美國
證券交易委員會
華盛頓特區20549
形式
(Mark一）
日終了的財政年度
或
從 到
委員會文件號：
（註冊人的確切名稱 憲章）
| （州或其他司法管轄區 成立或組織） | 項目1A. 風險因素 |
| 網絡安全 | 項目2. |
性能
項目3.
| 法律訴訟 | 項目4. | 礦山安全披露 第二部分 | ||
[預留] |
項目7.
管理層對財務狀況和經營成果的探討與分析
項目8.
會計和財務披露方面的變化和與會計師的分歧
項目90。
有關阻止檢查的外國司法管轄區的披露
| 第三部分 | 項目10. | 項目11. | |
| 高管薪酬 | 項目12. | 某些受益所有人和管理層的證券所有權以及相關股東事宜 | |
| 某些關係和關聯交易以及董事獨立性 |
。產品適用於
健康、家居和美容
食品飲料
工農業
市場包括酒精和其他油漆產品
應用、車用機油和化肥。產品適用於
市場包括乾酵母、玉米蛋白
膳食，玉米蛋白飼料，玉米胚芽，酒糟，液體CO
供人類食用。我們的產品面向
市場 包括燃料級乙醇和用作可再生柴油和生物柴油原料的蒸餾玉米油。我們的特色菜 酒精是用來治療
工農業、食品飲料
和
i
其他 我們生產、銷售和銷售的特種醇和必需成分的規格 賣。
此外，一些政府法規是 對我們的產銷業務有幫助。燃料級乙醇工業尤其受到聯邦和州政府的支持。 以及環境法規，這些法規支持在北美的汽車燃料混合中使用燃料級乙醇。一些政府部門 以下簡要介紹適用於我們的生產和銷售業務的法規。
ii
食品和藥品監管條例
我們的產品面向
健康、家居和美容
食品飲料
和
基本成分2市場受到FDA和類似州機構的監管。 根據聯邦食品、藥物和化妝品法案，FDA對加工、配方、安全、製造、包裝、 食品配料、維生素、化妝品和藥品中活性成分和非活性成分的標籤和分發。在2022年， 《化妝品現代化監管法》(MoCRA)加入了FDCA。這是對FDCA的一次重大擴展，並建立了 對化妝品設施註冊和產品上市的要求，擴大了對更多客戶的監管 產品。FDA和FDCA的許多規則和條例直接適用於我們，也可以通過他們的應用間接適用於我們 在我們客戶的產品中。爲了在美國進行適當的營銷和銷售，適用的產品必須得到普遍認可 是安全的，經批准的，並且沒有在FDCA和FDCA下發布的相關法規中摻假或貼上錯誤的品牌。美國食品和藥物管理局有廣泛的 有權執行FDCA的規定。不遵守FDA或類似州機構的法律和法規 可能會阻止我們銷售某些產品或使我們承擔責任。2可再生燃料能源立法2 根據RFS，所有可再生能源的強制使用 包括燃料級乙醇在內的燃料逐步上漲，並在2022年達到360亿加侖的峰值，其中150亿加侖是 2025年常規乙醇或玉米乙醇所需的。根據2007年能源獨立和安全法的規定， 環保局有權全部或部分放棄強制的RFS要求。要批准豁免，環境保護局局長必須確定， 與農業部長和能源部長協商，認爲國內可再生燃料供應或執行不足 違反這一要求將嚴重損害一個州、地區或整個美國的經濟或環境。
國會中不時提出的各種法案 TO TIME還旨在改變現有的可再生燃料能源立法，但近年來沒有一項立法獲得通過。一些立法機構 法案針對的是停止或逆轉可再生燃料計劃的擴張，甚至取消，而其他法案則針對 支持該計劃，或制定進一步的授權或撥款，以支持可再生燃料行業。
預期的 我們的財務狀況和經營結果的趨勢；
| ● | 我們的 有能力獲得任何必要的融資；● |
| 這個 從主要客戶收到我們產品訂單的數量和時間，包括 本公司特種酒的年簽約銷售量； | ●具有競爭力 定價壓力； |
| ● | 變化 在與我們類似的公司的市場估值中；●2,庫存 市場價格和成交量普遍波動；2● |
監管部門 發展或加強執法；
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●
添加內容 或者關鍵人員離職；●; 環境保護， 我們可能產生的產品或其他責任；; ●; 我們的 我們普通股或其他證券的融資活動和未來銷售；以及●我們的 能夠維護對我們的運營至關重要的合同。您購買我們的股票的價格 普通股可能不能代表交易市場上的價格。你可能無法出售你的普通股 買入價或高於買入價的股票，這可能會給您造成重大損失，其中可能包括您的 投資。在過去，證券集體訴訟通常是在高庫存時期之後對一家公司提起的 價格波動。我們未來可能會成爲類似訴訟的目標。證券訴訟可能導致巨額費用和 把管理層的注意力和我們的資源從我們的業務上轉移開。上述任何風險都可能具有 對我們的運營結果、我們的普通股價格或兩者都有實質性的不利影響。因爲我們不打算支付任何 對於普通股的現金分紅，我們的股東將無法從他們的股票中獲得回報，直到 他們把它們賣了。我們打算保留很大一部分任何 未來的收益爲我們業務的發展、運營和擴張提供資金。我們預計不會支付任何現金股息 我們的普通股在不久的將來。任何未來股息的宣佈、支付和數額將由我們的 董事會，並將取決於我們的經營結果、現金流和財務狀況、經營情況等 和資本要求，遵守任何適用的債務契約，以及我們董事會認爲相關的其他因素。 不能保證未來將支付股息，如果支付股息，也不能保證任何此類股息的數額 分紅。除非我們的董事會決定派發股息，否則我們的股東將被要求只看升值。 我們普通股的價值，以實現他們的投資任何收益。不能保證會出現這樣的升值。我們的章程包含獨家論壇條款， 可能會限制我們的股東在與我們或我們的董事、高級管理人員、員工發生糾紛時獲得有利的司法論壇的能力 也不是特工。我們的章程規定，除非我們同意 致信選擇替代法院，特拉華州衡平法院應是下列任何衍生機構的唯一和獨家法院 代表吾等提起的訴訟或法律程序，(B)任何董事人員聲稱違反其受託責任的任何訴訟 或我們的其他僱員向我們或我們的股東，(C)根據特拉華州的任何規定提出索賠的任何訴訟 一般公司法，或(D)主張受內部事務理論管轄的索賠的任何訴訟。我們的章程也規定，除非我們同意 在書面上，在適用法律允許的最大程度上選擇一個替代法院，聯邦地區法院 美利堅合衆國應是解決因下列原因引起的任何申訴的獨家論壇 經修訂的1933年《證券法》或《證券法》，包括針對下列被告提出的所有訴訟理由 此類投訴，包括我們的高級管理人員和董事、導致此類投訴的任何發行的承銷商以及任何其他專業人士 其職業授權該個人或實體所作陳述的實體，並已準備或認證 此次發行背後的文件。爲免生疑問，獨家論壇 上述規定不適用於根據《證券法》或經修訂的1934年《證券交易法》提出的任何索賠， 或《交易法》，在聯邦法律另有規定的範圍內。《交易法》第27條規定了聯邦專屬管轄權。 所有爲強制執行《交易法》或其下的規則和條例所產生的任何義務或責任而提起的訴訟，以及 證券法第22條規定，聯邦法院和州法院對爲執行任何義務或責任而提起的所有訴訟擁有同時管轄權 由證券法或其下的規則和條例設立。在我們的附例中選擇法院條款可以 限制我們的股東在司法法院提出他們認爲有利於與我們或我們的董事發生糾紛的索賠的能力， 高級職員、僱員、代理人或其他第三方，這可能會阻止針對我們和我們的董事、高級職員、僱員、 代理人和其他第三方，即使一項行動如果成功，可能會使我們的股東受益。適用的法院也可以 與其他法院不同的判決或結果，包括考慮訴訟的股東可能所在的法院或 否則會選擇提起訴訟，這樣的判斷或結果可能對我們比我們的股東更有利。使用 關於使特拉華州衡平法院成爲某些類型訴訟的唯一和排他性論壇的規定，股東 向特拉華州衡平法院提出索賠的人在提出任何此類索賠時可能面臨額外的訴訟費用，特別是 如果他們不住在特拉華州或附近。最後，如果法院認爲我們附則中的這些條款不適用於或不可執行 對於一個或多個指定類型的訴訟或法律程序，我們可能會產生與解決 在其他司法管轄區，這類事項可能會對我們產生重大不利影響。2一般風險因素2通過安全漏洞進行的網絡攻擊可能 導致我們的業務中斷、收入減少、成本增加、責任索賠或損害我們的聲譽或競爭地位。安全漏洞可能來自我們的硬件， 我們部署的軟件、員工、承包商或政策，這可能會導致外部方訪問我們的網絡、數據 中心、雲數據中心、公司計算機、製造系統和/或訪問我們的供應商、供應商的客戶 也不是顧客。外部方可能訪問我們的數據或我們客戶的數據，或攻擊網絡導致拒絕服務 或者試圖勒索我們的數據或系統。該漏洞可能是由於帳戶安全做法不充分造成的，例如 由於終止時未能及時刪除員工訪問權限。爲了緩解這些安全問題，我們在整個過程中實施了措施 我們的組織，包括防火牆、備份、加密、員工信息技術策略和用戶帳戶策略。然而， 不能保證這些措施足以避免網絡攻擊。如果其中任何一種類型的安全漏洞是 如果發生這種情況，並且我們無法保護敏感數據，我們與業務合作伙伴和客戶的關係可能會發生實質性的變化 如果受到損害，我們的聲譽可能會受到實質性的損害，我們可能會面臨訴訟的風險，並可能承擔重大責任。此外，如果我們不能充分維護我們的 信息技術基礎設施方面，我們可能會出現停機和數據丟失。過多的停機可能會影響我們及時高效地 向客戶交付產品或開發新產品。此類中斷和數據丟失可能會對我們履行訂單的能力產生不利影響 並中斷其他進程。這些中斷導致的銷售延遲或客戶流失可能會對我們的財務造成不利影響 業績、股價和聲譽。我們和我們的業務夥伴或承包商的 未能完全遵守適用的數據隱私或類似法律可能會導致巨額罰款，並需要採取繁重的糾正行動。 此外，我們或我們的業務夥伴或承包商遇到的數據安全漏洞可能會導致商業機密的丟失。 或其他知識產權，公開披露敏感的商業數據，以及暴露個人身份信息 (包括敏感的個人信息)我們的員工、客戶、供應商、承包商和其他人。未經授權 使用或披露或訪問由我們或代表我們維護的任何個人信息，無論是通過違反我們的系統， 未經授權的一方，或員工或承包商的錯誤、盜竊或濫用，破壞我們的供應商或供應商的系統， 否則，可能會損害我們的業務。如果任何此類未經授權使用、披露或訪問此類個人信息的行爲 如果發生這種情況，我們的運營可能會嚴重中斷，我們可能會受到私人當事人的要求、索賠和訴訟，以及 監管部門的調查、相關行動和處罰。此外，我們可能會在通知 受影響的個人和實體，並以其他方式遵守有關的衆多外國、聯邦、州和地方法律和法規 未經授權訪問、使用或披露個人信息。最後，任何感知或實際未經授權的訪問， 或使用或披露此類信息可能會損害我們的聲譽，極大地削弱我們吸引和留住客戶的能力 並對我們的業務、財務狀況和經營業績產生不利影響。第10項億。未解決的員工評論。我們沒有收到關於以下問題的書面意見 我們來自證券交易委員會工作人員的定期報告或當前報告是在180天或更長時間之前發佈的 我們2024財年的結束，這個問題仍然沒有解決。
項目1C。網絡安全。
我們認識到保持 我們的客戶、業務合作伙伴、員工和其他利益相關者的信任和信心。我們積極監督網絡安全， 是我們全面的企業風險管理(ERM)計劃的基石。我們的網絡安全框架植根於國家研究院 標準與技術組織，或NIST，網絡安全框架，或CSF，以及國際標準化組織 (國際標準化組織/國際電工委員會27001)，反映我們致力維持最高的網絡安全標準。我們調整我們的政策、標準和做法 利用這些基準並動態改進它們，以應對不斷變化的網絡安全威脅。
●
我們的 董事會至少每季度聽取一次關於我們網絡安全計劃狀態的簡報。
●
我們的 內部網絡安全團隊與外部網絡安全服務提供商合作，包括 審計人員、顧問和政府機構，以完善我們的網絡安全措施。這些 服務提供商進行網絡安全風險評估，如定期評估和 漏洞掃描可找出潛在的安全漏洞並提出改進建議。
敬業精神和持續改進
我們定期評估我們的網絡安全措施 通過內部和外部審計和評估，確保我們的網絡安全計劃處於行業最佳實踐的前沿。 這些審計和評估的結果爲我們的網絡安全計劃提供了調整信息，以提高我們對新興市場的應變能力 網絡安全威脅。
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項目2.財產
我們的公司總部位於北京， 伊利諾伊州，由工廠和設施組成，構成了我們的北京校園生產部門，在我們擁有的土地上總共有145英畝。在……裏面 根據2026年到期的租約，我們在加利福尼亞州薩克拉門託租賃了總計約3,400平方英尺的辦公空間。在聖路易斯， 根據2030年到期的租約，我們在密蘇里州租賃了總計約84,000平方英尺的倉庫空間。我們的工廠設在 俄勒岡州的博德曼和愛達荷州的伯利分別擁有25英畝的設施和25英畝的設施。俄勒岡州博德曼的土地是以租約形式出租的 將於2076年到期。我們擁有愛達荷州伯利的土地。俄勒岡州和愛達荷州的工廠和設施構成了我們的西部生產部門。 參見「商業-生產設施」。我們的財產受到信託契約和其他產權負擔的影響。 我們的貸款方。
項目3.法律訴訟
我們受到法律程序、索賠和 在正常業務過程中發生的訴訟。雖然索賠的金額可能很大，但最終責任目前還不能 由於存在相當大的不確定性，因此將予以確定。因此，這些法律程序的結果可能是， 索賠和訴訟在未來一段時間解決後，可能會對我們的季度或年度運營業績或現金流產生不利影響。 然而，根據目前掌握的事實，管理層相信這些事情不會對我們的財務產生任何實質性的不利影響 頭寸、經營業績或現金流。
第4項礦山安全信息披露
不適用。
| 第二部分 | 第5項註冊人普通股市場、相關股東事項和發行人購買股權證券。市場信息 |
| 我們的普通股在納斯達克上交易 市場代碼爲「ALTO」。我們也有未發行的無投票權普通股，這些普通股可以轉換成我們有投票權的普通股。 股票，並且沒有在交易所上市。 | 證券持有人截至2025年3月12日，我們擁有76,611,090股 約305名股東登記持有的已發行普通股，以及持有的896股無投票權普通股 一個股東的記錄。這些記錄持有人包括爲經紀公司持有股票的存託機構，而經紀公司又 爲衆多實益所有者持有股票。2025年3月12日，我們普通股在納斯達克上的收盤價 市場價格爲每股1.39美元。2性能圖 2下圖顯示了累計 普通股的股東總回報與納斯達克綜合指數和納斯達克清潔邊緣的累計總回報 綠色能源指數，或同行集團，在截至2024年12月31日的五年期間。2該圖假設在指定的時間投資100美元 在我們的普通股、納斯達克綜合指數和同業集團中的開始日期，以及所有股息的再投資。 我們沒有就我們的普通股支付或宣佈任何現金股利，也不預期對我們的普通股支付任何現金股利。 在可預見的未來。在指定時期內的股東回報不應被視爲未來股票價格的指標 或者股東回報。這張圖假設我們普通股和每個比較組的投資價值是 2019年12月31日100美元。2截止的年數 |
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| Alto配料公司 | 納斯達克複合體納斯達克清潔邊緣綠色能源2股利政策2我們從來沒有爲我們的普通股支付過現金股息 在可預見的未來，我們不打算對普通股支付現金股息。我們預計我們將保留所有收益 用於我們業務的持續發展。2我們目前和未來的債務融資安排 可能會限制或阻止我們的子公司向我們分配現金，這取決於特定的財務和其他方面的成就 經營狀況和我們適當償還債務的能力，從而限制或阻止我們支付現金股息。此外， 我們B系列優先股的持有者每年有權獲得7%的股息，每季度支付一次。應計 而B系列優先股的未支付股息必須在支付與股票有關的任何股息之前支付 我們的普通股。 |
| 2024年、2023年和2022年，我們申報並支付了 B系列優先股的流通股到期時派發現金股息。 | 最近出售的未註冊證券沒有。 |
| 發行人購買股權證券 和關聯採購商 | 沒有。第六項。[預留]2 不適用因2第七項：管理層對財務狀況和經營成果的討論和分析。2以下是對我們的討論和分析 財務狀況和經營結果應與我們的合併財務報表和合並後的附註一起閱讀 本報告其他部分所列財務報表。本次討論包含前瞻性陳述，反映了我們的計劃和 涉及風險和不確定性的目標。實際結果和事件的時間可能與文件中包含的內容大不相同 這些前瞻性陳述是由於若干因素，包括題爲「風險因素」一節所討論的因素。 在這份報告的其他地方。 |
概述
我們是一家領先的特產生產商和經銷商。 美國的酒精、可再生燃料和基本原料。
| 我們經營着五個酒精生產設施。 我們的三家生產工廠位於伊利諾伊州，一家位於俄勒岡州，另一家位於愛達荷州。我們每年有一次 酒精生產能力爲35000万加侖，包括可再生燃料和特種酒精，從工業、製藥到 以及高品質的食品級和飲料級酒精。其中，我們每年可以生產高達11000万加侖的特種酒精， 根據我們的產品組合，分爲高品質飲料級酒精和其他質量規格的酒精。我們營銷和分銷 所有在我們工廠生產的酒精以及由第三方生產的酒精。2024年，我們營銷和分銷了大約 38600万加侖，包括我們自己生產的酒精以及第三方生產的燃料級乙醇，以及超過140万 以幹物質爲基礎的成噸的基本成分。 | 我們還擁有並運營一家液態CO 生產設施毗鄰我們在俄勒岡州的工廠，用於承接CO |
| 來自工廠的氣體，用於轉化爲液態一氧化碳 | 以及隨後的銷售。此外，我們還打破了散裝配送的特點 酒精，由我們和第三方通過我們的老鷹酒精業務生產。 |
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| 我們報告我們的財務和經營業績 在三個不同的細分市場中： | ●北京 生產 |
| ，包括酒精和基本成分的生產和銷售 在我們位於伊利諾伊州北京的三個生產工廠生產，我們指的是 作爲我們的北京校區； | ●營銷 和分配 |
| ，包括公司生產的營銷和商家交易 酒精和基本成分的聚合，以及燃料級乙醇的銷售 從第三方採購；以及 | ●西式 生產 |
| ，其中包括生產和銷售可再生燃料和必要的 成分，從2025年開始，液體CO | 在我們的西方製作中生產 設施，包括我們的液體CO |
| 工廠，在聚合的基礎上，沒有一個 個別如此重要，以致被視爲單獨報告的分部。 | 我們的使命是生產出最高質量的產品， 讓日常產品變得更好的可持續成分。我們打算通過投資於我們的專業人員來部分實現這一目標 和價值更高的特種酒精生產和分銷基礎設施，擴大高需求必需成分的生產， 擴大和擴大我們的產品在新的地區和國際市場的銷售，提高效率和經濟效益 並通過獲取更大部分的價值流來擴大規模。 |
| 生產細分市場 | 我們生產特種酒精，可再生燃料 和基本成分，重點放在五個關鍵市場： |
| 和 | 健康，家 &美容 |
| 2024年，這三個市場分別約佔我們銷售額的12%、7%和3%。 | 我們生產酒精和必需品 在我們下面描述的設施中。我們位於伊利諾伊州的生產設施位於玉米帶的中心，受益於相對 物美價廉，原料豐富，物流優勢，產品遠銷國內外。 通過卡車、鐵路或駁船進入市場。我們位於俄勒岡州和愛達荷州的生產工廠靠近各自的燃料和飼料客戶， 提供顯著的時機、產品運輸成本和物流優勢。2. |
我們所有的生產設施，除了我們的 魔力谷工廠在2024年全年運營，受計劃內和計劃外停機時間限制，以解決設施維修和維護問題。
2024年1月，我們暫時將我們的魔術 山谷設施，以最大限度地減少區域壓榨利潤率爲負的損失，並加快安裝更多設備，以實現 我們在工廠的玉米油和高蛋白系統的預期產量、質量和一致性。我們重新啓動了我們的魔術 山谷設施於2024年7月建立，到2024年10月，該設施一直實現滿負荷生產乙醇的平均速度， 這種植物的蛋白質含量產量達到50%或更高，我們能夠擴大玉米油產量。地區性增長 玉米基礎以及蛋白質和玉米油市場價格下跌導致整體利潤率壓縮，蓋過了經濟效益 我們工廠的改進。因此，爲了將財務損失降至最低，我們在2024年12月31日將我們的魔幻谷工廠冷閒置。 我們繼續在工廠提供碼頭服務，並打算在#年經濟環境好轉時恢復設施的運營。 該地區的情況可持續改善。我們相信，魔幻谷工廠的冷閒置將對我們的整體 與2024年相比，2025年的財務業績。隨着市場狀況的變化，我們可能會增加， 減少或閒置一個或多個運營設施的生產，或恢復任何閒置設施的運營。; 營銷和分銷細分市場; 我們銷售和分銷所有的酒精和 我們在設施中生產的基本原料。我們還銷售和分銷第三方生產的酒精。我們擁有廣泛而長期的客戶關係， 國內和國際，用於我們的特種酒精、可再生燃料和基本成分。這些客戶包括生產商 化妝品配料，消毒劑及相關產品，蒸餾酒生產商，食品製造商， 個人健康/消費者健康和個人護理衛生產品的生產商，以及全球貿易公司。我們的可再生燃料客戶遍佈全球各地 美國西部和中西部，由綜合石油公司和汽油營銷商組成，他們混合燃料級乙醇 變成汽油。我們的客戶依賴我們提供可靠的燃料級乙醇供應，並管理物流和交貨時間。 我們的客戶對燃料級乙醇的總體需求量超過了我們在工廠生產的供應量。我們獲得了額外的 燃料級乙醇由第三方乙醇生產商供應。我們安排燃料級乙醇的運輸、儲存和交付 由我們的客戶通過與美國西部和中西部的第三方服務提供商簽訂的協議購買 來源多種多樣。.
