Alto Ingredients, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Alto Ingredients, Inc. (ALTO) has filed its 2023 annual report on Form 10-K, detailing its financial performance and corporate information.</b>

AI Summary

Alto Ingredients, Inc. (ALTO) filed a Annual Report (10-K) with the SEC on March 14, 2024. Alto Ingredients, Inc. (ALTO) filed its annual report for the fiscal year ended December 31, 2023. The company is registered with the SEC under Central Index Key 0000778164. Its common stock is traded on The Nasdaq Stock Market LLC under the symbol ALTO. The company was formerly known as Pacific Ethanol, Inc. Alto Ingredients, Inc. is incorporated in Delaware and its principal executive offices are located in Pekin, Illinois.

Why It Matters

For investors and stakeholders tracking Alto Ingredients, Inc., this filing contains several important signals. This filing provides stakeholders with a comprehensive overview of the company's financial health and operational results for the fiscal year 2023. As a public company, Alto Ingredients is required to submit this report to the SEC, ensuring transparency for investors and the market.

Risk Assessment

Risk Level: low — Alto Ingredients, Inc. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate negative news or significant changes, indicating a routine disclosure.

Analyst Insight

Review the full 10-K filing for detailed financial statements, risk factors, and management's discussion and analysis to understand Alto Ingredients' performance and outlook.

Key Numbers

• 20231231 — Fiscal Year End (Reported period)
• 20240314 — Filing Date (Date of submission)
• 000-21467 — SEC File Number (Registrant's SEC file number)
• 41-2170618 — IRS Number (Registrant's IRS Employer Identification No.)

Key Players & Entities

• Alto Ingredients, Inc. (company) — Filer name
• ALTO (company) — Trading symbol
• Nasdaq Stock Market LLC (company) — Exchange where ALTO is registered
• Pacific Ethanol, Inc. (company) — Former company name
• Delaware (jurisdiction) — State of incorporation

FAQ

Industry Context

Alto Ingredients operates in the industrial organic chemicals sector, focusing on the production of specialty alcohols and essential ingredients.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, profitability, and balance sheet health.
2. Review the 'Risk Factors' section for potential challenges and uncertainties facing the company.
3. Examine the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' for insights into business performance and strategy.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023. Previous filings would provide comparative data.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value ALTO The Nasdaq Stock Market
• $85 — raised the carbon capture tax credit to $85 per metric ton, reflecting the 45Q tax

Filing Documents

• ea0201340-10k_altoingred.htm (10-K) — 2158KB
• ea020134001ex10-24_altoing.htm (EX-10.24) — 21KB
• ea020134001ex23-1_altoing.htm (EX-23.1) — 2KB
• ea020134001ex31-1_altoing.htm (EX-31.1) — 9KB
• ea020134001ex31-2_altoing.htm (EX-31.2) — 10KB
• ea020134001ex32-1_altoing.htm (EX-32.1) — 5KB
• ea020134001ex97-1_altoing.htm (EX-97.1) — 33KB
• image_001.jpg (GRAPHIC) — 87KB
• 0001213900-24-022351.txt (&nbsp;) — 11077KB
• alto-20231231.xsd (EX-101.SCH) — 99KB
• alto-20231231_cal.xml (EX-101.CAL) — 72KB
• alto-20231231_def.xml (EX-101.DEF) — 458KB
• alto-20231231_lab.xml (EX-101.LAB) — 800KB
• alto-20231231_pre.xml (EX-101.PRE) — 455KB
• ea0201340-10k_altoingred_htm.xml (XML) — 1754KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.

Financial Statements and Supplementary

Financial Statements and Supplementary Data 50 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 50 Item 9A.

Controls and Procedures

Controls and Procedures 50 Item 9B. Other Information 51 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 51 PART III Item 10. Directors, Executive Officers and Corporate Governance 52 Item 11.

Executive Compensation

Executive Compensation 52 Item 12.

