Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were ~~7,520,938~~7,545,413 shares of common stock outstanding at ~~May 3, 2021.~~February 1, 2022.

	March 31,			September 30,			December 31,			September 30,
	2021			2020			2021			2021
	(Unaudited)						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	10,371		$	3,163		$	69		$	886
Accounts receivable, net		11,009			4,347			8,901			6,105
Inventories		30,035			40,855			45,950			43,377
Income tax receivable	—				781			1,657			3,233
Assets held for sale		2,048			1,366			431			160
Prepaid expenses and other current assets		1,443			1,387			1,571			1,152
Total current assets		54,906			51,899			58,579			54,913

Restricted cash		—			16,524
Property and equipment, net		369,036			350,061			373,159			373,231
Goodwill		2,246			2,246			2,246			2,246
Other non-current assets		2,595			3,207			2,898			2,827
Total assets	$	428,783		$	423,937		$	436,882		$	433,217

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	11,811		$	3,533		$	2,780		$	7,274
Accrued liabilities		5,118			7,095			8,045			9,872
Long-term debt, current portion		8,410			9,145			4,285			4,285
Income taxes payable		888			—
Other current liabilities		761			1,385			758			875
Total current liabilities		26,988			21,158			15,868			22,306

Long-term debt:
Principal amount, net of current portion		134,464			139,106			120,937			122,009
Less: deferred financing costs, net		(1,068	)		(1,151	)		(948	)		(986	)
Long-term debt less current portion and deferred financing costs, net		133,396			137,955			119,989			121,023
Lines of credit		—			2,942			9,377			—
Deferred income tax liabilities, net		39,728			39,728			37,101			41,977
Other liabilities		268			372			87			306
Total liabilities		200,380			202,155			182,422			185,612
Commitments and Contingencies (Note 12)
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; NaN issued		—			—			—			—
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,513,413 and 7,492,524 shares outstanding at March 31, 2021 and September 30, 2020, respectively		8,416			8,416
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,540,932 and 7,526,004 shares outstanding at December 31, 2021 and September 30, 2021, respectively								8,416			8,416
Additional paid in capital		19,759			19,685			20,080			19,989
Treasury stock, at cost, 902,732 and 923,621 shares held at March 31, 2021 and September 30, 2020, respectively		(30,223	)		(30,779	)
Treasury stock, at cost, 875,213 and 890,141 shares held at December 31, 2021 and September 30, 2021, respectively								(29,399	)		(29,853	)
Retained earnings		225,028			219,019			250,012			243,651
Total Alico stockholders' equity		222,980			216,341			249,109			242,203
Noncontrolling interest		5,423			5,441			5,351			5,402
Total stockholders' equity		228,403			221,782			254,460			247,605
Total liabilities and stockholders' equity	$	428,783		$	423,937		$	436,882		$	433,217

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended December 31,
	2021			2020			2021			2020			2021			2020
Operating revenues:
Alico Citrus	$	55,268		$	49,801		$	68,194		$	59,976		$	14,748		$	12,926
Land Management and Other Operations		676			714			1,482			1,544			589			806
Total operating revenues		55,944			50,515			69,676			61,520			15,337			13,732
Operating expenses:
Alico Citrus		45,518			43,518			53,665			48,358			13,386			8,147
Land Management and Other Operations		200			380			388			931		140			188
Total operating expenses		45,718			43,898			54,053			49,289			13,526			8,335
Gross profit		10,226			6,617			15,623			12,231			1,811			5,397
General and administrative expenses		2,653			2,953			5,181			5,713			2,584			2,528
Income from operations		7,573			3,664			10,442			6,518
Other (expense) income, net:
(Loss) income from operations														(773	)		2,869
Other income (expense), net:
Interest expense		(1,089	)		(1,452	)		(2,278	)		(2,996	)		(901	)		(1,189	)
(Loss) gain on sale of real estate, property and equipment and assets held for sale		(17	)		2,838			3,347			2,863
Other income (expense)		2			12			12			(64	)
Total other (expense) income, net		(1,104	)		1,398			1,081			(197	)
Gain on sale of real estate, property and equipment and assets held for sale														8,445			3,364
Other income														9			10
Total other income, net														7,553			2,185
Income before income taxes		6,469			5,062			11,523			6,321			6,780			5,054
Income tax provision		1,579			1,496			2,829			1,857
Income tax (benefit) provision														(3,300	)		1,250
Net income		4,890			3,566			8,694			4,464			10,080			3,804
Net (income) loss attributable to noncontrolling interests		(23	)		5			18			(102	)
Net loss attributable to noncontrolling interests														51			41
Net income attributable to Alico, Inc. common stockholders	$	4,867		$	3,571		$	8,712		$	4,362		$	10,131		$	3,845
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	0.65		$	0.48		$	1.16		$	0.58		$	1.34		$	0.51
Diluted	$	0.65		$	0.48		$	1.16		$	0.58		$	1.34		$	0.51
Weighted-average number of common shares outstanding:
Basic		7,513			7,480			7,508			7,478			7,535			7,503
Diluted		7,513			7,496			7,508			7,494			7,542			7,503

Cash dividends declared per common share	$	0.18		$	0.09		$	0.36		$	0.18		$	0.50		$	0.18

Additional

Total

Non-

Common stock

Paid In

Treasury

Retained

Alico, Inc.

controlling

Total

Shares

Amount

Capital

Stock

Earnings

Equity

Interest

Equity

Balance at December 31, 2020

8,416

$
8,416

$
19,634

$
(30,421
)

$
221,513

$
219,142

$
5,400

$
224,542

Net income

—

—

—

—

4,867

4,867

23

4,890

Dividends ($0.18/share)

—

—

—

—

(1,352
)

(1,352
)

—

(1,352
)
Stock-based compensation:

Directors

—

—

24

198

—

222

—

222

Executives and Managers

—

—

101

—

—

101

—

101

Balance at March 31, 2021

8,416

$
8,416

$
19,759

$
(30,223
)

$
225,028

$
222,980

$
5,423

$
228,403

					Additional								Total			Non-
	Common stock				Paid In		Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital		Stock			Earnings			Equity			Interest			Equity
Balance at September 30, 2021		8,416	$	8,416	$	19,989	$	(29,853	)	$	243,651		$	242,203		$	5,402		$	247,605
Net income (loss)		—		—		—		—			10,131			10,131			(51	)		10,080
Dividends ($0.50/share)		—		—		—		—			(3,770	)		(3,770	)		—			(3,770	)
Exercise of stock options		—		—		15		155			—			170			—			170
Stock-based compensation:
Directors		—		—		23		156			—			179			—			179
Executives and Managers		—		—		53		143			—			196			—			196
Balance at December 31, 2021		8,416	$	8,416	$	20,080	$	(29,399	)	$	250,012		$	249,109		$	5,351		$	254,460

Additional

Total

Non-

Common stock

Paid In

Treasury

Retained

Alico, Inc.

controlling

Total

Shares

Amount

Capital

Stock

Earnings

Equity

Interest

Equity

Balance at September 30, 2019

8,416

$
8,416

$
19,781

$
(31,943
)

$
198,049

$
194,303

$
5,095

$
199,398

Net income

—

—

—

—

4,362

4,362

102

4,464

Dividends ($0.18/share)

—

—

—

—

(1,346
)

(1,346
)

—

(1,346
)
Treasury stock purchases

—

—

—

(238
)

—

(238
)

—

(238
)
Stock-based compensation:

Directors

—

—

(42
)

397

—

355

—

355

Executives

—

—

435

—

—

435

—

435

Balance at March 31, 2020

8,416

$
8,416

$
20,174

$
(31,784
)

$
201,065

$
197,871

$
5,197

$
203,068

					Additional									Total			Non-
	Common stock				Paid In			Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital			Stock			Earnings			Equity			Interest			Equity
Balance at September 30, 2020		8,416	$	8,416	$	19,685		$	(30,779	)	$	219,019		$	216,341		$	5,441		$	221,782
Net income (loss)		—		—		—			—			3,845			3,845			(41	)		3,804
Dividends ($0.18/share)		—		—		—			—			(1,351	)		(1,351	)		—			(1,351	)
Stock-based compensation:
Directors		—		—		20			202			—			222			—			222
Executives and Managers		—		—		(71	)		156			—			85			—			85
Balance at December 31, 2020		8,416	$	8,416	$	19,634		$	(30,421	)	$	221,513		$	219,142		$	5,400		$	224,542

	Six Months Ended March 31,						Three Months Ended December 31,
	2021			2020			2021			2020
Net cash provided by operating activities:
Net cash used in operating activities:
Net income	$	8,694		$	4,464		$	10,080		$	3,804
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, and amortization		7,708			7,199			3,836			3,806
Gain on sale of real estate, property and equipment and assets held for sale								(8,445	)		(3,364	)
Loss on disposal of long-lived assets								137			443
Deferred income tax benefit	—				(827	)		(4,876	)		—
Gain on sale of real estate, property and equipment and assets held for sale		(3,347	)		(2,863	)
Impairment of right-of-use asset	—				87
Loss on disposal of long-lived assets		1,200			723
Debt issue cost expense								43			45
Stock-based compensation expense		630			790			375			307
Other	—				(36	)
Changes in operating assets and liabilities:
Accounts receivable		(6,662	)		(3,672	)		(2,796	)		(1,251	)
Inventories		10,820			11,640			(2,573	)		(5,575	)
Prepaid expenses		(259	)		(234	)		(418	)		(432	)
Income tax receivable		781			—			1,576			781
Other assets		278			(387	)		117			134
Accounts payable and accrued liabilities		5,623			(2,061	)		(6,328	)		(3,882	)
Income taxes payable		888			(2,876	)		—			469
Other liabilities		(728	)		(259	)		(336	)		(394	)
Net cash provided by operating activities		25,626			11,688
Net cash used in operating activities								(9,608	)		(5,109	)

Cash flows from investing activities:
Purchases of property and equipment		(10,336	)		(9,960	)		(4,193	)		(5,062	)
Acquisition of citrus grove		(18,230	)		—
Acquisition of citrus groves								(136	)		(16,450	)
Net proceeds from sale of real estate, property and equipment and assets held for sale		3,442			2,994			8,604			3,425
Change in deposits on purchase of citrus trees		240			(57	)		(196	)		64
Advances on notes receivables, net		271			87			—			122
Other		15			(25	)		—			25
Net cash used in investing activities		(24,598	)		(6,961	)
Net cash provided by (used in) investing activities								4,079			(17,876	)

Cash flows from financing activities:
Repayments on revolving lines of credit		(45,247	)		(18,805	)		(16,319	)		(14,187	)
Borrowings on revolving lines of credit		42,305			85,519			25,696			23,449
Principal payments on term loans		(5,377	)		(9,820	)		(1,072	)		(2,689	)
Treasury stock purchases	—				(238	)
Exercise of stock options								170		—
Dividends paid		(2,025	)		(1,120	)		(3,763	)		(674	)
Deferred financing costs	—				(23	)
Net cash (used in) provided by financing activities		(10,344	)		55,513
Net cash provided by financing activities								4,712			5,899

Net (decrease) increase in cash and cash equivalents and restricted cash		(9,316	)		60,240
Cash and cash equivalents and restricted cash at beginning of the period		19,687			23,838
Net decrease in cash and cash equivalents								(817	)		(17,086	)
Cash and cash equivalents at beginning of the period								886			19,687

Cash and cash equivalents and restricted cash at end of the period	$	10,371		$	84,078
Cash and cash equivalents at end of the period							$	69		$	2,601

Alico, Inc., together with its subsidiaries (collectively, “Alico”, the “Company", "we", "us" or "our”), is a Florida agribusiness and land management company owning approximately ~~103,000~~81,000 acres of land and approximately 90,000 acres of mineral rights throughout ~~Florida, holding~~Florida. Alico holds these mineral rights on ~~approximately 90,000 of those~~substantially all its owned acres, with additional mineral rights on other acres. The Company manages its land based upon its primary usage, and reviews its performance based upon 2 primary classifications: (i) Alico Citrus and (ii) Land Management and Other Operations. Financial results are presented based upon these 2 business segments.

The Company has prepared the accompanying financial statements on a condensed consolidated basis. These accompanying unaudited condensed consolidated interim financial statements, which are referred to herein as the “Financial Statements", have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to Article 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. These Financial Statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with SEC rules and regulations. Accordingly, the Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020,~~2021, as filed with the SEC on December ~~8, 2020.~~7, 2021.

The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited. However, in the opinion of management, such Financial Statements include all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods.

Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the current fiscal year ending September 30, ~~2021.~~2022.

Operating segments are defined in the criteria established under the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on two operating segments: (i) Alico Citrus and (ii) Land Management and Other Operations.

The Financial Statements include the accounts of Alico and the accounts of all the subsidiaries in which a controlling interest is held by the Company. Under U.S. GAAP, consolidation is generally required for investments of more than 50% of the outstanding voting stock of an investee, except when control is not held by the majority owner. The Company’s subsidiaries include: Alico Land Development, Inc., Alico-Agri, Ltd., Alico Plant World, LLC, Alico Fruit Company, LLC, Alico Citrus Nursery, LLC, Alico Chemical Sales, LLC, 734 Citrus Holdings, LLC and subsidiaries, Alico Skink Mitigation, LLC and Citree Holdings 1, LLC (“Citree”). The Company considers the criteria established under FASB ASC Topic 810, “Consolidations” in its consolidation process. All significant intercompany balances and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the accompanying Financial Statements, the disclosure of contingent assets and liabilities in the Financial Statements and the accompanying Notes, and the reported amounts of revenues and expenses and cash flows during the periods presented. Actual results could differ from those estimates. The Company evaluates estimates on an ongoing basis. The estimates are based on current and expected economic conditions, historical experience, the experience and judgment of the Company’s management and various other specific assumptions that the Company believes to be reasonable.