我們銷售食品級的基本原料給 人類和寵物食品市場，我們的飼料產品(如酒糟)主要從我們的北京校區出口市場，以及其他 將產品飼餵到奶牛場和飼養場，在許多情況下，這些飼養場位於我們的生產設施附近。這些客戶將我們的飼料產品用於 畜牧業作爲玉米和其他澱粉和蛋白質來源的替代品。我們把玉米油賣給家禽、可再生柴油和生物柴油。 顧客。
請參閱「注4-分段」。 本報告其他部分包括的合併財務報表附註，以提供有關我們業務部門的財務信息。
-5-
財務回顧、當前舉措和展望
我們第四季度和全年的財務業績 反映具有挑戰性的市場狀況，包括與2023年第四季度和前一全年相比，壓榨利潤率下降。 如下文所述，我們採取果斷行動使我們的業務合理化，加上超過3,000美元的相關資產減值準備(萬)， 導致2024年第四季度和全年的大量非現金、一次性支出的一大部分，重新設置了我們的 基地。我們還將每年的費用運行率降低了近800美元萬。再加上我們北京校區溼磨坊性能的提高， 我們對優質液體CO的協同收購
加工和我們通過國際市場進入歐洲市場 可持續發展和碳認證，或ISCC，產品銷售，我們對2025年持樂觀態度。2 作爲我們將股東最大化的持續努力的一部分 爲了實現我們的價值，我們聘請了一家投資銀行公司，以探索出售我們位於俄勒岡州和愛達荷州的生產設施。此外, 在我們財務和法律顧問的協助下，我們正在考慮廣泛的其他選擇，包括出售資產、合併 或其他戰略交易，以更好地配合我們的長期價值潛力。
今年1月，我們收購了飲料級產品Kodiak Carbonic 液態一氧化碳
處理器，760美元萬。這個加工廠更名爲Alto Carbonic，位於我們哥倫比亞的毗鄰 工廠位於俄勒岡州博德曼，自2015年以來一直盈利運營。
Alto碳化工藝生物質一氧化碳
每加侖銷售價格
北京校區2西部生產
營銷和分銷
總計
酒精生產（加侖單位：百萬）
北京校區
西部生產
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總計2每蒲式耳玉米成本
北京校區
西部生產
總計
平均市場配額2 Platts每加侖乙醇價格
CME每蒲式耳玉米成本
每加侖紙板玉米粉碎量（1）
基本成分已售出（數千噸）
北京校區
-7-
酒糟
公司
玉米溼飼料
玉米幹飼料
玉米油和細菌
糖漿和其他2玉米粉
酵母
總北京校區
西部生產
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酒糟
公司
糖漿和其他
玉米油
西部總產量
售出的基本成分總數
必需成分退貨%（2）
北京校園回歸
西部生產回歸
綜合總回報
假設玉米轉化率爲每蒲式耳2.80加侖酒精 玉米。
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運營虧損
現金助學金收入
利息開支淨額
其他淨收入
所得稅撥備前損失
所得稅撥備2合併淨虧損2 優先股股息2 歸屬於普通股股東的損失
沒有意義。2淨銷售額
年我們的合併淨銷售額下降 2024年與2023年相比，是因爲我們的酒精平均每加侖銷售價格下降，以及必需的 原料以較低的價格出售，部分被較高的酒類銷量所抵消。我們每加侖汽油的平均售價初步下降。 由於燃料級乙醇價格下降，這主要是由於2024年石油和汽油價格較上年下降所致。
| 我們生產和銷售的必需品也減少了
成分主要是由於2024年的酒精產量低於2023年。我們的基本成分的平均售價
下降的主要原因是玉米價格下降。 部分抵消了這些下降，我們賣出了更多 與2023年相比，2024年的總加侖主要是由於我們的特種酒精加侖銷售和第三方增加所致 售出加侖，部分被可再生燃料產量下降所抵消，原因是我們的魔力谷工廠和 我們的北京校區，如上所述。我們能夠生產和銷售更多的特種酒，部分原因是我們的 在我們兩年一次的維護中斷後，北京校區溼磨坊。 | 北京校園製作細分市場 我們北京校園生產的酒的淨銷售額 該部門在2024年下降了8,650美元萬，降幅爲17%，降至41570美元萬，而2023年爲50220美元萬。我們的總產量 然而，2024年售出的加侖增加了470万加侖，即2%，達到21360万加侖，而2024年的銷量爲20890万加侖 2023年，由於我們在2024年春季進行的兩年一次的維護工作在下半年實現了生產效益，導致 更高的生產率。 | 以每個細分市場的平均銷售價格計算
2024年每加侖1.95美元，我們從2024年銷售的470万額外的酒精淨銷售額中產生了910美元的額外淨銷售額
2024年與2023年相比。然而，與2024年相比，該細分市場每加侖汽油的平均銷售價格下降了0.45美元，降幅爲19%
到2023年，與2023年相比，萬的淨銷售額下降了9560美元。 基本成分的淨銷售額下降了 2024年萬爲4,840美元，或22%，至16930美元萬，而2023年爲21770美元萬。我們售出的基本成分總量 增加27,900噸，或3%，從2023年的878,400噸增加到2024年的906,300噸。來自我們的精華成分銷售量 北京校區在2024年的產量較高，這是因爲當年的生產率較高。以我們2024年每噸186.81美元的平均銷售價格計算， 與2024年銷售的27,900噸基本配料相比，我們在2024年的淨銷售額增加了520美元萬 2023年。與2023年相比，2024年我們每噸的平均銷售價格下降了61.03美元，降幅爲25%，導致萬下降了5,360美元 與2023年相比，淨銷售額有所下降。 | ||||
| 營銷和分銷細分市場 | 可再生燃料的淨銷售額來自我們的營銷 與2024年相比，2024年不包括部門間銷售額的分銷部門減少了4,650美元萬，至21650美元萬，降幅爲18% 2023年萬爲26300美元。 | 資產減值 | 我們記錄的資產減值費用爲24.8美元 2024年爲650万美元，而2023年爲6.5億美元萬。2024年減值反映了我們魔谷資產組2,140美元的萬，因爲我們 年底工廠處於冷閒置狀態，老鷹酒精公司的無形資產獲得了340万美元的萬。2023年減值涉及 與我們收購老鷹酒精公司相關的商譽。 | |||
| 利息開支淨額 | 利息支出，淨額，增加20美元萬 2024年萬爲760美元，2023年爲740美元萬。利息支出淨額的增加主要是由於債務餘額增加， 以及KinEnergy信用額度下的更高利率。 | 截至2023年12月31日的年度比較 截至2022年12月31日止的年度 | 我國上市公司財務業績對比分析 2023年至2022年可在「管理層對財務狀況和經營成果的討論與分析」下找到 在第二部分，我們提交給證券交易所的截至2023年12月31日的財政年度Form 10-K年度報告中的第7項 2024年3月14日，可在美國證券交易委員會網站www.sec.gov免費下載。 | |||
| 流動性與資本資源 | 100 | 60 | 90 | |||
| 在截至2024年12月31日的一年中，我們資助了 我們的業務主要來自手頭的現金和KinEnergy的運營信貸額度。除了爲我們的運營提供資金外， 我們利用我們的資本資源繼續我們的資本改善項目，每年支付與我們收購 老鷹酒精和支付優先股股息。 | 74 | — | 66 | |||
| 截至2024年12月31日，我們有3550美元的萬 現金和現金等價物以及2,310美元萬，可根據KinEnergy的運營信貸額度借款。此外，我們 根據我們下面討論的獵戶座定期貸款，可能有高達6,500美元的額外萬可用於資本改善項目， 受某些條件的制約。我們相信我們有足夠的流動資金來源來滿足我們預期的營運資金、償債能力、 自本報告日期起計至少未來12個月的資本開支及其他流動資金需求。 | 量化年終流動性狀況 | 我們相信，以下金額將提供 洞察我們的流動性和資本資源。以下精選的財務信息應與我們的 合併財務報表和合並財務報表附註，列於本報告其他部分和其他各節 本報告所載「管理層對財務狀況和經營成果的討論與分析」 (千美元)。 | 12月31日， | |||
| 12月31日， | 變化 | 現金、現金等值物和限制現金 | 流動資產 |
-10-
財產和設備，淨值
| 流動負債 長期債務，非流動部分 | 營運資本 營運資本比率 | 受限淨資產2 在2024年12月31日，我們大約有54.1美元 我們子公司無法以股息形式轉讓給Alto配料，Inc.的百萬淨資產， 分派、貸款或墊款，因我們子公司的信貸安排中包含的限制。 | ||||
| 營運資金和現金流的變化 | 截至12月萬，營運資金降至9,530美元 2024年12月31日萬爲10350美元，這是流動資產減少1,570美元的結果，但被75億美元的萬部分抵消 流動負債減少百萬。 | 流動資產減少的主要原因是 受限制的現金、庫存和其他流動資產。我們的流動負債下降主要是由於衍生工具的減少。 和應計負債。 | 我們的現金、現金等價物和受限現金 下降了930万，原因是我們的運營活動中使用了350美元萬現金，投資中使用了1350万美元現金 主要用於資本改善項目的活動，部分被我們融資活動提供的770万美元萬現金抵消， 主要是由於我們的經營信貸額度所帶來的收益。 | |||
| 我們在經營活動中使用的現金 | 我們在運營中使用了350万美元的萬現金 2024年期間的活動，而2023年我們的經營活動產生的現金爲2,200美元萬。特定因素導致 對我們的經營活動產生的現金變化的重大影響包括： | ● | 一個 淨虧損增加3,100美元萬，主要是由於大宗商品壓榨利潤率下降和 資產減值增加； | |||
| ● | 60 | 40 | - | |||
| 一個 與衍生工具公允價值變動有關的減少1910万美元 由於與2023年相比，2024年期末商品價格的變化；2● | - | - | 70 | |||
| 一個 與應收賬款餘額有關的減少890万美元，主要是由於時間安排 銷售和收藏品；以及 | ● | 一個 由於期末商品價格下降，庫存減少730万美元。 | 這些數額被以下項目部分抵銷： | |||
| ● | 萬增加2,250美元，與應付賬款和 因付款時間而產生的應計費用；以及 | 獨立註冊會計師事務所的報告（PCAOB ID： | 截至2024年和2023年12月31日的合併資產負債表 |
截至2024年、2023年和2022年12月31日止年度合併經營報表
截至2024年、2023年和2022年12月31日止年度的綜合全面收益(虧損表)
截至2024年、2023年和2022年12月31日止年度合併股東權益報表
截至2024年、2023年和2022年12月31日止年度合併現金流量表
綜合財務報表附註
獨立註冊公共會計報告 公司
致股東和董事會 奧托配料公司
對財務報表的幾點看法
-11-
我們已審計了隨附的Alto合併資產負債表 配料股份有限公司及其子公司(本公司)截至2024年12月31日和2023年12月31日，相關合並經營報表， 截至2024年12月31日的三個年度的綜合收益(虧損)、股東權益和現金流量， 以及合併財務報表(統稱財務報表)的相關附註。在我們看來，金融 報表公平地反映了公司截至2024年、2024年和2023年12月31日的財務狀況和業績 在截至2024年12月31日的三個年度內每年的業務和現金流量 美利堅合衆國普遍接受的原則。
我們還按照上市公司的標準進行了審計 會計監督委員會(美國)(PCAOB)，公司截至12月的財務報告內部控制 2024年3月31日，基於
內部控制--綜合框架
由贊助委員會印發 特雷德韋委員會2013年的組織，以及我們2025年3月13日的報告，表達了對有效性的無保留意見 關於公司財務報告的內部控制。
意見基礎
這些財務報表由本公司負責 管理層。我們的責任是根據我們的審計對公司的財務報表發表意見。我們是公衆 在PCAOB註冊的會計師事務所，根據美國聯邦法律，必須與公司保持獨立 證券法以及美國證券交易委員會和PCAOB的適用規則和條例。
我們是按照PCAOB的標準進行審計的。 這些標準要求我們計劃和執行審計，以獲得關於財務報表是否免費的合理保證 重大錯誤陳述，無論是由於錯誤還是欺詐。我們的審計包括執行程序以評估重大錯報的風險 無論是由於錯誤還是欺詐所致的財務報表，並執行應對這些風險的程序。這些程序包括 對財務報表中有關金額和披露情況的證據進行檢驗。我們的審計還包括評估 使用的會計原則和管理層作出的重大估計，以及評估財務報告的整體列報 發言。我們相信，我們的審計爲我們的觀點提供了合理的基礎。
關鍵審計事項2 下面所述的關鍵審計事項是由以下原因引起的事項 對已通知或要求通知審計委員會的財務報表的當期審計，以及： (1)涉及對財務報表具有重大意義的賬目或披露，以及(2)涉及我們的特別具有挑戰性和主觀性的 或複雜的判斷。關鍵審計事項的溝通不會以任何方式改變我們對財務報表的看法 作爲一個整體，我們不是，通過傳達下面的關鍵審計事項，就關鍵審計事項提供單獨的意見 或其所關乎的賬目或披露。
| 長期資產減值 | 特雷德韋委員會贊助組織委員會#年印發 2013年。 |
| 我們還按照公衆的標準進行了審計 公司會計監督委員會(美國)(PCAOB)，截至2024年12月31日和2023年12月31日的合併資產負債表，相關 綜合業務報表、綜合收益(虧損)、股東權益和現金流量 截至2024年12月31日止年度及本公司綜合財務報表及本公司報告的相關附註 日期爲2025年3月13日，表達了無保留的意見。 | 意見基礎 |
| 公司管理層負責保持有效 財務報告內部控制及其對#年財務報告內部控制有效性的評估 隨附的《管理層財務報告內部控制報告》。我們的責任是發表意見 從審計看公司財務報告的內部控制。我們是一家註冊在 根據美國聯邦證券法和適用的 美國證券交易委員會和PCAOB的規章制度。 | 我們是按照PCAOB的標準進行審計的。 這些標準要求我們計劃和執行審計，以獲得關於有效的內部控制是否超過 財務報告在所有實質性方面都保持不變。我們的審計包括對財務內部控制的了解 報告、評估存在重大弱點的風險，並測試和評估內部 根據評估的風險進行控制。我們的審計還包括執行我們認爲在這種情況下必要的其他程序。 我們相信，我們的審計爲我們的觀點提供了合理的基礎。 |
| 財務內部控制的定義及其侷限性 報道 | 公司對財務報告的內部控制是一個過程 旨在爲財務報告的可靠性和財務報表的編制提供合理保證 用於外部目的，按照公認的會計原則。公司對財務報告的內部控制 包括下列政策和程序：(1)與保存合理、詳細、準確和公平的記錄有關的政策和程序 反映公司資產的交易和處置情況；(2)提供交易記錄的合理保證 必要時允許按照公認的會計原則編制財務報表，且收據 而該公司的開支只按照該公司管理層及董事的授權而作出；及 (3)就防止或及時發現未經授權獲取、使用或處置公司的 可能對財務報表產生實質性影響的資產。 |
| 由於其固有的侷限性，財務內部控制 報告可能無法防止或檢測錯誤陳述。此外，對未來期間的任何有效性評價的預測也是受影響的。 由於條件的變化，控制可能變得不充分的風險，或對政策的遵守程度 否則，程序可能會惡化。 | RSM US LLP |
-12-
明尼蘇達州羅切斯特
2025年3月13日
Alto配料公司 綜合資產負債表, (以千爲單位，股票和麪值除外)十二月三十一日，資產流動資產：
現金及現金等價物
受限現金
應收賬款，扣除信用損失撥備美元
及$
-13-
分別
庫存
衍生工具
其他流動資產
流動資產總額
財產和設備，淨值
-14-
其他資產：
使用權經營租賃資產，淨值
無形資產，淨值
其他資產
其他資產總額
總資產
隨附註釋是 這些合併財務報表。
阿爾託成分公司
-15-
綜合資產負債表（續）
(in千，股票和麪值除外）
十二月三十一日，
負債和股東權益
當前負債：
應付賬款
應計負債
-16-
當前部分-經營租賃
衍生工具
其他流動負債
流動負債總額
長期債務，淨
經營租賃，扣除流動部分
其他負債
-17-
總負債
承諾和或有事項（注1、8、9、10和14）
股東權益：
優先股，美元
面值;
授權股份：
系列A：
授權股份;
-18-
沒有
| 截至2024年和2023年12月31日已發行和發行股票 | B系列： |
| 股票回購 | 養老金計劃調整 |
