at a point in time	$	9,420	$	-	$	9,420
Services transferred over time		-		-		-
	$	9,420	$	-	$	9,420
Operating Segment
Gevo	$	607	$	-	$	607
Gevo Development / Agri-Energy		8,813		-		8,813
	$	9,420	$	-	$	9,420
Geographic Region
United States	$	8,813	$	-	$	8,813
Other		607		-		607
	$	9,420	$	-	$	9,420

	Three Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	6,839	$	-	$	6,839
Hydrocarbon revenue		660		-		660
Grant and other revenue		-		43		43
	$	7,499	$	43	$	7,542
Timing of Revenue Recognition
Goods transferred at a point in time	$	7,499	$	-	$	7,499
Services transferred over time		-		43		43
	$	7,499	$	43	$	7,542
Operating Segment
Gevo	$	660	$	-	$	660
Gevo Development / Agri-Energy		6,839		43		6,882
	$	7,499	$	43	$	7,542
Geographic Region
United States	$	6,839	$	43	$	6,882
Other		660		-		660
	$	7,499	$	43	$	7,542

	Six Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	17,031	$	-	$	17,031
Hydrocarbon revenue		607		-		607
Grant and other revenue		25		-		25
	$	17,663	$	-	$	17,663
Timing of Revenue Recognition
Goods transferred at a point in time	$	17,638	$	-	$	17,638
Services transferred over time		25		-		25
	$	17,663	$	-	$	17,663
Operating Segment
Gevo	$	632	$	-	$	632
Gevo Development / Agri-Energy		17,031		-		17,031
	$	17,663	$	-	$	17,663
Geographic Region
United States	$	17,056	$	-	$	17,056
Other		607		-		607
	$	17,663	$	-	$	17,663

	Six Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	12,333	$	-	$	12,333
Hydrocarbon revenue		749		-		749
Grant and other revenue		-		75		75
	$	13,082	$	75	$	13,157
Timing of Revenue Recognition
Goods transferred at a point in time	$	13,082	$	-	$	13,082
Services transferred over time		-		75		75
	$	13,082	$	75	$	13,157
Operating Segment
Gevo	$	749	$	-	$	749
Gevo Development / Agri-Energy		12,333		75		12,408
	$	13,082	$	75	$	13,157
Geographic Region
United States	$	12,333	$	75	$	12,408
Other		749		-		749
	$	13,082	$	75	$	13,157

Goods transferred at a point-in-time.

For the

three

and

six

months ended

June 30, 2018

and

2017,

there were

no

contracts with customers for which consideration was variable or for which there were multiple performance obligations for any given contract. Accordingly, the entire transaction price is allocated to the goods transferred. As of

June 30, 2018

and

December 31, 2017,

there were

no

remaining unfulfilled or partially fulfilled performance obligations.

All goods transferred are tested to ensure product sold satisfies contractual product specifications prior to transfer. The customer obtains control of the goods when title and risk of loss for the goods has transferred, which in most cases is “

free-on-board, shipping point

”. All material contracts have payment terms of between

one

to

six

months, and there are

no

return or refund rights.

Services transferred over time.

For the three and

six

months ended

June 30, 2018

and

2017,

there were

no

contracts for which consideration was variable or for which there were multiple performance obligation for any given contract. Accordingly, the entire transaction price is allocated to the individual service performance obligation. As of

June 30, 2018

and

December 31, 2017,

there were

no

material unfulfilled or partially fulfilled performance obligations.

For the

three

and

six

months ended

June 30, 2018

and

2017,

revenues were recognized ratably over time, as the performance obligation was satisfied and benefit to the customer was transferred on a ratable basis over time.

Contract Assets and Trade Receivables.

As of

June 30, 2018

and

December 31, 2017,

there were

no

contract assets or liabilities as all customer amounts owed to the Company are unconditional and the Company does

not

receive payment in advance for its products. Accordingly, amounts owed by customers are classified as account receivables on the Company’s consolidated balance sheets. In addition, due to the nature of the Company’s contracts, there are

no

costs incurred or to be paid in the future that qualify for asset recognition as a cost to fulfill or obtain a contract. The Company did

not

incur any impairment losses on any receivables as all amounts owed were paid or current as of

June 30, 2018

and

December 31, 2017.

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Note 4 - Inventories

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

4.

Inventories

The following table sets forth the components of the Company’s inventory balances (in thousands).

	June 30,		December 31,
	2018		2017
Raw materials
Corn	$	188	$	189
Enzymes and other inputs		251		202
Nutrients		3		5
Finished goods
Ethanol		229		222
Isobutanol		897		1,122
Jet Fuels, Isooctane and Isooctene		484		524
Distiller's grains		49		59
Work in process - Agri-Energy		201		197
Work in process - Gevo		95		437
Spare parts		1,449		1,405
Total inventories	$	3,846	$	4,362

Work in process inventory includes unfinished jet fuel, isooctane, and isooctene inventory.

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Note 5 - Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Prepaid Expenses and Other Current Assets Disclosure [Text Block]

5.

Prepaid Expenses and Other Current Assets

The following table sets forth the components of the Company's prepaid expenses and other current assets in the consolidated balance sheets (in thousands).

	June 30, 2018		December 31, 2017
Amounts owed to the Company from sale of common stock	$	14,130	$	-
All other non-trade receivables		239		73
Prepaid assets		889		639
Total prepaid expenses and other current assets	$	15,258	$	712

The amounts owed to the Company from the sale of its common stock under the At-The-Market offering program related to sales that occurred on

June 29, 2018.

The Company received payment, in full on

July 3, 2018.

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Note 6 - Property, Plant and Equipment

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6.

Property, Plant and Equipment

The following table sets forth the Company’s property, plant and equipment by classification (in thousands).

	Useful Life		June 30,			December 31,
	(in years)		2018			2017
Construction in progress			$	537		$	479
Plant machinery and equipment		10		16,285			16,284
Site improvements		10		7,055			7,051
Luverne retrofit asset		20		70,842			70,842
Lab equipment, furniture and fixtures and vehicles		5		6,513			6,513
Demonstration plant		2		3,597			3,597
Buildings		10		2,543			2,543
Computer, office equipment and software		3		1,808			1,795
Leasehold improvements, pilot plant, land and support equipment		2-5		2,536			2,536
Total property, plant and equipment				111,716			111,640
Less accumulated depreciation and amortization				(44,536	)		(41,271	)
Property, plant and equipment, net			$	67,180		$	70,369

Included in cost of goods sold is depreciation of

$1.6

million and

$1.5

million during the

three

months ended

June 30, 2018

and

2017,

respectively, and

$3.1

million and

$3.1

million during the

six

months ended

June 30, 2018

and

2017,

respectively. 

Included in operating expenses is depreciation of

$0.1

million and

$0.1

million for the

three

months ended

June 30, 2018

and

$0.2

million and

$0.2

million during the

six

months ended

June 30, 2018

and

2017,

respectively. 

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Note 7 - Embedded Derivatives and Derivative Warrant Liabilities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Discussion of Hybrid Instruments and Embedded Derivatives [Text Block]

7.

Embedded Derivatives and Derivative Warrant Liabilities

 

2020

Notes Embedded Derivative

In

June 2017,

the Company issued its

12%

convertible senior secured notes due

2020

(the

“2020

Notes”) in exchange for its

12.0%

convertible senior secured notes due

2017

(the

“2017

Notes”). The

2020

Notes contain the following embedded derivatives: (i) a Make-Whole Payment (as defined in the indenture governing the

2020

Notes (the

“2020

Notes Indenture”)) upon either conversion or redemption; (ii) right to redeem the outstanding principal upon a Fundamental Change (as defined in the

2020

Notes Indenture); (iii) issuer rights to convert into a limited number of shares in any given

three

month period commencing

nine

-months from the issuance date and dependent on the stock price exceeding

150%

of the then in-effect conversion price over a

ten

-business day period; and (iv) holder rights to convert into either shares of the Company’s common stock or pre-funded warrants upon the election of the holders of the

2020

Notes.

Embedded derivatives are separated from the host contract and the

2020

Notes, and carried at fair value when: (a) the embedded derivative possesses economic characteristics that are

not

clearly and closely related to the economic characteristics of the host contract; and (b) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument. The Company has concluded that certain embedded derivatives within the

2020

Notes meet these criteria and, as such, must be valued separate and apart from the

2020

Notes as

one

embedded derivative and recorded at fair value each reporting period.

The Company used a binomial lattice model in order to estimate the fair value of the embedded derivative in the

2020

Notes. A binomial lattice model generates

two

probable outcomes, whether up or down, arising at each point in time, starting from the date of valuation until the maturity date. A lattice was initially used to determine if the

2020

Notes would be converted by the holder, called by the issuer, or held at each decision point. Within the binomial lattice model, the following assumptions are made: (i) the

2020

Notes will be converted by the holder if the conversion value plus the holder’s Make-Whole Payment is greater than the holding value; or (ii) the

2020

Notes will be called by the issuer if (a) the stock price exceeds

150%

of the then in-effect conversion price over a

ten

-business day period and (b) if the holding value is greater than the conversion value plus the Make-Whole Payment at the time. Using this binomial lattice model, the Company valued the embedded derivative using a “with-and-without method”, where the value of the

2020

Notes including the embedded derivative is defined as the “with”, and the value of the

2020

Notes excluding the embedded derivative is defined as the “without”. This method estimates the value of the embedded derivative by comparing the difference in the values between the

2020

Notes with the embedded derivative and the value of the

2020

Notes without the embedded derivative. The binomial lattice model requires the following inputs: (i) price of Gevo common stock; (ii) Conversion Rate (as defined in the

2020

Notes Indenture); (iii) Conversion Price (as defined in the

2020

Notes Indenture); (iv) maturity date; (v) risk-free interest rate; (vi) estimated stock volatility; and (vii) estimated credit spread for the Company.

As of

June 30, 2018

,

the estimated fair value of the embedded derivatives was

$0.7

million. Any change in the estimated fair value of the embedded derivatives represents an unrealized gain or loss, which has been recorded as

a

$0.5

million loss and a

$2.3

million gain from the change in fair value of embedded derivatives in the consolidated statements of operations for the

three

and

six

months ended

June 30, 2018

,

respectively. The Company recorded the estimated fair value of the embedded derivative with the

2020

Notes, net in the consolidated balance sheets.

The following table sets forth the inputs to the lattice model that were used to value the embedded derivatives.

	June 30,			December 31,
	2018			2017
Stock price	$	3.80			0.59
Conversion Rate per $1,000		67.9			1,358.90
Conversion Price	$	14.72		$	0.74
Maturity date		March 15, 2020		March 15, 2020
Risk-free interest rate		2.43	%		1.89	%
Estimated stock volatility		125	%		75	%
Estimated credit spread		27	%		28	%

Changes in certain inputs into the lattice model can have a significant impact on changes in the estimated fair value of the embedded featured within the

2020

Notes. For example, the estimated fair value will generally decrease with: (

1

) a decline in the stock price; (

2

) decreases in the estimated stock volatility; and (

3

) a decrease in the estimated credit spread.

2022

Notes Embedded Derivative

In

July 2012,

the Company issued

7.5%

convertible senior notes due

July 2022 (

the

“2022

Notes”) which contain the following embedded derivatives: (i) rights to convert into shares of the Company’s common stock, including upon a Fundamental Change (as defined in the indenture governing the

2022

Notes (the

“2022

Notes Indenture”)); and (ii) a Coupon Make-Whole Payment (as defined in the

2022

Notes Indenture) in the event of a conversion by the holders of the

2022

Notes prior to

July 1, 2017.

