NATCHEZ — KiOR has suspended the optimization project at its Columbus facility subject to the company’s ability to raise additional working capital and may have to rethink its long-term business plan later this year.

The optimization project was started in early 2014, when the company decided to idle production at the Columbus facility to focus on identifying issues and increasing productivity at the cellulostic fuel plant, which had never operated at its projected capacity. Reaching certain benchmarks at the plant were key to securing additional funding with KiOR’s financers, the filing stated.

KiOR has announced plans to construct an Adams County facility, but achieving steady-state operations in Columbus and building a second facility there were announced as steps in the company’s plans before  building on the site of the county-owned former Belwood Country Club could begin.

In a filing with the U.S. Securities and Exchange Commission dated Monday, KiOR said it has suspended the optimization project as of March 31.

“The company has suspended all optimization projects in order to bring the Columbus facility to a safe, idle state and has not demonstrated any additional research and development progress or any demonstrable progress towards achieving its financing performance milestones,” the filing states. “The company does not believe it can restart the Columbus facility on an economically viable basis at this time and therefore cannot be certain as to whether it will be able to successfully secure additional financing or the ultimate timing of such additional financing.”

The filing notes the company was able to identify problems that it believes it could correct and other enhancements that could improve the facility if it was funded. Other steps in reducing operating costs have likewise been identified.

“While the company has completed some of these projects and upgrades, it has elected to suspend all optimization work and bring the Columbus facility to a safe, idle state, which the company believes will enable it to restart the facility upon the achievement of additional research and development milestones and if it is able to raise additional working capital,” the filing states.

The company will be able to fund its operations through Aug. 31 if it meets the milestones in its most recent financing agreement, the filing states, but will need additional money to continue operations beyond that date.

If the company is not successful in achieving those performance milestones or in gathering additional funding, it will likely be forced to seek protection under the U.S. Bankruptcy Code, the filing states.

“Even if the company is able to achieve such performance milestones or secure any additional financing, any investment may require significant changes to the company’s current business structure, including, but not limited to: a change in the focus of its business; suspension of some or all of its operations; delaying or scaling back its business plan, including its research and development programs; reductions in headcount, overhead and other operating costs; and the longer-term or permanent closing of its Columbus facility, each of which would have a material adverse effect on its business, prospects and financial condition,” the filing states.

Natchez Inc. Executive Director Chandler Russ said he was aware of the filing, but he does not think it presents any new information.

“Obviously, it doesn’t bode well,” he said. “I didn’t read it and say, ‘Oh, things are going to be wonderful,’ but I don’t think that (filing) is majorly different from what they said previously.”

KiOR has an option agreement signed with Adams County for the Belwood property, but even though the company had financing troubles it is current in the financial obligations it has to the county in the agreement.

Russ said the financial milestones were “substantial.”

“We have the agreement structured where every 120 or 160 days they have milestones they have to meet, and they met their last obligation, so basically their clause starts over,” Russ said.

“We did it that way because when you pay full fees upfront, then you would have that property tied up. If they don’t meet those milestones, they are in violation of the agreement.”

Russ said there is nothing that can be done from Adams County to help in the Columbus process.

“It is still our hope that they get their issues resolved in Columbus and figure out what is going on there, because the whole key to us being successful here is a successful Columbus,” he said.

KiOR has reportedly spent at least $10 million on the Belwood property since its mid-2012 announcement it would build a cellulostic fuel plant in Adams County that would create 320 direct and indirect jobs.

The Adams County plant was originally slated for groundbreaking in late 2013, but plans have been pushed back as the company changed business plans.

In September, KiOR said it would build a second Columbus plant before commencing construction in Natchez , though Natchez was still in the company’s long-term plans.

Operations in Columbus were suspended in January for the now idled optimization project.

KiOR’s stock stood at $0.57 a share at the close of trading Friday.

At one time in 2011, the stock was worth more than $20 a share.