| 優先股股息 | 淨虧損 |
| 餘額，2023年12月31日 | 股票補償 |
| 向員工和董事發行的限制性股票，扣除註銷和稅款 | 養老金計劃調整 |
| 優先股股息 | 淨虧損2餘額，2024年12月31日 |
隨附註釋是 這些合併財務報表。
阿爾託成分公司
綜合現金流量表
(in數千）
爲 截至12月31日，
-19-
經營活動：
合併淨虧損
將合併淨虧損與經營活動提供的現金（使用）進行調節的調整：
無形資產折舊和攤銷2應收賬款的賬面金額減去估值。 反映公司對不會收取的金額的最佳估計的津貼。公司定期審核帳目 應收賬款，並基於對當前客戶信譽的評估，估計客戶餘額中 將不會被收取。2在應收賬款餘額中，約爲#美元。
3,000元和1,000元
-20-
000,000 截至2024年12月31日和2023年12月31日，分別被用作KinEnergy運營信貸額度下的抵押品。免稅額 信貸損失爲$
3,000元和1,000元
分別截至2024年12月31日和2023年12月31日。該公司記錄了壞賬收回#美元。
000,000， 壞賬支出爲#美元
| 5,000美元，壞賬追回1,000美元 | 截至2024年12月31日、2023年12月31日和2022年12月31日的年度分別爲10,000美元。這個 該公司沒有任何與客戶相關的表外信貸敞口。 |
| 集中風險 | -信用風險代表 如果交易對手未能完全按照合同約定履行，將在報告日確認的會計損失。濃度 信用風險，無論是在資產負債表內還是在資產負債表外，都是由客戶或交易對手集團的金融工具引起的 當他們具有相似的經濟特徵，導致他們履行合同義務的能力受到類似影響時 以下所述的經濟或其他條件的變化。使公司面臨信用風險的金融工具包括現金 超過聯邦存款保險限額的餘額和沒有抵押品或擔保的應收賬款。這個 該公司在此類帳戶中沒有經歷過任何重大虧損。 |
| Alto配料公司 | 合併後的註釋 財務報表 |
| 該公司向消費品公司銷售特種酒精 以及向汽油精煉和分銷公司供應燃料級乙醇。該公司銷售給客戶的比例爲10%或以上 公司的總淨銷售額如下。 | 截至十二月三十一日止的年度， |
| 客戶A | 客戶B |
公司從這些客戶那裏應收賬款總額爲 $
-21-
3,000元和1,000元
000,000，代表
其他
總計.
物業及設備
財產和設備 都是按成本列報的。折舊是在下列估計使用年限內使用直線法計算的：
建築
-22-
年份
設施和廠房設備
年份2其他設備、車輛和傢俱2年份2正常維護和維修的費用計入運營費用 已招致的。延長資產壽命的重大資本支出將在估計剩餘時間內資本化和折舊。 資產的使用壽命。出售或以其他方式處置的財產和設備的成本以及相關的累計折舊 或攤銷，任何由此產生的收益或損失都反映在當前的運營中。Alto配料公司2合併後的註釋 財務報表
無形資產
-公司攤銷無形資產 使用直線法對具有確定壽命的資產的估計壽命
好幾年了。此外，該公司還評估 無限期-每年減值的無形資產，或在情況表明可能已發生減值時更頻繁地減值。 如果活着的無限無形資產的賬面價值超過其公允價值，減值損失將以相等的金額確認。 太過分了。如果公司確定需要減值費用，該費用將作爲資產減值計入 合併經營報表。
租賃
-23-
-本公司對下列項目的租賃進行會計處理 ASC 842節，
租契
(「ASC 842」)，要求承租人對所有租約承認以下事項(例外 短期租約)在開始之日：(1)租賃責任，即承租人有義務支付產生的租賃款 來自租賃，以貼現現金流爲基礎計量；和(2)「使用權」資產，這是一種代表 承租人在租賃期內使用指定資產的權利。有關詳細信息，請參閱注9。
所得稅撥備
-所得稅入賬 在資產和負債辦法下，遞延稅項資產和負債是根據財務報表之間的差額確定的 資產和負債的報告和納稅基礎，並使用預期生效的已制定的稅率和法律進行計量 當差異逆轉的時候。爲將遞延稅項資產減少至預期數額，在必要時設立估值免稅額。 有待實現。
該公司使用兩步法覈算所得稅的不確定性 確認和計量不確定稅收頭寸的方法。第一步是通過確定要確認的稅務位置來評估 是否更有可能在審計方面保持這一地位，包括解決相關的上訴或訴訟 進程(如果有)。第二步是將稅收優惠衡量爲超過
實現的可能性爲% 在最終解決之後。不確定的稅務狀況在稅務機關完成審查後被認爲是有效解決的。 如果滿足某些其他條件的話。如果公司產生與稅收不確定性有關的利息和罰款， 將被分別歸類爲利息支出淨額和其他收入(費用)淨額的組成部分。遞延稅項資產和負債 在公司的綜合資產負債表中列爲非流動資產。
該公司提交一份合併的聯邦所得稅申報單。這份報稅表 包括所有全資子公司以及公司應按比例從以下傳遞實體獲得的應納稅所得額 該公司擁有的股份少於
-24-
%。各州的納稅申報單是以合併、合併或單獨的方式提交的，具體取決於適用的 與公司及其子公司相關的法律。該公司沒有任何海外業務。
每股虧損
-計算每股基本虧損 以期內已發行普通股的加權平均數計算。優先股息扣除 來自Alto配料公司的淨虧損，並在計算#年普通股股東應占虧損時考慮 計算每股基本虧損。優先股的普通股等價物被視爲參與證券，也包括在內 在這種計算中，當稀釋時。
下表計算了每股基本虧損和攤薄虧損(單位：千， 除每股數據外)：
截至2024年12月31日的年度
損失
| 分子 | 股份分母 |
| 每股金額 | 合併淨虧損 |
| 減去：優先股股息 | 每股基本虧損和攤薄虧損： |
| 歸屬於普通股股東的損失 | 截至2023年12月31日的年度 |
| 損失 | -Alto營養素與公司的每個生產設施簽訂了單獨的營銷協議(除 公司的魔幻谷設施)，授予Alto營養素獨家營銷、購買和銷售各種必需的 每個工廠生產的配料。 |
| 根據營銷協議的條款，在設施交付必要的 向Alto營養素的配料支付的金額相當於(I)第三方應支付的估計購買價格 基本成分的購買者，減去(Ii)估計將發生的運輸費用，減去(Iii)估計的 應向政府當局支付的與生產或銷售的基本成分噸位有關的費用和稅額， 減去(4)應付給本公司的估計獎勵費用，相當於(A)溼法第三方購買總價的5% 玉米蛋白飼料、溼蒸餾顆粒、玉米濃縮蒸餾顆粒和含有可溶性的蒸餾顆粒，或(B)1%的聚集體 玉米蛋白粉、幹玉米蛋白飼料、幹酒糟、玉米胚芽和玉米油的第三方收購價格。每一次營銷 協議的初始期限爲一年，並根據生產設施的選擇連續續期一年。 | Alto營養素記錄的收入約爲 $ |
-25-
| 及$ | 分別與截至2024年、2024年、2023年及2022年12月31日止年度的營銷協議有關。 這些金額已在合併時沖銷。 |
| 細分市場。 | 該公司報告了其財務和經營情況 性能在 |
| 三 | 細分市場：(1)北京校園生產，包括酒精和基本原料的生產和銷售 在公司位於伊利諾伊州Pekin的園區生產，(2)營銷和分銷，包括營銷和商家交易 對於公司生產的酒精和基本成分的聚合，以及來自第三方的燃料級乙醇的銷售， 以及(3)西方生產，包括生產和銷售燃料級乙醇和基本成分，包括液態一氧化碳 |
| ， 在該公司的兩個西部生產設施及其液體CO生產 | 工廠在聚合的基礎上，沒有一個 它們各自都非常重要，被認爲是一個單獨可報告的部分。 |
| 公司對績效進行管理和考覈 按毛利(虧損)計算的應報告分部。作爲執行委員會審查分部一級業績的一部分， 執行委員會的每一位成員審查公司可報告部門的毛利潤，並提供專業知識和 從各自的領域進行分析，以推動對公司應報告部門和分配的業績進行評估 將資源分配給這些細分市場。即使首席執行官有權出於戰略或其他原因凌駕於其他成員之上，關鍵 決定由執行委員會共同作出。 | 計入未計提所得稅準備的收入(虧損)的是管理層 Alto配料向每個細分市場收取的費用。《北京校園》的製作部分花費了$ |
| 及$ | 分別於截至2024年、2023年及2022年12月31日止年度的管理費。市場營銷和分銷部門產生 $ |
| 及$ | 分別於截至2024年、2023年及2022年12月31日止年度的管理費。西式 生產部門產生了$ |
| 及$ | 在2024年12月31日、2023年12月31日和2022年12月31日終了年度的管理費中， 分別進行了分析。公司及其他包括鷹酒業的業績及銷售、一般及行政費用，主要包括 公司員工薪酬、專業費用和管理費用與特定的運營部門沒有直接關係。 |
| 在正常的業務過程中，這些細分市場與 彼此之間。這種活動的優勢發生在公司的營銷和分銷部門銷售所生產的酒精時 按生產部門收取營銷費，如附註3所述。這些部門間的活動被認爲是保持距離的活動 交易記錄。因此，儘管這些交易會影響部門業績，但不會影響公司的綜合業績 這是因爲合併後所有收入和相應的成本都被抵消了。 | 截至2024年、2023年和2022年12月31日止年度，資本支出 北京校區部門產生的收入約爲美元 |
百萬美元
億和$
百萬，以及發生的資本支出 西方生產部門約爲美元
百萬美元
億和$
分別爲百萬。
-26-
阿爾託成分公司
合併後的註釋 財務報表
下表列出了公司的某些財務數據 運營部門（以千計）：
截至十二月三十一日止的年度，
淨銷售額
北京校區產量，記錄爲毛額：
-27-
酒類銷售
基本成分銷售
分類間銷售
北京校區總銷售額
營銷和分銷：
酒類銷售，毛額
酒類銷售，淨
分類間銷售
營銷和分銷銷售總額
| 西方產品銷售總額 | 企業及其他部門間消除 |
-28-
| 報告的淨銷售額 | 銷售商品成本：北京校園製作 |
營銷和分銷
西部生產
| 企業及其他 | 部門間消除報告的銷售商品成本 |
| 毛利潤（虧損）： | 北京校園製作營銷和分銷 |
| 及$ |
| 公司的財產和設備大量 作爲公司定期貸款項下的抵押品。 | 阿爾託成分公司合併後的註釋
財務報表 |
2024年12月31日
生活
| (年) |
| 積累 |
-29-
| 減損 | 淨賬面 |
| 價值 | 毛 |
| 現金流量對沖 | -公司使用衍生工具保護現金流不受大宗商品價格波動的影響 最長12個月，以保護毛利率免受市場和價格波動對酒類的潛在不利影響 銷售和採購承諾，價格設定在未來日期，和/或如果合同規定了浮動價格或基於指數的價格。 此外，該公司對酒類的預期銷售進行對沖，以最大限度地減少其受到價格波動的潛在不利影響的影響。 這些衍生品可以被指定和記錄爲現金流對沖，並通過評估以下可能性來評估有效性 預期交易及商品期貨價格與本公司購銷價格的倒退。效率低下， 它被定義爲衍生品不抵消基礎風險的程度，立即在商品成本中確認 成交了。在截至2024年12月31日、2023年12月31日和2022年12月31日的年度內，該公司沒有將其任何衍生品指定爲現金流對沖。 |
| 商品風險--非指定套期保值 | - 該公司使用衍生品工具通過簽訂交易所交易的期貨來鎖定一定數量的玉米和酒精的價格 這些商品的合同或期權。這些衍生品不是指定用於對沖會計處理的。公允價值的變動 這些合同中的一部分被記錄在資產負債表上，並立即在售出貨物成本中確認。公司確認淨收益 共$ |
，淨虧損#美元。
淨收益爲$
由於這些合同的公允價值在這些年中的變化 分別於2024年12月31日、2023年12月31日和2022年12月31日結束。
非指定衍生工具
分類 及本公司未被指定爲對沖工具的衍生工具及相關現金抵押品餘額如下 (單位：千)：
截至2024年12月31日
資產
負債
-30-
投資工具類型
資產負債表位置
公允價值
資產負債表位置
公平值
現金抵押品餘額
受限現金
商品合約
十二月三十一日，
| 資產 | ||||||||||||||||||||||||
| 12/2019 | 12/2020 | 12/2021 | 12/2022 | 12/2023 | 12/2024 | |||||||||||||||||||
| 操作 | 100.00 | 835.38 | 740.00 | 443.08 | 409.23 | 240.00 | ||||||||||||||||||
| 使用權經營租賃資產，淨值 | 100.00 | 144.92 | 177.06 | 119.45 | 172.77 | 223.87 | ||||||||||||||||||
| Liabilites | 100.00 | 284.83 | 277.30 | 193.70 | 174.51 | 141.58 | ||||||||||||||||||
-31-
運行-當前
當前部分，經營租賃
運營-非當前
經營租賃，扣除流動部分
租賃成本的組成部分如下（以千計）：
截至十二月三十一日止的年度，
固定租賃成本
可變租賃成本
淨租賃成本
阿爾託成分公司
合併財務報表附註
下表總結了剩餘期限 截至2024年12月31日，假設所有土地租賃延期，公司的經營租賃負債（單位：千）：
年終：
設備
土地有關
計算福利義務時使用的假設：2貼現率2計劃資產的預期長期回報2 補償增值率
截至十二月三十一日止的年度，
-32-
定期福利淨成本的構成如下：
| 服務成本 | 利息成本計劃資產預期回報 |
| 定期淨成本(收益) | Alto配料公司合併財務報表附註 |
| 公司預計不會做出任何貢獻 在截至2025年12月31日的一年中。2025年的定期淨收益估計約爲#美元。 | 萬下表彙總了預期收益 本公司未來五個財政年度每年及五個財政年度合計的退休計劃付款 此後(以千爲單位)：212月31日：2有關退休計劃公允價值的討論，請參閱附註15 披露。 |
倍數的歷史和未來預期收益 對資產類別進行了分析，以制定每個資產類別的無風險實際回報率和風險溢價。每個項目的總費率 資產類別是通過組合長期通脹成分、無風險的實際回報率和相關的風險溢價來開發的。 根據這些總費率和退休計劃的目標資產分配，制定了加權平均費率。
公司的養老金委員會負責 負責監管養老金計劃資產的投資。養老金委員會負責確定和監測適當的 資產配置以及選擇或更換投資經理、受託人和託管人。退休計劃的當前投資 目標分配是
%股票和其他; 遞延稅項總資產總額; 減：估值津貼; 遞延稅項資產總額，扣除估值免稅額遞延稅項負債：物業及設備衍生物其他遞延所得稅負債總額包括在其他負債中的遞延稅項淨負債Alto配料公司合併財務報表附註本公司結轉的部分淨營業虧損爲 根據稅法的規定，限制利用公司在某些所有權變更日期之前發生的虧損 發生。這些限制也適用於所有權變更時與手頭資產相關的某些折舊扣除 以及在所有權變更後的五年期間內允許的。由於五年時效期限已於2019年到期， 這些不允許的扣除反映在上述附表中的財產和設備中，但仍受年度限制 這適用於變動前的淨營業虧損。由於對淨營業虧損和折舊扣除的使用有限制， 無論公司是否產生未來的應稅收入，這些結轉中的很大一部分都將到期。減量後 這些淨營業虧損將結轉到因這一限制而到期的金額，公司有剩餘的聯邦淨額 營業虧損結轉約爲$和州淨營業虧損結轉約爲$在… 2024年12月31日。2這些淨營業虧損結轉到期時間如下(以千計)：2納稅年度聯邦狀態2040年及以後*。這主要與本年度累積的額外淨營業虧損有關。未承認的稅收優惠的期初餘額和期末餘額的對賬 本報告所述期間的未確認稅收優惠總額(未計利息和罰款)如下(以千計)：
十二月三十一日，
-33-
年初未確認的稅收優惠
與當年稅收狀況相關的增加
與本年度納稅狀況有關的減少額
與上一年稅務狀況相關的增加
與上一年稅務狀況相關的減少
與上一年稅務頭寸到期有關的減少
與上一年度稅務頭寸結算有關的減少額
年底未確認的稅收優惠
本公司記錄了以下未確認的稅收優惠 不確定的稅收狀況約爲#美元
截至2024年和2023年12月31日，其中
會影響實際稅率， 如果被認出的話。2本公司確認相關利息和罰金 所得稅事項分別作爲利息支出的組成部分和其他收入的淨額。截至2024年12月31日，本公司應計 罰款$
而利息爲$
-34-
與不確定的稅收狀況有關。公司不期待未確認的稅收優惠 在接下來的12個月裏發生重大變化。2Alto配料公司
合併財務報表附註2公司在美國繳納所得稅 州聯邦司法管轄區和各個州司法管轄區，並已確定其聯邦納稅申報表和州司法管轄區的納稅申報表 以下爲「主要」稅務申報。這些司法管轄區以及根據適用法規仍開放進行審計的年份 限制如下：2管轄權2納稅年度2聯邦
阿拉巴馬2亞利桑那2.
