UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number: 000-21467

ALTO INGREDIENTS, INC.

(Exact name of registrant as specified in its charter)

Delaware		41-2170618
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1300 South Second Street, Pekin, Illinois		61554
(Address of principal executive offices)		(zip code)

(916) 403-2123

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class

Trading Symbol

Name of Exchange on Which Registered

Common Stock, $0.001 par value

ALTO

The Nasdaq Stock Market LLC

(Nasdaq Capital Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 9, 2021, there were 72,806,563 shares of Alto Ingredients, Inc. common stock, $0.001 par value per share, and 896 shares of Alto Ingredients, Inc. non-voting common stock, $0.001 par value per share, outstanding.

		Page

	PART I
	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS.

	Consolidated Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020	1

	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020 (unaudited)	3

	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 (unaudited)	4

	Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2021 and 2020 (unaudited)	5

	Notes to Consolidated Financial Statements (unaudited)	6

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	20

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	36

ITEM 4.	CONTROLS AND PROCEDURES.	36

PART II
OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS.	37

ITEM 1A.	RISK FACTORS.	37

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	46

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	47

ITEM 4.	MINE SAFETY DISCLOSURES.	47

ITEM 5.	OTHER INFORMATION.	47

ITEM 6.	EXHIBITS.	48

SIGNATURES		49

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	June 30,		December 31,
	2021		2020
	(unaudited)		*
ASSETS

Current Assets:
Cash and cash equivalents	$	50,796	$	47,667
Accounts receivable, net (net of allowance for doubtful accounts of $363 and $260, respectively)		67,043		43,491
Inventories		58,251		37,925
Prepaid inventory		531		891
Derivative instruments		28,498		17,149
Assets held-for-sale		30,199		58,295
Other current assets		8,932		8,628
Total current assets		244,250		214,046
Property and equipment, net		221,327		229,486

Other Assets:
Right of use operating lease assets, net		13,509		11,046
Notes receivable		12,775		14,337
Intangible assets		2,678		2,678
Other assets		4,665		5,225
Total other assets		33,627		33,286
Total Assets	$	499,204	$	476,818

Amounts derived from the audited consolidated financial statements for the year ended December 31, 2020.

See accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.

CONSOLIDATED BALANCE SHEETS (CONTINUED)

(in thousands, except par value)

	June 30,			December 31,
	2021			2020
	(unaudited)			*
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable – trade	$	30,029		$	13,047
Accrued liabilities		15,977			11,101
Current portion – operating leases		3,171			2,180
Current portion – long-term debt		23,660			25,533
Derivative instruments		20,174			—
Liabilities held-for-sale		10,478			19,542
Other current liabilities		7,255			15,524
Total current liabilities		110,744			86,927

Long-term debt, net of current portion		56,848			71,807
Operating leases, net of current portion		10,188			8,715
Other liabilities		13,405			13,134
Total Liabilities		191,185			180,583
Commitments and Contingencies (Note 7)
Stockholders’ Equity:
Alto Ingredients, Inc. Stockholders’ Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: 1,684 shares authorized; no shares issued and outstanding as of June 30, 2021 and December 31, 2020; Series B: 1,581 shares authorized; 927 shares issued and outstanding as of June 30, 2021 and December 31, 2020; liquidation preference of $20,290 as of June 30, 2021		1			1
Common stock, $0.001 par value; 300,000 shares authorized; 72,811 and 72,487 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		73			72
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		—			—
Additional paid-in capital		1,035,980			1,036,638
Accumulated other comprehensive loss		(3,878	)		(3,878	)
Accumulated deficit		(724,157	)		(736,598	)
Total Stockholders’ Equity		308,019			296,235
Total Liabilities and Stockholders’ Equity	$	499,204		$	476,818

Amounts derived from the audited consolidated financial statements for the year ended December 31, 2020.

See accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020

Net sales	$	298,110		$	212,074		$	516,844		$	523,478
Cost of goods sold		282,877			180,892			487,774			505,186
Gross profit		15,233			31,182			29,070			18,292
Selling, general and administrative expenses		7,230			8,629			14,244			18,841
Asset impairments		1,900			—			3,100			—
Income (loss) from operations		6,103			22,553			11,726			(549	)
Interest expense, net		(1,045	)		(4,647	)		(2,930	)		(9,954	)
Income from loan forgiveness		3,887			—			3,887			—
Fair value adjustments		—			(1,314	)		—			(641	)
Other income (expense), net		(555	)		(1,738	)		385			(1,158	)
Income (loss) before benefit for income taxes		8,390			14,854			13,068			(12,302	)
Benefit for income taxes		—			—			—			—
Consolidated net income (loss)		8,390			14,854			13,068			(12,302	)
Net loss attributed to noncontrolling interests		—			110			—			2,166
Net income (loss) attributed to Alto Ingredients, Inc.	$	8,390		$	14,964		$	13,068		$	(10,136	)
Preferred stock dividends	$	(315	)	$	(315	)	$	(627	)	$	(630	)
Net income (loss) available to common stockholders	$	8,075		$	14,649		$	12,441		$	(10,766	)
Net income (loss) per share, basic	$	0.11		$	0.27		$	0.18		$	(0.20	)
Net income (loss) per share, diluted	$	0.11		$	0.27		$	0.17		$	(0.20	)
Weighted-average shares outstanding, basic		71,260			54,498			70,808			54,163
Weighted-average shares outstanding, diluted		71,929			54,498			71,961			54,163

See accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

	Six Months Ended June 30,
	2021			2020
Operating Activities:
Consolidated net income (loss)	$	13,068		$	(12,302	)
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Depreciation		11,670			18,806
Asset impairments		3,100			—
Income from loan forgiveness		(3,887	)		—
Non-cash compensation		1,655			1,441
Amortization of deferred financing fees		701			497
Fair value adjustments		—			641
Interest added to debt		—			133
Bad debt expense		143			1
Changes in operating assets and liabilities:
Accounts receivable		(23,694	)		25,435
Inventories		(18,526	)		14,274
Prepaid expenses and other assets		8,615			(403	)
Prepaid inventory		361			(1,652	)
Operating leases		(2,069	)		(2,348	)
Assets held-for-sale		(2,915	)		1,012
Liabilities held-for-sale		1,445			9,345
Accounts payable and accrued expenses		11,096			(9,225	)
Net cash provided by operating activities		763			45,655
Investing Activities:
Proceeds from Madera Sale		19,500			—
Proceeds from PAL Sale		—			19,896
Additions to property and equipment		(4,192	)		(2,510	)
Net cash provided by investing activities		15,308			17,386
Financing Activities:
Net proceeds from (payments on) Kinergy’s line of credit		24,406			(36,897	)
Proceeds from stock option exercises		462			—
Principal payments on borrowings		(37,810	)		(25,500	)
Proceeds from issuance of common stock		—			282
Proceeds from borrowings		—			9,860
Net cash used in financing activities		(12,942	)		(52,255	)
Net change in cash and cash equivalents		3,129			10,786
Cash and cash equivalents at beginning of period		47,667			18,997
Cash and cash equivalents at end of period	$	50,796		$	29,783

Supplemental Information:
Interest paid	$	2,723		$	9,733
Accrued preferred stock dividends	$	627		$	630

See accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited, in thousands)

	Preferred Stock				Common Stock					Additional Paid-In			Accumulated			Accum. Other Comprehensive			Non-Controlling
	Shares		Amount		Shares			Amount		Capital			Deficit			Income (Loss)			Interests		Total
Balances, January 1, 2021		927	$	1		72,487		$	72	$	1,036,638		$	(736,598	)	$	(3,878	)	$	—	$	296,235

Restricted stock issued to employees and directors, net of cancellations and tax		—		—		550			1		(186	)		—			—			—		(185	)

Stock-based compensation		—		—		—			—		804			—			—			—		804

Stock option exercises		—		—		124			—		462			—			—			—		462

Preferred stock dividends		—		—		—			—		—			(312	)		—			—		(312	)

Net loss		—		—		—			—		—			4,678			—			—		4,678

Balances, March 31, 2021		927	$	1		73,161		$	73	$	1,037,718		$	(732,232	)	$	(3,878	)	$	—	$	301,682

Restricted stock issued to employees and directors, net of cancellations and tax		—		—		(350	)		—		(2,589	)		—			—			—		(2,589	)

Stock-based compensation		—		—		—			—		851			—			—			—		851

Preferred stock dividends		—		—		—			—		—			(315	)		—			—		(315	)

Net income		—		—		—			—		—			8,390			—			—		8,390

Balances, June 30, 2021		927	$	1		72,811		$	73	$	1,035,980		$	(724,157	)	$	(3,878	)	$	—	$	308,019

	Preferred Stock				Common Stock						Additional Paid-In		Accumulated			Accum. Other Comprehensive			Non-Controlling
	Shares		Amount		Shares			Amount			Capital		Deficit			Income (Loss)			Interests			Total
Balances, January 1, 2020		927	$	1		55,508		$	56		$	942,307	$	(720,214	)	$	(2,370	)	$	7,265		$	227,045

Restricted stock issued to employees and directors, net of cancellations and tax		—		—		(38	)		(4	)		3		—			—			—			(1	)

