Global Clean Energy Holdings, Inc. (GCEH) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on converting its Bakersfield oil facility into a renewable fuels facility, experienced a notable increase in total current assets, rising to $36.7 million from $11.9 million at the end of 2023. Total assets also grew to $1.6 billion, up from $1.3 billion.

Despite these asset increases, GCEH reported a decline in revenue, with $535,000 for the third quarter of 2024 compared to $1.9 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $3.1 million, down from $3.4 million year-over-year. The cost of goods sold surged to $11.5 million for the third quarter, leading to a gross loss of $11 million, compared to a gross loss of $1.1 million in the prior year.

Operating expenses also escalated significantly, reaching $39.6 million for the third quarter of 2024, up from $18.8 million in the same quarter of 2023. This contributed to an operating loss of $50.6 million for the quarter, compared to a loss of $19.9 million in the previous year. However, for the nine-month period, GCEH reported a net income of $30.4 million, largely due to a non-cash gain of $163.6 million from the extinguishment of debt, contrasting with a net loss of $60 million for the same period in 2023.

The company’s accumulated deficit improved to $95.7 million as of September 30, 2024, down from $261.7 million at the end of 2023. Stockholders' equity also turned positive, reaching $13.3 million compared to a deficit of $129.2 million previously.

Strategically, GCEH is facing challenges with its Engineering, Procurement, and Construction (EPC) contractor, CTCI, which has claimed costs exceeding the guaranteed maximum price and is seeking at least $760 million in compensation. In response, GCEH notified CTCI of default on October 21, 2024, terminating further work and drawing down $17.8 million from a letter of credit.

The company is also under pressure to raise $180 million by mid-November 2024 to refinance senior debt. Management is pursuing various strategies to mitigate financial risks, including engaging with lenders for additional capital and accelerating camelina development. The company’s operational timeline remains uncertain, with expectations to commence commercial operations in Q4 2024, contingent on various factors.