The Company had concluded that the embedded derivatives within the

2020

Notes required separation from the host instrument and was re-valued each reporting period, with changes in the fair value of the embedded derivative recognized as a component of the Company’s consolidated Statements of Operations. As of

December 31, 2017,

the fair value of the

2020

Notes embedded derivative was zero. In

January 2018,

the Company entered into a private exchange agreement with a holder of the

2022

Notes to exchange the remaining

$0.5

million of outstanding principal amount of the

2022

Notes for

39,016

shares of common stock. Upon completion of this exchange, the

2022

Notes were satisfied in their entirety and there are

no

remaining obligations under the

2022

Notes, including any remaining obligations under the

2022

Notes embedded derivative.

Derivative Warrant Liability

The following warrants were sold by the Company:

• In December 2013, the Company sold warrants to purchase 3,551 shares of the Company’s common stock (the “2013 Warrants”).

• In August 2014, the Company sold warrants to purchase 2,500 shares of the Company’s common stock (the “2014 Warrants”).

• In February 2015, the Company sold Series A warrants to purchase 5,542 shares of the Company’s common stock (the “Series A Warrants”) and Series B warrants to purchase 5,542 shares of the Company’s common stock (the “Series B Warrants”).

• In May 2015, the Company sold Series C warrants to purchase 1,075 shares of the Company’s common stock (the “Series C Warrants”).

• In December 2015, the Company sold Series D warrants to purchase 25,125 shares of the Company’s common stock (the “Series D Warrants”) and Series E warrants to purchase 20,000 shares of the Company’s common stock (the “Series E Warrants”).

• In April 2016, the Company sold Series F warrants to purchase 25,733 shares of the Company’s common stock (the “Series F Warrants”) and Series H warrants to purchase 51,465 shares of the Company’s common stock (the “Series H Warrants”), and pre-funded Series G warrants (the “Series G Warrants”) to purchase 16,429 shares of the Company’s common stock, pursuant to an underwritten public offering.

• In September 2016, the Company sold Series I warrants to purchase 35,650 shares of the Company’s common stock (the “Series I Warrant”) and pre-funded Series J warrants (“Series J Warrants”) to purchase 9,250 shares of the Company’s common stock, pursuant to an underwritten public offering.

• In February 2017, the Company sold Series K warrants to purchase 312,516 shares of the Company’s common stock (the “Series K Warrants”) and Series M warrants to purchase 312,500 shares of the Company’s common stock (the “Series M Warrants”), and pre-funded Series L warrants (the “Series L Warrants”) to purchase 28,500 shares of the Company’s common stock, pursuant to an underwritten public offering.

The following table sets forth information pertaining to shares issued upon the exercise of such warrants as of

June 30, 2018

:

	Issuance Date	Expiration Date	Exercise Price as of June 30, 2018			Shares Underlying Warrants on Issuance Date		Shares Issued upon Warrant Exercises as of June 30, 2018		Shares Underlying Warrants Outstanding as of June 30, 2018 (4)
2013 Warrants	12/16/2013	12/16/2018	$	85.05			3,551		762		2,789
2014 Warrants	08/05/2014	08/05/2019	$	65.50			2,500		1,526		974
Series A Warrants	02/03/2015	02/03/2020	$	3.80			5,542		5,222		320
Series B Warrants	02/03/2015	08/03/2015		-	(1)		5,542		5,542		-
Series C Warrants	05/19/2015	05/19/2020	$	53.43			1,075		-		1,075
Series D Warrants	12/11/2015	12/11/2020	$	40.00			25,125		25,078		47
Series E Warrants	12/11/2015	12/11/2020		-	(1)		20,000		20,000		-
Series F Warrants	04/01/2016	04/01/2021	$	40.00			25,733		11,692		14,041
Series G Warrants	04/01/2016	04/01/2017		-	(1)		16,429		16,429		-
Series H Warrants	04/01/2016	10/01/2016		-	(1)		51,465		51,465		-
Series I Warrants	09/13/2016	09/13/2021	$	220.00			35,650		-		35,650
Series J Warrants	09/13/2016	09/13/2017		-	(1)		9,250		9,250		-
Series K Warrants	02/17/2017	2/17/2022	$	3.80			312,516		308,510		4,006
Series L Warrants	02/17/2017	02/17/2018		-	(1)		28,500		28,500		-
Series M-A Warrants	02/17/2017	11/17/2017		-	(1), (2)		115,250		74,250		-
Series M-B Warrants	02/17/2017	11/17/2017		-	(1), (3)		197,250		197,250		-
							855,378		755,476		58,902

( 1 )	Warrants have either been fully exercised and/or expired as of  June 30, 2018 .
( 2 )	In October 2017, the exercise price of Series M warrants to purchase 74,250 shares of common stock were repriced between $12.00 and $13.00 per share. Of those warrants that were repriced, all were exercised in the fourth quarter of 2017, providing proceeds of $1.0 million.
( 3 )	In September 2017, the exercise price of Series M warrants to purchase 197,250 shares of common stock were repriced to $12.00 per share. Of those warrants that were repriced, all were exercised in the second half of 2017, providing proceeds of $2.4 million.
( 4 )	This table does not include equity-classified warrants to purchase 6 shares of common stock issued in 2011 , with strike price of $354 per share.

The agreements governing the above warrants include the following terms:

• certain warrants have exercise prices which are subject to adjustment for certain events, including the issuance of stock dividends on the Company’s common stock and, in certain instances, the issuance of the Company’s common stock or instruments convertible into the Company’s common stock at a price per share less than the exercise price of the respective warrants;

• warrant holders may exercise the warrants through a cashless exercise if, and only if, the Company does not have an effective registration statement then available for the issuance of the shares of its common stock. If an effective registration statement is available for the issuance of its common stock a holder may only exercise the warrants through a cash exercise;

• the exercise price and the number and type of securities purchasable upon exercise of the warrants are subject to adjustment upon certain corporate events, including certain combinations, consolidations, liquidations, mergers, recapitalizations, reclassifications, reorganizations, stock dividends and stock splits, a sale of all or substantially all of the Company’s assets and certain other events; and

• in the event of an “extraordinary transaction” or a “fundamental transaction” (as such terms are defined in the respective warrant agreements), generally including any merger with or into another entity, sale of all or substantially all of the Company’s assets, tender offer or exchange offer, or reclassification of its common stock, in which the successor entity (as defined in the respective warrant agreements) that assumes the successor entity is not a publicly traded company, the Company or any successor entity will pay the warrant holder, at such holder’s option, exercisable at any time concurrently with or within 30 days after the consummation of the extraordinary transaction or fundamental transaction, an amount of cash equal to the value of such holder’s warrants as determined in accordance with the Black Scholes option pricing model and the terms of the respective warrant agreement. In some circumstances, the Company or successor entity may be obligated to make such payments regardless of whether the successor entity that assumes the warrants is a publicly traded company.

During the

three

months ended

June 30, 2018,

Series A Warrants to purchase

251

shares of common stock and Series K Warrants to purchase

300,510

shares of common stock were exercised to purchase an aggregate of

300,761

shares of common stock, providing cash proceeds of approximately

$1.3

million.

As of

June 30, 2018

,

all of the Series B, E, G, H, J, L and M Warrants for which the exercise price had been adjusted were fully exercised or expired.

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Note 8 - Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8.

Accounts Payable and Accrued Liabilities

The following table sets forth the components of the Company’s accounts payable and accrued liabilities in the consolidated balance sheets (in thousands).

	June 30,		December 31,
	2018		2017
Accounts payable - trade	$	1,053	$	666
Accrued legal-related fees		82		274
Accrued employee compensation		655		700
Accrued interest		418		434
Accrued production fees		315		447
Accrued utilities and supplies payable		605		677
Accrued taxes payable		52		172
Customer deposit		-		436
Other accrued liabilities *		340		205
Total accounts payable and accrued liabilities	$	3,520	$	4,011

* Other accrued liabilities consist of franchise taxes, audit fees, and a variety of other expenses, none of which individually represent greater than five percent of total current liabilities.

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Note 9 - Debt

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

9.

Debt

2020

Notes

The following table sets forth information pertaining to the

2020

Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Principal Amount of 2020 Notes			Debt Discount			Debt Issue Costs			Total 2020 Notes			2020 Notes Embedded Derivative			Total 2020 Notes and 2020 Notes Embedded Derivative
Balance - December 31, 2017	$	16,657		$	(2,501	)	$	(665	)	$	13,491		$	5,224		$	18,715
Amortization of debt discount		-			566			-			566			-			566
Amortization of debt issue costs		-			-			150			150			-			150
Paid-in-kind interest		168			-			-			168			-			168
Change in fair value of 2020 Notes embedded derivative		-			-			-			-			(2,347	)		(2,347	)
Conversion of 2020 Notes into common stock		(3,186	)		428			114			(2,644	)		(2,193	)		(4,837	)
Balance - June 30, 2018	$	13,639		$	(1,507	)	$	(401	)	$	11,731		$	684		$	12,415

On

April 19, 2017,

the Company entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) with WB Gevo, LTD, the holder of the

2017

Notes (the “Holder”) and Whitebox Advisors LLC, in its capacity as representative of the Holder (“Whitebox”). The

2020

Notes were issued under that certain Indenture dated as of

June 6, 2014,

by and among the Company, the guarantors party thereto, and Wilmington Savings Fund Society, FSB, as trustee and as collateral trustee (as supplemented, the

“2017

Notes Indenture”), and Whitebox. Pursuant to the terms of the Purchase Agreement, the Holder, subject to certain conditions, including approval of the transaction by the Company’s stockholders (which was received on

June 15, 2017),

agreed to exchange all of the outstanding principal amount of the

2017

Notes for an equal principal amount of the

2020

Notes, plus an amount in cash equal to the accrued and unpaid interest (other than interest paid in kind) on the

2017

Notes (the “Exchange”). Pursuant to the Purchase Agreement, the Company also granted the Holder an option (the “Purchase Option”) to purchase up to an additional aggregate principal amount of

$5.0

million of

2020

Notes (the “Option Notes”), at a purchase price equal to the aggregate principal amount of such Option Notes purchased, having identical terms (other than with respect to the issue date and restrictions on transfer relating to compliance with applicable securities law) to the

2020

Notes issued, at any time on or within

ninety

(

90

) days of the closing of the Exchange. The right to purchase Option Notes expired in the

third

quarter of

2017.

On

June 20, 2017,

the Company completed the Exchange, terminated the

2017

Notes Indenture and cancelled the

2017

Notes. The Company recognized an approximately

$3.9

million loss which has been recorded as loss on exchange or conversion of debt within the consolidated statements of operations.

The

2020

Notes will mature on

March 15, 2020.

The

2020

Notes bear interest at a rate equal to

12%

per annum (with

2%

potentially payable as PIK Interest (as defined and described below) at the Company’s option), payable on

March 31,

June 30,

September 30,

and

December 31

of each year. Under certain circumstances, the Company has the option to pay a portion of the interest due on the

2020

Notes by either (a) increasing the principal amount of the

2020

Notes by the amount of interest then due or (b) issuing additional

2020

Notes with a principal amount equal to the amount of interest then due (interest paid in the manner set forth in (a) or (b) being referred to as “PIK Interest”). In the event the Company pays any portion of the interest due on the

2020

Notes as PIK Interest, the maximum aggregate principal amount of

2020

Notes that could be convertible into shares of the Company’s common stock will be increased. Additional shares of the Company’s common stock

may

also become issuable pursuant to the

2020

Notes in the event the Company is required to make certain make-whole payments as provided in the

2020

Notes Indenture.

