Alto Ingredients Inc (ALTO)

[kel3]

Unrealized Gains Three Months Ended March 31,

Type of Instrument Commodity contracts

The Company uses derivative instruments to lock in prices for certain amounts of corn and ethanol by entering into forward contracts for those commodities. These derivatives are not designated for special hedge accounting treatment. The changes in fair value of these contracts are recorded on the balance sheet and recognized immediately in cost of goods sold. The Company recognized gains of $134,000 and $28,000 as the change in the fair value of these contracts for the three months ended March 31, 2012 and 2011, respectively. The notional balances remaining on these contracts were $1,678,000 and $9,186,000 as of March 31, 2012 and December 31, 2011, respectively.2012

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8610605-21156-48916&type=sect&dcn=0001019687-12-001720