Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SOUTH DAKOTA SOYBEAN PROCESSORS LLC | |
Entity Central Index Key | 0001163609 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | SDSP | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,419,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 619,790 | $ 7,197,082 |
Trade accounts receivable | 20,542,620 | 20,550,438 |
Inventories | 51,933,135 | 36,716,014 |
Margin deposits | 1,493,593 | 2,350,852 |
Prepaid expenses | 1,890,134 | 1,492,163 |
Total current assets | 76,479,272 | 68,306,549 |
Property and equipment | 111,613,660 | 110,314,779 |
Less accumulated depreciation | (52,257,354) | (51,246,765) |
Total property and equipment, net | 59,356,306 | 59,068,014 |
Other assets | ||
Investments in related parties | 7,913,087 | 8,009,315 |
Investments in cooperatives | 1,562,098 | 1,552,022 |
Right-of-use lease asset, net | 7,246,916 | 7,918,283 |
Total other assets | 16,722,101 | 17,479,620 |
Total assets | 152,557,679 | 144,854,183 |
Liabilities and Members' Equity | ||
Excess of outstanding checks over bank balance | 8,427,973 | 3,893,179 |
Current maturities of long-term debt | 4,061,964 | 61,964 |
Note payable - seasonal loan | 10,541,986 | 0 |
Current operating lease liabilities | 2,737,560 | 2,714,928 |
Accounts payable | 1,193,704 | 2,325,404 |
Accrued commodity purchases | 22,688,687 | 35,384,390 |
Accrued expenses | 2,689,535 | 3,697,631 |
Accrued interest | 113,227 | 10,673 |
Deferred liabilities - current | 1,282,496 | 792,384 |
Total current liabilities | 53,737,132 | 48,880,553 |
Long-term liabilities | ||
Long-term debt, net of current maturities and unamortized debt issuance costs | 14,593,566 | 593,027 |
Long-term operating lease liabilities | 4,509,356 | 5,203,355 |
Total long-term liabilities | 19,102,922 | 5,796,382 |
Commitments and contingencies (Notes 6, 7, 8, and 13) | ||
Members' equity | ||
Total liabilities and members' equity | 152,557,679 | 144,854,183 |
Capital Unit, Class A | ||
Members' equity | ||
Class A Units, no par value, 30,419,000 units issued and outstanding at March 31, 2019 and December 31, 2018 | $ 79,717,625 | $ 90,177,248 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets [Parenthetical] - Capital Unit, Class A - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, shares issued | 30,419,000 | 30,419,000 |
Common stock, shares outstanding | 30,419,000 | 30,419,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net revenues | $ 91,966,807 | $ 98,626,927 |
Cost of revenues: | ||
Production | 6,872,980 | 6,216,812 |
Brokerage fees | 169,936 | 168,356 |
Total cost of revenues | 86,507,393 | 99,072,071 |
Gross profit (loss) | 5,459,414 | (445,144) |
Operating expenses: | ||
Administration | 1,005,201 | 968,345 |
Operating income (loss) | 4,454,213 | (1,413,489) |
Other income (expense): | ||
Interest expense | (192,559) | (262,972) |
Other non-operating income | 319,367 | 25,659 |
Patronage dividend income | 169,456 | 96,523 |
Total other income (expense) | 296,264 | (140,790) |
Income (loss) before income taxes | 4,750,477 | (1,554,279) |
Income tax benefit (expense) | (600) | (1,960) |
Net income (loss) | $ 4,749,877 | $ (1,556,239) |
Basic and diluted earnings per capital unit: | ||
Net income (in dollars per share) | $ 0.16 | $ (0.05) |
Weighted average number of capital units outstanding for calculation of basic and diluted earnings per capital unit (in shares) | 30,419,000 | 30,419,000 |
Product | ||
Cost of revenues: | ||
Cost of products and services | $ 71,348,550 | $ 83,473,505 |
Freight and rail | ||
Cost of revenues: | ||
Cost of products and services | $ 8,115,927 | $ 9,213,398 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income (loss) | $ 4,749,877 | $ (1,556,239) |
Charges and credits to net income not affecting cash: | ||
Depreciation and amortization | 1,067,591 | 986,169 |
Gain on sales of property and equipment | (6,687) | 0 |
Loss on equity method investment | 96,228 | 128,220 |
Non-cash patronage dividends | (42,364) | (24,131) |
Change in current assets and liabilities | (28,992,848) | (22,333,253) |
Net cash provided by (used for) operating activities | (23,128,203) | (22,799,234) |
Investing activities | ||
Purchase of investments | 0 | (5,000,000) |
Retirement of patronage dividends | 32,288 | 0 |
Proceeds from sales of property and equipment | 64,800 | 0 |
Purchase of property and equipment | (1,413,457) | (888,806) |
Net cash provided by (used for) investing activities | (1,316,369) | (5,888,806) |
Financing activities | ||
Change in excess of outstanding checks over bank balances | 4,534,794 | (2,208,694) |
Net proceeds (payments) from seasonal borrowings | 10,541,986 | 18,358,687 |
Distributions to members | (15,209,500) | (5,075,303) |
Payments for debt issue costs | 0 | (10,500) |
Proceeds from long-term debt | 33,507,717 | 30,269,888 |
Principal payments on long-term debt | (15,507,717) | (12,719,869) |
Net cash provided by (used for) financing activities | 17,867,280 | 28,614,209 |
Net change in cash and cash equivalents | (6,577,292) | (73,831) |
Cash and cash equivalents, beginning of period | 7,197,082 | 683,523 |
Cash and cash equivalents, end of period | 619,790 | 609,692 |
Supplemental disclosures of cash flow information | ||
Interest | 90,005 | 140,364 |
Income taxes | $ 0 | $ 0 |
Condensed Statement of Changes
Condensed Statement of Changes in Members' Equity Statement - USD ($) | Total | Capital Unit, Class A |
Beginning Balances (in shares) at Dec. 31, 2017 | 30,419,000 | |
Ending Balances (in shares) at Mar. 31, 2018 | 30,419,000 | |
Beginning Balances at Dec. 31, 2017 | $ 69,375,206 | |
Net income (loss) | $ (1,556,239) | (1,556,239) |
Distribution to members | (5,075,303) | |
Ending Balances at Mar. 31, 2018 | $ 62,743,664 | |
Beginning Balances (in shares) at Dec. 31, 2018 | 30,419,000 | |
Ending Balances (in shares) at Mar. 31, 2019 | 30,419,000 | |