Stock-based compensation		—		—		—			—			865		—			—			—			865

Issuances of common stock		—		—		421			4			278		—			—			—			282

Preferred stock dividends		—		—		—			—			—		(315	)		—			—			(315	)

Net loss		—		—		—			—			—		(25,100	)		—			(2,056	)		(27,156	)

Balances, March 31, 2020		927	$	1		55,891		$	56		$	943,453	$	(745,629	)	$	(2,370	)	$	5,209		$	200,720

Restricted stock issued to employees and directors, net of cancellations and tax		—		—		(409	)		(1	)		6		—			—			—			5

Stock-based compensation		—		—		—			—			576		—			—			—			576

Preferred stock dividends		—		—		—			—			—		(315	)		—			—			(315	)

Sale of interests in PAL		—		—		—			—			—		—			—			(5,099	)		(5,099	)

Net income (loss)		—		—		—			—			—		14,964			—			(110	)		14,854

Balances, June 30, 2020		927	$	1		55,482		$	55		$	944,035	$	(730,980	)	$	(2,370	)	$	—		$	210,741

See accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

ORGANIZATION AND BASIS OF PRESENTATION.

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 subsidiaries (collectively, the “Company”), including its wholly-owned subsidiaries, Kinergy Marketing LLC, an Oregon limited liability company (“Kinergy”), Alto Nutrients LLC, a California limited liability company, Alto Op Co., a Delaware corporation, and all seven of the Company’s production facilities through May 14, 2021. As discussed in Note 2, on May 14, 2021, the Company completed the sale of its production facility located in Madera, California.

The Company is a leading producer and marketer of specialty alcohols and essential ingredients. The Company also produces and markets fuel-grade ethanol. The Company’s production facilities in Pekin, Illinois are located in the heart of the Corn Belt, benefit from low-cost and abundant feedstock and allow for access to many additional domestic markets. In addition, the Company’s ability to load unit trains and barges from these facilities allows for greater access to international markets. The Company’s three production facilities in California, Oregon and Idaho, located in close proximity to both feed and fuel-grade ethanol customers, enjoy unique advantages in efficiency, logistics and product pricing.

The Company has a combined production capacity of 410 million gallons per year, markets, on an annualized basis, over 500 million gallons of alcohols, and produces, on an annualized basis, nearly 1.5 million tons of essential ingredients on a dry matter basis, such as dried yeast, corn gluten meal, corn gluten feed, and distillers grains and liquid feed used in commercial animal feed and pet foods.

The Company focuses on four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. 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 Essential Ingredients markets include yeast, corn gluten and distillers grains used in commercial animal feed and pet foods. Renewable Fuels includes fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel fuel.

As of June 30, 2021, the Company was operating at approximately 71% of its 410 million gallon annual production capacity. As market conditions change, the Company may increase, decrease or idle production at one or more operating facilities or resume operations at any idled facility.

Basis of Presentation–Interim Financial Statements – The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Results for interim periods should not be considered indicative of results for a full year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The accounting policies used in preparing these consolidated financial statements are the same as those described in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation.

Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable are presented at face value, net of the allowance for doubtful accounts. The Company sells specialty alcohols to large consumer products 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 biodiesel customers generally without requiring collateral.

The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of ability to make payments, additional allowances may be required.

Of the accounts receivable balance, approximately $61,501,000 and $35,839,000 at June 30, 2021 and December 31, 2020, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $363,000 and $260,000 as of June 30, 2021 and December 31, 2020, respectively. The Company recorded a bad debt expense of $52,000 and a bad debt recovery of $18,000 for the three months ended June 30, 2021 and 2020, respectively. The Company recorded a bad debt expense of $143,000 and $1,000 for the six months ended June 30, 2021 and 2020, respectively. The Company does not have any off-balance sheet credit exposure related to its customers.

Financial Instruments – The carrying values of cash and cash equivalents, accounts receivable, derivative assets, accounts payable, accrued liabilities and derivative liabilities are reasonable estimates of their fair values because of the short maturity of these items. The carrying value of the Company’s senior secured notes are recorded at fair value and are considered Level 2 fair value measurements. The Company believes the carrying value of its notes receivable are not considered materially different than fair value due to their recent issuances, and other long-term debt instruments’ carrying values are not considered materially different than fair value because the interest rates on these instruments are variable, and are considered Level 2 fair value measurements.

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 the allowance for doubtful accounts, net realizable value of inventory, estimated lives of property and equipment, long-lived asset impairments, fair value of warrants, 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.

ASSETS AND LIABILITIES HELD-FOR-SALE.

In October 2020, the Company’s Board of Directors approved a plan to sell the Company’s fuel-grade ethanol production facilities located in Madera and Stockton, California. As a result, the Company determined the related long-lived asset groups should be classified as held-for-sale at December 31, 2020. During the six months ended June 30, 2021, the Company provided for an additional impairment charge of $1.2 million based on revised fair value estimates.

