On January 1, 2025, Alto Carbonic purchased 100% of the equity interests in Kodiak Carbonic, LLC, a beverage-grade liquid CO₂ processor, for $7.6 million in cash. Alto Carbonic’s facility is located at the Company’s Columbia ethanol plant. The acquisition has provided the Company further vertical integration and access to new markets in the liquid CO₂ market out of its Columbia plant.

Alto Carbonic’s unaudited net sales and net income for the year ended December 31, 2025 were $9.2 million and $5.9 million, respectively. Kodiak Carbonic’s historical unaudited net sales and net income were $5.5 million and $1.6 million, respectively, for the year ended December 31, 2024. Kodiak Carbonic’s historical unaudited net sales and net income were $5.1 million and $1.6 million, respectively, for the year ended December 31, 2023.

The following table presents the Company’s unaudited pro forma combined financial information assuming the acquisition occurred on January 1, 2023 (dollars in thousands except per share amounts):

The supplemental pro forma financial information presented above is for illustrative purposes only, does not include the pro forma adjustments that would be required under Regulation S-X of the Exchange Act for pro forma financial information, is not necessarily indicative of the financial position or results of operations that would have been realized if the Kodiak Carbonic acquisition had been completed on January 1, 2023, does not reflect synergies that might have been achieved, nor is it indicative of future operating results or financial position. The pro forma adjustments are based upon currently available information and certain assumptions that the Company believes are reasonable under the circumstances.

The purchase price allocation is as follows (in thousands):

For the identifiable intangible assets, the Company has estimated 9 years for useful lives for customer relationships. For the year ended December 31, 2025, the Company recorded amortization of these intangibles of $410,000. The Company did not incur any material acquisition costs.