PARENT COMPANY FINANCIALS.

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIALS.

11. PARENT COMPANY FINANCIALS.

Restricted Net Assets – At September 30, 2019, the Company had approximately $184,763,000 of net assets at its subsidiaries that were not available to be transferred to Pacific Ethanol in the form of dividends, distributions, loans or advances due to restrictions contained in the credit facilities of these subsidiaries.

Parent company financial statements for the periods covered in this prospectus are set forth below (in thousands):

	September 30, 2019			December 31, 2018
Current Assets:
Cash and cash equivalents	$	5,658		$	6,759
Receivables from subsidiaries		12,270			17,156
Other current assets		1,183			1,659
Total current assets		19,111			25,574
Property and equipment, net		308			522
Other Assets:
Investments in subsidiaries		249,641			286,666
Pacific Ethanol West plant receivable		55,750			58,766
Right of use operating lease assets, net		3,318			—
Other assets		1,529			1,437
Total other assets		310,238			346,869
Total Assets	$	329,657		$	372,965
Current Liabilities:
Accounts payable and accrued liabilities	$	2,437		$	2,469
Accrued PE Op Co. purchase		3,829			3,829
Current portion of long-term debt		62,866			66,255
Other current liabilities		587			385
Total current liabilities		69,719			72,938
Operating leases, net of current portion		3,108			—
Deferred tax liabilities		251			251
Other liabilities		—			9
Total Liabilities		73,078			73,198
Stockholders' Equity:
Preferred stock		1			1
Common and non-voting common stock		50			46
Additional paid-in capital		937,795			932,179
Accumulated other comprehensive loss		(2,459	)		(2,459	)
Accumulated deficit		(678,808	)		(630,000	)
Total Pacific Ethanol, Inc. stockholders' equity		256,579			299,767
Total Liabilities and Stockholders' Equity	$	329,657		$	372,965

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Management fees from subsidiaries	$	3,330		$	3,330		$	9,660		$	9,738
Selling, general and administrative expenses		3,827			3,181			11,374			13,069
Income (loss) from operations		(497	)		149			(1,714	)		(3,331	)
Interest income		1,145			1,185			3,486			3,518
Interest expense		(2,276	)		(2,171	)		(7,039	)		(6,458	)
Other expense		(4	)		(4	)		(86	)		—
Loss before benefit for income taxes		(1,632	)		(841	)		(5,353	)		(6,271	)
Benefit for income taxes		—			—			—			563
Loss before benefit for income taxes		(1,632	)		(841	)		(5,353	)		(5,708	)
Equity in losses of subsidiaries		(25,694	)		(6,673	)		(42,509	)		(22,555	)
Consolidated net loss	$	(27,326	)	$	(7,514	)	$	(47,862	)	$	(28,263	)

	For the Nine Months Ended September 30,
	2019			2018
Operating Activities:
Net loss	$	(47,862	)	$	(28,263	)
Adjustments to reconcile net loss to cash used in operating activities:
Equity in losses of subsidiaries		42,509			22,555
Depreciation		227			481
Deferred income taxes		—			563
Amortization of debt discounts		539			357
Changes in operating assets and liabilities:
Accounts receivables		(114	)		(5,062	)
Other assets		173			2,489
Accounts payable and accrued expenses		1,950			5
Accounts payable with subsidiaries		(502	)		(622	)
Net cash used in operating activities	$	(3,080	)	$	(7,497	)
Investing Activities:
Dividend from subsidiaries	$	—		$	10,000
Contributions to subsidiaries		—			(5,000	)
Additions to property and equipment		(13	)		(6	)
Net cash provided by (used in) investing activities	$	(13	)	$	4,994
Financing Activities:
Proceeds from issuances of common stock	$	3,670		$	—
Proceeds from Pacific Ethanol West		3,016			—
Payments on senior notes		(3,748	)		—
Preferred stock dividend payments		(946	)		(946	)
Net cash provided by (used in) financing activities	$	1,992		$	(946	)
Net decrease in cash and cash equivalents		(1,101	)		(3,449	)
Cash and cash equivalents at beginning of period		6,759			5,314
Cash and cash equivalents at end of period	$	5,658		$	1,865

16. PARENT COMPANY FINANCIALS.

Restricted Net Assets – At December 31, 2018, the Company had approximately $190,200,000 of net assets at its subsidiaries that were not available to be transferred to Pacific Ethanol in the form of dividends, distributions, loans or advances due to restrictions contained in the credit facilities of these subsidiaries.

