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FutureFuel Corp (FFU)

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Wednesday 25 April, 2007

FutureFuel Corp

Final Results

FutureFuel Corp
25 April 2007


          THIS ANNOUNCEMENT IS NOT FOR RELEASE INTO THE UNITED STATES.

THE FOLLOWING DOES NOT RELATE TO AN OFFER OF SECURITIES FOR SALE IN THE UNITED
STATES. THE SECURITIES DESCRIBED HEREIN HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE 'SECURITIES ACT'). THE SECURITIES MAY
NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS EXCEPT
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

                                FutureFuel Corp.

                        ('FutureFuel' or the 'Company')

                                 April 24, 2007

                             2006 Financial Results

FutureFuel, through its wholly owned subsidiary FutureFuel Chemical Company
('FutureFuel Chemical'), is a leading producer and marketer of alternative fuels
in the United States as well as a specialty chemicals manufacturer. The Company
is pleased today to present its consolidated financial statements, including its
consolidated balance sheets as of December 31, 2006 and 2005 and its
consolidated statements of operations, statements of cash flows and statements
of changes in stockholders' equity for each of the years in the three-year
period ended December 31, 2006, together with KPMG LLP's report thereon.

Notes on the Presentation of Financial Information

   •On July 21, 2006, Viceroy Acquisition Corporation ('Viceroy'), now known
    as FutureFuel Corp., entered into an acquisition agreement with Eastman
    Chemical Company ('Eastman Chemical') to purchase all of the issued and
    outstanding stock of Eastman SE, Inc. ('Eastman SE'), an entity created by
    Eastman Chemical for purposes of effecting a sale of Eastman Chemical's
    manufacturing facility in Batesville, Arkansas (the 'Batesville Plant'). On
    October 27, 2006, a special meeting of the shareholders of Viceroy was held
    and the acquisition of Eastman SE was approved by the shareholders. On
    October 31, 2006, Viceroy acquired all of the issued and outstanding shares
    of Eastman SE from Eastman Chemical. After purchase price adjustments to
    date, a price of $71.2 million was paid for the stock of Eastman SE.
    Immediately subsequent to the acquisition, Viceroy changed its name to
    FutureFuel Corp. and Eastman SE changed its name to FutureFuel Chemical
    Company.

   •For accounting purposes and pursuant to AIM Rules, the transaction is
    deemed to be a reverse acquisition and FutureFuel Chemical has been treated
    as the accounting acquirer and continuing reporting entity that acquired
    FutureFuel. Accordingly, the October 31, 2006 acquisition has been accounted
    for as a capital transaction or, more specifically, the issuance of stock by
    FutureFuel Chemical for the net monetary assets of FutureFuel accompanied by
    a recapitalization and reorganization with FutureFuel assuming the role of
    the reporting entity and FutureFuel Chemical assuming the role of
    FutureFuel's operating subsidiary.

   •Through October 31, 2006, the operations of the Batesville Plant were
    included in the consolidated financial statements of Eastman Chemical.
    Accordingly, the accompanying balance sheets, statements of operations and
    related statements of cash flows have been prepared from Eastman Chemical's
    historical accounting records and are presented on a carve-out basis to
    include the historical financial position, results of operations and cash
    flows applicable to Eastman SE through October 31, 2006. As a result of the
    lack of capital structure of Eastman SE prior to October 31, 2006, the net
    investment of the parent has been presented in lieu of stockholders' equity.

   •Subsequent to October 31, 2006, the consolidated financial statements
    present the combined operations of FutureFuel and FutureFuel Chemical.

   •The Company filed a registration statement on Form 10 with the U.S.
    Securities and Exchange Commission ('SEC') on April 24, 2007. The
    consolidated financial statements included herein were included in this
    registration statement. This Form 10 registration statement along with the
    consolidated financial statements of FutureFuel and the financial statements
    of Viceroy are subject to review by the SEC. It is possible that comments
    made by the SEC could lead to changes in these consolidated financial
    statements.

   •Copies of the Annual Report, including these financial statements, for
    the year ended December 31, 2006 will be mailed to stockholders on or around
    May 1, 2007.

Corporate & Financial Highlights

   •Completion of share offering and simultaneous admission to AIM, July 12,
    2006

       •Raised $172.5 million (net)

   •Public announcement of execution of acquisition agreement with Eastman
    Chemical Company on July 21, 2006; as the acquisition of FutureFuel Chemical
    constituted a reverse acquisition, trading in our shares and warrants was
    suspended by AIM

   •Shareholder approval of acquisition of FutureFuel Chemical on October 27,
    2006; acquisition consummated, funds from offering distributed from trust to
    FutureFuel, and readmission to AIM granted on October 31, 2006

   •Revenues of $150.8 million (2005; $119.5 million)

   •EBITDA of $11.2 million (2005; $9.6 million)

   •Cash and cash equivalents of $63.1 million (2005; $0)

   •Net working capital of $85.9 million (2005; $2.7 million)

   •Book value of $165.5 million (2005; $76.1 million)

Operational Highlights

   •Biodiesel production capacity at December, 31 2006 of 24 million gallons
    per year

   •Substantive work initiated on core infrastructure expansion projects at
    FutureFuel Chemical's plant site in Batesville, Arkansas

       •Addition of methanol recovery and feedstock pretreatment capabilities

       •Construction of additional on-site storage to support increased
        movements of feedstocks, methanol, glycerin and biodiesel

       •Expansion of on-site rail siding and railcar loading and unloading
        facilities

       •Addition of off-site storage/thruput in Little Rock, Arkansas, in
        Memphis, Tennessee, and in Port Allen, Louisiana

       •Acquisition of a fleet of tanker trucks

       •Procurement of railcars

   •Continued sustainable cash flow generation from specialty chemicals
    business

Post-Period Highlights

   •FutureFuel Chemical entered into a $50 million credit agreement with
    Regions Bank in March 2007; the loan is a revolving credit facility,
    proceeds of which may be used for working capital, capital expenditures and
    general corporate purposes

   •FutureFuel Chemical completed the build-out of its information
    technology, procurement, finance and accounting functions and in March 2007
    terminated the Transition Services Agreement that had been in place with
    Eastman Chemical Company since the closing of the acquisition

   •FutureFuel Chemical began commercial production of fuel pellets in March
    2007, enabling the Company to pursue growth through some of the smaller
    niche alternative fuel markets

Paul A. Novelly, Chairman, commented:

'I am pleased to report that during 2006 FutureFuel executed on two important
milestones in achieving its long-term strategic objectives. First, we completed
our AIM share offering, providing the Company with the proper capitalization and
funding to pursue acquisitions in the oil and gas industry. Second, we closed
the acquisition of FutureFuel Chemical, bringing the Company an extremely
talented and entrepreneurial employee base, a strong foothold in the alternative
fuels market, and sustainable cash flow. The board of directors believes that
FutureFuel is well positioned to become a leader in the alternative fuels
segment of the U.S. oil and gas industry.'

Lee E. Mikles, Chief Executive Officer, commented:

'On November 1, 2006, having completed both our AIM share offering and the
acquisition of FutureFuel Chemical, FutureFuel was faced with the challenges of
integrating its first acquisition, navigating the changing landscape of the
alternative fuels market, and ensuring the stability of FutureFuel Chemical's
specialty chemicals business. We have made considerable progress toward meeting
each of these challenges during the last two months of the year. FutureFuel
reported a healthy balance sheet and working capital position at December 31,
2006, due in large part to financial results from FutureFuel Chemical that
exceeded our expectations.

Our management and our employees are eager to continue this success into 2007,
always with a focus on creating value for our shareholders.'

For more information:

FutureFuel Corp.
Lee Mikles, Chief Executive Officer         (805) 565-9800

KBC Peel Hunt
Adam Hart                               44 (0)20 7418 8909


                              Chairman's Statement

Over the span of one year, beginning in October 2005 with the formation of the
Company, and culminating in October 2006, with the closing of the acquisition of
FutureFuel Chemical, we have successfully laid the foundation to achieve our
objective of becoming a leader in the U.S. alternative fuels segment of the oil
and gas industry. In fact, with a current capacity of 24 million gallons per
year of biodiesel production, FutureFuel Chemical is already an active
participant in the U.S. biodiesel industry. FutureFuel Chemical is also among
the leading participants in the research, development and commercialization of
cellulosic ethanol technology. And finally, FutureFuel Chemical, through its
fuel pellet business, is actively pursuing growth through some of the smaller
niche alternative fuel markets.

As we guide FutureFuel Chemical through its transformation into a leader in
alternative fuels it will be important not to overlook its role in the worldwide
specialty chemicals industry. Biodiesel production, cellulosic ethanol
technology, and in fact many aspects of the oil and gas industry are closely
tied to, if not entirely based upon, chemical processes. FutureFuel Chemical's
experience in the specialty chemicals industry is not just an asset, it is how
we differentiate ourselves from our competition.

FutureFuel Chemical has long-lasting relationships with many of the largest
companies in the chemical industry, companies who are also leading participants
in the worldwide oil and gas industry. FutureFuel Chemical's workforce comprises
over 400 employees with a total of 60 degreed professionals, including 15
chemists (10 PhDs), and 36 engineers (including 10 licensed professional
engineers and 17 chemical engineers). This highly talented workforce enables us
to develop or adopt new technologies and to troubleshoot problems such as cold
flow issues that plagued most of the industry during the winter months. Finally,
and certainly not of the least importance, FutureFuel Chemical's specialty
chemicals business provides sustainable cash flow and positive working capital
to support growth.

The acquisition of FutureFuel Chemical was deemed a reverse acquisition pursuant
to the AIM Rules and, as such, our results include a full year of trading for
FutureFuel Chemical and two months of trading for FutureFuel. We reported $150.8
million in revenues for 2006, an increase of 26% over 2005 revenues of $119.5
million. Operating income also rose substantially from $0.6 million in 2005 to
$2.1 million in 2006. While FutureFuel Chemical experienced improved results
versus 2005 throughout the year, a significant portion of FutureFuel Chemical's
operating income was generated during November and December. We believe this is
largely a result of reduced corporate expense allocations under FutureFuel
ownership and we intend to operate the Company with a constant focus on
minimizing expenses.

FutureFuel's operational success during the year was made possible by a
carefully planned and well executed financing transaction in July 2006. This
financing transaction not only provided FutureFuel with the appropriate
structure and funding to pursue an acquisition in the oil and gas industry, it
also brought us a shareholder base that shares our perspective of the changes
occurring within the oil and gas industry and our vision for the opportunities
these changes bring. We could not be more enthusiastic with the quality of our
shareholder base and we will always seek to make decisions for the Company that
are singularly aimed at creating long-term value for our investors.

FutureFuel closed 2006 with $63.1 million in cash and equivalents. At the
present time, the Company intends to retain all cash to fund infrastructure and
capacity expansion at FutureFuel Chemical and to pursue complimentary
acquisitions in the oil and gas industry.

I would like to thank all of FutureFuel's employees for their tireless efforts
throughout the last two months of 2006 and the first several months of 2007 as
we collectively overcame the challenges that come with the integration of any
acquisition. And on behalf of all of FutureFuel's employees, I would like to
thank our shareholders for their support. I look forward to reporting our
continuing progress during 2007.

Paul A. Novelly
Chairman



                        Chief Executive Officer's Review

General Description of FutureFuel Chemical and Background of the Acquisition

FutureFuel Chemical owns approximately 2,200 acres of land six miles southeast
of Batesville in north central Arkansas fronting the White River. Approximately
500 acres of the site are occupied with batch and continuous manufacturing
facilities, laboratories and infrastructure, including on-site liquid waste
treatment. The plant is staffed by approximately 430 non-union employees.

