Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
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 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,419,000 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 359,863 | $ 624,681 |
Trade accounts receivable | 22,213,649 | 24,420,557 |
Inventories | 58,983,957 | 44,470,052 |
Margin deposits | 6,014,327 | 6,772,160 |
Prepaid expenses | 1,336,886 | 1,884,742 |
Total current assets | 88,908,682 | 78,172,192 |
Property and equipment | 120,211,415 | 118,363,393 |
Less accumulated depreciation | (55,016,671) | (53,846,189) |
Total property and equipment, net | 65,194,744 | 64,517,204 |
Other assets | ||
Investments in related parties | 8,278,056 | 7,873,727 |
Investments in cooperatives | 1,539,293 | 1,562,098 |
Right-of-use lease asset, net | 8,556,570 | 5,979,771 |
Total other assets | 18,373,919 | 15,415,596 |
Total assets | 172,477,345 | 158,104,992 |
Liabilities and Members' Equity | ||
Excess of outstanding checks over bank balance | 5,549,105 | 8,164,752 |
Current maturities of long-term debt | 4,603,342 | 4,603,342 |
Note payable - seasonal loan | 19,715,804 | 1,743,029 |
Current operating lease liabilities | 5,746,084 | 2,663,967 |
Accounts payable | 641,640 | 4,904,963 |
Accrued commodity purchases | 29,577,348 | 31,346,533 |
Accrued expenses | 3,278,171 | 2,900,118 |
Accrued interest | 123,869 | 74,770 |
Deferred liabilities - current | 970,344 | 448,458 |
Total current liabilities | 70,205,707 | 56,849,932 |
Long-term liabilities | ||
Long-term debt, net of current maturities and unamortized debt issuance costs | 19,982,916 | 11,991,923 |
Long-term operating lease liabilities | 2,810,486 | 3,315,804 |
Total long-term liabilities | 22,793,402 | 15,307,727 |
Commitments and contingencies (Notes 6, 7, 8, and 13) | ||
Members' equity | ||
Total liabilities and members' equity | 172,477,345 | 158,104,992 |
Capital Unit, Class A | ||
Members' equity | ||
Class A Units, no par value, 30,419,000 units issued and outstanding at March 31, 2020 and December 31, 2019 | $ 79,478,236 | $ 85,947,333 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets [Parenthetical] - Capital Unit, Class A - shares | Mar. 31, 2020 | Dec. 31, 2019 |
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, 2020 | Mar. 31, 2019 | |
Net revenues | $ 98,723,412 | $ 91,966,807 |
Cost of revenues: | ||
Production | 7,423,370 | 6,872,980 |
Brokerage fees | 163,238 | 169,936 |
Total cost of revenues | 96,998,949 | 86,507,393 |
Gross profit (loss) | 1,724,463 | 5,459,414 |
Operating expenses: | ||
Administration | 1,024,729 | 1,005,201 |
Operating income (loss) | 699,734 | 4,454,213 |
Other income (expense): | ||
Interest expense | (349,987) | (192,559) |
Other non-operating income (expense) | (322,217) | 319,367 |
Patronage dividend income | 195,553 | 169,456 |
Total other income (expense) | (476,651) | 296,264 |
Income (loss) before income taxes | 223,083 | 4,750,477 |
Income tax benefit (expense) | 0 | (600) |
Net income (loss) | $ 223,083 | $ 4,749,877 |
Basic and diluted earnings per capital unit: | ||
Net income (in dollars per share) | $ 0.01 | $ 0.16 |
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 | $ 80,200,506 | $ 71,348,550 |
Freight and rail | ||
Cost of revenues: | ||
Cost of products and services | $ 9,211,835 | $ 8,115,927 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income (loss) | $ 223,083 | $ 4,749,877 |
Charges and credits to net income not affecting cash: | ||
Depreciation and amortization | 1,188,309 | 1,067,591 |
Net (gain) loss recognized on derivative activities | (5,138,750) | (748,368) |
Gain on sales of property and equipment | 0 | (6,687) |
Loss on equity method investment | 0 | 96,228 |
Non-cash patronage dividends | (43,405) | (42,364) |
Change in current assets and liabilities | (10,946,028) | (28,244,480) |
Net cash provided by (used for) operating activities | (14,716,791) | (23,128,203) |
Investing activities | ||
Purchase of investments | (404,329) | 0 |
Retirement of patronage dividends | 66,210 | 32,288 |
Proceeds from sales of property and equipment | 0 | 64,800 |
Purchase of property and equipment | (1,864,856) | (1,413,457) |
Net cash provided by (used for) investing activities | (2,202,975) | (1,316,369) |
Financing activities | ||
Change in excess of outstanding checks over bank balances | (2,615,647) | 4,534,794 |
Net proceeds (payments) from seasonal borrowings | 17,972,775 | 10,541,986 |
Distributions to members | (6,692,180) | (15,209,500) |
Payments for debt issue costs | (10,000) | 0 |
Proceeds from long-term debt | 10,000,000 | 33,507,717 |
Principal payments on long-term debt | (2,000,000) | (15,507,717) |
Net cash provided by (used for) financing activities | 16,654,948 | 17,867,280 |
Net change in cash and cash equivalents | (264,818) | (6,577,292) |
Cash and cash equivalents, beginning of period | 624,681 | 7,197,082 |
