Renewable Energy Group, Inc.

Unreliable, the Need for Restatement

The Renewable Energy Group discloses the need to restate its financials for the fiscal years 2018, 2019 and most of 2020, stating that “the restatement is the result of the Company not being the proper claimant for certain biodiesel mixture excise tax credit (“BTC”) payments on biodiesel it sold between January 1, 2017 and September 30, 2020.”

The company further explains: “To claim the BTC, a taxpayer must be the first to blend petroleum diesel into the biodiesel. Due primarily to failures in the petroleum diesel additive system at the Company’s facility in Seneca, Illinois, petroleum diesel was periodically not added to certain loads. As a result, the Company’s customers who received these loads and subsequently added petroleum diesel are the proper claimants on these biodiesel gallons rather than the Company’s REG Seneca subsidiary. In some instances, the relevant customer and proper claimant was an REG subsidiary. The Company has consented to additional tax liability, including interest, assessed by the U.S. Internal Revenue Service due to the incorrect BTC filings. The impact on the Company’s financial statements for the Relevant Periods is to decrease Biomass-based diesel government incentives revenue and increase interest expense (thereby increasing accounts payable and accrued expenses and other liabilities on the related balance sheets). While the BTC adjustment in each year is not material, the Company determined that the aggregate BTC adjustment is material in 2019.”