Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 12, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
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 - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
CURRENT ASSETS | ||
Accounts receivable | $ 950,008 | $ 1,083,258 |
Accounts Receivable, Related Parties, Current | 8,944,477 | 1,850,646 |
Inventory | 19,255,718 | 25,795,711 |
Derivative financial instruments | 1,249,678 | 2,856,439 |
Prepaid expenses | 1,445,914 | 864,810 |
Total current assets | 32,688,072 | 59,455,069 |
PROPERTY AND EQUIPMENT | ||
Land | 874,473 | 874,473 |
Land improvements | 8,763,023 | 8,763,023 |
Buildings | 9,316,576 | 9,316,576 |
Equipment | 108,127,329 | 108,125,289 |
Construction in progress | 416,491 | 13,366 |
Gross Property and Equipment | 127,497,892 | 127,092,727 |
Less accumulated depreciation | (65,005,083) | (63,611,356) |
Net property and equipment | 62,492,809 | 63,481,371 |
OTHER ASSETS | ||
Goodwill | 10,395,766 | 10,395,766 |
Investments | 18,554,806 | 17,691,011 |
Other | 8,194,480 | 5,383,310 |
Total other assets | 37,145,052 | 33,470,087 |
TOTAL ASSETS | 132,325,933 | 156,406,527 |
CURRENT LIABILITIES | ||
Outstanding checks in excess of bank balance | 3,828,414 | 4,200,281 |
Accounts payable | 12,213,956 | 39,105,845 |
Accrued liabilities | 571,303 | 719,113 |
Derivative financial instruments | 474,497 | 435,053 |
Current maturities of notes payable | 1,000,000 | 1,000,000 |
Total current liabilities | 18,088,170 | 45,460,292 |
LONG-TERM LIABILITIES | ||
Notes payable | 2,998,667 | 2,998,229 |
Total long-term liabilities | 2,998,667 | 2,998,229 |
MEMBERS' EQUITY (29,620,000 units issued and outstanding) | 111,239,096 | 107,948,006 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | 132,325,933 | 156,406,527 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 842,277 | $ 27,004,205 |
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | 29,620,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUES | $ 77,841,106 | $ 64,450,894 |
COSTS OF REVENUES | 73,942,513 | 61,758,095 |
Gross Profit | 3,898,593 | 2,692,799 |
OPERATING EXPENSES | 1,451,502 | 1,247,879 |
INCOME (LOSS) FROM OPERATIONS | 2,447,091 | 1,444,920 |
OTHER INCOME (EXPENSE) | ||
Interest and other income | 196,465 | 254,548 |
Equity in net income (loss) of investments | 863,795 | (1,543) |
Interest expense | (90,291) | (32,726) |
Total other income (expense) | 969,969 | 220,279 |
NET INCOME (LOSS) | $ 3,417,060 | $ 1,665,199 |
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax | $ 0.12 | $ 0.06 |
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | 29,620,000 | 29,620,000 |
DISTRIBUTIONS DECLARED PER UNIT (in dollars per unit) | $ 0 | $ 0.51 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity (Unaudited) - 3 months ended Mar. 31, 2023 | USD ($) |
Balance at the beginning of period at Dec. 31, 2022 | $ 107,948,006 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 3,417,060 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ (125,970) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 3,417,060 | $ 1,665,199 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Depreciation and amortization | 1,398,163 | 1,222,429 |
Distributions in excess of earnings from investments | (863,795) | 2,501,543 |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | 125,400 |
(Increase) decrease in | ||
Accounts receivable | (6,960,581) | 819,094 |
Inventory | 6,539,993 | (3,178,651) |
Prepaid expenses | 159,728 | 149,788 |
Increase (Decrease) in Derivative Assets and Liabilities | 1,646,205 | (2,893,456) |
Accounts payable | (26,287,473) | (21,814,546) |
Accrued and other liabilities | (147,810) | (400,476) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | (21,098,510) | (22,054,476) |
Payments for (Proceeds from) Other Investing Activities | (3,556,000) | 0 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (1,009,581) | (2,386,032) |
NET CASH (USED IN) INVESTING ACTIVITIES | (4,565,581) | (2,386,032) |
FINANCING ACTIVITIES | ||
Increase (decrease) in outstanding checks in excess of bank balance | (371,867) | (306,315) |
Borrowings on notes payable | 5,949,000 | 3,000,000 |
Principal payments on notes payable | (5,949,000) | (1,000,000) |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (125,970) | (15,056,167) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (497,837) | (13,362,482) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (26,161,928) | (37,802,990) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 842,277 | 192,320 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest, net of capitalized interest of $2,480 and $26,844 in 2023 and 2022, respectively. | 75,768 | 50,316 |
Capital expenditures in accounts payable | $ 0 | $ 37,561 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 2,480 | $ 26,844 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