On May 14, 2021, the Company closed the sale of its Madera facility for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities, resulting in a net loss on sale of less than $0.1 million, recorded as other income (expense), net in the Company’s consolidated statements of operations. All of the cash proceeds were used to repay a significant portion of the Company’s term debt and accrued interest.

The Company continues to market its Stockton facility for sale.

In June 2021, the Company agreed to a plan to sell certain assets of the Company’s idled facility in Canton, Illinois. As a result, the Company determined the related long-lived asset groups should be classified as held-for-sale at June 30, 2021. During the three months ended June 30, 2021, the Company recorded an estimated impairment charge of $1.9 million based on fair value estimates.

The Company classified the following assets and liabilities as held-for-sale as of June 30, 2021 (in thousands):

	Stockton		Canton
Property and equipment, net	$	19,535	$	1,000
Right of use operating lease assets, net		9,664		—
Assets held-for-sale	$	29,199	$	1,000

		Stockton				Canton
Liabilities held-for-sale – operating leases		$	10,478			$	—

The Company classified the following assets and liabilities as held-for-sale as of December 31, 2020 (in thousands):

	Stockton		Madera
Property and equipment, net	$	19,535	$	29,013
Right of use operating lease assets, net		9,747		—
Assets held-for-sale	$	29,282	$	29,013

	Stockton		Madera
Operating lease obligations	$	10,435	$	—
Assessment financing		—		9,107
Liabilities held-for-sale	$	10,435	$	9,107

For the three months ended June 30, 2021, net sales attributed to the results of operations for Stockton and Madera were $0.4 million and less than $0.1 million, respectively. For the three months ended June 30, 2020, net sales attributed to the results of operations for Stockton and Madera were $0.5 million and $1.0 million, respectively. For the three months ended June 30, 2021, pre-tax loss attributed to the results of operations for Stockton and Madera was $1.4 million and $0.2 million, respectively. For the three months ended June 30, 2020, pre-tax loss attributed to the results of operations for Stockton and Madera was $1.2 million and $1.8 million, respectively.

For the six months ended June 30, 2021, net sales attributed to the results of operations for Stockton and Madera were $0.6 million and less than $0.1 million, respectively. For the six months ended June 30, 2020, net sales attributed to the results of operations for Stockton and Madera were $22.4 million and $22.5 million, respectively. For the six months ended June 30, 2021, pre-tax loss attributed to the results of operations for Stockton and Madera was $2.2 million and $1.8 million, respectively. For the six months ended June 30, 2020, pre-tax loss attributed to the results of operations for Stockton and Madera was $3.5 million and $3.6 million, respectively.

SEGMENTS.

The Company reports its financial and operating performance in three segments: (1) marketing and distribution, which includes marketing and merchant trading for Company-produced alcohols and essential ingredients on an aggregated basis, and third-party fuel-grade ethanol (2) Pekin production, which includes the production and sale of alcohols and essential ingredients produced at the Company’s Pekin, Illinois campus (“Pekin Campus”), and (3) Other production, which includes the production and sale of fuel-grade ethanol and essential ingredients produced at all of the Company’s other production facilities on an aggregated basis (“Other production”), none of which are individually so significant as to be considered a reportable segment.

The following tables set forth certain financial data for the Company’s operating segments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net Sales
Marketing and distribution:
Alcohol sales, gross	$	86,299		$	71,117		$	143,309		$	128,623
Alcohol sales, net		532			307			984			736
Intersegment sales		2,618			1,838			4,862			6,153
Total marketing and distribution sales		89,449			73,262			149,155			135,512

Pekin Campus production, recorded as gross:
Alcohol sales	$	132,296		$	94,538		$	227,380		$	178,669
Essential ingredient sales		49,578			33,633			94,655			73,504
Intersegment sales		316			263			628			680
Total Pekin Campus sales		182,190			128,434			322,663			252,853

Other production, recorded as gross:
Alcohol sales	$	22,153		$	9,796		$	38,121		$	109,025
Essential ingredient sales		7,252			2,683			12,395			32,921
Intersegment sales		332			410			637			701
Total Other production sales		29,737			12,889			51,153			142,647

Intersegment eliminations		(3,266	)		(2,511	)		(6,127	)		(7,534	)
Net sales as reported	$	298,110		$	212,074		$	516,844		$	523,478

Cost of goods sold:
Marketing and distribution	$	85,746		$	69,101		$	139,705		$	126,240
Pekin Campus production		171,547			95,070			299,250			221,840
Other production		27,325

SEC Form 10-Q filed by Alto Ingredients Inc.