~~Restricted cash was comprised of cash receipts from the sale of property which was being held specifically for the purpose of deferring a tax impact on the gain on sale of the property.~~

In September 2020, the Company sold certain sections of the West Ranch, from which a portion of the net cash proceeds amounting to $16,524,000 were being held by a qualified intermediary in anticipation of purchasing a like-kind asset and in order to defer a portion of the gain on sale of the ranch land. Such funds were included in restricted cash at September 30, 2020. In October 2020, the Company closed on a purchase of a like-kind asset and used these net cash proceeds, which were being held by the intermediary.

Revenues are derived from the sale of processed fruit, fresh fruit, other citrus revenue, revenues from grove management services, leasing revenue and other resource revenues. Most of the revenue is generated from the sale of citrus fruit to processing facilities, fresh fruit sales and grove management services. ~~The~~

For fruit sales, the Company recognizes revenue in the amount it expects ~~it will~~to be entitled to be paid, determined when control of the products or services is transferred to its customers, which occurs upon delivery of and acceptance of the fruit by the customer and when the Company has a right to payment.

For the sale of fruit, the Company has identified one performance obligation, which is the delivery of fruit to the processing facility of the customer (or harvesting of the citrus in the case of fresh fruit) for each separate variety of fruit identified in the respective contract with the respective customer. The Company initially recognizes revenue in an amount which is estimated based on contractual and market prices, ~~including~~ if such market price falls within the range (known as “floor” and “ceiling” prices) identified in the specific respective contracts. Additionally, the Company also has a contractual agreement whereby revenue is determined based on applying a cost-plus structure methodology. As such, since all of these contracts contain elements of variable consideration, the Company recognizes this variable consideration by using the expected value method. On a quarterly basis, management reviews the reasonableness of the revenues accrued based on buyers’ and processors’ advances to growers, cash and futures markets and experience in the industry. Adjustments are made throughout the year to these estimates as more current relevant industry information becomes available. Differences between the estimates and the final realization of revenues at the close of the harvesting season can result in either an increase or decrease to reported revenues.

Receivables under contracts, whereby pricing is based on contractual and market prices, are primarily paid at the floor amount and are collected within seven days after the harvest week. Any adjustments to pricing as a result of changes in market prices are collected or paid thirty to sixty days after final market pricing is published. Receivables under those contracts ~~whereby~~where pricing is based off a cost-plus structure methodology are paid at the final prior year rate. Any adjustments to pricing because of the cost-plus calculation are collected or paid upon finalization of the calculation and agreement by both parties. As of ~~March~~December 31, 2021, and September 30, ~~2020,~~2021, the Company had total receivables relating to sales of citrus of approximately ~~$9,969,000~~$5,510,000 and ~~$584,000,~~$3,161,000, respectively, recorded in Accounts Receivable, net, in the Condensed Consolidated Balance Sheets.

For grove management services, the Company has identified one performance obligation, which is the management of the third party’s groves. Grove management services include caretaking of the citrus groves, harvesting and hauling of citrus, management and coordination of citrus sales and other related activities. The Company is reimbursed for expenses incurred in the execution of its management duties and the Company receives a per acre management fee. The Company recognizes operating revenue, including a management fee, and corresponding operating expenses when such ~~grove management~~ services are rendered and consumed.

Revenues disaggregated by significant products and services for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020 are as follows:

(in thousands)
	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended December 31,
	2021		2020		2021		2020		2021		2020
Alico Citrus
Early and Mid-Season	$	21,749	$	22,237	$	31,064	$	31,303	$	10,378	$	9,315
Valencias		28,014		25,810		28,014		25,810
Fresh Fruit		176		802		585		1,537		879		409
Grove Management Services		4,979		373		8,071		678		3,418		3,092
Other		350		579		460		648		73		110
Total	$	55,268	$	49,801	$	68,194	$	59,976	$	14,748	$	12,926

Land Management and Other Operations
Land and Other Leasing	$	623	$	679	$	1,350	$	1,342	$	528	$	727
Other		53		35		132		202		61		79
Total	$	676	$	714	$	1,482	$	1,544	$	589	$	806

Total Revenues	$	55,944	$	50,515	$	69,676	$	61,520	$	15,337	$	13,732

The Financial Statements include all assets and liabilities of the less-than-100%-owned subsidiary the Company controls, Citree. Accordingly, the Company has recorded a noncontrolling interest in the equity of such entity. Citree had a net ~~income~~loss of ~~approximately $45,000,~~$103,775 for the three months ended December 31, 2021, and a net loss of ~~approximately $11,000~~$82,500 for the three months ended ~~March~~December 31, ~~2021 and~~ 2020, ~~respectively, and had a net loss of approximately $37,000 and net income of approximately $208,000 for the six months ended March 31, 2021 and 2020, respectively,~~ of which 51% is attributable to the Company. ~~The net income for the six months ended March 31, 2020 was the result of reimbursements received under the federal relief program relating to Hurricane Irma of approximately $493,000.~~

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. The Company’s floating rate notes and variable funding notes bear interest at fluctuating interest rates based on LIBOR. Because LIBOR ~~is scheduled~~will cease to ~~cease in June 2023 and~~exist, the Company will need to ~~modify~~renegotiate its loan agreements, ~~in order to replace LIBOR~~but the Company cannot predict what alternative index would be negotiated with ~~an alternative interest rate.~~its lenders. ASU 2020-04 is currently effective and upon adoption may be applied prospectively to contract modifications made on or before December 31, 2022. The Company is currently assessing the impact of adopting this standard and the impact on its condensed consolidated financial statements.

The Company has reviewed other recently issued accounting standards which have not yet been adopted ~~in order~~ to determine their potential effect, if any, on the results of operations or financial condition. Based on the review of these other recently issued standards, the Company does not currently believe that any of those accounting pronouncements will have a significant effect on its current or future financial position, results of operations, cash flows or disclosures.

In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, “Intangibles-Goodwill and Other” (Topic 350), which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, determined in

Step 1. The Company adopted ASU 2017-04 effective October 1, 2020, using the prospective approach, and will apply this standard in future impairment tests. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements” (“ASU 2018-13”), which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. ASU 2018-13 is effective for annual and interim periods in the fiscal years beginning after December 15, 2019. Retrospective adoption is required, except for certain disclosures, which will be required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company adopted ASU 2018-13 effective October 1, 2020, and the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses.” ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Leases (Topic 842). The Company adopted ASU 2018-19 effective October 1, 2020, and the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The Company adopted ASU 2019-12 effective October 1, 2021, and the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

On March 11, 2020, the World Health Organization declared the current novel coronavirus outbreak (“COVID-19”) to be a global pandemic. In response to this declaration and the rapid spread of COVID-19 within the United States, federal, state and local governments throughout the country have imposed varying degrees of restrictions on social and commercial activity to promote social distancing in an effort to slow the spread of the illness. These measures have had a significant adverse impact upon many sectors of the economy, including certain agriculture businesses.

Since the commencement of COVID-19 in March 2020, the Company took steps to allow and encourage greater social distancing for both our employed and our contracted field workers and has worked with its harvesters, haulers and suppliers to minimize close interactions.

To date, the Company has experienced no material adverse ~~impact~~impacts from this pandemic.

Certain prior year amounts have been reclassified in the accompanying ~~Condensed Consolidated~~ Financial Statements for consistent presentation to the current period. These reclassifications had no impact on net income, equity, cash flows or working capital as previously reported.

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of Alico's fiscal year produce most of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

Inventories consist of the following at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

(in thousands)	March 31,		September 30,		December 31,		September 30,
	2021		2020		2021		2021
Unharvested fruit crop on the trees	$	29,253	$	40,265	$	44,593	$	42,117
Other		782		590		1,357		1,260
Total inventories	$	30,035	$	40,855	$	45,950	$	43,377

The Company records its inventory at the lower of cost or net realizable value. For the ~~six~~three months ended ~~March~~December 31, 2021 and the fiscal year ended September 30, ~~2020,~~2021, the Company did not record any adjustments to reduce inventory to net realizable value.

The Company was eligible for Hurricane Irma federal relief programs for block grants that were being administered through the State of Florida. During the fiscal years ended September 30, 2021, 2020, and 2019, the Company received approximately $4,299,000, $4,629,000, ~~of which approximately $4,466,000 was received during the six months ended March 31, 2020,~~ and $15,597,000, respectively, under the Florida Citrus Recovery Block Grant (“CRBG”) program. These federal relief proceeds represented Part 1 and Part 2 reimbursement under the program. In the three and six months ended March 31, 2021, the Company received approximately $163,000 and $4,299,000, respectively, representing reimbursement under Part 3 of the program. These federal relief proceeds are included as a reduction to operating expenses in the Condensed Consolidated Statements of Operations. The remaining portion of the funds that the Company anticipates receiving under the Florida CRBG program relates to certain crop insurance expenses incurred by the Company and is estimated to be approximately $2,000,000 in the aggregate. In October 2021, the Company received a portion of this crop insurance expense reimbursement in an amount equal to approximately $1,000,000 and anticipates receiving the remaining portion in fiscal year 2023.

In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

(in thousands)	Carrying Value				Carrying Value
	March 31,		September 30,		December 31,		September 30,
	2021		2020		2021		2021
East and West Ranch (land, buildings, and equipment)	$	2,048	$	1,366
Ranch					$	431	$	160
Total Assets Held for Sale	$	2,048	$	1,366	$	431	$	160

On December 3, 2021, the State of Florida purchased, under the Florida Forever program, approximately 1,638 acres of the Alico ranch for approximately $5,675,000 pursuant to an option agreement entered between the State of Florida and the Company. The Company recognized a gain of approximately $5,570,000.

During November 2021, the Company sold approximately 302 acres from the Alico ranch to various third parties for approximately $1,476,000 and recognized a gain of approximately $1,404,000.

On June 3, 2021, the Company sold approximately 11,700 acres of the Alico ranch, which were encumbered by an easement, to a third-party for approximately $12,219,000. The Company recognized a gain of approximately $11,351,000. In 2013, these acres were enrolled in the Wetlands Reserve Program (“WRP”), which calls for the restoration and maintenance of the property for the duration of the WRP easement. As part of that enrollment in 2013, Alico received approximately $1,800 per acre.

On April 15, 2021, the State of Florida purchased, under the Florida Forever program, approximately 5,734 acres of the Alico ranch for approximately $14,445,000 pursuant to an option agreement entered between the State of Florida and the Company. The Company recognized a gain of approximately $13,921,000.

On December 18, 2020, the Company sold approximately 600 acres of the East Ranch for approximately $2,630,000 and recognized a gain of approximately $2,550,000. Additionally, the Company sold several smaller parcels of the East Ranch during the ~~six months~~quarter ended ~~March~~December 31, ~~2021,~~2020, which generated a gain of approximately ~~$504,000.~~$814,000.

~~On September 10, 2020,~~Additionally, during fiscal year 2021, the ~~State~~Company sold an aggregate of ~~Florida purchased, under the Florida Forever program,~~ approximately ~~10,700~~1,742 acres of the Alico Ranch to various third parties for approximately ~~$28,500,000 pursuant to an option agreement entered into between the State of Florida~~$8,286,000 and ~~the Company. The Company~~ recognized a gain of approximately ~~$27,470,000. The Company subsequently used a portion~~$7,697,000. One of these sales transactions, consisting of approximately 97 acres, was sold to an employee of the ~~net cash proceeds to purchase a like-kind asset in October 2020, which allowed the~~ Company ~~to defer a portion of the tax impact of the gain on sale of the ranch land (see Note 4. Property and Equipment, Net).~~

~~On March 27, 2020, the Company sold certain sections at the East Ranch~~ for approximately $2,980,000 and realized a gain of approximately $2,748,000. The Company subsequently used substantially all of the net cash proceeds to purchase a like-kind asset in May 2020, which has allowed the Company to defer substantially all of the tax impact of the gain on sale of the ranch land.$392,000.

Property and equipment, net consists of the following at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

(in thousands)	March 31,			September 30,			December 31,			September 30,
	2021			2020			2021			2021
Citrus trees	$	312,590		$	296,012		$	323,431		$	320,245
Equipment and other facilities		55,193			55,593			57,881			57,584
Buildings and improvements		7,400			8,128			8,482			8,494
Total depreciable properties		375,183			359,733			389,794			386,323
Less: accumulated depreciation and depletion		(119,719	)		(115,440	)		(130,266	)		(127,046	)
Net depreciable properties		255,464			244,293			259,528			259,277
Land and land improvements		113,572			105,768			113,631			113,954
Property and equipment, net	$	369,036		$	350,061		$	373,159		$	373,231

For the ~~six~~three months ended ~~March~~December 31, 2021 ~~the Company did 0t record any impairments~~ and ~~for the~~ fiscal year ended September 30, ~~2020,~~2021, the Company ~~recorded~~did not record any impairments.

In connection with the State of Florida’s condemnation of a certain portion of Alico’s property in October 2021, the Company received approximately ~~$598,000~~$1,450,000, all of ~~impairments.~~which was recognized as a gain.

On October 30, 2020, the Company purchased approximately 3,280 gross citrus acres located in Hendry County for a purchase price of approximately $18,230,000. This acquisition complements the Company’s existing citrus acres as these acres are located adjacent to existing groves in Hendry County. This purchase was part of a like-kind exchange transaction, which allowed the Company to defer taxes relating to the sale of certain sections of the West Ranch.

~~On June 1, 2020, the Company sold approximately 30 ranch acres to an employee for approximately $122,000 and recognized a gain of approximately $83,000.~~

On May 4, 2020, the Company purchased approximately 334 citrus acres for approximately $2,850,000. This acquisition complements the Company’s existing citrus acres as these acres are located adjacent to existing groves in the Frostproof area. This purchase was also part of a like-kind exchange transaction, which allowed the Company to defer taxes relating to the sale of certain sections of the East Ranch.