阿肯色
加州
科羅拉多
康涅狄格
格魯吉亞2愛達荷2伊利諾伊
-35-
印第安納2艾奧瓦
堪薩斯
路易斯安那
密歇根
明尼蘇達
密西西比
好幾年了。
-36-
Alto配料公司
合併財務報表附註
14.承付款和或有事項。
承諾
-以下是對 2024年12月31日的重大承諾：
銷售承諾
-2024年12月31日， 該公司與其主要客戶簽訂了銷售合同，銷售一定數量的酒精和基本成分。這個 該公司擁有未結的酒類指數化價格合同
| 從2024年12月31日起開始固定價格的酒類銷售
合同總額爲$ 截至2024年12月31日。該公司有開放的固定價格銷售合同，主要成分總計 $ | 和公開的指標價銷售合同的基本成分 截至2024年12月31日。這些銷售合同 計劃在未來12個月內完成。 | |||||||||||||||
| 購承擔 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| -2024年12月31日， 公司有指標價採購合同要採購 | $ | (41,712 | ) | $ | (18,945 | ) | $ | (58,984 | ) | $ | (28,005 | ) | ||||
| 購買加侖酒和固定價格的採購合同 $ | ||||||||||||||||
| 從其供應商那裏購買酒精。該公司有固定價格的採購合同，以購買$ | 2,474 | 2,126 | 7,644 | 7,425 | ||||||||||||
| 從其供應商那裏購買玉米 截至2024年12月31日。該公司有#年的指標價採購合同。 | (112 | ) | (265 | ) | (689 | ) | (854 | ) | ||||||||
| MMBtu天然氣。公司有未來 某些基本項目的承擔額合共爲#美元 | (5,495 | ) | 8,162 | (13,574 | ) | 9,679 | ||||||||||
| 。該公司還有一個未來的承諾，即$ | 5,676 | 700 | 7,701 | 2,800 | ||||||||||||
| 對於購買 科迪亞克碳素有限責任公司。見附註16.這些採購承諾計劃在2025年前兌現。 | 24,790 | 5,970 | 24,790 | 6,544 | ||||||||||||
| 或有事件 | 173 | 97 | 173 | 97 | ||||||||||||
| -以下是說明 截至2024年12月31日的重大意外事件： | 6,548 | 5,698 | 24,408 | 23,080 | ||||||||||||
| 訴訟 | 34,054 | 22,488 | 50,453 | 48,771 | ||||||||||||
| 本公司受制於各種 在正常業務過程中的索賠和或有事項，包括與訴訟、商業交易、與員工有關的索賠和或有事項 很重要，還有其他的。當公司意識到索賠或潛在索賠時，它會評估任何損失或風險的可能性。如果 很可能會造成損失，並且損失的金額可以合理估計，公司將爲以下情況記錄責任 損失。如果損失不可能發生或損失金額不能合理估計，本公司在下列情況下披露索賠 潛在損失的可能性是合理的，涉及的金額可能是巨大的。雖然本公司不能提供任何保證， 本公司預計其任何未決的法律程序不會對本公司的經營產生重大的財務影響 結果。 | $ | (7,658 | ) | $ | 3,543 | $ | (8,531 | ) | $ | 20,766 | ||||||
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公允價值計量。
公允價值層次結構對估值中使用的投入進行優先排序 技術分爲三個層次，如下：
●
| 水平 1-可觀察到的投入-活躍市場的未調整報價 資產和負債； | ●水平 2-第1級中可觀察到的報價以外的可觀察輸入 經市場數據佐證的資產或負債；以及 |
| o | ● |
| o | 水平 3-不可觀察的投入-包括從估值模型中獲得的金額，其中 無法觀察到一個或多個重要輸入。對於公允價值計量，使用顯著 不可觀察的輸入、對輸入的描述以及用於開發 需要輸入，並對先前報告中的三級值進行對賬 句號。 |
| o | Alto配料公司 |
| 合併財務報表附註 | 彙集單獨的帳戶 |
| -彙集獨立帳戶 主要投資於國內和國際股票、商業票據或單一共同基金。資產淨值被用作實際資產價值 爲這些帳戶確定公允價值是有利的。每個彙集的單獨帳戶用於按退休計劃贖回，地址爲 報告的每股資產淨值，幾乎沒有提前通知的要求，因此這些基金被歸類在 估值層次的2。 | 衍生工具 |
| -公司的衍生產品 工具由大宗商品頭寸組成。商品頭寸的公允價值以商品交易所的報價爲基礎。 並被指定爲1級輸入。 | 長期資產 |
| -長期資產包括 本公司與其魔幻谷設施相關的估計公允價值。有關更多信息，請參見注釋1。集市 長期資產的價值是基於估計的未來現金流量的現值，並被指定爲第三級投入。 | 2008年5月22日登記人尼爾·M·克勒、比爾·瓊斯、保羅·P·克勒和托馬斯·D·克勒之間的信函協議#年#月#日。第二次修訂和重新簽署了2017年8月2日太平洋農業公司KinEnergy Marketing LLC之間的信貸協議。Products，LLC，Wells Fargo Bank，National Association，及其當事人不時作爲貸款人 |
-38-
太平洋銀KinEnergy Marketing LLC於2019年3月27日修訂並重新簽署的第二次信貸協議第1號修正案。產品有限責任公司和富國銀行，國家協會
太平洋銀KinEnergy Marketing LLC於2019年7月31日修訂並重新簽署的信貸協議第二修正案第2號修正案。Products，LLC，當事人不時作爲貸款人和富國銀行，國家協會2太平洋銀KinEnergy Marketing LLC於2019年11月19日修訂並重新簽署的信貸協議第二修正案第3號。Products，LLC，當事人不時作爲貸款人和富國銀行，國家協會
所在位置
展品
Number
| 說明* | 形式 |
| 文件 | Number |
| 展品 | Number |
| 提交日期 | 提交 |
| 特此聲明 | 放棄、同意和修訂2021年3月8日第二次修訂和重新簽署的信貸協議，該協議由KinEnergy Marketing LLC、Alto Nutritics LLC和Wells Fargo Bank，National Association |
| 放棄、同意和修訂2021年6月10日第二次修訂和重新簽署的信貸協議的第5號修正案，由KinEnergy Marketing LLC、Alto養分有限責任公司和富國銀行全國協會之間達成 | 對第二次修訂和重新簽署的信貸協議的第6號修正案，日期爲2022年11月7日，由KinEnergy Marketing LLC、Alto Nutritics LLC和Wells Fargo Bank，National Association |
| 註冊人的子公司 | 獨立註冊會計師事務所的同意 |
根據2002年薩班斯-奧克斯利法案第302條通過的修訂的1934年證券交易法第13 a-14（a）條要求的認證
根據2002年薩班斯-奧克斯利法案第302條通過的修訂的1934年證券交易法第13 a-14（a）條要求的認證
首席執行官和首席財務官根據18 USC認證第1350條，根據2002年薩班斯-奧克斯利法案第906條通過
阿爾託配料公司多德-弗蘭克補救政策
101.INS
-39-
內聯MBE實例文檔
101.SCH
| 內聯MBE分類擴展架構 | ||||||||||||||||||||
| 101.CAL | Inline MBE分類擴展計算Linkbase | 101.DEF | ||||||||||||||||||
| 2024 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| 內聯MBE分類擴展定義Linkbase | ||||||||||||||||||||
| 101.LAB | 125.7 | 136.2 | 116.1 | (8 | )% | 17 | % | |||||||||||||
| 內聯MBE分類擴展標籤Linkbase | 60.5 | 67.0 | 92.4 | (10 | )% | (27 | )% | |||||||||||||
| 101.PRE | 108.3 | 102.6 | 117.9 | 6 | % | (13 | )% | |||||||||||||
| Inline MBE分類擴展演示Linkbase | 294.5 | 305.8 | 326.4 | (4 | )% | (6 | )% | |||||||||||||
| 封面交互式數據文件（格式爲Inline BEP，具有適用的分類擴展信息 包含在展品101中） | 91.5 | 76.7 | 92.5 | 19 | % | (17 | )% | |||||||||||||
| 董事或高管簽訂的合同、補償計劃或安排 高管是一方或一名或多名董事或高管有資格 參加 | 386.0 | 382.5 | 418.9 | 1 | % | (9 | )% | |||||||||||||
| 美國-公認會計準則：首選股票成員 | ||||||||||||||||||||
| 中音：CommonStockAndNonVotingCommonMember | $ | 1.95 | $ | 2.40 | $ | 2.55 | (19 | )% | (6 | )% | ||||||||||
| us-gaap：AdditionalPaidInCapitalMember | $ | 1.91 | $ | 2.49 | $ | 2.75 | (23 | )% | (9 | )% | ||||||||||
| us-gaap：保留收益會員 | $ | 2.00 | $ | 2.56 | $ | 2.83 | (22 | )% | (10 | )% | ||||||||||
| us-gaap：累計收入會員 | $ | 1.95 | $ | 2.47 | $ | 2.64 | (21 | )% | (6 | )% | ||||||||||
| 美國-公認會計準則：首選股票成員 | ||||||||||||||||||||
| 中音：CommonStockAndNonVotingCommonMember | 212.4 | 209.7 | 208.8 | 1 | % | 0 | % | |||||||||||||
| us-gaap：AdditionalPaidInCapitalMember | 58.7 | 68.1 | 91.2 | (14 | )% | (25 | )% | |||||||||||||
| us-gaap：保留收益會員 | 271.1 | 277.8 | 300.0 | (2 | )% | (7 | )% | |||||||||||||
| us-gaap：累計收入會員 | ||||||||||||||||||||
| 美國-公認會計準則：首選股票成員 | $ | 4.45 | $ | 6.32 | $ | 7.32 | (30 | )% | (14 | )% | ||||||||||
| 中音：CommonStockAndNonVotingCommonMember | $ | 5.73 | $ | 7.45 | $ | 8.97 | (23 | )% | (17 | )% | ||||||||||
| us-gaap：AdditionalPaidInCapitalMember | $ | 4.72 | $ | 6.58 | $ | 7.77 | (28 | )% | (15 | )% | ||||||||||
| us-gaap：保留收益會員 | ||||||||||||||||||||
| us-gaap：累計收入會員 | $ | 1.69 | $ | 2.22 | $ | 2.47 | (24 | )% | (10 | )% | ||||||||||
| 美國-公認會計準則：首選股票成員 | $ | 4.24 | $ | 5.64 | $ | 6.94 | (25 | )% | (19 | )% | ||||||||||
| 中音：CommonStockAndNonVotingCommonMember | $ | 0.18 | $ | 0.21 | $ | 0.00 | (14 | )% | — | |||||||||||
| us-gaap：AdditionalPaidInCapitalMember | ||||||||||||||||||||
| us-gaap：保留收益會員 | ||||||||||||||||||||
| us-gaap：累計收入會員 | 336.4 | 332.7 | 334.4 | 1 | % | (1 | )% | |||||||||||||
| us-gaap：庫存成員2 | 188.6 | 182.4 | 164.8 | 3 | % | 11 | % | |||||||||||||
| us-gaap：庫存成員 | 121.8 | 95.0 | 89.9 | 28 | % | 6 | % | |||||||||||||
| srt：MinimumMember | 87.2 | 90.6 | 81.6 | (4 | )% | 11 | % | |||||||||||||
| srt：MaximumMember | 75.1 | 73.8 | 66.7 | 2 | % | 11 | % | |||||||||||||
| 中音：股權方法投資會員 | 38.6 | 41.2 | 56.9 | (6 | )% | (28 | )% | |||||||||||||
| us-gaap：非投票CommonStockMember | 35.4 | 36.8 | 32.1 | (4 | )% | 15 | % | |||||||||||||
| us-gaap：CommonStockMember | 23.2 | 25.9 | 23.9 | (10 | )% | 8 | % | |||||||||||||
| 中音：客戶AMSYS | 906.3 | 878.4 | 850.3 | 3 | % | 3 | % | |||||||||||||
| us-gaap：Sales Member | ||||||||||||||||||||
| us-gaap：客戶集中風險會員 | 394.5 | 459.7 | 643.7 | (14 | )% | (29 | )% | |||||||||||||
| 中音：客戶AMSYS2 | 57.7 | 119.1 | 77.4 | (52 | )% | 54 | % | |||||||||||||
| us-gaap：Sales Member | 54.8 | 55.5 | 55.8 | (1 | )% | (1 | )% | |||||||||||||
| us-gaap：客戶集中風險會員 | 7.6 | 8.0 | 10.2 | (5 | )% | (22 | )% | |||||||||||||
| 中音：客戶AMSYS | 514.6 | 642.3 | 787.1 | (20 | )% | (18 | )% | |||||||||||||
| us-gaap：Sales Member | 1,420.9 | 1,520.7 | 1,637.4 | (7 | )% | (7 | )% | |||||||||||||
| us-gaap：客戶集中風險會員 | ||||||||||||||||||||
| 中音：客戶B會員 | 49.7 | % | 45.7 | % | 41.3 | % | 9 | % | 11 | % | ||||||||||
| us-gaap：Sales Member | 32.0 | % | 33.4 | % | 31.6 | % | (4 | )% | 6 | % | ||||||||||
| us-gaap：客戶集中風險會員 | 45.2 | % | 42.4 | % | 37.9 | % | 7 | % | 12 | % | ||||||||||
| (1) | 中音：客戶B會員 |
| (2) | us-gaap：Sales Member |
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us-gaap：客戶集中風險會員
| 中音：客戶B會員 us-gaap：Sales Member | us-gaap：客戶集中風險會員 | 中音：購買會員 | us-gaap：客戶集中風險會員 中音：供應商AMSYS 中音：購買會員 us-gaap：客戶集中風險會員 | |||||||||||||||||||||
| 2024 | 2023 | 中音：供應商AMSYS | 中音：購買會員 | 2024 | 2023 | |||||||||||||||||||
| us-gaap：客戶集中風險會員 | ||||||||||||||||||||||||
| 中音：供應商AMSYS | $ | 965,258 | $ | 1,222,940 | $ | (257,682 | ) | (21.1 | )% | 100.0 | % | 100.0 | % | |||||||||||
| 中音：購買會員 | 955,536 | 1,207,287 | (251,751 | ) | (20.9 | )% | 99.0 | % | 98.7 | % | ||||||||||||||
| us-gaap：客戶集中風險會員 | 9,722 | 15,653 | (5,931 | ) | (37.9 | )% | 1.0 | % | 1.3 | % | ||||||||||||||
| 中音：供應商B成員 | (29,736 | ) | (29,864 | ) | (128 | ) | (0.4 | )% | (3.1 | )% | (2.4 | )% | ||||||||||||
| 中音：購買會員 | (7,701 | ) | (2,800 | ) | 4,901 | 175.0 | % | (0.8 | )% | (0.2 | )% | |||||||||||||
| us-gaap：客戶集中風險會員 | 830 | (293 | ) | 1,123 | * | (0.0 | )% | (0.0 | )% | |||||||||||||||
| 中音：供應商B成員 | (24,790 | ) | (6,544 | ) | 18,246 | 278.8 | % | (2.6 | )% | (0.5 | )% | |||||||||||||
| 中音：WesternProductionSegmentMember | (51,675 | ) | (23,848 | ) | 27,827 | 116.7 | % | (5.4 | )% | (2.0 | )% | |||||||||||||
| 中音：酒精銷售會員 | — | 2,812 | (2,812 | ) | (100.0 | )% | 0.0 | % | 0.2 | % | ||||||||||||||
| 中音：WesternProductionSegmentMember | (7,644 | ) | (7,425 | ) | 219 | 2.9 | % | (0.8 | )% | (0.6 | )% | |||||||||||||
| 中音：SEARCH DIentSales Member | 508 | 553 | (45 | ) | (8.1 | )% | 0.1 | % | 0.0 | % | ||||||||||||||
| 中音：WesternProductionSegmentMember | (58,811 | ) | (27,908 | ) | 30,903 | 110.7 | % | (6.1 | )% | (2.3 | )% | |||||||||||||
| 中音：SEARCH DIentSales Member | 173 | 97 | 76 | 78.4 | % | 0.0 | % | 0.0 | % | |||||||||||||||
| 中音：WesternProductionSegmentMember | $ | (58,984 | ) | $ | (28,005 | ) | $ | 30,979 | 110.6 | % | (6.1 | )% | (2.3 | )% | ||||||||||
| 中音：SEARCH DIentSales Member | (1,269 | ) | (1,265 | ) | 4 | 0.3 | % | (0.1 | )% | (0.1 | )% | |||||||||||||
| 中音：WesternProductionSegmentMember | $ | (60,253 | ) | $ | (29,270 | ) | $ | 30,983 | 105.9 | % | (6.2 | )% | (2.4 | )% | ||||||||||
| * | 中音：IntersegmentSaleMember |
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中音：WesternProductionSegmentMember
中音：IntersegmentSaleMember
中音：WesternProductionSegmentMember
中音：IntersegmentSaleMember
中音：WesternProductionSegmentMember
中音：IntersegmentSaleMember
中音：WesternProductionSegmentMember
中音：TotalWesternProductionSales Member
中音：IntersegmentSaleMember
中音：WesternProductionSegmentMember
中音：北京校園製作會員
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中音：營銷和分銷會員
中音：營銷和分銷會員
中音：WesternProductionMember
中音：WesternProductionMember
us-gaap：CorporateAndeMember
us-gaap：CorporateAndeMember
中音：KinergyTradenameMember
us-gaap：客戶推薦船舶成員
中音：leAlcoholTradenameMember
中音：客戶訂單和貿易會員
us-gaap：GoodwillMember
us-gaap：GoodwillMember
中音：KinergyTradenameMember
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中音：KinergyTradenameMember
us-gaap：客戶推薦船舶成員
us-gaap：客戶推薦船舶成員
中音：leAlcoholTradenameMember
中音：leAlcoholTradenameMember
中音：現金抵押品餘額會員
us-gaap：EntityContractMember
中音：現金抵押品餘額會員
us-gaap：EntityContractMember
中音：實現GainsLossesMember
us-gaap：EntityContractMember
us-gaap：CostOfSales Member
中音：實現GainsLossesMember
us-gaap：EntityContractMember
us-gaap：CostOfSales Member
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中音：實現GainsLossesMember
us-gaap：EntityContractMember
| us-gaap：CostOfSales Member 2024 | 中音：實現GainsLossesMember 2023 | us-gaap：CostOfSales Member | ||||||||||
| 中音：實現GainsLossesMember | $ | 36,211 | $ | 45,480 | (20 | )% | ||||||
| us-gaap：CostOfSales Member | $ | 153,118 | $ | 168,770 | (9 | )% | ||||||
| 中音：實現GainsLossesMember | $ | 214,742 | $ | 248,748 | (14 | )% | ||||||
| us-gaap：CostOfSales Member | $ | 57,804 | $ | 65,288 | (11 | )% | ||||||
| 中音：未實現GainsLossesMember | $ | 92,904 | $ | 82,097 | 13 | % | ||||||
| us-gaap：EntityContractMember | $ | 95,314 | $ | 103,482 | (8 | )% | ||||||
| 中音：OrionTermLoanMember | 2.65 | 2.59 | 2 | % | ||||||||
中音：OrionTermLoanMember
中音：IfLeverRatioIsGreaterThanOrtium To ThreePointZerox Member
中音：IfTheLeverageRatioIsLessThanThreePointZeroxAndGreaterThanOrtium ToOnePointFivexMember
中音：IfTheLeverageRatioIsLessThan 15x成員
中音：KinergyLineOfCreditMember
中音：OrionTermLoanMember
us-gaap：設備成員
us-gaap：LandMember
| us-gaap：設備成員 | us-gaap：LandMember |
| us-gaap：設備成員 | 中音：土地相關成員 |
| srt：ScenarioForecastMember | us-gaap：定義受益計劃股票證券成員 |
| us-gaap：定義受益計劃債務安全成員 | 中音：PreMedicare後治療成員 |
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中音：後階段計劃成員
| 中音：退休計劃成員 | 中音：退休計劃成員 |
| 中音：AlcoholFromItSuppliersMember | 中音：Ethanol購買合同成員 |
中音：CornFromSuppliersMember
中音：Ethanol購買合同成員
us-gaap：NaturalGas ProductionMember
中音：Ethanol購買合同成員
中音：KodiakCarbonicLLCMember
美國公認會計準則：衍生金融工具資產成員
美國公認會計準則：衍生金融工具資產成員
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美國-公認會計準則：公允價值輸入級別1成員
| 美國公認會計準則：衍生金融工具資產成員 美國-公認會計準則：公允價值輸入級別2成員 | ||||||||
| 2024 | 2023 | |||||||
| 美國公認會計準則：衍生金融工具資產成員 | 1.10 | 1.10 | ||||||
| 美國-公認會計準則：公允價值投入級別3成員 | 3.53 | 5.22 | ||||||
| 中音：LonglivedAssetsMagicValleyMember | 2.43 | 4.12 | ||||||
中音：LonglivedAssetsMagicValleyMember
美國-公認會計準則：公允價值輸入級別1成員
中音：LonglivedAssetsMagicValleyMember
美國-公認會計準則：公允價值輸入級別2成員
中音：LonglivedAssetsMagicValleyMember
美國-公認會計準則：公允價值投入級別3成員
中音：大USEquityMember
美國-公認會計準則：公允價值輸入級別1成員
中音：大USEquityMember
美國-公認會計準則：公允價值輸入級別2成員
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中音：大USEquityMember
美國-公認會計準則：公允價值投入級別3成員
中音：大USEquityMember
中音：SmallMidUSEquityMember
美國-公認會計準則：公允價值輸入級別1成員
中音：SmallMidUSEquityMember
美國-公認會計準則：公允價值輸入級別2成員
中音：SmallMidUSEquityMember
美國-公認會計準則：公允價值投入級別3成員
中音：SmallMidUSEquityMember
中音：國際公平會員
-48-
美國-公認會計準則：公允價值輸入級別1成員
中音：國際公平會員
美國-公認會計準則：公允價值輸入級別2成員
中音：國際公平會員
美國-公認會計準則：公允價值投入級別3成員
中音：國際公平會員
中音：固定收入會員
美國-公認會計準則：公允價值輸入級別1成員
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中音：固定收入會員
美國-公認會計準則：公允價值輸入級別2成員
中音：固定收入會員
美國-公認會計準則：公允價值投入級別3成員
中音：固定收入會員
美國-公認會計準則：公允價值輸入級別1成員
美國-公認會計準則：公允價值輸入級別2成員
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美國-公認會計準則：公允價值投入級別3成員
美國公認會計準則：衍生金融工具負債成員
美國-公認會計準則：公允價值輸入級別1成員
美國公認會計準則：衍生金融工具負債成員
| 美國-公認會計準則：公允價值輸入級別2成員 | 美國公認會計準則：衍生金融工具負債成員 | 美國-公認會計準則：公允價值投入級別3成員 | 美國公認會計準則：衍生金融工具負債成員 美國公認會計準則：衍生金融工具資產成員 美國公認會計準則：衍生金融工具負債成員 | |||||
| 美國-公認會計準則：公允價值投入級別3成員 | 294.5 | 美國公認會計準則：衍生金融工具負債成員 | $ | 31.6 | ||||
| 美國公認會計準則：衍生金融工具負債成員 | 66.5 | 中音：KodiakCarbonicLLCMember | $ | 28.2 | ||||
美國公認會計準則：次要事件成員
美國公認會計準則：次要事件成員
iso4217：USD
xbrli：股票
iso4217：USD
xbrli：股票
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utr：gal
utr：T
| (i) | xbrli：純粹 |
| (ii) | utr：dth |
| (iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements. |
