November 6, 2024 - 10-Q: Quarterly report pursuant to Section 13 or 15(d)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2024

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

For the transition period from to

Commission File Number: 001-33480

CLEAN ENERGY FUELS CORP.

(Exact name of registrant as specified in its charter)

Delaware	33-0968580
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4675 MacArthur Court, Suite 800, Newport Beach, CA 92660

(Address of principal executive offices, including zip code)

(949) 437-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.0001 par value per share

CLNE

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See 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 ☐	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 October 30, 2024, there were 223,456,532 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding.

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CLEAN ENERGY FUELS CORP. AND SUBSIDIARIES

INDEX

Table of Contents

PART I.—FINANCIAL INFORMATION	3
Item 1.—Financial Statements (Unaudited)	3
Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.—Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.—Controls and Procedures	47

PART II.—OTHER INFORMATION	48
Item 1.—Legal Proceedings	48
Item 1A.—Risk Factors	48
Item 2.—Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.—Defaults Upon Senior Securities	61
Item 4.—Mine Safety Disclosures	61
Item 5.—Other Information	61
Item 6.—Exhibits	62

Unless the context indicates otherwise, all references to “Clean Energy,” the “Company,” “we,” “us,” or “our” in this report refer to Clean Energy Fuels Corp. together with its consolidated subsidiaries.

This report contains forward-looking statements. See the cautionary note regarding these statements in Part I, Item 2.-Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

We own registered or unregistered trademark rights to Clean Energy™. Although we do not use the “®” or “™” symbol in each instance in which one of our trademarks appears in this report, this should not be construed as any indication that we will not assert our rights thereto to the fullest extent under applicable law. Any other service marks, trademarks and trade names appearing in this report are the property of their respective owners.

Table of Contents

PART I.—FINANCIAL INFORMATION

Item 1.—Financial Statements (Unaudited)

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data; Unaudited)


	December 31,		September 30,
	2023		2024
Assets
Current assets:
Cash, cash equivalents and current portion of restricted cash	$	106,963	$	119,003
Short-term investments		158,186		126,570
Accounts receivable, net of allowance of $1,475 and $1,772 as of December 31, 2023 and September 30, 2024, respectively		98,426		93,046
Other receivables		19,770		29,653
Inventory		45,335		45,833
Prepaid expenses and other current assets		41,495		28,265
Total current assets		470,175		442,370
Operating lease right-of-use assets		92,324		93,051
Land, property and equipment, net		331,758		354,449
Notes receivable and other long-term assets, net		35,735		33,153
Investments in other entities		258,773		250,712
Goodwill		64,328		64,328
Intangible assets, net		6,365		6,365
Total assets	$	1,259,458	$	1,244,428
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt	$	38	$	44
Current portion of finance lease obligations		1,758		1,813
Current portion of operating lease obligations		6,687		7,787
Accounts payable		56,995		31,475
Accrued liabilities		91,534		97,522
Deferred revenue		4,936		5,842
Derivative liabilities, related party		1,875		—
Total current liabilities		163,823		144,483
Long-term portion of debt		261,123		264,032
Long-term portion of finance lease obligations		1,839		1,353
Long-term portion of operating lease obligations		89,065		90,976
Other long-term liabilities		9,961		12,448
Total liabilities		525,811		513,292
Commitments and contingencies (Note 17)
Stockholders’ equity:
Preferred stock, $0.0001 par value. 1,000,000 shares authorized; no shares issued and outstanding		—		—
Common stock, $0.0001 par value. 454,000,000 shares authorized; 223,026,966 shares and 223,430,400 shares issued and outstanding as of December 31, 2023 and September 30, 2024, respectively		22		22
Additional paid-in capital		1,658,339		1,709,622
Accumulated deficit		(929,472)		(982,383)
Accumulated other comprehensive loss		(2,119)		(2,508)
Total Clean Energy Fuels Corp. stockholders’ equity		726,770		724,753
Noncontrolling interest in subsidiary		6,877		6,383
Total stockholders’ equity		733,647		731,136
Total liabilities and stockholders’ equity	$	1,259,458	$	1,244,428

See accompanying notes to condensed consolidated financial statements.

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Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data; Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2024		2023		2024
Revenue:
Product revenue	$	81,279	$	89,900	$	276,635	$	262,274
Service revenue		14,292		14,976		41,667		44,265
Total revenue		95,571		104,876		318,302		306,539
Operating expenses:
Cost of sales (exclusive of depreciation and amortization shown separately below):
Product cost of sales		65,427		63,867		240,655		184,206
Service cost of sales		9,002		9,322		25,204		28,524
Selling, general and administrative		29,117		28,865		87,314		83,444
Depreciation and amortization		13,389		11,350		34,960		33,796
Total operating expenses		116,935		113,404		388,133		329,970
Operating loss		(21,364)		(8,528)		(69,831)		(23,431)
Interest expense		(3,893)		(8,357)		(12,612)		(24,040)
Interest income		2,551		3,600		8,034		10,818
Other income (expense), net		14		35		85		93
Loss from equity method investments		(3,304)		(5,022)		(7,109)		(16,215)
Loss before income taxes		(25,996)		(18,272)		(81,433)		(52,775)
Income tax (expense) benefit		47		(50)		166		(630)
Net loss		(25,949)		(18,322)		(81,267)		(53,405)
Loss attributable to noncontrolling interest		137		147		457		494
Net loss attributable to Clean Energy Fuels Corp.	$	(25,812)	$	(18,175)	$	(80,810)	$	(52,911)
Net loss attributable to Clean Energy Fuels Corp. per share:
Basic and diluted	$	(0.12)	$	(0.08)	$	(0.36)	$	(0.24)
Weighted-average common shares outstanding:
Basic and diluted		222,973,575		223,428,900		222,867,303		223,310,150

See accompanying notes to condensed consolidated financial statements.