The following table summarizes long-term debt and related deferred financing costs, net of accumulated amortization at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

	March 31, 2021				September 30, 2020				December 31, 2021				September 30, 2021
(in thousands)	Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net
Long-term debt, net of current portion:
Met Fixed-Rate Term Loans	$	80,313	$	572	$	83,438	$	621	$	70,000	$	501	$	70,000	$	524
Met Variable-Rate Term Loans		39,531		263		40,969		286		37,375		230		38,094		241
Met Citree Term Loan		4,388		34		4,512		36		4,200		31		4,263		31
Pru Loans A & B		14,517		198		15,097		207		13,647		186		13,937		190
Pru Loan E		4,125		1		4,235		1
		142,874		1,068		148,251		1,151		125,222		948		126,294		986
Less current portion		8,410		—		9,145		—		4,285		—		4,285		—
Long-term debt	$	134,464	$	1,068	$	139,106	$	1,151	$	120,937	$	948	$	122,009	$	986

The following table summarizes lines of credit and related deferred financing costs, net of accumulated amortization at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

	March 31, 2021				September 30, 2020				December 31, 2021				September 30, 2021
(in thousands)	Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net
Lines of Credit:
RLOC	$	—	$	134	$	—	$	141	$	—	$	122	$	—	$	126
WCLC		—		—		2,942		—		9,377		—		—		—
Lines of Credit	$	—	$	134	$	2,942	$	141	$	9,377	$	122	$	—	$	126

Future maturities of long-term debt and lines of credit ~~at March~~as of December 31, 2021 are as follows:

(in thousands)
	March 31, 2021		December 31, 2021
Due within one year	$	8,410	$	4,285
Due between one and two years		4,285		13,662
Due between two and three years		4,285		4,285
Due between three and four years		4,285		4,285
Due between four and five years		4,285		4,285
Due beyond five years		117,324		103,797

Total future maturities	$	142,874	$	134,599

(in thousands)
	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended December 31,
	2021		2020		2021		2020		2021		2020
Interest expense	$	1,089	$	1,452	$	2,278	$	2,996	$	901	$	1,189
Interest capitalized		349		303		661		572		303		312
Total	$	1,438	$	1,755	$	2,939	$	3,568	$	1,204	$	1,501

The Company's credit facilities consist of fixed interest rate term loans originally in the amount of $125,000,000 (“Met Fixed-Rate Term Loans”), variable interest rate term loans originally in the amount of $57,500,000 (“Met Variable-Rate Term Loans”), a $25,000,000 revolving line of credit (“RLOC”) with Metropolitan Life Insurance Company and New England Life Insurance Company (collectively “Met”), and a $70,000,000 working capital line of credit (“WCLC”) with Rabo Agrifinance, Inc. (“Rabo”).

The term loans and RLOC are secured by real property. The security for the term loans and RLOC consists of approximately 38,200 gross acres of citrus groves and originally included 5,800 gross acres of ranch land. In April 2021, the 5,800 gross acres of ranch land was released as security against the term loans and RLOC and only the 38,200 gross acres of citrus groves remain as security for the term loans and RLOC. The WCLC is collateralized by the Company’s current assets and certain other personal property owned by the Company.

~~As of March 31, 2021,~~Initially, the ~~term loans, collectively, are~~Met Fixed-Rate Term Loans were subject to quarterly principal payments of ~~$2,281,250,~~$1,562,500 and ~~mature November 1, 2029. As of March 31, 2021, the Met Fixed-Rate Term Loans bear~~bore interest at 4.15% per annum, and the Met Variable-Rate Term Loans bear interest at a rate equal to 90-day LIBOR plus 165 basis points (the “LIBOR spread”). The LIBOR spread is subject to adjustment by Met beginning May 1, 2017 and is subject to further adjustment every two years thereafter until maturity. No adjustment was made at May 1, 2019. Interest on the term loans is payable quarterly. The interest rates on the Met Variable-Rate Term Loans were 1.86% per annum and 1.91% per annum as of March 31, 2021 and September 30, 2020, respectively.

As of March 31, 2021, the Company may prepay up to $8,750,000 of the Met Fixed-Rate Term Loan principal annually without penalty, and any such prepayments may be applied to reduce subsequent mandatory principal payments. The maximum annual prepayment was made for calendar year 2015. During the first and second quarter of fiscal year 2018, the Company elected not to make its principal payment and utilized a portion of its 2015 prepayment to satisfy its principal payment requirements for such quarters. At March 31, 2021, the Company had $5,625,000 remaining available to reduce future mandatory principal payments should the Company elect to do so. The Met Variable-Rate Term Loans may be prepaid without penalty.

~~In April 2021, the Company made a prepayment of $10,312,500 on the Met Fixed-Rate Term Loans and effective~~annum. Effective May 1, 2021, the Company modified its Met Fixed-Rate Term Loans, which, in the aggregate ~~after the prepayment,~~ have a balance of $70,000,000 after the prepayment of $10,312,500 made in April 2021, to be interest only with a balloon payment to be paid at maturity on November 1, 2029. The interest rate on these Met Fixed-Rate Term Loans, which were bearing interest at 4.15%, ~~has been~~was adjusted to 3.85%. As part of this modification, the Company ~~will~~ no longer ~~have~~has the prepayment option previously allowed under the arrangement.

The Met Variable-Rate Term Loans are subject to quarterly principal payments of $718,750 and bear interest at a rate equal to 90-day LIBOR plus 165 basis points (the “LIBOR spread”). The LIBOR spread was subject to adjustment by Met beginning May 1, 2017 and is subject to further adjustment every two years thereafter until maturity. No adjustment was made at May 1, 2019 or at May 1, 2021. Interest on the term loans is payable quarterly. The interest rate on the Met Variable-Rate Term Loans was 1.78% per annum as of December 31, 2021 and September 30, 2021, respectively. The Met Variable-Rate Term Loans mature on November 1, 2029.

The RLOC bears interest at a floating rate equal to 90-day LIBOR plus 165 basis points, payable quarterly. The LIBOR spread was adjusted by Met on May 1, 2017 and is subject to further adjustment every two years thereafter. No adjustment was made at May 1, ~~2019.~~2019 or at May 1, 2021. In October 2019, the RLOC agreement was modified to extend the maturity to November 1, 2029. The RLOC is subject to an annual commitment fee of 25 basis points on the unused portion of the line of credit. The RLOC is available for funding general corporate needs. The variable interest rate was ~~1.86% and 1.91%~~1.78% per annum as of ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively. Availability under the RLOC was $25,000,000 as of ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

The WCLC is a revolving credit facility and is available for funding working capital and general corporate requirements. The interest rate on the WCLC is based on the one-month LIBOR, plus a spread, which spread is adjusted quarterly, based on the Company's debt service coverage ratio for the preceding quarter and can vary from 175 to 250 basis points. The rate is currently at LIBOR plus 175 basis points. The variable interest rate was ~~1.86%~~1.85% and ~~1.90%~~1.83% per annum as of ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively. The WCLC agreement was amended on August 25, 2020, and the primary terms of the amendment were an extension of the maturity to November 1, 2023. There were no changes to the commitment amount or interest ~~rate.~~rate formula. The WCLC agreement provides for Rabo to issue up to $2,000,000 in letters of credit on the Company’s behalf. As of ~~March~~December 31, 2021, there was approximately ~~$236,000~~$336,000 in outstanding letters of credit, which correspondingly reduced the Company's availability under the line of credit.

The WCLC is subject to a quarterly commitment fee on the daily unused availability under the line computed as the commitment amount less the aggregate of the outstanding loans and outstanding letters of credit. The commitment fee is adjusted quarterly based on Alico's debt service coverage ratio for the preceding quarter and can vary from a minimum of 20 basis points to a maximum of 30 basis points. Commitment fees to date have been charged at 20 basis points.

There ~~were 0 amounts~~was approximately $9,377,000 and $0 outstanding on the WCLC at ~~March~~December 31, 2021 and ~~approximately $2,942,000 outstanding on the WCLC as of~~ September 30, ~~2020.~~2021, respectively. Availability under the WCLC was approximately ~~$69,764,000~~$60,287,000 and ~~$66,659,000~~approximately $69,664,000 as of ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

In 2014, the Company capitalized approximately $2,834,000 of debt financing costs related to ~~the~~a refinancing and approximately $339,000 of costs related to the retired debt. Additionally, financing costs of approximately $23,000 were incurred in the fiscal year ended September 30, 2020 in connection with the letters of credit. All costs are included in deferred financing costs and being amortized to interest expense over the applicable terms of the obligations. The unamortized balance of deferred financing costs related to the financing above was approximately ~~$969,000~~$853,000 and approximately ~~$1,048,000~~$891,000 at ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

These credit facilities noted above are subject to various covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00, (ii) tangible net worth of at least $160,000,000 increased annually by 10% of consolidated net income for the preceding years, or approximately ~~$169,730,000~~$173,216,000 for the year ended September 30, ~~2020,~~2021, (iii) minimum current ratio of 1.50 to 1.00, (iv) debt to total assets ratio not greater than .625 to 1.00, and, (v) solely in the case of

the WCLC, a limit on capital expenditures of $30,000,000 per fiscal year. As of ~~March~~December 31, 2021, the Company was in compliance with all of the financial covenants.

Credit facilities also include a Met Life term loan collateralized by 1,200 gross acres of citrus grove owned by Citree ("Met Citree Loan"). This is a $5,000,000 credit facility that bears interest at a fixed rate of 5.28% per annum. Principal and interest payments are made on a quarterly basis. At ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, there was an outstanding balance of ~~$4,388,000~~$4,200,000 and ~~$4,512,000,~~$4,263,000, respectively. The loan matures in February 2029. The unamortized balance of deferred financing costs related to this loan was approximately ~~$34,000~~$31,000 and ~~$36,000~~$31,000 at ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

On July 27, 2017, the United Kingdom's Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that it intends to phase out LIBOR. On November 30, 2020, ICE Benchmark Administration (“IBA”), the administrator of LIBOR, with the support of the United States Federal Reserve and the Financial Conduct Authority of the United Kingdom, announced plans to consult on ceasing publication of LIBOR on December 31, 2021 for only the one week and two-month LIBOR tenors, and on June 30, 2023 for all other LIBOR tenors. On March 5, 2021, the FCA confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative: (a) immediately after December 31, 2021, in the case of the one week and two-month U.S. dollar settings; and (b) immediately after June 30, 2023, in the case of the remaining U.S. dollar settings. The Alternative Reference Rate Committee, a committee convened by the Federal Reserve that includes major market participants, has proposed an alternative rate to replace U.S. Dollar LIBOR: the Secured Overnight Financing Rate (SOFR). The outcome of these reforms is uncertain and any changes in the methods by which LIBOR is determined or regulatory activity related to LIBOR’s phaseout could cause LIBOR to perform differently than in the past.

The Company is ~~currently evaluating~~continuing to evaluate the impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates. Currently, the Company has debt instruments in place that reference one-month and three-month LIBOR-based rates. The transition from LIBOR, as mentioned above is estimated to take place in fiscal 2023 and management will continue to actively assess the related opportunities and risks involved in this transition.

There are 2 fixed-rate term loans, with an original combined balance of $27,550,000, bearing interest at 5.35% per annum (“Pru Loans A & B”). Principal of $290,000 is payable quarterly, together with accrued interest. On February 15, 2015, 734 Citrus Holdings, LLC d/b/a Silver Nip Citrus (“Silver Nip Citrus”) made a prepayment of $750,000. In addition, the Company made prepayments of approximately $4,453,000 in the second fiscal quarter of 2018 with proceeds from the sale of certain properties, which were collateralized under these loans. The Company may prepay up to $5,000,000 of principal without penalty. As such, the Company exceeded the allowed $5,000,000 prepayment by approximately $203,000 and was required to make a premium payment of approximately $22,000. The loans are collateralized by approximately 5,700 acres of citrus groves in Collier, Hardee, Highlands and Polk Counties, Florida and mature on June 1, 2029 and June 1, 2033, respectively.

Silver Nip Citrus entered into 2two additional fixed-rate term loans with Prudential to finance the acquisition of a 1,500 acre citrus grove on September 4, 2014. Each loan (“Pru Loan E” and “Pru Loan F”) was in the original amount of $5,500,000 with principal of $55,000 per loan being payable quarterly, together with accrued interest. In November 2019, the Company prepaid Pru Loan F in full in the amount of $4,455,000. As a result of this prepayment, the Company’s required annual principal payments on its Pru Loans was reduced by $220,000 per annum. Pru Loan E, which ~~matures~~matured September 1, 2021, ~~bears interest at 3.85% per annum.~~was satisfied in full. After this payment, the 2 additional loans have been paid and the Company has no further obligation under either of these loans. The ~~interest rate on Pru Loan E is subject to adjustment on September 1, 2019 and every year thereafter until maturity. No adjustment was made at September 1, 2019. This loan is~~loans were collateralized by approximately 1,500 gross acres of citrus groves in Charlotte County, Florida.

The Silver Nip Citrus credit agreements are subject to a financial covenant whereby the consolidated current ratio requirement is 1.00 to 1.00. Silver Nip Citrus was in compliance with the current ratio covenant as of ~~March~~December 31, 2021.

The unamortized balance of deferred financing costs related to the Silver Nip Citrus debt was approximately ~~$199,000~~$186,000 and ~~$208,000~~$190,000 at ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

Accrued liabilities consist of the following at ~~March~~December 31, 2021 and September 30, ~~2020:~~2021:

(in thousands)	March 31,		September 30,		December 31,		September 30,
	2021		2020		2021		2021
Ad valorem taxes	$	686	$	2,057	$	—	$	2,018
Accrued interest		931		1,020	955			888
Accrued employee wages and benefits		1,363		2,214	887			2,105
Accrued dividends						3,770		3,763
Accrued harvest and haul		422		—	752			—
Accrued dividends		1,352		674
Consulting and separation charges		—		146
Accrued insurance		—		636	956			618
Professional fees					401			348
Other accrued liabilities		364		348	324			132
Total accrued liabilities	$	5,118	$	7,095	$	8,045	$	9,872

In October 2019, the Internal Revenue Service concluded its audit of the September 30, 2015 tax year with no changes. The Federal and state filings remain subject to examination by tax authorities for tax periods ending after September 30, 2015.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) (the “CARES Act”). Among the changes to the U.S. federal income tax rules, the CARES Act restored net operating loss carryback rules that were eliminated by the 2017 Tax Cuts and Jobs Act, modified the limit on the deduction for net interest expense, and accelerated the timeframe for refunds of AMT credit carryovers. From a federal tax reporting standpoint, the Company ~~anticipates~~had a federal tax net operating loss (“NOL”) in the amount of $2,390,415 for the fiscal year ~~ending~~ended September 30, 2020 and, ~~plans to carry back the NOL~~ pursuant to the provisions of the CARES ~~Act. As a result of~~Act, Form 1139 was filed for the ~~federal tax~~ NOL carryback during fiscal year ended September 30, 2021, resulting in a refund due of $580,314.

