Alto Ingredients, Inc. Annual report pursuant to Section 13 and 15(d)

PARENT COMPANY FINANCIALS. (Tables)

12 Months Ended

Dec. 31, 2017

Parent company financial statements for the periods covered in this report are set forth below.

	December 31,
	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents	$	5,314		$	11,060
Receivables from subsidiaries		3,138			7,203
Other current assets		1,631			6,442
Total current assets		10,083			24,705

Property and equipment, net		1,071			1,433

Other Assets:
Investments in subsidiaries		359,680			363,401
Pacific Ethanol West plant receivable		58,766			58,766
Other assets		1,565			1,110
Total other assets		420,011			423,277
Total Assets	$	431,165		$	449,415

Current Liabilities:
Accounts payable and accrued liabilities	$	2,218		$	1,758
Payable to subsidiaries		625			1,568
Accrued PE Op Co. purchase		3,828			3,828
Other current liabilities		245			184
Total current liabilities		6,916			7,338
Long-term debt, net		67,530			53,360
Warrant liabilities at fair value		—			651
Deferred tax liabilities		224			52
Other liabilities		56			124
Total Liabilities		74,726			61,525

Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		44			44
Additional paid-in capital		927,090			922,698
Accumulated other comprehensive loss		(2,234	)		(2,620	)
Accumulated deficit		(568,462	)		(532,233	)
Total Pacific Ethanol, Inc. stockholders’ equity		356,439			387,890
Total Liabilities and Stockholders’ Equity	$	431,165		$	449,415

	Years Ended December 31,
	2017			2016			2015
Management fees from subsidiaries	$	11,904		$	12,968		$	9,857
Selling, general and administrative expenses		18,185			14,491			14,336
Asset impairment		—			—			1,970
Loss from operations		(6,281	)		(1,523	)		(6,449	)
Fair value adjustments		473			(557	)		1,641
Interest income		4,793			5,964			5,739
Interest expense		(5,829	)		(240	)		(27	)
Other income (expense), net		(95	)		1,931			—
Income (loss) before provision for income taxes		(6,939	)		5,575			904
Provision (benefit) for income taxes		(321	)		(981	)		(10,034	)
Income (loss) before equity in earnings of subsidiaries		(6,618	)		6,556			10,938
Equity in losses of subsidiaries		(28,346	)		(5,137	)		(29,724	)
Consolidated net income (loss)	$	(34,964	)	$	1,419		$	(18,786	)

	For the Years Ended December 31,
	2017			2016			2015
Operating Activities:
Net income (loss)	$	(34,964	)	$	1,419		$	(18,786	)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Equity in losses of subsidiaries		28,346			5,137			29,724
Dividends from subsidiaries		3,500			—			—
Depreciation and amortization		830			727			390
Fair value adjustments		(473	)		557			(1,641	)
Asset impairment		—			—			1,970
Deferred income taxes		169			(1,122	)		(14,260	)
Amortization of debt discounts		636			10			—
Changes in operating assets and liabilities:
Accounts receivables		4,065			7,302			(5,958	)
Other assets		4,356			4,647			(4,139	)
Accounts payable and accrued expenses		3,859			(3,741	)		604
Accounts payable with subsidiaries		(943	)		(9,385	)		11,179
Net cash provided by (used in) operating activities	$	9,381		$	5,551		$	(917	)
Investing Activities:
Additions to property and equipment	$	(468	)	$	(465	)	$	(1,483	)
Investments in subsidiaries		(28,126	)		(50,886	)		—
Purchase of PE OP Co. debt		—			(17,003	)		—
Net cash used in investing activities	$	(28,594	)	$	(68,354	)	$	(1,483	)
Financing Activities:
Proceeds from issuances of senior notes	$	13,530		$	53,350		$	—
Proceeds from warrant stock option exercises		1,202			1,164			368
Preferred stock dividend payments		(1,265	)		(1,269	)		(1,265	)
Net cash provided by (used in) financing activities	$	13,467		$	53,245		$	(897	)
Net decrease in cash and cash equivalents		(5,746	)		(9,558	)		(3,297	)
Cash and cash equivalents at beginning of period		11,060			20,618			23,915
Cash and cash equivalents at end of period	$	5,314		$	11,060		$	20,618