Core Insights - Alto Neuroscience, Inc. is accelerating the development of ALTO-207 for treatment-resistant depression (TRD) following a successful FDA meeting [1] - The company announced a $50 million private placement to support the expanded development of ALTO-207 [1] Company Overview - Alto Neuroscience is a clinical-stage biopharmaceutical company focused on developing novel precision medicines for neuropsychiatric disorders [1] Financial Aspects - The recent $50 million private placement will facilitate the advancement of ALTO-207 [1]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Alto Neuroscience, Inc. (NYSE:ANRO) on behalf of long-term stockholders due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1][6]. Company Overview - Alto Neuroscience, Inc. is facing scrutiny following a class action complaint filed on July 21, 2025, concerning the period from February 2, 2024, to October 22, 2024 [1]. - The complaint alleges that the Offering Documents related to Alto's IPO were negligently prepared and that the effectiveness of ALTO-100 in treating Major Depressive Disorder (MDD) was overstated [6]. Financial Impact - On October 22, 2024, Alto announced that ALTO-100 did not meet its primary endpoint in a Phase 2b trial for MDD, leading to a significant stock price drop of $10.17 per share, or 69.99%, closing at $4.36 per share on October 23, 2024 [6].

Core Viewpoint - Alto Ingredients, Inc. is actively engaging with investors by participating in the LD Micro Main Event XIX, indicating a focus on investor relations and market presence [1]. Company Overview - Alto Ingredients, Inc. (NASDAQ: ALTO) is a prominent producer and distributor of specialty alcohols, renewable fuels, and essential ingredients [2]. - The company serves a diverse range of markets, including Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels [2]. Event Participation - Management plans to present at the LD Micro Main Event XIX on October 21, 2025, at 1:00 pm PT, and will also conduct one-on-one meetings with investors [1]. - Presentation materials and a webcast will be available on the company's website [1].

Core Insights - Alto Ingredients, Inc. welcomes the signing of Assembly Bill 30, which authorizes the sale of E15 fuel in California, enabling the company to meet the rising demand for affordable, domestically produced ethanol blends while supporting clean energy goals [1][2][3] Company Positioning - With the approval of E15 fuel sales, ethanol consumption in California could increase by over 600 million gallons annually, positioning Alto Ingredients to leverage its production capacity of up to 350 million gallons of low carbon ethanol [2] - The CEO of Alto Ingredients commended the legislation for expanding consumer choice and promoting lower-carbon fuel options, indicating that it validates the role of American ethanol and encourages investment in infrastructure and job creation [3] Industry Impact - The legislation is expected to support California's evolving low carbon transportation fuels market, aligning with the state's ambitious climate objectives [1][2][3]

Group 1 - The company is responsible for the development of transcript-related projects and publishes thousands of quarterly earnings calls each quarter [1] - The coverage of transcript-related content is continuing to grow and expand [1] - The purpose of the profile is to share new developments related to transcripts with readers [1]

Core Insights - Alto Ingredients, Inc. is set to participate in the H.C. Wainwright 27th Annual Global Investment Conference on September 9, 2025, in New York City [1] - The company will conduct one-on-one meetings and present at 9:00 am ET, with presentation materials and webcast available on their website [2] Company Overview - Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving various markets including Health, Home & Beauty, Food & Beverage, Industry & Agriculture, Essential Ingredients, and Renewable Fuels [3]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS.) The unaudited statements show decreased net sales, a shift to a gross loss, and a significantly wider net loss year-over-year Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $149,725 | $153,118 | | **Total Assets** | $393,065 | $401,438 | | **Total Current Liabilities** | $42,513 | $57,804 | | **Long-term debt, net** | $118,323 | $92,904 | | **Total Liabilities** | $185,220 | $176,375 | | **Total Stockholders' Equity** | $207,845 | $225,063 | Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $218,436 | $236,468 | $444,976 | $477,097 | | **Gross profit (loss)** | $(1,937) | $7,553 | $(3,744) | $5,153 | | **Loss from operations** | $(8,108) | $(1,408) | $(17,105) | $(11,740) | | **Net loss** | $(10,997) | $(3,106) | $(22,676) | $(14,831) | | **Net loss per share** | $(0.15) | $(0.05) | $(0.31) | $(0.21) | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(19,079) | $(12,299) | | **Net cash used in investing activities** | $(10,534) | $(12,097) | | **Net cash provided by financing activities** | $23,893 | $7,327 | | **Net change in cash** | $(5,720) | $(17,069) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the $7.6 million Kodiak Carbonic acquisition, segment performance shifts, increased debt, and commodity hedging activities - On