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 100 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 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, 2022, contained in the Company's annual report on Form 10-K for 2022 filed with the SEC on March 9, 2023. 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. Revenues from contracts with customers are recognized when control of the promised goods or services 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 FOB shipping point and control of the goods transfers to customers when the goods are loaded into trucks or when rail cars are shipped. Consideration is based on predetermined contractual prices or on current market prices. • sales of ethanol • sales of distillers grains • sales of distillers corn oil 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 March 31 2023 2022 Revenues ethanol $ 58,403,869 $ 48,205,895 Revenues distillers grains 14,609,329 12,124,702 Revenues distillers corn oil 4,827,908 4,120,297 $ 77,841,106 $ 64,450,894 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 March 31, 2023 and December 31, 2022. 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 distillers grains are included in cost of revenues. 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. Cash and Cash Equivalents Cash and cash equivalents consist of demand accounts and other accounts with original maturities of three months or less that provide withdrawal privileges. 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 March 31, 2023 and December 31, 2022. 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, future and options 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 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 March 31, 2023, the Company was committed to purchasing approximately 3.2 million bushels of corn on a forward contract basis with an average price of $6.58 per bushel. The total corn purchase contracts represent approximately 9% 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 March 31, 2023, the Company is committed to purchasing approximately 1,649,000 MMBtus of natural gas with an average price of $3.64 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 79% 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 March 31, 2023, the Company was committed to selling approximately 34,000 dry equivalent tons of distillers grains with an average price of $246 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 15% 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 March 31, 2023, the Company was committed to selling approximately 2.8 million pounds of distillers corn oil with an average price of $0.59 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 8% of the projected annual plant production. The Company did not have any firm-priced sales commitments for ethanol as of March 31, 2023. 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, or a normal purchase, normal sale exemption is elected. 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 March 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification March 31, 2023 December 31, 2022* Corn forward contracts in gain position $ 197,924 $ 922,181 Futures contracts in gain position 346,463 252,450 Futures contracts in loss position (397,363) (395,300) Total forward, futures and options contracts 147,024 779,331 Cash held by broker 1,102,654 2,077,108 Current Assets $ 1,249,678 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (474,497) $ (435,053) *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 March 31, Classification 2023 2022 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,317,655 $ (8,560,524) Forward contracts Cost of Revenues (2,095,875) 4,207,196 Investments The Company has investment interests in five 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 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, 2022 or through March 31, 2023 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 and fixed asset 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 March 31, 2023, ethanol sales averaged approximately 75% of total revenues, while approximately 19% of revenues were generated from the sale of distillers grains and 6% of revenues were generated from the sale of corn oil. For the three months ended March 31, 2023, corn costs averaged approximately 76% of cost of goods sold. 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 |
