Alto Ingredients, Inc. Quarterly report pursuant to Section 13 or 15(d)

PARENT COMPANY FINANCIALS. (Tables)

6 Months Ended

Jun. 30, 2019

Parent company financial statements for the periods covered in this report are set forth below (in thousands):

	June 30, 2019			December 31, 2018

Current Assets:
Cash and cash equivalents	$	5,163		$	6,759
Receivables from subsidiaries		10,285			17,156
Other current assets		1,636			1,659
Total current assets		17,084			25,574

Property and equipment, net		391			522

Other Assets:
Investments in subsidiaries		275,527			286,666
Pacific Ethanol West plant receivable		58,766			58,766
Right of use operating lease assets, net		3,381			—
Other assets		1,529			1,437
Total other assets		339,203			346,869
Total Assets	$	356,678		$	372,965

Current Liabilities:
Accounts payable and accrued liabilities	$	2,335		$	2,469
Accrued PE Op Co. purchase		3,829			3,829
Current portion of long-term debt		62,866			66,255
Other current liabilities		590			385
Total current liabilities		69,620			72,938

Operating leases, net of current portion		3,169			—
Deferred tax liabilities		251			251
Other liabilities		1			9
Total Liabilities		73,041			73,198

Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		50			46
Additional paid-in capital		937,208			932,179
Accumulated other comprehensive loss		(2,459	)		(2,459	)
Accumulated deficit		(651,163	)		(630,000	)
Total Pacific Ethanol, Inc. stockholders’ equity		283,637			299,767
Total Liabilities and Stockholders’ Equity	$	356,678		$	372,965

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018

Management fees from subsidiaries	$	3,000		$	3,330		$	6,330		$	6,408
Selling, general and administrative expenses		2,818			4,513			7,547			9,889
Income (loss) from operations		182			(1,183	)		(1,217	)		(3,481	)
Interest income		1,172			1,172			2,331			2,333
Interest expense		(2,307	)		(2,154	)		(4,762	)		(4,286	)
Other expense		(83	)		(65	)		(84	)		(498	)
Loss before benefit for income taxes		(1,036	)		(2,230	)		(3,732	)		(5,932	)
Benefit for income taxes		—			—			—			563
Loss before benefit for income taxes		(1,036	)		(2,230	)		(3,732	)		(5,369	)
Equity in losses of subsidiaries		(6,610	)		(10,678	)		(16,804	)		(15,380	)
Consolidated net loss	$	(7,646	)	$	(12,908	)	$	(20,536	)	$	(20,749	)

	For the Six Months Ended June 30,
	2019			2018
Operating Activities:
Net loss	$	(20,536	)	$	(20,749	)
Adjustments to reconcile net loss to cash used in operating activities:
Equity in losses of subsidiaries		16,804			15,380
Depreciation		142			349
Deferred income taxes		—			563
Amortization of debt discounts		357			357
Changes in operating assets and liabilities:
Accounts receivables		1,871			(3,893	)
Other assets		(281	)		1,104
Accounts payable and accrued expenses		1,363			326
Accounts payable with subsidiaries		(600	)		(620	)
Net cash used in operating activities	$	(880	)	$	(7,183	)
Investing Activities:
Dividend from subsidiaries	$	—		$	10,000
Contributions to subsidiaries		—			(5,000	)
Additions to property and equipment		(11	)		(13	)
Net cash provided by (used in) investing activities	$	(11	)	$	4,987
Financing Activities:
Proceeds from issuances of common stock	$	3,670		$	—
Payments on senior notes		(3,748	)		—
Preferred stock dividend payments		(627	)		(627	)
Net cash used in financing activities	$	(705	)	$	(627	)
Net decrease in cash and cash equivalents		(1,596	)		(2,823	)
Cash and cash equivalents at beginning of period		6,759			5,314
Cash and cash equivalents at end of period	$	5,163		$	2,491