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A material weakness is defined by the Public Company Accounting Oversight Board’s Audit Standards AS 2201 as being a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework set forth in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework set forth in Internal Control — Integrated Framework (2013), our management concluded that our internal control over financial reporting was effective as of December 31, 2024.
RSM US LLP, an independent registered public accounting firm, has issued an attestation report on our internal control over financial reporting as of December 31, 2024. That report is included in Part IV of this report.
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Inherent Limitations on the Effectiveness of Controls
Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control systems are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of internal control over financial reporting can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been or will be detected.
These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information.
During the three months ended December 31, 2024,
none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) informed us of the
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Not applicable.
-53-
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
The information under the captions “Information about our Board of Directors, Board Committees and Related Matters” appearing in the Proxy Statement, is hereby incorporated by reference.
Item 11. Executive Compensation.
The information under the caption “Executive Compensation and Related Information,” appearing in the Proxy Statement, is hereby incorporated by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The information under the captions “Security Ownership of Certain Beneficial Owners and Management” and “Equity Compensation Plan Information,” appearing in the Proxy Statement, is hereby incorporated by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
The information under the captions “Certain Relationships and Related Transactions” and “Information about our Board of Directors, Board Committees and Related Matters—Director Independence” appearing in the Proxy Statement, is hereby incorporated by reference.
Item 14. Principal Accountant Fees and Services.
The information under the caption “Audit Matters—Principal Accountant Fees and Services,” appearing in the Proxy Statement, is hereby incorporated by reference.
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PART IV
Item 15. Exhibits and Financial Statement Schedules.
(a)(1) Financial Statements
Reference is made to the financial statements listed on and attached following the Index to Consolidated Financial Statements contained on page F-1 of this report.
(a)(2) Financial Statement Schedules
None.
(a)(3) Exhibits
Reference is made to the exhibits listed on the Index to Exhibits.
Item 16. Form 10-K Summary.
None.
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Index to Consolidated Financial Statements
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Alto Ingredients, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Alto Ingredients, Inc. and its subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 13, 2025, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.
F-2
Long-lived asset impairment
As described in Note 1 to the financial statements, the Company assesses the impairment of long-lived assets when events or changes in circumstances indicate that the fair value of assets could be less than their carrying value. In such event, the Company assesses long-lived assets for impairment by first determining the forecasted, undiscounted cash flows the asset group is expected to generate plus the net proceeds expected from the sale of the asset group. If this amount is less than the carrying value of the asset group, the Company will then determine the fair value of the asset group. When the estimated fair value of the asset group is less than its carrying value, the Company recognizes an impairment expense equal to the difference between the asset group’s carrying value and estimated fair value. The Company’s assessment resulted in an asset impairment of $24,790,000 for the year ended December 31, 2024.
We identified the evaluation of the fair value of asset groups, where fair value was required to be determined as part of the impairment analysis, as a critical audit matter because of the significant estimates management makes when determining fair value. This required a high degree of auditor judgment when performing audit procedures to evaluate whether management appropriately determined fair value.
Our audit procedures related to the evaluation of fair value, where fair value was required to be determined as part of the impairment analysis, included the following, among others:
| ● | We obtained an understanding of management’s process and the internal controls over management’s determination of fair value and tested the operating effectiveness of the controls |
| ● | We obtained management’s determination of fair value and evaluated management’s determination by: |
| o | Comparing it to publicly available information related to sales of comparable asset groups sold by the Company and others in the industry |
| o | Comparing the sales price per nameplate production gallons to the carrying value of the asset group |
| /s/ RSM US LLP | |
| We have served as the Company’s auditor since 2015. | |
| Rochester, Minnesota | |
| March 13, 2025 | |
F-3
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Alto Ingredients, Inc.
Opinion on the Internal Control Over Financial Reporting
We have audited Alto Ingredients, Inc.’s (the Company) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes to the consolidated financial statements of the Company and our report dated March 13, 2025, expressed an unqualified opinion.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
| /s/ | |
| March 13, 2025 |
F-4
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and par value)
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Accounts receivable, net of allowance for credit losses of $ | ||||||||
| Inventories | ||||||||
| Derivative instruments | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Other Assets: | ||||||||
| Right of use operating lease assets, net | ||||||||
| Intangible assets, net | ||||||||
| Other assets | ||||||||
| Total other assets | ||||||||
| Total Assets | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-5
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(in thousands, except shares and par value)
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued liabilities | ||||||||
| Current portion – operating leases | ||||||||
| Derivative instruments | ||||||||
| Other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Long-term debt, net | ||||||||
| Operating leases, net of current portion | ||||||||
| Other liabilities | ||||||||
| Total Liabilities | ||||||||
| Commitments and contingencies (Notes 1, 8, 9, 10 and 14) | ||||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock, $ | ||||||||
| Series A: | ||||||||
| Series B: | ||||||||
| Common stock, $ | ||||||||
| Non-voting common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive income | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-6
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Net sales | $ | $ | $ | |||||||||
| Cost of goods sold | ||||||||||||
| Gross profit (loss) | ( | ) | ||||||||||
| Selling, general and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||
| Acquisition-related expenses | ( | ) | ( | ) | ( | ) | ||||||
| Gain (loss) on sale or disposal of assets | ( | ) | ( | ) | ||||||||
| Asset impairments | ( | ) | ( | ) | ||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ||||||
| Income from cash grant | ||||||||||||
| Interest expense, net | ( | ) | ( | ) | ( | ) | ||||||
| Other income, net | ||||||||||||
| Loss before provision for income taxes | ( | ) | ( | ) | ( | ) | ||||||
| Provision for income taxes | ||||||||||||
| Consolidated net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Preferred stock dividends | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Loss attributable to common stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Weighted-average shares outstanding, basic and diluted | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-7
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Consolidated net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Other comprehensive income– net gain arising during the period on defined benefit pension plans | ||||||||||||
| Total comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
The accompanying notes are an integral part of these consolidated financial statements.
F-8
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
| Common Stock and | Additional | Accum. Other | ||||||||||||||||||||||||||||||
| Preferred Stock | Non-Voting Common | Paid-In | Accumulated | Comprehensive | ||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Income (Loss) | Total | |||||||||||||||||||||||||
| Balances, December 31, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||
| Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
| Restricted stock issued to employees and directors, net of cancellations and tax | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Shares issued for Eagle | — | |||||||||||||||||||||||||||||||
| Shares issued to Orion | — | |||||||||||||||||||||||||||||||
| Stock repurchases | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| Pension plan adjustment | — | — | ||||||||||||||||||||||||||||||
| Preferred stock dividends | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net loss | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Balances, December 31, 2022 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||
| Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
| Restricted stock issued to employees and directors, net of cancellations and tax | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Stock repurchases | — | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| Pension plan adjustment | — | — | ||||||||||||||||||||||||||||||
| Preferred stock dividends | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net loss | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Balances, December 31, 2023 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||
| Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
| Restricted stock issued to employees and directors, net of cancellations and tax | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Pension plan adjustment | — | — | ||||||||||||||||||||||||||||||
| Preferred stock dividends | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net loss | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Balances, December 31, 2024 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-9
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| For the Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Operating Activities: | ||||||||||||
| Consolidated net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Adjustments to reconcile consolidated net loss to cash (used in) provided by operating activities: | ||||||||||||
| Depreciation and amortization of intangibles | ||||||||||||
| Asset impairments | ||||||||||||
| (Gain) loss on sale or disposal of assets | ( | ) | ||||||||||
| Inventory valuation | ||||||||||||
| Losses (gains) on derivative instruments | ( | ) | ( | ) | ||||||||
| Amortization of deferred financing costs | ||||||||||||
| Amortization of debt discounts | ||||||||||||
| Stock-based compensation | ||||||||||||
| Bad debt (recovery) expense | ( | ) | ( | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | ||||||||||||
| Inventories | ( | ) | ||||||||||
| Other current assets | ||||||||||||
| Operating leases | ( | ) | ( | ) | ( | ) | ||||||
| Accounts payable and accrued expenses | ( | ) | ||||||||||
| Net cash (used in) provided by operating activities | $ | ( | ) | $ | $ | |||||||
| Investing Activities: | ||||||||||||
| Additions to property and equipment | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Deferred purchase price payments for Eagle Alcohol | ( | ) | ( | ) | ||||||||
| Proceeds from sale of assets | ||||||||||||
| Purchase of Eagle Alcohol, net of cash acquired | ( | ) | ||||||||||
| Proceeds from principal payments on notes receivable | ||||||||||||
| Net cash used in investing activities | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Financing Activities: | ||||||||||||
| Net proceeds from (payments on) Kinergy’s line of credit | $ | $ | $ | ( | ) | |||||||
| Net proceeds from term loan | ||||||||||||
| Stock repurchases | ( | ) | ( | ) | ||||||||
| Debt issuance costs | ( | ) | ( | ) | ||||||||
| Preferred stock dividend payments | ( | ) | ( | ) | ( | ) | ||||||
| Net cash provided by financing activities | $ | $ | $ | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | ( | ) | ( | ) | ( | ) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | $ | |||||||||
| Reconciliation of total cash, cash equivalents and restricted cash: | ||||||||||||
| Cash and cash equivalents | $ | $ | $ | |||||||||
| Restricted cash | ||||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | $ | |||||||||
| Supplemental Information: | ||||||||||||
| Interest paid (net of capitalized interest) | $ | $ | $ | |||||||||
| Capitalized interest | $ | $ | $ | |||||||||
| Income tax refunds (payments) | $ | $ | ( |
) | $ | ( |
) | |||||
The accompanying notes are an integral part of these consolidated financial statements.