Beginning Balances at Dec. 31, 2018 | $ 90,177,248 | |
Net income (loss) | 4,749,877 | 4,749,877 |
Distribution to members | $ (15,209,500) | |
Ending Balances at Mar. 31, 2019 | $ 79,717,625 |
Principal Activity and Signific
Principal Activity and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal Activity and Significant Accounting Policies | Principal Activity and Significant Accounting Policies The unaudited condensed financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although South Dakota Soybean Processors, LLC (the “Company”, “LLC”, “we”, “our”, or “us”) believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the accompanying condensed financial statements. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full year due in part to the seasonal nature of some of the Company’s businesses. The balance sheet data as of December 31, 2018 has been derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2018 , included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2019. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue The Company accounts for all of its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues. Payments received in advance to the transfer of goods are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $849,911 and $15,042 as of March 31, 2019 and December 31, 2018 , respectively. The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2019 and 2018 , by product type: 2019 2018 Soybean meal and hulls $ 59,662,803 $ 63,420,843 Soybean oil and oil byproducts 32,304,004 35,206,084 Totals $ 91,966,807 $ 98,626,927 Recent accounting pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 (Leases). The standard requires companies to recognize operating lease assets and liabilities on the balance sheet and disclose key information regarding leasing arrangements. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for all its leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain leases under Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments, if any, would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2018 (the beginning of the earliest period presented): (a) a lease liability of $10.3 million , which represents the present value of the remaining lease payments of $11,000,000 , discounted using the Company's incremental borrowing rate at the time of adoption of the respective leases, and (b) a right-to-use asset of $10.3 million , which represents the total lease liability adjusted for any unamortized initial direct costs. The Company also elected not to recognize and measure any short-term lease, which is a lease that, at the commencement date, has a term of 12 months or less and does not contain an option to purchase the underlying asset that the lessee is reasonably certain to exercise. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which is generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any. The following table presents the aging analysis of trade receivables as of March 31, 2019 and December 31, 2018 : March 31, December 31, Past due: Less than 30 days past due $ 6,135,356 $ 5,362,970 30-60 days past due 246,882 387,670 60-90 days past due 12,340 101,687 Greater than 90 days past due 5,385 84 Total past due 6,399,963 5,852,411 Current 14,142,657 14,698,027 Totals $ 20,542,620 $ 20,550,438 The following table provides information regarding the Company’s allowance for doubtful accounts receivable as of March 31, 2019 and December 31, 2018 : March 31, December 31, Balances, beginning of period $ — $ — Amounts charged (credited) to costs and expenses — — Additions (deductions) — — Balances, end of period $ — $ — In general, cash is applied to the oldest outstanding invoice first, unless payment is for a specified invoice. The Company, on a case by case basis, may charge a late fee of 1.5% per month on past due receivables. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company’s inventories consist of the following at March 31, 2019 and December 31, 2018 : March 31, December 31, Finished goods $ 25,148,521 $ 21,283,354 Raw materials 26,578,516 15,206,526 Supplies & miscellaneous 206,098 226,134 Totals $ 51,933,135 $ 36,716,014 Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. In addition, futures and option contracts are marked to market through cost of revenues, with unrealized gains and losses recorded in the above inventory amounts. Supplies and other inventories are stated at net realizable value. |
Investments in Related Parties
Investments in Related Parties | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Related Parties | Investments in Related Parties The Company accounts for its investment in Prairie AquaTech, LLC using the equity method due to the Company's ability to exercise significant influence based on its board position. The Company recognized losses of $96,228 and $128,220 during the three months ended March 31, 2019 and 2018 , respectively, which is included in other non-operating income (expense). The Company accounts for the investments in Prairie AquaTech Investments, LLC and Prairie AquaTech Manufacturing, LLC using the cost method . In the construction phase of the facility, the Company is acting as the Owner’s representative and providing various construction and management services. However, once the facility is operational in fiscal year 2019, the Company will not be able to exercise significant influence or control over any aspect of operations. Under the cost method, the investments are recorded at cost and the Company will record any dividends as income when received. The results of operations and financial position of the Company's equity method investment in Prairie AquaTech, LLC as of March 31, 2019 and December 31, 2018 and for the three -month periods ended March 31, 2019 and 2018 are summarized below. 