What the changes say
- Alico is shifting from citrus production to real estate development and diversified farming, terminating its Tropicana agreement and downsizing its workforce.
What changed since the prior 10-K
New
- NewRisks Related to our Business
Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs
The company reduced its workforce by up to 172 employees, incurring $2,638 in charges with risks of lost institutional knowledge and unrealized benefits.
- NewRisks Related to our Business
A significant portion of our revenues are historically derived from our citrus business and our Strategic Transformation involves expected significant revenue shift to real estate development and diversified farming operations and any adverse event affecting these areas could disproportionately harm our business
Citrus accounted for 96.0% of 2025 revenue, but winding down Alico Citrus and terminating the Tropicana contract shifts future revenue to real estate development.
- NewRisks Related to our Business
The land development business is highly competitive, and we cannot assure you that we will maintain our current market share
The land development business is highly competitive against better-capitalized landowners, private equity, and agricultural operators.
- NewRisks Related to our Business
Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
Ownership changes exceeding 50% over three years could limit the utilization of net operating loss carryforwards under Sections 382 and 383.
- NewRisks Related to our Business
Our earnings are sensitive to supply, demand and pricing dynamics for land sales, leasing and development activities, as well as any remaining agricultural products
Earnings depend heavily on cyclical land sales, interest rates, buyer financing, infrastructure costs, and leasing commodity prices.
- NewRisks Related to our Business
Material weaknesses and other control deficiencies relating to our internal control over financial reporting could result in errors in our reported results and could have a material adverse effect on our operations, investor confidence in our business and the trading price of our securities
Past and potential future material weaknesses in internal control over financial reporting could cause financial errors and reduce investor confidence.
Dropped
- DroppedRisks Related to our Business
Our citrus groves are subject to damage and loss from disease including, but not limited to, citrus greening and citrus canker, which could negatively impact our business, financial condition, results of operations and cash flows
Citrus greening and citrus canker damage and loss.
- DroppedRisks Related to our Business
A significant portion of our revenues are derived from our citrus business and any adverse event affecting such business could disproportionately harm our business
Citrus revenue concentration.
- DroppedRisks Related to our Business
Our failure to effectively perform grove management services, or to effectively manage an expanded portfolio of groves, could materially and adversely affect our business, financial condition, and results of operations
Grove management services performance and expansion risks.
- DroppedRisks Related to our Business
Many companies compete in our different businesses and offer products that are similar to our products or are direct competitors to our products. We face strong competition from these and other companies engaged in the agricultural product business
Agricultural product competition.
- DroppedRisks Related to our Business
There can be no assurance that we will continue to compete effectively with our present and future competitors, and our ability to compete could be materially adversely affected by our debt levels and debt service requirements
Tropicana relationship dependency.
- DroppedRisks Related to our Business
Changes in immigration laws could impact our ability to harvest our crops
- DroppedRisks Related to our Business
If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable, we may face adverse consequences, and if the laws applicable to such transactions are amended or repealed, we may not be able to dispose of properties in the future on a tax deferred basis
- DroppedRisks Related to our Business
Our citrus business is seasonal
- DroppedRisks Related to our Business
Our earnings are sensitive to fluctuations in market supply and prices and demand for our products
- DroppedRisks Related to our Business
Increases in labor, personnel and benefits costs could adversely affect our operating results
Immigration law changes impacting harvesters.
- DroppedRisks Related to our Business
life insurance with respect to any of our employees. Our success will be dependent on our ability to continue to attract, employ and retain skilled personnel in our business lines and segments
- DroppedRisks Related to our Business
software and applications that we develop internally or procure from third parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of the system
Section 1031 Exchange tax qualification.
Reworded
- 76% rewrittenRisks Related to our Business
Harm to our reputation could have an adverse effect on our business, financial condition and results of operations
Expanded reputation stakeholders from fruit processors to land buyers, development partners, lessors, tenants, lenders, and community stakeholders.
- 75% rewrittenRisks Related to our Business
System security risks, data protection breaches, cybersecurity incidents and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenues, increase our expenses, damage our reputation and adversely affect our stock price
Updated cybersecurity and IT system risks to match ongoing threat environments without altering core vectors.
- 60% rewrittenRisks Related to our Business
If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected
Updated the Fort Myers grove entitlement process acreage from 4,500 to approximately 4,600 acres in Collier County.
- 54% rewrittenRisks Related to our Business
Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations
Added that climate change regulations have resulted in, as well as may result in, additional legal requirements.
- 51% rewrittenRisks Related to Our Indebtedness
We maintain a significant amount of indebtedness, which could adversely affect our financial condition, results of operations or cash flows, and may limit our operational and financing flexibility and negatively impact our business
Updated outstanding indebtedness principal to $85,950 and revolving line availability to $92,500 as of September 30, 2025.
- 50% rewrittenRisks Related to our Business
We benefit from reduced real estate taxes due to the agricultural classification of a majority of our land. Changes in the classification or valuation methods employed by county property appraisers could cause significant changes in our real estate property tax liabilities
Updated agricultural Green Belt values to $86,434 and fair values to $352,690 based on 2025 figures.
