10-Q - SOUTH 8 ENERGY, LLC (0001359687) (Filer)

Thu, May 15, 9:05 PM (32 days ago)

**South 8 Energy, LLC (S8E) Q1 2025 Financial Summary** **Company Overview:** South 8 Energy, LLC (S8E) completed the sale of substantially all its assets on January 31, 2025, to Gevo, Inc. (GEVO) and its subsidiaries for $210 million. This sale marked the end of S8E's operational period, focusing on winding down its business and distributing proceeds to members. **Financial Performance:** **Revenue:** - Q1 2025: $16,087,196 (down from $34,034,993 in Q1 2024) - Six Months Ended March 31, 2025: $50,161,922 (down from $77,491,003 in 2024) **Profit Margins:** - Q1 2025 Gross Profit: $3,188,516 (19.82% margin) - Q1 2025 Net Income: $126,121,707 (783.99% margin, significantly boosted by asset sale proceeds) **Cash Flow:** - Q1 2025 Operating Cash Flow: $(14,234,935) - Q1 2025 Investing Cash Flow: $193,351,082 (due to asset sale proceeds) - Q1 2025 Financing Cash Flow: $(162,600,729) (primarily distributions to members) **Earnings Changes:** - Q1 2025 Net Income: $126,121,707 (up from $(6,406,145) in Q1 2024) - Six Months Ended March 31, 2025 Net Income: $126,110,256 (up from $(4,245,630) in 2024) **Trends and Uncertainties:** - S8E's revenue and operational metrics declined due to the asset sale and winding down of operations. - Future revenue is uncertain and dependent on the sale of carbon dioxide reduction credits. - The company faces risks related to escrowed portions of the purchase price and potential liabilities from past operations. **Future Operations Impact:** - S8E plans to distribute remaining cash to members after winding down operations. - The company may be classified as a "shell company," imposing additional compliance obligations. - No new capital expenditure projects are planned. **Key Metrics (Q1 2025 vs. Q1 2024):** - Revenue: $16,087,196 (down from $34,034,993) - Gross Profit Margin: 19.82% (up from -14.47%) - Net Income Margin: 783.99% (up from -18.82%) - Operating Cash Flow: $(14,234,935) (down from $(2,807,750)) - Investing Cash Flow: $193,351,082 (up from $(855,153)) - Financing Cash Flow: $(162,600,729) (down from $(5,452,246)) **Conclusion:** S8E's Q1 2025 financials reflect the significant impact of the asset sale, with a substantial increase in net income due to proceeds from the sale. The company is now focused on winding down operations and distributing remaining cash to members while managing potential risks and liabilities.