Security Ownership of Certain

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 52 Item 13. Certain Relationships and Related Transactions, and Director Independence 52 Item 14. Principal Accountant Fees and Services 52 PART IV Item 15. Exhibits and Financial Statement Schedules 53 Item 16. Form 10-K Summary 53 Index to Consolidated

Financial Statements

Financial Statements F-1 -i- CAUTIONARY All statements included or incorporated by reference in this Annual Report on Form 10-K, other than statements or characterizations of historical fact, are forward-looking and expenses, and margins; projected additional EBITDA or Adjusted EBITDA; the expected timing, cost and effects of our capital improvement projects, including our carbon capture and storage project and our corn oil and high protein system at our Magic Valley facility, and other strategic and business initiatives; expectations surrounding our repairs and maintenance activities and their timing, costs and effects; our business outlook and expected performance in future periods; the sufficiency of our liquidity and capital resources; our ability to continue as a going concern; our accounting estimates, assumptions and judgments; the demand for specialty alcohols and essential ingredients; the competitive nature of and anticipated growth in our industry; production capacity and goals; our ability to consummate acquisitions, if any, and integrate their operations successfully; and our prospective needs for additional capital. These forward-looking statements are based on our current expectations, estimates, approximations and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions and variations or negatives of these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our

Business

Business Overview We produce and distribute renewable fuel and essential ingredients. We are also the largest producer of specialty alcohols in the United States. We operate five alcohol production facilities. Three of our production facilities are located in Illinois, one is located in Oregon and another is located in Idaho. We have an annual alcohol production capacity of 350 million gallons, including both fuel-grade ethanol and specialty alcohols ranging from industrial-, pharmaceutical-, and high-quality food- and beverage-grade alcohols. Of this amount, we can produce up to 110 million gallons annually of specialty alcohols, depending on our product mix among high-quality beverage-grade alcohol and alcohols of other quality specifications. We market and distribute all the alcohols produced at our facilities as well as alcohols produced by third parties. In 2023, we marketed and distributed approximately 383 million gallons combined of our own alcohols as well as fuel-grade ethanol produced by third parties, and over 1.5 million tons of essential ingredients on a dry matter basis. We also specialize in break bulk distribution of specialty alcohols through our Eagle Alcohol subsidiary. We purchase bulk alcohol from suppliers and then store, denature, package, and resell alcohol products in smaller sizes, including tank trucks, totes and drums that typically garner a premium price to bulk alcohols. We deliver products to customers in the beverage, food, industrial and related-process industries via our own dedicated trucking fleet and common carrier. We report our financial and operating performance in three segments: (1) Pekin production, which includes the production and sale of alcohols and essential ingredients produced at our three production facilities located in Pekin, Illinois, which we refer to as our Pekin Campus, (2) marketing and distribution, which includes marketing and merchant trading for company-produced alcohols and essential ingredients on

Business

Business Strategy The key elements of our business and growth strategy include: Focus on our customer relationships. Although we continue to produce more fuel-grade ethanol than specialty alcohols, we have repositioned our business to focus on expanding the production and sale of specialty alcohols and essential ingredients. As a result, our business is now more service-oriented and focused on specialty products compared to a price-taking business focused on commodity products. We strive to make our business ever more customer-centric to enable our premium services to support premium prices and new differentiated and higher-margin products. Implement carbon capture and storage at our Pekin Campus, lowering our carbon footprint . The Inflation Reduction Act of 2022 raised the carbon capture tax credit to $85 per metric ton, reflecting the 45Q tax incentive benefits established under the Act. We produce over 600,000 metric tons of carbon dioxide, CO 2, per year at our Pekin Campus, which sits atop the Mount Simon formation, identified as one of the best and largest aquafers in the country for carbon storage. We are prioritizing our carbon capture and storage, or CCS, project over other long-term capital projects. We believe the financial benefits under the Inflation Reduction Act and the substantial additional economic benefits of the environmental attributes associated with low carbon ethanol will result in excellent returns on investment. Expand product offerings . We are pursuing initiatives to broaden our product offerings to appeal to a wider range of customers and uses in our key markets. For example, we have secured ISO 9001, ICH Q7 and EXCiPACT certifications at all of our Pekin Campus production facilities. These certifications appeal to customers with stringent quality demands and enable us to offer alcohol certified for use as an active pharmaceutical ingredient, or API, and as an excipient—an inactive component of a drug or medication, such as solven

View Full Filing

View this 10-K filing on SEC EDGAR