What changed in this filing

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Item 1. Financial Statements

2025-11-07 compared with 2025-08-08 · 202 added, 182 removed, 459 unchanged (46% of the section changed)

3 unchanged sentences

(in thousands)

September 30,

Current Assets:

10 unchanged sentences

Total other assets

* Amounts derived from the audited

consolidated financial statements for the year ended December 31, 2024.

See accompanying

notes to consolidated financial statements.

* Amounts derived from the

audited consolidated financial statements for the year ended December 31, 2024.

See accompanying notes to consolidated financial

ALTO INGREDIENTS, INC.

1 unchanged sentence

(in thousands, except par value)

September 30,

LIABILITIES AND STOCKHOLDERS’ EQUITY

15 unchanged sentences

1,684 shares authorized;

no shares issued and outstanding as of June 30, 2025 and December 31, 2024;

no shares issued and outstanding

as of September 30, 2025 and December 31, 2024;

1,581 shares authorized;

927 shares issued and outstanding as of June 30, 2025 and December 31, 2024;

liquidation preference of $ 18,075 as of June 30, 2025

927 shares issued and outstanding

as of September 30, 2025 and December 31, 2024;

liquidation preference of $ 18,075 as of September 30, 2025

Common stock, $ 0.001 par value;

300,000 shares authorized;

77,201 and 76,565 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

77,342 and 76,565 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Non-voting common stock, $ 0.001 par value;

3,553 shares authorized;

1 share issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

1 share issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

3 unchanged sentences

Total Liabilities and Stockholders’ Equity

* Amounts derived from the audited

consolidated financial statements for the year ended December 31, 2024.

See accompanying

notes to consolidated financial statements.

* Amounts derived from the

audited consolidated financial statements for the year ended December 31, 2024.

See accompanying notes to consolidated financial

ALTO INGREDIENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per

(unaudited, in thousands, except per share

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Cost of goods sold

Gross profit (loss)

Selling, general and administrative expenses

Loss from operations

Gain on sale of assets

Income (loss) from operations

Interest expense, net

Other income (expense), net

Loss before provision for income taxes

Income (loss) before provision for income taxes

Provision for income taxes

Net income (loss)

Preferred stock dividends

Net loss attributable to common stockholders

Net loss per share, basic and diluted

Net income (loss) attributable to common stockholders

Net income (loss) per share, basic and diluted

Weighted-average shares outstanding, basic and diluted

See accompanying

notes to consolidated financial statements.

See accompanying notes to consolidated financial

ALTO INGREDIENTS, INC.

1 unchanged sentence

(unaudited, in thousands)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities:

Adjustments to reconcile net loss to Net cash used in operating activities:

Adjustments to reconcile net loss to

Net cash provided by operating activities:

Depreciation and amortization

Inventory valuation

Gains on derivative instruments

Gain on sale of assets

Stock-based compensation

6 unchanged sentences

Accounts payable and accrued liabilities

Net cash used in operating activities

Net cash provided by operating activities

Investing Activities:

Additions to property and equipment

Proceeds from sale of assets

Purchase of Kodiak Carbonic, net of cash acquired

2 unchanged sentences

Financing Activities:

Net proceeds from Kinergy’s line of credit

Net proceeds from (payments on) Kinergy’s line of credit

Preferred stock dividends paid

Net cash provided by financing activities

Net cash provided by (used in) financing activities

Net change in cash, cash equivalents and restricted cash

7 unchanged sentences

Interest paid

Proceeds from sale of assets – note receivable

Capitalized interest

Shares vested for Eagle Alcohol

See accompanying

notes to consolidated financial statements.

See accompanying notes to

consolidated financial statements.

ALTO INGREDIENTS, INC.

17 unchanged sentences

$ ( 847,469 )

Stock-based compensation

Restricted stock issued to employees and directors, net of cancellations and tax

Preferred stock dividends

Balances, September 30, 2025

$ ( 833,580 )

Balances, January 1, 2024

10 unchanged sentences

$ ( 779,375 )

See accompanying

notes to consolidated financial statements.

Stock-based compensation

Restricted stock issued to employees and directors, net of cancellations and tax

Preferred stock dividends

Balances, September 30, 2024

$ ( 782,135 )

accompanying notes to consolidated financial statements.

ALTO INGREDIENTS, INC.