Cash and cash equivalents, end of period | 359,863 | 619,790 |
Supplemental disclosures of cash flow information | ||
Interest | 300,888 | 90,005 |
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, 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 | |
Beginning Balances (in shares) at Dec. 31, 2019 | 30,419,000 | |
Ending Balances (in shares) at Mar. 31, 2020 | 30,419,000 | |
Beginning Balances at Dec. 31, 2019 | $ 85,947,333 | |
Net income (loss) | 223,083 | 223,083 |
Distribution to members | $ (6,692,180) | |
Ending Balances at Mar. 31, 2020 | $ 79,478,236 |
Principal Activity and Signific
Principal Activity and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 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, 2019 , included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2020. 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, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $811,244 and $313,347 as of March 31, 2020 and December 31, 2019 , respectively. Of the $313,347 balance as of December 31, 2019 , contract liabilities recognized as revenues were $224,655 for the three months ended March 31, 2020 . During the three months ended March 31, 2019 , the Company recognized $15,042 of contract liabilities as revenues. The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2020 and 2019 , by product type: 2020 2019 Soybean meal and hulls $ 62,692,880 $ 59,662,803 Soybean oil and oil byproducts 36,030,532 32,304,004 Totals $ 98,723,412 $ 91,966,807 Recent accounting pronouncements Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 : March 31, December 31, Past due: Less than 30 days past due $ 4,231,734 $ 4,306,064 30-60 days past due 297,961 341,956 60-90 days past due 19,314 10,302 Greater than 90 days past due 23,777 14,162 Total past due 4,572,786 4,672,484 Current 17,640,863 19,748,073 Totals $ 22,213,649 $ 24,420,557 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, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company’s inventories consist of the following at March 31, 2020 and December 31, 2019 : March 31, December 31, Finished goods $ 34,784,325 $ 26,559,194 Raw materials 23,872,019 17,641,335 Supplies & miscellaneous 327,613 269,523 Totals $ 58,983,957 $ 44,470,052 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. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 : 2020 2019 Cost Accumulated Depreciation Net Net Land $ 516,326 $ — $ 516,326 $ 516,326 Land improvements 2,158,383 (646,615 ) 1,511,768 1,545,088 Buildings and improvements 22,369,519 (9,627,132 ) 12,742,387 12,807,844 Machinery and equipment 84,278,193 (43,667,603 ) 40,610,590 41,480,121 Railroad cars 1,238,508 (37,155 ) 1,201,353 1,207,545 Company vehicles 146,754 (115,026 ) 31,728 36,032 Furniture and fixtures 1,363,744 (923,140 ) 440,604 459,153 Construction in progress 8,139,988 — 8,139,988 6,465,095 Totals $ 120,211,415 $ (55,016,671 ) $ 65,194,744 $ 64,517,204 Depreciation of property and equipment was $1,187,316 and $1,067,052 for the three months ended March 31, 2020 and 2019 , respectively. |
Investments in Related Parties
Investments in Related Parties | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Related Parties | Investments in Related Parties The Company accounts for the investments in Prairie AquaTech, LLC, Prairie AquaTech Investments, LLC and Prairie AquaTech Manufacturing, LLC using the fair value method in ASU No. 2016-01 . The Company has elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at their cost less any impairment plus or minus any observable price changes in orderly transactions. Prior to October 2019, the Company accounted 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 $0 and $96,228 during the three months ended March 31, 2020 and 2019 , respectively, which is included in other non-operating income (expense). In October 2019, the Company ceased the accounting for its investment in Prairie AquaTech, LLC under the equity method, and began accounting for the investment at fair value as a result of its decreased ability to exercise significant influence due to an increased quantity of board positions. On March 27, 2020, the Company invested in Prairie AquaTech Manufacturing, LLC another $404,329 in cash. The Company also agreed to invest into Prairie AquaTech Manufacturing, LLC an additional $500,000 of soybean meal to be used in the entity's operations. |
Note Payable - Seasonal Loan
Note Payable - Seasonal Loan | 3 Months Ended |
Mar. 31, 2020 | |