2019 2018 Condensed income statement information: Revenues $ 31,780 $ 133,027 Expenses (1,129,382 ) (296,935 ) Other income (expense) 10,828 (214,470 ) Net income (loss) $ (1,086,774 ) $ (378,378 ) March 31, December 31, Condensed balance sheet information: Assets $ 6,227,178 $ 7,264,092 Liabilities 672,496 610,789 Equity 5,554,682 6,653,303 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following is a summary of the Company's property and equipment at March 31, 2019 and December 31, 2018 : 2019 2018 Cost Accumulated Depreciation Net Net Land $ 516,326 $ — $ 516,326 $ 516,326 Land improvements 2,043,236 (518,454 ) 1,524,782 1,556,183 Buildings and improvements 21,526,900 (9,074,000 ) 12,452,900 12,588,664 Machinery and equipment 79,237,946 (41,547,744 ) 37,690,202 38,513,796 Railroad cars 1,238,508 (12,385 ) 1,226,123 1,232,315 Company vehicles 146,754 (97,809 ) 48,945 16,307 Furniture and fixtures 1,526,779 (1,006,962 ) 519,817 543,801 Construction in progress 5,377,211 — 5,377,211 4,100,622 Totals $ 111,613,660 $ (52,257,354 ) $ 59,356,306 $ 59,068,014 Depreciation of property and equipment was $1,067,052 and $984,130 for the three months ended March 31, 2019 and 2018 , respectively. |
Note Payable - Seasonal Loan
Note Payable - Seasonal Loan | 3 Months Ended |
Mar. 31, 2019 | |
Notes Payable Seasonal Loan [Abstract] | |
Note Payable - Seasonal Loan | Note Payable – Seasonal Loan The Company has entered into a revolving credit agreement with CoBank which expires October 1, 2019 . The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company may borrow up to $20 million , and advances on the revolving credit agreement are secured. Interest accrues at a variable rate ( 4.69% at March 31, 2019 ). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $10,541,986 and $0 at March 31, 2019 and December 31, 2018 , respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $9.5 million as of March 31, 2019 . |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following is a summary of the Company's long-term debt at March 31, 2019 and December 31, 2018 : March 31, December 31, Revolving term loan from CoBank, interest at variable rates (4.94% and 4.96% at March 31, 2019 and December 31, 2018, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. $ 18,000,000 $ — Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matures June 1, 2020. 665,222 665,222 Total debt before debt issuance costs 18,665,222 665,222 Less current maturities (4,061,964 ) (61,964 ) Less debt issuance costs, net of amortization of $4,308 and $3,769 as of March 31, 2019 and December 31, 2018, respectively (9,692 ) (10,231 ) Total long-term debt $ 14,593,566 $ 593,027 The Company entered into an agreement as of March 28, 2017 with CoBank to amend and restate its Credit Agreement, which includes both the revolving term and seasonal loans. Under the terms and conditions of the Credit Agreement, CoBank agreed to make advances to the Company for up to $24,000,000 on the revolving term loan with a variable effective interest rate of 4.94% . The available commitment decreases in scheduled periodic increments of $2,000,000 every six months starting March 20, 2018 until maturity on September 20, 2023 . The Company pays a 0.40% annual commitment fee on any funds not borrowed. The debt issuance costs of $14,000 paid by the Company on this amendment will be amortized over the term of loan. The principal balance outstanding on the revolving term loan was $18,000,000 and $0 as of March 31, 2019 and December 31, 2018 , respectively. There were no remaining commitments available to borrow on the revolving term loan as of March 31, 2019 . Under this agreement, the Company is subject to compliance with standard financial covenants and the maintenance of certain financial ratios. The Company was in compliance with all covenants and conditions with CoBank as of March 31, 2019 . Effective March 1, 2013, the State of South Dakota Department of Transportation agreed to loan the Brookings County Regional Railway Authority $964,070 for purposes of making improvements to the railway infrastructure near the Company’s soybean processing facility in Volga, South Dakota. In consideration of this secured loan, the Company agreed to provide a guarantee to the State of South Dakota Department of Transportation for the full amount of the loan, plus interest. This guaranty was converted into a direct obligation of the Company’s on October 16, 2013, when the Company received the entire loan proceeds and assumed responsibility for paying the annual principal and interest payments. The following are minimum principal payments on long-term debt obligations for the twelve-month periods ended March 31 : 2020 $ 4,061,964 2021 4,603,258 2022 4,000,000 2023 4,000,000 2024 2,000,000 Total $ 18,665,222 |
Operating Leases (Notes)
Operating Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company has several operating leases for railcars. These leases have terms ranging from 3 - 18 years and do not have renewal terms provided. The leases require the Company to maintain the condition of the railcars, restrict the use of the railcars to specified products, such as soybean meal, hulls or oil, limit usage to the continental United States, Canada or Mexico, require approval to sublease to other entities, and require the Company's submission of its financial statements. Lease expense for all railcars was $779,119 and $794,317 for the three months ended March 31, 2019 and 2018 , respectively. The following is a schedule of the Company's operating leases for railcars as of March 31, 2019 : Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment Wells Fargo Rail 112 8/1/2017 7/31/2022 $ 52,557 Wells Fargo Rail 107 1/1/2018 12/31/2022 35,845 Wells Fargo Rail 7 1/1/2004 12/31/2021 2,926 Wells Fargo Rail 15 1/1/2004 12/31/2021 5,850 Wells Fargo Rail 8 1/1/2015 12/31/2021 3,600 Trinity Capital 88 8/1/2002 7/31/2020 