Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 000-50254 | |
Entity Registrant Name | LAKE AREA CORN PROCESSORS, LLC | |
Entity Incorporation, State or Country Code | SD | |
Entity Tax Identification Number | 46-0460790 | |
Entity Address, Address Line One | 46269 SD Highway 34 | |
Entity Address, Address Line Two | P.O. Box 100 | |
Entity Address, City or Town | Wentworth, | |
Entity Address, State or Province | SD | |
Entity Address, Postal Zip Code | 57075 | |
City Area Code | (605) | |
Local Phone Number | 483-2676 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,620,000 | |
Entity Central Index Key | 0001156174 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
CURRENT ASSETS | |||
Accounts receivable | $ 807,887 | $ 807,887 | $ 876,949 |
Accounts Receivable, Related Parties, Current | 8,165,209 | 8,165,209 | 1,032,541 |
Inventory | 9,643,964 | 9,643,964 | 16,410,437 |
Derivative financial instruments | 3,554,362 | 3,554,362 | 2,886,831 |
Prepaid expenses | 205,462 | 205,462 | 733,189 |
Total current assets | 32,141,968 | 32,141,968 | 59,935,257 |
PROPERTY AND EQUIPMENT | |||
Land | 874,473 | 874,473 | 874,473 |
Land improvements | 8,751,733 | 8,751,733 | 8,738,063 |
Buildings | 9,316,576 | 9,316,576 | 9,316,576 |
Equipment | 99,868,211 | 99,868,211 | 96,159,927 |
Construction in progress | 6,950,903 | 6,950,903 | 1,669,148 |
Gross Property and Equipment | 125,761,896 | 125,761,896 | 116,758,187 |
Less accumulated depreciation | (62,279,776) | (62,279,776) | (58,706,491) |
Net property and equipment | 63,482,120 | 63,482,120 | 58,051,696 |
OTHER ASSETS | |||
Goodwill | 10,395,766 | 10,395,766 | 10,395,766 |
Investments | 16,141,909 | 16,141,909 | 20,504,842 |
Other | 2,720,308 | 2,720,308 | 65,302 |
Total other assets | 29,257,983 | 29,257,983 | 30,965,910 |
TOTAL ASSETS | 124,882,071 | 124,882,071 | 148,952,863 |
CURRENT LIABILITIES | |||
Outstanding checks in excess of bank balance | 2,706,757 | 2,706,757 | 2,228,284 |
Accounts payable | 10,958,544 | 10,958,544 | 25,855,071 |
Accrued liabilities | 738,312 | 738,312 | 914,994 |
Derivative financial instruments | 620,123 | 620,123 | 1,490,510 |
Current maturities of notes payable | 1,000,000 | 1,000,000 | 1,000,000 |
Total current liabilities | 16,023,736 | 16,023,736 | 31,488,859 |
LONG-TERM LIABILITIES | |||
Notes payable | 2,997,792 | 2,997,792 | 3,995,139 |
Total long-term liabilities | 2,997,792 | 2,997,792 | 3,995,139 |
MEMBERS' EQUITY (29,620,000 units issued and outstanding) | 105,860,543 | 105,860,543 | 113,468,865 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | 124,882,071 | 124,882,071 | 148,952,863 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 9,765,084 | $ 9,765,084 | $ 37,995,310 |
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | shares | 29,620,000 | 29,620,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 74,210,499 | $ 63,794,494 | $ 214,098,692 | $ 176,648,273 |
COSTS OF REVENUES | 66,808,651 | 54,753,379 | 195,168,386 | 151,181,885 |
Gross Profit | 7,401,848 | 9,041,115 | 18,930,306 | 25,466,388 |
OPERATING EXPENSES | 1,268,468 | 1,249,243 | 3,668,362 | 3,776,472 |
INCOME (LOSS) FROM OPERATIONS | 6,133,380 | 7,791,872 | 15,261,944 | 21,689,916 |
OTHER INCOME (EXPENSE) | ||||
Interest and other income | 61,607 | 21,723 | 1,559,100 | 1,328,326 |
Equity in net income (loss) of investments | 315,273 | 1,135,138 | 2,542,068 | 3,072,697 |
Interest expense | (568) | (136,176) | (65,247) | (684,200) |
Total other income (expense) | 376,312 | 1,020,685 | 4,035,921 | 3,716,823 |
NET INCOME (LOSS) | $ 6,509,692 | $ 8,812,557 | $ 19,297,865 | $ 25,406,739 |
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax | $ 0.22 | $ 0.30 | $ 0.65 | $ 0.86 |
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | 29,620,000 | 29,620,000 | 29,620,000 | 29,620,000 |
DISTRIBUTIONS DECLARED PER UNIT (in dollars per unit) | $ 0.40 | $ 0.10 | $ 0.91 | $ 0.10 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity (Unaudited) | USD ($) |
Balance at the beginning of period at Dec. 31, 2020 | $ 65,268,579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 6,535,530 |
Balance at the end of period at Mar. 31, 2021 | 71,804,109 |
Balance at the beginning of period at Dec. 31, 2020 | 65,268,579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 25,406,739 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (2,962,000) |
Balance at the end of period at Sep. 30, 2021 | 87,713,318 |
Balance at the beginning of period at Mar. 31, 2021 | 71,804,109 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 10,058,652 |
Balance at the end of period at Jun. 30, 2021 | 81,862,761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 8,812,557 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (2,962,000) |
Balance at the end of period at Sep. 30, 2021 | 87,713,318 |
Balance at the beginning of period at Dec. 31, 2021 | 113,468,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 1,665,199 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (15,056,167) |
Balance at the end of period at Mar. 31, 2022 | 100,077,897 |
Balance at the beginning of period at Dec. 31, 2021 | 113,468,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 19,297,865 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (26,906,187) |
Balance at the end of period at Sep. 30, 2022 | 105,860,543 |
Balance at the beginning of period at Mar. 31, 2022 | 100,077,897 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 11,122,974 |
Balance at the end of period at Jun. 30, 2022 | 111,200,871 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 6,509,692 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (11,850,020) |
Balance at the end of period at Sep. 30, 2022 | $ 105,860,543 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 19,297,865 | $ 25,406,739 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Depreciation and amortization | 3,716,018 | 4,169,044 |
Distributions in excess of earnings from investments | 4,362,932 | (372,697) |
Gain (Loss) on Disposition of Property Plant Equipment | 49,842 | 0 |
(Increase) decrease in | ||
Accounts receivable | (7,063,606) | (2,630,718) |
Inventory | 6,766,473 | (2,836,912) |
Prepaid expenses | 527,727 | 445,707 |
Increase (Decrease) in Derivative Assets and Liabilities | (1,537,918) | (1,167,238) |
Accounts payable | (15,670,376) | (6,353,567) |
Accrued and other liabilities | (176,682) | 72,397 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 10,272,275 | 16,732,755 |
Payments for (Proceeds from) Other Investing Activities | (2,667,000) | 0 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (8,408,787) | (340,540) |
NET CASH (USED IN) INVESTING ACTIVITIES | (11,075,787) | (340,540) |
FINANCING ACTIVITIES | ||
Increase (decrease) in outstanding checks in excess of bank balance | 478,473 | 3,037,816 |
Borrowings on notes payable | 13,498,000 | 20,229,600 |
Principal payments on notes payable | (14,497,000) | (52,000,000) |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (26,906,187) | (2,962,000) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (27,426,714) | (31,694,584) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (28,230,226) | (15,302,369) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 9,765,084 | 3,335,442 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest, net of capitalized interest of $87,847 and $1,291 in 2022 and 2021, respectively. | 92,619 | 753,728 |
Capital expenditures in accounts payable | $ 773,849 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 87,847 | $ 1,291 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations [Abstract] | |
Nature of Operations | NATURE OF OPERATIONS Principal Business Activity Lake Area Corn Processors, LLC (the "Company") and its wholly owned subsidiary, Dakota Ethanol, LLC ("Dakota Ethanol") are both South Dakota limited liability companies. The Company owns and manages Dakota Ethanol, a 90 million-gallon (annual nameplate capacity) ethanol plant, located near Wentworth, South Dakota. Dakota Ethanol sells ethanol and related products to customers located in North America. In addition, the Company has investment interests in five companies in related industries. See Note 5 to the Consolidated Financial Statements of the Company for further details. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America although the Company believes that the disclosures are adequate to make the information not misleading. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying financial statements. All adjustments are of a normal and recurring nature. The results of operations for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for a full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s audited financial statements for the year ended December 31, 2021, contained in the Company's annual report on Form 10-K for 2021 filed with the SEC on March 3, 2022. Principles of Consolidation The consolidated financial statements of the Company include the accounts of its wholly owned subsidiary, Dakota Ethanol. All significant inter-company transactions and balances have been eliminated in consolidation. Revenue Recognition ASC Topic 606, Revenue from Contracts with Customers requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company generally recognizes revenue at one point in time, as more thoroughly described below. The Company's contracts with customers generally have one performance obligation and a contract duration of one year or less. The following is a description of principal activities from which we generate revenue: • sales of ethanol • sales of distillers grains • sales of distillers corn oil We recognize revenue when control of the promised goods or services under our contracts are transferred to our customers in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Generally, ethanol and related products are shipped free on board ("FOB") and the control of the goods is transferred to our customers either when the goods are loaded into trucks or rail cars are released to the