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 December 1, 2020 . The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company may borrow up to $28 million , and advances on the revolving credit agreement are secured. Interest accrues at a variable rate ( 3.19% at March 31, 2020 ). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $19,715,804 and $1,743,029 at March 31, 2020 and December 31, 2019 , respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $8.3 million as of March 31, 2020 . |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following is a summary of the Company's long-term debt at March 31, 2020 and December 31, 2019 : March 31, December 31, Revolving term loan from CoBank, interest at variable rates (3.44% and 4.24% at March 31, 2020 and December 31, 2019, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. $ 24,000,000 $ 16,000,000 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. 603,342 603,342 Total debt before debt issuance costs 24,603,342 16,603,342 Less current maturities (4,603,342 ) (4,603,342 ) Less debt issuance costs, net of amortization of $6,916 and $5,923 as of March 31, 2020 and December 31, 2019, respectively (17,084 ) (8,077 ) Total long-term debt $ 19,982,916 $ 11,991,923 The Company entered into an agreement as of January 28, 2020 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 $26,000,000 on the revolving term loan with a variable effective interest rate of 3.44% . The amount available for borrowing on the revolving term loan, however, will decrease by $2,000,000 every six months beginning on March 20, 2020, with a scheduled balloon payment for the remaining balance on the loan's maturity date of September 20, 2023 . The Company pays a 0.40% annual commitment fee on any funds not borrowed. The debt issuance costs of $24,000 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 $24,000,000 and $16,000,000 as of March 31, 2020 and December 31, 2019 , respectively. There were no remaining commitments available to borrow on the revolving term loan as of March 31, 2020 . 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, 2020 . 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 : 2021 $ 4,603,342 2022 4,000,000 2023 4,000,000 2024 12,000,000 Total $ 24,603,342 |
Operating Leases (Notes)
Operating Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 $783,210 and $779,119 for the three months ended March 31, 2020 and 2019 , respectively. The following is a schedule of the Company's operating leases for railcars as of March 31, 2020 : Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment 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 Andersons Railcar Leasing Co. 20 7/1/2019 6/30/2026 11,300 GATX Corporation 15 7/1/2017 6/30/2020 4,500 Midwest Railcar Corporation 64 1/1/2015 12/31/2021 27,200 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 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 3,600 525 $ 255,398 The Company also has a number of other operating leases for machinery and equipment. These leases have terms ranging from 3 - 14 years; however, most of these leases have automatic renewal terms. These leases require monthly payments of $3,912 . Rental expense under these other operating leases was $7,681 and $7,923 for the three -month periods ended March 31, 2020 and 2019 , respectively. On March 19, 2020, the Company entered into an agreement with an entity in the western United States to provide storage and handling services for the Company's soybean meal. The Company will pay the entity $3,300,000 , which is included in current operating lease liabilities on the Company's balance sheet, after the entity's construction of additional storage and handling facilities. The agreement will mature seven years after completion of the construction but includes an additional seven -year renewal period at the sole discretion of the Company. 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 condensed 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, 2020 and 2019 were as follows: 2020 2019 Cost of revenues - Freight and rail $ 783,210 $ 779,119 Cost of revenues - Production 4,364 4,919 Administration expenses 3,317 3,004 Total operating lease costs $ 790,891 $ 787,042 The following summarizes the supplemental cash flow information for the three -month period ended March 31, 2020 and 2019 : 2020 2019 Cash paid for amounts included in measurement of lease liabilities $ 777,143 $ 742,911 Supplemental non-cash information: Right-of-use assets obtained in exchange for lease liabilities $ 3,300,000 $ — The following summarizes the weighted-average remaining lease term and weighted-average discount rate: March 31, 2020 Weighted-average remaining lease-term - operating leases (in years) 2.8 Weighted-average discount rate - operating leases 3.8 % The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2020 : Railcars Other Total Twelve-month periods ended March 31: 2021 $ 2,506,344 $ 3,342,702 $ 5,849,046 2022 1,704,949 40,211 1,745,160 2023 780,991 39,782 820,773 2024 150,600 28,389 178,989 2025 135,600 15,248 150,848 Thereafter 169,500 4,943 174,443 Total lease payments 5,447,984 3,471,275 8,919,259 Less amount of lease payments representing interest (341,420 ) (21,269 ) (362,689 ) Total present value of lease payments $ 5,106,564 $ 3,450,006 $ 8,556,570 |
