Stockton and Madera

In October 2020, the Company’s Board of Directors approved a plan to sell the Company’s fuel-grade ethanol production facilities located in Madera and Stockton, California. The analysis of these potential sales resulted in an aggregate asset impairment of $1.2 million in the Company’s Western production segment for the year ended December 31, 2021.

On May 14, 2021, the Company closed the sale of its Madera facility for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities, resulting in a net loss on sale of less than $0.1 million, included in gain (loss) on sale (disposal) of assets in the Company’s consolidated statements of operations. All of the cash proceeds were used to repay a significant portion of the Company’s term debt and accrued interest.

On November 5, 2021, the Company closed the sale of its Stockton facility for gross proceeds of $24.0 million in cash, resulting in a net gain on sale of $4.6 million, recorded in gain (loss) on sale (disposal) of assets in the Company’s consolidated statements of operations. With the net cash proceeds, the Company repaid in full its senior secured notes and loans made to Alto Pekin and ICP.

For the year ended December 31, 2021, net sales attributed to the results of operations for Stockton and Madera were $2.6 million and $0, respectively. For the year ended December 31, 2021, pre-tax loss attributed to the results of operations for Stockton and Madera was $2.8 million and $2.0 million, respectively. The above pre-tax results include asset impairments associated with Stockton and Madera recorded for the year ended December 31, 2021 of $0 and $1.2 million, respectively.

Canton

During 2021, the Company agreed to sell certain assets of the Company’s property and equipment in Canton, Illinois. The analysis of the potential sale resulted in an asset impairment of $1.9 million in the Company’s Western production segment for the year ended December 31, 2021. The Company sold these assets in 2022. For the years ended December 31, 2022 and 2021, there were no sales from Canton. For the years ended December 31, 2022 and 2021, pre-tax losses attributed to Canton were less than $1.0 million for each year.