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

PARENT COMPANY FINANCIALS. (Tables)

9 Months Ended

Sep. 30, 2019

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

	September 30, 2019			December 31, 2018
Current Assets:
Cash and cash equivalents	$	5,658		$	6,759
Receivables from subsidiaries		12,270			17,156
Other current assets		1,183			1,659
Total current assets		19,111			25,574

Property and equipment, net		308			522
Other Assets:
Investments in subsidiaries		249,641			286,666
Pacific Ethanol West plant receivable		55,750			58,766
Right of use operating lease assets, net		3,318			—
Other assets		1,529			1,437
Total other assets		310,238			346,869
Total Assets	$	329,657		$	372,965
Current Liabilities:
Accounts payable and accrued liabilities	$	2,437		$	2,469
Accrued PE Op Co. purchase		3,829			3,829
Current portion of long-term debt		62,866			66,255
Other current liabilities		587			385
Total current liabilities		69,719			72,938

Operating leases, net of current portion		3,108			—
Deferred tax liabilities		251			251
Other liabilities		—			9
Total Liabilities		73,078			73,198
Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		50			46
Additional paid-in capital		937,795			932,179
Accumulated other comprehensive loss		(2,459	)		(2,459	)
Accumulated deficit		(678,808	)		(630,000	)
Total Pacific Ethanol, Inc. stockholders’ equity		256,579			299,767
Total Liabilities and Stockholders’ Equity	$	329,657		$	372,965

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Management fees from subsidiaries	$	3,330		$	3,330		$	9,660		$	9,738
Selling, general and administrative expenses		3,827			3,181			11,374			13,069
Income (loss) from operations		(497	)		149			(1,714	)		(3,331	)
Interest income		1,145			1,185			3,486			3,518
Interest expense		(2,276	)		(2,171	)		(7,039	)		(6,458	)
Other expense		(4	)		(4	)		(86	)		—
Loss before benefit for income taxes		(1,632	)		(841	)		(5,353	)		(6,271	)
Benefit for income taxes		—			—			—			563
Loss before benefit for income taxes		(1,632	)		(841	)		(5,353	)		(5,708	)
Equity in losses of subsidiaries		(25,694	)		(6,673	)		(42,509	)		(22,555	)
Consolidated net loss	$	(27,326	)	$	(7,514	)	$	(47,862	)	$	(28,263	)

	For the Nine Months Ended September 30,
	2019			2018
Operating Activities:
Net loss	$	(47,862	)	$	(28,263	)
Adjustments to reconcile net loss to cash used in operating activities:
Equity in losses of subsidiaries		42,509			22,555
Depreciation		227			481
Deferred income taxes		—			563
Amortization of debt discounts		539			357
Changes in operating assets and liabilities:
Accounts receivables		(114	)		(5,062	)
Other assets		173			2,489
Accounts payable and accrued expenses		1,950			5
Accounts payable with subsidiaries		(502	)		(622	)
Net cash used in operating activities	$	(3,080	)	$	(7,497	)
Investing Activities:
Dividend from subsidiaries	$	—		$	10,000
Contributions to subsidiaries		—			(5,000	)
Additions to property and equipment		(13	)		(6	)
Net cash provided by (used in) investing activities	$	(13	)	$	4,994
Financing Activities:
Proceeds from issuances of common stock	$	3,670		$	—
Proceeds from Pacific Ethanol West		3,016			—
Payments on senior notes		(3,748	)		—
Preferred stock dividend payments		(946	)		(946	)
Net cash provided by (used in) financing activities	$	1,992		$	(946	)
Net decrease in cash and cash equivalents		(1,101	)		(3,449	)
Cash and cash equivalents at beginning of period		6,759			5,314
Cash and cash equivalents at end of period	$	5,658		$	1,865