The Batesville Plant was constructed by Eastman Kodak Company in 1977, initially
to produce proprietary photographic chemicals. Over the past 30 years the
plant's business scope was broadened to include certain specialty chemicals for
Eastman Chemical and, after Eastman Chemical split from Eastman Kodak Company in
1994, a more diverse portfolio of fine chemicals and organic chemical
intermediates used in a variety of end markets, including paints and coatings,
plastics and polymers, pharmaceuticals, food supplements, household detergents
and agricultural products.

In mid 2005, Eastman Chemical decided that specialty chemicals would no longer
be a core business and that it would seek to divest the Batesville Plant. Around
this same time, plant management began to actively pursue new businesses in
which to focus their manufacturing capabilities. Recognizing that the plant was
suited relative to geography and capabilities to manufacture products for the
emerging alternative fuels markets, management launched a local biobased
products platform in early 2005. With minimal capital expenditures, and using
local technical resources, the management team was able to initiate biodiesel
batch production in October 2005 at a capacity of 3 million gallons per year.
Entry into the biofuels business was accomplished with excess plant capacity and
without any reduction in production of specialty chemicals.

FutureFuel was organized in late 2005 to pursue business combinations with
target businesses engaged in the oil and gas industry. We began discussions with
Eastman Chemical in June 2006, at which time the Batesville Plant had
commercialized biodiesel and was capable of producing approximately 9 million
gallons of biodiesel per year by batch processing. Upon completion of the
acquisition of FutureFuel Chemical on October 31, 2006, the plant had increased
biodiesel capacity to 24 million gallons per year.

Plan of Operation and Growth Strategy for the Company

Our strategy in relation to the acquired operations is to build upon and expand
FutureFuel Chemical's biobased products platform and to continue FutureFuel
Chemical's chemical manufacturing activities.

We initially planned to increase the plant's biodiesel capacity to 40 million
gallons per year by May 2007 and to 160 million gallons per year by November
2007, with substantial complementary expenditures on infrastructure to support
this increased capacity. After closing the acquisition of FutureFuel Chemical on
October 31, 2006, we and, to our knowledge, the industry as a whole, witnessed a
rapid erosion in margins for producing biodiesel. As a result of these decreased
margins, we determined that it was not in our shareholders' best interest to
proceed on an accelerated basis to increase capacity and publicly announced this
on January 19, 2007. However, we intend to continue with certain core
infrastructure projects that we believe will bring efficiency, operational
flexibility and cost savings to FutureFuel Chemical's existing biodiesel and
chemical business lines. These projects include the addition of methanol
recovery and biodiesel feedstock pretreatment, the construction of additional
storage at the plant to support increased movements of feedstocks, methanol,
glycerin and biodiesel, and the expansion of on-site rail siding and railcar
loading and unloading facilities. In addition, we have already begun acquiring a
fleet of tanker trucks, procuring railcars, and obtaining storage/thruput in
strategic regional ports.

Additional components of our biofuels growth strategy include lignocellulose
solid fuel and bioethanol. Lignocellulose solid fuel was commercialized in March
2007 utilizing locally available hardwood products and residues. This product is
sold as a low-ash, high BTU premium fuel pellet for use in residential and light
commercial heating applications. A small specialty market also uses these
pellets in specially-designed outdoor barbeque grills. Bioethanol is a fuel for
internal-combustion engines that is made from ethyl alcohol obtained from
biological material and typically sold as a retail blend with conventional
gasoline. FutureFuel Chemical is pursuing production of bioethanol from
cellulosic biomass raw materials. FutureFuel Chemical is pursuing the
commercialization of cellulosic-based ethanol, initially to be produced from
local hardwood biomass. FutureFuel Chemical's research and development program
with respect to cellulosic-based ethanol includes collaboration with the
National Renewable Energy Laboratory and other private-sector technology
providers. As with biodiesel, FutureFuel Chemical intends to leverage technical
expertise and existing idle manufacturing assets to move this emerging
technology from the development stage to commercial reality. However, no
assurances can be given that FutureFuel Chemical will bring bioethanol to
commercial realization.

While the core of our growth strategy centers on FutureFuel Chemical's biofuels
business, we believe there is also tremendous opportunity to build on and
maintain FutureFuel Chemical's reputation as a technology-driven competitive
chemical producer. The chemical business comprises two components: 'custom
manufacturing' (manufacturing chemicals for specific customers); and
'performance chemicals' (multi-customer specialty chemicals).

Custom manufacturing involves producing unique products for individual
customers, generally under long-term contracts. The plant's custom manufacturing
product portfolio includes four large products or product families which are
generally produced throughout the year: (i) nonanoyloxybenzenesulfonate
('NOBS'), a bleach activator for a major detergent manufacturer; (ii) a
proprietary herbicide for a major life sciences company; (iii) chlorinated
polyolefin adhesion promoters ('CPOs') for Eastman Chemical Company; and (iv)
 antioxidant precursors ('DIPBs') for Eastman Chemical Company. The portfolio
also contains a number of smaller products which are produced intermittently in
a 'batch campaign' mode, for diverse customers and end markets.

Performance chemicals comprises multi-customer products which are sold based
upon specification and/or performance in the end-use application. This portfolio
includes a family of polymer (nylon) modifiers and several small-volume
specialty chemicals for diverse applications.

We believe that FutureFuel Chemical must continuously focus on cost control,
operational efficiency and capacity utilization to maximize earnings. We intend
to improve margins in this area of the FutureFuel Chemical business by careful
management of product mix with regard to size of opportunity, timing to market,
capital efficiency and matching of opportunities to assets and capabilities. We
expect to derive significant growth in the performance chemicals segment
primarily as a result of new biobased co-products derived from biofuels
manufacturing, such as glycerin and derivatives. We also expect to capitalize on
FutureFuel Chemical's market position as one of the largest independent custom
chemical manufacturers in North America. FutureFuel Chemical's strong customer
relationships, technical capabilities and process improvement capabilities offer
us a competitive advantage in securing new contracts for custom chemical
production.

Discussion of Financial Performance

Revenues for the year ended December 31, 2006 were $150.8 million as compared to
revenues for the year ended December 31, 2005 of $119.5 million, an increase of
26%. The increase was primarily a result of selling biodiesel for the full year
and increased sales of NOBS. Revenues from NOBS increased 26% due to increased
demand from the customer as a result of changing consumer demand for their
product. Revenues from biodiesel were $13.3 million in 2006; 2005 biodiesel
revenues were inconsequential. Revenues from CPOs, DIPBs and FFCC's family of
polymer modifiers changed less than 10% versus 2005 revenues. Revenues from all
other products increased 26% but accounted for only 7% of total revenues in both
2005 and 2006.

The majority of FutureFuel Chemical's expenses are cost of goods sold, which
reflect raw material costs as well as fixed and variable conversion costs,
conversion costs being those expenses that are directly or indirectly related to
operation of FutureFuel Chemical's plant. Significant conversion costs include
labor, benefits, energy, supplies and maintenance and repair. Total cost of
goods sold and distribution for 2006 increased 31% versus 2005, from $105.3
million to $137.5 million. Cost of goods sold for the chemical business actually
decreased when measured as a percent of chemical revenues, from 86% in 2005 to
83% in 2006. This was offset by significantly increased cost of goods sold
related to biofuels as this business utilized a significant portion of the
plant's reactors and hence absorbed more of the plant's conversion costs than it
was able to cover in revenues. We believe that, as FutureFuel Chemical moves its
biodiesel production from primarily batch processing to more continuous
processing, it will become more efficient and will produce higher volumes of
biodiesel per reactor, hence absorbing fewer overhead costs per gallon produced.

Operating expenses decreased from $13.6 million for the year ended December 31,
2005 to $11.2 million for the year ended December 31, 2006, or approximately
18%. This decrease was primarily the result of lower corporate expense
allocations from Eastman Chemical, as well at the lower overall operating
expenses incurred by FutureFuel Chemical on a standalone basis.

Operating income for 2006 was $2.1 million, a more than three fold increase over
2005 operating income of $0.6 million. Meanwhile, cash provided by (used in)
operating activities was $(5.5) million in 2006 versus $7.6 million in 2005.
This decline in cash provided by operating activities was entirely attributable
to the significant building of working capital accounts during the year.
FutureFuel Chemical's net working capital at the end of 2005 was $2.7 million.
At the end of 2006, FutureFuel Chemical's net working capital had grown to
nearly $22.8 million.

There were no significant other income or expense items during 2005 or 2006 with
the exception of $0.7 million of interest income earned during the last two
months of 2006. We posted consolidated net income of $2.1 million for 2006 and
basic earnings per share of $0.08, versus $0.4 million of net income and $0.01
of basic earnings per share in 2005.

With more than $60 million in cash and equivalents, we closed the year with a
high degree of liquidity and a sound capital structure. We further improved our
position on March 14, 2007 when we entered into a revolving credit facility with
a commercial bank. The credit agreement makes up to $50 million available to
FutureFuel Chemical for working capital requirements, capital expenditures and
other corporate purposes. The credit agreement is secured by specific
collateral, including FutureFuel Chemical's accounts receivable and inventory.
Advances under the facility bear interest at rates based upon the then current
prime rate or based upon the then current London interbank offered rate plus
margins ranging from (1.00%) to 1.70%. Additionally, FutureFuel Chemical will
pay a commitment fee of 0.25% on any used availability. No borrowings have yet
been made under this credit agreement.

Outlook

We expect this to be a very dynamic year for the Company. FutureFuel Chemical
will continue to grow its biodiesel business and to produce as close to capacity
as possible. 2007 will mark the first year that we report revenues for the sale
of fuel pellets. And we anticipate formalizing our strategy to commercialize
cellulosic ethanol production although no assurances can be given that we will
be successful in such an endeavor.

In the chemicals business, we are seeing strong demand for all of our custom and
performance products and we are working on some very exciting new business
opportunities.

We should substantially complete our infrastructure expansion later in 2007 and
we are eager to begin utilizing the increase tankage, the improved rail loading
and unloading facilities, and the other infrastructure additions described above
to cut costs and improve efficiency in both the biofuels and chemicals
businesses.





                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Board of Directors and Stockholders

FutureFuel Corp.:


We have audited the accompanying consolidated balance sheets of FutureFuel Corp.
and subsidiary as of December 31, 2006 and 2005, and the related consolidated
statements of operations, stockholders' equity, and cash flows for each of the
years in the three-year period ending December 31, 2006. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of FutureFuel Corp. and
subsidiary as of December 31, 2006 and 2005, and the results of their operations
and their cash flows for each of the years in the three-year period ending
December 31, 2006, in conformity with U.S. generally accepted accounting
principles.


