Alto Ingredients Inc (ALTO)

[ADVFN_jk1550]

Good question ID.
What the company set up is an accrual account against which the outstanding would be written off as the warrants become exercised in
2014. Depending on what prices these warrants these are exercised the accrual may be topped up which in that case there would be a hit to profit. If on the other hand share prices stay around current range then we may see an adjustment that would have a positive effect on profitability.
I just read a good summary by Kel3 summarizing the likely market environment that would persist over the next 12 months. If this prove accurate and we were to climb to say $20.00 then I see much smaller hits to the p/l statements. As you can see from the list of outstanding options some of these don't expire till 2018. depending on what these warrant holder think the pps trend would be in the future would determine how soon management would be able to declare
juicy eps.
I hope this helps.