Letters of Credit

The Company had outstanding standby letters of credit in the total amount of approximately $236,000 and $399,000 at March 31, 2021 and September 30, 2020, respectively, to secure its various contractual obligations.

Legal Proceedings

From time to time, Alico may be involved in litigation relating to claims arising out of its operations in the normal course of business. There are no current legal proceedings to which the Company is a party or of which any of its property is subject that it believes will have a material adverse effect on its financial position, results of operations or cash flows.

Purchase Commitments

The Company enters contracts for the purchase of citrus trees during the normal course of its business. As of March 31, 2021, the Company had approximately $2,581,000 relating to outstanding commitments for these purchases that will be paid upon delivery of the remaining citrus trees.