The

2020

Notes are convertible into shares of the Company’s common stock, subject to certain terms and conditions. The initial conversion price of the

2020

Notes is equal to

$14.72

per share of common stock, or

.06795

shares of common stock per

$1

principal amount of

2020

Notes (the “Conversion Price”). In addition, upon certain equity financing transactions by the Company, the Holders will have a

one

-time right to reset the Conversion Price (the “Reset Provision”) (i) in the

first

ninety

(

90

) days following the Exchange Date, at a

25%

premium to the common stock price in the equity financing and (ii) after

ninety

(

90

) and to and including

one hundred eighty

(

180

) days following the closing of the Exchange, at a

35%

premium to the common stock share price in the equity financing. Following an exercise of the Reset Provision, the Holders will also have a right to consent to certain equity financings by the Company during the

one hundred eighty

(

180

) days following the closing of the Exchange.

Each Holder has agreed

not

to convert its

2020

Notes into shares of Company common stock to the extent that, after giving effect to such conversion, the number of shares of common stock beneficially owned by such Holder and its affiliates would exceed

4.99%

of Company common stock outstanding at the time of such conversion (the

“4.99%

Ownership Limitation”); provided that a Holder

may,

at its option and upon

sixty-one

(

61

) days’ prior notice to the Company, increase such threshold to

9.99%

(the

“9.99%

Ownership Limitation”). If a conversion of

2020

Notes by Whitebox would exceed the

4.99%

Ownership Limitation or the

9.99%

Ownership Limitation, as applicable, the Purchase Agreement contains a provision granting the holder a fully funded prepaid warrant for such common stock with a term of

nine

months, subject to a

six

month extension, which it can draw down from time to time.

Other than as set forth in the Reset Provision, the

2020

Notes do

not

contain any anti-dilution adjustments for future equity issuances that are below the Conversion Price, and adjustments to the Conversion Price will only generally be made in the event that there is a dividend or distribution paid on shares of the Company’s common stock, a subdivision, combination or reclassification of the Company’s common stock, or at the discretion of the Board of Directors of the Company in limited circumstances and subject to certain conditions.

Under certain circumstances, the Company

may

file

one

or more registration statements on Form S-

3

or amend filings in order to register shares of common stock for sale or resale, as necessary in connection with the

2020

Notes.

During the

three

months ended

June 30, 2018,

an aggregate of

260,793

shares of common stock were issued to the holder of the

2020

Notes upon the conversion of an aggregate of approximately

$3.2

million in outstanding principal and

$0.7

million in "make-whole" interest.

 

2022

Notes

The following table sets forth information pertaining to the

2022

Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Principal Amount of 2022 Notes
Balance - December 31, 2017	$	515
Exchange of 2022 Notes		(515	)
Balance – June 30, 2018	$	—

In

July 2012,

the Company sold

$45.0

million in aggregate principal amount of

2022

Notes, for net proceeds of

$40.9

million, after accounting for

$2.7

million and

$1.4

million of discounts and issue costs, respectively. The

2022

Notes bear interest at

7.5%

per annum, which is to be paid semi-annually in arrears on

January 

1

and

July 

1

of each year. The

2022

Notes were to mature on

July 

1,

2022,

unless earlier repurchased, redeemed or converted. During the

six

months ended

June 30, 2018

and

2017,

the Company recorded:

● $0.0 million and $0.08 million, respectively, of expense related to the amortization of debt discounts and issue costs,

● $0.02 million and $1.2 million, respectively, of expense related to the exchange of debt;

● $0.0 million and $0.02 million, respectively, of interest expense related to the 2022 Notes.

The amortization of debt issue costs, debt discounts and cash interest are included as a component of interest expense in the consolidated statements of operations. The Company amortized debt discounts and debt issue costs associated with the

2022

Notes using an effective interest rate of

40%

from the issuance date through

July 

1,

2017,

a

five

-year period, which represents the date the holders can require the Company to repurchase the

2022

Notes.

In

January 2018,

the Company entered into a private exchange agreement with a holder of the

2022

Notes to exchange the remaining

$0.5

million of outstanding principal amount of the

2022

Notes for

39,016

shares of common stock. Upon completion of this exchange, the

2022

Notes were satisfied in their entirety and there are

no

remaining obligations under the

2022

Notes.

XML

Note 10 - Gevo Development

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

10.

Gevo Development

The Company made capital contributions to Gevo Development of

 

$0.5

million and

$3.0

million during the

three

months ended

June 30, 2018

and

2017,

and

$1.8

million and

6.2

$

million, respectively, during the

six

months ended

June 30, 2018

and

2017, respectively.  

The following table sets forth (in thousands) the net loss incurred by Gevo Development (including Agri-Energy after

September 

22,

2010,

the closing date of the acquisition) which has been fully allocated to the Company’s capital contribution account based upon its capital contributions (for the period prior to

September 

2010

) and

100%

ownership (for the period after

September 

22,

2010

).

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	2018			2017			2018			2017
Gevo Development Net Loss	$	(2,062	)	$	(3,067	)	$	(4,579	)	$	(7,178	)

The accounts of Agri-Energy are consolidated within Gevo Development as a wholly-owned subsidiary which is then consolidated into Gevo.

XML

Note 11 - Stock-based Compensation

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11.

Stock-Based Compensation

The Company records stock-based compensation expense during the requisite service period for share-based payment awards granted to employees and non-employees.

The following table sets forth the Company’s stock-based compensation expense (in thousands) for the periods indicated.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options and employee stock purchase plan awards
Research and development	$	9	$	9	$	18	$	18
Selling, general and administrative		11		31		41		61
Restricted stock awards
Research and development		-		1		-		13
Selling, general and administrative		-		-		-		17
Restricted stock units
Research and development		17		17		34		35
Selling, general and administrative		17		39		58		81
Stock appreciation rights
Research and development		-		-		-		-
Selling, general and administrative		86		-		86		-
Total stock-based compensation	$	140	$	97	$	237	$	225

XML

Note 12 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12.

Commitments and Contingencies

Legal Matters

. From time to time, the Company has been and

may

again become involved in legal proceedings arising in the ordinary course of its business. The Company is

not

presently a party to any litigation that it believes to be material and is

not

aware of any pending or threatened litigation against the Company that it believes could have a material adverse effect on its business, operating results, financial condition or cash flows.

Leases

. During the year ended

December 

31,

2012,

the Company entered into a

six

-year software license agreement. The Company concluded that the software license agreement qualified as a capital lease. Accordingly, at

June 30, 2018

and

December 

31,

2017,

there were

no

capital lease obligations outstanding. 

The Company has an operating lease for its office, research, and production facility in Englewood, Colorado with a term expiring in

July 2021.

The Company also maintains a corporate apartment in Colorado, which has a lease term expiring during the next

12

months. The Company has an operating lease for the rail cars used by Agri-Energy in Luverne, Minnesota.

Rent expense for the

three

months ended

June 30, 2018

and

2017,

respectively, was

$0.4

and

$0.4,

and for the

six

months ended

June 30, 2018

and

2017

was

$0.9

 million and

$0.8

million, respectively.

The table below shows the future minimum payments under non-cancelable operating leases and at

June 30, 2018

(

in thousands):

	Operating Leases
2018 (remaining)	$	731
2019		943
2020		430
2021		218
2022 and thereafter		-
Total	$	2,322

On

July 27, 2018,

the Company entered into an Equipment Operating Lease and Services Agreement with Shockwave, LLC ("Shockwave") for

one

DGS Drying Machine (the "Dryer Agreement"). Pursuant to the terms of the Dryer Agreement, the Company is obligated to pay Shockwave

$1.0

million in

forty-eight

equal payments following the installation of the DGS Drying Machine. Also on

July 27, 2018,

the Company entered into an Equipment Operating Lease and Services Agreement with Shockwave for

one

Corn Fractionation Machine ("the Corn Fractionation Agreement"). Pursuant to the terms of the Corn Fractionation Agreement, the Company is obligated to pay Shockwave

$2.5

million in

forty-eight

equal payments following the Operation Date, as such term is defined in the Corn Fractionation Agreement.

Indemnifications

. In the ordinary course of its business, the Company makes certain indemnities under which it

may

be required to make payments in relation to certain transactions. As of

June 30, 2018

and

December 31, 2017,

the Company did

not

have any liabilities associated with indemnities.

Certain of the Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable, for which the carrying value on the Company’s balance sheet approximates their fair values due to the short maturities.

In addition, the Company, as permitted under Delaware law and in accordance with its amended and restated certificate of incorporation and amended and restated bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The duration of these indemnifications, commitments, and guarantees varies and, in certain cases, is indefinite. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that

may

enable it to recover a portion of any future amounts paid. The Company accrues for losses for any known contingent liability, including those that

may

arise from indemnification provisions, when future payment is probable.

No

such losses have been recorded to date.

Environmental Liabilities

. The Company’s operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company’s liability is probable and the costs can be reasonably estimated.

No

environmental liabilities have been recorded as of

June 30, 2018

or

December 31, 2017.

XML

Note 13 - Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

13.

Fair Value Measurements

Accounting standards define fair value, outline a framework for measuring fair value, and detail the required disclosures about fair value measurements. Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Standards establish a hierarchy in determining the fair market value of an asset or liability. The fair value hierarchy has

three

levels of inputs, both observable and unobservable. Standards require the utilization of the highest possible level of input to determine fair value.

Level 

1

– inputs include quoted market prices in an active market for identical assets or liabilities.

Level

2

– inputs are market data, other than Level

1,

that are observable either directly or indirectly. Level

2

inputs include quoted market prices for similar assets or liabilities, quoted market prices in an active market, and other observable information that can be corroborated by market data.

Level 

3

– inputs are unobservable and corroborated by little or

no

market data.

 These tables present the carrying value and fair value, by fair value hierarchy, of the Company's financial instruments, excluding cash and cash equivalents, accounts receivable and accounts payable at

June 30, 2018

and

December 31, 2017,

respectively (in thousands).

			Fair Value Measurement s at June 30, 2018 (in thousands)
	Fair Value at June 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	86	$	-	$	-	$	86
2020 Embedded Derivative Liability		684		-		-		684
Total Recurring Fair Value Measurements	$	770	$	-	$	-	$	770
Nonrecurring
Corn and finished goods inventory	$	1,747	$	188	$	1,559	$	-
Total Non-Recurring Fair Value Measurements	$	1,747	$	188	$	1,559	$	-

			Fair Value Measurements at December 31, 2017 (in thousands)
	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	1,951	$	–	$	–	$	1,951
2020 Notes Embedded Derivative Liability		5,224		–		–		5,224
Total Recurring Fair Value Measurements	$	7,175	$	–	$	–	$	7,175
Nonrecurring
Corn and finished goods inventory	$	1,916	$	189	$	1,727	$	–
Total Non-Recurring Fair Value Measurements	$	1,916	$	189	$	1,727	$	–

The following table provides changes to those fair value measurements using Level

3

inputs for the

six

months ended

June 30, 2018

.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands)
	Derivative Warrant Liability			2020 Notes Embedded Derivative
Opening Balance	$	1,951		$	5,224
Transfers into Level 3		–			–
Transfers out of Level 3		–			–
Total (gains) or losses for the period
Included in earnings		3,040			(2,347	)
Included in other comprehensive income		–			–
Purchases, issues, sales and settlements
Purchases		–			–
Issues		–			–
Sales		–			–
Settlements		(4,905	)		(2,193	)
Closing balance	$	86		$	684

Inventories.

