17. PARENT COMPANY FINANCIALS

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY FINANCIALS

Pacific Ethanol, Inc.

Condensed Financial Information of the Registrant

Balance Sheets - Parent Company Only

(in thousands)

	December 31,
	2015			2014
Cash and cash equivalents	$	20,618		$	23,915
Receivables from consolidated subsidiaries		14,505			8,547
Other current assets		11,361			8,647
Total current assets		46,484			41,109
Property and equipment, net		1,695			2,572
Investments in consolidated subsidiaries		301,416			154,134
Pacific Ethanol West plant term debt		41,763			41,763
Other assets		838			1,933
Total other assets		344,017			197,830
Total Assets	$	392,196		$	241,511
Accounts payable and accrued liabilities	$	1,963		$	2,347
Payables to consolidated subsidiaries		13,230			3,526
Accrued PE Op Co. purchase		3,828			–
Total current liabilities		19,021			5,873
Warrant liabilities at fair value		273			1,986
Deferred tax liabilities		1,174			15,434
Other liabilities		184			236
Total Liabilities		20,652			23,529
Preferred stock		1			1
Non-voting common stock		4			–
Common stock		39			25
Additional paid-in capital		902,843			725,813
Accumulated other comprehensive income		1,040			–
Accumulated deficit		(532,383	)		(512,332	)
Total Pacific Ethanol, Inc. stockholders' equity		371,544			213,507
Noncontrolling interests		–			4,475
Total stockholders' equity		371,544			217,982
Total Liabilities and Stockholders' Equity	$	392,196		$	241,511

Pacific Ethanol, Inc.

Condensed Financial Information of the Registrant

Statements of Operations - Parent Company Only

(in thousands)

	Years Ended December 31,
	2015			2014			2013
Management fees from subsidiaries	$	9,857		$	12,731		$	9,837
Selling, general and administrative expenses		(14,336	)		(12,779	)		(10,188	)
Asset impairments		(1,970	)		–			–
Loss from operations		(6,449	)		(48	)		(351	)
Fair value adjustments and warrant inducements		1,641			(37,532	)		(1,013	)
Interest income		5,739			4,753			5,088
Interest expense		(27	)		(1,813	)		(3,912	)
Loss on extinguishments of debt		–			(2,363	)		(9,481	)
Income (loss) before provision for income taxes		904			(37,003	)		(9,669	)
Provision for income taxes		–			–			–
Income before equity earnings of subsidiaries		904			(37,003	)		(9,669	)
Equity earnings of consolidated subsidiaries		(19,690	)		58,292			8,888
Consolidated net income (loss)	$	(18,786	)	$	21,289		$	(781	)

Pacific Ethanol, Inc.

Condensed Financial Information of the Registrant

Statements of Cash Flows - Parent Company Only

(in thousands)

	Years Ended December 31,
	2015			2014			2013
Operating Activities:
Net income (loss)	$	(18,786	)	$	21,289		$	(781	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Equity Earnings		19,690			(58,292	)		(8,888	)
Depreciation and amortization		390			126			104
Fair value adjustments		(1,641	)		35,260			(648	)
Loss on extinguishments of debt		–			2,363			9,481
Asset impairments		1,970			–			–
Deferred income taxes		(14,260	)		5,128			–
Amortization of debt discount		–			1,674			(179	)
Changes in operating assets and liabilities:
Accounts receivables		(5,958	)		(7,001	)		(495	)
Other assets		5,895			(13,772	)		828
AP and accruals		604			(587	)		(1,358	)
Accounts payable with subsidiaries		11,179			5,846			1,724
Net cash used in operating activities	$	(917	)	$	(7,966	)	$	(212	)
Investing Activities:
Additions to property and equipment	$	(1,483	)	$	(455	)	$	(72	)
Purchase of PE OP Co. Ownership		–			(6,000	)		(2,340	)
Net cash used in Investing activities	$	(1,483	)	$	(6,455	)	$	(2,412	)
Financing Activities:
Preferred stock Dividends	$	(1,265	)	$	(3,459	)	$	(1,265	)
Proceeds from Equity Raise		–			26,073			–
Proceeds from issuance of senior notes		–			–			22,192
Proceeds from issuance of convertible notes		–			–			14,000
Payment on related party Note		–			(750	)		–
Payments on senior notes		–			(13,984	)		(6,208	)
Purchase of PE OP Co. debt		–			(17,038	)		(27,088	)
Proceeds from exercise of warrants		368			43,676			2,064
Net Cash (used in) provided by financing activities	$	(897	)	$	34,518		$	3,695
Net (decrease) increase in cash and equivalents		(3,297	)		20,097			1,071
Cash and equivalents at beginning of period		23,915			3,818			2,747
Cash and equivalents at ending of period	$	20,618		$	23,915		$	3,818

Restricted Net Assets – At December 31, 2015, the Company had approximately $164.0 million of net assets at its subsidiaries that were not available to be transferred to the Parent company in the form of dividends, loans or advances due to restrictions contained in the credit facilities of these subsidiaries.