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, 2022 or through March 31, 2023 on the basis that no triggering events were noted. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | SEGMENTS 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 March 31, 2023 March 31, 2022 unaudited unaudited Net Sales Production $ 77,841,106 $ 64,450,894 Ethanol Producing Equity Method Investments 162,621,455 170,128,327 All Other 4,338,014 4,409,009 Total 244,800,575 238,988,230 Reconciliation (166,959,469) (174,537,336) Consolidated $ 77,841,106 $ 64,450,894 Gross Profit: Production $ 3,898,593 $ 2,692,799 Ethanol Producing Equity Method Investments 12,538,070 4,158,879 All Other 2,903,760 2,935,856 Total 19,340,423 9,787,534 Reconciliation (15,441,830) (7,094,735) Consolidated $ 3,898,593 $ 2,692,799 Net Income: Production $ 3,417,060 $ 1,665,199 Ethanol Producing Equity Method Investments 6,268,544 (1,472,217) All Other 1,206,647 1,131,978 Total 10,892,251 1,324,960 Reconciliation (7,475,191) 340,239 Consolidated $ 3,417,060 $ 1,665,199 March 31, 2023 December 31, 2022 unaudited audited Total Assets Production $ 132,325,933 $ 156,406,527 Ethanol Producing Equity Method Investments 220,287,839 239,476,419 All Other 301,223,137 296,653,249 Total 653,836,909 692,536,195 Reconciliation (521,510,976) (536,129,668) Consolidated $ 132,325,933 $ 156,406,527 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022* Raw materials $ 12,186,837 $ 12,397,256 Finished goods 3,617,883 10,050,394 Work in process 1,817,431 1,353,715 Parts inventory 1,633,567 1,994,346 $ 19,255,718 $ 25,795,711 *Derived from audited financial statements. |
Investments, Equity Method and
Investments, Equity Method and Joint Ventures | 3 Months Ended |
Mar. 31, 2023 | |
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 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. |
Revolving Operating Note
Revolving Operating Note | 3 Months Ended |
Mar. 31, 2023 | |
Short Term Note Payable [Abstract] | |
Revolving Operating Note | REVOLVING PROMISSORY NOTEDakota Ethanol has a revolving promissory note with Farm Credit Services of America (FCSA) in the amount up to $2,000,000 or the amount available in accordance with the borrowing base calculation, whichever is less. 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 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 7.60% at March 31, 2023. On March 31, 2023, Dakota Ethanol had $0 outstanding and $2,000,000 available to be drawn on the revolving promissory note. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 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 March 31, 2023 Assets: Derivative financial instruments, futures and options contracts $ 346,463 $ 346,463 $ — $ — Forward contracts $ 197,924 $ — $ 197,924 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 397,363 $ 397,363 $ — $ — Forward contracts $ 474,497 $ — $ 474,497 $ — December 31, 2022* Assets: Derivative financial instruments, futures and options contracts $ 252,450 $ 252,450 $ — $ — Forward contracts $ 922,181 $ — $ 922,181 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 395,300 $ 395,300 $ — $ — Forward contracts $ 435,053 $ — $ 435,053 $ — *Derived from audited financial statements. During the three months ended March 31, 2023, the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022. 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 2) approximates fair value. The carrying amount of long-term obligations (level 3) at March 31, 2023 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, 2022 of $4,001,000 had an estimated fair value of approximately $4,001,000. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
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 distillers 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 March 31, 2023 2022 Revenues ethanol $ 58,468,720 $ 48,282,029 Revenues distillers dried grains 2,920,145 3,361,155 Revenues corn oil 4,844,211 4,134,608 Marketing fees ethanol (64,851) (76,134) Marketing fees distillers dried grains (11,389) (16,919) Marketing fees corn oil (16,303) (14,311) Denaturant purchases 535,782 686,120 March 31, 2023 December 31, 2022* Amounts due to RPMG $ 10,074 $ 123,573 *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 three months ended March 31, 2023 and 2022 totaled approximately $285,000 and $159,000, respectively. As of March 31, 2023 and December 31, 2022, the Company had no outstanding obligations to these related parties. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | CCOMMITMENTS, CONTINGENCIES AND AGREEMENTS 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, which has been paid in its entirety as of March 31, 2023. 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. The payments to Northern Natural Gas are included in other assets on the consolidated balance sheet. From time to time in the normal course of business, the Company can be subject to litigation based on its operations. There is no current litigation nor any litigation that is considered probable at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 or through March 31, 2023 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. Revenues from contracts with customers are recognized when control of the promised goods or services 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 FOB shipping point and control of the goods transfers to customers when the goods are loaded into trucks or when rail cars are shipped. Consideration is based on predetermined contractual prices or on current market prices. • sales of ethanol • sales of distillers grains • sales of distillers corn oil 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 March 31 2023 2022 Revenues ethanol $ 58,403,869 $ 48,205,895 Revenues distillers grains 14,609,329 12,124,702 Revenues distillers corn oil 4,827,908 4,120,297 $ 77,841,106 $ 64,450,894 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 March 31, 2023 and December 31, 2022. 