St. Louis, Missouri
April 23, 2007


                                FutureFuel Corp.
                          Consolidated Balance Sheets
                        As of December 31, 2006 and 2005
                (Dollars in thousands, except per share amounts)


                                                               2006       2005
                                                            ---------  ---------
Assets
Cash and cash equivalents                                 $  63,129   $      -
Accounts receivable                                          23,824     10,881
Inventory                                                    11,591      4,830
Current deferred income tax
asset                                                            68        552
Prepaid expenses                                              1,248          -
Other current assets                                          3,131          -
                                                            ---------  ---------
Total current assets                                        102,991     16,263

Property, plant and equipment,
net                                                          97,761     95,115
Noncurrent deferred income tax
asset                                                           381        516
Restricted cash and cash
equivalents                                                   3,127          -
Other assets                                                  2,764      2,606
                                                            ---------  ---------
Total noncurrent assets                                     104,033     98,237
                                                            ---------  ---------
Total Assets                                              $ 207,024   $114,500
                                                            =========  =========

Liabilities and Stockholders' Equity
Accounts payable                                          $  13,057   $  7,940
Income taxes payable                                          2,264          -
Accrued expenses and other
current liabilities                                           1,757      5,657
                                                            ---------  ---------
Total current liabilities                                    17,078     13,597

Other noncurrent liabilities                                    545        843
Noncurrent deferred income taxes                             23,884     23,987
                                                            ---------  ---------
Total noncurrent liabilities                                 24,429     24,830
                                                            ---------  ---------
Total Liabilities                                            41,507     38,427

Preferred stock, $0.0001 par value, 5,000,000 shares              -          -
authorized, none issued and outstanding
Common stock, $0.0001 par value,
75,000,000 shares authorized,
26,700,000 issued and
outstanding                                                       3          -
Additional paid in capital                                  162,995          -
Retained earnings                                             2,519          -
Net investment of parent                                          -     76,073
                                                            ---------  ---------
Total stockholders' equity                                  165,517     76,073
                                                            ---------  ---------
Total Liabilities and
Stockholders' Equity                                      $ 207,024   $114,500
                                                            =========  =========


   The accompanying notes are an integral part of these financial statements.


                                FutureFuel Corp.

                     Consolidated Statements of Operations

              For the Years Ended December 31, 2006, 2005 and 2004

                (Dollars in thousands, except per share amounts)
                                             2006          2005          2004
                                          ---------     ---------     ---------
Revenues                                $ 150,770     $ 119,539     $ 144,157
Cost of goods sold                        136,176       103,659       146,309
Distribution                                1,291         1,604         1,499
                                          ---------     ---------     ---------
Gross profit (loss)                        13,303        14,276        (3,651)

Selling, general and
administrative expenses                     6,247         7,662        10,854
Research and development
expenses                                    4,937         5,975         9,919
                                          ---------     ---------     ---------
                                           11,184        13,637        20,773
                                          ---------     ---------     ---------
Income (loss) from operations               2,119           639       (24,424)

Interest income                               733             -             -
Interest expense                              (37)          (31)          (37)
                                          ---------     ---------     ---------
                                              696           (31)          (37)
                                          ---------     ---------     ---------
Income (loss) before income taxes           2,815           608       (24,461)
Provision (benefit) for
income taxes                                  678           227        (9,594)
                                          ---------     ---------     ---------
Net income (loss)                       $   2,137     $     381     $ (14,867)
                                          =========     =========     =========

Earnings (loss) per common share
Basic                                   $    0.08     $    0.01     $   (0.56)
Diluted                                 $    0.07     $    0.01     $   (0.56)
                                               ===
Weighted average shares outstanding
Basic                                  26,700,000    26,700,000    26,700,000
Diluted                                31,818,772    31,818,772    26,700,000





                                FutureFuel Corp.

                     Consolidated Statements of Cash Flows

              For the Years Ended December 31, 2006, 2005 and 2004

                             (Dollars in thousands)
                                                    2006      2005        2004
                                                   -------   -------     -------
Cash flows provide by (used in) operating
activities
Net income (loss)                                  $ 2,137     $ 381  $ (14,867)

Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Asset impairment charges                               -         -      18,305
Depreciation                                       9,067     8,940      10,218
Provision (benefit) for deferred
income taxes                                         516      (148)     (6,017)
Change in fair value of
derivative instruments                               447         -           -
Noncash environmental charges
(credits) from parent                                148    (2,682)     (1,266)
Losses on disposals of fixed
assets                                                95        67         402
Noncash interest expense                              37        31          37

Changes in operating assets and liabilities:
Accounts receivable                              (12,943)     (533)        896
Inventory                                         (6,761)    2,121      10,586
Prepaid expenses                                  (1,248)        -           -
Other assets                                        (158)     (382)       (233)
Accounts payable                                   5,117       (57)      1,102
Income taxes payable                               2,264         -           -
Accrued expenses and other
current liabilities                               (3,900)     (129)          7
Other noncurrent liabilities                        (335)      (53)       (126)
                                                   -------   -------     -------
Net cash provided by (used in)
operating activities                              (5,517)    7,556      19,044
                                                   -------   -------     -------

Cash flows provided by (used in) investing
activities
Restricted cash                                   (3,127)        -           -
Collateralization of derivative
instruments                                       (3,578)        -           -
Proceeds from the sale of fixed assets                 -        60           -
Capital expenditures                             (11,819)   (6,654)     (6,520)
                                                   -------   -------     -------
Net cash provided by (used in)
investing activities                             (18,524)   (6,594)     (6,520)
                                                   -------   -------     -------

Cash flows provided by (used in) financing
activities
Net proceeds from reverse acquisition             87,094         -           -
Transfers to parent, net                              76      (962)    (12,524)
                                                   -------   -------     -------
Net cash provided by (used in)
financing activities                              87,170      (962)    (12,524)
                                                   -------   -------     -------

Net change in cash and cash equivalents           63,129         -           -
Cash and cash equivalents at beginning of              -         -           -
period                                            
                                                   -------   -------     -------
Cash and cash equivalents at end
of period                                       $ 63,129       $ -         $ -
                                                   =======   =======     =======


                                FutureFuel Corp.
           Consolidated Statements of Changes in Stockholders' Equity
              For the Years Ended December 31, 2006, 2005 and 2004
                             (Dollars in thousands)

                                       Additional                  Net          Total
                         Common stock     paid-in  Retained investment  stockholders'
                         -------------
                       Shares    Amount   capital  earnings  of parent        equity
                       -------   ------   -------   -------    -------       -------
Balance - December 
31, 2003                    -       $ -       $ -       $ -  $ 107,933     $ 107,933

Net income (loss)           -         -         -         -    (14,867)      (14,867)
Net transfers
to parent                   -         -         -         -    (13,790)      (13,790)
                     -------   ------   -------   -------    -------       -------

Balance - December 
31, 2004                    -         -         -         -     79,276        79,276

Net income                  -         -         -                  381           381
Net transfers                                                         
to parent                   -         -         -         -     (3,584)       (3,584)
                       -------   ------   -------   -------    -------       -------

Balance - December 
31, 2005                    -         -         -         -     76,073        76,073

Net income (loss) 
prior to reverse
acquisition                 -         -         -         -       (382)         (382)
Net transfers
to parent                   -         -         -         -        213           213
Reverse
acquisition        26,700,000         3    87,091         -          -        87,094
Recapitalization            -         -    75,904         -    (75,904)            -
Net income after 
giving effect to
recapitalization            -         -         -     2,519          -         2,519
                       -------   ------   -------   -------    -------       -------

Balance - December 
31, 2006           26,700,000       $ 3 $ 162,995   $ 2,519        $ -     $ 165,517
                       =======   ======   =======   =======    =======       =======



       Notes to the Consolidated Financial Statements of FutureFuel Corp.
     (Dollars in thousands, except per share or unit amounts, and as noted)


1) Nature of operations and basis of presentation

Eastman SE, Inc.

Eastman SE, Inc. ('Eastman SE') was incorporated under the laws of the state of
Delaware on September 1, 2005 and subsequent thereto operated as a wholly-owned
subsidiary of Eastman Chemical Company ('Eastman Chemical') through October 31,
2006. Eastman SE was incorporated for purposes of effecting a sale of Eastman
Chemical's manufacturing facility in Batesville, Arkansas (the 'Batesville
Plant'). Commencing January 1, 2006, Eastman Chemical began transferring the
assets associated with the business of the Batesville Plant to Eastman SE.

The Batesville Plant was constructed to produce proprietary photographic
chemicals for Eastman Kodak Company ('Eastman Kodak'). Over the years, Eastman
Kodak shifted the plant's focus away from the photographic imaging business to
the custom synthesis of fine chemicals and organic chemical intermediates used
in a variety of end markets, including paints and coatings, plastics and
polymers, pharmaceuticals, food supplements, household detergents and
agricultural products.

In 2005, the Batesville Plant began the implementation of a biobased products
platform. This includes the production of biofuels (biodiesel, bioethanol and
lignin/biomass solid fuels) and biobased specialty chemical products (biobased
solvents, chemicals and intermediates). In addition to biobased products, the
Batesville Plant continues to manufacture fine chemicals and other organic
chemicals.

Viceroy Acquisition Corporation

Viceroy Acquisition Corporation ('Viceroy') was incorporated under the laws of
the state of Delaware on August 12, 2005 to serve as a vehicle for the
acquisition by way of asset acquisition, merger, capital stock exchange, share
purchase or similar transaction ('Business Combination') of one or more
operating businesses in the oil and gas industry. On July 12, 2006 Viceroy
completed an equity offering (see Note 10).

On July 21, 2006, Viceroy entered into an acquisition agreement with Eastman
Chemical to purchase all of the issued and outstanding stock of Eastman SE. On
October 27, 2006, a special meeting of the shareholders of Viceroy was held and
the acquisition of Eastman SE was approved by the shareholders. On October 31,
2006, Viceroy acquired all of the issued and outstanding shares of Eastman SE
from Eastman Chemical. After purchase price adjustments to date, a price of
$71,159 was paid for the stock of Eastman SE. Any future purchase price
adjustments will be treated as an adjustment to equity in the period realized.
Immediately subsequent to the acquisition, Viceroy changed its name to
FutureFuel Corp. ('FutureFuel') and Eastman SE changed its name to FutureFuel
Chemical Company ('FutureFuel Chemical').

Acquisition Accounting

For accounting purposes, the transaction is deemed to be a reverse acquisition
and FutureFuel Chemical has been treated as the accounting acquirer and
continuing reporting entity that acquired FutureFuel. Accordingly, the
October 31, 2006 acquisition has been accounted for as a capital transaction or,
more specifically, the issuance of stock by FutureFuel Chemical for the net
monetary assets of FutureFuel accompanied by a recapitalization and
reorganization with FutureFuel assuming the role of the reporting entity and
FutureFuel Chemical assuming the role of FutureFuel's operating subsidiary.

Through October 31, 2006, the operations of the Batesville Plant were included
in the consolidated financial statements of Eastman Chemical. Accordingly, the
accompanying balance sheets, statements of operations and related statements of
cash flows have been prepared from Eastman Chemical's historical accounting
records and are presented on a carve-out basis to include the historical
financial position, results of operations and cash flows applicable to Eastman
SE through October 31, 2006. As a result of the lack of capital structure of
Eastman SE prior to October 31, 2006, the net investment of the parent has been
presented in lieu of stockholder's equity.

Subsequent to October 31, 2006, the consolidated financial statements present
the combined operations of FutureFuel and FutureFuel Chemical.

Corporate Allocations

The financial statements prior to October 31, 2006 include allocations of
certain corporate services provided by Eastman Chemical's management, including
finance, legal, information systems, human resources and distribution. Eastman
Chemical has utilized its experience with the business of the Batesville Plant
and its judgment in allocating such corporate services and other support to the
periods prior to October 31, 2006. Costs allocated for such services were:

                            Ten months ended     Twelve months ended December 31:
                               October 31:
                                 ---------       ---------------------------------
                                      2006         2005                   2004
                                  ---------      -------                -------
Cost of goods sold                    $  -         $ 99                $ 1,275
Distribution                           438          874                    818
Selling, general and 
administrative                       4,398        5,327                  7,776
Research and development               652        2,388                  6,094
                                  ---------      -------                -------
Total cost and
expenses allocated                 $ 5,488      $ 8,688               $ 15,963
                                  =========      =======                =======
                                   
Allocations were made primarily based on a percentage of revenues, which
management believes represents a reasonable allocation methodology. These
allocations and estimates are not necessarily indicative of the costs and
expenses that would have resulted if Eastman SE had been operating as a separate
entity.