Member Distribution
Member Distribution | 3 Months Ended |
Mar. 31, 2020 | |
Member Distribution [Abstract] | |
Member Distribution | Member Distribution On January 21, 2020 , the Company’s Board of Managers approved a cash distribution of approximately $6.7 million , or 22.0¢ per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 6, 2020 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 , the value of the Company’s open futures, options and forward contracts was approximately $902,894 and $(5,955,928) , respectively. As of March 31, 2020 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 11,995,519 $ 10,328,034 Foreign exchange contracts Current Assets 88,120 83,015 Interest rate caps and floors Current Liabilities — 769,696 Totals $ 12,083,639 $ 11,180,745 As of December 31, 2019 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,320,161 $ 8,930,683 Foreign exchange contracts Current Assets 29,696 27,582 Interest rate caps and floors Current Liabilities — 347,520 Totals $ 3,349,857 $ 9,305,785 During the three -month periods ended March 31, 2020 and 2019 , net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows: 2020 2019 Derivatives not designated as hedging instruments: Commodity contracts $ 5,626,229 $ 741,952 Foreign exchange contracts (67,997 ) 36,482 Interest rate swaps, caps and floors (419,482 ) (30,066 ) Totals $ 5,138,750 $ 748,368 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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, 2020 and December 31, 2019 : Fair Value as of March 31, 2020 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 1,667,485 $ 56,871,858 $ — $ 58,539,343 Margin deposits (deficits) $ 6,014,327 $ — $ — $ 6,014,327 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ (5,610,521 ) $ 49,717,733 $ — $ 44,107,212 Margin deposits $ 6,772,160 $ — $ — $ 6,772,160 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. This market adjustment caused a negative balance in the Level 1 inventory amount as of December 31, 2019. 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 the 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, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company sold soybean products to Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC totaling $2,806 and $108,057 during the three months ended March 31, 2020 and 2019 , respectively. As of March 31, 2020 and December 31, 2019 , Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC owed the Company $7,000 and $104,947 , respectively. The Company has entered into agreements with Prairie AquaTech Manufacturing, LLC to perform various management services and to serve as the owner's representative during the construction of its new manufacturing facility adjacent to the Company's plant in Volga, South Dakota. The Company received a total of $1.72 million in compensation for those services, which was recorded in deferred liabilities on the Company's condensed balance sheet. As of March 31, 2020 and December 31, 2019 , the balance remaining in deferred liabilities was $25,278 and $101,111 , respectively. The Company recognized revenues from management services of $85,833 and $344,756 during the three months ended March 31, 2020 and 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of March 31, 2020 , the Company had unpaid commitments of approximately $286,000 for construction and acquisition of property and equipment, all of which is expected to be incurred by December 2020. 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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event The Company evaluated all of its activities and, except for the event listed below, concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements. On April 20, 2020, the Company entered into an agreement with the U.S Small Business Administration for a loan of $1.2 million under the Paycheck Protection Program. The loan bears a 1.0% interest rate and matures on April 20, 2022 . Principal and interest is due at maturity. |
Principal Activity and Signif_2
Principal Activity and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $811,244 and $313,347 as of March 31, 2020 and December 31, 2019 , respectively. Of the $313,347 balance as of December 31, 2019 , contract liabilities recognized as revenues were $224,655 for the three months ended March 31, 2020 . |
Recent Accounting Pronouncements | Recent accounting pronouncements Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements. |
Principal Activity and Signif_3