F-10
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES.
Organization and Business – The consolidated financial statements include, for all periods presented, the accounts of Alto Ingredients, Inc., a Delaware corporation (“Alto Ingredients”), and its direct and indirect wholly-owned subsidiaries (collectively, the “Company”), including Kinergy Marketing LLC, an Oregon limited liability company (“Kinergy”), Alto Nutrients, LLC, a California limited liability company (“Alto Nutrients”), Alto Op Co., a Delaware corporation, Alto Pekin, LLC, a Delaware limited liability company (“Alto Pekin”) and Alto ICP, LLC, a Delaware limited liability company (“ICP”), and the Company’s production facilities in Oregon and Idaho.
As discussed in Note 2, on January 14, 2022, the Company acquired Eagle Alcohol Company LLC, a Missouri limited liability company (“Eagle Alcohol”). On that date, Eagle Alcohol became a wholly-owned subsidiary of the Company. Eagle Alcohol specializes in break bulk distribution of specialty alcohols.
As discussed in Note 16, On January 1, 2025, the Company’s wholly-owned
subsidiary, Alto Carbonic, LLC (“Alto Carbonic”), acquired Kodiak Carbonic, LLC, a beverage-grade liquid CO2 processor
for $
The Company produces and distributes renewable fuels, essential ingredients and specialty alcohols. The Company also markets fuel-grade ethanol produced by third parties. The Company’s production facilities in Pekin, Illinois are located in the heart of the Corn Belt. The Company’s two production facilities in Oregon and Idaho are located in close proximity to both feed and fuel-grade ethanol customers.
The Company has a combined alcohol production capacity
of
The Company focuses on Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. Products for the Health, Home & Beauty market include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners. Products for the Food & Beverage markets include grain neutral spirits used in alcoholic beverages and vinegar as well as corn germ used for corn oils. Products for Industry & Agriculture markets include alcohols and other products for paint applications and fertilizers. Products for Essential Ingredients markets include dried yeast, corn protein meal, corn protein feed, corn germ, and distillers grains and liquid feed used in commercial animal feed and pet foods. Products for Renewable Fuels markets include fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel and biodiesel fuels.
The Company’s production facilities, other than its Magic Valley
plant, were operating for all periods presented subject to scheduled and unscheduled downtimes to address facility repair and maintenance.
In January 2024, the Company temporarily hot-idled its Magic Valley facility to minimize losses from negative regional crush margins and
to expedite the installation of additional equipment to achieve the intended production rate, quality and consistency from the Company’s
corn oil and high protein system at the facility. The Company restarted its Magic Valley facility in July 2024 and by October 2024, the
facility consistently achieved average ethanol production rates at full capacity, the protein content yield from the plant reached
Basis of Presentation – The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation.
F-11
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Segments – A segment is a component of an enterprise whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company determines and discloses its segments in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Section 280, Segment Reporting, which defines how to determine segments. The Company has adopted the guidance issued under ASU 2023-07, Segment Reporting (Topic 280), which enhances disclosures about the Company’s segments. The Company’s CODM is the Company’s executive committee, which is led by the Company’s Chief Executive Officer (“CEO”) and includes its Chief Financial Officer, Chief Operating Officer, Chief Commercial Officer and Chief Legal Officer (“Executive Committee”). The Company manages and assesses the performance of its reportable segments by its gross profit (loss). As part of the Executive Committee’s review of segment-level performance, each member of the Executive Committee reviews the gross profit of the Company’s reportable segments and provides expertise and analysis from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the Executive Committee.
The Company reports financial and operating performance in three reportable segments (1) Pekin production, which includes the entire campus in Pekin, Illinois (“Pekin Campus”), (2) marketing and distribution, which includes marketing and merchant trading for Company-produced specialty alcohols, fuel-grade ethanol and essential ingredients, and sales of fuel-grade ethanol sourced from third parties, and (3) Western production, which includes the Company’s two western production facilities and, beginning in 2025, its liquid CO2 plant on an aggregated basis (“Western production”).
Cash and Cash Equivalents – The Company considers all highly-liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its accounts at several financial institutions. These cash balances regularly exceed amounts insured by the Federal Deposit Insurance Corporation; however, the Company does not believe it is exposed to any significant credit risk on these balances.
Restricted Cash – The Company’s restricted cash comprises cash collateral balances held in derivative brokerage accounts.
Accounts Receivable and Allowance for Credit Losses – Trade accounts receivable are presented at original invoice amount, net of the allowance for credit losses. The Company sells specialty alcohols to large consumer product companies, sells fuel-grade ethanol to gasoline refining and distribution companies, sells essential ingredients to animal feed customers, including distillers grains and other feed co-products to dairy operators and animal feedlots and corn oil to poultry and renewable diesel and biodiesel customers, in each case generally without requiring collateral. Due to a limited number of customers, the Company had significant concentrations of credit risk from sales as of December 31, 2024 and 2023, as described below.
The carrying amount of accounts receivable is reduced by a valuation allowance that reflects the Company’s best estimate of the amounts that will not be collected. The Company regularly reviews accounts receivable and based on assessments of current customer creditworthiness, estimates the portion, if any, of the customer balance that will not be collected.
Of the accounts receivable balance, approximately $
Concentration Risks – Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk, whether on- or off-balance sheet, that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below. Financial instruments that subject the Company to credit risk consist of cash balances maintained in excess of federal depository insurance limits and accounts receivable which have no collateral or security. The Company has not experienced any significant losses in such accounts.
F-12
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company sells specialty alcohols to consumer product companies and fuel-grade ethanol to gasoline refining and distribution companies. The Company sold to customers representing 10% or more of the Company’s total net sales, as follows.
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Customer A | % | % | % | |||||||||
| Customer B | % | % | % | |||||||||
The Company had accounts receivable due from these customers totaling
$
The Company purchases corn, its largest cost component in producing alcohols, from its suppliers. The Company purchased corn from suppliers representing 10% or more of the Company’s total corn purchases, as follows:
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Supplier A | % | % | % | |||||||||
| Supplier B | % | % | % | |||||||||
| Supplier C | % | % | % | |||||||||
As of December 31, 2024, approximately
Inventories – Inventories consisted primarily of
bulk ethanol, specialty alcohols, corn, essential ingredients and unleaded fuel, and are valued at the lower of cost or net realizable
value, with cost determined on a first-in, first-out basis. Inventory is net of valuation adjustments of $
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Finished goods | $ | $ | ||||||
| Work in progress | ||||||||
| Raw materials | ||||||||
| Other | ||||||||
| Total | $ | $ | ||||||
Property and Equipment –
| Buildings | ||||
| Facilities and plant equipment | ||||
| Other equipment, vehicles and furniture |
The cost of normal maintenance and repairs is charged to operations as incurred. Significant capital expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The cost of property and equipment sold, or otherwise disposed of, and the related accumulated depreciation or amortization are removed from the accounts, and any resulting gains or losses are reflected in current operations.
F-13
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets – The Company amortizes intangible
assets with definite lives using the straight-line method over their estimated lives of
Leases – The Company accounts for leases under ASC Section 842, Leases (“ASC 842), whereby lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a “right of use” asset, which is an asset that represents the lessee’s right to use the specified asset for the lease term. See Note 9 for further information.
Derivative Instruments and Hedging Activities – Derivative transactions, which can include exchange-traded futures contracts, options and futures positions on the New York Mercantile Exchange or the Chicago Mercantile Exchange, are recorded on the balance sheet as assets and liabilities based on the derivative’s fair value. Changes in the fair value of derivative contracts are recognized currently in income unless specific hedge accounting criteria are met. If derivatives meet those criteria, and hedge accounting is elected, effective gains and losses are deferred in accumulated other comprehensive income (loss) and later recorded together with the hedged item in consolidated income (loss). For derivatives designated as a cash flow hedge, the Company formally documents the hedge and assesses the effectiveness with associated transactions. The Company has designated and documented contracts for the physical delivery of commodity products to and from counterparties as normal purchases and normal sales.
Revenue Recognition – The Company recognizes revenue under ASC Section 606, Revenue from Contracts with Customers (“ASC 606”). The provisions of ASC 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies the performance obligation.
The Company recognizes revenue primarily from sales of alcohols and essential ingredients.
The Company has five production facilities from which it produces and
sells alcohols to its customers through Kinergy. Kinergy enters into back-to-back sales contracts with its customers under exclusive intercompany
sales agreements with each of the Company’s five production facilities. Kinergy also acts as a principal when it purchases third
party fuel-grade ethanol which it resells to its customers. Finally, for the year ended December 31, 2022, Kinergy had exclusive sales
agreements with certain third-party owned fuel-grade ethanol production facilities under which it sold the facilities’ fuel-grade
ethanol for a fee plus the costs to deliver the ethanol to Kinergy’s customers. These sales were referred to as third-party agent
sales. Revenue from these third-party agent sales was recorded on a net basis, with Kinergy recognizing its predetermined fees and any
associated delivery costs. Kinergy has terminated these contracts, and as a result, did not have any related sales for the year ended
December 31, 2024 and 2023. The Company’s balances of accounts receivable, net of allowance for credit losses, were $
The Company has five production facilities from which it produces and sells essential ingredients to its customers through Alto Nutrients. Alto Nutrients enters into sales contracts with essential ingredient customers under exclusive intercompany sales agreements with each of the Company’s five production facilities.
The Company recognizes revenue from sales of alcohols and essential ingredients at the point in time when the customer obtains control of the products, which typically occurs upon delivery depending on the terms of the underlying contracts. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of alcohols or essential ingredients over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligations.
F-14
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
When the Company is the agent, the supplier controls the products before they are transferred to the customer because the supplier is primarily responsible for fulfilling the promise to provide the product, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product. When the Company is the principal, the Company controls the products before they are transferred to the customer because the Company is primarily responsible for fulfilling the promise to provide the products, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product.
See the tables in Note 4 for the Company’s revenue by type of contracts.
Shipping and Handling Costs – The Company accounts for shipping and handling costs relating to contracts with customers as costs to fulfill its promise to transfer its products. Accordingly, the costs are classified as a component of cost of goods sold in the accompanying consolidated statements of operations.
Selling Costs – Selling costs associated with the Company’s product sales are classified as a component of selling, general and administrative expenses in the accompanying consolidated statements of operations.
Stock-Based Compensation – The Company accounts for the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award, determined on the date of grant. The expense is recognized over the period during which an employee is required to provide services in exchange for the award. The Company accounts for forfeitures as they occur. The Company recognizes stock-based compensation expense as a component of either cost of goods sold or selling, general and administrative expenses in the consolidated statements of operations.
Goodwill – Goodwill represents the excess of cost of an acquired entity over the net of the amounts assigned to net assets acquired and liabilities assumed. Annually, or more frequently, if indications of impairment arise, the Company performs a review for impairment. This review includes the determination of each reporting unit’s fair value using market multiples and discounted cash flow modeling. The estimates of future cash flows are judgments based on management’s experience and knowledge of the Company’s operations and the industries in which the Company operates. These estimates can be significantly affected by future changes in market conditions, the economic environment, including inflation, and capital spending decisions of the Company’s customers. Any assessed impairments will be permanent and expensed in the period in which the impairment is determined. If the Company determines through its assessment process that any of its goodwill requires impairment charges, the charges will be recorded in asset impairment expenses in the consolidated statements of operations.
The Company performed its annual review of impairment of goodwill and
recognized an asset impairment loss of $
Impairment of Long-Lived Assets
– The Company assesses the impairment of long-lived assets, including property and equipment, internally developed software and
purchased intangibles subject to amortization, when events or changes in circumstances indicate that the fair value of assets could be
less than their net book value. In such event, the Company assesses long-lived assets for impairment by first determining the forecasted,
undiscounted cash flows the asset group is expected to generate plus the net proceeds expected from the sale of the asset group. If this
amount is less than the carrying value of the asset, the Company will then determine the fair value of the asset group. When the estimated
fair value of the asset group is less than its carrying value, the Company recognizes an impairment expense equal to the difference between
the asset group’s carrying value and estimated fair value. Forecasts of future cash flows are judgments based on the Company’s
experience and knowledge of its operations and the industries in which it operates. These forecasts could be significantly affected by
future changes in market conditions, the economic environment, including inflation, and purchasing decisions of the Company’s customers.
The Company’s assessment resulted in an asset impairment of $
F-15
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Deferred Financing Costs – Deferred financing costs
are costs incurred to obtain debt financing, including all related fees, and are amortized as interest expense over the term of the related
financing using the straight-line method, which approximates the effective interest rate method. Amortization of deferred financing costs,
included in interest expense, net, in the accompanying consolidated statements of operations, was approximately $
Provision for Income Taxes – Income taxes are accounted for under the asset and liability approach, where deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.
The Company accounts for uncertainty in income taxes using a two-step
approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining
whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation
processes, if any. The second step is to measure the tax benefit as the largest amount which is more than
The Company files a consolidated federal income tax return. This return
includes all wholly owned subsidiaries as well as the Company’s pro-rata share of taxable income from pass-through entities in which
the Company owns less than
Loss Per Share – Basic loss per share is computed on the basis of the weighted-average number of shares of common stock outstanding during the period. Preferred dividends are deducted from net loss attributed to Alto Ingredients, Inc. and are considered in the calculation of loss attributable to common stockholders in computing basic loss per share. Common stock equivalents to preferred stock are considered participating securities and are also included in this calculation when dilutive.
The following tables compute basic and diluted loss per share (in thousands, except per share data):
| Year Ended December 31, 2024 | ||||||||||||
| Loss Numerator | Shares Denominator | Per-Share Amount | ||||||||||
| Consolidated net loss | $ | ( | ) | |||||||||
| Less: Preferred stock dividends | ( | ) | ||||||||||
| Basic and diluted loss per share: | ||||||||||||
| Loss attributable to common stockholders | $ | ( | ) | $ | ( | ) | ||||||
| Year Ended December 31, 2023 | ||||||||||||
| Loss Numerator | Shares Denominator | Per-Share Amount | ||||||||||
| Consolidated net loss | $ | ( | ) | |||||||||
| Less: Preferred stock dividends | ( | ) | ||||||||||
| Basic and diluted loss per share: | ||||||||||||
| Loss attributable to common stockholders | $ | ( | ) | $ | ( | ) | ||||||
| Year Ended December 31, 2022 | ||||||||||||
| Loss Numerator | Shares Denominator | Per-Share Amount | ||||||||||
| Consolidated net loss | $ | ( | ) | |||||||||
| Less: Preferred stock dividends | ( | ) | ||||||||||
| Basic and diluted loss per share: | ||||||||||||
| Loss attributable to common stockholders | $ | ( | ) | $ | ( | ) | ||||||
F-16
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
There were an aggregate of
Financial Instruments – The carrying values of cash and cash equivalents, restricted cash, accounts receivable, derivative instruments, accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these items. The Company believes the carrying value of its long-term debt instruments are not considered materially different than fair value.
Business Combinations – Business acquisitions are accounted for in accordance with ASC Section 805, Business Combinations. ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired and liabilities assumed and recognize and measure goodwill or a gain from the purchase. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months).
Income from Cash Grant – For the years ended
December 31, 2023 and 2022, the Company received $
Employment-related Benefits – Employment-related benefits associated with pensions and postretirement health care are expensed based on actuarial analysis. The recognition of expense is affected by estimates made by management, such as discount rates used to value certain liabilities, investment rates of return on plan assets, increases in future wage amounts and future health care costs. Discount rates are determined based on a spot yield curve that includes bonds with maturities that match the expected timing of benefit payments under the plan.
Share Repurchase Program – On September 12,
2022, the Company announced a share repurchase program under which it may repurchase up to $
Nonvoting Common Stock – In 2015, the Company issued
nonvoting common stock convertible at a holder’s election into voting common stock. As of December 31, 2024, an aggregate of
F-17
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Estimates and Assumptions – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are required as part of determining net realizable value of inventory, long-lived asset impairments, goodwill impairment, valuation allowances on deferred income taxes and the potential outcome of future tax consequences of events recognized in the Company’s financial statements or tax returns, and the valuation of assets acquired and liabilities assumed as a result of business combinations. Actual results and outcomes may materially differ from management’s estimates and assumptions.
Recent Accounting Pronouncements – In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which provides for more detailed information about the types of expenses aggregated in common expense captions in the statement of operations. ASU 2024-03 is effective for the Company for the year ended December 31, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU.
Subsequent Events – Management evaluates, as of each reporting period, events or transactions that occur after the balance sheet date through the date that the financial statements are issued for either disclosure or adjustment to the consolidated financial results. See Note 16.