Eastman Chemical uses a centralized approach to cash management, hedging and the
financing of its operations. As a result, debt and related interest income and
expense, and certain cash and cash equivalents, were maintained at the corporate
office and are not included in the accompanying consolidated financial
statements.

2) Significant accounting policies

Consolidation

The accompanying consolidated financial statements include the accounts of
FutureFuel and its wholly-owned subsidiary, FutureFuel Chemical. All significant
intercompany transactions have been eliminated.

Cash and cash equivalents

Cash equivalents consist of highly liquid investments with maturities of three
months or less when purchased and are carried at cost, which approximates
market.

Accounts receivable, allowance for doubtful accounts and credit risk

Accounts receivable are recorded at the invoiced amount and do not bear
interest. FutureFuel has established procedures to monitor credit risk and has
not experienced significant credit losses in prior years. Accounts receivable
have been reduced by an allowance for amounts that may be uncollectible in the
future. This estimated allowance is based upon management's evaluation of the
collectibility of individual invoices and is based upon management's evaluation
of the financial condition of its customers and historical bad debt experience.
Write-offs are recorded at the time a customer receivable is deemed
uncollectible.

Prior to October 31, 2006, Eastman SE participated in an agreement that allowed
Eastman Chemical to sell certain domestic accounts receivable under a planned
continuous sale program to a third party. The agreement permitted the sale of
undivided interests in domestic trade accounts receivable, which Eastman
Chemical continued to service until collection. As the sale program was part of
Eastman Chemical's centralized approach to cash management, Eastman SE's $7,888
participation at December 31, 2005 is classified as accounts receivable in the
accompanying consolidated balance sheet with the corresponding liability
included in the net investment of parent.

Customer concentrations

Significant portions of FutureFuel's sales are made to a relatively small number
of customers. All sales of nonanoyloxybenzenesulfonate ('NOBS'), a bleach
activator, are made to a leading North American consumer products company
pursuant to a supply contract that is set to expire in June 2008. Sales of NOBS
totaled $84,691, $66,959 and $73,607 for the years ended December 31, 2006, 2005
and 2004, respectively. Additionally, all sales of a herbicide and certain other
intermediates used in the production of this herbicide are made to one customer.
Sales of this herbicide and its intermediates totaled $23,685, $25,063 and
$27,946 for the years ended December 31, 2006, 2005 and 2004, respectively.
These two customers represented approximately 64% and 88% of FutureFuel's
accounts receivable balance at December 31, 2006 and 2005, respectively.

Inventory

FutureFuel determines the cost of substantially all raw materials and finished
goods inventories by the last-in, first-out ('LIFO') method. FutureFuel writes
down its inventories for estimated obsolescence or unmarketable inventory equal
to the difference between the carrying value of inventory and the estimated
market value based upon current demand and market conditions.

Financial and derivative instruments

The carrying values of cash and cash equivalents, accounts receivable, accounts
payable and accrued expenses and other current liabilities approximate their
fair values due to the short-term maturities of these instruments.

FutureFuel maintains inventories of biodiesel and utilizes various derivative
instruments such as regulated futures and regulated options as an economic hedge
to reduce the effects of fluctuations in the prices of biodiesel. These
derivative instruments do not qualify for hedge accounting under the specific
guidelines of Statement of Financial Accounting Standards ('SFAS') No. 133
Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS
No. 149 Amendment of Statement 133 on Derivative Instruments and Hedging
Activities. While management believes each of these instruments are entered into
in order to effectively manage various market risks, none of the derivative
instruments are designated and accounted for as hedges primarily as a result of
the extensive record-keeping requirements.

FutureFuel records all derivative instruments at fair value. Fair value is
determined by using the closing prices of the derivative instruments on the New
York Mercantile Exchange at the end of an accounting period. Changes in fair
value of the derivative instruments are recorded in the statements of operations
as a component of cost of goods sold. FutureFuel maintains a margin account with
a broker to collateralize these derivative instruments.

Property, plant and equipment

Property, plant and equipment is carried at cost. Maintenance and repairs are
charged to earnings; replacements and betterments are capitalized. When
FutureFuel retires or otherwise disposes of assets, it removes the cost of such
asset and related accumulated depreciation from the accounts. FutureFuel records
any profit and loss on retirement or other disposition in earnings. Asset
impairments are reflected as increases in accumulated depreciation. Depreciation
is provided using the straight-line method over the following estimated useful
lives:

Buildings and building equipment                                   20 - 50 years
Machinery and equipment                                             3 - 33 years
Transportation equipment                                            5 - 33 years
Other                                                               5 - 33 years


Restricted cash and cash equivalents

Restricted cash and cash equivalents include cash and cash equivalents reserved
for purposes of meeting certain Arkansas Department of Environmental Quality
requirements that become applicable in the event of a closure of the Batesville
Plant. The amount of cash reserved for this purpose is based on a formula
derived by the state of Arkansas and totaled $3,127 at December 31, 2006. No
cash was restricted in periods prior to December 31, 2006.

Impairment of assets

FutureFuel evaluates the carrying value of long-lived assets when events or
changes in circumstances indicate that the carrying value may not be
recoverable. Such events and circumstances include, but are not limited to,
significant decreases in the market value of the asset, adverse changes in the
extent or manner in which the asset is being used, significant changes in
business climate, or current or projected cash flow losses associated with the
use of the assets. The carrying value of a long-lived asset is considered
impaired when the total projected undiscounted cash flows from such assets are
separately identifiable and are less than its carrying value. In that event, a
loss is recognized based on the amount by which the carrying value exceeds the
fair value of the long-lived asset. For long-lived assets to be held for use in
future operations and for fixed (tangible) assets, fair value is determined
primarily using either the projected cash flows discounted at a rate
commensurate with the risk involved or appraisal. For long-lived assets to be
disposed of by sale or other than sale, fair value is determined in a similar
manner, except that fair values are reduced for disposal costs.

Asset retirement obligations

FutureFuel establishes reserves for closure/post-closure costs associated with
the environmental and other assets it maintains. Environmental assets include
but are not limited to waste management units such as incinerators, landfills,
storage tanks and boilers. When these types of assets are constructed or
installed, a reserve is established for the future costs anticipated to be
associated with the closure of the site based on an expected life of the
environmental assets, the applicable regulatory closure requirements and
FutureFuel's environmental policies and practices. These expenses are charged
into earnings over the estimated useful life of the assets. Currently,
FutureFuel estimates the useful life of each individual asset up to 35 years.
Changes made in estimates of the asset retirement obligation costs or the
estimate of the useful lives of these assets are reflected in earnings as an
increase or decrease in the period such changes are made.

Environmental costs are capitalized if they extend the life of the related
property, increase its capacity and/or mitigate or prevent future contamination.
The cost of operating and maintaining environmental control facilities is
charged to expense.

Deferred income taxes

Prior to October 31, 2006, Eastman SE was included in the consolidated federal
tax return of Eastman Chemical. For purposes of the financial results presented
up to that date, the provision for income taxes has been prepared using the
separate return method. As Eastman SE did not file a separate federal tax return
prior to October 31, 2006 and no tax sharing agreement was in place, any amounts
payable or receivable were actually due to or receivable from Eastman Chemical
and are included in the net investment of parent and transfers to parent.

Income taxes are accounted for using the asset and liability method. Under this
method, income tax assets and liabilities are recognized for temporary
differences between financial statement carrying amounts of assets and
liabilities and their respective income tax basis. A future income tax asset or
liability is estimated for each temporary difference using enacted and
substantively enacted income tax rates and laws expected to be in effect when
the asset is realized or the liability settled. A valuation allowance is
established, if necessary, to reduce any future income tax asset to an amount
that is more likely than not to be realized.

Revenue recognition

Revenue from product sales are recognized when persuasive evidence of an
arrangement exists, delivery has occurred or services have been rendered, the
price to the customer is fixed or determinable and collectibility is reasonably
assured.

Prior to October 31, 2006, certain sales from Eastman SE to then affiliated
companies, such as Eastman Chemical, were recorded with no margin based on the
interdivision arrangements. Since October 31, 2006, these sales have been
recorded based upon the pricing provisions stipulated within negotiated sales
contracts.

Shipping and handling fees

Shipping and handling fees related to sales transactions are billed to customers
and recorded as sales revenues.

Cost of goods sold and selling, general and administration expense

Cost of goods sold includes the costs of inventory sold, related purchasing,
distribution and warehousing costs, costs incurred for shipping and handling,
and environmental remediation costs.

Selling, general and administration expense includes personnel costs associated
with sales, marketing and administration, legal and legal-related costs,
consulting and professional services fees, advertising expenses, and other
similar costs.

Research and development

All costs identified as research and development costs are charged to expense
when incurred.

Planned major maintenance activities

Expenditures for planned major maintenance activities are recognized as expense
as incurred.

Earnings per share

Basic earnings per share is computed by dividing net income (the numerator) by
the weighted average number of outstanding shares (the denominator) for the
period. Diluted earnings per share are calculated in accordance with the
treasury stock method to determine the dilutive effect of warrants and options.
The computation of diluted earnings per share includes the same numerator, but
the denominator is increased to include the number of additional common shares
from the exercise of warrants and options that would have been outstanding if
potentially dilutive common shares had been issued.

The weighted average basic and diluted shares outstanding for the years ended
December 31, 2006, 2005 and 2004 have been calculated assuming that all shares
outstanding at December 31, 2006, net of those shares whose holders exercised
their repurchase rights as described in Note 10, were outstanding for all
periods presented. The dilutive impact of the warrants, as described in Note 10,
was calculated based upon the trading activity of FutureFuel's common stock from
July 13, 2006 to December 31, 2006.

Comprehensive income (loss)

As it has not historically recognized any other comprehensive income (loss), the
comprehensive income (loss) of FutureFuel is comprised entirely of its net
income (loss). As FutureFuel recognizes revenues, expenses, gains or losses
that, under accounting principles generally accepted in the U.S., are included
in comprehensive income but excluded from net income, these items will be
recognized as a component of other comprehensive income in its financial
statements.

Commitments and contingent liabilities

In the ordinary course of its business, FutureFuel enters into supply and sales
contracts as deemed commercially desirable. Supply contracts are utilized to
ensure the availability of raw materials used in the production process. Sales
contracts are utilized to ensure the future sale of produced product.

FutureFuel and its operations from time to time may be parties to or targets of
lawsuits, claims, investigations and proceedings including product liability,
personal injury, patent and intellectual property, commercial, contract,
environmental, health and safety and environmental matters, which are handled
and defended in the ordinary course of business. FutureFuel accrues a liability
for such matters when it is probable that a liability has been incurred and the
amount can be reasonably estimated. When a single amount cannot be reasonably
estimated but the cost can be estimated within a range, FutureFuel accrues the
minimum amount.

Use of estimates

The preparation of financial statements in conformity with accounting principals
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during a reporting
period. Estimates are used when accounting for allowance for doubtful accounts,
depreciation, amortization, asset retirement obligations and income taxes as
well as the evaluation of potential losses due to impairments or future
liabilities. Actual results could differ materially from those estimates.