33,704 Trinity Capital 29 12/1/2015 11/30/2020 28,536 Trinity Capital 20 10/1/2015 9/30/2020 13,600 Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment Midwest Railcar Corporation 64 1/1/2015 12/31/2021 27,200 American Railcar Leasing 30 7/1/2015 6/30/2021 30,780 Andersons Railcar Leasing Co. 10 7/1/2018 6/30/2023 5,000 GATX Corporation 15 7/1/2017 6/30/2020 4,500 505 $ 244,098 The Company also has a number of other operating leases for machinery and equipment. These leases have terms ranging from 3 - 7 years; however, most of these leases have automatic renewal terms. These leases require monthly payments of $2,853 . Rental expense under these other operating leases was $7,923 and $7,423 for the three -month periods ended March 31, 2019 and 2018 , respectively. Operating leases are included in right-to-use lease assets, current operating lease liabilities, and long-term lease liabilities on the condensed balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company's secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. Lease expense for these operating leases is recognized on a straight-line basis over the lease terms. The components of lease costs recognized within our condensed statements of operations for the three -month periods ended March 31, 2019 and 2018 were as follows: 2019 2018 Cost of revenues - Freight and rail $ 779,119 $ 794,317 Cost of revenues - Production expense 4,919 4,629 Administration expenses 3,004 2,794 Total operating lease costs $ 787,042 $ 801,740 The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2019 : Railcars Other Total Twelve-month periods ended March 31: 2020 $ 2,876,620 $ 22,937 $ 2,899,557 2021 2,423,301 20,641 2,443,942 2022 1,569,349 18,150 1,587,499 2023 645,391 18,150 663,541 2024 15,000 15,069 30,069 Thereafter — 9,652 9,652 Total lease payments 7,529,661 104,599 7,634,260 Less amount of lease payments representing interest (375,068 ) (12,276 ) (387,344 ) Total present value of lease payments $ 7,154,593 $ 92,323 $ 7,246,916 |
Member Distribution
Member Distribution | 3 Months Ended |
Mar. 31, 2019 | |
Member Distribution [Abstract] | |
Member Distribution | Member Distribution On February 5, 2019 , the Company’s Board of Managers approved a cash distribution of approximately $15.2 million , or 50.0¢ per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 7, 2019 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In the ordinary course of business, the Company enters into contractual arrangements as a means of managing exposure to changes in commodity prices and, occasionally, foreign exchange and interest rates. The Company’s derivative instruments primarily consist of commodity futures, options and forward contracts, and interest rate swaps, caps and floors. Although these contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. These contracts are recorded on the Company’s condensed balance sheets at fair value as discussed in Note 11, Fair Value. As of March 31, 2019 and December 31, 2018 , the value of the Company’s open futures, options and forward contracts was approximately $(82,896) and $802,770 , respectively. As of March 31, 2019 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 2,931,472 $ 2,791,590 Foreign exchange contracts Current Assets 48,421 41,665 Interest rate caps and floors Current Liabilities — 229,534 Totals $ 2,979,893 $ 3,062,789 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,696,540 $ 2,722,830 Foreign exchange contracts Current Assets 129,258 100,730 Interest rate caps and floors Current Liabilities — 199,468 Totals $ 3,825,798 $ 3,023,028 During the three -month periods ended March 31, 2019 and 2018 , net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows: Net Gain (Loss) Recognized Three Months Ended March 31, 2019 2018 Derivatives not designated as hedging instruments: Commodity contracts $ 741,952 $ (4,874,472 ) Foreign exchange contracts 36,482 (11,385 ) Interest rate swaps, caps and floors (30,066 ) 148,495 Totals $ 748,368 $ (4,737,362 ) The Company recorded gains (losses) of $748,368 and $(4,737,362) in cost of revenue related to its commodity derivative instruments for the three -month periods ended March 31, 2019 and 2018 , respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, this guidance establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The three levels of hierarchy and examples are as follows: • Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange and commodity derivative contracts listed on the Chicago Board of Trade (“CBOT”). • Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs, such as commodity prices using forward future prices. • Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2019 and December 31, 2018 : Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 139,882 $ 51,383,102 $ — $ 51,522,984 Margin deposits (deficits) $ 1,493,593 $ — $ — $ 1,493,593 Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 973,710 $ 35,338,531 $ — $ 36,312,241 Margin deposits $ 2,350,852 $ — $ — $ 2,350,852 In accordance with ASC 825, Financial Instruments , the Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward future contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area. The Company considers the carrying amount of significant classes of financial instruments on the balance sheets, including cash, accounts receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value. The interest rates on the long-term debt are similar to rates the Company would be able to obtain currently in the market. The Company has patronage investments in other cooperatives and common and preferred stock holdings in privately held entities. There is no market for their patronage credits or the entity’s common and preferred holdings, and it is impracticable to estimate fair value of the Company’s investments. These investments are carried on the balance sheet at original cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the three months ended March 31, 2019 and 2018 , the Company sold soybean products to Prairie AquaTech, LLC totaling $108,057 and $22,606 , respectively. As of March 31, 2019 and December 31, 2018 , Prairie AquaTech, LLC owed the Company $61,974 and $18,540 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies As of March 31, 2019 , the Company had unpaid commitments of approximately $633,000 for construction and acquisition of property and equipment, all of which is expected to be incurred by December 2019. From time to time in the ordinary course of our business, the Company may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual dispute. The Company carries insurance that provides protection against general commercial liability claims, claims against our directors, officer and employees, business interruption, automobile liability, and workers' compensation. The Company is not currently involved in any material legal proceedings and are not aware of any potential claims. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event The Company evaluated all of its activities and concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements. |
Principal Activity and Signif_2
Principal Activity and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue, Policy | Revenue The Company accounts for all of its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues. Payments received in advance to the transfer of goods are included in "Deferred liabilities - current" on the Company's condensed balance sheets. |
Recent Accounting Pronouncements | Recent accounting pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 (Leases). The standard requires companies to recognize operating lease assets and liabilities on the balance sheet and disclose key information regarding leasing arrangements. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for all its leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain leases under Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments, if any, would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2018 (the beginning of the earliest period presented): (a) a lease liability of $10.3 million , which represents the present value of the remaining lease payments of $11,000,000 , discounted using the Company's incremental borrowing rate at the time of adoption of the respective leases, and (b) a right-to-use asset of $10.3 million , which represents the total lease liability adjusted for any unamortized initial direct costs. The Company also elected not to recognize and measure any short-term lease, which is a lease that, at the commencement date, has a term of 12 months or less and does not contain an option to purchase the underlying asset that the lessee is reasonably certain to exercise. |
Principal Activity and Signif_3
Principal Activity and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2019 and 2018 , by product type: 2019 2018 Soybean meal and hulls $ 59,662,803 $ 63,420,843 Soybean oil and oil byproducts 32,304,004 35,206,084 Totals $ 91,966,807 $ 98,626,927 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table presents the aging analysis of trade receivables as of March 31, 2019 and December 31, 2018 : March 31, December 31, Past due: Less than 30 days past due $ 6,135,356 $ 5,362,970 30-60 days past due 246,882 387,670 60-90 days past due 12,340 101,687 Greater than 90 days past due 5,385 84 Total past due 6,399,963 5,852,411 Current 14,142,657 14,698,027 Totals $ 20,542,620 $ 20,550,438 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table provides information regarding the Company’s allowance for doubtful accounts receivable as of March 31, 2019 and December 31, 2018 : March 31, December 31, Balances, beginning of period $ — $ — Amounts charged (credited) to costs and expenses — — Additions (deductions) — — Balances, end of period $ — $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The Company’s inventories consist of the following at March 31, 2019 and December 31, 2018 : March 31, December 31, Finished goods $ 25,148,521 $ 21,283,354 Raw materials 26,578,516 15,206,526 Supplies & miscellaneous 206,098 226,134 Totals $ 51,933,135 $ 36,716,014 |
Investments in Related Parties
Investments in Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | of the Company's equity method investment in Prairie AquaTech, LLC as of March 31, 2019 and December 31, 2018 and for the three -month periods ended March 31, 2019 and 2018 are summarized below. 2019 2018 Condensed income statement information: Revenues $ 31,780 $ 133,027 Expenses (1,129,382 ) (296,935 ) Other income (expense) 10,828 (214,470 ) Net income (loss) $ (1,086,774 ) $ (378,378 ) March 31, December 31, Condensed balance sheet information: Assets $ 6,227,178 $ 7,264,092 Liabilities 672,496 610,789 Equity 5,554,682 6,653,303 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of the Company's property and equipment at March 31, 2019 and December 31, 2018 : 2019 2018 Cost Accumulated Depreciation Net Net Land $ 516,326 $ — $ 516,326 $ 516,326 Land improvements 2,043,236 (518,454 ) 1,524,782 1,556,183 Buildings and improvements 21,526,900 (9,074,000 ) 12,452,900 12,588,664 Machinery and equipment 79,237,946 (41,547,744 ) 37,690,202 38,513,796 Railroad cars 1,238,508 (12,385 ) 1,226,123 1,232,315 Company vehicles 146,754 (97,809 ) 48,945 16,307 Furniture and fixtures 1,526,779 (1,006,962 ) 519,817 543,801 Construction in progress 5,377,211 — 5,377,211 4,100,622 Totals $ 111,613,660 $ (52,257,354 ) $ 59,356,306 $ 59,068,014 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of the Company's long-term debt at March 31, 2019 and December 31, 2018 : March 31, December 31, Revolving term loan from CoBank, interest at variable rates (4.94% and 4.96% at March 31, 2019 and December 31, 2018, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. $ 18,000,000 $ — Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matures June 1, 2020. 665,222 665,222 Total debt before debt issuance costs 18,665,222 665,222 Less current maturities (4,061,964 ) (61,964 ) Less debt issuance costs, net of amortization of $4,308 and $3,769 as of March 31, 2019 and December 31, 2018, respectively (9,692 ) (10,231 ) Total long-term debt $ 14,593,566 $ 593,027 |