railroad. Consideration is based on predetermined contractual prices or on current market prices. Disaggregation of revenue: All revenue recognized in the income statement is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line: Three Months Ended September 30 Nine Months Ended September 30, 2022 2021 2022 2021 Revenues ethanol $ 56,385,702 $ 49,995,030 $ 162,164,019 $ 136,992,923 Revenues distillers grains 12,922,675 9,731,338 37,962,783 29,806,883 Revenues distillers corn oil 4,902,122 4,068,126 13,971,890 9,848,467 $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Contract assets and contract liabilities: The Company receives payments from customers based on contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. The Company has no significant contract assets or contract liabilities from contracts with customers at September 30, 2022 and December 31, 2021. Shipping costs Shipping costs incurred by the Company in the sale of ethanol, dried distillers grains and corn oil are not specifically identifiable, and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Reporting Segment Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has six (6) operating segments that give rise to two (2) reportable segments. See "Note 3 - Segments" in our Notes to Consolidated Financial Statements. Costs of Revenues The primary raw materials we use to produce ethanol, distillers grains and corn oil are corn and natural gas. Electricity, raw materials expense (chemicals and denaturant), direct labor costs, and shipping costs on modified and wet distiller's grains are included in cost of revenues. Other Income Through the BioFuel Producer Program, the United States Department of Agriculture (the "USDA") is making up to $700,000,000.00 in direct payment available for biofuel producers who faces unexpected market losses due to the COVID-19 pandemic. On May 23, 2022, the Company received a payment from the USDA Biofuel Producer Program in the amount of approximately $1,200,000 that was recorded in interest and other income on the statement of operations during the nine months ended September 30, 2022. Inventory Valuation Inventories are generally valued using methods which approximate the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Receivables and Credit Policies Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within fifteen days from the invoice date. Unpaid accounts receivable with invoice dates over thirty days old bear interest at 1.5% per month. Accounts receivable are stated at the amount billed to the customer. Payments of accounts receivable are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by an allowance for doubtful accounts that reflects management’s best estimate of the amounts that will not be collected. Management regularly reviews trade receivable balances and, based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. The allowance was $0 as of September 30, 2022 and December 31, 2021. Investment in commodities contracts, derivative instruments and hedging activities The Company is exposed to certain risks related to its ongoing business operations including price risks on anticipated purchases of corn, natural gas, the sale of ethanol, distillers grains and distillers corn oil. The Company manages these risks by using forward or derivative instruments. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material the Company uses to produce ethanol and ethanol by-products. In general, unfavorable market conditions result from rising corn prices. This is especially true when market conditions do not allow us to pass along increased corn costs to our customers. The availability and price of corn are subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. Additionally, the recent crisis in Ukraine may effect the price of corn, and by extension, our business. Certain contracts that meet the definition of a derivative may be exempt from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. The Company does not apply the normal purchase and sales exemption for forward corn purchase contracts. As of September 30, 2022, the Company was committed to purchasing approximately 5.2 million bushels of corn on a forward contract basis with an average price of $6.33 per bushel. The total corn purchase contracts represent approximately 17% of the annual projected plant corn usage. The Company enters into firm-price purchase commitments with natural gas suppliers under which the Company agrees to buy natural gas at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price decrease in the market price of natural gas between the time the price is fixed and the time the natural gas is delivered. At September 30, 2022, the Company is committed to purchasing approximately 1,385,000 MMBtus of natural gas with an average price of $4.49 per MMBtu. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The natural gas purchase contracts represent approximately 68% of the annual plant requirements. The Company enters into firm-price sales commitments with distillers grains customers under which the Company agrees to sell distillers grains at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time the price is fixed and the time the distillers grains are delivered. At September 30, 2022, the Company was committed to selling approximately 69,000 dry equivalent tons of distillers grains with an average price of $234 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers grains sales represent approximately 32% of the projected annual plant production. The Company enters into firm-price sales commitments with distillers corn oil customers under which the Company agrees to sell distillers corn oil at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers corn oil between the time the price is fixed and the time the distillers corn oil is delivered. At September 30, 2022, the Company was committed to selling approximately 2.7 million pounds of distillers corn oil with an average price of $0.76 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers corn oil sales represent approximately 12% of the projected annual plant production. The Company did not have any firm-priced sales commitments for ethanol as of September 30, 2022. The Company enters into short-term forward, option and futures contracts for corn and natural gas as a means of managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives, and accordingly are recorded at fair value with changes in fair value recognized in net income. Although the contracts are considered economic hedges of specified risks, they are not designated and accounted for as hedging instruments. As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk of loss in the market value of inventories and purchase commitments. Derivatives not designated as hedging instruments at September 30, 2022 and December 31, 2021 were as follows: Balance Sheet Classification September 30, 2022 December 31, 2021* Forward contracts in gain position $ 2,103,381 $ 892,509 Futures contracts in gain position 126,400 140,863 Futures contracts in loss position (459,363) (1,238,560) Total forward, futures and options contracts 1,770,418 (205,188) Cash held by broker 1,783,944 3,092,019 Current Assets $ 3,554,362 $ 2,886,831 Forward contracts in loss position Current Liabilities $ (620,123) $ (1,490,510) *Derived from audited financial statements Futures contracts and cash held by broker are all with one party, and the right of offset exists. Therefore, on the balance sheet, these items are netted in one balance regardless of position. Forward contracts are with multiple parties, and the right of offset does not exist. Therefore, these contracts are reported at the gross amounts on the balance sheet. Gains and losses related to derivative contracts related to corn and natural gas are included as a component of costs of revenues. Statement of Operations Three Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (1,940,249) $ 2,017,814 Forward contracts Cost of Revenues 1,405,821 (1,774,753) Statement of Operations Nine Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (7,342,878) $ (9,208,060) Forward contracts Cost of Revenues 2,796,694 8,329,573 Investments The Company has investment interests in five (5) companies in related industries. All of these interests are at ownership shares less than 20%. These investments are flow-through entities and are being accounted for by the equity method of accounting under which the Company's share of net income of the underlying five (5) companies is recognized as income in the Company's statements of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Goodwill Annually, as well as when an event triggering impairment may have occurred, the Company performs an impairment test on goodwill, which compares the fair value of the reporting unit with its carrying amount. An impairment charge is recognized, if necessary, for the amount by which the carrying value exceeds the fair value up to the amount of the goodwill attributed to the reporting unit. The Company performs the annual analysis as of December 31 of each fiscal year. The Company determined that there was no impairment of goodwill at December 31, 2021 or through September 30, 2022 on the basis that no triggering events were noted. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the fair value of derivative financial instruments, lower of cost or net realizable value accounting for inventory, and goodwill impairment evaluation. Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended September 30, 2022, ethanol sales averaged approximately 76% of total revenues, while approximately 17% of revenues were generated from the sale of distillers grains and 7% of revenues were generated from the sale of corn oil. For the nine months ended September 30, 2022, ethanol sales averaged approximately 76% of total revenues, while approximately 18% of revenues were generated from the sale of distiller grains and 6% of revenues were generated from the sale of corn oil. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, unleaded gasoline and the petroleum markets, government programs, global political or economic issues, including but not limited to, the war in Ukraine including sanctions associated therewith, shortages, export prices, crude oil prices, currency valuations and government policies in the United States and around the world, over which we have no control. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government programs, global political or economic issues, including but not limited to the war in Ukraine including sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts. The Company's risk management program is used to protect against the price volatility of these commodities. |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill Annually, as well as when an event triggering impairment may have occurred, the Company performs an impairment test on goodwill, which compares the fair value of the reporting unit with its carrying amount. An impairment charge is recognized, if necessary, for the amount by which the carrying value exceeds the fair value up to the amount of the goodwill attributed to the reporting unit. The Company performs the annual analysis as of December 31 of each fiscal year. The Company determined that there was no impairment of goodwill at December 31, 2021 or through September 30, 2022 on the basis that no triggering events were noted. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | SEGMENT REPORTING The Company reports its financial and operating performance in two segments: (1) production, which includes the manufacturing and marketing of fuel-grade ethanol and co-products of the ethanol production process and (2) ethanol producing equity method investments, which consists of the aggregation of the Company's two equity method operating segments of investment in Guardian Hankinson, LLC and investment in Ring-neck Energy & Feed, LLC. The Company discloses its other identified operating segments in an all other category ("All Other"), which consists of the Company's investments in RPMG, LLC, Lawrenceville Tank, LLC, and Guardian Energy Management, LLC. The Company’s two reportable segments have been identified based on their unique characteristics. Our production segment is the Company’s ethanol plant that is operated in a manner chosen by our chief decision making team. The ethanol producing equity method segment consists of aggregated operating segments investments that have exceeded the quantitative thresholds for reportable segments which have similar economic characteristics but our chief decision making team does not have input into the daily operations of those entities. The All Other is comprised of investments that fall below the quantitative thresholds for reporting segments and the Company's chief decision making team has no input into their daily operations. Production includes the core operating drivers of the Company’s consolidated financial statements which consist of the production and sale of ethanol and its co-products. Ethanol producing equity method investments derive their revenues from the production and sale of ethanol and its co-products. The All Other receives its revenues from marketing fees, management fees, and storage fees. The reconciliation item is necessary due to reportable segments not being consolidated in the financial statements, but rather are reflected as equity method investments. The segments were identified using standards under ASC 280-10-50. They each engage in business activities, the operating results are reviewed by the Company’s chief operating decision maker, and discrete financial information is available for each segment. The following tables set forth certain financial data for the Company's operating segments: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 unaudited unaudited unaudited unaudited Net Sales Production $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Ethanol Producing Equity Method Investments 180,869,554 146,800,703 545,640,321 439,148,984 All Other 4,553,075 4,140,757 13,334,531 12,356,312 Total 259,633,128 214,735,954 773,073,544 628,153,569 Reconciliation (185,422,629) (150,941,460) (558,974,852) (451,505,296) Consolidated $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Gross Profit: Production $ 7,401,848 $ 9,041,115 $ 18,930,306 $ 25,466,388 Ethanol Producing Equity Method Investments 7,747,126 15,674,893 31,919,797 42,997,910 All Other 2,982,259 2,537,782 8,922,437 7,790,640 Total 18,131,233 27,253,790 59,772,540 76,254,938 Reconciliation (10,729,385) (18,212,675) (40,842,234) (50,788,550) Consolidated $ 7,401,848 $ 9,041,115 $ 18,930,306 $ 25,466,388 Net Income: Production $ 6,509,692 $ 8,812,557 $ 19,297,865 $ 25,406,739 Ethanol Producing Equity Method Investments 1,863,817 10,584,904 21,973,160 27,888,935 All Other 1,384,948 747,045 3,625,905 3,407,283 Total 9,758,457 20,144,506 44,896,930 56,702,957 Reconciliation (3,248,765) (11,331,949) (25,599,065) (31,296,218) Consolidated $ 6,509,692 $ 8,812,557 $ 19,297,865 $ 25,406,739 September 30, 2022 December 31, 2021 unaudited audited Total Assets Production $ 124,882,071 $ 148,952,863 Ethanol Producing Equity Method Investments 227,125,159 261,642,408 All Other 319,515,750 283,835,871 Total 671,522,980 694,431,142 Reconciliation (546,640,909) (545,478,279) Consolidated $ 124,882,071 $ 148,952,863 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021* Raw materials $ 4,247,941 $ 7,278,381 Finished goods 2,067,174 6,195,222 Work in process 1,767,207 1,779,170 Parts inventory 1,561,642 1,157,664 $ 9,643,964 $ 16,410,437 *Derived from audited financial statements. As of September 30, 2022 and December 31, 2021, the Company evaluated inventory for a lower of cost or net realizable value write-down on inventory. The Company determined no write-down was necessary. |
Investments, Equity Method and
Investments, Equity Method and Joint Ventures | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | INVESTMENTS Dakota Ethanol has a 5% investment interest in the Company’s ethanol marketer, Renewable Products Marketing Group, LLC ("RPMG"). The net income, which is reported in the Company’s income statement for RPMG, is based on RPMG’s June 30, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $1,747,000 and $1,709,000 as of September 30, 2022 and December 31, 2021, respectively. Dakota Ethanol has a 10% investment interest in Lawrenceville Tanks, LLC ("LT"), a partnership which operates an ethanol storage terminal in Georgia. The net income, which is reported in the Company’s income statement for LT, is based on LT’s September 30, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $250,000 and $215,000 as of September 30, 2022 and December 31, 2021, respectively. Lake Area Corn Processors has a 10% investment interest in Guardian Hankinson, LLC ("GH"), a partnership which operates an ethanol plant in North Dakota. The net income, which is reported in the Company’s income statement for GH, is based on GH’s September 30, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $1,286,000 and $5,714,000 as of September 30, 2022 and December 31, 2021, respectively. Lake Area Corn Processors has a 17% investment interest in Guardian Energy Management, LLC ("GEM"), a partnership to provide management services to ethanol plants. The net income, which is reported in the Company’s income statement for GEM, is based on GEM’s September 30, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $90,000 as of September 30, 2022 and December 31, 2021, respectively. Lake Area Corn Processors has an 11% investment interest in Ring-neck Energy and Feeds, LLC ("REF"), a partnership which operates an ethanol plant in South Dakota. The net income, which is reported in the Company’s income statement for REF, is based on REF’s September 30, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $12,770,000 and $12,778,000 as of September 30, 2022 and December 31, 2021, respectively. The carrying amount of the investment exceeds the underlying equity in net assets by approximately $957,000. The excess is comprised of a basis adjustment of approximately $393,000 and capitalized interest of $564,000. The excess is amortized over 20 years from May 2019, the time the plant became operational. Condensed, combined unaudited financial information of the Company’s investments in RPMG, LT, GH, GEM and REF are as follows: Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 384,975,099 $ 370,470,221 Other Assets 161,665,810 179,230,853 Current Liabilities 326,459,139 308,504,144 Long-term Liabilities 65,890,393 44,248,272 Members' Equity 154,291,377 196,948,658 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 185,422,629 $ 150,941,460 Gross Profit 10,729,385 18,212,675 Net Income 3,248,765 11,331,949 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 558,974,852 $ 451,505,296 Gross Profit 40,842,234 50,788,550 Net Income (Loss) 25,599,065 31,296,218 The following table shows the condensed financial information of GH; the investment which represents greater than 10% of the Company's income as of September 30, 2022. Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 39,446,104 $ 43,793,006 Other Assets 42,469,659 54,451,233 Current Liabilities 31,068,150 34,990,527 Long-term Liabilities 37,987,741 6,115,092 Members' Equity 12,859,872 57,138,620 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 120,022,746 $ 102,483,876 Gross Profit 708,454 9,516,911 Net Income (Loss) (761,923) 8,458,155 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 358,507,931 $ 297,952,764 Gross Profit 13,596,079 20,060,049 Net Income 16,721,254 18,143,266 The following table shows the condensed financial information of REF; the investment which represents greater than 10% of the Company's assets as of September 30, 2022. Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 27,628,293 $ 44,893,050 Other Assets 117,581,103 122,727,914 Current Liabilities 17,620,815 23,595,688 Long-term Liabilities 27,902,652 38,133,180 Members' Equity 99,685,929 105,892,096 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 60,846,808 $ 44,316,827 Gross Profit 7,038,672 6,157,982 Net Income 2,625,740 2,126,749 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 187,132,390 $ 141,196,220 Gross Profit 18,323,718 22,937,861 Net Income 5,251,906 9,745,669 |