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Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(In thousands; Unaudited)


	Clean Energy Fuels Corp.				Noncontrolling Interest				Total
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
	2023		2024		2023		2024		2023		2024
Net loss	$	(25,812)	$	(18,175)	$	(137)	$	(147)	$	(25,949)	$	(18,322)

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of $0 tax in 2023 and 2024		(864)		772		—		—		(864)		772
Unrealized gains (losses) on available-for-sale securities, net of $0 tax in 2023 and 2024		(1,097)		255		—		—		(1,097)		255
Total other comprehensive income (loss)		(1,961)		1,027		—		—		(1,961)		1,027
Comprehensive loss	$	(27,773)	$	(17,148)	$	(137)	$	(147)	$	(27,910)	$	(17,295)


	Clean Energy Fuels Corp.				Noncontrolling Interest				Total
	Nine Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,
	2023		2024		2023		2024		2023		2024
Net loss	$	(80,810)	$	(52,911)	$	(457)	$	(494)	$	(81,267)	$	(53,405)

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of $0 tax in 2023 and 2024		182		(564)		—		—		182		(564)
Unrealized gains on available-for-sale securities, net of $0 tax in 2023 and 2024		260		175		—		—		260		175
Total other comprehensive income (loss)		442		(389)		—		—		442		(389)
Comprehensive loss	$	(80,368)	$	(53,300)	$	(457)	$	(494)	$	(80,825)	$	(53,794)

See accompanying notes to condensed consolidated financial statements.

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Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data; Unaudited)


								Accumulated
				Additional				Other		Noncontrolling		Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Interest in		Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Subsidiary		Equity
Balance, December 31, 2022	222,437,429	$	22	$	1,553,668	$	(829,975)	$	(3,722)	$	7,478	$	727,471
Issuance of common stock	470,351		—		332		—		—		—		332
Shares withheld related to net share settlement	—		—		(175)		—		—		—		(175)
Stock-based compensation	—		—		6,096		—		—		—		6,096
Stock-based sales incentive charges	—		—		8,172		—		—		—		8,172
Net loss	—		—		—		(38,697)		—		(135)		(38,832)
Other comprehensive income	—		—		—		—		705		—		705
Balance, March 31, 2023	222,907,780		22		1,568,093		(868,672)		(3,017)		7,343		703,769
Issuance of common stock	2,277		—		3		—		—		—		3
Stock-based compensation	—		—		6,093		—		—		—		6,093
Stock-based sales incentive charges	—		—		7,820		—		—		—		7,820
Net loss	—		—		—		(16,301)		—		(185)		(16,486)
Other comprehensive income	—		—		—		—		1,698		—		1,698
Balance, June 30, 2023	222,910,057		22		1,582,009		(884,973)		(1,319)		7,158		702,897
Issuance of common stock	77,191		—		284		—		—		—		284
Stock-based compensation	—		—		6,091		—		—		—		6,091
Stock-based sales incentive charges	—		—		10,250		—		—		—		10,250
Net loss	—		—		—		(25,812)		—		(137)		(25,949)
Other comprehensive loss	—		—		—		—		(1,961)		—		(1,961)
Balance, September 30, 2023	222,987,248	$	22	$	1,598,634	$	(910,785)	$	(3,280)	$	7,021	$	691,612

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								Accumulated
				Additional				Other		Noncontrolling		Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Interest in		Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Subsidiary		Equity
Balance, December 31, 2023	223,026,966	$	22	$	1,658,339	$	(929,472)	$	(2,119)	$	6,877	$	733,647
Issuance of common stock	236,089		—		231		—		—		—		231
Shares withheld related to net share settlement	—		—		(304)		—		—		—		(304)
Stock-based compensation	—		—		2,629		—		—		—		2,629
Stock-based sales incentive charges	—		—		12,897		—		—		—		12,897
Net loss	—		—		—		(18,443)		—		(173)		(18,616)
Other comprehensive loss	—		—		—		—		(875)		—		(875)
Balance, March 31, 2024	223,263,055		22		1,673,792		(947,915)		(2,994)		6,704		729,609
Issuance of common stock	69,447		—		—		—		—		—		—
Stock-based compensation	—		—		2,862		—		—		—		2,862
Stock-based sales incentive charges	—		—		14,079		—		—		—		14,079
Issuance of common stock warrants	—		—		29		—		—		—		29
Net loss	—		—		—		(16,293)		—		(174)		(16,467)
Other comprehensive loss	—		—		—		—		(541)		—		(541)
Balance, June 30, 2024	223,332,502		22		1,690,762		(964,208)		(3,535)		6,530		729,571
Issuance of common stock	97,898		—		223		—		—		—		223
Stock-based compensation	—		—		2,863		—		—		—		2,863
Stock-based sales incentive charges	—		—		15,766		—		—		—		15,766
Issuance of common stock warrants	—		—		8		—		—		—		8
Net loss	—		—		—		(18,175)		—		(147)		(18,322)
Other comprehensive income	—		—		—		—		1,027		—		1,027
Balance, September 30, 2024	223,430,400	$	22	$	1,709,622	$	(982,383)	$	(2,508)	$	6,383	$	731,136

See accompanying notes to condensed consolidated financial statements.

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Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands; Unaudited)

Form: 10-Q

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