S1: Spot price at time tl
S2: Spot price at time t2
F1 : Futures price at time t1
F2: Futures price at time t2
bl : Basis at time t1
b2: Basis at time t2

We will assume that a hedge is put in place at time t1 and closed out at time t2.
As an example, we will consider the case where the spot and futures prices at the time the hedge is initiated are $2.50 and $2.20, respectively, and that at the time the hedge is closed out they are $2.00 and$1.90, respectively. This means that S1=2.50, F1=2.20, S2=2.00, and F2=1.90.

Consider first the situation of a hedger who knows that the asset will be sold at time t2 and takes a short futures position at time t1. The price realized for the asset is S2 and the profit on the futures position is F1 - F2. The effective price that is obtained for the asset with hedging is therefore:
S2+F1-F2=S2+b2