The Company records its corn inventory at fair value only when the Company’s cost of corn purchased exceeds the market value for corn. The Company determines the market value of corn and dry distiller’s grain based upon Level

1

inputs using quoted market prices. The Company records its ethanol, isobutanol and hydrocarbon inventory at market using Level

2

inputs.

2020

Notes Embedded Derivative

. The Company had estimated the fair value of the embedded derivative on a stand-alone

basis to be

$0.7

million at J

une

30,

2018

and

$5.2

million at

December 31, 2017

based upon Level

3

inputs. Changes in the fair value of the embedded derivative is recognized each reporting period as a “

Change in fair value of

2020

Notes embedded derivative

” in the consolidated Statements of Operations and Statements of Cash Flows. See Note

6,

Embedded Derivatives and Derivative Warrant Liabilities, for the fair value inputs used to estimate the fair value of the embedded derivative.

Derivative Warrant Liability

. The Company values the Series K Warrants using a Monte-Carlo model (Level III), and all others using a Black-Scholes model, which have historically included additional inputs (Level III). The Company has estimated the fair value of the derivative warrant

liability to be

$0.1

million as of J

une

30,

2018

.

Changes in the fair value of the derivative warrant liability is recognized each reporting period as a “

Change in fair value of derivative warrant liability

” in the consolidated Statements of Operations and Statements of Cash Flows.

 While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

XML

Note 14 - Segments

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14.

Segments

The Company has determined that it has

two

operating segments: (i) Gevo segment; and (ii) Gevo Development/Agri-Energy segment. The Company organizes its business segments based on the nature of the products and services offered through each of the Company's consolidated legal entities. Transactions between segments are eliminated in consolidation.

Gevo Segment

. The Gevo segment is responsible for all research and development activities related to the future production of isobutanol, including the development of the Company's proprietary biocatalysts, the production and sale of biojet fuel, the Company's retrofit process and the next generation of chemicals and biofuels that will be based on the Company's isobutanol technology. The Gevo segment also develops, maintains and protects the Company's intellectual property portfolio, develops future markets for the Company's isobutanol and provides corporate oversight services.

Gevo Development/Agri-Energy Segment

. The Gevo Development/Agri-Energy segment is currently responsible for the operation of the Company's Luverne Facility and the production of ethanol, isobutanol and related products.

The tables below present revenues, loss from operations, interest expense, depreciation expense and acquisitions of plant, property and equipment by segment, in thousands.

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Gevo	$	607		$	660		$	632		$	749
Gevo Development / Agri-Energy		8,813			6,882			17,031			12,408
Consolidated	$	9,420		$	7,542		$	17,663		$	13,157
Loss from operations:
Gevo	$	(2,315	)	$	(3,091	)	$	(4,791	)	$	(6,156	)
Gevo Development / Agri-Energy		(2,064	)		(3,086	)		(4,587	)		(7,205	)
Consolidated	$	(4,379	)	$	(6,177	)	$	(9,378	)	$	(13,361	)
Interest expense:
Gevo	$	904		$	630		$	1,729		$	1,341
Gevo Development / Agri-Energy		-			-			-			-
Consolidated	$	904		$	630		$	1,729		$	1,341
Depreciation expense:
Gevo	$	76		$	127		$	160		$	264
Gevo Development / Agri-Energy		1,563			1,538			3,125			3,077
Consolidated	$	1,639		$	1,665		$	3,285		$	3,341
Acquisitions of plant, property and equipment:
Gevo	$	2		$	53		$	2		$	109
Gevo Development / Agri-Energy		54			265			121			882
Consolidated	$	56		$	318		$	123		$	991

	June 30,			December 31,
	2018			2017
Total assets (in thousands):
Gevo	$	115,116		$	87,507
Gevo Development / Agri-Energy		143,982			149,758
Intercompany eliminations		(143,068	)		(148,412	)
Consolidated	$	116,030		$	88,853

XML

Note 15 - Subsequent Events

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

15.

Subsequent Events

None

noted except for those events described in Notes

2,

5

and

125

to the unaudited consolidated financial statements for the

three

and

six

months ended

June 30, 2018.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Nature of Business [Policy Text Block]

Nature of Business

. Gevo, Inc. (“Gevo” or the “Company,” which, unless otherwise indicated, refers to Gevo, Inc. and its subsidiaries) is a renewable chemicals and next generation "low-carbon" fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Low-carbon fuels reduce the carbon intensity, or the level of greenhouse gas emissions, compared to standard fossil-based fuels across their lifecycle. The most common low-carbon fuels are renewable fuels. Gevo is focused on the development and production of mainstream fuels like gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. In addition to serving the low-carbon fuel markets, through Gevo's technology, Gevo can also serve markets for the production of chemical intermediate products for solvents, plastics and building block chemicals.

In addition to its ethanol production capabilities, the Company developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to make isobutanol and hydrocarbon products from isobutanol that can displace petrochemical incumbent products. The Company has been able to genetically engineer yeast, whereby the yeast produces isobutanol from carbohydrates. The Company’s technology converts its renewable isobutanol to alcohol-to-jet (“ATJ”), isooctane, isooctene, and para-xylene (building block for polyester) at its hydrocarbons demonstration plant located at South Hampton Resources located in Silsbee, Texas. In addition the Company’s production facility located in Luverne, Minnesota (the "Luverne Facility") has production capacity of about

20

MGPY of ethanol,

45

-

50

kilotons (“KT”) of animal feed, and

3

million pounds of corn oil.

As of

June 30, 2018,

the Company continues to engage in research and development, business development, business and financial planning, optimizing operations for low-carbon ethanol, isobutanol, and related hydrocarbons production and raising capital to fund future expansion of its Luverne Facility. Ultimately, the Company believes that the attainment of profitable operations is dependent upon future events, including (i) completing certain capital improvements at the Luverne Facility to produce low-carbon ethanol side-by-side with low-carbon isobutanol; (ii) completing its development activities resulting in commercial production and sales of isobutanol or isobutanol-derived products and/or technology, (ii) obtaining adequate financing to complete its development activities, (iii) obtaining adequate financing to build out low-carbon ethanol capacity and further isobutanol and hydrocarbon production capacity, (iv) gaining market acceptance and demand for its products and services, and (v) attracting and retaining qualified personnel.

Financial Condition [Policy Text Block]

Financial Condition

. For the

six

months ended

June 30, 2018

and

2017,

the Company incurred a consolidated net loss of

$14.0

 

million and

$16.1

 

million, respectively, and had an accumulated deficit of

$415.3

 

million at

June 30, 2018

.

The Company’s cash and cash equivalents at

June 30, 2018 

totaled

$27.0

million (does

not

include gross proceeds of

$14.9

million received under the at-the-market offering program after

June 30, 2018

due to timing of settlement of sales under the at-the-market offering program) and are expected to be used for the following purposes: (i) operating activities of the Luverne Facility; (ii) operating activities at the Company’s corporate headquarters in Colorado, including research and development work; (iii) capital improvements primarily associated with the Luverne Facility; (iv) costs associated with optimizing isobutanol production technology; (v) exploration of strategic alternatives and new financings; and (vi) debt service and repayment obligations.

The Company expects to incur future net losses as it continues to fund the development and commercialization of its product candidates. To date, the Company has financed its operations primarily with proceeds from multiple sales of equity and debt securities, borrowings under debt facilities and product sales. The Company’s transition to profitability is dependent upon, among other things, the successful development and commercialization of its product candidates and the achievement of a level of revenues adequate to support the Company’s cost structure. The Company

may

never achieve profitability or positive cash flows, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private and/or public offerings of debt or equity securities. In addition, the Company

may

seek additional capital through arrangements with strategic partners or from other sources, it

may

seek to restructure its debt and it will continue to address its cost structure. Notwithstanding, there can be

no

assurance that the Company will be able to raise additional funds, or achieve or sustain profitability or positive cash flows from operations. Existing working capital was

not

sufficient to meet the cash requirements to fund planned operations through the period that is

one

year after the date the Company’s audited

2017

year-end financial statements were issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s inability to continue as a going concern

may

potentially affect the Company’s rights and obligations under its outstanding senior secured convertible notes. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do

not

include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

At-the-market Offering Program, Policy [Policy Text Block]

At-the-Market Offering Program.

In

February 2018,

the Company commenced an at-the-market offering program, which initially allowed it to sell and issue up to

$5.0

million of shares of the Company’s common stock. During the

three

months ended

June 30, 2018,

the Company amended the at-the-market offering program and increased the available capacity by approximately

$84.9

million.

During the

six

months ended

June 30, 2018,

the Company issued

6,286,617

shares of common stock (after giving effect to the

one

-for-

twenty

reverse stock split effected on

June 1, 2018)

under the at-the-market offering for gross proceeds of

$37.4

million, of which

$14.5

million was

not

received until

July 3, 2018.

The Company paid commissions to its sales agent of approximately

$0.9

million and incurred other offering related expenses of approximately

$0.4

million during the

six

months ended

June 30, 2018.

During the

three

months ended

June 30, 2018,

the Company issued

6,281,409

shares of common stock (after giving effect to the

one

-for-

twenty

reverse stock split effected

June 1, 2018)

under the at-the-market offering for gross proceeds of

$37.4

million during the

three

months ended

June 30, 2018,

of which

$14.5

million was

not

received until

July 3, 2018.

The Company paid commissions to its sales agent of approximately

$0.9

million and the incurrence of other offering related expenses of

$0.2

million during the

three

months ended

June 30, 2018.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation.

The unaudited consolidated financial statements of the Company (which include the accounts of its wholly-owned subsidiaries Gevo Development and Agri-Energy) have been prepared, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do

not

include all information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company at

June 30, 2018

and are

not

necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included under the heading “Financial Statements and Supplementary Data” in Part II, Item 

8

of the Company’s Annual Report on Form

10

-K for the year ended

December 

31,

2017

(the “Annual Report”).

Reverse Stock Split [Policy Text Block]

Reverse Stock Split.

On

May 30,

20

18,

after receipt of stockholder approval, the Board of Directors approved an amendment to the Company's Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s common stock, par value

$0.01

per share, by a ratio of

one

-for-twenty. The reverse stock split became effective

June 1, 2018.

Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

   

Leases (“ASU

2016

-

02”

)

. In

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

-

02,

Topic

842

Leases

. ASU-

2016

-

02

requires leases to be reported on the financial statements. The objective is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU

2016

-

02

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Future minimum lease obligations for leases accounted for as operating leases at

June 30, 2018

totaled

$2.3

million. The Company is currently in the process of evaluating the impact of adoption of ASU

2016

-

02

on its consolidated financial statements.

Derivatives and Hedging (Topic

815

). Accounting for Certain Financial Instruments with Down Round Provisions (“ASU

2017

-

11”

).

In

July 2017,

the FASB issued ASU

No.

2017

-

11,

Derivatives and Hedging (Topic

815

) Accounting for Certain Financial Instruments with Down Round Provisions

which simplifies the accounting for certain equity-linked financial instruments and embedded features with down round features that reduce the exercise price when the pricing of a future round of financing is lower. Currently, the existence of such features require classification outside of equity and recognition of changes in the fair value of the instrument in earnings each reporting period. This standard eliminates the need to remeasure the instruments at fair value and allows classification within equity. This standard will

not

materially impact the Company, as the Company's liability classified financial instruments and embedded derivatives that require separation from the host instrument have features other than down-round provisions that require current accounting and classification.

Adoption of New Accounting Pronouncements

.

Revenue from Contracts with Customers (“ASU

2014

-

09”

)

. In

May 2014,

the FASB issued ASU

No.