Revolving Operating Note
Revolving Operating Note | 9 Months Ended |
Sep. 30, 2022 | |
Short Term Note Payable [Abstract] | |
Revolving Operating Note | REVOLVING PROMISSORY NOTEOn February 6, 2018, Dakota Ethanol executed a revolving promissory note with Farm Credit Services of America ("FCSA") in the amount up to $10,000,000 or the amount available in accordance with the borrowing base calculation, whichever is less. Dakota Ethanol amended the note agreement with FCSA in June of 2020 and October of 2021. Under the amendments, the available credit under the revolving operating note was reduced to $2,000,000. There is a non-use fee of 0.25% per annum on the unused portion of the $2,000,000 availability. The note is collateralized by substantially all of the assets of the Company. The note expires on November 1, 2023. Interest on the outstanding principal balance will accrue at 305 basis points above the Secured Overnight Financing 30-day Average Rate ("SOFR 30"). The interest rate is not subject to a floor. The rate was 5.35% at September 30, 2022. On September 30, 2022, Dakota Ethanol had no balance outstanding and approximately $2,000,000 available to be drawn on the revolving promissory note. |
Long-Term Notes Payable
Long-Term Notes Payable | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Notes Payable | LONG-TERM NOTES PAYABLE On August 1, 2017, Dakota Ethanol executed a term note from FCSA in the amount of $8,000,000. Dakota Ethanol agreed to make monthly interest payments starting September 1, 2017 and annual principal payments of $1,000,000 starting on August 1, 2018. The annual principal payment on August 1, 2020 was deferred after the note was amended with FCSA and is now due on August 1, 2025. The note matures on August 1, 2025. Interest on the outstanding principal balance will accrue at 330 basis points above the SOFR 30. The interest rate is not subject to a floor. The rate was 5.60% at September 30, 2022. On September 30, 2022, Dakota Ethanol had $4,000,000 outstanding on the note. On February 6, 2018, Dakota Ethanol executed a reducing revolving promissory note from FCSA in the amount up to $40,000,000 or the amount available in accordance with the borrowing availability under the credit agreement. Dakota Ethanol amended the note agreement with FCSA in June of 2020. The amendment increased the available credit on the reducing revolving note to $48,000,000. The amount Dakota Ethanol can borrow on the note decreases by $1,750,000 semi-annually starting on July 1, 2021 until the maximum balance reaches $32,250,000 on July 1, 2025. The note matures on January 1, 2026. Interest on the outstanding principal balance will accrue at 330 basis points above the SOFR 30. The interest rate is not subject to a floor. The rate was 5.60% at September 30, 2022. The note contains a non-use fee of 0.50% per annum on the unused portion of the note. The loan was amended with FCSA on October 11, 2021 and the amendment was filed with the Securities Exchange Commission as Exhibit 10.1 to the Company's Form 10-Q on November 12, 2021. Under the amendment, the interest accrual will be measured using the SOFR 30. On September 30, 2022, Dakota Ethanol had $1,000 outstanding and $42,749,000 available to be drawn on the note. As part of the notes payable agreement, Dakota Ethanol is subject to certain restrictive covenants establishing financial reporting requirements, distribution and capital expenditure limits, minimum debt service coverage ratios, net worth and working capital requirements. The note is collateralized by substantially all assets of the Company. The note payable agreement was amended in October 2021 with modifications to the requirements. The working capital covenant was increased to $13,500,000 and the net worth covenant was increased to $28,000,000. The balances of the notes payable are as follows. The balances reflect the updated agreement: September 30, 2022 December 31, 2021 Notes Payable - FCSA $ 4,001,000 $ 5,000,000 Less unamortized debt issuance costs (3,208) (4,861) 3,997,792 4,995,139 Less current portion (1,000,000) (1,000,000) $ 2,997,792 $ 3,995,139 *Derived from audited financial statements Principal maturities for the remainder of the Note are estimated as follows. Periods Ending September 30, Principal 2023 $ 1,000,000 2024 1,000,000 2025 2,001,000 $ 4,001,000 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company complies with the fair value measurements and disclosures standard, which defines fair value, establishes a framework for measuring fair value, and expands disclosure for those assets and liabilities carried on the balance sheet on a fair value basis. The Company’s balance sheet contains derivative financial instruments that are recorded at fair value on a recurring basis. Fair value measurements and disclosures require that assets and liabilities carried at fair value be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value. Level 1 uses quoted market prices in active markets for identical assets or liabilities. Level 2 uses observable market based inputs or unobservable inputs that are corroborated by market data. Level 3 uses unobservable inputs that are not corroborated by market data. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Derivative financial instruments . Commodity futures contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade ("CBOT") and New York Mercantile Exchange ("NYMEX") markets. Over-the-counter commodity options contracts are reported at fair value utilizing Level 2 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the over-the-counter markets. Forward purchase contracts are reported at fair value utilizing Level 2 inputs. For these contracts, the Company obtains fair value measurements from local grain terminal bid values. The fair value measurements consider observable data that may include live trading bids from local elevators and processing plants which are based off the CBOT markets. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 September 30, 2022 Assets: Derivative financial instruments, futures and options contracts $ 126,400 $ 126,400 $ — $ — Forward contracts $ 2,103,381 $ — $ 2,103,381 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 459,363 $ 459,363 $ — $ — Forward contracts $ 620,123 $ — $ 620,123 $ — December 31, 2021* Assets: Derivative financial instruments, futures and options contracts $ 140,863 $ 140,863 $ — $ — Forward contracts $ 892,509 $ — $ 892,509 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 1,238,560 $ 1,238,560 $ — $ — Forward contracts $ 1,490,510 $ — $ 1,490,510 $ — *Derived from audited financial statements. During the nine months ended September 30, 2022, the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of September 30, 2022 and December 31, 2021, the Company did not have any Level 3 assets or liabilities. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis were not significant at September 30, 2022 and December 31, 2021. Disclosure requirements for fair value of financial instruments require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The Company believes the carrying amount of cash and cash equivalents (level 1), accounts receivable (level 2), accounts payable and accruals (level 2) and short-term debt (level 3) approximates fair value. The carrying amount of long-term obligations (level 3) at September 30, 2022 of $4,001,000 had an estimated fair value of approximately $4,001,000 based on estimated interest rates for comparable debt. The carrying amount of long-term obligations at December 31, 2021 of $4,000,000 had an estimated fair value of approximately $4,000,000. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Dakota Ethanol has a 5% interest in RPMG, and Dakota Ethanol has entered into marketing agreements for the exclusive rights to market, sell and distribute the entire ethanol, dried distiller's grains and corn oil inventories produced by Dakota Ethanol. The marketing fees are included in net revenues. The Company also purchases denaturant from RPMG. Revenues and marketing fees related to the agreements as well as denaturant purchases are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues ethanol $ 56,461,839 $ 50,058,768 $ 162,392,421 $ 137,184,137 Revenues distillers dried grains 4,969,228 3,422,681 12,353,408 9,758,249 Revenues corn oil 4,917,518 4,082,593 14,015,718 9,889,836 Marketing fees ethanol 76,137 63,738 228,402 191,214 Marketing fees distillers dried grains 22,103 15,848 54,784 47,558 Marketing fees corn oil 15,396 14,468 43,829 41,369 Denaturant purchases 552,843 914,355 1,871,487 2,547,836 September 30, 2022 December 31, 2021* Amounts due to RPMG $ 71,646 $ 79,909 *Derived from audited financial statements. The Company purchased corn and services from members of its Board of Managers that farm and operate local businesses. Corn purchases from these related parties during the nine months ended September 30, 2022 and 2021 totaled approximately $1,657,000 and $1,506,000, respectively. Corn purchases from these related parties during the three months ended September 30, 2022 and 2021 totaled approximately $1,093,000 and $1,037,000, respectively. As of September 30, 2022 and December 31, 2021, the Company had no outstanding obligations to these related parties. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Capital Expenditures Dakota Ethanol has committed to a contract for the design and construction of a new 2 million gallon ethanol storage tank. The value of the construction is approximately $2.2 million, of which approximately $0 is outstanding as of September 30, 2022. The 2 million gallon ethanol storage tank is expected to be placed into service in the fourth quarter. The Company has also committed to a contract for the design and construction of an additional grain storage bin. The value of the contracted construction is approximately $5.8 million, of which approximately $1.6 million is outstanding as of September 30, 2022. The additional grain storage bin project is expected to be completed during the fourth quarter of 2022. Agreements On June 24, 2022, Dakota Ethanol, LLC, entered into the Precedent Agreement West Leg 2023 Expansion between Northern Natural Gas Company and the Dakota Ethanol (the "West Leg Agreement"). Pursuant to the West Leg Agreement, Dakota Ethanol will receive additional firm commitment natural gas transportation services. In order to secure these firm commitment natural gas transportation services, Dakota Ethanol agrees to pay Northern Natural Gas Company a contribution to the cost of constructing certain additional natural gas pipeline and storage facilities. Dakota Ethanol's contribution is estimated to be $8,890,000, of which $6,223,000 is outstanding as of September 30, 2022. Additional payments of 30% and 40% of the total contribution are scheduled to be made on December 31, 2022 and March 31, 2023, respectively. For a period of five years beginning on November 1, 2023, Dakota Ethanol is entitled to a firm natural gas commitment of 7,000 decatherms per day during the winter months (between November 1 and March 31 each year), and firm commitment of 4,340 decatherms per day during the summer months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill Annually, as well as when an event triggering impairment may have occurred, the Company performs an impairment test on goodwill, which compares the fair value of the reporting unit with its carrying amount. An impairment charge is recognized, if necessary, for the amount by which the carrying value exceeds the fair value up to the amount of the goodwill attributed to the reporting unit. The Company performs the annual analysis as of December 31 of each fiscal year. The Company determined that there was no impairment of goodwill at December 31, 2021 or through September 30, 2022 on the basis that no triggering events were noted. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of its wholly owned subsidiary, Dakota Ethanol. All significant inter-company transactions and balances have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition ASC Topic 606, Revenue from Contracts with Customers requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company generally recognizes revenue at one point in time, as more thoroughly described below. The Company's contracts with customers generally have one performance obligation and a contract duration of one year or less. The following is a description of principal activities from which we generate revenue: • sales of ethanol • sales of distillers grains • sales of distillers corn oil We recognize revenue when control of the promised goods or services under our contracts are transferred to our customers in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Generally, ethanol and related products are shipped free on board ("FOB") and the control of the goods is transferred to our customers either when the goods are loaded into trucks or rail cars are released to the railroad. Consideration is based on predetermined contractual prices or on current market prices. Disaggregation of revenue: All revenue recognized in the income statement is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line: Three Months Ended September 30 Nine Months Ended September 30, 2022 2021 2022 2021 Revenues ethanol $ 56,385,702 $ 49,995,030 $ 162,164,019 $ 136,992,923 Revenues distillers grains 12,922,675 9,731,338 37,962,783 29,806,883 Revenues distillers corn oil 4,902,122 4,068,126 13,971,890 9,848,467 $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Contract assets and contract liabilities: The Company receives payments from customers based on contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. The Company has no significant contract assets or contract liabilities from contracts with customers at September 30, 2022 and December 31, 2021. Shipping costs Shipping costs incurred by the Company in the sale of ethanol, dried distillers grains and corn oil are not specifically identifiable, and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. |
Operating Segment | Reporting SegmentOperating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has six (6) operating segments that give rise to two (2) reportable segments. See "Note 3 - Segments" in our Notes to Consolidated Financial Statements. |
Cost of Revenues | Costs of Revenues The primary raw materials we use to produce ethanol, distillers grains and corn oil are corn and natural gas. |
Inventory Valuation | Inventory Valuation Inventories are generally valued using methods which approximate the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. |
Receivables and Credit Policies | Receivables and Credit Policies Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within fifteen days from the invoice date. Unpaid accounts receivable with invoice dates over thirty days old bear interest at 1.5% per month. Accounts receivable are stated at the amount billed to the customer. Payments of accounts receivable are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. |
Investment in commodities contracts, derivative instruments and hedging activities | Investment in commodities contracts, derivative instruments and hedging activities The Company is exposed to certain risks related to its ongoing business operations including price risks on anticipated purchases of corn, natural gas, the sale of ethanol, distillers grains and distillers corn oil. The Company manages these risks by using forward or derivative instruments. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material the Company uses to produce ethanol and ethanol by-products. In general, unfavorable market conditions result from rising corn prices. This is especially true when market conditions do not allow us to pass along increased corn costs to our customers. The availability and price of corn are subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. Additionally, the recent crisis in Ukraine may effect the price of corn, and by extension, our business. Certain contracts that meet the definition of a derivative may be exempt from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. The Company does not apply the normal purchase and sales exemption for forward corn purchase contracts. As of September 30, 2022, the Company was committed to purchasing approximately 5.2 million bushels of corn on a forward contract basis with an average price of $6.33 per bushel. The total corn purchase contracts represent approximately 17% of the annual projected plant corn usage. The Company enters into firm-price purchase commitments with natural gas suppliers under which the Company agrees to buy natural gas at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price decrease in the market price of natural gas between the time the price is fixed and the time the natural gas is delivered. At September 30, 2022, the Company is committed to purchasing approximately 1,385,000 MMBtus of natural gas with an average price of $4.49 per MMBtu. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The natural gas purchase contracts represent approximately 68% of the annual plant requirements. The Company enters into firm-price sales commitments with distillers grains customers under which the Company agrees to sell distillers grains at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time the price is fixed and the time the distillers grains are delivered. At September 30, 2022, the Company was committed to selling approximately 69,000 dry equivalent tons of distillers grains with an average price of $234 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers grains sales represent approximately 32% of the projected annual plant production. The Company enters into firm-price sales commitments with distillers corn oil customers under which the Company agrees to sell distillers corn oil at a price set in advance of the actual delivery. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers corn oil between the time the price is fixed and the time the distillers corn oil is delivered. At September 30, 2022, the Company was committed to selling approximately 2.7 million pounds of distillers corn oil with an average price of $0.76 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers corn oil sales represent approximately 12% of the projected annual plant production. The Company did not have any firm-priced sales commitments for ethanol as of September 30, 2022. The Company enters into short-term forward, option and futures contracts for corn and natural gas as a means of managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives, and accordingly are recorded at fair value with changes in fair value recognized in net income. Although the contracts are considered economic hedges of specified risks, they are not designated and accounted for as hedging instruments. As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk of loss in the market value of inventories and purchase commitments. Derivatives not designated as hedging instruments at September 30, 2022 and December 31, 2021 were as follows: Balance Sheet Classification September 30, 2022 December 31, 2021* Forward contracts in gain position $ 2,103,381 $ 892,509 Futures contracts in gain position 126,400 140,863 Futures contracts in loss position (459,363) (1,238,560) Total forward, futures and options contracts 1,770,418 (205,188) Cash held by broker 1,783,944 3,092,019 Current Assets $ 3,554,362 $ 2,886,831 Forward contracts in loss position Current Liabilities $ (620,123) $ (1,490,510) *Derived from audited financial statements Futures contracts and cash held by broker are all with one party, and the right of offset exists. Therefore, on the balance sheet, these items are netted in one balance regardless of position. Forward contracts are with multiple parties, and the right of offset does not exist. Therefore, these contracts are reported at the gross amounts on the balance sheet. Gains and losses related to derivative contracts related to corn and natural gas are included as a component of costs of revenues. Statement of Operations Three Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (1,940,249) $ 2,017,814 Forward contracts Cost of Revenues 1,405,821 (1,774,753) Statement of Operations Nine Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (7,342,878) $ (9,208,060) Forward contracts Cost of Revenues 2,796,694 8,329,573 |
