Alto Ingredients Inc (ALTO)

[researcher59]

Hebercreeper: I'm wondering how the accounting handles the warrant exercises. Right now there's a $32M warrant liability on the balance sheet that's adjusted quarterly. Once the warrants have all been exercised it will be down to zero.

So just hypothetically to clarify the accounting treatment, regardless of the stock price on June 30th, if the warrants were all exercised, it seems that there'd be a $32M income credit (to wipe out the balance sheet liability) as well as the cash inflow from the exercises and an increase in basic share count. Is that how it works ?