Annual report pursuant to section 13 and 15(d)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

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1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Concentrations of Credit Risk Major Customers

The Company sells fuel-grade ethanol to gasoline refining and distribution companies. The Company had sales of ethanol with customers representing 10% or more of total net sales as follows.

 

    Years Ended December 31,  
    2012     2011  
Customer A     21%       22%  
Customer B     16%       9%  
Customer C     12%       7%  

 
Purchases from external customers

 

    Years Ended December 31,  
    2012     2011  
Supplier A     40%     39%
Supplier B     14%     13%
Supplier C     *       12%

____________

*Less than 10%

                

Inventories

Inventories consisted primarily of bulk ethanol and unleaded fuel, and are valued at the lower-of-cost-or-market, with cost determined on a first-in, first-out basis. Inventory balances consisted of the following (in thousands):

 

    December 31,  
    2012     2011  
Finished goods   $ 10,230     $ 9,429  
Work in progress     3,846       4,284  
Raw materials     1,363       1,334  
Other     805       1,084  
Total   $ 16,244     $ 16,131  

 

 
Property and Equipment Depreciation

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

 

Buildings 40 years
Facilities and plant equipment 10 – 25 years
Other equipment, vehicles and furniture 5 – 10 years

Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method

The following tables compute basic and diluted earnings per share (in thousands, except per share data):

 

      Year Ended December 31, 2012  
      Loss
Numerator 		    Shares Denominator    

Per-Share

Amount

  
Net loss attributed to Pacific Ethanol, Inc.   $ (19,057 )            
Preferred stock dividends     (1,268 )            
Basic and diluted loss per share:                    
Loss available to common stockholders   $ (20,325 )   108,358   $ (0.19 )

      Year Ended December 31, 2011  
     

Income

Numerator

     Shares Denominator      

Per-Share

Amount

  
Net income attributed to Pacific Ethanol, Inc.   $ 3,074                
Preferred stock dividends     (1,265 )              
Basic income per share:                      
Income available to common stockholders   $ 1,809     33,733     $ 0.05  
Warrants     –     194          
Options     –     57          
 Diluted income per share:                      
 Income available to common stockholders   $ 1,809     33,984     $ 0.05