3) Inventories

The carrying values of inventory were as follows as of December 31:

                                                               2006       2005
                                                           ---------  ---------
At first-in, first-out or average cost (approximates
current cost)
Finished goods                                             $ 11,832    $ 7,405
Raw materials and supplies                                   12,631      9,842
                                                           ---------  ---------
                                                             24,463     17,247
LIFO reserve                                                (12,872)   (12,417)
                                                           ---------  ---------
Total inventories                                          $ 11,591    $ 4,830
                                                           =========  =========


4) Derivative instruments

The volumes and carrying values of FutureFuel's derivative instruments were as
follows at December 31:


                                                 Asset/(Liability)
                                                 -----------------
                                         2006                        2005
                                --------------------     ----------------------
                                Quantity        Fair      Quantity         Fair
                               (000 bbls)     Market     (000 bbls)      Market
                                    Long/      Value          Long/       Value
                                  (Short)                   (Short)
Regulated fixed price future
commitments, included in
prepaid expenses and
other current assets                (250)     $  (28)            -          $ -
Regulated options, included 
in prepaid expenses and
other current assets                (100)     $ (419)            -          $ -



The margin account maintained with a broker to collateralize these derivative
instruments carried an account balance of $3,578 at December 31, 2006, and is
classified as other current assets in the consolidated balance sheet. This
margin account carried no balance at December 31, 2005. The carrying values of
the margin account and of the derivative instruments are included in other
current assets and comprise the entire account balance.

5) Property, plant and equipment

Property, plant and equipment consisted of the following at December 31:
                                                         2006             2005
                                                     ---------        ---------
Land                                                 $  1,345         $  1,345
Buildings and building equipment                       47,895           47,301
Machinery and equipment                               409,676          403,051
Construction in progress                                6,335            2,538
Accumulated depreciation                             (367,490)        (359,120)
                                                     ---------        ---------
                                                     $ 97,761         $ 95,115
                                                     =========        =========


Depreciation expense totaled $9,067, $8,940 and $10,218 for the years ended
December 31, 2006, 2005 and 2004, respectively.

6) Other assets

Other assets is comprised of spare equipment and parts that have not been placed
into service as of the balance sheet date and are not expected to be placed into
service for the twelve-month period subsequent to the balance sheet date. The
balance related to these items totaled $2,764 and $2,606 at December 31, 2006
and 2005, respectively.

7) Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following at
December 31:
                                                        2006             2005
                                                     ---------        ---------
Accrued employee liabilities                          $  773        $   4,238
Accrued property, use and
franchise taxes                                          373            1,419
Accrued professional fees                                340                -
Amounts collected on behalf of
Eastman Chemical                                         178                -
Other                                                     93                -
                                                     ---------        ---------
                                                     $ 1,757        $   5,657
                                                     =========        =========


8) Asset retirement obligations and environmental reserves

The Batesville Plant generates hazardous and non-hazardous wastes, the
treatment, storage, transportation and disposal of which are regulated by
various governmental agencies. In addition, the Batesville Plant may be required
to incur costs for environmental and closure and post closure costs under the
Resource Conservation and Recovery Act ('RCRA'). FutureFuel's reserve for asset
retirement obligations and environmental contingencies was $545 and $513 as of
December 31, 2006 and 2005, respectively.

The following table summarizes the activity of accrued obligations for asset
retirement obligations for the years ended December 31:

                                2006                  2005                 2004
                            ---------            ---------            ---------
Beginning balance at
January 1                      $  513              $   474               $  612
Accretion expense                  37                   31                   37
Revisions in estimates             (5)                   8                 (175)
                            ---------            ---------            ---------
Balance at December 31         $  545              $   513               $  474
                            =========            =========            =========


In addition, certain closure and post-closure liabilities were not transferred
to the Batesville Plant and were retained by Eastman Chemical. As these
liabilities related to the operations of the Batesville Plant, charges (credits)
of $148, $(2,682) and $(1,266) for the years ended December 31, 2006, 2005 and
2004, respectively, were included in cost of goods sold within the accompanying
consolidated statements of operations in deriving the results of operations.

9) Deferred taxes


The following table summarizes the provision for income taxes for the years
ended December 31:
                                               2006          2005          2004
                                          ---------     ---------     ---------
Income (loss) before taxes - U.S.          $  2,815        $  608    $ (24,461)
                                          =========     =========     =========
Provision/(benefit) for income taxes:
Current                                    $     10        $  313    $  (2,983)
Deferred                                        479          (132)      (5,370)
State and other Current                         107            62         (593)
Deferred                                         82           (16)        (648)
                                          ---------     ---------     ---------
                                 Total     $    678        $  227    $  (9,594)
                                          =========     =========     =========


Differences between the provision for income taxes computed using the U.S.
federal statutory income tax rate were as follows as of December 31:
                                2006                 2005                 2004
                             ---------            ---------            ---------
Amount computed using
the statutory rate               $ 985                $ 213            $ (8,561)
Section 199 manufacturing
deduction                          (40)                 (10)                  -
Agri-biodiesel production
credit                            (401)                   -                   -
State income taxes, net            134                   24              (1,033)
                             ---------            ---------            ---------
Provision for income taxes       $ 678                $ 227            $ (9,594)
                             =========            =========            =========


The significant components of deferred tax assets and liabilities were as
follows as of December 31:
                                                      2006       2005       2004
                                                 ---------  ---------  ---------
Deferred tax assets
Vacation pay                                         $  52     $  258     $  317
Allowance for doubtful accounts                         16          -          -
Inventory reserves 175                                 175        279        338
Separation and retirement allowances                     -        191        169
Deferred compensation                                    -        129        153
Asset retirement obligation                            206        211        196
                                                 ---------  ---------  ---------
Total deferred tax assets                              449      1,068      1,173
                                                 ---------  ---------  ---------

Deferred tax liabilities
Derivative instruments                                (45)         -          -
Depreciation                                      (23,884)   (23,987)   (24,240)
                                                 ---------  ---------  ---------
Total deferred tax liabilities                    (23,929)   (23,987)   (24,240)
                                                 ---------  ---------  ---------

Net deferred tax liabilities                   $  (23,480) $ (22,919) $ (23,067)
                                                 =========  =========  =========

As recorded in the consolidated balance sheet
Current deferred income tax asset              $       68  $      552 $      601
Noncurrent deferred income tax asset                  381         516        572
Accrued expenses and other current
liabilities                                           (45)         -          -
Noncurrent deferred income tax liability          (23,884)   (23,987)   (24,240)
                                                 ---------  ---------  ---------
Net deferred income tax liabilities            $  (23,480) $ (22,919) $ (23,067)
                                                 =========  =========  =========


10) Stockholders' equity

On July 12, 2006, Viceroy completed an offering of 22,500,000 units. Each unit
consisted of one share of Viceroy's common stock and one warrant to acquire one
share. The units were issued at $8.00 per unit. In connection with this
offering, the shares and warrants issued were listed on the Alternative
Investment Market ('AIM') maintained by the London Stock Exchange plc. The net
proceeds of this offering totaled $172,500 and were placed into a trust fund.
All or a portion of the trust fund was to be released for, among other things, a
Business Combination approved by the holders of Viceroy's common stock.
Moreover, the trust fund was to be released in its entirety upon the completion
of a Business Combination which, either on its own or when combined with all
previous Business Combinations, had an aggregate transaction value of at least
50% of the initial trust amount (which initial trust amount excluded certain
deferred placing fees).

Certain of the Viceroy shareholders who purchased units in the July 12, 2006
offering were granted repurchase rights whereby at the time Viceroy sought
approval for a Business Combination these shareholders could vote against the
Business Combination and require Viceroy to repurchase their common shares for
$7.667 per common share plus accrued interest earned on the offering proceeds
held in trust net of expenses and income taxes payable on the interest earned.
Shareholders who exercised their repurchase rights retained all rights to any
warrants that they may have held.

At the October 27, 2006 special meeting of the shareholders of Viceroy, the
acquisition of Eastman SE by Viceroy was approved by the shareholders of
Viceroy. Shareholders owning 1,425,000 common shares of Viceroy voted against
the acquisition and exercised their repurchase rights. Accordingly, such shares
are deemed to be held for redemption, are not deemed to be outstanding, and are
not included in equity in the post-acquisition period. The repurchase price
totaled $7.71 per share, calculated as $7.667 plus $0.043 of accrued interest
earned on the offering proceeds held in trust net of expenses and income taxes
payable on the interest earned per share. Pursuant to the terms of the July 12,
2006 offering, the repurchase price was payable by Viceroy only when those
shareholders who exercised their repurchase rights surrendered to Viceroy their
common share certificates. Through December 31, 2006, shareholders owing
1,175,000 common shares of FutureFuel had surrendered their shares to FutureFuel
and FutureFuel had paid an aggregate $9,059 to repurchase these shares. At
December 31, 2006, FutureFuel remained obligated to repurchase 250,000 common
shares at the $7.71 per share repurchase price. The $1,928 payable to these
shareholders remains in trust and is subject to distribution to the shareholders
upon proper presentation of the related stock certificates.

As discussed in Note 1, immediately subsequent to the acquisition Viceroy
changed its name to FutureFuel Corp. and Eastman SE changed its name to
FutureFuel Chemical Company. As also discussed in Note 1, for accounting
purposes, the transaction is deemed to be a reverse acquisition and FutureFuel
Chemical has been treated as the accounting acquirer and continuing reporting
entity that acquired FutureFuel. Accordingly, the October 31, 2006 acquisition
has been accounted for as a capital transaction or, more specifically, the
issuance of stock by FutureFuel Chemical for the net monetary assets of
FutureFuel accompanied by a recapitalization and reorganization with FutureFuel
assuming the role of the reporting entity and FutureFuel Chemical assuming the
role of FutureFuel's operating subsidiary.

At December 31, 2006, 5,000,000 shares of $0.0001 par value preferred stock and
75,000,000 shares of $0.0001 a par value common stock were authorized. At
December 31, 2006, no preferred shares were outstanding and 26,700,000 common
shares were issued and outstanding.

At December 31, 2006, 22,500,000 warrants to purchase common shares of
FutureFuel were issued and outstanding. Each warrant is exercisable for one
common share of FutureFuel at an exercise price of $6.00 per warrant. These
warrants are only settleable through physical delivery of the common share
certificate and expire July 12, 2010.

11) Earnings per share

The computation of basic and diluted earnings per common share was as follows
for the years ended December 31:

                                           2006         2005         2004
                                     ----------   ----------   ----------
Net income (loss) available to
common stockholders                     $ 2,137        $ 381   $ (14,867)

Weighted average number of
common shares outstanding            26,700,000   26,700,000   26,700,000

Effect of warrants                    5,118,772    5,118,772            -
Weighted average diluted number
of common shares outstanding         31,818,772   31,818,772   26,700,000

Basic earnings per share                 $ 0.08       $ 0.01      $ (0.56)
Diluted earnings per share               $ 0.07       $ 0.01      $ (0.56)


Warrants to purchase 22,500,000 common shares of FutureFuel were not included in
the computation of diluted earnings per share in 2004 as FutureFuel reported a
net loss for the period and the inclusion of those securities in the computation
would have been antidilutive.

12) Impairments and severance charges

Impairments and severance charges totaled approximately $2,462 and $19,485 in
the years ended December 31, 2005 and 2004, respectively. These charges
consisted of severance charges of $2,462 in the year ended December 31, 2005 and
non-cash asset impairment charges and severance charges of $18,305 and $1,180,
respectively, in the year ended December 31, 2004.