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. Cash and Cash Equivalents Cash and cash equivalents consist of demand accounts and other accounts with original maturities of three months or less that provide withdrawal privileges. |
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, future and options 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 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 March 31, 2023, the Company was committed to purchasing approximately 3.2 million bushels of corn on a forward contract basis with an average price of $6.58 per bushel. The total corn purchase contracts represent approximately 9% 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 March 31, 2023, the Company is committed to purchasing approximately 1,649,000 MMBtus of natural gas with an average price of $3.64 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 79% 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 March 31, 2023, the Company was committed to selling approximately 34,000 dry equivalent tons of distillers grains with an average price of $246 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 15% 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 March 31, 2023, the Company was committed to selling approximately 2.8 million pounds of distillers corn oil with an average price of $0.59 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 8% of the projected annual plant production. The Company did not have any firm-priced sales commitments for ethanol as of March 31, 2023. 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, or a normal purchase, normal sale exemption is elected. 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 March 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification March 31, 2023 December 31, 2022* Corn forward contracts in gain position $ 197,924 $ 922,181 Futures contracts in gain position 346,463 252,450 Futures contracts in loss position (397,363) (395,300) Total forward, futures and options contracts 147,024 779,331 Cash held by broker 1,102,654 2,077,108 Current Assets $ 1,249,678 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (474,497) $ (435,053) *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 March 31, Classification 2023 2022 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,317,655 $ (8,560,524) Forward contracts Cost of Revenues (2,095,875) 4,207,196 |
Investments | Investments The Company has investment interests in five 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 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 and fixed asset 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 March 31, 2023, ethanol sales averaged approximately 75% of total revenues, while approximately 19% of revenues were generated from the sale of distillers grains and 6% of revenues were generated from the sale of corn oil. For the three months ended March 31, 2023, corn costs averaged approximately 76% of cost of goods sold. 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 Revenues ethanol $ 58,403,869 $ 48,205,895 Revenues distillers grains 14,609,329 12,124,702 Revenues distillers corn oil 4,827,908 4,120,297 $ 77,841,106 $ 64,450,894 |
Derivatives Not Designated as Hedging Instruments | Derivatives not designated as hedging instruments at March 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification March 31, 2023 December 31, 2022* Corn forward contracts in gain position $ 197,924 $ 922,181 Futures contracts in gain position 346,463 252,450 Futures contracts in loss position (397,363) (395,300) Total forward, futures and options contracts 147,024 779,331 Cash held by broker 1,102,654 2,077,108 Current Assets $ 1,249,678 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (474,497) $ (435,053) *Derived from audited financial statements |