12 unchanged sentences

Alto Carbonic’s facility is co-located at the Company’s Columbia ethanol

The Company began reporting the results of Alto Carbonic in the Company’s Western Production segment on January 1, 2025.

plant in Boardman, Oregon.

The Company began reporting the results of Alto Carbonic in the Company’s Western Production segment

on January 1, 2025.

The Company produces and distributes

3 unchanged sentences

The Company’s two production

facilities in Oregon and Idaho are located in close proximity to both feed and fuel-grade ethanol customers.

facilities in Boardman, Oregon and Burley, Idaho are located in close proximity to both feed and fuel-grade ethanol customers.

The Company has a combined alcohol

20 unchanged sentences

The Company’s production

facilities, other than its Magic Valley plant, were operating for all periods presented subject to scheduled and unscheduled downtimes

to address facility repair and maintenance.

In January 2024, the Company temporarily hot-idled its Magic Valley facility to minimize losses

from negative regional crush margins and to expedite the installation of additional equipment to achieve the intended production rate,

quality and consistency from the Company’s corn oil and high protein system at the facility.

The Company restarted its Magic Valley

facility in July 2024 and by October 2024, the facility consistently achieved average ethanol production rates at full capacity, the protein

content yield from the plant reached 50 % or greater, and the Company was able to expand its corn oil yields.

Increases in regional corn

basis and declining market prices for protein and corn oil resulted in overall margin compression, outweighing the economic benefits of

these plant improvements.

As a consequence, the Company cold-idled its Magic Valley facility on December 31, 2024 to minimize financial

The Company continues to provide terminal services at the plant and intends to resume operations at the facility when the economic

environment in the region sustainably improves.

facilities, other than its Magic Valley plant located in Burley, Idaho, were operating for all periods presented subject to scheduled

and unscheduled downtimes to address facility repair and maintenance.

In January 2024, the Company temporarily hot-idled its Magic Valley

facility to minimize losses from negative regional crush margins and to expedite the installation of additional equipment to achieve the

intended production rate, quality and consistency from the Company’s corn oil and high protein system at the facility.

restarted its Magic Valley facility in July 2024 and by October 2024, the facility consistently achieved average ethanol production rates

at full capacity, the protein content yield from the plant reached 50 % or greater, and the Company was able to expand its corn oil yields.

Increases in regional corn basis and declining market prices for protein and corn oil resulted in overall margin compression, outweighing

the economic benefits of these plant improvements.

As a consequence, the Company cold-idled its Magic Valley facility on December 31,

2024 to minimize financial losses.

The Company continues to provide terminal services at the plant.

Basis of Presentation – Interim

22 unchanged sentences

Of the accounts receivable balance, approximately

$ 49,181,000 and $ 44,750,000 at June 30, 2025 and December 31, 2024, respectively, were used as collateral under Kinergy’s operating

$ 46,146,000 and $ 44,750,000 at September 30, 2025 and December 31, 2024, respectively, were used as collateral under Kinergy’s operating

line of credit.

The allowance for credit losses was $ 22,000 and $ 23,000 as of June 30, 2025 and December 31, 2024, respectively.

recorded a credit loss recovery $ 16,000 and of $ 20,000 for the three months ended June 30, 2025 and 2024, respectively.

The Company recorded a credit loss recovery of $ 1,000 and $ 47,000 for the six months ended June 30, 2025 and

2024, respectively.

The allowance for credit losses was $ 19 ,000 and $ 23 ,000 as of September 30, 2025 and December 31, 2024, respectively.

The Company recorded a credit loss recovery of $ 3 ,000 and $ 24 ,000 for the three months ended September 30, 2025 and 2024, respectively.

The Company recorded a credit loss recovery of $ 4 ,000 and $ 23 ,000 for the nine months ended September 30, 2025 and 2024, respectively.

The Company does not have any off-balance sheet credit exposure related to its customers.

18 unchanged sentences

facility is co-located at the Company’s Columbia ethanol plant.

The acquisition will provide the Company further vertical integration

The acquisition has provided the Company further vertical integration

and access to new markets in the liquid CO 2 market out of its Columbia plant.

Kodiak Carbonic’s unaudited net sales for

the three months ended June 30, 2025 and 2024 were $ 2.4 million and $ 1.4 million and its unaudited net income was $ 1.5 million and $ 0.5

the three months ended September 30, 2025 and 2024 were $ 2.6 million and $ 1.4 million and its unaudited net income was $ 1.7 million and

$ 0.5 million, respectively.