Investments | Investments The Company has investment interests in five (5) companies in related industries. All of these interests are at ownership shares less than 20%. These investments are flow-through entities and are being accounted for by the equity method of accounting under which the Company's share of net income of the underlying five (5) companies is recognized as income in the Company's statements of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. |
Use of Estimates | Use of EstimatesThe preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the fair value of derivative financial instruments, lower of cost or net realizable value accounting for inventory, and goodwill impairment evaluation |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended September 30, 2022, ethanol sales averaged approximately 76% of total revenues, while approximately 17% of revenues were generated from the sale of distillers grains and 7% of revenues were generated from the sale of corn oil. For the nine months ended September 30, 2022, ethanol sales averaged approximately 76% of total revenues, while approximately 18% of revenues were generated from the sale of distiller grains and 6% of revenues were generated from the sale of corn oil. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, unleaded gasoline and the petroleum markets, government programs, global political or economic issues, including but not limited to, the war in Ukraine including sanctions associated therewith, shortages, export prices, crude oil prices, currency valuations and government policies in the United States and around the world, over which we have no control. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government programs, global political or economic issues, including but not limited to the war in Ukraine including sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts. The Company's risk management program is used to protect against the price volatility of these commodities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Disaggregation of Revenue | All revenue recognized in the income statement is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line: Three Months Ended September 30 Nine Months Ended September 30, 2022 2021 2022 2021 Revenues ethanol $ 56,385,702 $ 49,995,030 $ 162,164,019 $ 136,992,923 Revenues distillers grains 12,922,675 9,731,338 37,962,783 29,806,883 Revenues distillers corn oil 4,902,122 4,068,126 13,971,890 9,848,467 $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 |
Derivatives Not Designated as Hedging Instruments | Derivatives not designated as hedging instruments at September 30, 2022 and December 31, 2021 were as follows: Balance Sheet Classification September 30, 2022 December 31, 2021* Forward contracts in gain position $ 2,103,381 $ 892,509 Futures contracts in gain position 126,400 140,863 Futures contracts in loss position (459,363) (1,238,560) Total forward, futures and options contracts 1,770,418 (205,188) Cash held by broker 1,783,944 3,092,019 Current Assets $ 3,554,362 $ 2,886,831 Forward contracts in loss position Current Liabilities $ (620,123) $ (1,490,510) *Derived from audited financial statements |
Net realized and unrealized gains (losses) related to purchase contracts | Statement of Operations Three Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (1,940,249) $ 2,017,814 Forward contracts Cost of Revenues 1,405,821 (1,774,753) Statement of Operations Nine Months Ended September 30, Classification 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ (7,342,878) $ (9,208,060) Forward contracts Cost of Revenues 2,796,694 8,329,573 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial data for the Company's operating segments: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 unaudited unaudited unaudited unaudited Net Sales Production $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Ethanol Producing Equity Method Investments 180,869,554 146,800,703 545,640,321 439,148,984 All Other 4,553,075 4,140,757 13,334,531 12,356,312 Total 259,633,128 214,735,954 773,073,544 628,153,569 Reconciliation (185,422,629) (150,941,460) (558,974,852) (451,505,296) Consolidated $ 74,210,499 $ 63,794,494 $ 214,098,692 $ 176,648,273 Gross Profit: Production $ 7,401,848 $ 9,041,115 $ 18,930,306 $ 25,466,388 Ethanol Producing Equity Method Investments 7,747,126 15,674,893 31,919,797 42,997,910 All Other 2,982,259 2,537,782 8,922,437 7,790,640 Total 18,131,233 27,253,790 59,772,540 76,254,938 Reconciliation (10,729,385) (18,212,675) (40,842,234) (50,788,550) Consolidated $ 7,401,848 $ 9,041,115 $ 18,930,306 $ 25,466,388 Net Income: Production $ 6,509,692 $ 8,812,557 $ 19,297,865 $ 25,406,739 Ethanol Producing Equity Method Investments 1,863,817 10,584,904 21,973,160 27,888,935 All Other 1,384,948 747,045 3,625,905 3,407,283 Total 9,758,457 20,144,506 44,896,930 56,702,957 Reconciliation (3,248,765) (11,331,949) (25,599,065) (31,296,218) Consolidated $ 6,509,692 $ 8,812,557 $ 19,297,865 $ 25,406,739 September 30, 2022 December 31, 2021 unaudited audited Total Assets Production $ 124,882,071 $ 148,952,863 Ethanol Producing Equity Method Investments 227,125,159 261,642,408 All Other 319,515,750 283,835,871 Total 671,522,980 694,431,142 Reconciliation (546,640,909) (545,478,279) Consolidated $ 124,882,071 $ 148,952,863 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021* Raw materials $ 4,247,941 $ 7,278,381 Finished goods 2,067,174 6,195,222 Work in process 1,767,207 1,779,170 Parts inventory 1,561,642 1,157,664 $ 9,643,964 $ 16,410,437 *Derived from audited financial statements. As of September 30, 2022 and December 31, 2021, the Company evaluated inventory for a lower of cost or net realizable value write-down on inventory. The Company determined no write-down was necessary. |
Investments, Equity Method an_2
Investments, Equity Method and Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Condensed, combined unaudited financial information of the Company’s investments in RPMG, LT, GH, GEM and REF are as follows: Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 384,975,099 $ 370,470,221 Other Assets 161,665,810 179,230,853 Current Liabilities 326,459,139 308,504,144 Long-term Liabilities 65,890,393 44,248,272 Members' Equity 154,291,377 196,948,658 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 185,422,629 $ 150,941,460 Gross Profit 10,729,385 18,212,675 Net Income 3,248,765 11,331,949 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 558,974,852 $ 451,505,296 Gross Profit 40,842,234 50,788,550 Net Income (Loss) 25,599,065 31,296,218 The following table shows the condensed financial information of GH; the investment which represents greater than 10% of the Company's income as of September 30, 2022. Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 39,446,104 $ 43,793,006 Other Assets 42,469,659 54,451,233 Current Liabilities 31,068,150 34,990,527 Long-term Liabilities 37,987,741 6,115,092 Members' Equity 12,859,872 57,138,620 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 120,022,746 $ 102,483,876 Gross Profit 708,454 9,516,911 Net Income (Loss) (761,923) 8,458,155 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 358,507,931 $ 297,952,764 Gross Profit 13,596,079 20,060,049 Net Income 16,721,254 18,143,266 Balance Sheet September 30, 2022 December 31, 2021 Current Assets $ 27,628,293 $ 44,893,050 Other Assets 117,581,103 122,727,914 Current Liabilities 17,620,815 23,595,688 Long-term Liabilities 27,902,652 38,133,180 Members' Equity 99,685,929 105,892,096 Three Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 60,846,808 $ 44,316,827 Gross Profit 7,038,672 6,157,982 Net Income 2,625,740 2,126,749 Nine Months Ended Income Statement September 30, 2022 September 30, 2021 Revenue $ 187,132,390 $ 141,196,220 Gross Profit 18,323,718 22,937,861 Net Income 5,251,906 9,745,669 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The balances of the notes payable are as follows. The balances reflect the updated agreement: September 30, 2022 December 31, 2021 Notes Payable - FCSA $ 4,001,000 $ 5,000,000 Less unamortized debt issuance costs (3,208) (4,861) 3,997,792 4,995,139 Less current portion (1,000,000) (1,000,000) $ 2,997,792 $ 3,995,139 *Derived from audited financial statements |
Schedule of Principal repayment and amortization of debt issuance cost | Principal maturities for the remainder of the Note are estimated as follows. Periods Ending September 30, Principal 2023 $ 1,000,000 2024 1,000,000 2025 2,001,000 $ 4,001,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 September 30, 2022 Assets: Derivative financial instruments, futures and options contracts $ 126,400 $ 126,400 $ — $ — Forward contracts $ 2,103,381 $ — $ 2,103,381 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 459,363 $ 459,363 $ — $ — Forward contracts $ 620,123 $ — $ 620,123 $ — December 31, 2021* Assets: Derivative financial instruments, futures and options contracts $ 140,863 $ 140,863 $ — $ — Forward contracts $ 892,509 $ — $ 892,509 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 1,238,560 $ 1,238,560 $ — $ — Forward contracts $ 1,490,510 $ — $ 1,490,510 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Revenues and marketing fees related to the agreements as well as denaturant purchases are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues ethanol $ 56,461,839 $ 50,058,768 $ 162,392,421 $ 137,184,137 Revenues distillers dried grains 4,969,228 3,422,681 12,353,408 9,758,249 Revenues corn oil 4,917,518 4,082,593 14,015,718 9,889,836 Marketing fees ethanol 76,137 63,738 228,402 191,214 Marketing fees distillers dried grains 22,103 15,848 54,784 47,558 Marketing fees corn oil 15,396 14,468 43,829 41,369 Denaturant purchases 552,843 914,355 1,871,487 2,547,836 September 30, 2022 December 31, 2021* Amounts due to RPMG $ 71,646 $ 79,909 |
