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Segments
 6 Months Ended
Jun. 30, 2025
Segments [Abstract]  
SEGMENTS
3.SEGMENTS.

 

A segment is a component of an enterprise whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s CODM is the Company’s executive committee, which is led by the Company’s Chief Executive Officer (“CEO”) and includes its Chief Financial Officer, Chief Operating Officer, Chief Commercial Officer and Chief Legal Officer (“Executive Committee”). The Company manages and assesses the performance of its reportable segments by its gross profit (loss). As part of the Executive Committee’s review of segment-level performance, each member of the Executive Committee reviews the gross profit of the Company’s reportable segments and provides expertise and analysis from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the Executive Committee.

 

The Company reports financial and operating performance in three reportable segments (1) Pekin production, which includes the entire campus in Pekin, Illinois (“Pekin Campus”), (2) marketing and distribution, which includes marketing and merchant trading for Company-produced specialty alcohols, fuel-grade ethanol 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 CO2 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.

The following tables set forth certain financial data for the Company’s operating segments (in thousands):

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Net Sales                
Pekin Campus production, recorded as gross:                
Alcohol sales  $94,155   $100,687   $201,390   $209,035 
Essential ingredient sales   39,565    39,371    84,183    86,080 
Intersegment sales   183    286    481    606 
Total Pekin Campus sales   133,903    140,344    286,054    295,721 
                     
Marketing and distribution:                    
Alcohol sales, gross  $58,106   $70,157   $107,101   $124,587 
Alcohol sales, net   80    64    142    98 
Intersegment sales   2,334    2,388    4,840    5,140 
Total marketing and distribution sales   60,520    72,609    112,083    129,825 
                     
Western production, recorded as gross:                    
Alcohol sales  $16,604   $17,456   $32,798   $37,690 
Essential ingredient sales   8,250    5,950    16,058    13,776 
Intersegment sales   505    
—
    769    (130)
Total Western production sales   25,359    23,406    49,625    51,336 
                     
Corporate and other   1,676    2,783    3,304    5,831 
Intersegment eliminations   (3,022)   (2,674)   (6,090)   (5,616)
Net sales as reported  $218,436   $236,468   $444,976   $477,097 
                     
Cost of goods sold:                    
Pekin Campus production  $139,748   $130,200   $294,974   $281,311 
Marketing and distribution   56,518    69,437    104,167    123,123 
Western production   23,501    27,167    49,024    63,683 
Corporate and other   1,705    2,943    3,386    5,738 
Intersegment eliminations   (1,099)   (832)   (2,831)   (1,911)
Cost of goods sold as reported  $220,373   $228,915   $448,720   $471,944 
                     
Gross profit (loss):                    
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)
Corporate and other   (29)   (160)   (82)   93 
Intersegment eliminations   (1,923)   (1,842)   (3,259)   (3,705)
Gross profit (loss) as reported  $(1,937)  $7,553   $(3,744)  $5,153 
                     
Income (loss) before provision for income taxes:                    
Pekin Campus production  $(9,923)  $5,971   $(17,291)  $6,087 
Marketing and distribution   1,795    806    3,359    2,108 
Western production   (1,453)   (5,977)   (5,356)   (16,954)
Corporate and other   (1,416)   (3,906)   (3,388)   (6,072)
   $(10,997)  $(3,106)  $(22,676)  $(14,831)
                     
Depreciation and amortization expense:                    
Pekin Campus production  $5,348   $5,369   $10,804   $10,404 
Western production   843    478    1,483    943 
Corporate and other   172    228    344    455 
   $6,363   $6,075   $12,631   $11,802 
                     
Interest expense, net of capitalized interest:                    
Pekin Campus production  $615   $326   $1,226   $587 
Marketing and distribution   81    98    163    193 
Western production   1,430    598    2,789    1,229 
Corporate and other   685    647    1,362    1,294 
   $2,811   $1,669   $5,540   $3,303 

The following table sets forth the Company’s total assets by operating segment (in thousands): 

 

   June 30,
2025		   December 31,
2024		 
Total assets:        
Pekin Campus production  $212,735   $223,934 
Marketing and distribution   118,773    102,895 
Western production   43,603    44,992 
Corporate and other   17,954    29,617 
   $393,065   $401,438