Schedule of Maturities of Long-term Debt | The following are minimum principal payments on long-term debt obligations for the twelve-month periods ended March 31 : 2020 $ 4,061,964 2021 4,603,258 2022 4,000,000 2023 4,000,000 2024 2,000,000 Total $ 18,665,222 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure | The following is a schedule of the Company's operating leases for railcars as of March 31, 2019 : Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment Wells Fargo Rail 112 8/1/2017 7/31/2022 $ 52,557 Wells Fargo Rail 107 1/1/2018 12/31/2022 35,845 Wells Fargo Rail 7 1/1/2004 12/31/2021 2,926 Wells Fargo Rail 15 1/1/2004 12/31/2021 5,850 Wells Fargo Rail 8 1/1/2015 12/31/2021 3,600 Trinity Capital 88 8/1/2002 7/31/2020 33,704 Trinity Capital 29 12/1/2015 11/30/2020 28,536 Trinity Capital 20 10/1/2015 9/30/2020 13,600 Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment Midwest Railcar Corporation 64 1/1/2015 12/31/2021 27,200 American Railcar Leasing 30 7/1/2015 6/30/2021 30,780 Andersons Railcar Leasing Co. 10 7/1/2018 6/30/2023 5,000 GATX Corporation 15 7/1/2017 6/30/2020 4,500 505 $ 244,098 |
Lease, Cost | The components of lease costs recognized within our condensed statements of operations for the three -month periods ended March 31, 2019 and 2018 were as follows: 2019 2018 Cost of revenues - Freight and rail $ 779,119 $ 794,317 Cost of revenues - Production expense 4,919 4,629 Administration expenses 3,004 2,794 Total operating lease costs $ 787,042 $ 801,740 |
Lessee, Operating Lease, Liability, Maturity | The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2019 : Railcars Other Total Twelve-month periods ended March 31: 2020 $ 2,876,620 $ 22,937 $ 2,899,557 2021 2,423,301 20,641 2,443,942 2022 1,569,349 18,150 1,587,499 2023 645,391 18,150 663,541 2024 15,000 15,069 30,069 Thereafter — 9,652 9,652 Total lease payments 7,529,661 104,599 7,634,260 Less amount of lease payments representing interest (375,068 ) (12,276 ) (387,344 ) Total present value of lease payments $ 7,154,593 $ 92,323 $ 7,246,916 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivatives Assets and Liabilities Not Designated As Hedging Instruments | As of March 31, 2019 and December 31, 2018 , the value of the Company’s open futures, options and forward contracts was approximately $(82,896) and $802,770 , respectively. As of March 31, 2019 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 2,931,472 $ 2,791,590 Foreign exchange contracts Current Assets 48,421 41,665 Interest rate caps and floors Current Liabilities — 229,534 Totals $ 2,979,893 $ 3,062,789 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,696,540 $ 2,722,830 Foreign exchange contracts Current Assets 129,258 100,730 Interest rate caps and floors Current Liabilities — 199,468 Totals $ 3,825,798 $ 3,023,028 |
Schedule Of Derivative Instruments, Net Realized and Unrealized Gain (Loss) On Derivatives Not Designated As Hedging Instruments | During the three -month periods ended March 31, 2019 and 2018 , net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows: Net Gain (Loss) Recognized Three Months Ended March 31, 2019 2018 Derivatives not designated as hedging instruments: Commodity contracts $ 741,952 $ (4,874,472 ) Foreign exchange contracts 36,482 (11,385 ) Interest rate swaps, caps and floors (30,066 ) 148,495 Totals $ 748,368 $ (4,737,362 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2019 and December 31, 2018 : Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 139,882 $ 51,383,102 $ — $ 51,522,984 Margin deposits (deficits) $ 1,493,593 $ — $ — $ 1,493,593 Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 973,710 $ 35,338,531 $ — $ 36,312,241 Margin deposits $ 2,350,852 $ — $ — $ 2,350,852 |
Principal Activity and Signif_4
Principal Activity and Significant Accounting Policies - Additional Information (Details) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred revenue | $ 849,911 | $ 15,042 | |
Long-term liabilities | 19,102,922 | 5,796,382 | |
Present value of remaining lease payments | 7,634,260 | ||
Right-of-use asset | $ 7,246,916 | $ 7,918,283 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term liabilities | $ 10,300,000 | ||
Present value of remaining lease payments | 11,000,000 | ||
Right-of-use asset | $ 10,300,000 |
Principal Activity and Signif_5
Principal Activity and Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 91,966,807 | $ 98,626,927 |
Soybean meal and hulls | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 59,662,803 | 63,420,843 |
Soybean oil and oil byproducts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 32,304,004 | $ 35,206,084 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 6,399,963 | $ 5,852,411 |
Current | 14,142,657 | 14,698,027 |
Accounts Receivable, Gross, Current | 20,542,620 | 20,550,438 |
Less than 30 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6,135,356 | 5,362,970 |
30-60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 246,882 | 387,670 |
60-90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 12,340 | 101,687 |
Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 5,385 | $ 84 |
Accounts Receivable (Details 1)
Accounts Receivable (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Balances, beginning of period | $ 0 | $ 0 |
Amounts charged (credited) to costs and expenses | 0 | 0 |
Additions (deductions) | 0 | 0 |
