On January 1, 2025, Alto Carbonic purchased 100% of the equity interests in Kodiak Carbonic, LLC, a beverage-grade liquid CO₂ processor, for $7.6 million in cash. Alto Carbonic’s facility is co-located at the Company’s Columbia ethanol plant. The acquisition will provide the Company further vertical integration and access to new markets in the liquid CO₂ market out of its Columbia plant.

Kodiak Carbonic’s unaudited net sales for the three months ended March 31, 2025 and 2024 were $2.1 million and $1.3 million and its unaudited net income was $1.5 million and $0.4 million, respectively. The following table presents the Company’s unaudited pro forma combined financial information assuming the acquisition occurred on January 1, 2024 (dollars in thousands except per share amounts):

The following preliminary allocation of the estimated purchase price assumes, with the exception of property and equipment and intangibles, that carrying values approximate fair value. Estimates of uncollectible accounts receivable are not considered material due to the short-term nature and customer collection history. The preliminary estimate of working capital, property and equipment and intangibles are under review by management and are subject to change. Based upon these assumptions, the preliminary purchase price allocation is as follows (in thousands):

For the identifiable intangible assets, the Company has estimated 9 years for useful lives for customer relationships. For the three months ended March 31, 2025, the Company recorded amortization of these intangibles of $102,000. Any changes to the initial estimates of the fair value of the acquired assets and assumed liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill if net assets acquired are less than the purchase price. The Company did not incur any material acquisition costs.