Parent company financial statements for the periods covered in this report are set forth below.

	December 31,
	2018			2017
ASSETS
Current Assets:
Cash and cash equivalents	$	6,759		$	5,314
Receivables from subsidiaries		17,156			3,138
Other current assets		1,659			1,631
Total current assets		25,574			10,083
Property and equipment, net		522			1,071
Other Assets:
Investments in subsidiaries		286,666			359,680
Pacific Ethanol West plant receivable		58,766			58,766
Other assets		1,437			1,565
Total other assets		346,869			420,011
Total Assets	$	372,965		$	431,165
Current Liabilities:
Accounts payable and accrued liabilities	$	2,469		$	2,218
Payable to subsidiaries		—			625
Accrued PE Op Co. purchase		3,829			3,828
Current portion of long-term debt		66,255			—
Other current liabilities		385			245
Total current liabilities		72,938			6,916
Long-term debt, net		—			67,530
Deferred tax liabilities		251			224
Other liabilities		9			56
Total Liabilities		73,198			74,726
Stockholders' Equity:
Preferred stock		1			1
Common and non-voting common stock		46			44
Additional paid-in capital		932,179			927,090
Accumulated other comprehensive loss		(2,459	)		(2,234	)
Accumulated deficit		(630,000	)		(568,462	)
Total Pacific Ethanol, Inc. stockholders' equity		299,767			356,439
Total Liabilities and Stockholders' Equity	$	372,965		$	431,165

	Years Ended December 31,
	2018			2017			2016
Management fees from subsidiaries	$	12,408		$	11,904		$	12,968
Selling, general and administrative expenses		16,795			18,185			14,491
Loss from operations		(4,387	)		(6,281	)		(1,523	)
Fair value adjustments		—			473			(557	)
Interest income		4,703			4,793			5,964
Interest expense		(8,678	)		(5,829	)		(240	)
Other income (expense), net		(74	)		(95	)		1,931
Income (loss) before provision (benefit) for income taxes		(8,436	)		(6,939	)		5,575
Provision (benefit) for income taxes		(562	)		(321	)		(981	)
Income (loss) before equity in earnings of subsidiaries		(7,874	)		(6,618	)		6,556
Equity in losses of subsidiaries		(52,399	)		(28,346	)		(5,137	)
Consolidated net income (loss)	$	(60,273	)	$	(34,964	)	$	1,419

	For the Years Ended December 31,
	2018			2017			2016
Operating Activities:
Net income (loss)	$	(60,273	)	$	(34,964	)	$	1,419
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Equity in losses of subsidiaries		52,399			28,346			5,137
Dividends from subsidiaries		25,000			3,500			—
Depreciation		567			830			727
Fair value adjustments		—			(473	)		557
Deferred income taxes		27			169			(1,122	)
Amortization of debt discounts		720			636			10
Changes in operating assets and liabilities:
Accounts receivables		(9,018	)		4,065			7,302
Other assets		100			4,356			4,647
Accounts payable and accrued expenses		740			3,859			(3,741	)
Accounts payable with subsidiaries		2,409			(943	)		(9,385	)
Net cash provided by operating activities	$	12,671		$	9,381		$	5,551
Investing Activities:
Additions to property and equipment	$	(18	)	$	(468	)	$	(465	)
Investments in subsidiaries		(10,000	)		(28,126	)		(50,886	)
Purchase of PE OP Co. debt		—			—			(17,003	)
Net cash used in investing activities	$	(10,018	)	$	(28,594	)	$	(68,354	)
Financing Activities:
Proceeds from issuances of senior notes	$	—		$	13,530		$	53,350
Proceeds from issuance of common stock		2,057			—			—
Proceeds from warrant stock option exercises		—			1,202			1,164
Payments on senior notes		(2,000	)		—			—
Preferred stock dividend payments		(1,265	)		(1,265	)		(1,269	)
Net cash provided by (used in) financing activities	$	(1,208	)	$	13,467		$	53,245
Net increase (decrease) in cash and cash equivalents		1,445			(5,746	)		(9,558	)
Cash and cash equivalents at beginning of period		5,314			11,060			20,618
Cash and cash equivalents at end of period	$	6,759		$	5,314		$	11,060