Net realized and unrealized gains (losses) related to purchase contracts | Statement of Operations Three Months Ended March 31, Classification 2023 2022 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,317,655 $ (8,560,524) Forward contracts Cost of Revenues (2,095,875) 4,207,196 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 March 31, 2022 unaudited unaudited Net Sales Production $ 77,841,106 $ 64,450,894 Ethanol Producing Equity Method Investments 162,621,455 170,128,327 All Other 4,338,014 4,409,009 Total 244,800,575 238,988,230 Reconciliation (166,959,469) (174,537,336) Consolidated $ 77,841,106 $ 64,450,894 Gross Profit: Production $ 3,898,593 $ 2,692,799 Ethanol Producing Equity Method Investments 12,538,070 4,158,879 All Other 2,903,760 2,935,856 Total 19,340,423 9,787,534 Reconciliation (15,441,830) (7,094,735) Consolidated $ 3,898,593 $ 2,692,799 Net Income: Production $ 3,417,060 $ 1,665,199 Ethanol Producing Equity Method Investments 6,268,544 (1,472,217) All Other 1,206,647 1,131,978 Total 10,892,251 1,324,960 Reconciliation (7,475,191) 340,239 Consolidated $ 3,417,060 $ 1,665,199 March 31, 2023 December 31, 2022 unaudited audited Total Assets Production $ 132,325,933 $ 156,406,527 Ethanol Producing Equity Method Investments 220,287,839 239,476,419 All Other 301,223,137 296,653,249 Total 653,836,909 692,536,195 Reconciliation (521,510,976) (536,129,668) Consolidated $ 132,325,933 $ 156,406,527 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022* Raw materials $ 12,186,837 $ 12,397,256 Finished goods 3,617,883 10,050,394 Work in process 1,817,431 1,353,715 Parts inventory 1,633,567 1,994,346 $ 19,255,718 $ 25,795,711 *Derived from audited financial statements. |
Investments, Equity Method an_2
Investments, Equity Method and Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 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) 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) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The balances of the notes payable are as follows. The balances reflect the updated agreement: March 31, 2023 December 31, 2022 Term Note Payable $ 4,000,000 $ 4,000,000 Revolving Note Payable 1,000 1,000 Less unamortized debt issuance costs (2,333) (2,771) 3,998,667 3,998,229 Less current portion (1,000,000) (1,000,000) $ 2,998,667 $ 2,998,229 *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 March 31, Principal 2024 $ 1,000,000 2025 1,000,000 2026 2,001,000 $ 4,001,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 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 March 31, 2023 Assets: Derivative financial instruments, futures and options contracts $ 346,463 $ 346,463 $ — $ — Forward contracts $ 197,924 $ — $ 197,924 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 397,363 $ 397,363 $ — $ — Forward contracts $ 474,497 $ — $ 474,497 $ — December 31, 2022* Assets: Derivative financial instruments, futures and options contracts $ 252,450 $ 252,450 $ — $ — Forward contracts $ 922,181 $ — $ 922,181 $ — Liabilities: Derivative financial instruments, futures and options contracts $ 395,300 $ 395,300 $ — $ — Forward contracts $ 435,053 $ — $ 435,053 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 Revenues ethanol $ 58,468,720 $ 48,282,029 Revenues distillers dried grains 2,920,145 3,361,155 Revenues corn oil 4,844,211 4,134,608 Marketing fees ethanol (64,851) (76,134) Marketing fees distillers dried grains (11,389) (16,919) Marketing fees corn oil (16,303) (14,311) Denaturant purchases 535,782 686,120 March 31, 2023 December 31, 2022* Amounts due to RPMG $ 10,074 $ 123,573 |
Nature of Operations (Details)
Nature of Operations (Details) gal in Millions | 3 Months Ended |
Mar. 31, 2023 gal | |
Product Information [Line Items] | |
Equity Method Investments, Number of Entities | 5 |
Product [Member] | Ethanol [Member] | |
Product Information [Line Items] | |
Annual production capacity | 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue from customers (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 77,841,106 | $ 64,450,894 | |
Contract with Customer, Liability | 0 | $ 0 | |
Ethanol [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | 58,403,869 | 48,205,895 | |
Distillers Grain [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | 14,609,329 | 12,124,702 | |
Corn Oil [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 4,827,908 | $ 4,120,297 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Receivables and Credit Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
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 | Mar. 31, 2023 USD ($) bu MMBTU T | Dec. 31, 2022 USD ($) |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 1,249,678 | $ 2,856,439 |
Derivative Instruments and Hedges, Liabilities | 474,497 | 435,053 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 147,024 | 779,331 |
Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash held by broker | 1,102,654 | 2,077,108 |
Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | 1,249,678 | 2,856,439 |
Derivative Instruments and Hedges, Liabilities | (197,924) | (922,181) |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 474,497 | 435,053 |
Corn [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | bu | 3.2 | |
Purchase Commitment, Per unit | $ 6.58 | |
Percent of required need, coverage | 9% | |
Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | MMBTU | 1,649,000 | |