January 1, 2025, the company acquired Kodiak Carbonic, LLC, a beverage-grade liquid CO2 processor, for **$7.6 million in cash** to achieve further vertical integration[27](index=27&type=chunk)[38](index=38&type=chunk) - Long-term debt increased to **$118.3 million** as of June 30, 2025, from $92.9 million at December 31, 2024, primarily due to increased borrowings on the Kinergy line of credit[55](index=55&type=chunk) - The company recognized net gains of **$4.4 million** and **$11.6 million** from non-designated commodity hedging contracts for the six months ended June 30, 2025 and 2024, respectively[51](index=51&type=chunk)[179](index=179&type=chunk) Gross Profit (Loss) by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Pekin Campus production** | $(5,845) | $10,144 | $(8,920) | $14,410 | | **Marketing and distribution** | $4,002 | $3,172 | $7,916 | $6,702 | | **Western production** | $1,858 | $(3,761) | $601 | $(12,347) | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Adjusted EBITDA improved by nearly $6.0 million YoY in Q2 2025 due to cost savings and operational enhancements [Financial Review, Current Initiatives and Outlook](index=24&type=section&id=Financial%20Review%2C%20Current%20Initiatives%20and%20Outlook) Adjusted EBITDA improved by nearly $6.0 million YoY despite a net loss, with a focus on high-return projects and Section 45Z tax credits - **Adjusted EBITDA improved by nearly $6.0 million** in Q2 2025 compared to Q2 2024, driven by rightsizing corporate overhead and other efficiency initiatives[94](index=94&type=chunk) - The Western assets segment became profitable, with **gross profit improving by $5.6 million** year-over-year, due to the CO2 facility acquisition and the decision to cold-idle the Magic Valley facility[96](index=96&type=chunk) - The company expects to benefit from the Section 45Z tax credits, estimating up to **$4.0 million in 2025** and **$8.0 million in 2026** for its Colombia plant, with plans to increase credits across all eligible facilities[103](index=103&type=chunk) - A new Illinois law (Senate Bill 1723) **prohibits CO2 sequestration through the Mahomet aquifer**, impacting the company's current carbon capture and storage (CCS) project plans[101](index=101&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2025 saw a 7.6% YoY decrease in net sales and a wider net loss, driven by lower prices and operational issues - The decline in Q2 gross profit was primarily due to a net unfavorable change of **$5.6 million in derivatives**, **$5.5 million from lower market crush margins**, and a **$2.7 million adverse impact** from a loading dock outage[129](index=129&type=chunk)[130](index=130&type=chunk)[132](index=132&type=chunk) - The Pekin Campus segment's gross profit **declined by $16.0 million YoY** in Q2, while the Western Production segment's gross profit **improved by $5.3 million**[133](index=133&type=chunk)[136](index=136&type=chunk) Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $218,436 | $236,468 | $(18,032) | (7.6)% | | **Gross profit (loss)** | $(1,937) | $7,553 | $(9,490) | NM | | **SG&A expenses** | $6,171 | $8,961 | $(2,790) | (31.1)% | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity for the next twelve months with $30.5 million in cash and available credit - The company believes it has **sufficient liquidity** to meet its needs for at least the next twelve months, with $4.8 million available under its line of credit and $65.0 million potentially available for capital projects[155](index=155&type=chunk) - For the six months ended June 30, 2025, cash used in operations was **$19.1 million**, cash used in investing was **$10.5 million**, and cash provided by financing was **$23.9 million**[161](index=161&type=chunk) Liquidity Position (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents and restricted cash** | $30,491 | $36,211 | | **Working capital** | $107,212 | $95,314 | | **Long-term debt, noncurrent portion** | $118,323 | $92,904 | [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) The company faces significant commodity price risk, with a 10% adverse change potentially impacting pre-tax income by over $12 million - The company's business is sensitive to price changes in ethanol and corn, and it uses derivative instruments to manage this risk[174](index=174&type=chunk)[178](index=178&type=chunk) Market Risk Sensitivity Analysis (Pre-Tax Income Impact) | Commodity | Hypothetical Adverse Change | Approximate Impact (in millions) | | :--- | :--- | :--- | | **Ethanol** | 10% | $(13.5) | | **Corn** | 10% | $(12.9) | [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[181](index=181&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[182](index=182&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) Ordinary course legal proceedings are not expected to have a material adverse effect on the company's financials - The company is subject to ordinary course legal proceedings but **does not expect them to have a material adverse impact** on its financial condition or operations[186](index=186&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS.) The company faces significant business, financial, and regulatory risks, including commodity volatility and CCS project hurdles [Risks Related to our