The Company’s Federal and State filings remain subject to examination by tax authorities for tax periods ending after September 30, 2017.

During the quarter ended December 31, 2021, the Company ~~estimates~~sold 1,638 acres of land to the state of Florida at a ~~cash~~price below market value, which resulted in charitable deduction for tax purposes. The charitable contribution generated a tax benefit of approximately ~~$605,000, with an income statement~~$6,300,000, however, the Company does not anticipate it will be able to realize the entire charitable deduction before it expires in 2027. A valuation allowance of approximately $1,400,000 was recorded to partially offset the charitable contribution carryover deferred tax asset, resulting in a net benefit of approximately ~~$82,000.~~$4,900,000.

Basic earnings per share for Alico's common stock is calculated by dividing net income attributable to Alico, Inc. common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per common share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of common shares issuable under equity-based compensation plans in accordance with the treasury stock method, except where the inclusion of such common shares would have an anti-dilutive impact.

For the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020, basic and diluted earnings per common share were as follows:

(in thousands except per share amounts)	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended December 31,
	2021		2020		2021		2020		2021		2020
Net income attributable to Alico, Inc. common stockholders	$	4,867	$	3,571	$	8,712	$	4,362	$	10,131	$	3,845

Weighted average number of common shares outstanding - basic		7,513		7,480		7,508		7,478		7,535		7,503
Dilutive effect of equity-based awards		—		16		—		16		7		—
Weighted average number of common shares outstanding - diluted		7,513		7,496		7,508		7,494		7,542		7,503

Net income per common share attributable to Alico, Inc. common stockholders:
Basic	$	0.65	$	0.48	$	1.16	$	0.58	$	1.34	$	0.51
Diluted	$	0.65	$	0.48	$	1.16	$	0.58	$	1.34	$	0.51

For the three ~~and six~~ months ended ~~March~~December 31, 2021, there were no anti-dilutive equity awards excluded from the calculation of diluted earnings per common share. For the three months ended December 31, 2020, the equity awards had no dilutive or anti-dilutive impact on the earnings per common share. ~~For the three and six months ended March 31, 2020, there were anti-dilutive equity awards excluded from the calculation of diluted earnings per common share.~~

Operating segments are defined in the criteria established under the FASB ASC Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s CODM in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on 2 operating segments: Alico Citrus and Land Management and Other Operations.

Total revenues ~~primarily~~ represent sales and services rendered to unaffiliated customers, ~~revenue generated from grove management services, and leasing revenue,~~ as reported in the Condensed Consolidated Statements of Operations. Goods ~~and services~~ produced by ~~these segments~~the Alico Citrus segment, as well as through the grove management services rendered by the Alico Citrus segment, are sold to wholesalers and processors in the United States who prepare the products for consumption. The Company evaluates the segments’ performance based on direct margins (gross profit) from operations before general and administrative expenses, interest expense, other income (expense) and income taxes, not including nonrecurring gains and losses.

(in thousands)	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended December 31,
	2021		2020		2021		2020		2021		2020
Revenues:
Alico Citrus	$	55,268	$	49,801	$	68,194	$	59,976	$	14,748	$	12,926
Land Management and Other Operations		676		714		1,482		1,544		589		806
Total revenues		55,944		50,515		69,676		61,520		15,337		13,732

Operating expenses:
Alico Citrus		45,518		43,518		53,665		48,358		13,386		8,147
Land Management and Other Operations		200		380		388		931		140		188
Total operating expenses		45,718		43,898		54,053		49,289		13,526		8,335

Gross profit:
Alico Citrus		9,750		6,283		14,529		11,618		1,362		4,779
Land Management and Other Operations		476		334		1,094		613		449		618
Total gross profit	$	10,226	$	6,617		15,623		12,231	$	1,811	$	5,397

Depreciation, depletion and amortization:
Alico Citrus	$	3,704	$	3,416		7,393		6,853	$	3,681	$	3,644
Land Management and Other Operations		43		46		81		92		41		38
Other Depreciation, Depletion and Amortization		110		128		234		254		114		124
Total depreciation, depletion, and amortization	$	3,857	$	3,590	$	7,708	$	7,199	$	3,836	$	3,806

(in thousands)	March 31,		September 30,		December 31,		September 30,
	2021		2020		2021		2021
Assets:
Alico Citrus	$	412,532	$	406,763	$	423,677	$	418,633
Land Management and Other Operations		15,208		15,367		11,964		13,230
Other Corporate Assets		1,043		1,807		1,241		1,354
Total Assets	$	428,783	$	423,937	$	436,882	$	433,217

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~“Leases (Topic 842).”~~ This guidance requires entities that sign leases as a lessee to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under previous U.S. GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. The Company adopted ASU 2016-02 on October 1, 2019.

The Company determines whether an arrangement is a lease at inception. The Company’s leases consist of operating lease arrangements for certain office space and IT facilities. When these lease arrangements include lease and non-lease components, the Company accounts for lease components and non-lease components (e.g., common area maintenance) separately based on their relative standalone prices.

Any lease arrangements with an initial term of 12 months or less are not recorded on the Company’s Condensed Consolidated Balance Sheets, and it recognizes lease cost for these lease arrangements on a straight-line basis over the lease term. Many lease arrangements provide the options to exercise one or more renewal terms or to terminate the lease arrangement. The Company includes these options when it will be reasonably certain to exercise them in the lease term used to establish the right-of-use assets and lease liabilities. Generally, lease agreements do not include an option to purchase the leased asset, residual value guarantees or material restrictive covenants.

As most of ~~the Company’s~~our lease arrangements do not provide an implicit interest rate, the Company applies an incremental borrowing rate based on the information available at the commencement date of the lease arrangement to determine the present value of lease payments.

No lease costs associated with finance leases and sale-leaseback transactions occurred and ~~the Company’s~~our lease income associated with lessor and sublease arrangements are not material to ~~the Company’s~~our Condensed Consolidated Financial Statements.

~~Operating~~Our operating leases cost components are reported in ~~the~~our Condensed Consolidated Statements of Operations as follows:

(in thousands)	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended December 31,
Operating lease components	2021		2020		2021		2020		2021		2020
Operating leases costs recorded in General and Administrative expenses	$	132	$	52	$	264	$	104	$	111	$	132
Operating lease right-of-use asset impairment recorded in Other expenses	$	—	$	—	$	—	$	87

The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows:

Effective January 27, 2015, the Company’s Board of Directors adopted the 2015 Stock Incentive Plan (the “2015 Plan”) which provides for up to 1,250,000 common shares available for issuance to provide a long-term incentive plan for officers, employees, directors and/or consultants to directly link incentives to stockholder value. The 2015 Plan was approved by the Company’s stockholders in February 2015. The Company’s 2015 Plan provides for grants to executives in various forms including restricted shares of the Company’s common stock and stock options. Awards are discretionary and are determined by the Compensation Committee of the Board of Directors. Awards vest based upon service conditions. Non-vested restricted shares generally vest over requisite service periods of one to six years from the date of grant.

The Company recognizes stock-based compensation expense for (i) Board of Directors fees (generally paid in treasury stock), and (ii) other awards under the 2015 Plan (paid in restricted stock and stock options). Stock-based compensation expense is recognized in general and administrative expenses in the Condensed Consolidated Statements of Operations.

The Board of Directors can either elect to receive stock compensation or cash for their fees for services provided. Stock-based compensation expense relating to the Board of Director fees was approximately ~~$222,000~~$179,000 and ~~$444,000~~$222,000 for the three ~~and six~~ months ended ~~March~~December 31, 2021 ~~respectively,~~ and 2020, respectively.

Stock compensation expense related to the Restricted Stock was approximately ~~$162,000~~$136,000 and ~~$355,000~~$25,000 for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020, respectively.

There was approximately $72,000 and $144,000 of total unrecognized stock compensation costs related to unvested stock compensation for the Restricted Stock grants at December 31, 2021 and September 30, 2021, respectively.

On November 5, 2021, the Company awarded 2,224 restricted shares of the Company’s common stock to certain executives and senior managers under the 2015 Plan at a weighted average fair value of $37.13 per common share, vesting on January 1, 2023.

On October 15, 2021, the Company awarded 2,500 restricted shares of the Company’s common stock (“Restricted Stock”) to the President and CEO under the 2015 Plan at a weighted average fair value of $34.41 per common share, vesting on January 1, 2022.

On November 10, 2020, the Company awarded 5,885 restricted shares of the Company’s common stock (“Restricted Stock”) to certain other executives and senior managers under the 2015 Plan at a weighted average fair value of $31.20 per common share, vesting on January 1, 2022.

Stock compensation expense related to the Restricted Stock of approximately $40,000 and $65,000 for the three and six months ended March 31, 2021, respectively, and approximately $26,000 and $52,000 for the three and six months ended March 31, 2020, respectively. There was approximately $119,000 and $0 of total unrecognized stock compensation costs related to unvested stock compensation for the Restricted Stock grants at March 31, 2021 and September 30, 2020, respectively.

Stock option grants of 118,000 options to certain ~~Officers~~officers and ~~Managers~~managers of the Company (collectively the “2020 Option Grants”) were granted on October 11, 2019. The option exercise price was set at $33.96, the closing price on October 11, 2019. The 2020 Option Grants will vest as follows: (i) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $35.00; (ii) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $40.00; (iii) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $45.00; and (iv) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $50.00. If the applicable stock price hurdles have not been achieved by (A) the date that is 18 months following the termination of employment, if the employment is terminated due to death or disability, (B) the date that is 12 months following the termination of employment, if the employment is terminated by the Company without cause, by the employee with good reason, or due to the employee’s retirement, or (C) the date of the termination of employment for any other reason, then any unvested options will be forfeited. In addition, if the applicable stock price hurdles have not been achieved by December 31, 2022 then any unvested options will be forfeited. The 2020 Option Grants will also become vested to the extent that the applicable stock price hurdles are satisfied in connection with a change in control of the Company. During the ~~six~~three months ended ~~March~~December 31, 2021, the stock did not trade above $40.00 per share for twenty consecutive days (the $35.00 per share threshold was met during fiscal year 2020 and thus 25% was previously vested); accordingly, no additional amounts of the 2020 Option Grants vested at ~~March~~December 31, 2021.

Stock option grants of 10,000 options to Mr. John Kiernan (the “2019 Option Grants”) were granted on October 25, 2018. The option exercise price for these options was set at $33.34, the closing price on October 25, 2018. The 2019 Option Grants will vest as follows: (i) 3,333 of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $40.00; (ii) 3,333 of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $45.00; and (iii) 3,334 of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $50.00. If the applicable stock price hurdles have not been achieved by (A) the date that is 18 months following Mr. Kiernan’s termination of employment, if Mr. Kiernan’s employment is terminated due to death or disability, (B) the date that is 12 months following Mr. Kiernan’s termination of employment, if Mr. Kiernan’s employment is terminated by the Company without cause, by Mr. Kiernan with good reason, or due to Mr. Kiernan’s retirement, or (C) the date of the termination of Mr. Kiernan’s employment for any other reason, then any unvested options will be forfeited. In addition, if the applicable stock price hurdles ~~have~~were not ~~been~~ achieved by December 31, 2021, ~~then~~ any unvested options ~~will~~would be forfeited. ~~The 2019 Option Grants will also become vested to the extent that the applicable stock price hurdles are satisfied in connection with a change in control of the Company.~~ Since the date of grant, the stock did not trade above $40.00 per share for twenty consecutive days; ~~accordingly, NaN of~~therefore, the 2019 Option ~~Grants are vested at March~~grants were forfeited as of December 31, 2021.

Stock option grants of 210,000 options to Mr. Remy Trafelet and 90,000 options to Mr. John Kiernan (collectively, the “2018 Option Grants”) were granted on September 7, 2018. The option exercise price for these options was set at $33.60, the closing price on September 7, 2018. The 2018 Option Grants will vest as follows: (i) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $35.00; (ii) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $40.00; (iii) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $45.00; and (iv) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $50.00. If

the applicable stock price hurdles have not been achieved by (A) the date that is 18 months following the respective Executive’s termination of employment, if the respective Executive’s employment is terminated due to death or disability, (B) the date that is 12 months following the respective Executive’s termination of employment, if the respective Executive’s employment is terminated by the Company without cause, by the respective Executive with good reason, or due to the respective Executive’s retirement, or (C) the date of the termination of the respective Executive’s employment for any other reason, then any unvested options will be forfeited. In addition, if the applicable stock price hurdles have not been achieved by December 31, 2021 then any unvested options will be forfeited. The 2018 Option Grants will also become vested to the extent that the applicable stock price hurdles are satisfied in connection with a change in control of the Company. ~~During~~With respect to the ~~six~~2018 Options Grants issued to Mr. John Kiernan, during the three months ended ~~March~~December 31, 2021, the stock did not trade above $~~40.00~~$40.00 per share for a consecutive twenty days (the $35.00 per share threshold was met during fiscal year 2020 and thus 25% was previously vested); accordingly, 0 additional stock options of Mr. Kiernan's 2018 Option Grants vested at ~~March~~December 31, 2021. ~~As set forth below, more than a majority~~Since only 25% of the 2018 Options Grants vested for Mr. John Kiernan, 67,500 of the 2018 Options Grants were forfeited as of

December 31, 2021. The 2018 Option Grants issued to Mr. Trafelet were forfeited ~~vesting conditions~~as part of ~~the remainder were modified, all pursuant to the Alico Settlement Agreement, and as noted below, such Option Grants issued to Mr. Trafelet have subsequently all been forfeited.~~

A stock option grant of 300,000 options in the case of Mr. Trafelet and 225,000 options in the case of each of Mr. Henry Slack and Mr. George Brokaw (collectively, the “2016 Option Grants”) were granted on December 31, 2016. The option price was set at $27.15, the closing price on December 31, 2016. The 2016 Option Grants will vest as follows: (i) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $60.00; (ii) 25% of the options will vest if such price during a consecutive 20-trading day period exceeds $75.00; (iii) 25% of the options will vest if such price during a consecutive 20-trading day period exceeds $90.00; and (iv) 25% of the options will vest if such price during a consecutive 20-trading day period exceeds $105.00. If the applicable stock price hurdles have not been achieved by (A) the second anniversary of the Executive’s termination of employment, if the Executive’s employment is terminated due to death or disability, (B) the date that is 18 months following the Executive’s termination of employment, if the Executive’s employment is terminated bysettlement agreement entered into with the Company without cause, by the Executive with good reason, or due to the Executive’s retirement, or (C) the date of the termination of the Executive’s employment for any other reason, then any unvested options will be forfeited. In addition, if the applicable stock price hurdles have not been achieved by the fifth anniversary of the grant date (or the fourth anniversary of the grant date, in the case of the tranche described in clause (i) above), then any unvested options will be forfeited. The 2016 Option Grants will also become vested to the extent that the applicable stock price hurdles are satisfied in connection with a change in control of the Company. Since the date of grant the stock did not trade above $60.00 per share for twenty consecutive days; accordingly, NaN of the 2016 Option Grants are vested at March 31, 2021. As set forth below, all the 2016 Option Grants issued to Mr. Trafelet were forfeited pursuant to the Alico Settlement Agreement, as defined below.