Purchase Commitment, Per unit | $ 3.64 | |
Percent of required need, coverage | 79% | |
Distillers Grain [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase Commitment, Per unit | $ 246 | |
Percent of required need, coverage | 15% | |
Corn Oil [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase Commitment, Per unit | $ 0.59 | |
Distillers Grain [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | T | 34,000 | |
Distillers Corn Oil [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | bu | 2.8 | |
Percent of required need, coverage | 8% | |
Futures contracts in gain position [Member] | Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | $ 346,463 | 252,450 |
Futures Contracts held in loss position [Member] | Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, current | $ (397,363) | $ (395,300) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Future [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 1,317,655 | $ (8,560,524) |
Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (2,095,875) | $ 4,207,196 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Investments (Details) | Mar. 31, 2023 |
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) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Asset Impairment | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Concentration Risk (Details) - Product Concentration Risk | 3 Months Ended |
Mar. 31, 2023 | |
Ethanol [Member] | Revenue, Segment Benchmark | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 75% |
Distillers Grain [Member] | Revenue, Segment Benchmark | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 19% |
Corn Oil [Member] | Revenue, Segment Benchmark | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 6% |
Corn [Member] | Cost of Goods and Service, Segment Benchmark | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 76% |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | ||||
Mar. 31, 2023 USD ($) numberOfSegments | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | $ (77,841,106) | $ (64,450,894) | |||
Gross Profit | 3,898,593 | 2,692,799 | |||
Net Income | 3,417,060 | $ 3,417,060 | 1,665,199 | $ 1,665,199 | |
Interest and other income | 196,465 | 254,548 | |||
Interest Expense | 90,291 | 32,726 | |||
Depreciation and amortization | 1,398,163 | 1,222,429 | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 132,325,933 | $ 156,406,527 | |||
Investments | $ (18,554,806) | (17,691,011) | |||
Number of Reportable Segments | numberOfSegments | 2 | ||||
Production | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | $ (77,841,106) | (64,450,894) | |||
Gross Profit | 3,898,593 | 2,692,799 | |||
Net Income | 3,417,060 | 1,665,199 | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 132,325,933 | 156,406,527 | |||
Ethanol Producing Equity method Investments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | (162,621,455) | (170,128,327) | |||
Gross Profit | 12,538,070 | 4,158,879 | |||
Net Income | 6,268,544 | (1,472,217) | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 220,287,839 | 239,476,419 | |||
Other Equity Method Investments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | (4,338,014) | (4,409,009) | |||
Gross Profit | 2,903,760 | 2,935,856 | |||
Net Income | 1,206,647 | 1,131,978 | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 301,223,137 | 296,653,249 | |||
Combined Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | (244,800,575) | (238,988,230) | |||
Gross Profit | 19,340,423 | 9,787,534 | |||
Net Income | 10,892,251 | 1,324,960 | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 653,836,909 | 692,536,195 | |||
Non-production members | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
REVENUES | (166,959,469) | (174,537,336) | |||
Gross Profit | (15,441,830) | (7,094,735) | |||
Net Income | (7,475,191) | $ 340,239 | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | $ (521,510,976) | $ (536,129,668) |
Inventory (Details)
Inventory (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Inventory [Line Items] | ||
Raw Materials | $ 12,186,837 | $ 12,397,256 |
Finished Goods | 3,617,883 | 10,050,394 |
Work in Process | 1,817,431 | 1,353,715 |
Parts Inventory | 1,633,567 | 1,994,346 |
Inventory | 19,255,718 | 25,795,711 |
Inventory Write-down | $ 5,000 | $ 2,000 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 18,554,806 | $ 17,691,011 | ||||
Equity in net income (loss) of investments | 863,795 | $ (1,543) | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Assets, Current | 32,688,072 | 59,455,069 | ||||
Liabilities, Current | 18,088,170 | 45,460,292 | ||||
Liabilities, Noncurrent | 2,998,667 | 2,998,229 | ||||
Members' Equity | 107,948,006 | $ 111,239,096 | $ 113,468,865 | $ 100,077,897 | ||
REVENUES | 77,841,106 | 64,450,894 | ||||
Gross Profit | 3,898,593 | 2,692,799 | ||||
Equity in net income (loss) of investments | 863,795 | (1,543) | ||||