Business](index=42&type=section&id=Risks%20Related%20to%20our%20Business) Profitability is highly dependent on volatile commodity spreads, and the business is exposed to operational disruption risks - The company's results are **highly dependent on its ability to manage volatile commodity prices** for inputs like corn and natural gas against the prices of its alcohol and essential ingredient products[189](index=189&type=chunk) - Disruptions in production or distribution, such as the damage to the Pekin Campus loadout dock in April 2025, can **negatively impact logistics and increase costs**[199](index=199&type=chunk) - The company may suffer losses from hedging activities, which are used to mitigate price volatility but also **expose the company to counterparty and market risks**[196](index=196&type=chunk)[197](index=197&type=chunk) [Risks Related to our Finances](index=47&type=section&id=Risks%20Related%20to%20our%20Finances) A history of net losses, substantial indebtedness, and significant execution risks for capital projects threaten financial stability - The company has a history of significant losses, including a **consolidated net loss of $23.3 million** for the first six months of 2025[211](index=211&type=chunk) - The Carbon Capture and Storage (CCS) project is subject to significant risks, including regulatory hurdles and new Illinois legislation (Senate Bill 1723) that **prohibits sequestration through the Mahomet aquifer**, impacting current plans[212](index=212&type=chunk)[213](index=213&type=chunk) - The ability to qualify for and receive anticipated **Section 45Z tax credits is uncertain** and depends on producing low carbon fuel at specific volumes and carbon intensities[218](index=218&type=chunk) [Risks Related to Legal and Regulatory Matters](index=49&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) Dependence on renewable fuel mandates and new state laws impacting the CCS project pose significant regulatory risks - The domestic market for fuel-grade ethanol is **significantly impacted by federal mandates**, and any changes to these regulations could materially harm results[233](index=233&type=chunk) - The company's CCS project may be adversely affected by the SAFE CCS Act and Illinois Senate Bill 1723, which impose new safety requirements, a **moratorium on pipeline construction**, and prohibit sequestration in a key aquifer[227](index=227&type=chunk)[228](index=228&type=chunk) - The recent Supreme Court decision overturning the Chevron doctrine may result in **less favorable agency interpretations of laws and regulations**, potentially affecting the Renewable Fuel Standard and tax credits[240](index=240&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) The company reported no unregistered sales, withheld shares for tax obligations, and does not plan to pay dividends - **No unregistered sales of equity securities** occurred during the period[257](index=257&type=chunk) - The company **does not intend to pay cash dividends** on its common stock in the foreseeable future[263](index=263&type=chunk) Repurchases of Equity Securities (Q2 2025) | Month | Number of Shares Withheld | Deemed Purchase Price Per Share | Aggregate Purchase Price | | :--- | :--- | :--- | :--- | | **April** | 340,886 | $1.12 | $381,792 | | **May** | — | $— | $— | | **June** | — | $— | $— | [Defaults Upon Senior Securities](index=56&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) The company reports no defaults upon senior securities during the period - There were **no defaults upon senior securities**[265](index=265&type=chunk) [Mine Safety Disclosures](index=56&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) The company has no mine safety disclosures to report for the period - There are **no mine safety disclosures**[266](index=266&type=chunk) [Other Information](index=56&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) No directors or officers reported the adoption or termination of Rule 10b5-1 trading arrangements during the quarter - **No directors or officers reported** the adoption or termination of a Rule 10b5-1 trading arrangement during the quarter[267](index=267&type=chunk) [Exhibits](index=57&type=section&id=ITEM%206.%20EXHIBITS.) The filing includes required CEO/CFO certifications and Inline XBRL data files as exhibits - The report includes required certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1) and XBRL data files[268](index=268&type=chunk)

Financial Performance - Alto Ingredients reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.18, but worse than a loss of $0.05 per share a year ago, indicating an earnings surprise of +16.67% [1] - The company posted revenues of $218.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.10%, but down from $236.47 million in the same quarter last year [2] - Over the last four quarters, Alto Ingredients has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - Alto Ingredients shares have declined approximately 33.