Principal Activity and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 , by product type: 2020 2019 Soybean meal and hulls $ 62,692,880 $ 59,662,803 Soybean oil and oil byproducts 36,030,532 32,304,004 Totals $ 98,723,412 $ 91,966,807 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table presents the aging analysis of trade receivables as of March 31, 2020 and December 31, 2019 : March 31, December 31, Past due: Less than 30 days past due $ 4,231,734 $ 4,306,064 30-60 days past due 297,961 341,956 60-90 days past due 19,314 10,302 Greater than 90 days past due 23,777 14,162 Total past due 4,572,786 4,672,484 Current 17,640,863 19,748,073 Totals $ 22,213,649 $ 24,420,557 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The Company’s inventories consist of the following at March 31, 2020 and December 31, 2019 : March 31, December 31, Finished goods $ 34,784,325 $ 26,559,194 Raw materials 23,872,019 17,641,335 Supplies & miscellaneous 327,613 269,523 Totals $ 58,983,957 $ 44,470,052 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of the Company's property and equipment at March 31, 2020 and December 31, 2019 : 2020 2019 Cost Accumulated Depreciation Net Net Land $ 516,326 $ — $ 516,326 $ 516,326 Land improvements 2,158,383 (646,615 ) 1,511,768 1,545,088 Buildings and improvements 22,369,519 (9,627,132 ) 12,742,387 12,807,844 Machinery and equipment 84,278,193 (43,667,603 ) 40,610,590 41,480,121 Railroad cars 1,238,508 (37,155 ) 1,201,353 1,207,545 Company vehicles 146,754 (115,026 ) 31,728 36,032 Furniture and fixtures 1,363,744 (923,140 ) 440,604 459,153 Construction in progress 8,139,988 — 8,139,988 6,465,095 Totals $ 120,211,415 $ (55,016,671 ) $ 65,194,744 $ 64,517,204 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of the Company's long-term debt at March 31, 2020 and December 31, 2019 : March 31, December 31, Revolving term loan from CoBank, interest at variable rates (3.44% and 4.24% at March 31, 2020 and December 31, 2019, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. $ 24,000,000 $ 16,000,000 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. 603,342 603,342 Total debt before debt issuance costs 24,603,342 16,603,342 Less current maturities (4,603,342 ) (4,603,342 ) Less debt issuance costs, net of amortization of $6,916 and $5,923 as of March 31, 2020 and December 31, 2019, respectively (17,084 ) (8,077 ) Total long-term debt $ 19,982,916 $ 11,991,923 |
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 : 2021 $ 4,603,342 2022 4,000,000 2023 4,000,000 2024 12,000,000 Total $ 24,603,342 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure | The following is a schedule of the Company's operating leases for railcars as of March 31, 2020 : Lessor Quantity of Railcars Commencement Date Maturity Date Monthly Payment 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 Andersons Railcar Leasing Co. 20 7/1/2019 6/30/2026 11,300 GATX Corporation 15 7/1/2017 6/30/2020 4,500 Midwest Railcar Corporation 64 1/1/2015 12/31/2021 27,200 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 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 3,600 525 $ 255,398 |
Lease, Cost | The components of lease costs recognized within our condensed statements of operations for the three -month periods ended March 31, 2020 and 2019 were as follows: 2020 2019 Cost of revenues - Freight and rail $ 783,210 $ 779,119 Cost of revenues - Production 4,364 4,919 Administration expenses 3,317 3,004 Total operating lease costs $ 790,891 $ 787,042 |
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, 2020 : Railcars Other Total Twelve-month periods ended March 31: 2021 $ 2,506,344 $ 3,342,702 $ 5,849,046 2022 1,704,949 40,211 1,745,160 2023 780,991 39,782 820,773 2024 150,600 28,389 178,989 2025 135,600 15,248 150,848 Thereafter 169,500 4,943 174,443 Total lease payments 5,447,984 3,471,275 8,919,259 Less amount of lease payments representing interest (341,420 ) (21,269 ) (362,689 ) Total present value of lease payments $ 5,106,564 $ 3,450,006 $ 8,556,570 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivatives Assets and Liabilities Not Designated As Hedging Instruments | As of March 31, 2020 and December 31, 2019 , the value of the Company’s open futures, options and forward contracts was approximately $902,894 and $(5,955,928) , respectively. As of March 31, 2020 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 11,995,519 $ 10,328,034 Foreign exchange contracts Current Assets 88,120 83,015 Interest rate caps and floors Current Liabilities — 769,696 Totals $ 12,083,639 $ 11,180,745 As of December 31, 2019 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,320,161 $ 8,930,683 Foreign exchange contracts Current Assets 29,696 27,582 Interest rate caps and floors Current Liabilities — 347,520 Totals $ 3,349,857 $ 9,305,785 |
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, 2020 and 2019 , net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows: 2020 2019 Derivatives not designated as hedging instruments: Commodity contracts $ 5,626,229 $ 741,952 Foreign exchange contracts (67,997 ) 36,482 Interest rate swaps, caps and floors (419,482 ) (30,066 ) Totals $ 5,138,750 $ 748,368 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 : Fair Value as of March 31, 2020 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ 1,667,485 $ 56,871,858 $ — $ 58,539,343 Margin deposits (deficits) $ 6,014,327 $ — $ — $ 6,014,327 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ (5,610,521 ) $ 49,717,733 $ — $ 44,107,212 Margin deposits $ 6,772,160 $ — $ — $ 6,772,160 |