2. ACQUISITION OF EAGLE ALCOHOL.
On January 14, 2022, the Company purchased
Eagle Alcohol specializes in break bulk distribution of specialty alcohols. Eagle Alcohol delivers products to customers in the beverage, food, industrial and related-process industries via its own dedicated trucking fleet and common carriers.
As part of the Company’s original allocation of purchase price
for its acquisition of Eagle Alcohol, the Company recorded a customer relationships intangible asset of $
F-18
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. INTERCOMPANY AGREEMENTS.
The Company, directly or through one of its subsidiaries, has entered into the following management and marketing agreements:
Affiliate Management Agreement – Alto Ingredients entered into an Affiliate Management Agreement (“AMA”) with its operating subsidiaries under which Alto Ingredients agreed to provide operational, administrative and staff support services. These services generally include, but are not limited to, administering the subsidiaries’ compliance with their credit agreements and performing billing, collection, record keeping and other administrative and ministerial tasks. Alto Ingredients agreed to supply all labor and personnel required to perform its services under the AMA, including the labor and personnel required to operate and maintain the production facilities and marketing activities. These services are billed at a predetermined amount per subsidiary each month plus out of pocket costs such as employee wages and benefits.
The AMAs had an initial term of one year and have automatic successive one year renewal periods. Alto Ingredients may terminate the AMA, and any subsidiary may terminate the AMA, at any time by providing at least 90 days prior notice of termination.
Alto Ingredients recorded revenues of approximately
$
Ethanol Marketing Agreements –
Kinergy entered into separate marketing agreements with each of the Company’s production facilities which granted Kinergy the exclusive
right to purchase, market and sell the alcohols produced at those facilities.
Kinergy recorded revenues of approximately $
Corn Procurement and Handling Agreements – Alto Nutrients entered into separate corn procurement and handling agreements with each of the Company’s production facilities. Under the terms of the corn procurement and handling agreements, each facility appointed Alto Nutrients as its exclusive agent to solicit, negotiate, enter into and administer, on its behalf, corn supply arrangements to procure the corn necessary to operate the facility. Alto Nutrients also provides grain handling services including, but not limited to, receiving, unloading and conveying corn into the facility’s storage and, in the case of whole corn delivered, processing and hammering the whole corn.
Under these agreements, Alto Nutrients receives a
fee of $
F-19
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Essential Ingredients Marketing Agreements
– Alto Nutrients entered into separate marketing agreements with each of the Company’s production facilities (except for the
Company’s Magic Valley facility), which grant Alto Nutrients the exclusive right to market, purchase and sell the various essential
ingredients produced at each facility.
Alto Nutrients recorded revenues of approximately
$
| 4. | SEGMENTS. |
The Company reports its financial and operating
performance in
The Company manages and assesses the performance of its reportable segments by its gross profit (loss). As part of the Executive Committee’s review of segment-level performance, each member of the Executive Committee reviews the gross profit of the Company’s reportable segments and provides expertise and analysis from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the Executive Committee.
Included in income (loss) before provision for income taxes are management
fees charged by Alto Ingredients to each of the segments. The Pekin Campus production segment incurred $
During the normal course of business, the segments do business with each other. The preponderance of this activity occurs when the Company’s marketing and distribution segment markets alcohol produced by the production segments for a marketing fee, as discussed in Note 3. These intersegment activities are considered arms’-length transactions. Consequently, although these transactions impact segment performance, they do not impact the Company’s consolidated results since all revenues and corresponding costs are eliminated upon consolidation.
For the years ended December 31, 2024, 2023 and 2022, capital expenditures
incurred by the Pekin Campus segment were approximately $
F-20
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables set forth certain financial data for the Company’s operating segments (in thousands):
| Years Ended December 31, | ||||||||||||
| Net Sales | 2024 | 2023 | 2022 | |||||||||
| Pekin Campus production, recorded as gross: | ||||||||||||
| Alcohol sales | $ | $ | $ | |||||||||
| Essential ingredient sales | ||||||||||||
| Intersegment sales | ||||||||||||
| Total Pekin Campus sales | ||||||||||||
| Marketing and distribution: | ||||||||||||
| Alcohol sales, gross | $ | $ | $ | |||||||||
| Alcohol sales, net | ||||||||||||
| Intersegment sales | ||||||||||||
| Total marketing and distribution sales | ||||||||||||
| Western Production, recorded as gross: | ||||||||||||
| Alcohol sales | $ | $ | $ | |||||||||
| Essential ingredient sales | ||||||||||||
| Intersegment sales | ( | ) | ||||||||||
| Total Western production sales | ||||||||||||
| Corporate and other | ||||||||||||
| Intersegment eliminations | ( | ) | ( | ) | ( | ) | ||||||
| Net sales as reported | $ | $ | $ | |||||||||
| Cost of goods sold: | ||||||||||||
| Pekin Campus production | $ | $ | $ | |||||||||
| Marketing and distribution | ||||||||||||
| Western production | ||||||||||||
| Corporate and other | ||||||||||||
| Intersegment eliminations | ( | ) | ( | ) | ( | ) | ||||||
| Cost of goods sold as reported | $ | $ | $ | |||||||||
| Gross profit (loss): | ||||||||||||
| Pekin Campus production | $ | $ | $ | ( | ) | |||||||
| Marketing and distribution | ||||||||||||
| Western production | ( | ) | ( | ) | ( | ) | ||||||
| Corporate and other | ( | ) | ||||||||||
| Intersegment eliminations | ( | ) | ( | ) | ( | ) | ||||||
| $ | $ | $ | ( | ) | ||||||||
| Income (loss) before provision for income taxes: | ||||||||||||
| Pekin Campus production | $ | $ | ( | ) | $ | ( | ) | |||||
| Marketing and distribution | ||||||||||||
| Western production | ( | ) | ( | ) | ( | ) | ||||||
| Corporate and other | ( | ) | ( | ) | ( | ) | ||||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Asset impairments: | ||||||||||||
| Western production | $ | $ | $ | |||||||||
| Corporate and other | ||||||||||||
| $ | $ | $ | ||||||||||
| Depreciation and amortization expense: | ||||||||||||
| Pekin Campus production | $ | $ | $ | |||||||||
| Western production | ||||||||||||
| Corporate and other | ||||||||||||
| $ | $ | $ | ||||||||||
| Interest expense, net of capitalized interest: | ||||||||||||
| Pekin Campus production | $ | $ | ( | ) | $ | ( | ) | |||||
| Marketing and distribution | ||||||||||||
| Western production | ( | ) | ||||||||||
| Corporate and other | ||||||||||||
| $ | $ | $ | ||||||||||
F-21
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table sets forth the Company’s total assets by operating segment (in thousands):
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total assets: | ||||||||
| Pekin Campus production | $ | |||||||
| Marketing and distribution | ||||||||
| Western production | ||||||||
| Corporate and other | ||||||||
| $ | $ | |||||||
5. PROPERTY AND EQUIPMENT.
Property and equipment consisted of the following (in thousands):
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Facilities and plant equipment | $ | $ | ||||||
| Land | ||||||||
| Other equipment, vehicles and furniture | ||||||||
| Construction in progress | ||||||||
| Accumulated depreciation | ( | ) | ( | ) | ||||
| $ | $ | |||||||
Depreciation expense was $
The Company’s property and equipment are substantially pledged as collateral under the Company’s Term Loan.
F-22
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. INTANGIBLE ASSETS.
Intangible assets, including goodwill, consisted of the following (in thousands):
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||
| Useful Life (Years) | Gross | Accumulated Amortization/ Impairment | Net Book Value | Gross | Accumulated Amortization/ Impairment | Net Book Value | ||||||||||||||||||||||
| Non-Amortizing: | ||||||||||||||||||||||||||||
| Goodwill | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
| Kinergy tradename | ||||||||||||||||||||||||||||
| Amortizing: | ||||||||||||||||||||||||||||
| Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||||||
| Eagle Alcohol tradename | ( | ) | ( | ) | ||||||||||||||||||||||||
| Total goodwill and intangible assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
Goodwill – The Company recorded goodwill of $
Kinergy Tradename – The Company recorded tradename
of $
Customer Relationships – The Company recorded customer
relationships of $
Eagle Alcohol Tradename – The Company recorded
tradename of $
Amortization expense associated with intangible assets totaled $
The expected amortization expense relating to amortizable intangible assets in each of the five years after December 31, 2024 are (in thousands):
| Years Ended December 31, | Amount | |||
| 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| Total | $ | |||
F-23
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. DERIVATIVES.
The business and activities of the Company expose it to a variety of market risks, including risks related to changes in commodity prices. The Company monitors and manages these financial exposures as an integral part of its risk management program. This program recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effects that market volatility could have on operating results.
Commodity Risk – Cash Flow Hedges – The Company uses derivative instruments to protect cash flows from fluctuations caused by volatility in commodity prices for periods of up to twelve months in order to protect gross profit margins from potentially adverse effects of market and price volatility on alcohol sales and purchase commitments where the prices are set at a future date and/or if the contracts specify a floating or index-based price. In addition, the Company hedges anticipated sales of alcohol to minimize its exposure to the potentially adverse effects of price volatility. These derivatives may be designated and documented as cash flow hedges and effectiveness is evaluated by assessing the probability of the anticipated transactions and regressing commodity futures prices against the Company’s purchase and sales prices. Ineffectiveness, which is defined as the degree to which the derivative does not offset the underlying exposure, is recognized immediately in cost of goods sold. For the years ended December 31, 2024, 2023 and 2022, the Company did not designate any of its derivatives as cash flow hedges.
Commodity Risk – Non-Designated Hedges –
The Company uses derivative instruments to lock in prices for certain amounts of corn and alcohols by entering into exchange-traded futures
contracts or options for those commodities. These derivatives are not designated for hedge accounting treatment. The changes in fair value
of these contracts are recorded on the balance sheet and recognized immediately in cost of goods sold. The Company recognized net gains
of $
Non-Designated Derivative Instruments –
| As of December 31, 2024 | ||||||||||||
| Assets | Liabilities | |||||||||||
| Type of Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
| Cash collateral balance | Restricted cash | $ | ||||||||||
| Commodity contracts | Derivative instruments | $ | Derivative instruments | $ | ||||||||
| As of December 31, 2024 | ||||||||||||
| Assets | Liabilities | |||||||||||
| Type of Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
| Cash collateral balance | Restricted cash | $ | ||||||||||
| Commodity contracts | Derivative instruments | $ | Derivative instruments | $ | ||||||||
The above amounts represent the gross balances of the contracts; however, the Company does have a right of offset with each of its derivative brokers, but the Company’s intent is to close out positions individually, therefore the positions are reported at gross.
F-24
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The classification and amounts of the Company’s recognized gains (losses) for its derivatives not designated as hedging instruments are as follows (in thousands):
| Realized Gains (Losses) | ||||||||||||||
| For the Years Ended December 31, | ||||||||||||||
| Type of Instrument | Statements of Operations Location | 2024 | 2023 | 2022 | ||||||||||
| Commodity contracts | Cost of goods sold | $ | ( | ) | $ | $ | ||||||||
| $ | ( | ) | $ | $ | ||||||||||
| Unrealized Gains (Losses) | ||||||||||||||
| For the Years Ended December 31, | ||||||||||||||
| Type of Instrument | Statements of Operations Location | 2024 | 2023 | 2022 | ||||||||||
| Commodity contracts | Cost of goods sold | $ | $ | ( | ) | $ | ( | ) | ||||||
| $ | $ | ( | ) | $ | ( | ) | ||||||||
8. DEBT.
Long-term borrowings are summarized as follows (in thousands):
| December 31, 2024 | December 31, 2023 | |||||||
| Kinergy line of credit | $ | $ | ||||||
| Orion term loan | ||||||||
| Less unamortized debt discount | ( | ) | ( | ) | ||||
| Less unamortized debt financing costs | ( | ) | ( | ) | ||||
| Less current portion | ||||||||
| Long-term debt | $ | $ | ||||||
Kinergy Line of Credit – Kinergy
has an operating line of credit for an aggregate amount of up to $
If the monthly excess borrowing availability of Kinergy and Alto Nutrients
falls below certain thresholds, they are collectively required to maintain a fixed-charge coverage ratio (calculated as a twelve-month
rolling earnings before interest, taxes, depreciation and amortization divided by the sum of interest expense, capital expenditures, principal
payments of indebtedness, indebtedness from capital leases and taxes paid during such twelve-month rolling period) of at least
F-25
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The obligations of Kinergy and Alto Nutrients under
the credit facility are secured by first-priority security interests in all of their assets in favor of the lender. Alto Ingredients has
guaranteed all of Kinergy’s obligations under the line of credit. As of December 31, 2024, Kinergy had $
Orion Term Loan – On November 7, 2022, the Company
entered into a credit agreement with certain funds managed by Orion Infrastructure Capital (collectively, the “Lenders”),
and OIC Investment Agent, LLC, as administrative agent and collateral agent (“OIC”), under which the Lenders agreed to extend
a senior secured credit facility in the amount of up to $
The Lenders agreed to advance to the Company up to $
On November 23, 2022, the Company received its initial funding of $
As of December 31, 2024, interest accrued on the unpaid principal amount
of the Term Loan at a fixed rate of
The Company must prepay amounts outstanding under the Term Loan on
a semi-annual basis beginning with the six-month period ended December 31, 2023 in an amount equal to a percentage of the Company’s
excess cash flow based on a specified leverage ratio, as follows: (i) if the leverage ratio is greater than or equal to 3.0x, then the
mandatory prepayment amount will equal
The terms and conditions of the Term Loan also contain customary and other representations, warranties, covenants and obligations, including events of default, and other terms and conditions.
Registration Rights Agreement - On November 7, 2022, the Company entered into a registration rights agreement with the Lenders and agreed to register for resale with the Securities and Exchange Commission the shares of common stock issued to the Lenders under the Term Loan. The related registration statement has been declared effective by the Securities and Exchange Commission.
Maturities of Long-term Debt –
| December 31: | ||||
| 2027 | $ | |||
| 2028 | ||||
| $ | ||||
F-26
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. LEASES.
The Company leases equipment and land for certain of its facilities.
Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over
the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount
rate for each lease in determining the present value of lease payments. For the years ended December 31, 2024 and 2023, the Company’s
weighted-average discount rate was approximately
Upon the adoption of ASC 842, the Company elected the following practical expedients allowable under the guidance: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases; not to separately identify lease and non-lease components; and not to evaluate historical land easements. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to only long-term (greater than 1 year) leases.
The Company determines if an arrangement is a lease or contains a lease
at inception. The Company’s leases have remaining lease terms of approximately
Leases consist of the following (in thousands):
| Classification | December 31, | |||||||||
| Assets | 2024 | 2023 | ||||||||
| Operating | $ | $ | ||||||||
| Liabilites | ||||||||||
| Operating - Current | $ | $ | ||||||||
| Operating - Noncurrent | $ | $ | ||||||||
The Components of lease costs were as follows (in thousands):
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Fixed lease cost | $ | $ | $ | |||||||||
| Variable lease cost | ||||||||||||
| Net lease cost | $ | $ | $ | |||||||||
F-27
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the remaining maturities of the Company’s operating lease liabilities, assuming all land lease extensions are taken, as of December 31, 2024 (in thousands):
| Year Ended: | Equipment | Land Related | ||||||
| 2025 | $ | $ | ||||||
| 2026 | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030-76 | ||||||||
| Less interest | ( |
) | ( |
) | ||||
| $ | $ | |||||||
10. PENSION PLANS.
Retirement Plan - The Company sponsors a defined benefit pension plan (the “Retirement Plan”) that is noncontributory, and covers only “grandfathered” unionized employees at its Alto Pekin production facilities. Benefits are based on a prescribed formula based upon the employee’s years of service. Employees hired after November 1, 2010, are not eligible to participate in the Retirement Plan. The Company uses a December 31st measurement date for its Retirement Plan. The Company’s funding policy is to make the minimum annual contribution required by applicable regulations.
Information related to the Retirement Plan as of and for the years ended December 31, 2024 and 2023 is presented below (dollars in thousands):
| 2024 | 2023 | |||||||
| Changes in plan assets: | ||||||||
| Fair value of plan assets, beginning | $ | $ | ||||||
| Actual gains | ||||||||
| Benefits paid | ( | ) | ( | ) | ||||
| Company contributions | ||||||||
| Participant contributions | ||||||||
| Fair value of plan assets, ending | $ | $ | ||||||
| Less: projected accumulated benefit obligation | $ | $ | ||||||
| Funded status, overfunded (underfunded) | $ | $ | ( | ) | ||||
| Amounts recognized in the consolidated balance sheets: | ||||||||
| Other assets | $ | $ | ||||||
| Other liabilities | $ | $ | ( | ) | ||||
| Accumulated other comprehensive income | $ | ( | ) | $ | ( | ) | ||
| Assumptions used in computation of benefit obligations: | ||||||||
| Discount rate | % | % | ||||||
| Expected long-term return on plan assets | % | % | ||||||
| Rate of compensation increase | ||||||||
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Components of net periodic benefit costs are as follows: | ||||||||||||
| Service cost | $ | $ | $ | |||||||||
| Interest cost | ||||||||||||
| Expected return on plan assets | ( | ) | ( | ) | ( | ) | ||||||
| Net periodic cost (benefit) | $ | $ | $ | ( | ) | |||||||
F-28
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company does not expect to make any contributions
in the year ending December 31, 2025. Net periodic benefit for 2025 is estimated to be approximately $
The following table summarizes the expected benefit payments for the Company’s Retirement Plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands):
| December 31: | ||||
| 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030-34 | ||||
| $ | ||||
See Note 15 for discussion of the Retirement Plan’s fair value disclosures.