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Alto Ingredients is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $238.64 million, and for the current fiscal year, it is -$0.39 on revenues of $937.57 million [7] - The estimate revisions trend for Alto Ingredients was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Consumer Products - Discretionary industry, to which Alto Ingredients belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by nearly $6,000,000 compared to the previous year, reflecting successful productivity initiatives [6] - Consolidated net loss was $11,300,000 for Q2 2025, compared to a net loss of $3,400,000 in Q2 2024, primarily due to higher unrealized non-cash derivative losses and lower crush margins [21] - Net sales were $218,000,000, which is $18,000,000 lower than the prior year due to fewer gallons sold and lower average prices [17] Business Line Data and Key Metrics Changes - Sold 86,700,000 gallons compared to 95,100,000 gallons in the same quarter last year, reflecting a rationalization of unprofitable business [17] - Gross profit improved by $5,600,000 at Western facilities, with the addition of the Alto Carbonic Liquid CO2 Processing Facility contributing to a $3,000,000 improvement at the Columbia plant [21] - The Marketing and Distribution segment improved due to the integration of bulk volume customers and transitioning away from low-return businesses [8] Market Data and Key Metrics Changes - The annual uptick in demand from the summer driving season helped lift ethanol prices and improved crush spreads, with market crush averaging $0.30 per gallon for July [14][18] - The 45Z credit extensions through 2029 and new eligibility restrictions are expected to benefit domestic renewable fuel production [11] - Current carbon intensity scores indicate that Columbia will qualify for 10¢ per gallon for 2025 and up to 20¢ for 2026, equating to approximately $4,000,000 in 2025 and $8,000,000 in 2026 [12] Company Strategy and Development Direction - The company is focusing on short-term projects with immediate returns while laying groundwork for longer-term capital-intensive projects [7] - Evaluating projects to lower carbon intensity and capture benefits from 45Z regulations, as well as improving efficiency and productivity [7][24] - The regulatory environment is seen as positive, creating opportunities for the company to capitalize on [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements and the potential for positive margins for the remainder of the summer [14] - The company is working on alternatives for CO2 sequestration following regulatory changes and is focused on optimizing the value of CO2 production [7][11] - Management highlighted the importance of repairing the dock to restore operational efficiency and capitalize on European sales opportunities [29] Other Important Information - The company has rightsized corporate overhead to align with its current footprint, aiming for annual savings of approximately $8,000,000 [9] - The annual meeting of stockholders resulted in the election of two new board members and the appointment of a new Chairman and Vice Chair [16] - The company is actively working with Guggenheim on Western asset optimization and monetization plans [24] Q&A Session Summary Question: Outlook for operational benefits from the Carbonic acquisition - Management indicated that there is still substantial capacity for growth at the Carbonic facility, with room to increase production [27][28] Question: Impact of dock damage on export strategy to Europe - Management confirmed that while dock damage has created challenges, they have developed workarounds and are exceeding initial sales projections for Europe [29][30] Question: Clarification on the Eagle Alcohol improvement - Management clarified that the $1,100,000 improvement was a one-time event related to deferred acquisition costs [34] Question: Further reductions in SG&A - Management noted ongoing efforts to scrutinize spending and negotiate better terms with suppliers, which collectively will have a meaningful impact [36] Question: Details on the Western asset monetization process - Management stated that they are in discussions with prospective buyers and evaluating opportunities, with the process taking time due to the unique nature of the assets [44][45]

Financial Performance - Western asset gross profit improved by $56 million from a loss of $(38) million in Q2 2024 to a profit of $18 million in Q2 2025[31] - Adjusted EBITDA improved by $57 million, from $(59) million to $(02) million comparing Q2 2024 to Q2 2025[32, 34] - The company's borrowing availability was $70 million as of June 30, 2025, including $5 million under the operating line and $65 million under the term loan facility[33] Regulatory and Market Opportunities - The 45Z credit is extended through the end of 2029, increasing the focus on domestic production[14] - National year-round E15 adoption could potentially increase U S ethanol demand by 50%, or 5-7 billion gallons annually[14] - California could see an increase of approximately 670 million gallons per year in ethanol demand when transitioning from E10 to E15, pending approval[14] Strategic Initiatives - The company is applying for 45Z credits for Alto Columbia and Alto Pekin Dry Mill, estimated to total approximately $18 million over the next two years[15] - The company is prioritizing projects to lower carbon intensity to capture more benefits from 45Z[7] - The company aims to increase CO2 utilization at the Pekin campus and at Columbia, building upon the successful Carbonic acquisition[7]