| PARENT COMPANY FINANCIALS. |
11.
PARENT COMPANY FINANCIALS.
Restricted
Net Assets – At September 30, 2021, the Company had approximately $250.3 million of net assets at its subsidiaries that
were not available for transfer 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):
| |
|
September 30,
2021 |
|
|
December 31,
2020 |
|
| ASSETS |
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
7,038 |
|
|
$ |
25,632 |
|
| Receivables from subsidiaries |
|
|
23,165 |
|
|
|
15,548 |
|
| Other current assets |
|
|
891 |
|
|
|
1,836 |
|
| Total current assets |
|
|
31,094 |
|
|
|
43,016 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
98 |
|
|
|
142 |
|
| Other Assets: |
|
|
|
|
|
|
|
|
| Investments in subsidiaries |
|
|
255,904 |
|
|
|
246,518 |
|
| Alto West, LLC receivable |
|
|
27,592 |
|
|
|
42,649 |
|
| Right of use operating lease assets, net |
|
|
2,773 |
|
|
|
2,985 |
|
| Other assets |
|
|
796 |
|
|
|
1,088 |
|
| Total other assets |
|
|
287,065 |
|
|
|
293,240 |
|
| Total Assets |
|
$ |
318,257 |
|
|
$ |
336,398 |
|
| Current Liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
5,405 |
|
|
$ |
2,001 |
|
| Accrued Alto Op Co. purchase |
|
|
3,829 |
|
|
|
3,829 |
|
| Current portion of long-term debt |
|
|
723 |
|
|
|
25,533 |
|
| Other current liabilities |
|
|
332 |
|
|
|
473 |
|
| Total current liabilities |
|
|
10,289 |
|
|
|
31,836 |
|
| |
|
|
|
|
|
|
|
|
| Long-term debt, net of current portion |
|
|
— |
|
|
|
5,564 |
|
| Other liabilities |
|
|
2,772 |
|
|
|
2,763 |
|
| Total Liabilities |
|
|
13,061 |
|
|
|
40,163 |
|
| Stockholders’ Equity: |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
1 |
|
|
|
1 |
|
| Common and non-voting common stock |
|
|
73 |
|
|
|
72 |
|
| Additional paid-in capital |
|
|
1,036,608 |
|
|
|
1,036,638 |
|
| Accumulated other comprehensive loss |
|
|
(3,878 |
) |
|
|
(3,878 |
) |
| Accumulated deficit |
|
|
(727,608 |
) |
|
|
(736,598 |
) |
| Total Alto Ingredients, Inc. stockholders’ equity |
|
|
305,196 |
|
|
|
296,235 |
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
318,257 |
|
|
$ |
336,398 |
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Management fees from subsidiaries |
|
$ |
2,406 |
|
|
$ |
2,802 |
|
|
$ |
7,418 |
|
|
$ |
8,928 |
|
| Selling, general and administrative expenses |
|
|
3,105 |
|
|
|
3,305 |
|
|
|
12,149 |
|
|
|
12,990 |
|
| Loss from operations |
|
|
(699 |
) |
|
|
(503 |
) |
|
|
(4,731 |
) |
|
|
(4,062 |
) |
| Income from loan forgiveness |
|
|
5,973 |
|
|
|
— |
|
|
|
5,973 |
|
|
|
— |
|
| Interest income (expense), net |
|
|
42 |
|
|
|
(1,490 |
) |
|
|
(1,689 |
) |
|
|
(4,787 |
) |
| Fair value adjustments |
|
|
— |
|
|
|
(6,856 |
) |
|
|
— |
|
|
|
(7,497 |
) |
| Other income (expense) |
|
|
295 |
|
|
|
(41 |
) |
|
|
1,513 |
|
|
|
(203 |
) |
| Income (loss) before benefit for income taxes |
|
|
5,611 |
|
|
|
(8,890 |
) |
|
|
1,066 |
|
|
|
(16,549 |
) |
| Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income (loss) before benefit for income taxes |
|
|
5,611 |
|
|
|
(8,890 |
) |
|
|
1,066 |
|
|
|
(16,549 |
) |
| Equity in income (losses) of subsidiaries |
|
|
(8,743 |
) |
|
|
24,105 |
|
|
|
8,870 |
|
|
|
21,628 |
|
| Net income (loss) |
|
$ |
(3,132 |
) |
|
$ |
15,215 |
|
|
$ |
9,936 |
|
|
$ |
5,079 |
|
| |
|
For the Nine Months Ended
September 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Operating Activities: |
|
|
|
|
|
|
| Net income |
|
$ |
9,936 |
|
|
$ |
5,079 |
|
| Adjustments to reconcile net income to cash used in operating activities: |
|
|
|
|
|
|
|
|
| Equity in (income) losses of subsidiaries |
|
|
(8,870 |
) |
|
|
(21,628 |
) |
| Income from loan forgiveness |
|
|
(5,973 |
) |
|
|
— |
|
| Fair value adjustments |
|
|
— |
|
|
|
7,497 |
|
| Depreciation |
|
|
44 |
|
|
|
97 |
|
| Amortization of debt discounts |
|
|
409 |
|
|
|
(173 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(7,617 |
) |
|
|
(288 |
) |
| Other assets |
|
|
1,449 |
|
|
|
1,184 |
|
| Accounts payable and accrued expenses |
|
|
(2,213 |
) |
|
|
(19 |
) |
| Accounts payable with subsidiaries |
|
|
32 |
|
|
|
— |
|
| Net cash used in operating activities |
|
$ |
(12,803 |
) |
|
$ |
(8,251 |
) |
| Investing Activities: |
|
|
|
|
|
|
|
|
| Additions to property and equipment |
|
$ |
— |
|
|
$ |
— |
|
| Net cash used in investing activities |
|
$ |
— |
|
|
$ |
— |
|
| Financing Activities: |
|
|
|
|
|
|
|
|
| Proceeds from issuances of common stock |
|
$ |
462 |
|
|
$ |
5,296 |
|
| Proceeds from plant receivables |
|
|
15,057 |
|
|
|
5,813 |
|
| Proceeds from warrant exercises |
|
|
— |
|
|
|
5,500 |
|
| Proceeds from long-term debt |
|
|
— |
|
|
|
5,973 |
|
| Payments on senior notes |
|
|
(24,810 |
) |
|
|
(5,500 |
) |
| Dividend from subsidiary |
|
|
3,500 |
|
|
|
— |
|
| Preferred stock dividend payments |
|
|
— |
|
|
|
— |
|
| Net cash (used in) provided by financing activities |
|
$ |
(5,791 |
) |
|
$ |
17,082 |
|
| Net change in cash and cash equivalents |
|
|
(18,594 |
) |
|
|
8,831 |
|
| Cash and cash equivalents at beginning of period |
|
|
25,632 |
|
|
|
4,985 |
|
| Cash and cash equivalents at end of period |
|
$ |
7,038 |
|
|
$ |
13,816 |
|
|