KiOR files annual report, idles Columbus facility
On March 17, KiOR Inc. filed its 2013 annual report with the U.S. Securities and Exchange Commission, reporting operating revenue of approximately $1.83 million and a net loss of $347.45 million. The company recently canceled its fourth quarter earnings conference call, which was scheduled for March 13.
Within in its annual report, KiOR expressed doubts about its ability to continue operations. “To continue as a going concern, we must secure additional capital to provide us with additional liquidity,” the company said in the report. On March 16, the company received an investment commitment letter from Vinod Khosla, under which he committed to invest in KiOR a cash amount of up to an aggregate of $25 million in available funds. This commitment is anticipated to be funded in monthly borrowings of no more than $5 million per month, and are subject to the achievement of certain milestones and the negotiation and execution of definitive financing documents.
According to KiOR, it has no other near-term sources of financing. The company also indicated that if it is unsuccessful in finalizing the definitive documentation with Khosla on or before April 1, it will not have adequate liquidity to fund its operations and meet its obligations. The likely result would be a default under existing debt. KiOR said it could be forced to seek relief by filing for bankruptcy. The company went on to note that any new financing will require the consent of existing debt holders and may require the restructuring of existing debt. Assuming the company is able to achieve milestones that allow it to receive the full commitment from Khosla in the near-term, KiOR indicated in the report that it would be able to fund its operations and meet obligations through August 31, but would need to raise additional funds to continue operations beyond that date.
With regard to its Columbus, Miss.-based facility, KiOR noted that it has completed some previously announced optimization projects and upgrades. However, the company has elected to suspend further optimization work and will instead idle the plant. In the report, KiOR said the facility could be restarted upon the achievement of additional research and development milestones, which consist of process improvements and catalyst design, financing and completion of optimization work.
A full copy of the 10-K annual report filing can be downloaded from the SEC website.