~~Additionally, 187,500 shares of the 2016 Option Grants made to each of Messrs. Slack and Brokaw were forfeited~~ on ~~September 5, 2018, and no replacement options were granted.~~

~~Pursuant to an Alico Settlement Agreement dated~~ February 11, 2019 (described in Note 13. “Related Party Transactions”), which was unanimously approved by the Board of Directors, Mr. Trafelet agreed to voluntarily resign from his roles as President and Chief Executive Officer and a director of the Company. Under the Settlement Agreement, Mr. Trafelet forfeited (i) all of the 2016 Option Grants granted to him and (ii) all of the 2018 Option Grants granted to him in September 2018, other than 26,250 stock options that were to vest if the minimum price of Alico's common stock over 20 consecutive trading days exceeded $35.00 per share and 26,250 stock options that were to vest if the minimum price of Alico's common stock over 20 consecutive trading days exceeded $40.00 per share (“2019 Modified Option Grant”), in each case, by the first anniversary of the date of the Alico Settlement Agreement (collectively, the "Retained Options"). Any Retained Options that vest in accordance with their terms were to expire on the date that is six months following the date on which the Retained Option vests, and any Retained Options that do not vest by the first anniversary of the Alico Settlement Agreement were to be forfeited as of such first anniversary. Although, by the first anniversary of the Alico Settlement Agreement, the Company’s common stock traded above $35.00 per share for a consecutive twenty days and thus 26,250 stock options from the 2019 Modified Options Grant vested, such Retained Options were not exercised within six months following the date on which such Retained Options vested, and accordingly they were forfeited. Additionally, since the stock did not trade above $40.00 per share for a consecutive twenty days by the first anniversary of the date of the Alico Settlement Agreement, the other 26,250 stock options from the 2019 Modified Option Grants never vested and were forfeited.

Stock compensation expense related to the options of approximately ~~$61,000~~$60,000 and ~~$121,000~~$60,000 was recognized for the three ~~and six~~ months ended ~~March~~December 31, 2021 ~~respectively,~~ and ~~approximately $301,000 and $383,000 was recognized for the three and six months ended March 31,~~ 2020, respectively. At ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, there was approximately ~~$255,000~~$73,000 and ~~$376,000,~~$134,000, respectively, of total unrecognized stock compensation costs related to unvested share-based compensation for the option grants. The total unrecognized compensation cost is expected to be recognized over a weighted-average period of ~~1.22~~1.00 years.

The fair value of the 2020 ~~and 2019~~ Option ~~Grants~~Grant 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 timeframes for the various market conditions being met.

The weighted-average grant-date fair value of the 2020 Option Grant was $3.20. There were no additional stock options granted or exercised for the ~~six~~three months ended ~~March~~December 31, 2021.

~~The weighted-average grant-date fair value of the 2019 Modified Option Grant was $1.40.~~

~~The weighted-average grant-date fair value of the 2019 Option Grants was $7.10.~~

On October 10, 2019, the Board of Directors authorized the repurchase of up to 7,000 shares of the Company’s common stock from 734 Investors in a privately negotiated repurchase of shares; and on October 15, 2019, the Company entered into a repurchase agreement to repurchase a total of 7,000 shares of the Company’s common stock from 734 Investors, effective October 15, 2019.

The following table illustrates the Company’s treasury stock activity for the ~~six~~three months ended ~~March~~December 31, 2021:

(in thousands, except share amounts)
	Shares			Cost			Shares			Cost
Balance as of September 30, 2020		923,621		$	30,779
Balance as of September 30, 2021								890,141		$	29,853
Issued to employees and directors		(20,889	)		(556	)		(14,928	)		(454	)
Balance as of March 31, 2021		902,732		$	30,223
Balance as of December 31, 2021								875,213		$	29,399

The Company had outstanding standby letters of credit in the total amount of approximately ~~$236,000 and $399,000~~$336,000 at ~~March~~December 31, 2021 and September 30, ~~2020,~~2021, respectively, to secure its various contractual obligations.

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.

The Company enters into contracts for the purchase of citrus trees during the normal course of its business. As of ~~March~~December 31, 2021, the Company had approximately ~~$2,581,000~~$1,508,000 relating to outstanding commitments for these purchases that will be paid upon delivery of the remaining citrus trees.

~~Henry R. Slack~~On January 1, 2022, Mr. Kiernan, the Company’s President and ~~George R. Brokaw~~

~~On December 31, 2016, the Company~~CEO, entered into ~~new employment agreements (collectively, the “Employment Agreements”) with Henry R. Slack,~~a Hunting Lease Agreement and ~~George R. Brokaw. Mr. Slack previously served as the Executive Chairman of the Company,~~Real Estate Purchase and Mr. Brokaw previously served as the Executive Vice Chairman of the Company. The Employment Agreements provided for an annual base salary of $250,000 in the case of Mr. Slack and an annual base salary of $250,000 in the case of Mr. Brokaw.

~~Effective July 1, 2019, Mr. Slack resigned his employment~~Sale Option Agreement, with the Company ~~as Executive Chairman. Effective December 31, 2019, Mr. Brokaw resigned his employment with~~(the “Kiernan Lease Agreement”). Under the ~~Company as Executive Vice Chairman. Mr. Slack and Mr. Brokaw continue to serve on the Board of the Company.~~

On February 11, 2019, as contemplated by a settlement agreement between the Company, certain members of the Board of Directors, Mr. Trafelet, and certain third parties affiliated with Mr. Trafelet (the “Alico Settlement Agreement”) Mr. Trafelet submitted to the Board his resignation as President and Chief Executive Officer of the Company and a member of the Board, effective upon the execution of the Alico Settlement Agreement. Also, on February 11, 2019, as contemplated by the Alico SettlementKiernan Lease Agreement, the Company ~~entered into~~is leasing approximately 93 acres of Company owned, largely unimproved land (the “Land”) to Mr. Kiernan for a ~~consulting agreement (the "Consulting Agreement")~~three-year term commencing on January 1, 2022, and ending on January 1, 2025, and with ~~Mr. Trafelet and 3584 Inc., an entity controlled by Mr. Trafelet (the "Consultant"). Pursuant to~~a yearly rent of $1,860. Additionally, under the ~~Consulting~~terms of the Kiernan Lease Agreement, Mr. Trafelet would make himself available to provide consulting services to the Company through the Consultant for up to 24 months. In exchange for the consulting services, the Consultant received an annual consulting fee of $400,000. As of March 31, 2021, the Company has ~~paid approximately $800,000 in consulting fees~~granted to Mr. Kiernan an option to purchase the Land from the Company, exercisable only during the one-year period January 1, 2022, through January 1, 2023, and ~~no further payments are due under this Consulting Agreement.~~

~~Distribution~~at a price of ~~Shares~~$480,000 ($5,161 per acre), which price is based on an independent appraisal obtained by ~~Alico’s Largest Shareholder~~

~~On November 12, 2019, 734 Investors,~~ the Company’s largest shareholder from 2013 until November 12, 2019, distributed the 3,173,405 shares of Company common stock held by it, on a pro rata basis, to its members. The Company understands this share distribution was made in anticipation of the dissolution of 734 Investors. Transfers of these shares were not made pursuant to any current Alico registration statement.Company.

~~On April 15, 2021,~~In the ~~State~~last week of ~~Florida purchased, under~~January 2022, certain areas where the ~~Florida Forever program, approximately 5,734 acres~~Company’s citrus trees are located experienced below freezing conditions that are expected to have a material adverse effect on the yield of this season’s Valencia crop. The Company is still in the process of assessing the extent of the ~~Alico Ranch for approximately $14,445,000 pursuant to an option agreement between the State of Florida~~damage and the ~~Company. The Company will recognize a gain~~expected impact on its current financial position, results of ~~approximately $13,980,000.~~operations and cash flows and the extent to which there might be any long-term effects.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related Notes thereto.

We provide forward-looking information in this Quarterly Report on Form 10-Q, particularly in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “plans,” “expect,” “may,” "anticipate,” “intend,” “should be,” “will be” “is likely to,” “believes,” and similar expressions referring to future periods. Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules, including tax laws and tax rates; climate change; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their ~~by-products;~~by-products, such as the freeze in the last week of January 2022; increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; market pricing of citrus; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest rates; availability of refinancing; availability of financing for land development activities and other growth and corporate opportunities; onetime events; acquisitions and divestitures; ability to make strategic acquisitions or divestitures; ability to redeploy proceeds from divestitures; ability to consummate selected land acquisitions; ability to take advantage of tax deferral options; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in agricultural land values; impact of the COVID-19 outbreak and coronavirus pandemic on our agriculture operations, including without limitation demand for product, supply chain, health and availability of our labor force, the labor force of contractors we engage, and the labor force of our competitors; other risks related to the duration and severity of the COVID-19 outbreak and coronavirus pandemic and its impact on Alico’s business; the impact of the COVID-19 outbreak and coronavirus pandemic on the U.S. and global economies and financial ~~markets;~~markets, including without limitation related legislative and regulatory initiatives; access to governmental loans and incentives; any reduction in the public float resulting from repurchases of common stock by Alico; changes in equity awards to employees; whether the Company's dividend policy, including its recent increased dividend amounts, is continued; whether the Company’s cash flow can support and sustain the Company’s dividend policy, including any future increases in dividend amounts; the impact on the trading price of the Company’s common stock as a result of an expressed desire of certain of our ~~shareholders~~stockholders to liquidate their shareholdings ~~and~~by virtue of past market sales of common stock, ~~and other~~by sales of common stock or by way of future transactionsdesigned to consummate such expressed desire; political changes and economic crises; ability to implement ESG initiatives; competitive actions by other companies; increased competition from international companies; changes in environmental regulations and their impact on farming practices; the land ownership policies of governments; changes in government farm programs and policies and international reaction to such programs; changes in pricing calculations with our customers; fluctuations in the value of the U.S. dollar, interest rates, inflation and deflation rates; length of terms of contracts with customers; impact of concentration of sales to one customer; and changes in and effects of crop insurance programs, global trade agreements, trade restrictions and tariffs; and soil conditions, harvest yields, prices for commodities, and crop production expenses. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those Risks Factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020,~~2021, and our Quarterly Reports on Form 10-Q.

Alico, Inc., together with its subsidiaries (collectively, “Alico”, the “Company”, “we”, “us” or “our”) generates operating revenues primarily from the sale of its citrus products, providing services to citrus groves owned by third parties, and grazing and hunting leasing. The Company operates as two business segments and all its operating revenues are generated in the United States. For the three ~~and six~~ months ended ~~March~~December 31, 2021, the Company generated operating revenues of approximately

~~$55,944,000 and $69,676,000, respectively, income~~ $15,337,000, a loss from operations of approximately ~~$7,573,000 and $10,442,000, respectively,~~$773,000, and net income attributable to common stockholders of approximately ~~$4,867,000 and $8,712,000, respectively.~~$10,131,000. Net cash ~~provided by~~used in operating activities was approximately ~~$25,626,000~~$9,608,000 for the ~~six~~three months ended ~~March~~December 31, 2021.

The discussion and analysis of the Company's financial condition and results of operations is based upon its unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires it to make certain estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Alico bases these estimates on historical experience, available current market information and on various other assumptions that management believes are reasonable under the circumstances. Additionally, the Company evaluates the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

See Note 1. “Description of Business and Basis of Presentation” to the condensed consolidated financial statements in Item 1 of Part I of this Form 10-Q for a detailed description of recent accounting pronouncements. There have been no material changes to the Company’s critical accounting policies and estimates from those reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, as filed with the SEC on December 7, 2021.

~~For~~Since the ~~protection~~commencement of ~~our employees~~COVID-19 in ~~accordance with the Centers For Disease Control and Prevention (CDC) guidelines,~~March 2020, the Company ~~arranged to have the majority of office personnel work remotely and continues to do so, has taken~~took steps to allow and encourage greater ~~separation~~social distancing for both our employed and our contracted field workers and has worked with its harvesters, haulers, and suppliers to minimize close interactions. ~~The Company continues to assess the situation on a routine basis.~~

To date, the Company has experienced no material adverse impacts from this pandemic.

In April 2021, the Company made a prepayment of $10,312,500 on the Met Fixed-Rate Term Loans and, effective May 1, 2021, the Company modified its Met Fixed-Rate Term Loans, which in aggregate, after the prepayment, had a balance of $70,000,000 to be interest only with a balloon payment to be paid at maturity, which is November 1, 2029. The interest rate on these Met Fixed-Rate Term Loans, which were bearing interest at 4.15%, has been adjusted to 3.85%. As part of this modification, the Company will no longer have the prepayment option previously allowed under the arrangement.