Eastman SE recognized $2,462 and $1,180 in severance charges in the years ended
December 31, 2005 and 2004, respectively, from ongoing cost reduction efforts
related to employee separation programs announced in April 2004.

In 2004, Eastman SE recognized asset impairments of approximately $18,305
related to assets at the Batesville Plant. This impairment primarily relates to
the closure of specific fixed assets used to manufacture certain performance
chemicals product lines that were divested by Eastman Chemical. The related
assets were deemed to be impaired, were determined to have no disposal value and
remained at the Batesville Plant.

No impairment charges or severance costs were incurred in the year ended
December 31, 2006.

13) Employee benefit plans

Eastman Chemical maintains certain deferred benefit plans that provide eligible
employees, including those who have been a part of the operations of Eastman SE,
with retirement benefits. All such benefit plans and associated benefit
obligations were retained by Eastman Chemical. For the purposes of the
presentation with the financial statements of FutureFuel Corp., costs recognized
for these benefits are allocated based on the employee participants and are
summarized based on the following component plans.

Defined benefit pension plans

Eastman Chemical maintains defined benefit plans that provide eligible
employees, which included those of the Batesville Plant while they were employed
by Eastman Chemical, with retirement benefits. Costs recognized for these
benefits are recorded using estimated amounts, which may change as actual costs
derived for the year are determined.

Defined contribution plans

Eastman Chemical sponsors a defined contribution employee stock ownership plan
(the 'ESOP') in which the employees of the Batesville Plant participated while
they were employed by Eastman Chemical. The ESOP is a qualified plan under
Section 401(a) of the Internal Revenue Code, which is a component of the Eastman
Investment Plan and Employee Stock Ownership Plan ('EIP/ESOP').

Postretirement welfare plans

Eastman Chemical provides life insurance and health care benefits for eligible
retirees, and health care benefits for retirees' eligible survivors in the
United States.

Eastman SE was allocated $3,005 of expense related to these employee benefit
plans for the ten months ended October 31, 2006 and $4,386 and $4,435 for the
years ended December 31, 2005 and 2004, respectively.

No liabilities or assets affiliated with any Eastman Chemical employee benefit
plan, including the defined benefit pension plans, the defined contribution plan
and postretirement welfare plans, were assumed or acquired in the reverse
acquisition as described in Note 1.

Defined contribution savings plan

FutureFuel currently offers its employees a defined contribution savings plan,
which covers substantially all employees. Under this plan, FutureFuel matches
the amount of employee contributions, subject to specified limits. Plan related
expenses totaled $120 for the year ended December 31, 2006. No expense related
to this plan was incurred in the years ended December 31, 2005 and 2004.

14) Related party transactions

In addition to receiving support services such as research and development,
legal, finance, treasury, income tax, public relations, executive management
functions, and certain other administrative services from Eastman Chemical or
Eastman Chemical affiliates prior to the October 31, 2006 reverse acquisition,
Eastman SE purchased a significant portion of its raw materials and sold a
significant portion of its product produced to Eastman Chemical or affiliates of
Eastman Chemical. Purchases of raw materials from affiliates of Eastman Chemical
totaled $5,789 for the ten months ended October 31, 2006 and $5,014 and $4,115
for the years ended December 31, 2005 and 2004, respectively. Sales of Eastman
SE products to Eastman Chemical or affiliates of Eastman Chemical totaled $5,952
for the ten months ended October 31, 2006 and $2,493 and $1,396 for the years
ended December 31, 2005 and 2004, respectively.

Historically, Eastman SE processed certain products for Eastman Chemical or
Eastman Chemical affiliates for which the ownership of the product had not been
transferred to Eastman SE. Eastman SE historically processed such products on a
cost basis without recognizing a selling margin. As the risks and rewards of
ownership were not transferred to Eastman SE, the related inventories, revenues
and costs have not been reflected in the accompanying financial statements. The
financial statements include the cost of processing and the corresponding
revenue received for processing such products. The costs of product processed on
behalf of Eastman Chemical or Eastman Chemical affiliates totaled $10,650 for
the ten months ended October 31, 2006 and $12,682 and $14,816 for the years
ended December 31, 2005 and 2004, respectively.

Inventories of $4,103 were held by FutureFuel on behalf of Eastman Chemical or
Eastman Chemical affiliates as of December 31, 2005.

Prior to October 31, 2006, all receivables and payables due to or from Eastman
Chemical or Eastman Chemical affiliates were included in the net investment of
parent.

Since October 31, 2006 all sales and purchases between FutureFuel and Eastman
Chemical or any Eastman Chemical affiliates have been made pursuant to
negotiated contracts. All receivables and payables stemming from transactions
with Eastman Chemical or Eastman Chemical affiliates are included in accounts
receivable and accounts payable.

FutureFuel enters into transactions with companies affiliated with or controlled
by a director and significant shareholder.

FutureFuel leases oil storage capacity from an affiliate under a storage and
thruput agreement. This agreement provides for the storage of biodiesel,
biodiesel/petrodiesel blends, palm oil, methanol and other biodiesel feedstocks
in above-ground storage tankage at designated facilities of the affiliate. Lease
expense related to this agreement totaled $9 for the year ended December 31,
2006. No expense was incurred for the years ended December 31, 2005 and 2004,
respectively.

FutureFuel entered into a commodity trading advisor agreement with an affiliate.
Pursuant to the terms of this agreement the affiliate provides advice to
FutureFuel concerning the purchase, sale, exchange, conversion and/or hedging of
commodities as FutureFuel may request from time to time. Expenditures related to
this agreement totaled $20 in the year ended December 31, 2006. No expenses were
incurred for this contract in the years ended December 31, 2005 and 2004.

FutureFuel entered into a railcar sublease agreement with an affiliate. Pursuant
to the terms of this sublease, FutureFuel leases from the affiliate railcars
upon the same terms, conditions and price the affiliate leases the railcars.
Lease terms for individual railcars begin upon delivery of the railcars. No
railcars had been received through December 31, 2006 under this agreement. As
such, no expenditures were incurred.

FutureFuel reimburses an affiliate for travel and other administrative services
incurred on its behalf. Such reimbursement is performed at cost with the
affiliate realizing no profit on the transaction. These reimbursements totaled
$123 in 2006.

Accounts payable included $112 and accrued expenses and other current
liabilities included $40 due to related parties at December 31, 2006. All
amounts due to or from related parties as of December 31, 2005 and 2004 were
included in net investment of parent.

15) Segment information

FutureFuel has determined that is has two reportable segments organized along
product lines - chemicals and biofuels. The accounting policies of the segments
are the same as those described in the summary of significant accounting
policies in Note 2.

Chemicals

FutureFuel's chemicals segment manufactures diversified chemical products that
are sold externally to third party customers and to Eastman Chemical. This
segment comprises two components: 'custom manufacturing' (manufacturing
chemicals for specific customers); and 'performance chemicals' (multi-customer
specialty chemicals).

Biofuels

FutureFuel's biofuels business segment manufactures and markets biodiesel.
Biodiesel commercialization was achieved in October 2005. Biodiesel revenues are
generally derived in one of two ways. Revenues are generated under tolling
agreements whereby customers supply key biodiesel feed stocks which FutureFuel
then converts into biodiesel at the Batesville Plant in exchange for a fixed
price processing charge per gallon of biodiesel produced. Revenues are also
generated through the sale of biodiesel to customers through FutureFuel's
distribution network at the Batesville Plant and through distribution facilities
available at a leased oil storage facility near Little Rock, Arkansas at
negotiated prices.

Summary of long-lived assets and revenues by geographic area

All of FutureFuel's long-lived assets are located in the U.S.

Most of FutureFuel's sales are transacted with title passing at the time of
shipment from the Batesville Plant, although some sales are transacted based on
title passing at the delivery point. While many of FutureFuel's chemicals are
utilized to manufacture products that are shipped, further processed and/or
consumed throughout the world, the chemical products, with limited exceptions,
generally leave the United States only after ownership has transferred from
FutureFuel to the customer. Rarely is FutureFuel the exporter of record, never
is FutureFuel the importer of record into foreign countries and FutureFuel is
not always aware of the exact quantities of its products that are moved into
foreign markets by its customers. FutureFuel does track the addresses of its
customers for invoicing purposes and uses this address to determine whether a
particular sale is within or without the United States. FutureFuel's revenues
for the last three years ended December 31 attributable to the United States and
foreign countries (based upon the billing addresses of its customers) were as
follows:

-------------------         -------------  -----------  ---------
Fiscal Year                 United States  All Foreign      Total
                                             Countries
-------------------         -------------  -----------  ---------
December 31, 2006               $ 131,893     $ 18,877  $ 150,770
December 31, 2005               $ 105,719     $ 13,820  $ 119,539
December 31, 2004               $ 138,636      $ 5,521  $ 144,157


For the year ended December 31, 2004, revenues from a single foreign country did
not exceed 2% of total revenues. Beginning in 2005, FutureFuel Chemical Company
began invoicing Procter & Gamble International Operations Mexico, D.F. directly,
at which time revenues from Mexico became a material component of total
revenues. For the years ended December 31, 2005 and 2006, revenues from Mexico
accounted for 10% and 11%, respectively, of total revenues. Other than Mexico,
revenues from a single foreign country during 2005 and 2006 did not exceed 1% of
total revenues.

Summary of business by segment
                        
                                        2006         2005         2004
                                   ---------    ---------    ---------
Revenues
Chemicals                          $ 137,430    $ 119,539    $ 144,157
Biofuels                              13,340            -            -
                                   ---------    ---------    ---------
Revenues                           $ 150,770    $ 119,539    $ 144,157
                                   =========    =========    =========
Segment gross margins
Chemicals                           $ 22,949     $ 16,837     $ 17,108
Biofuels                              (9,646)           -            -
                                   ---------    ---------    ---------
Segment gross margins                 13,303       16,837       17,108
Corporate expenses                   (11,184)     (16,198)     (41,532)
                                   ---------    ---------    ---------
Income (loss) before interest
and taxes                              2,119          639      (24,424)
Interest income                          733            -            -
Interest expense                         (37)         (31)         (37)
Provision for income taxes              (678)        (227)       9,594
                                   ---------    ---------    ---------
Net income (loss)                    $ 2,137        $ 381    $ (14,867)
                                   =========    =========    =========


No biofuels were sold by FutureFuel in 2004. FutureFuel's 2005 biofuel revenues
and related gross margin were inconsequential. Due to the inconsequential nature
of the amounts, 2005 biofuel gross margin has been included in the chemicals
gross margin for that year.

Depreciation is allocated to segment costs of goods sold based on plant usage.
The total assets and capital expenditures of FutureFuel have not been allocated
to individual segments as large portions of these assets are shared to varying
degrees by each segment, causing such an allocation to be of little value.

16) Commitments

Lease agreements

FutureFuel has entered into lease agreements for oil storage capacity and
railcars. Minimum rental commitments under existing noncancellable operating
leases as of December 31, 2006 were as follows:

2007                                  $ 318
2008                                    287
2009                                    108
2010                                     45
2011                                     45
Thereafter                               37
                                   ---------
                                      $ 840
                                   =========


Lease expenses totaled $115, $182 and $181 for the years ended December 31,
2006, 2005 and 2004, respectively.