Investments | $ 18,554,806 | 17,691,011 | ||||
Percent of Ownership, Equity Investment | 20% | |||||
Other Investments Combined [Member] | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Equity in net income (loss) of investments | $ 864,000 | (1,500) | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net income (loss) of investments | 864,000 | (1,500) | ||||
Ring-neck Energy and Feeds [Member] | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 13,601,000 | 13,227,000 | ||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Accounting Treatment | 927,000 | |||||
Basis adjustment | $ 381,000 | |||||
Capitalized interest | $ 546,000 | |||||
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 | 927,000 | |||||
Basis adjustment | $ 381,000 | |||||
Capitalized interest | $ 546,000 | |||||
Amortization period for amortization of investment premium | 20 years | |||||
Investments | $ 13,601,000 | 13,227,000 | ||||
Percent of Ownership, Equity Investment | 12% | |||||
Renewable Products Marketing Group, LLC (RPMG) [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of Ownership, Equity Investment | 5% | |||||
Lawrenceville Tanks, LLC [Member] | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 287,000 | 216,000 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments | $ 287,000 | 216,000 | ||||
Percent of Ownership, Equity Investment | 10% | |||||
Guardian Hankinson, LLC | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 2,271,000 | 1,870,000 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments | $ 2,271,000 | 1,870,000 | ||||
Percent of Ownership, Equity Investment | 10% | |||||
Guardian Energy Management [Member] | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 92,000 | 92,000 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments | $ 92,000 | 92,000 | ||||
Percent of Ownership, Equity Investment | 17% | |||||
Dakota Ethanol | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Investments | $ 2,303,000 | 2,286,000 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments | 2,303,000 | 2,286,000 | ||||
Equity Method Investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Assets, Current | 364,219,061 | 376,111,612 | ||||
Other Assets | 157,291,914 | 160,018,056 | ||||
Liabilities, Current | 305,205,261 | 334,797,023 | ||||
Liabilities, Noncurrent | 30,527,382 | 36,462,751 | ||||
Members' Equity | 185,778,332 | 164,869,892 | ||||
REVENUES | 166,959,469 | 174,537,336 | ||||
Gross Profit | 15,441,830 | 7,094,735 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 7,458,774 | (340,239) | ||||
Equity Method Investments | Ring-neck Energy and Feeds [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Assets, Current | 27,853,480 | 46,040,175 | ||||
Other Assets | 114,462,879 | 116,200,396 | ||||
Liabilities, Current | 13,548,389 | 30,950,092 | ||||
Liabilities, Noncurrent | 21,825,308 | 27,633,449 | ||||
Members' Equity | 106,942,662 | 103,657,030 | ||||
REVENUES | 49,684,657 | 60,729,585 | ||||
Gross Profit | 7,198,696 | 3,788,635 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 2,261,175 | (1,021,227) | ||||
Equity Method Investments | Guardian Hankinson, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Assets, Current | 36,869,488 | 35,429,047 | ||||
Other Assets | 41,101,992 | 41,806,802 | ||||
Liabilities, Current | 46,563,523 | 49,708,032 | ||||
Liabilities, Noncurrent | 8,702,074 | 8,829,302 | ||||
Members' Equity | 22,705,883 | $ 18,698,514 | ||||
REVENUES | 112,936,798 | 109,398,742 | ||||
Gross Profit | 5,339,374 | 370,244 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 4,007,369 | $ (450,990) |
Revolving Operating Note (Detai
Revolving Operating Note (Details) - Farm Credit Services of America [Member] - Revolving Credit Facility [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,000,000 |
Unused capacity, commitment fee percentage | 0.25% |
Basis spread on variable rate | 30,500% |
Interest rate | 7.60% |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | Secured Overnight Financing 30-day Average Rate ("SOFR 30") |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Jul. 01, 2025 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 4,001,000 | ||
Unamortized debt issuance expense | (2,333) | $ (2,771) | |
Long-term debt | 3,998,667 | 3,998,229 | |
Long-term debt, current maturities | (1,000,000) | (1,000,000) | |
Notes payable | 2,998,667 | 2,998,229 | |
2020 | 1,000,000 | ||
2021 | 1,000,000 | ||
2022 | 2,001,000 | ||
Notes Payable | 1,000 | 1,000 | |
Farm Credit Services of America [Member] | |||
Debt Instrument [Line Items] | |||
Minimum Net Worth Required for Compliance | 28,000,000 | ||
Long-term debt, gross | 4,000,000 | $ 4,000,000 | |
working capital covenant | 13,500,000 | ||
Farm Credit Services of America [Member] | Medium-term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 8,000,000 | ||