2014

-

09,

Revenue from Contracts with Customers

. The objective of ASU

2014

-

09

is to outline a new, single comprehensive model to use in accounting for revenue arising from contracts with customers. The new revenue recognition model provides a

five

-step analysis for determining when and how revenue is recognized, depicting the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. ASU

2014

-

09

is effective for fiscal years and interim periods within those years beginning after

December 15, 2016.

On

July 9, 2015,

the FASB Board voted to delay the implementation of ASU

2014

-

09

by

one

year to

December 15, 2017.

In

April 2016,

the FASB issuedASU

No.

2016

-

10

Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing

(“ASU

2016

-

10”

) which provides additional clarification regarding

 Identifying Performance Obligations and Licensing

. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. As a result of the Company’s conclusions below, there is

no

impact upon revenue recognition, historical or otherwise, due to the adoption of ASU

2014

-

09

effective

January 1, 2018, and accordingly, there is no requirement to select a transition method.

The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants. The following provides the Company’s assessment on how this standard impacted the Company upon its adoption effective

January 1, 2018

Ethanol sales and related products revenues, net.

Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver

future goods or services. The Company has sold and continues to sell close to

100

% of its ethanol production to a single customer, representing

69%

and

75%

of total revenues for the

three

months ended

June 30, 2018

and

2017,

respectively,

and

71%

and

77%

of total revenues for the

six

months ended

June 30, 2018

and

2017,

resp

ectively,. The Company completed its review of this customer and consistent with prior assessments, does

not

expect there to be any impact on how the Company has and will continue to account for sales of ethanol to this customer. The Company further evaluated related products, including distiller’s grains, corn oil and isobutanol, and after its review, there is

no

significant impact either historically or prospectively upon the Company’s adoption of this standard on

January 1, 2018.

Hydrocarbon revenue.

Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and is sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are

no

future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services. The Company has determined that there will be

no

material impact as to how the Company has historically recognized or will recognize revenues upon adopting this standard on

January 1, 2018.

Grant and other revenues.

Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the

Northwest Advanced Renewables Alliance

(“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of these revenues since

2014.

After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does

not

qualify as a contract pursuant to Topic

606

“

Revenues from Contracts with Customers”

, which was established with the issuance of ASU

2014

-

09.

However, Topic

606

stipulates revenue recognition under these circumstances, and the Company determined that there is

no

change to revenue recognition upon adopting this standard on

January 1, 2018.

Statement of Cash Flows – Restricted Cash (“ASU

2016

-

18”

).

In

November 2016,

the FASB issued ASU

No.

2016

-

18,

Statement of Cash Flows – Restricted Cash

, which standardizes the classification and presentation of changes in restricted cash on the statement of cash flows. This amendment requires that that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This amendment was effective for public business entities for fiscal years beginning after

December 15, 2017,

but early adoption was permitted. This standard must be applied retrospectively for all periods presented. The Company’s adoption of this standard on

January 1, 2018

materially impacted the presentation of the Company’s previously presented

2017

statements of cash flows for the three, six,

nine

and

twelve

months ended

December 31, 2017,

as the Company released approximately

$2.6

million of restricted cash in

April 2017. Prior to the adoption of this standard, the 2017 beginning of period cash and cash equivalents totaled $27.9 million. After adoption of this standard, the 2017 beginning period of cash, cash equivalents,

and restricted cashtotaled

$30.5

million.

XML

Note 2 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	June 30,
	2018		2017
Warrants to purchase common stock - liability classified (see Note 7)		58,902		680,119
Warrant to purchase common stock - equity classified		6		72
2020 Notes		1,116,637		1,485,100
2022 Notes		–		21
Outstanding stock appreciation rights		68,638		–
Outstanding options to purchase common stock		358		3,846
Unvested restricted common stock		16		268
Total		1,244,557		2,169,426

XML

Note 3 - Revenues From Contracts With Customers Other Revenues (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	8,813	$	-	$	8,813
Hydrocarbon revenue		607		-		607
Grant and other revenue		-		-		-
	$	9,420	$	-	$	9,420
Timing of Revenue Recognition
Goods transferred at a point in time	$	9,420	$	-	$	9,420
Services transferred over time		-		-		-
	$	9,420	$	-	$	9,420
Operating Segment
Gevo	$	607	$	-	$	607
Gevo Development / Agri-Energy		8,813		-		8,813
	$	9,420	$	-	$	9,420
Geographic Region
United States	$	8,813	$	-	$	8,813
Other		607		-		607
	$	9,420	$	-	$	9,420

	Three Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	6,839	$	-	$	6,839
Hydrocarbon revenue		660		-		660
Grant and other revenue		-		43		43
	$	7,499	$	43	$	7,542
Timing of Revenue Recognition
Goods transferred at a point in time	$	7,499	$	-	$	7,499
Services transferred over time		-		43		43
	$	7,499	$	43	$	7,542
Operating Segment
Gevo	$	660	$	-	$	660
Gevo Development / Agri-Energy		6,839		43		6,882
	$	7,499	$	43	$	7,542
Geographic Region
United States	$	6,839	$	43	$	6,882
Other		660		-		660
	$	7,499	$	43	$	7,542

	Six Months Ended June 30, 2018
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	17,031	$	-	$	17,031
Hydrocarbon revenue		607		-		607
Grant and other revenue		25		-		25
	$	17,663	$	-	$	17,663
Timing of Revenue Recognition
Goods transferred at a point in time	$	17,638	$	-	$	17,638
Services transferred over time		25		-		25
	$	17,663	$	-	$	17,663
Operating Segment
Gevo	$	632	$	-	$	632
Gevo Development / Agri-Energy		17,031		-		17,031
	$	17,663	$	-	$	17,663
Geographic Region
United States	$	17,056	$	-	$	17,056
Other		607		-		607
	$	17,663	$	-	$	17,663

	Six Months Ended June 30, 2017
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	12,333	$	-	$	12,333
Hydrocarbon revenue		749		-		749
Grant and other revenue		-		75		75
	$	13,082	$	75	$	13,157
Timing of Revenue Recognition
Goods transferred at a point in time	$	13,082	$	-	$	13,082
Services transferred over time		-		75		75
	$	13,082	$	75	$	13,157
Operating Segment
Gevo	$	749	$	-	$	749
Gevo Development / Agri-Energy		12,333		75		12,408
	$	13,082	$	75	$	13,157
Geographic Region
United States	$	12,333	$	75	$	12,408
Other		749		-		749
	$	13,082	$	75	$	13,157

XML

Note 4 - Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30,		December 31,
	2018		2017
Raw materials
Corn	$	188	$	189
Enzymes and other inputs		251		202
Nutrients		3		5
Finished goods
Ethanol		229		222
Isobutanol		897		1,122
Jet Fuels, Isooctane and Isooctene		484		524
Distiller's grains		49		59
Work in process - Agri-Energy		201		197
Work in process - Gevo		95		437
Spare parts		1,449		1,405
Total inventories	$	3,846	$	4,362

XML

Note 5 - Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	June 30, 2018		December 31, 2017
Amounts owed to the Company from sale of common stock	$	14,130	$	-
All other non-trade receivables		239		73
Prepaid assets		889		639
Total prepaid expenses and other current assets	$	15,258	$	712

XML

Note 6 - Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Property, Plant and Equipment [Table Text Block]

	Useful Life		June 30,			December 31,
	(in years)		2018			2017
Construction in progress			$	537		$	479
Plant machinery and equipment		10		16,285			16,284
Site improvements		10		7,055			7,051
Luverne retrofit asset		20		70,842			70,842
Lab equipment, furniture and fixtures and vehicles		5		6,513			6,513
Demonstration plant		2		3,597			3,597
Buildings		10		2,543			2,543
Computer, office equipment and software		3		1,808			1,795
Leasehold improvements, pilot plant, land and support equipment		2-5		2,536			2,536
Total property, plant and equipment				111,716			111,640
Less accumulated depreciation and amortization				(44,536	)		(41,271	)
Property, plant and equipment, net			$	67,180		$	70,369

XML

Note 7 - Embedded Derivatives and Derivative Warrant Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Assumptions Used [Table Text Block]

	June 30,			December 31,
	2018			2017
Stock price	$	3.80			0.59
Conversion Rate per $1,000		67.9			1,358.90
Conversion Price	$	14.72		$	0.74
Maturity date		March 15, 2020		March 15, 2020
Risk-free interest rate		2.43	%		1.89	%
Estimated stock volatility		125	%		75	%
Estimated credit spread		27	%		28	%

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Issuance Date	Expiration Date	Exercise Price as of June 30, 2018			Shares Underlying Warrants on Issuance Date		Shares Issued upon Warrant Exercises as of June 30, 2018		Shares Underlying Warrants Outstanding as of June 30, 2018 (4)
2013 Warrants	12/16/2013	12/16/2018	$	85.05			3,551		762		2,789
2014 Warrants	08/05/2014	08/05/2019	$	65.50			2,500		1,526		974
Series A Warrants	02/03/2015	02/03/2020	$	3.80			5,542		5,222		320
Series B Warrants	02/03/2015	08/03/2015		-	(1)		5,542		5,542		-
Series C Warrants	05/19/2015	05/19/2020	$	53.43			1,075		-		1,075
Series D Warrants	12/11/2015	12/11/2020	$	40.00			25,125		25,078		47
Series E Warrants	12/11/2015	12/11/2020		-	(1)		20,000		20,000		-
Series F Warrants	04/01/2016	04/01/2021	$	40.00			25,733		11,692		14,041
Series G Warrants	04/01/2016	04/01/2017		-	(1)		16,429		16,429		-
Series H Warrants	04/01/2016	10/01/2016		-	(1)		51,465		51,465		-
Series I Warrants	09/13/2016	09/13/2021	$	220.00			35,650		-		35,650
Series J Warrants	09/13/2016	09/13/2017		-	(1)		9,250		9,250		-
Series K Warrants	02/17/2017	2/17/2022	$	3.80			312,516		308,510		4,006
Series L Warrants	02/17/2017	02/17/2018		-	(1)		28,500		28,500		-
Series M-A Warrants	02/17/2017	11/17/2017		-	(1), (2)		115,250		74,250		-
Series M-B Warrants	02/17/2017	11/17/2017		-	(1), (3)		197,250		197,250		-
							855,378		755,476		58,902

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Note 8 - Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	June 30,		December 31,
	2018		2017
Accounts payable - trade	$	1,053	$	666
Accrued legal-related fees		82		274
Accrued employee compensation		655		700
Accrued interest		418		434
Accrued production fees		315		447
Accrued utilities and supplies payable		605		677
Accrued taxes payable		52		172
Customer deposit		-		436
Other accrued liabilities *		340		205
Total accounts payable and accrued liabilities	$	3,520	$	4,011

XML

Note 9 - Debt (Tables)

6 Months Ended

Jun. 30, 2018

Convertible 2020 Notes [Member]

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	Principal Amount of 2020 Notes			Debt Discount			Debt Issue Costs			Total 2020 Notes			2020 Notes Embedded Derivative			Total 2020 Notes and 2020 Notes Embedded Derivative
Balance - December 31, 2017	$	16,657		$	(2,501	)	$	(665	)	$	13,491		$	5,224		$	18,715
Amortization of debt discount		-			566			-			566			-			566
Amortization of debt issue costs		-			-			150			150			-			150
Paid-in-kind interest		168			-			-			168			-			168
Change in fair value of 2020 Notes embedded derivative		-			-			-			-			(2,347	)		(2,347	)
Conversion of 2020 Notes into common stock		(3,186	)		428			114			(2,644	)		(2,193	)		(4,837	)
Balance - June 30, 2018	$	13,639		$	(1,507	)	$	(401	)	$	11,731		$	684		$	12,415

