What changed in this filing

/stocks — the workspaceLOADING

Item 1A. Risk Factors

2021-11-12 compared with 2021-08-10 · 20 added, 59 removed, 428 unchanged (16% of the section changed)

38 unchanged sentences

significantly from the coronavirus pandemic due to a substantial increase in demand for alcohol-based sanitizers and disinfectants.

the coronavirus pandemic abates, demand for alcohol-based sanitizers and disinfectants may decline, ultimately exerting downward pressure

on prices for our specialty alcohols used in those products.

In addition, higher industry production levels in response to the coronavirus

pandemic and any resulting oversupply of specialty alcohols for sanitizers and disinfectants would also exert downward pressure on prices.

Reduced demand and prices for our specialty alcohols used in sanitizers and disinfectants, or industry oversupply of those specialty alcohols,

may materially and adversely affect our business, results of operations and liquidity.

the coronavirus pandemic abates, demand for alcohol-based sanitizers and disinfectants has declined, exerting downward pressure on prices

for our specialty alcohols used in those products.

In addition, higher industry production levels in response to the coronavirus pandemic

and higher specialty alcohol supplies for sanitizers and disinfectants have exerted downward pressure on prices.

Reduced demand and prices

for our specialty alcohols used in sanitizers and disinfectants, or industry oversupply of those specialty alcohols, may materially and

adversely affect our business, results of operations and liquidity.

Our results of operations and our ability to operate

151 unchanged sentences

us from expanding our business.

We have incurred significant losses and negative

operating cash flow in the past.

We have incurred significant losses and

negative operating cash flow in the past.

For the three months ended September 30, 2021, we incurred consolidated net losses of

approximately $3.1 million.

For the years ended December 31, 2020 and 2019, we incurred consolidated net losses of approximately

$17.3 million and $101.3 million, respectively.

For the three months ended March 31, 2021 and for the year ended December 31, 2019, we

incurred negative operating cash flow of approximately $4.1 million and $23.4 million, respectively.

We may incur losses and negative

operating cash flow in the future.

We expect to rely on cash on hand, cash, if any, generated from our operations, borrowing availability

under our lines of credit and proceeds from our future financing activities, if any, to fund all of the cash requirements of our business.

Additional losses and negative operating cash flow may hamper our operations and impede us from expanding our business.

Our indebtedness exposes us to many risks that could

negatively impact our business, our business prospects, our liquidity and our cash flows and results of operations.

Our Pekin Campus facilities have significant indebtedness.

The terms of our loans associated with Pekin Campus facilities require amortizing payments of principal over the lives of the loans and

our borrowing availability under our revolving credit facilities associated with those facilities periodically and automatically declines

through the maturity dates of those facilities.

Our indebtedness could:

● make it more difficult to pay or refinance our debts as they

become due during adverse economic and industry conditions because those conditions could result in insufficient cash flows from operations

to make our scheduled debt payments;

● limit our flexibility to pursue strategic opportunities or

react to changes in our business and the industry in which we operate and, consequently, place us at a competitive disadvantage to our

competitors who have less debt;

● require a substantial portion of our cash flow from operations,

if any, to be used for debt service payments, thereby reducing our ability to fund working capital, capital expenditures, new business

ventures, dividend payments and other general corporate purposes;

● limit our ability to procure additional financing for working

capital or other purposes.

Our term loans and credit facilities also require

compliance with numerous financial and other covenants, the violation of which could result in an acceleration of our indebtedness.

Much of our indebtedness bears interest at variable

An increase in prevailing interest rates would likewise increase our debt service obligations and could materially and adversely

affect our cash flows and results of operations.

Our ability to generate sufficient cash to make

all principal and interest payments when due depends on our business performance, which is subject to a variety of factors beyond our

control, including the supply of and demand for our alcohols and other products, product prices, the cost of key production inputs, and

many other factors incident to the alcohol production and marketing industry.

We cannot provide any assurance that we will be able to

timely satisfy such obligations.

We can provide no assurances that our remaining PPP

loan will be forgiven, in whole or in part, or that any loan forgiven will not require repayment following an audit by the SBA.

On May 4, 2020, Alto Ingredients, Inc.

Pekin received loan proceeds from Bank of America, NA under the CARES Act through the Paycheck Protection Program administered by the

Alto Ingredients, Inc.

received $6.0 million and Alto Pekin received $3.9 million in loan proceeds.

As of the filing of this report,

the $6.0 million loan to Alto Ingredients, Inc.

remains outstanding.

We can provide no assurances that we will be able to obtain forgiveness

of all or any portion of the remaining loan.

In addition, the SBA may audit our loan forgiveness applications and further examine our

eligibility for forgiveness, including the facts and circumstances existing at the time the loans were made.

We can provide no assurances

that any loan forgiven will not require repayment following an audit by the SBA.

For the nine months ended September 30, 2021 and for the year ended December 31,

2019, we incurred negative operating cash flow of approximately $19.7 million and $23.4 million, respectively.

We may incur losses

and negative operating cash flow in the future.

We expect to rely on cash on hand, cash, if any, generated from our operations,

borrowing availability under our lines of credit and proceeds from our future financing activities, if any, to fund all of the cash

requirements of our business.

Additional losses and negative operating cash flow may hamper our operations and impede us from

expanding our business.

Our ability to utilize net operating loss carryforwards

233 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors