M&A - Alto Ingredients, Inc.

Form Type: 10-Q

Filing Date: 2025-05-09

Corporate Action: Acquisition

Type: Update

Accession Number: 000121390025041532

Filing Summary: Alto Ingredients, Inc. filed its quarterly report for the period ending March 31, 2025, disclosing financial performance that includes a net loss of $11.679 million, a slight improvement from a net loss of $11.725 million in the same period last year. The report highlights a significant acquisition made on January 1, 2025, where Alto Carbonic purchased Kodiak Carbonic, LLC for $7.6 million, expanding its operational capabilities in beverage-grade liquid CO2 processing. This acquisition is expected to enhance the company’s vertical integration and market access, as Kodiak Carbonic achieved net sales of $2.1 million for the quarter. Key financial figures outlined include current assets totaling $153.461 million, total liabilities amounting to $188.289 million, and stockholders' equity showing a decline to $213.920 million due to the accumulated deficit of $836.157 million. The company also reported total revenues of $226.540 million for the quarter, down from $240.629 million in the previous year, with a gross loss of $1.807 million. Significant ongoing operational challenges include losses attributed to fluctuating corn prices and margin pressures affecting production costs. Effective risk management practices using derivative instruments to hedge commodity price volatility are also discussed, and it underscores the company's ongoing efforts to streamline operations at its various production facilities.