	Principal Amount of 2022 Notes
Balance - December 31, 2017	$	515
Exchange of 2022 Notes		(515	)
Balance – June 30, 2018	$	—

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Note 10 - Gevo Development (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block]

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	2018			2017			2018			2017
Gevo Development Net Loss	$	(2,062	)	$	(3,067	)	$	(4,579	)	$	(7,178	)

XML

Note 11 - Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options and employee stock purchase plan awards
Research and development	$	9	$	9	$	18	$	18
Selling, general and administrative		11		31		41		61
Restricted stock awards
Research and development		-		1		-		13
Selling, general and administrative		-		-		-		17
Restricted stock units
Research and development		17		17		34		35
Selling, general and administrative		17		39		58		81
Stock appreciation rights
Research and development		-		-		-		-
Selling, general and administrative		86		-		86		-
Total stock-based compensation	$	140	$	97	$	237	$	225

XML

Note 12 - Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	Operating Leases
2018 (remaining)	$	731
2019		943
2020		430
2021		218
2022 and thereafter		-
Total	$	2,322

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Note 13 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

			Fair Value Measurement s at June 30, 2018 (in thousands)
	Fair Value at June 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	86	$	-	$	-	$	86
2020 Embedded Derivative Liability		684		-		-		684
Total Recurring Fair Value Measurements	$	770	$	-	$	-	$	770
Nonrecurring
Corn and finished goods inventory	$	1,747	$	188	$	1,559	$	-
Total Non-Recurring Fair Value Measurements	$	1,747	$	188	$	1,559	$	-

			Fair Value Measurements at December 31, 2017 (in thousands)
	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring:
Derivative Warrant Liability	$	1,951	$	–	$	–	$	1,951
2020 Notes Embedded Derivative Liability		5,224		–		–		5,224
Total Recurring Fair Value Measurements	$	7,175	$	–	$	–	$	7,175
Nonrecurring
Corn and finished goods inventory	$	1,916	$	189	$	1,727	$	–
Total Non-Recurring Fair Value Measurements	$	1,916	$	189	$	1,727	$	–

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands)
	Derivative Warrant Liability			2020 Notes Embedded Derivative
Opening Balance	$	1,951		$	5,224
Transfers into Level 3		–			–
Transfers out of Level 3		–			–
Total (gains) or losses for the period
Included in earnings		3,040			(2,347	)
Included in other comprehensive income		–			–
Purchases, issues, sales and settlements
Purchases		–			–
Issues		–			–
Sales		–			–
Settlements		(4,905	)		(2,193	)
Closing balance	$	86		$	684

XML

Note 14 - Segments (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Gevo	$	607		$	660		$	632		$	749
Gevo Development / Agri-Energy		8,813			6,882			17,031			12,408
Consolidated	$	9,420		$	7,542		$	17,663		$	13,157
Loss from operations:
Gevo	$	(2,315	)	$	(3,091	)	$	(4,791	)	$	(6,156	)
Gevo Development / Agri-Energy		(2,064	)		(3,086	)		(4,587	)		(7,205	)
Consolidated	$	(4,379	)	$	(6,177	)	$	(9,378	)	$	(13,361	)
Interest expense:
Gevo	$	904		$	630		$	1,729		$	1,341
Gevo Development / Agri-Energy		-			-			-			-
Consolidated	$	904		$	630		$	1,729		$	1,341
Depreciation expense:
Gevo	$	76		$	127		$	160		$	264
Gevo Development / Agri-Energy		1,563			1,538			3,125			3,077
Consolidated	$	1,639		$	1,665		$	3,285		$	3,341
Acquisitions of plant, property and equipment:
Gevo	$	2		$	53		$	2		$	109
Gevo Development / Agri-Energy		54			265			121			882
Consolidated	$	56		$	318		$	123		$	991

	June 30,			December 31,
	2018			2017
Total assets (in thousands):
Gevo	$	115,116		$	87,507
Gevo Development / Agri-Energy		143,982			149,758
Intercompany eliminations		(143,068	)		(148,412	)
Consolidated	$	116,030		$	88,853

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Note 1 - Nature of Business, Financial Condition, Basis of Presentation and Reverse Stock Split (Details Textual)			1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 03, 2018 shares	Jun. 01, 2018	Apr. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($)	May 30, 2018 $ / shares	Feb. 28, 2018 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)
Net Income (Loss) Attributable to Parent, Total				$ (11,492,000)	$ (10,158,000)	$ (13,994,000)	$ (16,091,000)
Retained Earnings (Accumulated Deficit), Ending Balance				(415,344,000)		(415,344,000)				$ (401,350,000)
Cash and Cash Equivalents, at Carrying Value, Ending Balance				$ 27,030,000		27,030,000				$ 11,553,000
Proceeds from At-the-Market Offering Program						14,900,000
Proceeds from Issuance of Common Stock						$ 22,415,000	11,044,000
Common Stock, Par or Stated Value Per Share | $ / shares				$ 0.01		$ 0.01		$ 0.01		$ 0.01
Operating Leases, Future Minimum Payments Due, Total				$ 2,322,000		$ 2,322,000
Increase (Decrease) Restricted Cash Held as Collateral			$ (2,600,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Ending Balance				$ 27,030,000	$ 16,303,000	$ 27,030,000	$ 16,303,000			$ 11,553,000	$ 30,499,000
Previously Reported [Member] | Accounting Standards Update 2016-18 [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Ending Balance											$ 27,900,000
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		20
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Ethanol [Member]
Concentration Risk, Percentage				69.00%	75.00%	71.00%	77.00%
Number of Customers						1
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer One [Member] | Ethanol [Member]
Concentration Risk, Percentage						100.00%
At-the-market Offering [Member]
Offering of Stock, Authorized Amount									$ 5,000,000
Increase (Decrease) in At-the-Market Offering of Stock				$ 84,900,000
Stock Issued During Period, Shares, New Issues | shares	14,500,000			6,281,409		6,286,617
Proceeds from Issuance of Common Stock				$ 37.40		$ 37,400,000
Payments of Stock Issuance Costs				200,000		400,000
At-the-market Offering [Member] | Sales Agent [Member]
Payments of Stock Issuance Costs				$ 900,000		$ 900,000

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Note 2 - Earnings Per Share (Details Textual)	1 Months Ended
	Aug. 07, 2018 shares
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues	95,000

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Note 2 - Earnings Per Share - Securities that Potentially Dilute Calculation of Diluted Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive securities (in shares)	1,244,557	2,169,426
Stock Appreciation Rights (SARs) [Member]
Antidilutive securities (in shares)	68,638
Employee Stock Option [Member]
Antidilutive securities (in shares)	358	3,846
Restricted Stock [Member]
Antidilutive securities (in shares)	16	268
Convertible 2017 Notes [Member]
Antidilutive securities (in shares)	1,116,637	1,485,100
Convertible 2020 Notes [Member]
Antidilutive securities (in shares)		21
Warrant [Member]
Antidilutive securities (in shares)	58,902	680,119
Warrants Classified as Equity [Member]
Antidilutive securities (in shares)	6	72

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Note 3 - Revenues From Contracts With Customers Other Revenues (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax	$ 9,420	$ 7,499	$ 17,663	$ 13,082
Contract with Customer, Liability, Total	0		0		$ 0
Contract with Customer, Asset, Credit Loss Expense			0		0
Contract with Customer, Asset, Net, Total	0		0		0
Transferred at Point in Time [Member]
Revenue from Contract with Customer, Including Assessed Tax	9,420	7,499	17,638	13,082
Transferred at Point in Time [Member] | Variable Consideration or Multiple Performance Obligations [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Revenue, Remaining Performance Obligation, Amount	0		0		0
Transferred over Time [Member]
Revenue from Contract with Customer, Including Assessed Tax			25
Transferred over Time [Member] | Variable Consideration or Multiple Performance Obligations [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	$ 0	0	$ 0
Revenue, Remaining Performance Obligation, Amount	$ 0		$ 0		$ 0

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Note 3 - Revenues From Contracts With Customers Other Revenues - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue	$ 9,420	$ 7,499	$ 17,663	$ 13,082
Other revenues		43		75
Total revenues	9,420	7,542	17,663	13,157
UNITED STATES
Revenue	8,813	6,839	17,056	12,333
Other revenues		43		75
Total revenues	8,813	6,882	17,056	12,408
All Other Countries [Member]
Revenue	607	660	607	749
Other revenues
Total revenues	607	660	607	749
Gevo [Member]
Revenue	607	660	632	749
Other revenues
Total revenues	607	660	632	749
Gevo Development / Agri-Energy [Member]
Revenue	8,813	6,839	17,031	12,333
Other revenues		43		75
Total revenues	8,813	6,882	17,031	12,408
Transferred at Point in Time [Member]
Revenue	9,420	7,499	17,638	13,082
Other revenues
Total revenues	9,420	7,499	17,638	13,082
Transferred over Time [Member]
Revenue			25
Other revenues		43		75
Total revenues		43	25	75
Ethanol Sales and Related Products [Member]
Revenue	8,813	6,839	17,031	12,333
Other revenues
Total revenues	8,813	6,839	17,031	12,333
Hydrocarbon [Member]
Revenue	607	660	607	749
Other revenues
Total revenues	607	660	607	749
Grant and Other [Member]
Revenue			25
Other revenues		43		75
Total revenues		$ 43	$ 25	$ 75

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Note 4 - Inventories - Components of Inventory Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Finished goods:
Spare parts	$ 1,449	$ 1,405
Total inventories	3,846	4,362
Corn [Member]
Raw materials:
Raw materials	188	189
Enzymes and Other Inputs [Member]
Raw materials:
Raw materials	251	202
Nutrients [Member]
Raw materials:
Raw materials	3	5
Ethanol [Member]
Finished goods:
Finished goods	229	222
Isobutanol [Member]
Finished goods:
Finished goods	897	1,122
Jet Fuels, Isooctane and Isooctene [Member]
Finished goods:
Finished goods	484	524
Distiller's Grains [Member]
Finished goods:
Finished goods	49	59
Agri-Energy [Member]
Finished goods:
Work in process	201	197
Gevo [Member]
Finished goods:
Work in process	$ 95	$ 437

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Note 5 - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Amounts owed to the Company from sale of common stock	$ 14,130
All other non-trade receivables	239	73
Prepaid assets	889	639
Total prepaid expenses and other current assets	$ 15,258	$ 712

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Note 6 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cost, Depreciation	$ 1.6	$ 1.5	$ 3.1	$ 3.1
Depreciation, Nonproduction	$ 0.1	$ 0.1	$ 0.2	$ 0.2

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Note 6 - Property, Plant and Equipment - Property, Plant and Equipment by Classification (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Property, plant, and equipment, gross	$ 111,716	$ 111,640
Less accumulated depreciation and amortization	(44,536)	(41,271)
Property, plant and equipment, net	67,180	70,369
Construction in Progress [Member]
Property, plant, and equipment, gross	537	479
Machinery and Equipment [Member]
Property, plant, and equipment, gross	$ 16,285	16,284
Property, plant and equipment, useful life (Year)	10 years
Site Improvement [Member]
Property, plant, and equipment, gross	$ 7,055	7,051
Property, plant and equipment, useful life (Year)	10 years
Retrofit Assets [Member]
Property, plant, and equipment, gross	$ 70,842	70,842
Property, plant and equipment, useful life (Year)	20 years
Lab Equipment, Furniture and Fixtures, and Vehicles [Member]
Property, plant, and equipment, gross	$ 6,513	6,513
Property, plant and equipment, useful life (Year)	5 years
Demonstration Plant [Member]
Property, plant, and equipment, gross	$ 3,597	3,597
Property, plant and equipment, useful life (Year)	2 years
Building [Member]
Property, plant, and equipment, gross	$ 2,543	2,543
Property, plant and equipment, useful life (Year)	10 years
Computer, Office Equipment, and Software [Member]
Property, plant, and equipment, gross	$ 1,808	1,795
Property, plant and equipment, useful life (Year)	3 years
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 2,536	$ 2,536
Leasehold Improvements [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	2 years
Leasehold Improvements [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	5 years