On ~~April 15,~~December 3, 2021,the State of Florida purchased, under the Florida Forever program, approximately ~~5,734~~1,638 acres of the Alico Ranch for approximately ~~$14,445,000,~~$5,675,000 pursuant to an option agreement entered into between the State of Florida and Alico on December 15, 2020. This is the third sales transaction we have completed with the State of Florida within the last three years, aggregating over 22,000 acres. Alico used a majority of the net sales proceeds to prepay a portion of its fixed-rate term debt.

~~On October 30, 2020,~~ the Company ~~purchased approximately 3,280 gross~~on September 21, 2021. The acres ~~located~~were intentionally sold at a price below market value, which resulted in ~~Hendry County~~a charitable deduction for tax purposes. As a ~~purchase price~~result of ~~$18,230,000. This acquisition allows~~this charitable contribution, the Company to add additional scale to its existing 45,000 gross acres of citrus properties. Strategically, with these acquired groves neighboring existing Alico groves, Alico believes that this acquisition will help Alico with its operation asgenerated a ~~low-cost, high producing citrus grower.~~tax benefit.

The Company was eligible for Hurricane Irma federal relief programs for block grants that were being administered through the State of Florida. During the fiscal years ended September 30, 2021, 2020, and 2019, the Company received approximately $4,299,000, $4,629,000, and $15,597,000, respectively, under the Florida Citrus Recovery Block Grant (“CRBG”) program. These federal relief proceeds ~~represented Part 1 and Part 2 reimbursement under~~are included as a reduction to operating expenses in the ~~program. In the six months ended March 31, 2021, the Company received approximately $4,299,000, representing reimbursement under Part 3~~Condensed Consolidated Statements of ~~the program.~~Operations. The remaining portion of the funds that ~~are due to Alico~~the Company anticipates receiving under the Florida CRBG program relates to certain crop insurance expenses incurred by the Company ~~which~~and is estimated to be approximately $2,000,000 ~~million~~in the aggregate. In October 2021, the Company received a portion of this crop insurance expense reimbursement in an amount equal to approximately $1,000,000 and ~~is expected to be received in part in fiscal 2021 and~~anticipates receiving the remaining portion in fiscal ~~2022.~~2023.

In the last week of January 2022, certain areas where the Company’s citrus trees are located experienced below freezing conditions that are expected to have a material adverse effect on the yield of this season’s Valencia crop. The Company is still in the process of assessing the extent of the damage and the expected impact on its current financial position, results of operations and cash flows and the extent to which there might be any long-term effects.

The following discussion provides an analysis of Alico's results of operations and should be read in conjunction with the accompanying Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020:

(in thousands)
	Three Months Ended March 31,					Change						Six Months Ended March 31,					Change						Three Months Ended December 31,					Change
	2021			2020		$			%			2021		2020			$			%			2021			2020		$			%
Operating revenues:
Alico Citrus	$	55,268		$	49,801	$	5,467			11.0	%	$	68,194	$	59,976		$	8,218			13.7	%	$	14,748		$	12,926	$	1,822			14.1	%
Land Management and Other Operations		676			714		(38	)		(5.3	)%		1,482		1,544			(62	)		(4.0	)%		589			806		(217	)		(26.9	)%
Total operating revenues		55,944			50,515		5,429			10.7	%		69,676		61,520			8,156			13.3	%		15,337			13,732		1,605			11.7	%

Gross profit:
Alico Citrus		9,750			6,283		3,467			55.2	%		14,529		11,618			2,911			25.1	%		1,362			4,779		(3,417	)		(71.5	)%
Land Management and Other Operations		476			334		142			42.5	%		1,094		613			481			78.5	%		449			618		(169	)		(27.3	)%
Total gross profit		10,226			6,617		3,609			54.5	%		15,623		12,231			3,392			27.7	%		1,811			5,397		(3,586	)		(66.4	)%

General and administrative expenses		2,653			2,953		(300	)		(10.2	)%		5,181		5,713			(532	)		(9.3	)%		2,584			2,528		56			2.2	%
Income from operations		7,573			3,664		3,909			106.7	%		10,442		6,518			3,924			60.2	%
Total other (expense) income, net		(1,104	)		1,398		(2,502	)	NM				1,081		(197	)		1,278		NM
(Loss) income from operations																								(773	)		2,869		(3,642	)	NM
Total other income, net																								7,553			2,185		5,368			245.7	%
Income before income taxes		6,469			5,062		1,407			27.8	%		11,523		6,321			5,202			82.3	%		6,780			5,054		1,726			34.2	%
Income tax provision		1,579			1,496		83			5.5	%		2,829		1,857			972			52.3	%
Income tax (benefit) provision																								(3,300	)		1,250		(4,550	)	NM
Net income		4,890			3,566		1,324			37.1	%		8,694		4,464			4,230			94.8	%		10,080			3,804		6,276			165.0	%
Net (income) loss attributable to noncontrolling interests		(23	)		5		(28	)	NM				18		(102	)		120		NM
Net loss attributable to noncontrolling interests																								51			41		10			24.4	%
Net income attributable to Alico, Inc. common stockholders	$	4,867		$	3,571	$	1,296			36.3	%	$	8,712	$	4,362		$	4,350			99.7	%	$	10,131		$	3,845	$	6,286			163.5	%

The following discussion provides an analysis of the Company's operating segments:

The table below presents key operating measures for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020:

(in thousands, except per box and per pound solids data)	(in thousands, except per box and per pound solids data)																									(in thousands, except per box and per pound solids data)

		Three Months Ended												Six Months Ended													Three Months Ended
		March 31,						Change						March 31,						Change							December 31,						Change
		2021			2020			Unit			%			2021			2020			Unit			%				2021			2020			Unit			%
Operating Revenues:
Early and Mid-Season		$	21,749		$	22,237		$	(488	)		(2.2	)%	$	31,064		$	31,303		$	(239	)		(0.8	)%		$	10,378		$	9,315		$	1,063			11.4	%
Valencias			28,014			25,810			2,204			8.5	%		28,014			25,810			2,204			8.5	%
Fresh Fruit			176			802			(626	)		(78.1	)%		585			1,537			(952	)		(61.9	)%			879			409			470			114.9	%
Purchase and Resale of Fruit			280			556			(276	)		(49.6	)%		337			603			(266	)		(44.1	)%			53			57	��		(4	)		(7.0	)%
Grove Management Services			4,979			373			4,606		NM				8,071			678			7,393		NM					3,418			3,092			326			10.5	%
Other			70			23			47		NM				123			45			78			173.3	%			20			53			(33	)		(62.3	)%
Total		$	55,268		$	49,801		$	5,467			11.0	%	$	68,194		$	59,976		$	8,218			13.7	%		$	14,748		$	12,926		$	1,822			14.1	%
Boxes Harvested:
Early and Mid-Season			1,734			2,266			(532	)		(23.5	)%		2,519			3,146			(627	)		(19.9	)%			827			785			42			5.4	%
Valencias			2,043			2,260			(217	)		(9.6	)%		2,043			2,260			(217	)		(9.6	)%
Total Processed			3,777			4,526			(749	)		(16.5	)%		4,562			5,406			(844	)		(15.6	)%			827			785			42			5.4	%
Fresh Fruit			11			108			(97	)		(89.8	)%		59			203			(144	)		(70.9	)%			69			48			21			43.8	%
Total			3,788			4,634			(846	)		(18.3	)%		4,621			5,609			(988	)		(17.6	)%			896			833			63			7.6	%
Pound Solids Produced:
Early and Mid-Season			9,466			13,091			(3,625	)		(27.7	)%		13,598			17,947			(4,349	)		(24.2	)%			4,021			4,132			(111	)		(2.7	)%
Valencias			11,670			13,661			(1,991	)		(14.6	)%		11,670			13,661			(1,991	)		(14.6	)%
Total			21,136			26,752			(5,616	)		(21.0	)%		25,268			31,608			(6,340	)		(20.1	)%			4,021			4,132			(111	)		(2.7	)%
Pound Solids per Box:
Early and Mid-Season			5.46			5.78			(0.32	)		(5.5	)%		5.40			5.70			(0.30	)		(5.3	)%			4.86			5.26			(0.40	)		(7.6	)%
Valencias			5.71			6.04			(0.33	)		(5.5	)%		5.71			6.04			(0.33	)		(5.5	)%
Average Price per Pound Solids:
Price per Pound Solids:
Early and Mid-Season		$	2.30		$	1.70		$	0.60			35.3	%	$	2.28		$	1.74		$	0.54			31.0	%		$	2.58		$	2.25		$	0.33			14.7	%
Valencias		$	2.40		$	1.89		$	0.51			27.0	%	$	2.40		$	1.89		$	0.51			27.0	%
Price per Box:
Fresh Fruit		$	16.00		$	7.43		$	8.57			115.3	%	$	9.92		$	7.57		$	2.35			31.0	%		$	12.74		$	8.52		$	4.22			49.5	%
Operating Expenses:
Cost of Sales		$	31,063		$	30,747		$	316			1.0	%	$	38,483		$	37,374		$	1,109			3.0	%		$	8,856		$	7,420		$	1,436			19.4	%
Harvesting and Hauling			10,059			12,290			(2,231	)		(18.2	)%		12,138			14,755			(2,617	)		(17.7	)%			2,361			2,079			282			13.6	%
Purchase and Resale of Fruit			238			392			(154	)		(39.3	)%		288			424			(136	)		(32.1	)%			46			50			(4	)		(8.0	)%
Grove Management Services			4,321			252			4,069		NM				7,055			435			6,620		NM					3,071			2,734			337			12.3	%
Other			(163	)		(163	)		—			—			(4,299	)		(4,630	)		331			(7.1	)%			(948	)		(4,136	)		3,188			(77.1	)%
Total		$	45,518		$	43,518		$	2,000			4.6	%	$	53,665		$	48,358		$	5,307			11.0	%		$	13,386		$	8,147		$	5,239			64.3	%

The Company sells its Early and Mid-Season and Valencia oranges to processors that convert most of the citrus crop into orange juice. The processors generally buy the citrus crop on a pound solids basis, which is the measure of the soluble solids (sugars and acids) contained in one box of fruit. The Company’s fresh fruit is generally sold to packing houses that purchase the citrus on a per box basis. The Company also provides citrus grove caretaking and harvest and haul management services to third parties in which revenues are recorded, including a management fee. Other revenues consist of the purchase and reselling of fruit.

Alico's operating expenses consist primarily of cost of sales, ~~and~~ harvesting and hauling costs and grove management service costs. Cost of sales represents the cost of maintaining the citrus groves for the preceding calendar year and does not vary in relation to production. Harvesting and hauling costs represent the costs of bringing citrus product to processors and varies based upon the number of boxes produced. Grove management services costs include those costs associated with citrus grove caretaking and harvest and haul management services provided to third parties. Other expenses include the period costs of third-party grove caretaking and the purchase and reselling of third-party fruit.

The increase in revenue for the three ~~and six~~ months ended ~~March~~December 31, 2021, compared to the three ~~and six~~ months ended ~~March~~December 31, 2020, was primarily due to an increase in ~~the~~ revenue generated from ~~grove management services~~the Early and ~~the Valencia fruit harvested.~~

The Company generated greater revenue from its grove management services it provides to third parties. On July 16, 2020, the Company executed an agreement with an affiliated group of third parties to provide citrus grove caretaking and harvest and haul management services for approximately 7,000 acres owned by such third parties. Under the terms of this agreement, the Company is reimbursed by the third parties for all its costs incurred related to providing these services and receives a management fee based on acres covered under this agreement. The Company records both anMid-Season harvest. This increase in revenues and expenses as and when the Company provides these citrus grove caretaking management services. For the three and six months ended March 31, 2021, under this agreement, the Company recorded approximately $4,685,000 and $7,554,000, respectively, of operating revenue relating to these grove management services, including the management fee.

~~The increase from the Valencia fruit harvest has been~~was driven by an increase in the market price per pound solids, ~~as compared to the prior year. The increase in the price per pound solids~~which is due to ~~increased~~overall decreased production of citrus fruit and continued strong consumption of ~~Not-from-Concentrate~~Not from Concentrate Orange Juice (“NFC”) ~~as well as tighter supplies of citrus fruit from Florida, Brazil and Mexico,~~, which has ~~in turn~~ led to reduced inventory levels. ~~Largely offsetting this~~While consumption has slightly dropped from its highest levels when the COVID-19 pandemic initially started back in March 2020, consumption, as reported by Nielsen data on January 13, 2022, has increased approximately 11% for the twelve-week period ended January 1, 2022, as compared to the similar twelve-week period prior to the COVID -19 pandemic.

Additionally, the Company saw a slight increase in ~~pricing is fewer Valencia~~the Early and Mid-Season boxes ~~being~~ harvested ~~as well as pound solids per box being lower~~ for the three ~~and six~~ months ended ~~March~~December 31, 2021, compared to the three ~~and six~~ months ended ~~March~~December 31, ~~2020. While~~2020, as a result of the Company ~~has harvested~~harvesting a greater percentage of its ~~Valencia~~Early and Mid-Season crop through ~~March~~December 31, 2021, measured as a percentage of its estimated full year ~~Valencia~~Early and Mid-Season crop, as compared to the same period in the prior ~~year,~~year. Overall, the Company, along with the Florida industry in general, is recording a smaller number of boxes harvested ~~as a result of~~due to an even greater fruit drop rate, attributed to disease and weather, during the current harvest season, as compared to the previous year. ~~In addition,~~

Partially offsetting this increase in revenues was a decrease in pound solids per box during the three months ended December 31, 2021, as compared to the prior year’s three months ended December 31, 2020, mainly because the internal quality of the fruit ~~was~~is not as strong as it was in the previous ~~year resulting in lower pound solids per box.~~year.