- 41% rewrittenRisks Related to our Business
Macroeconomic conditions, such as rising inflation, armed conflicts and geopolitical instability, and pandemics or health crises could adversely affect our business, financial condition, results of operations and cash flows
Added changes in trade policies, imposition of tariffs, and government shutdowns to macroeconomic risk factors.
Was: Macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and pandemics or health crises could adversely affect our business, financial condition, results of operations and cash flows
- 36% rewrittenRisks Related to our Business
Our business may be adversely affected if we lose key employees
Added explicit language regarding dependence on attracting, employing, and retaining skilled personnel.
- 32% rewrittenRisks Related to Our Indebtedness
Some of our debt is based on variable rates of interest, which could result in higher interest expenses in the event of an increase in the interest rates
- 31% rewrittenRisks Related to our Business
Our agricultural operations are subject to water use regulations restricting our access to water
- 30% rewrittenRisks Related to our Business
Compliance with applicable environmental laws may substantially increase our costs of doing business, which could reduce our profits
- 26% rewrittenRisks Related to our Business
Our agricultural products are subject to supply and demand pricing which is not predictable
- 23% rewrittenRisks Related to our Business
We are subject to the risk of product contamination and product liability claims
- 21% rewrittenRisks Related to our Business
Liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances could increase our costs
- 20% rewrittenRisks Related to our Business
We continuously evaluate the disposition of operating businesses and assets and may in the future undertake one or more significant transactions, which could be material to our business and could take any number of forms, including asset sales, mergers, or the sale of equity interests
All 31 risk factors
Headings as the filing states them, in filing order.
Risks Related to our Business
- 01If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected60% rewritten
- 02Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costsNew
- 03A significant portion of our revenues are historically derived from our citrus business and our Strategic Transformation involves expected significant revenue shift to real estate development and diversified farming operations and any adverse event affecting these areas could disproportionately harm our businessNew
- 04The land development business is highly competitive, and we cannot assure you that we will maintain our current market shareNew
- 05Harm to our reputation could have an adverse effect on our business, financial condition and results of operations76% rewritten
- 06Our ability to use our net operating loss carryforwards and certain other tax attributes may be limitedNew
- 07We continuously evaluate the disposition of operating businesses and assets and may in the future undertake one or more significant transactions, which could be material to our business and could take any number of forms, including asset sales, mergers, or the sale of equity interests20% rewritten
- 08We face significant competition in our agricultural operations
- 09Our earnings are sensitive to supply, demand and pricing dynamics for land sales, leasing and development activities, as well as any remaining agricultural productsNew
- 10Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations54% rewritten
- 11ESG issues, including those related to our workforce and sustainability, may have an adverse effect on our business, financial condition, results of operations, and cash flows and damage our reputation
- 12We benefit from reduced real estate taxes due to the agricultural classification of a majority of our land. Changes in the classification or valuation methods employed by county property appraisers could cause significant changes in our real estate property tax liabilities50% rewritten
- 13Compliance with applicable environmental laws may substantially increase our costs of doing business, which could reduce our profits30% rewritten
- 14Our business may be adversely affected if we lose key employees36% rewritten
- 15Material weaknesses and other control deficiencies relating to our internal control over financial reporting could result in errors in our reported results and could have a material adverse effect on our operations, investor confidence in our business and the trading price of our securitiesNew
- 16Inflation can have a significant adverse effect on our operations
- 17Macroeconomic conditions, such as rising inflation, armed conflicts and geopolitical instability, and pandemics or health crises could adversely affect our business, financial condition, results of operations and cash flows41% rewritten
- 18We incur increased costs as a result of being a publicly traded company
- 19System security risks, data protection breaches, cybersecurity incidents and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenues, increase our expenses, damage our reputation and adversely affect our stock price75% rewritten
- 20Our business is subject to complex and evolving laws and regulations regarding privacy and data protection
- 21Our agricultural products are subject to supply and demand pricing which is not predictable26% rewritten
- 22We are subject to the risk of product contamination and product liability claims23% rewritten
- 23Our agricultural operations are subject to water use regulations restricting our access to water31% rewritten
- 24Liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances could increase our costs21% rewritten
- 25Increases in commodity or raw product costs, such as fuel and chemical costs, could adversely affect our operating results
- 26We are subject to transportation risks
Risks Related to Our Indebtedness
- 27We maintain a significant amount of indebtedness, which could adversely affect our financial condition, results of operations or cash flows, and may limit our operational and financing flexibility and negatively impact our business51% rewritten
- 28We may be unable to generate sufficient cash flow to service our debt obligations
- 29Some of our debt is based on variable rates of interest, which could result in higher interest expenses in the event of an increase in the interest rates32% rewritten
Risks Related to our Common Stock
- 30The market price of our common stock may be volatile or decline, and you may not be able to resell your shares at or above the price you initially paid for our common stock
- 31We may not be able to continue to pay or maintain our cash dividends on our common stock and the failure to do so may negatively affect our share price
Other Alico 10-Ks
- FY2024 10-K risk factors37 risks
Citrus revenue concentration, crop diseases like greening and canker, and weather-driven supply volatility dominate Alico's risk profile.
Filed Dec 02, 2024
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.