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Note 7 - Embedded Derivatives and Derivative Warrant Liabilities (Details Textual) $ / shares in Units, $ in Thousands		1 Months Ended				3 Months Ended				6 Months Ended				12 Months Ended
		Jan. 31, 2018 USD ($) shares	Oct. 31, 2017 $ / shares shares	Sep. 30, 2017 $ / shares shares	Jun. 30, 2017	Jun. 30, 2018 USD ($) $ / shares shares		Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares		Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2011 $ / shares shares	Apr. 19, 2017	Feb. 28, 2017 shares	Feb. 17, 2017 shares	Sep. 13, 2016 shares	Apr. 01, 2016 shares	Dec. 11, 2015 shares	May 19, 2015 shares	Feb. 03, 2015 shares	Aug. 05, 2014 shares	Dec. 16, 2013 shares	Jul. 31, 2012
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total | $						$ (511)			$ (1,662)	$ 2,347			$ (1,662)
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						58,902	[1]			58,902	[1]					855,378
Proceeds from Warrant Exercises | $										$ 1,263			$ 6
Class of Warrant or Right, Issued During Period														6
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares														$ 354
2013 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						2,789	[1]			2,789	[1]													3,551
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 85.05				$ 85.05
2014 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						974	[1]			974	[1]												2,500
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 65.50				$ 65.50
Series A Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						320	[1]			320	[1]											5,542
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 3.80				$ 3.80
Class of Warrant or Right, Exercised During Period						251
Series B Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]											5,542
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series C Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						1,075	[1]			1,075	[1]										1,075
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 53.43				$ 53.43
Series D Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						47	[1]			47	[1]									25,125
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 40				$ 40
Series E Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]									20,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series F Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						14,041	[1]			14,041	[1]								25,733
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 40				$ 40
Series H Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]								51,465
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series G Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]								16,429
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series I Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						35,650	[1]			35,650	[1]							35,650
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 220				$ 220
Series J Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]							9,250
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series K Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						4,006	[1]			4,006	[1]						312,516
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares						$ 3.80				$ 3.80
Class of Warrant or Right, Exercised During Period						300,510
Series M Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights																	312,500
Warrants Issued to Purchase Additional Shares of Common Stock			74,250	197,250
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares				$ 12
Proceeds from Warrant Exercises | $								$ 1,000				$ 2,400
Series M Warrants [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 12
Series M Warrants [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 13
Series L Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							[1]				[1]						28,500
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	[2]
Series A and K Warrants [Member]
Proceeds from Warrant Exercises | $						$ 1,300
Class of Warrant or Right, Exercised During Period						300,761
Common Stock [Member]
Debt Conversion, Converted Instrument, Shares Issued		39,016
Convertible 2020 Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage					12.00%				12.00%				12.00%		12.00%
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger					150.00%
Debt Instrument, Convertible, Threshold Consecutive Trading Days					10
Number of Embedded Derivative					1
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | $						$ 700		5,200		$ 700		5,200
Convertible 2020 Notes [Member] | Embedded Derivative, 2020 Convertible Notes [Member]
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total | $						$ 500				$ 2,300
Convertible 2022 Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage																									7.50%
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | $								$ 0				$ 0
Debt Conversion, Original Debt, Amount | $		$ 500
Debt Conversion, Converted Instrument, Shares Issued		39,016

[1] This table does not include equity-classified warrants to purchase 6 shares of common stock issued in 2011, with strike price of $354 per share.

[2] Warrants have either been fully exercised and/or expired as of June 30, 2018.

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Note 7 - Embedded Derivatives and Derivative Warrant Liabilities - Schedule of Inputs to Lattice Model Used to Value Embedded Derivatives (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Stock price (in dollars per share)	$ 3.80	$ 0.59
Conversion Rate per $1,000 (in shares) | shares	67.9	1,358.9
Conversion Price (in dollars per share)	$ 14.72	$ 0.74
Maturity date	Mar. 15, 2020	Mar. 15, 2020
Measurement Input, Risk Free Interest Rate [Member]
Risk-free interest rate	0.0243	0.0189
Measurement Input, Price Volatility [Member]
Risk-free interest rate	1.25	0.75
Measurement Input, Entity Credit Risk [Member]
Risk-free interest rate	0.27	0.28

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Note 7- Embedded Derivatives and Derivative Warrant Liabilities - Schedule of Shares Issued Upon Exercise of Warrants (Details) - $ / shares		6 Months Ended
		Jun. 30, 2018		Feb. 28, 2017	Feb. 17, 2017	Sep. 13, 2016	Apr. 01, 2016	Dec. 11, 2015	May 19, 2015	Feb. 03, 2015	Aug. 05, 2014	Dec. 16, 2013
Shares Underlying Warrants (in shares)		58,902	[1]	855,378
Shares Issues Upon Warrant Exercises (in shares)		755,476
2013 Warrants [Member]
Warrant, Issuance Date		Dec. 16, 2013
Warrants, Expiration date		Dec. 16, 2018
Warrant Exercise Price (in dollars per share)		$ 85.05
Shares Underlying Warrants (in shares)		2,789	[1]									3,551
Shares Issues Upon Warrant Exercises (in shares)		762
2014 Warrants [Member]
Warrant, Issuance Date		Aug. 05, 2014
Warrants, Expiration date		Aug. 05, 2019
Warrant Exercise Price (in dollars per share)		$ 65.50
Shares Underlying Warrants (in shares)		974	[1]								2,500
Shares Issues Upon Warrant Exercises (in shares)		1,526
Series A Warrants [Member]
Warrant, Issuance Date		Feb. 03, 2015
Warrants, Expiration date		Feb. 03, 2020
Warrant Exercise Price (in dollars per share)		$ 3.80
Shares Underlying Warrants (in shares)		320	[1]							5,542
Shares Issues Upon Warrant Exercises (in shares)		5,222
Series B Warrants [Member]
Warrant, Issuance Date		Feb. 03, 2015
Warrants, Expiration date		Aug. 03, 2015
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]							5,542
Shares Issues Upon Warrant Exercises (in shares)		5,542
Series C Warrants [Member]
Warrant, Issuance Date		May 19, 2015
Warrants, Expiration date		May 19, 2020
Warrant Exercise Price (in dollars per share)		$ 53.43
Shares Underlying Warrants (in shares)		1,075	[1]						1,075
Shares Issues Upon Warrant Exercises (in shares)
Series D Warrants [Member]
Warrant, Issuance Date		Dec. 11, 2015
Warrants, Expiration date		Dec. 11, 2020
Warrant Exercise Price (in dollars per share)		$ 40
Shares Underlying Warrants (in shares)		47	[1]					25,125
Shares Issues Upon Warrant Exercises (in shares)		25,078
Series E Warrants [Member]
Warrant, Issuance Date		Dec. 11, 2015
Warrants, Expiration date		Dec. 11, 2020
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]					20,000
Shares Issues Upon Warrant Exercises (in shares)		20,000
Series F Warrants [Member]
Warrant, Issuance Date		Apr. 01, 2016
Warrants, Expiration date		Apr. 01, 2021
Warrant Exercise Price (in dollars per share)		$ 40
Shares Underlying Warrants (in shares)		14,041	[1]				25,733
Shares Issues Upon Warrant Exercises (in shares)		11,692
Series G Warrants [Member]
Warrant, Issuance Date		Apr. 01, 2016
Warrants, Expiration date		Apr. 01, 2017
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]				16,429
Shares Issues Upon Warrant Exercises (in shares)		16,429
Series H Warrants [Member]
Warrant, Issuance Date		Apr. 01, 2016
Warrants, Expiration date		Oct. 01, 2016
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]				51,465
Shares Issues Upon Warrant Exercises (in shares)		51,465
Series I Warrants [Member]
Warrant, Issuance Date		Sep. 13, 2016
Warrants, Expiration date		Sep. 13, 2021
Warrant Exercise Price (in dollars per share)		$ 220
Shares Underlying Warrants (in shares)		35,650	[1]			35,650
Shares Issues Upon Warrant Exercises (in shares)
Series J Warrants [Member]
Warrant, Issuance Date		Sep. 13, 2016
Warrants, Expiration date		Sep. 13, 2017
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]			9,250
Shares Issues Upon Warrant Exercises (in shares)		9,250
Series K Warrants [Member]
Warrant, Issuance Date		Feb. 17, 2017
Warrants, Expiration date		Feb. 17, 2022
Warrant Exercise Price (in dollars per share)		$ 3.80
Shares Underlying Warrants (in shares)		4,006	[1]		312,516
Shares Issues Upon Warrant Exercises (in shares)		308,510
Series L Warrants [Member]
Warrant, Issuance Date		Feb. 17, 2017
Warrants, Expiration date		Feb. 17, 2018
Warrant Exercise Price (in dollars per share)	[2]
Shares Underlying Warrants (in shares)			[1]		28,500
Shares Issues Upon Warrant Exercises (in shares)		28,500
Series M-A Warrants [Member]
Warrant, Issuance Date		Feb. 17, 2017
Warrants, Expiration date		Nov. 17, 2017
Warrant Exercise Price (in dollars per share)	[2],[3]
Shares Underlying Warrants (in shares)			[1]		115,250
Shares Issues Upon Warrant Exercises (in shares)		74,250
Series M-B Warrants [Member]
Warrant, Issuance Date		Feb. 17, 2017
Warrants, Expiration date		Nov. 17, 2017
Warrant Exercise Price (in dollars per share)	[2],[4]
Shares Underlying Warrants (in shares)			[1]		197,250
Shares Issues Upon Warrant Exercises (in shares)		197,250

[1] This table does not include equity-classified warrants to purchase 6 shares of common stock issued in 2011, with strike price of $354 per share.

[2] Warrants have either been fully exercised and/or expired as of June 30, 2018.

[3] In October 2017, the exercise price of Series M warrants to purchase 74,250 shares of common stock were repriced between $12.00 and $13.00 per share. Of those warrants that were repriced, all were exercised in the fourth quarter of 2017, providing proceeds of $1.0 million.

[4] In September 2017, the exercise price of Series M warrants to purchase 197,250 shares of common stock were repriced to $0.60 per share. Of those warrants that were repriced, all were exercised in the second half of 2017, providing proceeds of $2.4 million.

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Note 8 - Accounts Payable and Accrued Liabilities - Components Accounts Payable and Accrued Liabilities in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Accounts payable - trade		$ 1,053	$ 666
Accrued legal-related fees		82	274
Accrued employee compensation		655	700
Accrued interest		418	434
Accrued production fees		315	447
Accrued utilities and supplies payable		605	677
Accrued taxes payable		52	172
Customer deposit			436
Other accrued liabilities *	[1]	340	205
Total accounts payable and accrued liabilities		$ 3,520	$ 4,011

[1] Other accrued liabilities consist of franchise taxes, audit fees, and a variety of other expenses, none of which individually represent greater than five percent of total current liabilities.