Kodiak Carbonic’s unaudited net sales for the six months ended June 30, 2025 and 2024 were $ 4.5 million and

$ 2.7 million and its unaudited net income was $ 3.0 million and $ 0.9 million, respectively.

The following table presents the Company’s

unaudited pro forma combined financial information assuming the acquisition occurred on January 1, 2024 (dollars in thousands except per

share amounts):

Kodiak Carbonic’s unaudited net sales for the nine months ended September 30, 2025 and 2024 were $ 7.0

million and $ 4.1 million and its unaudited net income was $ 4.6 million and $ 1.4 million, respectively.

The following table presents the

Company’s unaudited pro forma combined financial information assuming the acquisition occurred on January 1, 2024 (dollars in thousands

except per share amounts):

Three Months Ended

September 30,

Revenues – pro forma

Net loss attributable to common stockholders – pro forma

Basic and diluted net loss per share – pro forma

Six Months Ended

Net income (loss) attributable to common stockholders – pro forma

Basic and diluted net income (loss) per share – pro forma

Nine Months Ended

September 30,

Revenues – pro forma

1 unchanged sentence

Basic and diluted net loss per share – pro forma

The following preliminary allocation of the estimated

purchase price assumes, with the exception of property and equipment and intangibles, that carrying values approximate fair value.

of uncollectible accounts receivable are not considered material due to the short-term nature and customer collection history.

The following allocation of the estimated purchase

price assumes, with the exception of property and equipment and intangibles, that carrying values approximate fair value.

uncollectible accounts receivable are not considered material due to the short-term nature and customer collection history.

price allocation is as follows (in thousands):

5 unchanged sentences

Current liabilities

Total liabiltiies

Total liabilities

Net tangible assets acquired

1 unchanged sentence

Total Purchase Price

For the identifiable intangible assets, the Company has estimated 9

years for useful lives for customer relationships.

For the three and six months ended June 30, 2025, the Company recorded amortization

of these intangibles of $ 102,000 and $ 204,000 , respectively.

Any changes to the initial estimates of the fair value of the acquired assets

and assumed liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill

if net assets acquired are less than the purchase price.

The Company did not incur any material acquisition costs.

For the identifiable intangible assets, the Company

has estimated 9 years for useful lives for customer relationships.

For the three and nine months ended September 30, 2025, the Company

recorded amortization of these intangibles of $ 102,000 and $ 306,000 , respectively.

The Company did not incur any material acquisition

A segment is a component of an enterprise whose

13 unchanged sentences

and essential ingredients, and sales of fuel-grade ethanol sourced from third parties, and (3) Western production, which includes the

Company’s two western production facilities and, beginning for the three and six months ended June 30, 2025, its liquid CO 2

plant on an aggregated basis (“Western production”).

For the three and six months ended June 30, 2025,

capital expenditures incurred by the Pekin Campus segment were approximately $ 0.5 million and $ 1.0 million, respectively, and none for

the Western production segment.

For the three and six months ended June 30, 2024, capital expenditures incurred by the Pekin Campus segment

were approximately $ 3.1 million and $ 6.9 million, respectively, and $ 1.6 million and $ 2.4 million for the Western production segment,

respectively.

Company’s two western production facilities in Boardman, Oregon and Burley, Idaho and, beginning for the three and nine months ended

September 30, 2025, its liquid CO 2 plant on an aggregated basis (“Western production”).

For the three and nine months ended September

30, 2025, capital expenditures incurred by the Pekin Campus segment were approximately $ 1.6 million and $ 2.6 million, respectively, and

none for the Western production segment.

For the three and nine months ended September 30, 2024, capital expenditures incurred by the

Pekin Campus segment were approximately $ 0.2 million and $ 7.1 million, respectively, and $ 0.3 million and $ 2.7 million for the Western

production segment, respectively.

For all periods presented, there were no capital expenditures for the marketing and distribution segment.

The following tables set forth certain financial

1 unchanged sentence

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Pekin Campus production, recorded as gross:

29 unchanged sentences

Intersegment eliminations

Gross profit (loss) as reported

Income (loss) before provision for

income taxes:

Gross profit as reported

Income (loss) before provision for income taxes:

Pekin Campus production

2 unchanged sentences

Corporate and other

and amortization expense:

Depreciation and amortization expense:

Pekin Campus production

1 unchanged sentence

Corporate and other

Interest expense, net of capitalized

Interest expense, net of capitalized interest:

Pekin Campus production

4 unchanged sentences

total assets by operating segment (in thousands):

September 30,

Total assets:

6 unchanged sentences

determined on a first-in, first-out basis.

