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 December 31, 2022 unaudited interim results. The carrying amount of the Company’s investment was approximately $2,303,000 and $2,286,000 as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 unaudited interim results. The carrying amount of the Company’s investment was approximately $287,000 and $216,000 as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 unaudited interim results. The carrying amount of the Company’s investment was approximately $2,271,000 and $1,870,000 as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 unaudited interim results. The carrying amount of the Company’s investment was approximately $92,000 as of March 31, 2023 and December 31, 2022. Lake Area Corn Processors has an 12% 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 March 31, 2023 unaudited interim results. The carrying amount of the Company’s investment was approximately $13,601,000 and $13,227,000 as of March 31, 2023 and December 31, 2022, respectively. The carrying amount of the investment exceeds the underlying equity in net assets by approximately $927,000. The excess is comprised of a basis adjustment of approximately $381,000 and capitalized interest of $546,000. 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 March 31, 2023 December 31, 2022 Current Assets $ 364,219,061 $ 376,111,612 Other Assets 157,291,914 160,018,056 Current Liabilities 305,205,261 334,797,023 Long-term Liabilities 30,527,382 36,462,751 Members' Equity 185,778,332 164,869,892 Three Months Ended Income Statement March 31, 2023 March 31, 2022 Revenue $ 166,959,469 $ 174,537,336 Gross Profit 15,441,830 7,094,735 Net Income (Loss) 7,458,774 (340,239) The following table shows the condensed financial information of GH; the investment which represents greater than 10% of the Company's income as of December 31, 2022. Balance Sheet March 31, 2023 December 31, 2022 Current Assets $ 36,869,488 $ 35,429,047 Other Assets 41,101,992 41,806,802 Current Liabilities 46,563,523 49,708,032 Long-term Liabilities 8,702,074 8,829,302 Members' Equity 22,705,883 18,698,514 Three Months Ended Income Statement March 31, 2023 March 31, 2022 Revenue $ 112,936,798 $ 109,398,742 Gross Profit 5,339,374 370,244 Net Income (Loss) 4,007,369 (450,990) The following table shows the condensed financial information of REF; the investment which represents greater than 10% of the Company's assets as of December 31, 2022. Balance Sheet March 31, 2023 December 31, 2022 Current Assets $ 27,853,480 $ 46,040,175 Other Assets 114,462,879 116,200,396 Current Liabilities 13,548,389 30,950,092 Long-term Liabilities 21,825,308 27,633,449 Members' Equity 106,942,662 103,657,030 Three Months Ended Income Statement March 31, 2023 March 31, 2022 Revenue $ 49,684,657 $ 60,729,585 Gross Profit 7,198,696 3,788,635 Net Income (Loss) 2,261,175 (1,021,227) The Company recorded equity in net income (loss) of investment at approximately $864,000 and $(1,500) from our investments for the three months ended March 31, 2023, and 2022, respectively. |