Principal Activity and Signif_4
Principal Activity and Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred revenue | $ 811,244 | $ 313,347 | |
Contract with customer, revenue recognized | 224,655 | $ 15,042 | |
Long-term liabilities | 22,793,402 | 15,307,727 | |
Present value of remaining lease payments | 8,919,259 | ||
Right-of-use asset | $ 8,556,570 | $ 5,979,771 |
Principal Activity and Signif_5
Principal Activity and Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 98,723,412 | $ 91,966,807 |
Soybean meal and hulls | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 62,692,880 | 59,662,803 |
Soybean oil and oil byproducts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 36,030,532 | $ 32,304,004 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 4,572,786 | $ 4,672,484 |
Current | 17,640,863 | 19,748,073 |
Accounts Receivable, Gross, Current | 22,213,649 | 24,420,557 |
Less than 30 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,231,734 | 4,306,064 |
30-60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 297,961 | 341,956 |
60-90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 19,314 | 10,302 |
Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 23,777 | $ 14,162 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Percentage of late fee on past due receivables | 1.50% |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 34,784,325 | $ 26,559,194 |
Raw materials | 23,872,019 | 17,641,335 |
Supplies & miscellaneous | 327,613 | 269,523 |
Totals | $ 58,983,957 | $ 44,470,052 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 120,211,415 | $ 118,363,393 |
Accumulated Depreciation | (55,016,671) | (53,846,189) |
Total property and equipment, net | 65,194,744 | 64,517,204 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 516,326 | |
Accumulated Depreciation | 0 | |
Total property and equipment, net | 516,326 | 516,326 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,158,383 | |
Accumulated Depreciation | (646,615) | |
Total property and equipment, net | 1,511,768 | 1,545,088 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 22,369,519 | |
Accumulated Depreciation | (9,627,132) | |
Total property and equipment, net | 12,742,387 | 12,807,844 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 84,278,193 | |
Accumulated Depreciation | (43,667,603) | |
Total property and equipment, net | 40,610,590 | 41,480,121 |
Railroad cars | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,238,508 | |
Accumulated Depreciation | (37,155) | |
Total property and equipment, net | 1,201,353 | 1,207,545 |
Company vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 146,754 | |
Accumulated Depreciation | (115,026) | |
Total property and equipment, net | 31,728 | 36,032 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,363,744 | |
Accumulated Depreciation | (923,140) | |
Total property and equipment, net | 440,604 | 459,153 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 8,139,988 | |
Accumulated Depreciation | 0 | |
Total property and equipment, net | $ 8,139,988 | $ 6,465,095 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,187,316 | $ 1,067,052 |
Investments in Related Parties
Investments in Related Parties (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 27, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Loss on equity method investment | $ 0 | $ 96,228 | |
Prairie AquaTech, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Loss on equity method investment | $ 0 | $ 96,228 | |
Prairie AquaTech Manufacturing, LLC, Cash Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Aggregate Cost | $ 404,329 | ||
Prairie AquaTech Manufacturing, LLC, Soybean Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Aggregate Cost | $ 500,000 |
Note Payable - Seasonal Loan (D
Note Payable - Seasonal Loan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, expiration date | Dec. 1, 2020 | |
Advances outstanding | $ 24,000,000 | $ 16,000,000 |
Seasonal Loan | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 28,000,000 | |
Interest rate | 3.19% | |
Commitment fee percentage | 0.20% | |
Advances outstanding | $ 19,715,804 | $ 1,743,029 |
Remaining available funds to borrow | $ 8,300,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Revolving term loan from CoBank, interest at variable rates (3.44% and 4.24% at March 31, 2020 and December 31, 2019, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. | $ 24,000,000 | $ 16,000,000 |
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. | 603,342 | 603,342 |
