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

PARENT COMPANY FINANCIALS. (Tables)

12 Months Ended

Dec. 31, 2018

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

	December 31,
	2018			2017
ASSETS
Current Assets:
Cash and cash equivalents	$	6,759		$	5,314
Receivables from subsidiaries		17,156			3,138
Other current assets		1,659			1,631
Total current assets		25,574			10,083

Property and equipment, net		522			1,071

Other Assets:
Investments in subsidiaries		286,666			359,680
Pacific Ethanol West plant receivable		58,766			58,766
Other assets		1,437			1,565
Total other assets		346,869			420,011
Total Assets	$	372,965		$	431,165

Current Liabilities:
Accounts payable and accrued liabilities	$	2,469		$	2,218
Payable to subsidiaries		—			625
Accrued PE Op Co. purchase		3,829			3,828
Current portion of long-term debt		66,255			—
Other current liabilities		385			245
Total current liabilities		72,938			6,916

Long-term debt, net		—			67,530
Deferred tax liabilities		251			224
Other liabilities		9			56
Total Liabilities		73,198			74,726

Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		46			44
Additional paid-in capital		932,179			927,090
Accumulated other comprehensive loss		(2,459	)		(2,234	)
Accumulated deficit		(630,000	)		(568,462	)
Total Pacific Ethanol, Inc. stockholders’ equity		299,767			356,439
Total Liabilities and Stockholders’ Equity	$	372,965		$	431,165

	Years Ended December 31,
	2018			2017			2016
Management fees from subsidiaries	$	12,408		$	11,904		$	12,968
Selling, general and administrative expenses		16,795			18,185			14,491
Loss from operations		(4,387	)		(6,281	)		(1,523	)
Fair value adjustments		—			473			(557	)
Interest income		4,703			4,793			5,964
Interest expense		(8,678	)		(5,829	)		(240	)
Other income (expense), net		(74	)		(95	)		1,931
Income (loss) before provision (benefit) for income taxes		(8,436	)		(6,939	)		5,575
Provision (benefit) for income taxes		(562	)		(321	)		(981	)
Income (loss) before equity in earnings of subsidiaries		(7,874	)		(6,618	)		6,556
Equity in losses of subsidiaries		(52,399	)		(28,346	)		(5,137	)
Consolidated net income (loss)	$	(60,273	)	$	(34,964	)	$	1,419

	For the Years Ended December 31,
	2018			2017			2016
Operating Activities:
Net income (loss)	$	(60,273	)	$	(34,964	)	$	1,419
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Equity in losses of subsidiaries		52,399			28,346			5,137
Dividends from subsidiaries		25,000			3,500			—
Depreciation		567			830			727
Fair value adjustments		—			(473	)		557
Deferred income taxes		27			169			(1,122	)
Amortization of debt discounts		720			636			10
Changes in operating assets and liabilities:
Accounts receivables		(9,018	)		4,065			7,302
Other assets		100			4,356			4,647
Accounts payable and accrued expenses		740			3,859			(3,741	)
Accounts payable with subsidiaries		2,409			(943	)		(9,385	)
Net cash provided by operating activities	$	12,671		$	9,381		$	5,551
Investing Activities:
Additions to property and equipment	$	(18	)	$	(468	)	$	(465	)
Investments in subsidiaries		(10,000	)		(28,126	)		(50,886	)
Purchase of PE OP Co. debt		—			—			(17,003	)
Net cash used in investing activities	$	(10,018	)	$	(28,594	)	$	(68,354	)
Financing Activities:
Proceeds from issuances of senior notes	$	—		$	13,530		$	53,350
Proceeds from issuance of common stock		2,057			—			—
Proceeds from warrant stock option exercises		—			1,202			1,164
Payments on senior notes		(2,000	)		—			—
Preferred stock dividend payments		(1,265	)		(1,265	)		(1,269	)
Net cash provided by (used in) financing activities	$	(1,208	)	$	13,467		$	53,245
Net increase (decrease) in cash and cash equivalents		1,445			(5,746	)		(9,558	)
Cash and cash equivalents at beginning of period		5,314			11,060			20,618
Cash and cash equivalents at end of period	$	6,759		$	5,314		$	11,060