Alto Ingredients, Inc. Files Definitive Proxy Statement

TL;DR

<b>Alto Ingredients, Inc. (ALTO) filed its Definitive Proxy Statement, highlighting 2023 investments in facility upgrades and progress on a Carbon Capture and Storage (CCS) initiative.</b>

AI Summary

Alto Ingredients, Inc. (ALTO) filed a Proxy Statement (DEF 14A) with the SEC on April 26, 2024. Alto Ingredients, Inc. (ALTO) filed a Definitive Proxy Statement on April 26, 2024. The company produces ingredients for human/pet foods, animal feed, spirits, and renewable fuels. In 2023, ALTO invested in facilities to expand margins and improve capacity utilization for specialty alcohols and essential ingredients. These investments contributed to year-over-year improvements in gross profit, net losses, and Adjusted EBITDA. ALTO is advancing a Carbon Capture and Storage (CCS) initiative at its Pekin campus to reduce CO2 emissions.

Why It Matters

For investors and stakeholders tracking Alto Ingredients, Inc., this filing contains several important signals. The proxy statement details the company's strategic investments in 2023 aimed at improving operational efficiency and profitability, particularly in specialty alcohols and essential ingredients. Significant progress on the Carbon Capture and Storage (CCS) project at the Pekin facility indicates a focus on environmental sustainability and potential economic benefits through CO2 emission reduction.

Risk Assessment

Risk Level: — Alto Ingredients, Inc. shows moderate risk based on this filing. The company's financial performance, while showing improvements, still resulted in net losses in 2023, indicating ongoing financial challenges that could impact future operations and investments.

Analyst Insight

Stockholders should review the proxy statement for details on executive compensation, board nominations, and the company's strategic initiatives, including the CCS project, to assess future performance and governance.

Key Numbers

• 2023 — Reporting Year (Year of investments and performance review)
• 2024-05-03 — Letter Date (Date of the stockholder letter)
• 2024-04-26 — Filing Date (Date the proxy statement was filed)

Key Players & Entities

• Alto Ingredients, Inc. (company) — Registrant name
• ALTO (company) — Ticker symbol
• 2024-04-26 (date) — Filing date
• 2023 (date) — Reporting period for investments and performance
• Pekin (location) — Location of CCS initiative
• Vault 44.01 (company) — Partner for CCS initiative

FAQ

Risk Factors

• Operational Risks [medium — operational]: The company's operations are subject to various risks, including those related to production, supply chain, and facility maintenance.
• Financial Performance [medium — financial]: The company has experienced net losses, and its ability to achieve profitability is subject to market conditions and operational execution.
• Environmental Regulations [medium — regulatory]: The CCS initiative and general operations are subject to environmental regulations, including EPA applications.

Key Dates

• 2024-04-26: Filing of Definitive Proxy Statement — Provides updated information on company strategy, governance, and financial performance.
• 2024-05-03: Stockholder Letter Date — Communicates company's 2023 performance and future outlook to shareholders.

Glossary

CCS

Carbon Capture and Storage (Key initiative for reducing CO2 emissions and potentially creating economic benefits.)

Adjusted EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, adjusted for certain items. (A measure of the company's operational performance and profitability.)

Key Financial Figures

• $0.001 — s of our voting common stock, par value $0.001 per share ("common stock"), and 926,942

Filing Documents

• ea0204637-def14a_alto.htm (DEF 14A) — 1308KB
• image_001.jpg (GRAPHIC) — 252KB
• image_002.jpg (GRAPHIC) — 548KB
• image_003.jpg (GRAPHIC) — 347KB
• image_004.jpg (GRAPHIC) — 383KB
• image_005.jpg (GRAPHIC) — 376KB
• image_006.jpg (GRAPHIC) — 235KB
• image_007.jpg (GRAPHIC) — 247KB
• image_008.jpg (GRAPHIC) — 269KB
• image_009.jpg (GRAPHIC) — 231KB
• image_010.jpg (GRAPHIC) — 16KB
• image_011.jpg (GRAPHIC) — 12KB
• image_012.jpg (GRAPHIC) — 18KB
• 0001213900-24-036740.txt (&nbsp;) — 8981KB
• alto-20240503.xsd (EX-101.SCH) — 13KB
• alto-20240503_def.xml (EX-101.DEF) — 13KB
• alto-20240503_lab.xml (EX-101.LAB) — 38KB
• alto-20240503_pre.xml (EX-101.PRE) — 17KB
• ea0204637-def14a_alto_htm.xml (XML) — 537KB

Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners and Management 44 Equity Compensation Plan Information 45

Executive Compensation and Related Information

Executive Compensation and Related Information 45 Executive Officers 45 Compensation Discussion and Analysis 47 Compensation Committee Report 72 Compensation Risk Analysis 73 Summary Compensation Table 74 Grants of Plan-Based Awards – 2023 78 Outstanding Equity Awards at Fiscal Year-End – 2023 79 Option Exercises and Stock Vested – 2023 80 Severance and Change in Control Arrangements with Named Executive Officers 80 Calculation of Potential Payments upon Termination or Change in Control 81 CEO Pay Ratio 82 Pay Versus Performance 83 Certain Relationships and Related Transactions 93 Other Information 96 APPENDIX APPENDIX A – 2016 Stock Incentive Plan (As Amended Through June 20, 2024) A-1 APPENDIX B – List of Companies Included in Third-Party Survey Data B-1 APPENDIX C – List of Companies Included in Third-Party Survey Data C-1 APPENDIX D – Reconciliation of Adjusted EBITDA to Consolidated Net Income (Loss) D-1 i ALTO INGREDIENTS, INC. 1300 South Second Street Pekin, Illinois 61554 PROXY STATEMENT FOR THE 2024 ANNUAL MEETING OF STOCKHOLDERS Voting and Proxy This Proxy Statement is being furnished in connection with the solicitation of proxies by our Board of Directors ("Board") for use at the 2024 annual meeting ("Annual Meeting") of stockholders to be held on Thursday, June 20, 2024, at 9:00 a.m., local time, at our headquarters at 1300 South Second Street, Pekin, Illinois 61554, and at any adjournment(s) or postponement(s) of the Annual Meeting. We are providing this Proxy Statement and the accompanying proxy card to our stockholders on or about May 3, 2024. Our stockholders are invited to attend the Annual Meeting and are requested to vote on the proposals described in this Proxy Statement. IMPORTANT NOTICE REGARDING THE INTERNET AVAILABILITY OF PROXY MATERIALS FOR THE 2024 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD JUNE 20, 2024 This Proxy Statement and our Annual Report on Form 10-K for

View Full Filing

View this DEF 14A filing on SEC EDGAR