Nature of Operations (Details)
Nature of Operations (Details) gal in Millions | 9 Months Ended |
Sep. 30, 2022 gal | |
Product Information [Line Items] | |
Equity Method Investments, Number of Entities | 5 |
Product [Member] | Ethanol [Member] | |
Product Information [Line Items] | |
Annual production capacity | 90 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue from customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 74,210,499 | $ 63,794,494 | $ 214,098,692 | $ 176,648,273 |
Revenue Not from Contract with Customer | 0 | |||
Ethanol [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 56,385,702 | 49,995,030 | 162,164,019 | 136,992,923 |
Distillers Grain [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,922,675 | 9,731,338 | 37,962,783 | 29,806,883 |
Corn Oil [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 4,902,122 | $ 4,068,126 | $ 13,971,890 | $ 9,848,467 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Receivables and Credit Policies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Payment term | 15 days | |
Payment term before interest is applied | 30 days | |
Trade Receivable, Unpaid Balance, Interest Rate | 1.50% | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Derivative Instruments - Balance Sheet (Details) bu in Millions | Sep. 30, 2022 USD ($) bu T MMBTU | Dec. 31, 2021 USD ($) |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 3,554,362 | $ 2,886,831 |
Derivative Instruments and Hedges, Liabilities | 620,123 | 1,490,510 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 1,770,418 | (205,188) |
Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash held by broker | 1,783,944 | 3,092,019 |
Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | 3,554,362 | 2,886,831 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 620,123 | 1,490,510 |
Corn [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | bu | 5.2 | |
Purchase Commitment, Per unit | $ 6.33 | |
Percent of required need, coverage | 17% | |
Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | MMBTU | 1,385,000 | |
Purchase Commitment, Per unit | $ 4.49 | |
Percent of required need, coverage | 68% | |
Distillers Grain [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase Commitment, Per unit | $ 234 | |
Percent of required need, coverage | 32% | |
Corn Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase Commitment, Per unit | $ 0.76 | |
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | $ 2,103,381 | 892,509 |
Distillers Grain [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | T | 69,000 | |
Distillers Corn Oil [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | bu | 2.7 | |
Percent of required need, coverage | 12% | |
Futures contracts in gain position [Member] | Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | $ 126,400 | 140,863 |
Futures Contracts held in loss position [Member] | Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, current | $ (459,363) | $ (1,238,560) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (1,940,249) | $ 2,017,814 | $ (7,342,878) | $ (9,208,060) |
Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 1,405,821 | $ (1,774,753) | $ 2,796,694 | $ 8,329,573 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Investments (Details) | Sep. 30, 2022 |
Accounting Policies [Abstract] | |
Equity Method Investments, Number of Entities | 5 |
Percent of Ownership, Equity Investment | 20% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Goodwill (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Asset Impairment | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Concentration Risk (Details) - Product Concentration Risk - Revenue, Segment Benchmark | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Ethanol [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 76% | 76% |
Distillers Grain [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 17% | 18% |
Corn Oil [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 7% | 6% |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) numberOfSegments | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | $ (74,210,499) | $ (63,794,494) | $ (214,098,692) | $ (176,648,273) | |||||
Gross Profit | 7,401,848 | 9,041,115 | 18,930,306 | 25,466,388 | |||||
Net Income | 6,509,692 | $ 11,122,974 | $ 1,665,199 | 8,812,557 | $ 10,058,652 | $ 6,535,530 | 19,297,865 | 25,406,739 | |
Interest and other income | 61,607 | 21,723 | 1,559,100 | 1,328,326 | |||||
Interest Expense | 568 | 136,176 | 65,247 | 684,200 | |||||
Depreciation and amortization | 3,716,018 | 4,169,044 | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | 124,882,071 | 124,882,071 | $ 148,952,863 | ||||||
Investments | (16,141,909) | $ (16,141,909) | (20,504,842) | ||||||
Number of Reportable Segments | numberOfSegments | 2 | ||||||||
Production | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | (74,210,499) | (63,794,494) | $ (214,098,692) | (176,648,273) | |||||
Gross Profit | 7,401,848 | 9,041,115 | 18,930,306 | 25,466,388 | |||||
Net Income | 6,509,692 | 8,812,557 | 19,297,865 | 25,406,739 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | 124,882,071 | 124,882,071 | 148,952,863 | ||||||
Ethanol Producing Equity method Investments | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | (180,869,554) | (146,800,703) | (545,640,321) | (439,148,984) | |||||
Gross Profit | 7,747,126 | 15,674,893 | 31,919,797 | 42,997,910 | |||||
Net Income | 1,863,817 | 10,584,904 | 21,973,160 | 27,888,935 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | 227,125,159 | 227,125,159 | 261,642,408 | ||||||
Other Equity Method Investments | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | (4,553,075) | (4,140,757) | (13,334,531) | (12,356,312) | |||||
Gross Profit | 2,982,259 | 2,537,782 | 8,922,437 | 7,790,640 | |||||
Net Income | 1,384,948 | 747,045 | 3,625,905 | 3,407,283 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | 319,515,750 | 319,515,750 | 283,835,871 | ||||||
Combined Segments | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | (259,633,128) | (214,735,954) | (773,073,544) | (628,153,569) | |||||
Gross Profit | 18,131,233 | 27,253,790 | 59,772,540 | 76,254,938 | |||||
Net Income | 9,758,457 | 20,144,506 | 44,896,930 | 56,702,957 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | 671,522,980 | 671,522,980 | 694,431,142 | ||||||
Non-production members | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
REVENUES | (185,422,629) | (150,941,460) | (558,974,852) | (451,505,296) | |||||
Gross Profit | (10,729,385) | (18,212,675) | (40,842,234) | (50,788,550) | |||||
Net Income | (3,248,765) | $ (11,331,949) | (25,599,065) | $ (31,296,218) | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Assets | $ (546,640,909) | $ (546,640,909) | $ (545,478,279) |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Raw Materials | $ 4,247,941 | $ 7,278,381 |
Finished Goods | 2,067,174 | 6,195,222 |
Work in Process | 1,767,207 | 1,779,170 |
Parts Inventory | 1,561,642 | 1,157,664 |
Inventory | $ 9,643,964 | $ 16,410,437 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | $ 16,141,909 | $ 16,141,909 | $ 20,504,842 | |||||||
Equity in net income (loss) of investments | 315,273 | $ 1,135,138 | 2,542,068 | $ 3,072,697 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Assets, Current | 32,141,968 | 32,141,968 | 59,935,257 | |||||||
Liabilities, Current | 16,023,736 | 16,023,736 | 31,488,859 | |||||||
Liabilities, Noncurrent | 2,997,792 | 2,997,792 | 3,995,139 | |||||||
Members' Equity | 105,860,543 | 87,713,318 | 105,860,543 | 87,713,318 | $ 111,200,871 | $ 100,077,897 | 113,468,865 | $ 81,862,761 | $ 71,804,109 | $ 65,268,579 |
REVENUES | 74,210,499 | 63,794,494 | 214,098,692 | 176,648,273 | ||||||
Gross Profit | 7,401,848 | 9,041,115 | 18,930,306 | 25,466,388 | ||||||
Equity in net income (loss) of investments | 315,273 | 1,135,138 | 2,542,068 | 3,072,697 | ||||||
Investments | $ 16,141,909 | $ 16,141,909 | 20,504,842 | |||||||
Percent of Ownership, Equity Investment | 20% | 20% | ||||||||
Other Investments Combined [Member] | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Equity in net income (loss) of investments | $ 315,000 | 1,135,000 | $ 2,542,000 | 3,073,000 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity in net income (loss) of investments | 315,000 | 1,135,000 | 2,542,000 | 3,073,000 | ||||||
Ring-neck Energy and Feeds [Member] | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | 12,770,000 | $ 12,770,000 | 12,778,000 | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Accounting Treatment | 957,000 | |||||||||
Basis adjustment | $ 393,000 | |||||||||
Capitalized interest | $ 564,000 | |||||||||
Amortization period for amortization of investment premium | 20 years | |||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Accounting Treatment | 957,000 | |||||||||
Basis adjustment | $ 393,000 | |||||||||
Capitalized interest | $ 564,000 | |||||||||
Amortization period for amortization of investment premium | 20 years | |||||||||
Investments | $ 12,770,000 | $ 12,770,000 | 12,778,000 | |||||||
Percent of Ownership, Equity Investment | 11% | 11% | ||||||||
Renewable Products Marketing Group, LLC (RPMG) [Member] | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | $ 1,747,000 | $ 1,747,000 | 1,709,000 | |||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments | $ 1,747,000 | $ 1,747,000 | 1,709,000 | |||||||