Total debt before debt issuance costs | 24,603,342 | 16,603,342 |
Less current maturities | (4,603,342) | (4,603,342) |
Less debt issuance costs, net of amortization of $6,916 and $5,923 as of March 31, 2020 and December 31, 2019, respectively | (17,084) | (8,077) |
Total long-term debt | 19,982,916 | 11,991,923 |
Accumulated amortization | 6,916 | $ 5,923 |
Revolving Term Loan | ||
Debt Instrument [Line Items] | ||
Revolving term loan from CoBank, interest at variable rates (3.44% and 4.24% at March 31, 2020 and December 31, 2019, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. | $ 26,000,000 | |
Revolving term loan from CoBank, interest rates | 3.44% | 4.24% |
Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Debt installments | $ 75,500 | |
Interest Rate | 2.00% |
Long-Term Debt (Details 1)
Long-Term Debt (Details 1) | Mar. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 4,603,342 |
2022 | 4,000,000 |
2023 | 4,000,000 |
2024 | 12,000,000 |
Long-term Debt | $ 24,603,342 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) | Mar. 01, 2013 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||||
Advances outstanding | $ 24,000,000 | $ 16,000,000 | ||
Periodic payment, principal | $ 2,000,000 | |||
Annual commitment fee percentage on unused capacity | 0.40% | |||
Debt issuance cost | $ 10,000 | $ 0 | ||
Long term debt for infrastructure improvements | $ 964,070 | |||
Revolving Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Advances outstanding | $ 26,000,000 | |||
Variable effective interest rate | 3.44% | |||
Maturity date | Sep. 20, 2023 | |||
Debt issuance cost | $ 24,000 | |||
Remaining borrowing capacity | $ 0 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 19, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 7 years | |||
Operating lease expense | $ 783,210 | $ 779,119 | ||
Operating lease, required monthly payments | 3,912 | |||
Current operating lease liabilities | $ 5,746,084 | $ 3,300,000 | $ 2,663,967 | |
Operating lease renewal term | 7 years | |||
Railcars | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 3 years | |||
Railcars | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 18 days | |||
Machinery and equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 7,681 | $ 7,923 | ||
Machinery and equipment | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 3 days | |||
Machinery and equipment | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 14 days |
Operating Leases - Schedule of
Operating Leases - Schedule of Operating Leases (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)railcar | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 525 |
Monthly Payment | $ | $ 255,398 |
Wells Fargo Rail, Maturity Date July 31, 2022 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 112 |
Monthly Payment | $ | $ 52,557 |
Wells Fargo Rail, Maturity Date Dec 31, 2022 | |
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 | |
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 | |
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 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 8 |
Monthly Payment | $ | $ 3,600 |
Trinity Capital, Maturity Date July 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 88 |
Monthly Payment | $ | $ 33,704 |
Trinity Capital, Maturity Date Nov 30, 2020 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 29 |
Monthly Payment | $ | $ 28,536 |
Trinity Capital, Maturity Date Sep 30, 2020 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 20 |
Monthly Payment | $ | $ 13,600 |
Midwest Railcar Corporation, Maturity Date Dec 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 64 |
Monthly Payment | $ | $ 27,200 |
American Railcar Leasing, Maturity Date Jun 30, 2021 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 30 |
Monthly Payment | $ | $ 30,780 |
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2023 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 10 |
Monthly Payment | $ | $ 5,000 |
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2026 | |
Lessee, Lease, Description [Line Items] | |
Quantity of Railcars | railcar | 20 |
Monthly Payment | $ | $ 11,300 |
GATX Corporation, Maturity Date Jun 30, 2020 | |
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, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 790,891 | $ 787,042 |
Cost of revenues - Freight and rail | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 783,210 | 779,119 |
Cost of revenues - Production | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 4,364 | 4,919 |
Administration expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 3,317 | $ 3,004 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 777,143 | $ 742,911 |
Right-of-use assets obtained in exchange for lease liabilities | $ 3,300,000 | $ 0 |
Operating Leases - Additional L