Farm Credit Services of America [Member] | Short-Term Debt, Type [Domain] | |||
Debt Instrument [Line Items] | |||
Annual principal payment | $ 1,000,000 | ||
Basis spread on variable rate | 33,000% | ||
Interest rate | 7.85% | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 4,000,000 | ||
Farm Credit Services of America [Member] | Short-Term Debt, Type [Domain] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | the SOFR 30 | ||
Farm Credit Services of America [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 30,500% | ||
Interest rate | 7.60% | ||
Maximum borrowing capacity | $ 2,000,000 | ||
Remaining borrowing capacity | $ 2,000,000 | ||
Unused capacity, commitment fee percentage | 0.25% | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | ||
Farm Credit Services of America [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Secured Overnight Financing 30-day Average Rate ("SOFR 30") | ||
Farm Credit Services of America [Member] | Reducing Revolving Promissory Note | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% | ||
Interest rate | 785% | ||
Maximum borrowing capacity | $ 48,000,000 | ||
Remaining borrowing capacity | $ 40,999,000 | ||
Unused capacity, commitment fee percentage | 0.50% | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 1,000 | ||
Line of Credit Facility, Semi-annual Maximum Reduction | $ 1,750,000 | ||
Farm Credit Services of America [Member] | Reducing Revolving Promissory Note | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 32,250,000 | ||
Farm Credit Services of America [Member] | Reducing Revolving Promissory Note | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | SOFR 30 | ||
Revolving Credit Facility [Member] | Farm Credit Services of America [Member] | Debt Service Coverage Ratio | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant Description | 1.25 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
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 | $ 4,001,000 |
Long-term debt, fair value | 4,001,000 | 4,001,000 |
Fair Value, Recurring [Member] | Future [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 346,463 | 252,450 |
Derivative liability | (397,363) | (395,300) |
Fair Value, Recurring [Member] | Future [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 346,463 | 252,450 |
Derivative liability | (397,363) | (395,300) |
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 | 197,924 | 922,181 |
Derivative liability | (474,497) | (435,053) |
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 | 197,924 | 922,181 |
Derivative liability | (474,497) | (435,053) |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Percent of Ownership, Equity Investment | 20% | ||
Renewable Products Marketing Group, LLC (RPMG) [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | $ 10,074 | $ 123,573 | |
Percent of Ownership, Equity Investment | 5% | ||
Board of Managers Members | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 285,000 | $ 159,000 | |
Due to related parties | 0 | $ 0 | |
Ethanol [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue, related party | 58,468,720 | 48,282,029 | |
Marketing fees, related party | (64,851) | (76,134) | |
Distillers Grain [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue, related party | 2,920,145 | 3,361,155 | |
Marketing fees, related party | (11,389) | (16,919) | |
Corn Oil [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue, related party | 4,844,211 | 4,134,608 | |
Marketing fees, related party | (16,303) | (14,311) | |
Denaturant [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||
Related Party Transaction [Line Items] | |||
Marketing fees, related party | $ 535,782 | $ 686,120 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Electricity And Natural Gas | 3 Months Ended |
Mar. 31, 2023 USD ($) Bcf | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment, estimated total contribution | $ | $ 8,890,000 |
Purchase Commitment, estimated total contribution | $ | $ 8,890,000 |
November - March 31 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-Term Purchase Commitment, Minimum Volume Required | 7,000 |
Long-Term Purchase Commitment, Minimum Volume Required | 7,000 |
Summer Months | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-Term Purchase Commitment, Minimum Volume Required | 4,340 |
Long-Term Purchase Commitment, Minimum Volume Required | 4,340 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | May 11, 2023 | Apr. 04, 2023 |
Subsequent Events [Abstract] | ||
Litigation Settlement, Amount Awarded from Other Party | $ 2,500,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $ 2,962,000 | |
Distribution Declared, per Unit | 0.10 | |
Subsequent Event [Line Items] | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | 2,962,000 | |
Distribution Declared, per Unit | $ 0.10 | |
Litigation Settlement, Amount Awarded from Other Party | $ 2,500,000 |