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

Quarterly report pursuant to Section 13 or 15(d)

Parent Company Financials.

Parent Company Financials.

3 Months Ended

Mar. 31, 2021

Condensed Financial Information Disclosure [Abstract]

11. PARENT COMPANY FINANCIALS.

Restricted Net Assets – At March 31, 2021, the Company had approximately $231.9 million of net assets at its subsidiaries that were not available to be transferred to Alto Ingredients in the form of dividends, distributions, loans or advances due to restrictions contained in the credit facilities of these subsidiaries.

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

ASSETS	March 31, 2021			December 31, 2020
Current Assets:
Cash and cash equivalents	$	16,534		$	25,632
Receivables from subsidiaries		16,412			15,548
Other current assets		2,188			1,836
Total current assets		35,134			43,016

Property and equipment, net		125			142
Other Assets:
Investments in subsidiaries		257,547			246,518
Alto West, LLC receivable		42,649			42,649
Right of use operating lease assets, net		2,915			2,985
Other assets		1,087			1,088
Total other assets		304,198			293,240
Total Assets	$	339,457		$	336,398
Current Liabilities:
Accounts payable and accrued liabilities	$	4,961		$	2,001
Accrued Alto Op Co. purchase		3,829			3,829
Current portion of long-term debt		20,001			25,533
Other current liabilities		394			473
Total current liabilities		29,185			31,836

Long-term debt, net of current portion		5,665			5,564
Other liabilities		2,925			2,763
Total Liabilities		37,775			40,163
Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		73			72
Additional paid-in capital		1,037,718			1,036,638
Accumulated other comprehensive loss		(3,878	)		(3,878	)
Accumulated deficit		(732,232	)		(736,598	)
Total Alto Ingredients, Inc. stockholders’ equity		301,682			296,235
Total Liabilities and Stockholders’ Equity	$	339,457		$	336,398

	Three Months Ended March 31,
	2021			2020
Management fees from subsidiaries	$	2,526		$	3,253
Selling, general and administrative expenses		4,651			5,377
Loss from operations		(2,125	)		(2,124	)
Fair value adjustments		—			673
Interest expense, net		(1,028	)		(1,598	)
Other income		807			—
Loss before benefit for income taxes		(2,346	)		(3,049	)
Benefit for income taxes		—			—
Loss before equity in losses of subsidiaries		(2,346	)		(3,049	)
Equity in income (losses) of subsidiaries		7,024			(24,107	)
Consolidated net income (loss)	$	4,678		$	(27,156	)

	For the Three Months Ended March 31,
	2021			2020
Operating Activities:
Consolidated net income (loss)	$	4,678		$	(27,156	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Equity in (income) losses of subsidiaries		(7,024	)		24,107
Fair value adjustments		—			(673	)
Depreciation		17			33
Amortization (accretion) of debt discount (premium)		101			(57	)
Changes in operating assets and liabilities:
Receivables from subsidiaries		(864	)		123
Other assets		(281	)		29
Accounts payable and accrued expenses		(765	)		—
Accounts payable with subsidiaries		110			2,235
Net cash used in operating activities	$	(4,028	)	$	(1,359	)
Investing Activities:
Additions to property and equipment	$	—		$	—
Net cash used in investing activities	$	—		$	—
Financing Activities:
Proceeds from issuances of common stock	$	462		$	282
Proceeds from plant receivable		—			5,813
Payments on senior notes		(5,532	)		—
Preferred stock dividend payments		—			—
Net cash provided by (used in) financing activities	$	(5,070	)	$	6,095
Net increase (decrease) in cash and cash equivalents		(9,098	)		4,736
Cash and cash equivalents at beginning of period		25,632			4,985
Cash and cash equivalents at end of period	$	16,534		$	9,721