Purchase obligations

FutureFuel has entered into contracts for the purchase of goods and services
including contracts for the expansion of FutureFuel's biodiesel related
infrastructure, the development, implementation and maintenance of an enterprise
resource planning computer software package, the purchase of biodiesel related
feedstocks and the licensing of a chemical modeling software product.

Deferred payments Eastman Chemical

In connection with the purchase of shares of Eastman SE, FutureFuel agreed to
pay Eastman Chemical $0.02 per gallon of biodiesel sold by FutureFuel during the
three-year period commencing on October 31, 2006 and ending on October 31, 2009.
Payments to Eastman Chemical in 2006 for this agreement totaled $11.

17) Recently issued accounting standards

In February 2006, the Financial Accounting Standards Board ('FASB') issued SFAS
No. 155, Accounting for Certain Hybrid Financial Instruments, an amendment of
SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities and
SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities. SFAS No. 155 simplifies accounting for certain
hybrid instruments under SFAS No. 133 by permitting fair value remeasurement for
financial instruments containing an embedded derivative that otherwise would
require bifurcation. SFAS No. 155 eliminates both the previous restriction under
SFAS No. 140 on passive derivative instruments that a qualifying special-purpose
entity may hold and SFAS No. 133 Implementation Issue No. D1, Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets, which
provides that beneficial interests are not subject to the provisions of SFAS No.
133. SFAS No. 155 also establishes a requirement to evaluate interests in
securitized financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an embedded
derivative requiring bifurcation, and clarifies that concentrations of credit
risk in the form of subordination are not imbedded derivatives. SFAS No. 155 is
effective for all financial instruments acquired, issued, or subject to a
remeasurement event occurring after the beginning of an entity's fiscal year
that begins after September 15, 2006. FutureFuel is currently evaluating the
effect SFAS No. 157 will have on its consolidated financial position, liquidity,
and results of operations.

In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of
Financial Assets, an amendment of SFAS No. 140. SFAS No. 156 permits entities to
choose to either subsequently measure servicing rights at fair value and report
changes in fair value in earnings or amortize servicing rights in proportion to
and over the estimated net servicing income or loss and assess to rights for
impairment or the need for an increased obligation. SFAS No. 156 also clarifies
when a servicer should separately recognize servicing assets and liabilities;
requires all separately recognized assets and liabilities to be initially
measured at fair value, if practicable; and permits a one-time reclassification
of available-for-sales securities to trading securities by an entity with
recognized servicing rights and requires additional disclosures for all
separately recognized servicing assets and liabilities. SFAS No. 156 is
effective as of the beginning of an entity's fiscal year that begins after
September 15, 2006. FutureFuel is currently evaluating the effect SFAS No. 157
will have on its consolidated financial position, liquidity, and results of
operations.

In July 2006, the FASB issued Interpretation No. 48 ('FIN 48'), Accounting for
Uncertainty in Income Taxes-an Interpretation of SFAS 109 Accounting for Income
Taxes. FIN 48 prescribes a comprehensive model for how a company should
recognize, measure, present, and disclose in its financial statements uncertain
tax positions that a company has taken or expects to take on a tax return. Under
FIN 48, the financial statements will reflect expected future tax consequences
of such positions presuming the taxing authorities' full knowledge of the
position and all relevant facts, but without considering time values. FIN 48
also revises disclosure requirements and introduces a prescriptive, annual,
tabular roll-forward of the unrecognized tax benefits. FIN 48 is effective for
fiscal years beginning after December 15, 2006. FutureFuel does not expect the
adoption of FIN 48 to have a material effect on its consolidated financial
position, liquidity, or results of operations.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which
addresses the measurement of fair value by companies when they are required to
use a fair value measure for recognition or disclosure purposes under GAAP. SFAS
No. 157 provides a common definition of fair value to be used throughout GAAP
which is intended to make the measurement of fair value more consistent and
comparable and improve disclosures about those measures. SFAS No. 157 will be
effective for an entity's financial statements issued for fiscal years beginning
after November 15, 2007. FutureFuel is currently evaluating the effect SFAS No.
157 will have on its consolidated financial position, liquidity, and results of
operations.

In September 2006, the FASB issued Staff Position No. AUG AIR-1 ('FSP No. AUG
AIR-1'), which addresses the accounting for planned major maintenance
activities. FSP No. AUG AIR-1 amends certain provisions in the American
Institute of Certified Public Accountants ('AICPA') Industry Audit Guide and APB
Opinion No. 28, Interim Financial Reporting. Four alternative methods of
accounting for planned major maintenance activities were permitted: direct
expense, built-in overhaul, deferral, and accrual ('accrue-in-advance'). This
FSP prohibits the use of the accrue-in-advance method of accounting for planned
major maintenance activities because it results in the recognition of a
liability in a period prior to the occurrence of the transaction or event
obligating the entity. FSP No. AUG AIR-1 is effective for an entity's financial
statements issued for fiscal years beginning after December 15, 2006. FutureFuel
does not utilize the accrue-in-advance method of accounting and therefore
expects this FSP to have no impact on its consolidated financial position,
liquidity, or results of operations.

In February, 2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities-Including an amendment of FASB
Statement No. 115. SFAS No. 159 permits companies to choose to measure many
financial instruments and certain other items at fair value at specified
election dates. Upon adoption, an entity shall report unrealized gains and
losses on items for which the fair value option has been elected in earnings at
each subsequent reporting date. Most of the provisions apply only to entities
that elect the fair value option. However, the amendment to SFAS No. 115,
Accounting for Certain Investments in Debt and Equity Securities, applies to all
entities with available for sale and trading securities. SFAS No. 159 will be
effective as of the beginning of an entity's first fiscal year that begins after
November 15, 2007. FutureFuel is currently evaluating the effect SFAS No. 159
will have on its consolidated financial position, liquidity, and results of
operations.

18) Subsequent events

Share redemption

In January 2007 the last remaining shareholders who exercised their repurchase
rights relinquished their stock certificates to FutureFuel and FutureFuel
subsequently paid the $1,928 repurchase price to these shareholders from the
trust.

Credit agreement

On March 14, 2007, FutureFuel Chemical entered into a revolving credit agreement
with a commercial bank. This credit agreement makes up to $50,000 available to
FutureFuel Chemical for working capital requirements, capital expenditures and
other general corporate purposes. This credit agreement is secured by specific
collateral, including FutureFuel Chemical's accounts receivable and inventory.
The maximum availability under this credit agreement at any point in time is
determined based upon a borrowing base calculation, which is in turn based upon
the eligible accounts receivable and inventory balances of FutureFuel Chemical.
The credit agreement contains financial and non-financial restrictive covenants,
which, among other things, require FutureFuel Chemical to maintain a certain
ratio of debt to earnings before interest, taxes, depreciation and amortization.

Advances under the credit facility bear interest, payable monthly, at rates
based upon the then current prime rate or based upon the then current London
interbank offered rate plus margins ranging from (1.00%) to 1.70%. Additionally,
FutureFuel Chemical will pay a commitment fee of 0.25% on any unused
availability. This credit agreement matures on March 14, 2010.

FutureFuel unconditionally guaranteed any and all indebtedness and obligations
of FutureFuel Chemical to the commercial bank under this credit agreement.

No borrowings have yet been made under this credit agreement.

Purchase price settlement

On March 30, 2007, FutureFuel received $2,812 (plus interest thereon) from
Eastman Chemical as satisfaction of certain agreed-to purchase price adjustments
stemming from the October 31, 2006 acquisition of Eastman SE. A receivable from
Eastman Chemical was included in the consolidated balance sheet of FutureFuel at
December 31, 2006 in anticipation of this payment from Eastman Chemical.
FutureFuel and Eastman Chemical continue to discuss remaining potential purchase
price adjustments (which may be recognized in future periods if and when they
are realized by FutureFuel).

Customer dispute

A customer of FutureFuel Chemical has indicated it has been billed on certain
products for amounts aggregating up to $1,400 in excess of their management's
interpretation of the appropriate billings under their contract with FutureFuel
Chemical since the second quarter of 2004. FutureFuel has evaluated the position
asserted by the customer and the arrangements under the contract and has
determined that they do not believe there have been any excess billings or
overpayments under this contract. As a result, management intends to vigorously
defend against any such claim if made by the customer. In addition, to the
extent such a liability exists, FutureFuel believes it has a right under the
Acquisition Agreement between itself and Eastman Chemical to assert a claim with
respect to amounts related to periods prior to October 31, 2006.



                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Board of Directors and Stockholders

Viceroy Acquisition Corp.:


We have audited the accompanying balance sheets of Viceroy Acquisition Corp. as
of October 31, 2006 and December 31, 2005, and the related statements of
operations, stockholders' equity (deficit), and cash flows for the ten months
ended October 31, 2006 and for the period from August 12, 2005 (Inception)
through December 31, 2005. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.


We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.


In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Viceroy Acquisition Corp. as of
October 31, 2006 and December 31, 2005, and the results of its operations and
its cash flows for the ten months ended October 31, 2006 and for the period from
August 12, 2005 (Inception) through December 31, 2005, in conformity with U.S.
generally accepted accounting principles.


/s/ KPMG LLP

St. Louis, Missouri
April 23, 2007


                        Viceroy Acquisition Corporation
                                 Balance Sheets
                  As At October 31, 2006 and December 31 2005
                             (Dollars in thousands)



                                                      October 31,  December 31,
                                                            2006          2005
                                                      ----------   -----------
  Assets
  Cash and cash equivalents                                $ 205          $ 28
  Prepaid expenses                                           118             -
                                                      ----------   -----------
  Total current assets                                       323            28

  Deferred costs                                           1,045           207
                                                      ----------   -----------
  Total Assets                                           $ 1,368         $ 235
                                                       =========     =========
  Liabilities and Stockholders' Equity (Deficit)
  Accounts payable                                         $ 212          $ 10
  Income taxes payable                                       834             -
                                                      ----------   -----------
  Total current liabilities                                1,046            10

  Notes payable to related parties                           700           200
                                                      ----------   -----------
  Total noncurrent liabilities                               700           200
                                                      ----------   -----------
  Total Liabilities                                        1,746           210

  Preferred stock, $0.0001 par value, 5,000,000                -             -
  shares authorized, none issued and outstanding

  Common stock, $0.0001 par value,
  75,000,000 shares authorized, 5,625,000
  issued and outstanding and,
  additionally, 22,500,000 issued and
  outstanding and subject to repurchase
  at October 31, 2006; 5,000,000 issued
  and outstanding at December 31, 2005                         3             1

  Called-up share capital held in trust                 (174,123)            -
  Additional paid in capital                             172,374            24
  Retained earnings                                        1,368             -
                                                      ----------   -----------
  Total stockholders' equity (deficit)                      (378)           25
                                                      ----------   -----------
  Total Liabilities and Stockholders'
  Equity (Deficit)                                       $ 1,368         $ 235
                                                       =========     =========




                        Viceroy Acquisition Corporation

                            Statements of Operations

  For the ten months ended October 31, 2006 and for the period from August 12,
                   2005 (Inception) through December 31, 2005

                (Dollars in thousands, except per share amounts)


                                                       10 months      August 12,
                                                           ended           2005
                                                      October 31, (inception) to     
                                                            2006    December 31,
                                                                           2005
                                                      -----------  -------------
  Interest and other income                              $ 2,632            $ 1
  Formation and operating costs                             (126)            (1)
  Cancelled offering costs                                  (304)             -
  Provision for income taxes                                (834)             -
                                                      -----------  -------------
  Net income (loss)                                      $ 1,368            $ -
                                                      ===========  =============
  Weighted Average Shares Outstanding
  Basic                                                5,625,000      5,625,000
  Diluted                                              5,625,000      5,625,000