~~While the Early~~The Company, to a smaller extent, has also recorded increases in revenue from sales of fresh fruit and ~~Mid-Season revenue for the three and six months ended March 31, 2021 was consistent with the same periods~~grove management services. The increase in the ~~prior year, the Company, similarly with the Valencia harvest, experienced a reduction~~fresh fruit is primarily due to an increase in ~~both processed boxes and pound solids~~pricing per box, ~~as compared to the same period in the prior year. This reduction was offset by~~and the increase in ~~market price per pound solid.~~grove management services is directly correlated to the amount of caretaking services being provided to third party citrus grove owners.

The Company harvest season to date has not been impacted by the COVID-19 pandemic.

The USDA, in its ~~April 9, 2021~~January 12, 2022 Citrus Crop Forecast for the ~~2020-21~~2021-22 harvest season, indicated its expectation is that the overall Florida orange crop will decrease from approximately ~~67,400,000 boxes for the 2019-20 crop year to approximately 51,700,000~~52,800,000 boxes for the 2020-21 crop year to approximately 44,500,000 boxes for the 2021-22 crop year, a decrease of approximately ~~23.3%~~15.7%. With respect to the Early and Mid-Season crop, the USDA is forecasting a 22.9% decline. The Company ~~through~~is anticipating a 12-15% decrease for our Early and Mid-Season crop, as compared to the same period last year. The Company believes the lower rate of decline as compared to the state forecast is due to the efficiencies of its ~~continued~~ comprehensive grove management ~~program, anticipates its decline in this current harvest~~program. As for the Valencia crop, it is too soon to project the extent of the damage and loss for the Valencia season crop ~~will be in~~from the ~~range~~recently experienced freeze which affected certain areas of ~~15-20%.~~the Company’s citrus acres.

The increase in operating expenses for the three ~~and six~~ months ended ~~March~~December 31, 2021, as compared to the three ~~and six~~ months ended ~~March~~December 31, 2020, primarily relates to ~~grove management services it provides to third parties. As mentioned above,~~ the Company executed an agreement with an affiliated group of third parties to provide citrus grove caretaking and harvest and haul management services for approximately 7,000 acres owned by such third parties. Under this agreement, forreceiving less proceeds under the CRBG program during the three ~~and six~~ months ended ~~March~~December 31, 2021, when compared to the three months ended December 31, 2020. Through the end of fiscal year 2021, the Company ~~recorded approximately $4,150,000 and $6,781,000~~had received the anticipated proceeds under the CRBG program, with the exception of ~~operating expenses~~funds that were due relating to ~~these grove management services. Additionally,~~certain crop insurance expenses incurred by the Company. The amount to be received for this crop insurance reimbursement is estimated to be approximately $2,000,000 in the aggregate, of which approximately $1,000,000 was received in October 2021. By comparison, in the three months ended December 31, 2020, the Company received approximately $4,100,000 in proceeds under the CRBG program.

The increase in operating expenses is also in part attributable to the Company ~~purchasing additional citrus acres~~harvesting a greater percentage of boxes, in ~~May and October 2020, which resulted~~relation to the estimated total boxes to be harvested for the full season, during the three months ended December 31, 2021, as compared to the same period in the prior year, leading to a larger percentage of costs being allocated to cost of sales ~~relating to these groves~~ in the current ~~fiscal~~period.

The Company also recorded slight increases in its harvesting and hauling expenses and grove management services expenses. The increase in the harvesting and hauling costs is directly related to the increase in the number of boxes harvested being greater in the three months ended December 31, 2021, when compared to the similar period in the prior year. ~~Partially offsetting these increases was a reduction~~The increase in ~~harvest and haul expenses attributable to a decrease in Early and Mid-season and Valencia boxes harvested.~~

~~As a result of a lower gross profit percentage generated from~~ grove ~~caretaking~~ management services ~~as compared~~is related to ~~citrus sales generated from groves,~~and commensurate with an increase in the ~~overall gross profit percentage within the Alico Citrus segment will be lower in fiscal year 2021 and is expected to be lower in future fiscal years than prior to the execution~~amount of ~~the above-mentioned new~~ caretaking services ~~agreement.~~

The credit amounts shown in “Other” in operating expenses above represents federal relief proceeds received under the CRBG program ~~for~~in the ~~three and six months~~quarters ended ~~March~~December 31, 2021 and 2020.

The table below presents key operating measures for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020:

(in thousands)

	Three Months Ended March 31,				Change						Six Months Ended March 31,				Change						Three Months Ended December 31,				Change
	2021		2020		$			%			2021		2020		$			%			2021		2020		$			%
Revenue From:
Land and Other Leasing	$	623	$	679	$	(56	)		(8.2	)%	$	1,350	$	1,342	$	8			0.6	%	$	528	$	727	$	(199	)		(27.4	)%
Other		53		35		18			51.4	%		132		202		(70	)		(34.7	)%		61		79		(18	)		(22.8	)%
Total	$	676	$	714	$	(38	)		(5.3	)%	$	1,482	$	1,544	$	(62	)		(4.0	)%	$	589	$	806	$	(217	)		(26.9	)%
Operating Expenses:
Land and Other Leasing	$	196	$	248	$	(52	)		(21.0	)%	$	380	$	449	$	(69	)		(15.4	)%	$	140	$	184	$	(44	)		(23.9	)%
Water Conservation		—		130		(130	)		(100.0	)%		—		477		(477	)		(100.0	)%
Other		4		2		2			100.0	%		8		5		3			60.0	%		—		4		(4	)		(100.0	)%
Total	$	200	$	380	$	(180	)		(47.4	)%	$	388	$	931	$	(543	)		(58.3	)%	$	140	$	188	$	(48	)		(25.5	)%

Land and other leasing include lease income from leases for grazing rights, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties, and other miscellaneous income.

The decrease in revenues from Land Management and Other Operations for the six months ended March 31, 2021, as compared to the six months ended March 31, 2020, is primarily due to a modification to a grazing lease whereby the ad valorem taxes due from the lessee were reduced as a result of the Company revising the grazing lease agreement due to the sale of certain ranch acres previously covered under the agreement. Partially offsetting this decrease were the additional revenues generated from the execution of an extension of one of Company’s cell tower leases pursuant to which the leasing rates were increased.

~~The decrease in revenues from Land Management and Other Operations for the~~ three months ended ~~March~~December 31, 2021, as compared to the three months ended ~~March~~December 31, 2020, is primarily due to a decrease in grazing and hunting lease revenue. The decrease in this revenue is a result of the Company selling approximately 21,700 acres of the Alico ranch, which resulted in the reduction of land covered under grazing and hunting lease contracts. Additionally, the modification to the grazing leases resulted in a reduction in the ~~leased acreage relating to hunting leases. The reduction in~~ad valorem taxes due from the ~~leased acreage was partially~~lessees, as the Company revised the grazing lease agreements due to the sale of certain of the ranch acres ~~which were~~ previously ~~included~~covered under ~~these lease arrangements, thus resulting in fewer acres now being leased under these hunting leases.~~the agreement.

The slight decrease in operating expenses from Land Management and Other Operations for the three ~~and six~~ months ended ~~March~~December 31, 2021, compared to the three ~~and six~~ months ended ~~March~~December 31, 2020, is primarily due to the ~~Company no longer pursuing its dispersed water storage project and, therefore, incurring no water conservation expenses for~~reduction of the ~~three and six months ended March 31, 2021.~~ ~~On September 10, 2020,~~ad valorem tax expense due to the Company ~~sold approximately 10,700~~owning fewer ranch acres as result of the sale of certain acres on the western part of Alico Ranch to the State of Florida. Since the acres involved in the sale would have been critical to its planned dispersed water storage project, the Company decided to no longer pursue permit approval activities for this particular project. Accordingly, the Company anticipates it will have no future expenses incurred relating to the dispersed water storage project. Additionally, the Company has seen a decrease in ad valorem taxes as a result of certain ranch land sales which have occurred over the last fiscal year.ranch.

General and administrative expense for the three months ended December 31, 2021 was approximately $2,584,000, compared to approximately $2,528,000 for the three months ended December 31, 2020. The increase was attributable in large part to (i) an increase of approximately $100,000 relating to a company sponsored incentive for employees to obtain the COVID 19 vaccine, (ii) an increase in stock compensation expense of approximately $110,000 relating to Restricted Stock Units awarded to certain executives and senior managers, and (iii) consulting expenses of approximately $105,000 relating the Company’s Environmental, Sustainability and Governance (“ESG”) implementation strategy and related work. Partially offsetting these increases were decreases relating to (i) payroll expenses of approximately $142,000 primarily relating to the reduction in administrative personnel made during the fiscal year ended September 30, 2021, (ii) a reduction in legal expenses of approximately $70,000, which is primarily the result of the Company having incurred additional legal expenses for the three months ended ~~March~~December 31, 2021 were approximately $2,653,000, compared to approximately $2,953,000 for the three months ended March 31, 2020. The decrease was attributable in large part to a reduction in (i) stock compensation expense of approximately $250,000 pertaining to certain stock options that vested in January 2020 ~~which in turn resulted in an acceleration of expense in that quarter, (ii) a reduction in legal fees of approximately $89,000~~ relating to ~~SEC and other corporate matters and (ii)~~the acquisition of a ~~reduction~~citrus grove in pension expense related to the Company’s deferred retirement benefit plan of approximately $77,000 as a result of the Company terminating such plan and paying out each of the plan participants in AugustOctober 2020, and, therefore, incurring no further pension costs subsequent to August 30, 2020. Partially offsetting this decrease was the Company incurring approximately $200,000 in corporate advisory fees in the three months ended March 31, 2021.

General and administrative expenses for the six months ended March 31, 2021 was approximately $5,181,000, compared to approximately $5,713,000 for the six months ended March 31, 2020. The decrease was attributable in large part to a reduction in (i) stock compensation expense of approximately $250,000 pertaining to certain stock options that vested in January 2020, which in turn resulted in an acceleration of expense in that quarter, (ii) a reduction in payroll expenses for the six months ended March 31, 2021 of approximately $160,000 relating to one of the senior managers resigning in December 2019 and (iii) a reduction in ~~pension expense related to the Company’s deferred retirement benefit plan~~Director’s fees of approximately ~~$166,000 as~~$42,000, relating to a ~~result~~modification of the ~~Company terminating such plan and paying out each~~compensation arrangement for the Board of the plan participants in August 2020 and, therefore, incurring no further pension costs subsequent to August 30, 2020. Partially offsetting this decrease was the Company incurring approximately $200,000 in corporate advisory fees in the six months ended March 31, 2021. Directors.

~~Other (expense)~~ income, net for the three months ended ~~March~~December 31, 2021 and 2020, was approximately ~~$(1,104,000)~~$7,553,000 and ~~other income of approximately $1,398,000,~~$2,185,000, respectively. The ~~shift~~increase to ~~other expense, net from~~ other income, net, is primarily due to ~~the Company recognizing a gain~~gains on sale of real estate, property and equipment and assets held for sale of approximately ~~$2,855,000~~$8,445,000 relating to the sale during the current quarter of approximately 1,900 acres, in the aggregate, from the Alico ranch to several third parties. By comparison, for the three months ended ~~March~~December 31, ~~2020. For the three months ended March 31, 2021,~~2020, the Company ~~recorded a nominal loss on~~recognized gains of approximately $3,364,000 relating to the sale of real estate, property and equipment and assets held for sale. Additionally, a decrease in interest expense of approximately ~~$363,000~~$288,000 for the three months ended ~~March~~December 31, 2021, as compared to the three months ended ~~March~~December 31, 2020, was ~~primarily~~the result of the reduction of ~~the Company’s~~its long-term debt ~~due~~attributable to ~~the~~ making ofits mandatory principal ~~payments.~~

~~Other income (expense), net for the six months ended March 31, 2021~~payments and 2020 was approximately $1,081,000 and approximately $(197,000), respectively. The shift to other income, net from other expense, net is primarily due a decrease in interest expense of approximately $718,000 for the six months ended March 31, 2021, as compared to the six months ended March 31, 2020, resulting from the reduction of the Company’s long-term debt due to the making of mandatory principal payments. Additionally, in the six months ended March 31, 2021, the Company recorded gains on sale of real estate, property and equipment and assets held for sale of approximately $3,347,000 relating primarily to the sale of approximately 700 acres from the Alico Ranch to several third parties and the sale of mineral rights to a third party in the six months ended March 31, 2021. By comparison, for the six months ended March 31, 2020, the Company recognized a gain on sale of real estate, property and equipment and assets held for sale of approximately $2,863,000.certain prepayments.

The income tax benefit was approximately $3,300,000 for the three months ended December 31, 2021 and the income tax provision was approximately ~~$1,579,000 and $1,496,000~~$1,250,000 for the three months ended ~~March~~December 31, 2020. During the quarter ended December 31, 2021, and 2020, respectively, and approximately $2,829,000 and $1,857,000 for the six months ended March 31, 2021 and 2020, respectively. The increase in the tax provision for the three months ended March 31, 2021 primarily resulted from the Company ~~generating greater pre-tax income, compared~~sold 1,638 acres of land to the ~~three months ended March 31, 2020. The increase~~State of Florida at a price below market value, which resulted in ~~the~~a charitable deduction for tax provision for the six months ended March 31, 2021 primarily resulted from the Company generating greater pre-tax income, compared to the six months ended March 31, 2020. The Company anticipates it will have additional income taxes aspurposes. As a result of this charitable contribution, the Company generated a ~~sales transaction~~

~~that closed in April 2021 and as a result~~tax benefit. Excluding this tax benefit, the Company would have incurred an income tax provision of ~~various other sales transactions which are anticipated to close prior to fiscal year end September 30, 2021.~~approximately $1,578,000.