Inventory is net of a valuation allowance of $ 1,649,000 and $ 2,050,000 as of June 30, 2025

and December 31, 2024, respectively.

Inventory is net of a valuation allowance of $ 0 and $ 2,050,000 as of September 30, 2025 and

December 31, 2024, respectively.

Inventory balances consisted of the following (in thousands):

September 30,

Finished goods

19 unchanged sentences

recognized immediately in cost of goods sold.

For the three and six months ended June 30, 2025 and 2024, the Company did not designate

For the three and nine months ended September 30, 2025 and 2024, the Company did not designate

any of its derivatives as cash flow hedges.

6 unchanged sentences

The Company recognized

net gains of $ 2,598,000 and $ 8,231,000 as the change in the fair value of these contracts for the three months ended June 30, 2025 and

2024, respectively.

The Company recognized net gains of $ 4,371,000 and $ 11,570,000 as the change in the fair value of these contracts

for the six months ended June 30, 2025 and 2024, respectively.

net gains of $ 5,809,000 and net losses of $ 2,566,000 as the change in the fair value of these contracts for the three months ended September

30, 2025 and 2024, respectively.

The Company recognized net gains of $ 10,179,000 and $ 9,002,000 as the change in the fair value of these

contracts for the nine months ended September 30, 2025 and 2024, respectively.

Non-Designated Derivative Instruments

1 unchanged sentence

balances, are as follows (in thousands):

As of June 30, 2025

As of September 30, 2025

Type of Instrument

7 unchanged sentences

As of December 31, 2024

Type of Instrument

Balance Sheet Location

of Instrument

Sheet Location

Cash collateral balance

9 unchanged sentences

realized and unrealized gains and losses for its derivatives not designated as hedging instruments are as follows (in thousands):

Realized Gains (Losses)

For the Three Months Ended

the Three Months Ended

September 30,

Type of Instrument

Statements of Operations Location

Statements of

Operations Location

Commodity contracts

Cost of goods sold

Realized Gains (Losses)

For the Six Months Ended

the Nine Months Ended

September 30,

Type of Instrument

Statements of Operations Location

Statements of

Operations Location

Commodity contracts

Cost of goods sold

Unrealized Gains (Losses)

For the Three Months Ended

Type of Instrument

Statements of Operations Location

Gains (Losses)

the Three Months Ended

September 30,

of Instrument

of Operations Location

Commodity contracts

Cost of goods sold

Unrealized Gains (Losses)

For the Six Months Ended

the Nine Months Ended

September 30,

Type of Instrument

Statements of Operations Location

Statements of

Operations Location

Commodity contracts

2 unchanged sentences

(in thousands):

September 30,

Kinergy line of credit

5 unchanged sentences

Excess Availability – As of

June 30, 2025, Kinergy had $ 4.8 million in unused borrowing availability under its line of credit and the Company had $ 65.0 million that

may be available for capital improvement projects under its Orion term loan, subject to certain conditions.

September 30, 2025, Kinergy had $ 20.3 million in unused borrowing availability under its line of credit and the Company had $ 65.0 million

that may be available for capital improvement projects under its Orion term loan, subject to certain conditions.

COMMITMENTS AND CONTINGENCIES.

Sales Commitments – At June

Sales Commitments – At September

30, 2025, the Company had entered into sales contracts with its major customers to sell certain quantities of alcohol and essential ingredients.

The Company had open indexed-price alcohol sales contracts for 73,711,000 gallons as of June 30, 2025 and open fixed-price alcohol sales

contracts totaling $ 173,160,000 as of June 30, 2025.

The Company had open fixed-price sales contracts for essential ingredients totaling

$ 10,025,000 and open indexed-price sales contracts of essential ingredients for 75,000 tons as of June 30, 2025.

These sales contracts

are scheduled to be completed throughout 2025.

The Company had open indexed-price alcohol sales contracts for 66,860,000 gallons as of September 30, 2025 and open fixed-price alcohol

sales contracts totaling $ 111,979,000 as of September 30, 2025.

