Alico, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2017

The following table presents accounts receivable, net for fiscal years ended September 30, 2017 and 2016:



(in thousands)	September 30,
	2017			2016
Accounts receivable	$	4,314		$	4,753
Allowance for doubtful accounts	(28		)	(13		)
Accounts receivable, net	$	4,286		$	4,740

Schedule of Revenues and Accounts Receivable From Major Customers

Accounts receivable from the Company’s major customers as of September 30, 2017 and 2016 and revenue for the fiscal years ended September 30, 2017, 2016 and 2015, are as follows:



(in thousands)	Accounts Receivable				Revenue						% of Total Revenue
	2017		2016		2017		2016		2015		2017		2016		2015
Tropicana	$	2,506	$	1,710	$	111,197	$	46,898	$	21,925	85.6	%	32.5	%	14.3	%
Cutrale Citrus Juice	$	—	$	—	$	1,364	$	22,735	$	23,556	1.1	%	15.8	%	15.4	%
Minute Maid	$	—	$	—	$	—	$	49,271	$	57,484	—	%	34.2	%	37.5	%
Louis Dreyfus	$	—	$	—	$	—	$	—	$	22,460	—	%	—	%	14.7	%

Schedule of Estimated Useful Lives For Property and Equipment

The estimated useful lives for property and equipment are primarily as follows:



Citrus trees	25 years
Equipment and other facilities	3-20 years
Buildings and improvements	25-39 years
Breeding herd	5-7 years

Schedule of Reconciliation of Basic to Diluted Weighted Average Shares Outstanding

The following table presents a reconciliation of basic to diluted weighted average common shares outstanding for fiscal years ended September 30, 2017, 2016 and 2015:



(in thousands)	Fiscal Year Ended September 30,
	2017	2016	2015
Weighted Average Common Shares Outstanding - Basic	8,300	8,303	8,056
Effect of dilutive securities - stock options and unrestricted stock	—	8	5
Weighted Average Common Shares Outstanding - Diluted	8,300	8,311	8,061

Schedule of Stock Options Using Valuation Assumptions

The fair value of the Option Grants was estimated on the date of grant using a Monte Carlo valuation model that uses the assumptions noted in the following table. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the range given below results from different time-frames for the various market conditions being met.



Expected Volatility	32.19	%
Expected Term (in years)	2.6 - 4.0
Risk Free Rate	2.45	%

Schedule of Stock-based Compensation Expense

Total stock-based compensation expense for the three years ended September 30, 2017 in general and administrative expense was as follows:



(in thousands)	Fiscal Year Ended September 30,
	2017		2016		2015
Stock compensation expense:
Executives	$	880	$	150	$	55
Board of Directors	773		774		762
Members	—		—		135
Total stock compensation expense	$	1,653	$	924	$	952

- Definition

Tabular disclosure of an equity-based arrangement (such as stock or unit options and stock or unit awards) with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain equity-based awards at future dates, sometimes including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares or units issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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