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of Alico’s fiscal year produce most of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

(in thousands)	March 31,		September 30,					December 31,		September 30,
	2021		2020		Change			2021		2021		Change
Cash and cash equivalents and restricted cash	$	10,371	$	19,687	$	(9,316	)
Cash and cash equivalents								$	69	$	886	$	(817	)
Total current assets	$	54,906	$	51,899	$	3,007		$	58,579	$	54,913	$	3,666
Total current liabilities	$	26,988	$	21,158	$	5,830		$	15,868	$	22,306	$	(6,438	)
Working capital	$	27,918	$	30,741	$	(2,823	)	$	42,711	$	32,607	$	10,104
Total assets	$	428,783	$	423,937	$	4,846		$	436,882	$	433,217	$	3,665
Principal amount of term loans and lines of credit	$	142,874	$	151,193	$	(8,319	)	$	134,599	$	126,294	$	8,305
Current ratio	2.03 to 1		2.45 to 1					3.69 to 1		2.46 to 1

Alico's business has historically generated full fiscal year positive net cash flows from operating activities, although the net cash flow in the first quarter of each fiscal year has been negative because of seasonality and the need to expend cash in advance of generating revenues from the harvesting season. Sources of cash primarily include cash flows from operations, sales of under-performing land and other assets, amounts available under the Company's credit facilities, and access to capital markets. Access to additional borrowings under revolving lines of credit is subject to the satisfaction of customary borrowing conditions. As a public company, Alico may have access to other sources of capital. However, access to, and availability of, financing on acceptable terms in the future will be affected by many factors, including (i) financial condition, prospects, and credit rating; (ii) liquidity of the overall capital markets; and (iii) the state of the economy. There can be no assurance that the Company will continue to have access to the capital markets on acceptable terms, or at all.

The principal uses of cash that affect Alico's liquidity position include the following: operating expenses including employee costs, the cost of maintaining the citrus groves, harvesting and hauling of citrus products, capital expenditures, stock repurchases, dividends, debt service costs including interest and principal payments on term loans and other credit facilities and acquisitions.

Management believes that a combination of cash-on-hand, cash generated from operations, asset sales and availability under the Company's lines of credit ~~coupled with reduced debt service as a result of recent paydowns and recent adjustments in loan terms on certain of the Company’s indebtedness,~~ will provide sufficient liquidity to service the principal and interest payments on its indebtedness and will satisfy working capital requirements and capital expenditures for at least the next twelve months and over the long term.

Alico has a $70,000,000 working capital line of credit, of which approximately ~~$69,764,000~~$60,287,000 is available for general use as of ~~March~~December 31, 2021, and a $25,000,000 revolving line of credit, all of which is available for general use as of ~~March~~December 31, 2021 (see Note 5. “Long-Term Debt and Lines of Credit" to the accompanying Condensed Consolidated Financial Statements). Additionally, effective May 1, 2021, the Company converted its Met Fixed-Rate Term Loans into interest bearing only loans with a balloon payment of the balance due at maturity, which is November 1, 2029. Such conversion ~~can~~has increased available cash and may be expected to continue to increase the available cash for the foreseeable ~~future, with such increased~~future. With the increase in available cash, ~~being opened up to~~the Company could utilize the available cash for other possible uses such as ~~pay~~paying down ~~of other~~ indebtedness, citrus grove ~~acquisition,~~acquisitions, share repurchases, and additional increased dividends. If the Company chooses to pursue significant growth and other corporate opportunities, such as the transaction whereby it acquired 3,280 citrus grove acres on October 30, 2020 for $18,230,000, ~~pays~~paying down of indebtedness, ~~engages~~engaging in share repurchases or ~~pays~~paying increased dividends, itthese actions could have a material adverse impact on its cash balances and may ~~need~~require the Company to finance such activities by drawing down ~~monies under~~on its lines of credit or by obtaining additional debt or equity financing. There can be no assurance that additional financing will be available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. Any inability to obtain additional financing could adversely impact Alico's ability to pursue different growth and other corporate ~~opportunities or to pursue these other actions.~~

The level of debt could have important consequences on Alico's business, including, but not limited to, increasing its vulnerability to general adverse economic and industry conditions, limiting the availability of cash flow to fund future investments, capital expenditures, working capital, business activities and other general corporate requirements, and limiting flexibility in planning for, or reacting to, changes in its business and industry.

Alico’s credit facilities are subject to various debt covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00; (ii) tangible net worth of at least $160,000,000 increased annually by 10% of consolidated net income for the preceding years, or approximately $173,216,000 applicable for the year ended September 30, 2021; (iii) minimum current ratio of 1.50 to 1.00; (iv) debt to total assets ratio not greater than .625 to 1.00; and (v) solely in the case of the WCLC, a limit on capital expenditures of $30,000,000 per fiscal year. As of December 31, 2021, the Company was in compliance with all of the financial covenants.

Cash and cash equivalents decreased from approximately $886,000 as of September 30, 2021, to approximately $69,000 as of December 31, 2021. The components of these changes are discussed below.

~~The following table details the items contributing to Net Cash Provided by Operating Activities for the six months ended March 31, 2021 and 2020:~~

The increase in net cash provided by operating activities for the six months ended March 31, 2021, as compared to the same period in 2020, was primarily due to an increase in net income and an increase in working capital which was primarily driven by an increase in accounts payable. The increase in accounts payable relates to the timing and billing of fertilizer and chemical applications in the citrus groves.

The following table details the items contributing to Net Cash Used In ~~Investing~~Operating Activities for the ~~six~~three months ended ~~March~~December 31, 2021 and 2020:

The increase in net cash used in operating activities for the three months ended December 31, 2021, as compared to the same period in the prior year, was primarily attributable to the impact of an increase in gain on sale of real estate, property and equipment and assets held for sale in the three months ended December 31, 2021, relating to the sale of certain sections of the Alico Ranch, as compared to gain on sale of real estate, property and equipment and assets held for sale, in the three months ended December 31, 2020, and, the recognition of a charitable deduction associated with the sale of certain acres to the State of Florida, which resulted in the Company recording a tax benefit for the quarter. Partially offsetting these increases in cash used in operating activities was an increase in net income for the three months ended December 31, 2021, as compared to the same period in the prior year.

The following table details the items contributing to Net Cash Provided By (Used In) Investing Activities for the three months ended December 31, 2021 and 2020:

The ~~increase in the amount of net~~shift to cash provided by investing activities from cash used in investing activities for the ~~six~~three months ended ~~March~~December 31, 2021, as compared to the ~~six~~three months ended ~~March~~December 31, 2020, was primarily due to the ~~Company’s purchase of~~Company purchasing, in October 2020, approximately 3,280 gross acres located in Hendry County for a purchase price of approximately ~~$18,230,000.~~

$16,450,000. Only minimal purchases were made in the three months ended December 31, 2021. Additionally, other increases in cash provided by investing activities included higher proceeds from the sale of real estate, property and equipment and assets held for sale in the three months ended December 31, 2021, when compared to the prior three months ended December 31, 2020.

The following table details the items contributing to Net Cash ~~(Used In)~~ Provided By Financing Activities for the ~~six~~three months ended ~~March~~December 31, 2021 and 2020:

(in thousands)	Six Months Ended March 31,									Three Months Ended December 31,
	2021			2020			Change			2021			2020			Change
Repayments on revolving lines of credit	$	(45,247	)	$	(18,805	)	$	(26,442	)	$	(16,319	)	$	(14,187	)	$	(2,132	)
Borrowings on revolving lines of credit		42,305			85,519			(43,214	)		25,696			23,449			2,247
Principal payments on term loans		(5,377	)		(9,820	)		4,443			(1,072	)		(2,689	)		1,617
Treasury stock purchases	—				(238	)		238
Exercise of stock options											170			—			170
Dividends paid		(2,025	)		(1,120	)		(905	)		(3,763	)		(674	)		(3,089	)
Deferred financing costs	—				(23	)		23
Net cash (used in) provided by financing activities	$	(10,344	)	$	55,513		$	(65,857	)
Net cash provided by financing activities										$	4,712		$	5,899		$	(1,187	)

The ~~shift from net~~decrease in cash provided by financing activities ~~for~~in the ~~six~~three months ended ~~March~~December 31, 2021 ~~to cash used in financing activities for the six months ended March 31, 2020 is~~was primarily due to the Company ~~drawing down on its lines of credit during~~increasing the ~~six months ended March 31, 2020. During March 2020, the Company drew down $70,000,000 as a precautionary measure~~annual dividend to ~~safeguard the Company’s liquidity and to increase available cash on hand~~$2.00 per common share, from $0.72 per common share, in ~~the event of a more protracted COVID-19 outbreak.~~June 2021. Partially offsetting this ~~shift~~decrease in cash provided by financing activities was ~~a prepayment of one of its long-term debt obligations in November 2019~~fewer principal payments in the ~~amount~~three months ended December 31, 2021, when compared to the three months ended December 31, 2020, resulting primarily from the Company, in May 2021, converting its Met Fixed-Rate Term Loans into interest bearing only loans with a balloon payment of ~~$4,455,000.~~the balance due at maturity, which is November 1, 2029.

The Company had ~~no amounts~~approximately $9,377,000 and $12,204,000 outstanding on its revolving lines of credit as of ~~March~~December 31, ~~2021.~~2021 and 2020, respectively.

The WCLC line of credit agreement provides for Rabo Agrifinance, Inc. to issue up to $2,000,000 in letters of credit on the Company’s behalf. As of ~~March~~December 31, 2021, there was approximately ~~$236,000~~$336,000 in outstanding letters of credit, which correspondingly slightly reduced Alico's availability under the WCLC line of credit.

There have been no material changes during this reporting period in the disclosures set forth in Part II, Item 7A in our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020,~~2021, as filed with the SEC on December ~~8, 2020.~~7, 2021.

Our Principal Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) as of the end of the period covered by this report. Based on this evaluation, our Principal Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

During the fiscal quarter ended ~~March~~December 31, 2021, there were no changes in our internal controls over financial reporting that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

There have been no material changes in the risk factors set forth in Part 1, Item 1A, “Risk Factors” in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020,~~2021, as filed with the SEC on December ~~8, 2020.~~7, 2021.

There were no sales of unregistered equity securities during the period covered by this Quarterly Report on Form 10-Q.

There were no issuer purchases of the Company’s equity securities during the period covered by this Quarterly Report on Form 10-Q.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Florida			59-0906081
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
10070 Daniels Interstate Court
10070 Daniels Interstate Court
Suite ~~100~~200	Fort Myers	FL	33913
(Address of principal executive offices)			(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ALCO	Nasdaq Global Select Market

Large Accelerated Filer	☐	Accelerated Filer	☐☑
Non-accelerated filer	☑☐	Smaller Reporting Company	☑
Emerging Growth Company	☐

Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements	1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	2421
Item 3. Quantitative and Qualitative Disclosures About Market Risk	3532
Item 4. Controls and Procedures	3532
Part II - OTHER INFORMATION	3633
Item 1. Legal Proceedings	3633
Item 1A. Risk Factors	3633
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3633
Item 3. Defaults Upon Senior Securities	3633
Item 4. Mine Safety Disclosure	3633
Item 5. Other Information	3633
Item 6. Exhibits	3734
Signatures	3835

Condensed Consolidated Balance Sheets as of ~~March~~December 31, 2021 (Unaudited) and September 30, ~~2020~~2021	1
Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020 (Unaudited)	2
Condensed Consolidated Statements of Changes in Equity for the three ~~and six~~ months ended ~~March~~December 31, 2021 and 2020 (Unaudited)	3
Condensed Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~March~~December 31, 2021 and 2020 (Unaudited)	54
Notes to Condensed Consolidated Financial Statements (Unaudited)	65

☑	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the Quarterly Period Ended ~~March~~December 31, 2021

	or

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


For the transition period
	from____________________	to_________________________


(239)	226-2000
(Registrant’s telephone number, including area code)

	~~March~~December 31, 2021
Weighted-average remaining lease term	~~1.11~~0.66 years
Weighted-average discount rate		~~3.20~~2.30	%

2020 Option Grant
Expected Volatility		26.0	%
Expected Term (in years)	3.61
Risk Free Rate		1.60	%

~~2019 Modified Option Grant~~
~~Expected Volatility~~		~~25.0~~	%
~~Expected Term (in years)~~	~~1.50~~
~~Risk Free Rate~~		~~2.52~~	%

~~2019 Option Grants~~
~~Expected Volatility~~		~~30.0~~	%
~~Expected Term (in years)~~	~~4.09~~
~~Risk Free Rate~~		~~2.95~~	%

Exhibit Number		Exhibit Index

3.1		Restated Certificate of Incorporation, dated February 17, 1972 (incorporated by reference to Exhibit 3.1 of Alico's filing on Form 10-K dated December 11, 2017)

3.2		Certificate of Amendment to Certificate of Incorporation, dated January 14, 1974 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.3		Amendment to Articles of Incorporation, dated January 14, 1987 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.4		Amendment to Articles of Incorporation, dated December 27, 1988 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.5		By-Laws of Alico, Inc., amended and restated (incorporated by reference to Exhibit 3.6 of Alico's filing on Form 8-K dated January 15, 2021)

10.1		Twelfth Amendment and Waiver to Credit Agreement by and among Alico, Inc., Alico-Agri, Ltd., Alico Plant World, L.L.C., Alico Fruit Company, LLC, Alico Land Development Inc., Alico Citrus Nursery, LLC and Rabo Agrifinance LLC (f/k/a Rabo Agrifinance, Inc.) dated November 17, 2021

10.2		Hunting Lease Agreement and Real Estate Purchase and Sale Option Agreement between Alico, Inc., and Mr. Kiernan, dated January 1, 2022

31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS	*	Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH	*	Inline XBRL Taxonomy Extension Schema Document

101.CAL	*	Inline XBRL Taxonomy Calculation Linkbase Document

101.DEF	*	Inline XBRL Taxonomy Definition Linkbase Document

101.LAB	*	Inline XBRL Taxonomy Label Linkbase Document

101.PRE	*	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended ~~March~~December 31, 2021,, has been formatted in Inline XBRL.
*		In accordance with Rule 406T of Regulation S-T, these XBRL (eXtensible Business Reporting Language) documents are furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

		ALICO, INC. (Registrant)

~~May 5, 2021~~February 3, 2022	By:	/s/ John E. Kiernan
		John E. Kiernan
		President and Chief Executive Officer
		(Principal Executive Officer)


~~May 5, 2021~~February 3, 2022	By:	/s/ Richard Rallo
		Richard Rallo
		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)