Historical and future expected returns of multiple asset classes were analyzed to develop a risk-free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk-free real rate of return, and the associated risk premium. A weighted-average rate was developed based on those overall rates and the target asset allocation of the Retirement Plan.
The Company’s pension committee is responsible
for overseeing the investment of pension plan assets. The pension committee is responsible for determining and monitoring the appropriate
asset allocations and for selecting or replacing investment managers, trustees, and custodians. The Retirement Plan’s current investment
target allocations are
Postretirement Plan - The Company also sponsors a health care plan and life insurance plan (the “Postretirement Plan”) that provides postretirement medical benefits and life insurance to certain “grandfathered” unionized employees at its Alto Pekin production facilities. Employees hired after December 31, 2000, are not eligible to participate in the Postretirement Plan. The plan is contributory, with contributions required at the same rate as active employees. Benefit eligibility under the plan reduces at age 65 from a defined benefit to a defined dollar cap based upon years of service.
Information related to the Postretirement Plan as of December 31, 2024 and 2023 is presented below (dollars in thousands):
| 2024 | 2023 | |||||||
| Amounts at the end of the year: | ||||||||
| Accumulated/projected benefit obligation | $ | $ | ||||||
| Fair value of plan assets | ||||||||
| Funded status, underfunded | $ | ( | ) | $ | ( | ) | ||
| Amounts recognized in the consolidated balance sheets: | ||||||||
| Accrued liabilities | $ | ( | ) | $ | ( | ) | ||
| Other liabilities | $ | ( | ) | $ | ( | ) | ||
| Accumulated other comprehensive income | $ | ( | ) | $ | ( | ) | ||
| Discount rate used in computation of benefit obligations | % | % | ||||||
F-29
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Components of net periodic benefit costs are as follows: | ||||||||||||
| Service cost | $ | $ | $ | |||||||||
| Interest cost | ||||||||||||
| Amortization of prior service cost | ( | ) | ||||||||||
| Net periodic benefit cost | $ | $ | $ | |||||||||
| Amounts recognized in the plan for the year: | ||||||||||||
| Participant contributions | $ | $ | $ | |||||||||
| Benefits paid | $ | $ | $ | |||||||||
The Company does not expect to recognize any amortization of net actuarial loss during the year ended December 31, 2025.
The following table summarizes the expected benefit payments for the Company’s Postretirement Plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands):
| December 31: | ||||
| 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030-2034 | ||||
| $ | ||||
For purposes of determining the cost and obligation
for pre-Medicare postretirement medical benefits, a
11. INCOME TAXES.
The Company recorded a provision for income taxes as follows (in thousands):
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Current provision | $ | $ | $ | |||||||||
| Deferred provision | ||||||||||||
| Total | $ | $ | $ | |||||||||
F-30
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows:
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Statutory rate | % | % | % | |||||||||
| State income taxes, net of federal benefit | ||||||||||||
| Change in valuation allowance | ( | ) | ( | ) | ( | ) | ||||||
| Stock-based compensation | ( | ) | ( | ) | ||||||||
| Non-deductible items | ( | ) | ( | ) | ||||||||
| Other | ( | ) | ||||||||||
| Effective rate | ( | )% | ( | )% | ( | )% | ||||||
Deferred income taxes are provided using the asset and liability method to reflect temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates and laws. The components of deferred income taxes included in the consolidated balance sheets were as follows (in thousands):
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Deferred tax assets: | ||||||||
| Net operating loss carryforwards | $ | $ | ||||||
| Capital loss | ||||||||
| Disallowed interest | ||||||||
| R&D, Energy and AMT credits | ||||||||
| Derivatives | ||||||||
| Intangibles | ||||||||
| Pension liability | ||||||||
| Railcar contracts | ||||||||
| Stock-based compensation | ||||||||
| Allowance for credit losses and other assets | ||||||||
| Other | ||||||||
| Total gross deferred tax assets | ||||||||
| Less: valuation allowance | ( | ) | ( | ) | ||||
| Total deferred tax assets, net of valuation allowance | ||||||||
| Deferred tax liabilities: | ||||||||
| Property and equipment | ( | ) | ( | ) | ||||
| Derivatives | ( | ) | ||||||
| Other | ( | ) | ( | ) | ||||
| Total deferred tax liabilities | ( | ) | ( | ) | ||||
| Net deferred tax liabilities, included in other liabilities | $ | ( | ) | $ | ( | ) | ||
F-31
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A portion of the Company’s net operating loss carryforwards are
subject to provisions of the tax law that limit the use of losses incurred by a corporation prior to the date certain ownership changes
occur. These limitations also apply to certain depreciation deductions associated with assets on hand at the time of the ownership change
and otherwise allowable during the five-year period following the ownership change. As the five-year limitation period lapsed in 2019,
these disallowed deductions are reflected in property and equipment in the schedule above but continue to be subject to the annual limitation
that applies to the pre-change net operating losses. Due to the limitation on the use of net operating losses and depreciation deductions,
a significant portion of these carryforwards will expire regardless of whether the Company generates future taxable income. After reducing
these net operating loss carryforwards for the amount which will expire due to this limitation, the Company had remaining federal net
operating loss carryforwards of approximately $
| Tax Years | Federal | State | ||||||
| 2025–2029 | $ | $ | ||||||
| 2030–2034 | ||||||||
| 2035–2039 | ||||||||
| 2040 and after* | ||||||||
| Total NOLs | $ | $ | ||||||
| * |
Approximately $
To the extent amounts are not utilized in any year, they may be carried forward to the next year until expiration. These amounts may change if there are future additional limitations on their utilization.
Federal capital loss of $
In assessing whether the deferred tax assets are realizable, a more likely than not standard is applied. If it is determined that it is more likely than not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.
A valuation allowance was established in the amount of $
F-32
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024, the Company recorded an increase
in valuation allowance of $
Unrecognized Tax Benefits
A reconciliation of the beginning balance and the ending balance of gross unrecognized tax benefits, before interest and penalties, for the period presented is as follows (in thousands):
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Unrecognized tax benefits at beginning of year | $ | $ | ||||||
| Increases related to current year tax positions | ||||||||
| Decreases related to current year tax positions | ||||||||
| Increases related to prior year tax positions | ||||||||
| Decreases related to prior year tax positions | ||||||||
| Decreases related to expiration of prior year tax positions | ||||||||
| Decreases related to settlements of prior year tax positions | ||||||||
| Unrecognized tax benefits at end of year | $ | $ | ||||||
The Company recorded unrecognized tax benefits for
uncertain tax positions of approximately $
The Company recognizes interest and penalties related
to income tax matters as a component of interest expense and other income, net, respectively. As of December 31, 2024, the Company accrued
penalties of $
F-33
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company is subject to income tax in the United States federal jurisdiction and various state jurisdictions and has identified its federal tax return and tax returns in state jurisdictions below as “major” tax filings. These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows:
| Jurisdiction | Tax Years | |
| Federal | ||
| Alabama | ||
| Arizona | ||
| Arkansas | ||
| California | ||
| Colorado | ||
| Connecticut | ||
| Georgia | ||
| Idaho | ||
| Illinois | ||
| Indiana | ||
| Iowa | ||
| Kansas | ||
| Louisiana | ||
| Michigan | ||
| Minnesota | ||
| Mississippi | ||
| Missouri | ||
| Nebraska | ||
| New Mexico | ||
| Oklahoma | ||
| Oregon | ||
| Pennsylvania | ||
| Rhode Island | ||
| South Carolina | ||
| Tennessee | ||
| Texas |
However, because the Company had net operating losses and credits carried forward in several of the jurisdictions, including the United States federal and California jurisdictions, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax attributes carried forward to open years.
12. PREFERRED STOCK.
The Company has
Series A Preferred Stock – The Company has authorized
F-34
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Upon any issuance, the Series A Preferred Stock would rank senior
in liquidation and dividend preferences to the Company’s common stock. Holders of Series A Preferred Stock would be entitled to
quarterly cumulative dividends payable in arrears in cash in an amount equal to
The holders of Series A Preferred Stock would have a liquidation preference over the holders of the Company’s common stock equivalent to the purchase price per share of the Series A Preferred Stock plus any accrued and unpaid dividends on the Series A Preferred Stock. A liquidation would be deemed to occur upon the happening of customary events, including transfer of all or substantially all of the Company’s capital stock or assets or a merger, consolidation, share exchange, reorganization or other transaction or series of related transactions, unless holders of 66 2/3% of the Series A Preferred Stock vote affirmatively in favor of or otherwise consent to such transaction.
Series B Preferred Stock – The Company has authorized
The Series B Preferred Stock ranks senior in liquidation
and dividend preferences to the Company’s common stock. Holders of Series B Preferred Stock are entitled to quarterly cumulative
dividends payable in arrears in cash in an amount equal to
As of December 31, 2024, the Series B Preferred
Stock was convertible into
F-35
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The holders of Series B Preferred Stock vote together
as a single class with the holders of the Company’s common stock on all actions to be taken by the Company’s stockholders.
Each share of Series B Preferred Stock entitles the holder to approximately
In 2008, the Company entered into Letter Agreements with Lyles United LLC (“Lyles United”) and other purchasers under which the Company expressly waived its rights under the Certificate of Designations relating to the Series B Preferred Stock to make dividend payments in additional shares of Series B Preferred Stock in lieu of cash dividend payments without the prior written consent of Lyles United and the other purchasers.
Registration Rights Agreement –
In connection with the sale of its Series B Preferred Stock, the Company entered into a registration rights agreement with Lyles United.
The registration rights agreement is effective until the holders of the Series B Preferred Stock, and their affiliates, as a group, own
less than 10% for each of the series issued, including common stock into which such Series B Preferred Stock has been converted. The
registration rights agreement provides that holders of a majority of the Series B Preferred Stock, including common stock into which
such Series B Preferred Stock has been converted, may demand and cause the Company to register on their behalf the shares of common stock
issued, issuable or that may be issuable upon conversion of the Preferred Stock and as payment of dividends thereon, and upon exercise
of the related warrants (collectively, the “Registrable Securities”). The Company is required to keep such registration statement
effective until such time as all of the Registrable Securities are sold or until such holders may avail themselves of Rule 144 for sales
of Registrable Securities without registration under the Securities Act of 1933, as amended. The holders are entitled to two demand registrations
on Form S-1 and unlimited demand registrations on Form S-3; provided, however, that the Company is not obligated to effect more than
one demand registration on Form S-3 in any calendar year. In addition to the demand registration rights afforded the holders under the
registration rights agreement, the holders are entitled to unlimited “piggyback” registration rights. These rights entitle
the holders who so elect to be included in registration statements to be filed by the Company with respect to other registrations of
equity securities. The Company is responsible for all costs of registration, plus reasonable fees of one legal counsel for the holders,
which fees are not to exceed $
F-36
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
13. STOCK-BASED COMPENSATION.
On June 16, 2016, the Company’s shareholders approved the 2016
Stock Incentive Plan, which authorizes the issuance of incentive stock options and non-qualified stock options, restricted stock, restricted
stock units, stock appreciation rights, direct stock issuances and other stock-based awards to the Company’s officers, directors
or key employees or to consultants that do business with the Company initially for up to an aggregate of
Restricted Stock – A summary of unvested restricted stock activity is as follows (shares in thousands):
| Number of Shares | Weighted- Average Grant Date Fair Value Per Share | |||||||
| Unvested at December 31, 2022 | $ | |||||||
| Issued | $ | |||||||
| Vested | ( | ) | $ | |||||
| Canceled | ( | ) | $ | |||||
| Unvested at December 31, 2023 | $ | |||||||
| Issued | $ | |||||||
| Vested | ( | ) | $ | |||||
| Canceled | ( | ) | $ | |||||
| Unvested at December 31, 2024 | $ | |||||||
The fair value of the common stock at vesting aggregated $
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Employees | $ | $ | $ | |||||||||
| Non-employees | ||||||||||||
| Total stock-based compensation expense | $ | $ | $ | |||||||||
Employee grants typically have a two or three-year vesting schedule,
while non-employee grants have a one-year vesting schedule. At December 31, 2024, the total compensation expense related to unvested
awards which had not been recognized was $
F-37
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. COMMITMENTS AND CONTINGENCIES.
Commitments – The following is a description of significant commitments at December 31, 2024:
Sales Commitments – At December 31, 2024, the
Company had entered into sales contracts with its major customers to sell certain quantities of alcohol and essential ingredients. The
Company had open alcohol indexed-price contracts for
Purchase Commitments – At December 31, 2024, the
Company had indexed-price purchase contracts to purchase
Contingencies – The following is a description of significant contingencies at December 31, 2024:
Litigation – The Company is subject to various claims and contingencies in the ordinary course of its business, including those related to litigation, business transactions, employee-related matters, and others. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible, and the amount involved could be material. While the Company can provide no assurances, the Company does not expect that any of its pending legal proceedings will have a material financial impact on the Company’s operating results.
| 15. | FAIR VALUE MEASUREMENTS. |
The fair value hierarchy prioritizes the inputs used in valuation techniques into three levels, as follows:
| ● | Level 1 – Observable inputs – unadjusted quoted prices in active markets for identical assets and liabilities; |
| ● | Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data; and |
| ● | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable. For fair value measurements using significant unobservable inputs, a description of the inputs and the information used to develop the inputs is required along with a reconciliation of Level 3 values from the prior reporting period. |
F-38
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Pooled Separate Accounts – Pooled separate accounts invest primarily in domestic and international stocks, commercial paper or single mutual funds. The net asset value is used as a practical expedient to determine fair value for these accounts. Each pooled separate account provides for redemptions by the Retirement Plan at reported net asset values per share, with little to no advance notice requirement, therefore these funds are classified within Level 2 of the valuation hierarchy.
Derivative Instruments – The Company’s derivative instruments consist of commodity positions. The fair values of the commodity positions are based on quoted prices on the commodity exchanges and are designated as Level 1 inputs.
Long-Lived Assets – Long-lived assets consist of the Company’s estimated fair value associated with its Magic Valley facility. See Note 1 for additional information. The fair value of the long-lived assets are based on present value of estimated future cash flows and are designated as Level 3 inputs.
The following table summarizes recurring and nonrecurring fair value measurements by level at December 31, 2024 (in thousands):
| Benefit Plan | ||||||||||||||||||||
| Percentage | ||||||||||||||||||||
| Fair Value | Level 1 | Level 2 | Level 3 | Allocation | ||||||||||||||||
| Assets: | ||||||||||||||||||||
| Derivative financial instruments | $ | $ | $ | $ | ||||||||||||||||
| Long-lived assets – Magic Valley | ||||||||||||||||||||
| Defined benefit plan assets(1) (pooled separate accounts): | ||||||||||||||||||||
| Large U.S. Equity(2) | % | |||||||||||||||||||
| Small/Mid U.S. Equity(3) | % | |||||||||||||||||||
| International Equity(4) | % | |||||||||||||||||||
| Fixed Income(5) | % | |||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Derivative financial instruments | $ | $ | $ | $ | ||||||||||||||||
F-39
ALTO INGREDIENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes recurring and nonrecurring fair value measurements by level at December 31, 2023 (in thousands):
| Benefit Plan | ||||||||||||||||||||
| Fair | Percentage | |||||||||||||||||||
| Value | Level 1 | Level 2 | Level 3 | Allocation | ||||||||||||||||
| Assets: | ||||||||||||||||||||
| Derivative financial instruments | $ | $ | $ | $ | ||||||||||||||||
| Defined benefit plan assets(1) (pooled separate accounts): | ||||||||||||||||||||
| Large U.S. Equity(2) | % | |||||||||||||||||||
| Small/Mid U.S. Equity(3) | % | |||||||||||||||||||
| International Equity(4) | % | |||||||||||||||||||
| Fixed Income(5) | % | |||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Derivative financial instruments | $ | $ | $ | $ | ||||||||||||||||
| (1) |
| (2) |
| (3) |
| (4) |
| (5) |
| 16. | SUBSEQUENT EVENTS. |
On January 1, 2025, the Company’s wholly-owned subsidiary, Alto
Carbonic, LLC, acquired
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INDEX TO EXHIBITS
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| (#) | A contract, compensatory plan or arrangement to which a director or executive officer is a party or in which one or more directors or executive officers are eligible to participate. |
| (*) | Certain of the agreements filed as exhibits contain representations and warranties made by the parties thereto. The assertions embodied in such representations and warranties are not necessarily assertions of fact, but a mechanism for the parties to allocate risk. Accordingly, investors should not rely on the representations and warranties as characterizations of the actual state of facts or for any other purpose at the time they were made or otherwise. |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 13th day of March, 2025.
| ALTO INGREDIENTS, INC. | |
| /s/ BRYON T. MCGREGOR | |
| Bryon T. McGregor | |
| President and Chief Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||
| /s/ DOUGLAS L. KIETA | Chairman of the Board and Director | March 13, 2025 | ||
| Douglas L. Kieta | ||||
| /s/ BRYON T. MCGREGOR | President, Chief Executive Officer | March 13, 2025 | ||
| Bryon T. McGregor | (Principal Executive Officer) and Director | |||
| /s/ ROBERT R. OLANDER | Chief Financial Officer | March 13, 2025 | ||
| Robert R. Olander | (Principal Financial and Accounting Officer) | |||
| /s/ MICHAEL D. KANDRIS | Director | March 13, 2025 | ||
| Michael D. Kandris | ||||
| /s/ GILBERT E. NATHAN | Director | March 13, 2025 | ||
| Gilbert E. Nathan | ||||
| /s/ DIANNE S. NURY | Director | March 13, 2025 | ||
| Dianne S. Nury | ||||
| /s/ MARIA G. GRAY | Director | March 13, 2025 | ||
| Maria G. Gray |
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