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Note 9 - Debt (Details Textual) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended
	Apr. 19, 2017	Jan. 31, 2018	Jul. 31, 2012	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument, Convertible, Conversion Price				$ 14.72		$ 14.72		$ 0.74
Amortization of Debt Issuance Costs and Discounts, Total						$ 884,000	$ 196,000
Interest Expense, Debt, Total				$ 904,000	$ 630,000	1,729,000	$ 1,341,000
Convertible 2020 Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage	12.00%				12.00%		12.00%
Debt Instrument, Interest Rate, Paid In Kind Percentage	2.00%
Debt Instrument, Convertible, Conversion Price	$ 14.72
Debt Instrument, Convertible, Conversion Ratio	0.06795
Beneficial Ownership Limitation, Percentage	4.99%
Beneficial Ownership Limitation Percentage, Notice	61 days
Beneficial Ownership Limitation After Notice, Percentage	9.99%
Stock Issued During Period, Shares, Conversion of Convertible Securities				260,793
Stock Issued During Period, Value, Conversion of Convertible Securities				$ 3,200,000
Debt Instrument, Make-Whole Interest				$ 700,000
Convertible 2020 Notes [Member] | Debt Instrument Exchange Period One [Member]
Debt Instrument, Convertible, Conversion Price Reset Period	90 days
Debt Instrument, Convertible, Conversion Price Premium Percentage on Common Stock Share Price in Equity Financing	25.00%
Convertible 2020 Notes [Member] | Debt Instrument Exchange Period Two [Member]
Debt Instrument, Convertible, Conversion Price Premium Percentage on Common Stock Share Price in Equity Financing	35.00%
Convertible 2020 Notes [Member] | Debt Instrument Exchange Period Two [Member] | Minimum [Member]
Debt Instrument, Convertible, Conversion Price Reset Period	90 days
Convertible 2020 Notes [Member] | Debt Instrument Exchange Period Two [Member] | Maximum [Member]
Debt Instrument, Convertible, Conversion Price Reset Period	180 days
Convertible 2022 Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage			7.50%
Debt Instrument, Face Amount			$ 45,000,000
Proceeds from Convertible Debt			40,900,000
Discount on Sale of Convertible Notes			2,700,000
Debt Issuance Costs, Gross			$ 1,400,000
Debt Instrument, Interest Rate, Effective Percentage			7.50%
Amortization of Debt Issuance Costs and Discounts, Total						0	$ 80,000
Expenses Related to Debt Conversion						20,000	1,200,000
Interest Expense, Debt, Total						$ 0	$ 20,000
Debt Discounts and Debt Issue Costs Amortization Rate						40.00%
Debt Instrument, Convertible, Remaining Discount Amortization Period						5 years
Debt Conversion, Original Debt, Amount		$ 500,000
Debt Conversion, Converted Instrument, Shares Issued		39,016
2020 Option Notes [Member]
Debt Instrument, Convertible, Additional Convertible Amount	$ 5,000,000
Debt Instrument, Purchase Option Term	90 days
Debt Instrument, Gain (Loss) on Exchange or Conversion	$ (3,900,000)

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Note 9 - Debt - Information Pertaining to Convertible Notes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total	$ (511)	$ (1,662)	$ 2,347	$ (1,662)
Embedded Derivative, 2020 Convertible Notes [Member]
Balance - December 31, 2017			5,224
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total			(2,347)
Conversion of 2020 Notes into common stock			(2,193)
Balance - June 30, 2018	684		684
Convertible 2020 Notes [Member]
Balance - December 31, 2017			13,491
Balance - December 31, 2017			5,200
Amortization of debt discount			566
Amortization of debt issue costs			150
Paid-in-kind interest			168
Conversion of 2020 Notes into common stock			(2,644)
Balance - June 30, 2018	11,731		11,731
Balance - June 30, 2018	700		700
Convertible 2020 Notes [Member] | Embedded Derivative, 2020 Convertible Notes [Member]
Balance - December 31, 2017			18,715
Amortization of debt discount			566
Amortization of debt issue costs			150
Paid-in-kind interest			168
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total			(2,347)
Conversion of 2020 Notes into common stock			(4,837)
Balance - June 30, 2018	12,415		12,415
Convertible 2020 Notes [Member] | Principal Amount of 2020 Notes [Member]
Balance - December 31, 2017			16,657
Paid-in-kind interest			168
Conversion of 2020 Notes into common stock			(3,186)
Balance - June 30, 2018	13,639		13,639
Convertible 2020 Notes [Member] | Debt Issue Costs [Member]
Balance - December 31, 2017			(2,501)
Amortization of debt discount			566
Conversion of 2020 Notes into common stock			428
Balance - June 30, 2018	(1,507)		(1,507)
Convertible 2020 Notes [Member] | Debt Discount [Member]
Balance - December 31, 2017			(665)
Amortization of debt issue costs			150
Conversion of 2020 Notes into common stock			114
Balance - June 30, 2018	(401)		(401)
Convertible 2022 Notes [Member]
Balance - December 31, 2017			0
Convertible 2022 Notes [Member] | Principal Amount of 2022 Notes [Member]
Balance - December 31, 2017			515
Balance - June 30, 2018
Exchange of 2022 Notes			$ (515)

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Note 10 - Gevo Development (Details Textual) - Gevo Development [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Capital Contribution to Subsidiaries	$ 0.5	$ 3.0	$ 1.8	$ 6.2
Equity Ownership of Wholly Owned Subsidiary			100.00%

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Note 10 - Gevo Development - Net Loss Incurred by Gevo Development (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Gevo Development [Member]
Gevo Development Net Loss	$ (2,062)	$ (3,067)	$ (4,579)	$ (7,178)

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Note 11 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-based compensation	$ 140	$ 97	$ 237	$ 225
Stock Options Issued to Employees and Board Members [Member] | Research and Development Expense [Member]
Stock-based compensation	9	9	18	18
Stock Options Issued to Employees and Board Members [Member] | Selling, General and Administrative Expenses [Member]
Stock-based compensation	11	31	41	61
Restricted Stock [Member] | Research and Development Expense [Member]
Stock-based compensation		1		13
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member]
Stock-based compensation				17
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member]
Stock-based compensation	17	17	34	35
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member]
Stock-based compensation	17	39	58	81
Stock Appreciation Rights (SARs) [Member] | Research and Development Expense [Member]
Stock-based compensation
Stock Appreciation Rights (SARs) [Member] | Selling, General and Administrative Expenses [Member]
Stock-based compensation	$ 86		$ 86

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Note 12 - Commitments and Contingencies (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2012	Jul. 27, 2018 USD ($)	Dec. 31, 2017 USD ($)
Operating Leases, Rent Expense, Net, Total	$ 400	$ 400	$ 900	$ 800
Operating Leases, Future Minimum Payments Due, Total	2,322		2,322
Accrual for Environmental Loss Contingencies, Ending Balance	0		0				$ 0
Indemnification Agreement [Member]
Loss Contingency Accrual, Ending Balance	0		0				0
Equipment Operating Lease and Services Agreement with Shockwave, LLC for a DGS Drying Machine [Member] | Subsequent Event [Member]
Operating Leases, Future Minimum Payments Due, Total						$ 1,000
Lessee, Operating Lease, Number of Equal Installments						48
Equipment Operating Lease and Services Agreement with Shockwave, LLC for a Corn Fractionation Machine [Member] | Subsequent Event [Member]
Operating Leases, Future Minimum Payments Due, Total						$ 2,500
Lessee, Operating Lease, Number of Equal Installments						48
Other Noncurrent Liabilities [Member]
Capital Lease Obligations, Total	$ 0		$ 0				$ 0
Assets Held under Capital Leases [Member]
Capital Lease Agreement Period					6 years

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Note 12 - Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Operating Leases, 2017 (remaining)	$ 731
Operating Leases, 2019	943
Operating Leases, 2020	430
Operating Leases, 2021	218
Operating Leases, 2022 and thereafter
Operating Leases, Total	$ 2,322

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Note 13 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Warrants and Rights Outstanding	$ 86	$ 1,951
Series K Warrants [Member] | Monte Carlo Model [Member] | Fair Value, Inputs, Level 3 [Member]
Warrants and Rights Outstanding	100
Convertible 2020 Notes [Member]
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total	$ 700	$ 5,200

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Note 13 - Fair Value Measurements - Schedule of Carrying Value and Fair Value by Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Measurements, Recurring [Member]
Liabilities, fair value	$ 770	$ 7,175
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities, fair value	770	7,175
Fair Value, Measurements, Recurring [Member] | Warrant [Member]
Liabilities, fair value	86	1,951
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities, fair value	86	1,951
Fair Value, Measurements, Recurring [Member] | Embedded Derivative [Member]
Liabilities, fair value	684	5,224
Fair Value, Measurements, Recurring [Member] | Embedded Derivative [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Embedded Derivative [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities, fair value
Fair Value, Measurements, Recurring [Member] | Embedded Derivative [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities, fair value	684	5,224
Fair Value, Measurements, Nonrecurring [Member]
Assets, fair value	1,747	1,916
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value	188	189
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value	1,559	1,727
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value
Fair Value, Measurements, Nonrecurring [Member] | Corn and Finished Goods Inventory [Member]
Assets, fair value	1,747	1,916
Fair Value, Measurements, Nonrecurring [Member] | Corn and Finished Goods Inventory [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value	188	189
Fair Value, Measurements, Nonrecurring [Member] | Corn and Finished Goods Inventory [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value	1,559	1,727
Fair Value, Measurements, Nonrecurring [Member] | Corn and Finished Goods Inventory [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value

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Note 13 - Fair Value Measurements - Schedule of Fair Value Measurements Using Level 3 Inputs (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Derivative Financial Instruments, Liabilities [Member]
Opening Balance	$ 1,951
Transfers into Level 3
Transfers out of Level 3
Included in earnings	3,040
Included in other comprehensive income
Purchases
Issues
Sales
Settlements	(4,905)
Closing balance	86
Convertible 2017 Notes [Member]
Opening Balance	5,224
Transfers into Level 3
Transfers out of Level 3
Included in earnings	(2,347)
Included in other comprehensive income
Purchases
Issues
Sales
Settlements	(2,193)
Closing balance	$ 684

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Note 14 - Segments (Details Textual)	6 Months Ended
	Jun. 30, 2018
Number of Operating Segments	2

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Note 14 - Segments - Information on Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Total revenues	$ 9,420	$ 7,542	$ 17,663	$ 13,157
Loss from operations	(4,379)	(6,177)	(9,378)	(13,361)
Interest expense	904	630	1,729	1,341
Depreciation and amortization	1,639	1,665	3,285	3,341
Acquisitions of plant, property and equipment	56	318	123	991
Assets	116,030		116,030		$ 88,853
Intersegment Eliminations [Member]
Assets	(143,068)		(143,068)		(148,412)
Gevo [Member]
Total revenues	607	660	632	749
Loss from operations	(2,315)	(3,091)	(4,791)	(6,156)
Interest expense	904	630	1,729	1,341
Depreciation and amortization	76	127	160	264
Acquisitions of plant, property and equipment	2	53	2	109
Gevo [Member] | Operating Segments [Member]
Assets	115,116		115,116		87,507
Gevo Development / Agri-Energy [Member]
Total revenues	8,813	6,882	17,031	12,408
Loss from operations	(2,064)	(3,086)	(4,587)	(7,205)
Interest expense
Depreciation and amortization	1,563	1,538	3,125	3,077
Acquisitions of plant, property and equipment	54	$ 265	121	$ 882
Gevo Development / Agri-Energy [Member] | Operating Segments [Member]
Assets	$ 143,982		$ 143,982		$ 149,758