Alto Ingredients Inc (ALTO)

[ADVFN_jk1550]

ID
I shall be off to bed soon so I will make some short cut in my explanation
I believe if you review average pps around the massive conversion period you would find pps to be between $14-15+ range.
Of this amount warrant holder paid approx $7.25. So if price of share is say 14.50-7.25 = $7.25 per share that needs to be accounted for. Company puts the money it received into cash to the balance sheet account and sets up an accrual account in the balance sheet to write of the balance of the money if cannot collect from warrant holders.
7.25 x 5.5 million = approx $40 million.
Lots of assumptions but does the reasoning behind the set up help?