Alto Ingredients, Inc. (NASDAQ:ALTO) Q3 2023 Earnings Call Transcript

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That said, as I mentioned, these repairs were timely and we would expect that to significantly benefit the plants going forward for the wet mill, particularly going forward. But we saw impacts elsewhere in other plants probably not as notable. But — I wouldn’t call it a perfect storm, but we seem to have experienced a number of operational challenges across all three plants during the quarter with temperatures and other types of normal events that occur in the summer period.

Amit Dayal: Got it, understood. Thank you for that Bryon. And then in the press release and in your commentary, you highlighted potential funding needs. Just to clarify, are these for projects that you walked us through in your commentary or do we potentially also have working capital-type funding needs that need to be addressed?

Bryon McGregor: Yes, I’ll comment generally and then, Rob, fill in. But the expectation is no — I mean we have more than sufficient working capital needs for the company and for its operations. It — we will need additional capital to bring some of these projects to fruition, particularly as an example, the yeast project that is significantly more than what we had originally anticipated. But we also have a number of interested parties and vendors and the like that we’re working with to be able to bring that to fruition.

Rob Olander: I agree.

Amit Dayal: Got it. Thank you for that. And just one last one, I guess, for me. On the third-party renewable fuel gallons, it looks like year-over-year decline on that front. Is that just market situation or is that something a bit more, I guess, permanent in terms of how you are focused on bringing sort of other products and improvements to the overall business?

Rob Olander: Yes, I’ll take that, Amit. Third-party volumes declined year-over-year. As you recall, we did sell our California plants and we also no longer market — provide marketing services for the two other non-owned ethanol plants. And I’ll also comment that in Q3, we also had a bit of a timing issue on some of the third-party volumes. They were lower due to product in transit that did qualify to be recognized as sales in Q3, but will be recognized in Q4.

Amit Dayal: Okay, understood. All right. I’ll take my other questions guys. Thank you so much. That’s all I had.

Bryon McGregor: Thanks for that.

Rob Olander: Thanks.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Bryon McGregor for any closing remarks.

Bryon McGregor: Thank you, Betsy. Thank, you all again for joining us today. We hope to see you in New York in November. Have a nice day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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