The Company had open fixed-price sales contracts for essential ingredients

totaling $ 10,025,000 and open indexed-price sales contracts of essential ingredients for 61,000 tons as of September 30, 2025.

contracts are scheduled to be completed throughout 2025.

Purchase Commitments – At

June 30, 2025, the Company had indexed-price purchase contracts to purchase 17,955,000 gallons of alcohol and fixed-price purchase contracts

to purchase $ 563,000 of alcohol from its suppliers.

The Company had fixed-price purchase contracts to purchase $ 32,816,000 of corn from

its suppliers as of June 30, 2025.

The Company had indexed-price contracts to purchase 4,116,000 MMBTU of natural gas as of June 30, 2025.

The Company also had future commitments for certain capital projects totaling $ 11,498,000 .

These purchase commitments are scheduled to

be satisfied throughout 2025.

September 30, 2025, the Company had indexed-price purchase contracts to purchase 21,188,000 gallons of alcohol from its suppliers.

Company had fixed-price purchase contracts to purchase $ 8,997,000 of corn from its suppliers as of September 30, 2025.

The Company had

indexed-price contracts to purchase 10,974,000 MMBTU of natural gas as of September 30, 2025.

The Company also had future commitments

for certain capital projects totaling $ 6,257,000 .

These purchase commitments are scheduled to be satisfied throughout 2025.

Litigation – General –

27 unchanged sentences

balance sheet in other assets.

For the three months ended June

For the three months ended September

30, 2025, the Retirement Plan’s net periodic benefit was $ 22,000 , comprised of $ 313,000 in expected return on plan assets, partially

offset by $ 234,000 in interest cost and $ 57,000 in service cost.

For the six months ended June 30, 2025, the Retirement Plan’s net

periodic benefit was $ 43,000 , comprised of $ 625,000 in expected return on plan assets, partially offset by $ 468,000 in interest cost and

$ 114,000 in service cost.

For the three months ended June 30, 2024, the Retirement Plan’s net periodic expense was $ 13,000 , comprised

of $ 222,000 in interest cost and $ 67,000 in service cost, partially offset by $ 276,000 of expected return on plan assets.

months ended June 30, 2024, the Retirement Plan’s net periodic expense was $ 26,000 , comprised of $ 444,000 in interest cost and $ 134,000

in service cost, partially offset by $ 552,000 of expected return on plan assets.

For the nine months ended September 30, 2025, the Retirement Plan’s

net periodic benefit was $ 65,000 , comprised of $ 938,000 in expected return on plan assets, partially offset by $ 702,000 in interest cost

and $ 171,000 in service cost.

For the three months ended September 30, 2024, the Retirement Plan’s net periodic expense was $ 13,000 ,

comprised of $ 222,000 in interest cost and $ 67,000 in service cost, partially offset by $ 276,000 of expected return on plan assets.

the nine months ended September 30, 2024, the Retirement Plan’s net periodic expense was $ 39,000 , comprised of $ 666,000 in interest

cost and $ 201,000 in service cost, partially offset by $ 828,000 of expected return on plan assets.

The Postretirement Plan provides

9 unchanged sentences

The Company’s funding policy is to make the minimum annual contribution required by applicable regulations.

For the three months ended June

For the three months ended September

30, 2025, the Postretirement Plan’s net periodic expense was $ 25,000 , comprised of $ 48,000 of interest cost and $ 4,000 of service

cost, partially offset by $ 27,000 in amortization of net gains.

For the six months ended June 30, 2025, the Postretirement Plan’s

For the nine months ended September 30, 2025, the Postretirement Plan’s

net periodic expense was $ 75,000 , comprised of $ 145,000 of interest cost and $ 11,000 of service cost, partially offset by $ 81,000 in amortization

of net gains.

For the three months ended June 30, 2024, the Postretirement Plan’s net periodic expense was $ 54,000 , comprised of

$ 49,000 in interest cost and $ 5,000 in service cost.

For the six months ended June 30, 2024, the Postretirement Plan’s net periodic

expense was $ 108,000 , comprised of $ 98,000 in interest cost and $ 10,000 in service cost.

FAIR VALUE MEASUREMENTS.

For the three months ended September 30, 2024, the Postretirement Plan’s net periodic expense was $ 54,000 , comprised

of $ 49,000 in interest cost and $ 5,000 in service cost.

For the nine months ended September 30, 2024, the Postretirement Plan’s

net periodic expense was $ 162,000 , comprised of $ 147,000 in interest cost and $ 15,000 in service cost.