Balances, end of period | $ 0 | $ 0 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Percentage Of Late Fee On Past Due Receivables | 1.50% |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 25,148,521 | $ 21,283,354 |
Raw materials | 26,578,516 | 15,206,526 |
Supplies & miscellaneous | 206,098 | 226,134 |
Totals | $ 51,933,135 | $ 36,716,014 |
Investments in Related Partie_2
Investments in Related Parties (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in related parties | $ 7,913,087 | $ 8,009,315 | |
Loss on equity method investment | 96,228 | $ 128,220 | |
Prairie AquaTech, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Loss on equity method investment | $ 96,228 | $ 128,220 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Cost | $ 111,613,660 | $ 110,314,779 |
Accumulated Depreciation | (52,257,354) | (51,246,765) |
Total property and equipment, net | 59,356,306 | 59,068,014 |
Land | ||
Cost | 516,326 | |
Accumulated Depreciation | 0 | |
Total property and equipment, net | 516,326 | 516,326 |
Land improvements | ||
Cost | 2,043,236 | |
Accumulated Depreciation | (518,454) | |
Total property and equipment, net | 1,524,782 | 1,556,183 |
Buildings and improvements | ||
Cost | 21,526,900 | |
Accumulated Depreciation | (9,074,000) | |
Total property and equipment, net | 12,452,900 | 12,588,664 |
Machinery and equipment | ||
Cost | 79,237,946 | |
Accumulated Depreciation | (41,547,744) | |
Total property and equipment, net | 37,690,202 | 38,513,796 |
Railroad Transportation Equipment [Member] | ||
Cost | 1,238,508 | |
Accumulated Depreciation | (12,385) | |
Total property and equipment, net | 1,226,123 | 1,232,315 |
Company vehicles | ||
Cost | 146,754 | |
Accumulated Depreciation | (97,809) | |
Total property and equipment, net | 48,945 | 16,307 |
Furniture and fixtures | ||
Cost | 1,526,779 | |
Accumulated Depreciation | (1,006,962) | |
Total property and equipment, net | 519,817 | 543,801 |
Construction in progress | ||
Cost | 5,377,211 | |
Accumulated Depreciation | 0 | |
Total property and equipment, net | $ 5,377,211 | $ 4,100,622 |
Investments in Related Partie_3
Investments in Related Parties - Summarized financial information (Details) - Prairie AquaTech, LLC - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 31,780 | $ 133,027 | |
Expenses | (1,129,382) | (296,935) | |
Other income (expense) | 10,828 | (214,470) | |
Net income (loss) | (1,086,774) | $ (378,378) | |
Assets | 6,227,178 | $ 7,264,092 | |
Liabilities | 672,496 | 610,789 | |
Equity | $ 5,554,682 | $ 6,653,303 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,067,052 | $ 984,130 |
Note Payable - Seasonal Loan (D
Note Payable - Seasonal Loan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Oct. 1, 2019 | |
Advances outstanding | $ 18,000,000 | $ 0 |
Seasonal Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 4.69% | |
Advances outstanding | $ 10,541,986 | $ 0 |
Remaining available funds to borrow | $ 9,458,014 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Mar. 01, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Revolving term loan from CoBank, interest at variable rates (2.89% and 2.88% at March 31, 2016 and December 31, 2015, respectively), secured by substantially all property and equipment. Loan matures September 20, 2020. | $ 18,000,000 | $ 0 | ||
Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matures June 1, 2020. | 665,222 | 665,222 | ||
Long-term Debt | 18,665,222 | 665,222 | ||
Less current maturities | (4,061,964) | (61,964) | ||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | (9,692) | (10,231) | ||
Total long-term debt | 14,593,566 | $ 593,027 | ||
Periodic Payment, Principal | 2,000,000 | |||
Debt Issuance Cost (Deprecated 2016-01-31) | 0 | $ 10,500 | ||
Long Term Debt For Infrastructure Improvements | $ 964,070 | |||
Revolving Term Loan | ||||
Debt Instrument [Line Items] | ||||
Revolving term loan from CoBank, interest at variable rates (2.89% and 2.88% at March 31, 2016 and December 31, 2015, respectively), secured by substantially all property and equipment. Loan matures September 20, 2020. | $ 24,000,000 | |||
Variable effective interest rate | 4.94% | |||
Maturity Date | Sep. 20, 2023 | |||
Debt Issuance Cost (Deprecated 2016-01-31) | $ 14,000 | |||
Remaining Borrowing Capacity | $ 0 |
Long-Term Debt (Details 1)
Long-Term Debt (Details 1) | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 4,061,964 |
2021 | 4,603,258 |
2022 | 4,000,000 |
2023 | 4,000,000 |
2024 | 2,000,000 |
Long-term Debt | $ 18,665,222 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |
Revolving Term Loan | ||
Revolving term loan from CoBank, interest rates | 4.94% | 4.96% |
Notes Payable, Other Payables | ||
Debt installments | $ 75,500 | |
Interest Rate | 2.00% |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, required monthly payments | $ 2,853 | |
Operating lease expense | $ 779,119 | $ 794,317 |
Railcars | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 3 years | |
Railcars | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 18 days | |
Machinery and equipment | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 7,923 | $ 7,423 |
Machinery and equipment | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 3 days | |
Machinery and equipment | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 7 days |
Operating Leases - Schedule of
Operating Leases - Schedule of Operating Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)railcar | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 505 |
Monthly Payment | $ | $ 244,098 |
Wells Fargo Rail, Maturity Date July 31, 2022 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 112 |
Monthly Payment | $ | $ 52,557 |
Wells Fargo Rail, Maturity Date Dec 31, 2022 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 107 |
Monthly Payment | $ | $ 35,845 |
Wells Fargo Rail, Maturity Date Dec, 31, 2011 With Monthly Payment $2926 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 7 |