Operating Leases - Additional Lease Information (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease-term - operating leases (in years) | 2 years 9 months 18 days |
Weighted-average discount rate - operating leases | 3.80% |
Operating Leases - Maturity Ana
Operating Leases - Maturity Analysis of Undiscounted Cash Flows of Operating Lease Liabilities (Details) | Mar. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended September 30, 2021 | $ 5,849,046 |
Twelve-month periods ended September 30, 2022 | 1,745,160 |
Twelve-month periods ended September 30, 2023 | 820,773 |
Twelve-month periods ended September 30, 2024 | 178,989 |
Twelve-month periods ended September 30, 2025 | 150,848 |
Thereafter | 174,443 |
Total lease payments | 8,919,259 |
Less amount of lease payments representing interest | (362,689) |
Total present value of lease payments | 8,556,570 |
Railcars | |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended September 30, 2021 | 2,506,344 |
Twelve-month periods ended September 30, 2022 | 1,704,949 |
Twelve-month periods ended September 30, 2023 | 780,991 |
Twelve-month periods ended September 30, 2024 | 150,600 |
Twelve-month periods ended September 30, 2025 | 135,600 |
Thereafter | 169,500 |
Total lease payments | 5,447,984 |
Less amount of lease payments representing interest | (341,420) |
Total present value of lease payments | 5,106,564 |
Other | |
Lessee, Lease, Description [Line Items] | |
Twelve-month periods ended September 30, 2021 | 3,342,702 |
Twelve-month periods ended September 30, 2022 | 40,211 |
Twelve-month periods ended September 30, 2023 | 39,782 |
Twelve-month periods ended September 30, 2024 | 28,389 |
Twelve-month periods ended September 30, 2025 | 15,248 |
Thereafter | 4,943 |
Total lease payments | 3,471,275 |
Less amount of lease payments representing interest | (21,269) |
Total present value of lease payments | $ 3,450,006 |
Member Distribution (Details Te
Member Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2020 | Mar. 31, 2020 |
Member Distribution [Abstract] | ||
Declaration date | Jan. 21, 2020 | |
Cash distributions paid | $ 6.7 | |
Distributions paid, per unit (USD per share) | $ 0.220 | |
Distribution date | Feb. 6, 2020 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details Textual) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets (liabilities), at fair value, net | $ 902,894 | $ (5,955,928) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives not designated as hedging instruments: | ||
Asset Derivatives | $ 12,083,639 | $ 3,349,857 |
Liability Derivatives | $ 11,180,745 | $ 9,305,785 |
Commodity contracts | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Assets | Current Assets |
Asset Derivatives | $ 11,995,519 | $ 3,320,161 |
Liability Derivatives | $ 10,328,034 | $ 8,930,683 |
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Assets | Current Assets |
Asset Derivatives | $ 88,120 | $ 29,696 |
Liability Derivatives | $ 83,015 | $ 27,582 |
Interest rate caps and floors | ||
Derivatives not designated as hedging instruments: | ||
Balance Sheet Classification | Current Liabilities | Current Liabilities |
Asset Derivatives | $ 0 | $ 0 |
Liability Derivatives | $ 769,696 | $ 347,520 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | $ 5,138,750 | $ 748,368 |
Commodity contracts | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | 5,626,229 | 741,952 |
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | (67,997) | 36,482 |
Interest rate caps and floors | ||
Derivatives not designated as hedging instruments: | ||
Net Gain (Loss) Recognized on Derivative Activities | $ (419,482) | $ (30,066) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Inventory | $ 58,539,343 | $ 44,107,212 |
Margin deposits | 6,014,327 | 6,772,160 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Inventory | 1,667,485 | (5,610,521) |
Margin deposits | 6,014,327 | 6,772,160 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Inventory | 56,871,858 | 49,717,733 |
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) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Prairie AquaTech, LLC | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 2,806 | $ 108,057 | |
Due from related parties | 7,000 | $ 104,947 | |
Prairie Aqua Tech Manufacturing, LLC | |||
Related Party Transaction [Line Items] | |||
Due from related parties, cumulative, current | 1,720,000 | ||
Due from related parties, current | 25,278 | $ 101,111 | |
Management Services | Prairie Aqua Tech Manufacturing, LLC | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 85,833 | $ 344,756 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unpaid commitments for construction and acquisition of property and equipment | $ 286 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Events (Details) - Subsequent Event $ in Millions | Apr. 20, 2020USD ($) |
Subsequent Event [Line Items] | |
CARES Act, proceeds from loan | $ 1.2 |
CARES Act, Interest rate | 1.00% |