VALUE MEASUREMENTS.

The fair value hierarchy prioritizes the inputs

used in valuation techniques into three levels, as follows:

● Level 1 – Observable inputs – unadjusted quoted

prices in active markets for identical assets and liabilities;

● Level 2 – Observable inputs other than quoted prices

included in Level 1 that are observable for the asset or liability through corroboration with market data;

● Level 3 – Unobservable inputs – includes amounts

derived from valuation models where one or more significant inputs are unobservable.

For fair value measurements using significant unobservable

inputs, a description of the inputs and the information used to develop the inputs is required along with a reconciliation of Level 3

values from the prior reporting period.

● Level 1 – Observable inputs – unadjusted quoted prices in active markets for identical assets

and liabilities;

● Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for

the asset or liability through corroboration with market data;

● Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or

more significant inputs are unobservable.

For fair value measurements using significant unobservable inputs, a description of the inputs

and the information used to develop the inputs is required along with a reconciliation of Level 3 values from the prior reporting period.

Pooled separate accounts –

13 unchanged sentences

The following table summarizes recurring and nonrecurring

fair value measurements by level at June 30, 2025 (in thousands):

fair value measurements by level at September 30, 2025 (in thousands):

Derivative instruments

2 unchanged sentences

fair value measurements by level at December 31, 2024 (in thousands):

Derivative financial instruments

Derivative instruments

Long-lived assets – Magic Valley

4 unchanged sentences

Fixed Income(5)

Derivative financial instruments

Derivative instruments

(1) Included in other assets in the consolidated balance sheets.

(2) This category includes investments in funds comprised of equity

securities of large U.S.

(2) This category includes investments in funds comprised of equity securities of large U.S.

funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value

(3) This category includes investments in funds comprised of equity securities of small- and medium-sized

The funds are valued using the net asset value method in which an average of the market prices for the underlying investments

is used to value the fund.

(4) This category includes investments in funds comprised of equity securities of foreign companies including

emerging markets.

The funds are valued using the net asset value method in which an average of the market prices for the underlying investments

is used to value the fund.

(5) This category includes investments in funds comprised of U.S.

and foreign investment-grade fixed income

securities, high-yield fixed income securities that are rated below investment-grade, U.S.

treasury securities, mortgage-backed securities,

and other asset-backed securities.

The funds are valued using the net asset value method in which an average of the market prices for

the underlying investments is used to value the fund.

(3) This category includes investments in funds comprised of equity

securities of small- and medium-sized U.S.

The funds are valued using the net asset value method in which an average of the

market prices for the underlying investments is used to value the fund.

(4) This category includes investments in funds comprised of equity

securities of foreign companies including emerging markets.

The funds are valued using the net asset value method in which an average

of the market prices for the underlying investments is used to value the fund.

(5) This category includes investments in funds comprised of U.S.

and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S.

treasury securities, mortgage-backed securities, and other asset-backed securities.

The funds are valued using the net asset value method

in which an average of the market prices for the underlying investments is used to value the fund.

EARNINGS PER SHARE.

1 unchanged sentence

earnings per share (in thousands, except per share data):

Three Months Ended June 30, 2025

Months Ended September 30, 2025

Preferred stock dividends

Basic and diluted loss per share:

Loss attributable to common stockholders

Six Months Ended June 30, 2025

Basic and diluted income per share:

Income attributable to common stockholders

Nine Months Ended September 30, 2025

Preferred stock dividends

1 unchanged sentence

Loss attributable to common stockholders

Three Months Ended June 30, 2024

Months Ended September 30, 2024

Preferred stock dividends

1 unchanged sentence

Loss attributable to common stockholders

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Preferred stock dividends

2 unchanged sentences

There were an additional aggregate potentially

dilutive weighted-average shares of 981,000 from convertible securities outstanding for the three and six months ended June 30, 2025 and

June 30, 2024.

These securities were not considered in calculating diluted net income (loss) per share for the three and six months ended

June 30, 2025 and 2024, as their effect would have been anti-dilutive.

dilutive weighted-average shares of 981,000 from convertible securities outstanding for the three and nine months ended September 30,

2025 and September 30, 2024.

These securities were not considered in calculating diluted net income (loss) per share for the three and

nine months ended September 30, 2025 and 2024, as their effects would have been anti-dilutive.

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 1. Financial Statements