Monthly Payment | $ | $ 2,926 |
Wells Fargo Rail, Maturity Date Dec 31, 2021 With Monthly Payment $5850 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 15 |
Monthly Payment | $ | $ 5,850 |
Wells Fargo Rail, Maturity Date Dec 31, 2021 With Monthly Payment $3600 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 8 |
Monthly Payment | $ | $ 3,600 |
Trinity Capital, Maturity Date July 31, 2020 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 88 |
Monthly Payment | $ | $ 33,704 |
Trinity Capital, Maturity Date Nov 30, 2020 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 29 |
Monthly Payment | $ | $ 28,536 |
Trinity Capital, Maturity Date Sep 30, 2020 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 20 |
Monthly Payment | $ | $ 13,600 |
Midwest Railcar Corporation, Maturity Date Dec 31, 2021 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 64 |
Monthly Payment | $ | $ 27,200 |
American Railcar Leasing, Maturity Date Jun 30, 2021 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 30 |
Monthly Payment | $ | $ 30,780 |
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2023 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 10 |
Monthly Payment | $ | $ 5,000 |
GATX Corporation, Maturity Date Jun 30, 2020 [Member] | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 15 |
Monthly Payment | $ | $ 4,500 |
Operating Leases - Components o
Operating Leases - Components of Operating Lease Costs (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 787,042 | $ 801,740 |
Cost of revenues - Freight and rail | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 779,119 | 794,317 |
Cost of revenues - Production expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 4,919 | 4,629 |
Administration expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 3,004 | $ 2,794 |
Operating Leases - Maturity Ana
Operating Leases - Maturity Analysis of Undiscounted Cash Flows of Operating Lease Liabilities (Details) | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended March 31, 2020 | $ 2,899,557 |
Twelve-month periods ended March 31, 2021 | 2,443,942 |
Twelve-month periods ended March 31, 2022 | 1,587,499 |
Twelve-month periods ended March 31, 2023 | 663,541 |
Twelve-month periods ended March 31, 2024 | 30,069 |
Thereafter | 9,652 |
Total lease payments | 7,634,260 |
Less amount of lease payments representing interest | (387,344) |
Total present value of lease payments | 7,246,916 |
Railcars | |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended March 31, 2020 | 2,876,620 |
Twelve-month periods ended March 31, 2021 | 2,423,301 |
Twelve-month periods ended March 31, 2022 | 1,569,349 |
Twelve-month periods ended March 31, 2023 | 645,391 |
Twelve-month periods ended March 31, 2024 | 15,000 |
Thereafter | 0 |
Total lease payments | 7,529,661 |
Less amount of lease payments representing interest | (375,068) |
Total present value of lease payments | 7,154,593 |
Other | |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended March 31, 2020 | 22,937 |
Twelve-month periods ended March 31, 2021 | 20,641 |
Twelve-month periods ended March 31, 2022 | 18,150 |
Twelve-month periods ended March 31, 2023 | 18,150 |
Twelve-month periods ended March 31, 2024 | 15,069 |
Thereafter | 9,652 |
Total lease payments | 104,599 |
Less amount of lease payments representing interest | (12,276) |
Total present value of lease payments | $ 92,323 |
Member Distribution (Details Te
Member Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Feb. 07, 2019 | Mar. 31, 2019 |
Member Distribution [Abstract] | ||
Declaration Date | Feb. 5, 2019 | |
Cash Distributions Paid | $ 15.2 | |
Distributions Paid, Per Unit (USD per share) | $ 0.500 | |
Distribution Date | Feb. 7, 2019 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivatives not designated as hedging instruments: | ||
Asset Derivatives | $ 2,979,893 | $ 3,825,798 |
Liability Derivatives | $ 3,062,789 | $ 3,023,028 |
Commodity Contract | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Assets | Current Assets |
Asset Derivatives | $ 2,931,472 | $ 3,696,540 |
Liability Derivatives | $ 2,791,590 | $ 2,722,830 |
Foreign Exchange Contract | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Assets | Current Assets |
Asset Derivatives | $ 48,421 | $ 129,258 |
Liability Derivatives | $ 41,665 | $ 100,730 |
Interest rate caps and floors | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Liabilities | Current Liabilities |
Asset Derivatives | $ 0 | $ 0 |
Liability Derivatives | $ 229,534 | $ 199,468 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | $ 748,368 | $ (4,737,362) |
Commodity Contract | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | 741,952 | (4,874,472) |
Foreign Exchange Contract | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | 36,482 | (11,385) |
Interest rate caps and floors | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | $ (30,066) | $ 148,495 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ (82,896) | $ 802,770 | |
Net Gain (Loss) Recognized on Derivative Activities | $ 748,368 | $ (4,737,362) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Inventory | $ 51,522,984 | $ 36,312,241 |
Margin deposits | 1,493,593 | 2,350,852 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Inventory | 139,882 | 973,710 |
Margin deposits | 1,493,593 | 2,350,852 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Inventory | 51,383,102 | 35,338,531 |
Margin deposits | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Inventory | 0 | 0 |
Margin deposits | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - Prairie AquaTech, LLC - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 108,057 | $ 22,606 | |
Due from Related Parties | $ 61,974 | $ 18,540 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unpaid commitments for construction and acquisition of property and equipment | $ 633 |