  Net Income (Loss) Per Share
  Basic                                                   $ 0.24         $ 0.00
  Diluted                                                 $ 0.24         $ 0.00




                        Viceroy Acquisition Corporation
            Statements of Changes in Stockholders' Equity (Deficit)
      For the period from August 12, 2005 (Inception) to October 31, 2006
                             (Dollars in thousands)


                                              Additional     Called-up                       Total
                               Common stock      paid-in         share   Retained     stockholders'
                             ----------------             capital held
                             Shares    Amount    capital      in trust   earnings           equity
                          ---------  --------  ---------     ---------   --------        ---------
December 31, 2004                 -       $ -        $ -           $ -        $ -              $ -

Common shares issued      5,000,000         1         24             -          -               25
Net loss                          -         -          -             -          -                -
                          ---------  --------  ---------     ---------   --------        ---------
December 31, 2005         5,000,000         1         24             -          -               25

Common share dividend     1,250,000         -          -             -          -                -
Common share 
cancellation               (625,000)        -          -             -          -                -
Equity offering (shares 
subject to repurchase)   22,500,000         2    172,350      (172,500)        -              (148)

Interest earned on
trust fund                        -         -          -        (2,623)         -           (2,623)
Transfer from trust               -         -          -         1,000          -            1,000
Net income                        -         -          -             -      1,368            1,368
                          ---------  --------  ---------     ---------   --------        ---------
October 31, 2006         28,125,000       $ 3  $ 172,374    $ (174,123)   $ 1,368           $ (378)
                          =========  ========  =========     =========   ========        =========                      
                            

                        Viceroy Acquisition Corporation
                            Statements of Cash Flows
  For the ten months ended October 31, 2006 and for the period from August 12,
                   2005 (Inception) through December 31, 2005

                             (Dollars in thousands)

                                                        10 months     August 12,
                                                            ended          2005
                                                                     (inception)
                                                       October 31,  to December 
                                                              2006     31, 2005
                                                       -----------  -----------
  Cash flows provided by operating activities
  Net income                                               $ 1,368          $ -

  Adjustments to reconcile net income to net cash
  provided by operating activities:
  Cancelled offering costs                                     304            -

  Changes in operating assets and liabilities:
  Prepaid expenses                                            (118)           -
  Accounts payable                                             202           10
  Income taxes payable                                         834            -
                                                          ---------    ---------
  Net cash provided by operating activities                  2,590           10
                                                          ---------    ---------
  Cash flows provided by (used in) investing
  activities
  Capitalized acquisition costs                             (1,045)           -
                                                          ---------    ---------
  Net cash provided by (used in) investing
  activities                                                (1,045)           -
                                                          ---------    ---------
  Cash flows provided by (used in) financing
  activities
  Equity offering expenditures                                 (97)        (207)
  Proceeds from long term debt                                 500          200
  Net proceeds from stock issuance                         172,352           25
  Net cash placed into trust                              (172,500)           -
  Interest earned on cash held in trust                     (2,623)           -
  Transfers of cash held in trust to cash                    1,000            -
                                                          ---------    ---------
  Net cash provided by (used in) financing
  activities                                                (1,368)          18
                                                          ---------    ---------
  Net change in cash and cash equivalents                      177           28
  Cash and cash equivalents at beginning of
  period                                                        28            -
                                                          ---------    ---------
  Cash and cash equivalents at end of period                 $ 205         $ 28
                                                          =========    =========



1) Organization, business and operations and summary of significant accounting
   policies

Viceroy Acquisition Corporation

Viceroy Acquisition Corporation (the 'Company') was incorporated in Delaware on
August 12, 2005 to serve as a vehicle for the acquisition by way of asset
acquisition, merger, capital stock exchange, share purchase or similar
transaction, of one or more operating businesses in the oil and gas industry (a
'Business Combination'). Through October 31, 2006, the Company had not commenced
any operations.

Offering

On July 12, 2006, the Company completed an offering (the 'Offering') of
22,500,000 units ('Units'), each Unit consisting of one common share of the
Company ('Share') and one warrant to purchase one Share ('Warrant'). In
connection with the Offering, the Shares and Warrants were listed on the
Alternative Investment Market ('AIM') maintained by the London Stock Exchange
plc.

The net proceeds of the Offering of $172,500 (the 'Trust Amount') were deposited
into a trust fund (the 'Trust Fund') maintained by a corporate trustee (the
'Trustee'). The Trust Fund was to be released by the Trustee for, among other
things, a Business Combination approved by the shareholders of the Company.
Moreover, the Trust Fund was to be released in its entirety upon the completion
of a Business Combination which, either on its own or combined with all previous
Business Combinations, had an aggregate transaction value of at least 50% of the
initial Trust Amount (which initial Trust Amount excluded certain deferred
placing fees) (a 'Qualified Business Combination').

Acquisition agreement

On July 21, 2006, the Company entered into an acquisition agreement with Eastman
Chemical Company ('Eastman Chemical') to purchase all of the issued and
outstanding stock of its subsidiary, Eastman SE, Inc., subject to approval by
the Company's shareholders. If approved by the Company's shareholders, the
acquisition would constitute both a Business Combination and a Qualified
Business Combination.

On October 27, 2006, a special meeting of the shareholders of the Company was
held. At this meeting the acquisition of Eastman SE, Inc. by the Company was
approved by the shareholders of the Company.

Eastman SE, Inc.

Eastman SE, Inc. ('Eastman SE') was incorporated under the laws of the state of
Delaware on September 1, 2005 and subsequent thereto operated as a wholly-owned
subsidiary of Eastman Chemical through October 31, 2006. Eastman SE was
incorporated for purposes of effecting a sale of Eastman Chemical's
manufacturing facility in Batesville, Arkansas (the 'Batesville Plant').
Commencing January 1, 2006, Eastman Chemical began transferring the assets
associated with the business of the Batesville Plant to Eastman SE.

The Batesville Plant was constructed in 1977 to produce proprietary photographic
chemicals for Eastman Kodak Company ('Eastman Kodak'). Over the years, Eastman
Kodak shifted the plant's focus away from the photographic imaging business to
the custom synthesis of fine chemicals and organic chemical intermediates used
in a variety of end markets, including paints and coatings, plastics and
polymers, pharmaceuticals, food supplements, household detergents and
agricultural products.

In 2005, the Batesville Plant began the implementation of a biobased products
platform. This includes the production of biofuels (biodiesel, bioethanol and
lignin/biomass solid fuels) and biobased specialty chemical products (biobased
solvents, chemicals and intermediates). In addition to biobased products, the
Batesville Plant continues to manufacture fine chemicals and other organic
chemicals.

The accompanying financial statements present the financial position, the
results of operations and the cash flows of the Company from its inception
through the closing of the Company's acquisition of Eastman SE.

Summary of significant accounting policies

Cash and cash equivalents

The Company includes demand deposits with banks and all highly liquid
investments with original maturities of three months or less in cash and cash
equivalents.

Income taxes

Income taxes are accounted for using the asset and liability method. Under this
method, future income tax assets and liabilities are recognized for temporary
differences between financial statement carrying amounts of assets and
liabilities and their respective income tax basis. A future income tax asset or
liability is estimated for each temporary difference using enacted and
substantively enacted income tax rates and laws expected to be in effect when
the asset is realized or the liability settled. A valuation allowance is
established, if necessary, to reduce any future income tax asset to an amount
that is more likely than not to be realized.

Earnings per share

Basic earnings per share is computed by dividing net income (the numerator) by
the weighted average number of outstanding shares (the denominator) for the
period. Diluted earnings per share are calculated in accordance with the
treasury stock method to determine the dilutive effect of warrants and options.
The computation of diluted earnings per share includes the same numerator, but
the denominator is increased to include the number of additional common shares
from the exercise of warrants and options that would have been outstanding if
potentially dilutive common shares had been issued.

The weighted average basic and diluted shares outstanding as at October 31, 2006
and December 31, 2005 have been calculated excluding the effects of all Shares
and Warrants issued in the Offering as a result of the repurchase rights
associated with the Shares in effect through the time of the Company's
acquisition of Eastman SE.

Use of estimates

The preparation of financial statements in conformity with accounting principals
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during a reporting
period. Actual results could differ materially from those estimates.

2) Notes payable to related parties

The Company had unsecured promissory notes payable to shareholders (one of these
shareholders was an officer and director of the Company and the other was
affiliated with one) of $700 and $200 in aggregate as of October 31, 2006 and as
of December 31, 2005, respectively. The loans were non-interest bearing and were
payable upon the consummation of a Business Combination. Due to the short-term
nature of the notes, the fair value of the notes approximated their carrying
value.

3) Common stock

On July 12, 2006, the Company completed the Offering. The net proceeds of the
Offering totaled $172,500 and were placed into the Trust Fund. All or a portion
of the Trust Fund was to be released for, among other things, a Business
Combination.

Certain of the Company's shareholders who purchased Units in the July 12, 2006
offering were granted repurchase rights whereby at the time the Company sought
approval for a Business Combination these shareholders could vote against the
Business Combination and require the Company to repurchase their Shares for
$7.667 per Share plus accrued interest earned on the Offering proceeds held in
the Trust Fund net of expenses and income taxes payable on the interest earned.
Shareholders who exercised their repurchase rights retained all rights to any
Warrants that they may have held.

At the October 27, 2006 special meeting of the shareholders of the Company, the
acquisition of Eastman SE by the Company was approved by the shareholders of the
Company. Shareholders owning 1,425,000 Shares of the Company voted against the
acquisition and exercised their repurchase rights. The repurchase price totaled
$7.71 per Share, calculated as $7.667 plus $0.043 of accrued interest earned on
the offering proceeds held in trust net of expenses and income taxes payable on
the interest earned per Share. Pursuant to the terms of the July 12, 2006
offering, the repurchase price was payable by the Company only when those
shareholders who exercised their repurchase rights surrendered to the Company
their Share certificates. As of October 31, 2006, no shareholders had
surrendered their Share certificates to the Company. Subsequent to October 31,
2006, all such Share certificates were presented to the Company and 1,425,000
Shares were repurchased for an aggregate $10,987.

4) Preferred stock

The Company is authorized to issue 5,000,000 shares of preferred stock with such
designations, voting and other rights and preferences as may be determined from
time to time by the Company's board of directors. As of October 31, 2006, no
shares of preferred stock were issued or outstanding.

5) Contingent liabilities

The Company agreed to pay its placing agents deferred placing fees totaling
$2,700 payable upon the consummation of a Business Combination meeting certain
defined parameters.

6) Subsequent events

On October 31, 2006, the Company acquired all of the issued and outstanding
shares of Eastman SE from Eastman Chemical. Immediately subsequent to the
acquisition the Company changed its name to FutureFuel Corp. ('FutureFuel') and
Eastman SE changed its name to FutureFuel Chemical Company ('FutureFuel
Chemical').

For accounting purposes, the transaction is deemed to be a reverse acquisition
and FutureFuel Chemical has been treated as the accounting acquirer and
continuing reporting entity that acquired FutureFuel. Accordingly, the October
31, 2006 acquisition will be accounted for as a capital transaction or, more
specifically, the issuance of stock by FutureFuel Chemical for the net monetary
assets of FutureFuel accompanied by a recapitalization and reorganization with
FutureFuel assuming the role of the reporting entity and FutureFuel Chemical
assuming the role of FutureFuel's operating subsidiary.




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