Percent of Ownership, Equity Investment | 5% | 5% | ||||||||
Lawrenceville Tanks, LLC [Member] | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | $ 250,000 | $ 250,000 | 215,000 | |||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments | $ 250,000 | $ 250,000 | 215,000 | |||||||
Percent of Ownership, Equity Investment | 10% | 10% | ||||||||
Guardian Hankinson, LLC | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | $ 1,286,000 | $ 1,286,000 | 5,714,000 | |||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments | $ 1,286,000 | $ 1,286,000 | 5,714,000 | |||||||
Percent of Ownership, Equity Investment | 10% | 10% | ||||||||
Guardian Energy Management [Member] | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||
Investments | $ 90,000 | $ 90,000 | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments | $ 90,000 | $ 90,000 | ||||||||
Percent of Ownership, Equity Investment | 17% | 17% | ||||||||
Equity Method Investments | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Assets, Current | $ 384,975,099 | $ 384,975,099 | 370,470,221 | |||||||
Other Assets | 161,665,810 | 161,665,810 | 179,230,853 | |||||||
Liabilities, Current | 326,459,139 | 326,459,139 | 308,504,144 | |||||||
Liabilities, Noncurrent | 65,890,393 | 65,890,393 | 44,248,272 | |||||||
Members' Equity | 154,291,377 | 154,291,377 | 196,948,658 | |||||||
REVENUES | 185,422,629 | 150,941,460 | 558,974,852 | 451,505,296 | ||||||
Gross Profit | 10,729,385 | 18,212,675 | 40,842,234 | 50,788,550 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 3,248,765 | 11,331,949 | 25,599,065 | 31,296,218 | ||||||
Equity Method Investments | Ring-neck Energy and Feeds [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Assets, Current | 27,628,293 | 27,628,293 | 44,893,050 | |||||||
Other Assets | 117,581,103 | 117,581,103 | 122,727,914 | |||||||
Liabilities, Current | 17,620,815 | 17,620,815 | 23,595,688 | |||||||
Liabilities, Noncurrent | 27,902,652 | 27,902,652 | 38,133,180 | |||||||
Members' Equity | 99,685,929 | 99,685,929 | 105,892,096 | |||||||
REVENUES | 60,846,808 | 44,316,827 | 187,132,390 | 141,196,220 | ||||||
Gross Profit | 7,038,672 | 6,157,982 | 18,323,718 | 22,937,861 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 2,625,740 | 2,126,749 | 5,251,906 | 9,745,669 | ||||||
Equity Method Investments | Guardian Hankinson, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Assets, Current | 39,446,104 | 39,446,104 | 43,793,006 | |||||||
Other Assets | 42,469,659 | 42,469,659 | 54,451,233 | |||||||
Liabilities, Current | 31,068,150 | 31,068,150 | 34,990,527 | |||||||
Liabilities, Noncurrent | 37,987,741 | 37,987,741 | 6,115,092 | |||||||
Members' Equity | 12,859,872 | 12,859,872 | $ 57,138,620 | |||||||
REVENUES | 120,022,746 | 102,483,876 | 358,507,931 | 297,952,764 | ||||||
Gross Profit | 708,454 | 9,516,911 | 13,596,079 | 20,060,049 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ (761,923) | $ 8,458,155 | $ 16,721,254 | $ 18,143,266 |
Revolving Operating Note (Detai
Revolving Operating Note (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Feb. 06, 2018 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Unused capacity, commitment fee percentage | 25% | |
Remaining borrowing capacity | $ 2,000,000 | |
Farm Credit Services of America [Member] | Medium-term Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 3.30% | |
Line of Credit Facility, Interest Rate Description | SOFR 30 | |
Farm Credit Services of America [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 10,000,000 | |
Interest rate at period end | 5.35% | |
Amount outstanding | $ 0 | |
Remaining borrowing capacity | 2,000,000 | |
Line of Credit Facility, Periodic Payment, Principal | $ 2,000,000 | |
Basis spread on variable rate | 3.05% | |
Line of Credit Facility, Interest Rate Description | Secured Overnight Financing 30-day Average Rate |
Debt (Details)
Debt (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Feb. 06, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 4,001,000 | ||
Unamortized debt issuance expense | (3,208) | $ (4,861) | |
Long-term debt | 3,997,792 | 4,995,139 | |
Long-term debt, current maturities | (1,000,000) | (1,000,000) | |
Notes payable | 2,997,792 | 3,995,139 | |
2020 | 1,000,000 | ||
2021 | 1,000,000 | ||
2022 | 2,001,000 | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 2,000,000 | ||
Unused capacity, commitment fee percentage | 25% | ||
Farm Credit Services of America [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 4,001,000 | $ 5,000,000 | |
Farm Credit Services of America [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.05% | ||
Maximum borrowing capacity | $ 10,000,000 | ||
Remaining borrowing capacity | $ 2,000,000 | ||
Interest rate at period end | 5.35% | ||
Amount outstanding | $ 0 | ||
Line of Credit Facility, Interest Rate Description | Secured Overnight Financing 30-day Average Rate | ||
Medium-term Notes [Member] | Farm Credit Services of America [Member] | |||
Debt Instrument [Line Items] | |||
Medium-term notes | $ 8,000,000 | ||
Annual principal payment | $ 1,000,000 | ||
Basis spread on variable rate | 3.30% | ||
Interest rate | 5.60% | ||
Medium-term notes, current | $ 4,000,000 | ||
Line of Credit Facility, Interest Rate Description | SOFR 30 | ||
Revolving Credit Facility [Member] | Farm Credit Services of America [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% | ||
Current borrowing capacity | $ 40,000,000 | ||
Maximum borrowing capacity | 48,000,000 | ||
Periodic decrease in line of credit availability | 1,750,000 | ||
Remaining borrowing capacity | $ 42,749,000 | ||
Interest rate at period end | 5.60% | ||
Unused capacity, commitment fee percentage | 0.50% | ||
Amount outstanding | $ 1,000 | ||
Debt Instrument, Covenant Description | 13,500,000 | ||
Minimum Net Worth Required for Compliance | $ 28,000,000 | ||
Line of Credit Facility, Interest Rate Description | SOFR 30 | ||
Revolving Promissory Note [Member] | Farm Credit Services of America [Member] | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 32,250,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, gross | $ 4,001,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, gross | 4,001,000 | $ 4,000,000 |
Long-term debt, fair value | 4,001,000 | 4,000,000 |
Fair Value, Recurring [Member] | Future [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 126,400 | 140,863 |
Derivative liability | (459,363) | (1,238,560) |
Fair Value, Recurring [Member] | Future [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 126,400 | 140,863 |
Derivative liability | (459,363) | (1,238,560) |
Fair Value, Recurring [Member] | Future [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value, Recurring [Member] | Future [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value, Recurring [Member] | Forward Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 2,103,381 | 892,509 |
Derivative liability | (620,123) | (1,490,510) |
Fair Value, Recurring [Member] | Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value, Recurring [Member] | Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 2,103,381 | 892,509 |
Derivative liability | (620,123) | (1,490,510) |
Fair Value, Recurring [Member] | Forward Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Percent of Ownership, Equity Investment | 20% | 20% | |||
Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | $ 71,646 | $ 71,646 | $ 79,909 | ||
Percent of Ownership, Equity Investment | 5% | 5% | |||
Board of Managers Members | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 1,093,000 | $ 1,037,000 | $ 1,657,000 | $ 1,506,000 | |
Due to related parties | 0 | 0 | $ 0 | ||
Ethanol [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue, related party | 56,461,839 | 50,058,768 | 162,392,421 | 137,184,137 | |
Marketing fees, related party | 76,137 | 63,738 | 228,402 | 191,214 | |
Distillers Grain [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue, related party | 4,969,228 | 3,422,681 | 12,353,408 | 9,758,249 | |
Marketing fees, related party | 22,103 | 15,848 | 54,784 | 47,558 | |
Corn Oil [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue, related party | 4,917,518 | 4,082,593 | 14,015,718 | 9,889,836 | |
Marketing fees, related party | 15,396 | 14,468 | 43,829 | 41,369 | |
Denaturant [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Marketing fees, related party | $ 552,843 | $ 914,355 | $ 1,871,487 | $ 2,547,836 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) MMcf in Thousands, gal in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) MMcf gal | |
Storage Tank | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-Term Purchase Commitment, Amount | $ 2,200,000 |
Long-Term Purchase Commitment [Line Items] | |
Long-Term Purchase Commitment, Amount | $ 2,200,000 |
long-term purchase commitment, gallons | gal | 2 |
Fermentor | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 0 |
Long-Term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | 0 |
Grain Bin | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment, Remaining Minimum Amount Committed | 1.6 |
Long-Term Purchase Commitment, Amount | 5.8 |
Long-Term Purchase Commitment [Line Items] | |
Long-Term Purchase Commitment, Amount | 5.8 |
Purchase Commitment, Remaining Minimum Amount Committed | 1.6 |
Natural Gas [Member] | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment, Remaining Minimum Amount Committed | 6,223,000 |
Long-Term Purchase Commitment, Amount | 8,890,000 |
Long-Term Purchase Commitment [Line Items] | |
Long-Term Purchase Commitment, Amount | 8,890,000 |
Purchase Commitment, Remaining Minimum Amount Committed | $ 6,223,000 |
Natural Gas [Member] | Five Year Period | |
Long-Term Purchase Commitment [Line Items] | |
Long-Term Purchase Commitment, dekatherms | MMcf | 7 |
Natural Gas [Member] | One Year Period | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-Term Purchase Commitment, Description | 4,340 |
Long-Term Purchase Commitment [Line Items] | |
Long-Term Purchase Commitment, Description | 4,340 |