Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Apr. 30, 2021 | Jun. 11, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2021 | |
Entity File Number | 000-51177 | |
Entity Registrant Name | GOLDEN GRAIN ENERGY, LLC | |
Entity Incorporation, State or Country Code | IA | |
Entity Tax Identification Number | 02-0575361 | |
Entity Address, Address Line One | 1822 43rd Street SW | |
Entity Address, City or Town | Mason City | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50401 | |
City Area Code | 641 | |
Local Phone Number | 423-8525 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Central Index Key | 0001206942 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Class A | ||
Cover [Abstract] | ||
Entity Common Stock, Shares Outstanding | 18,953,000 | |
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,953,000 | |
Common Class B | ||
Cover [Abstract] | ||
Entity Common Stock, Shares Outstanding | 920,000 | |
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 920,000 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 59,659,528 | $ 35,154,653 | $ 113,104,185 | $ 92,586,855 |
Cost of Goods Sold | 58,425,094 | 41,862,136 | 117,313,416 | 96,688,473 |
Gross Profit | 1,234,434 | (6,707,483) | (4,209,231) | (4,101,618) |
Operating Expenses | 1,225,996 | 1,022,045 | 2,434,213 | 2,296,007 |
Operating Income (Loss) | 8,438 | (7,729,528) | (6,643,444) | (6,397,625) |
Other Income (Expense) | ||||
Other income (expense) | (55,540) | 364,523 | 236,508 | 372,970 |
Interest income (expense) | (50,489) | 28,242 | (103,224) | 86,840 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 860,500 | 0 |
Equity in net income of investments | 874,866 | (480,645) | 3,434,347 | 1,534,625 |
Total Other Income | 768,837 | (87,880) | 4,428,131 | 1,994,435 |
Net Income | $ 777,275 | $ (7,817,408) | $ (2,215,313) | $ (4,403,190) |
Basic & diluted net income per unit (usd per share) | $ 0.04 | $ (0.39) | $ (0.11) | $ (0.22) |
Weighted average units outstanding for the calculation of basic & diluted net income per unit (in shares) | 19,873,000 | 19,873,000 | 19,873,000 | 19,873,000 |
Distribution Per Unit (usd per share) | $ 0 | $ 0.10 | $ 0.20 | $ 0.10 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Current Assets | ||
Cash and equivalents | $ 7,112,501 | $ 17,582,312 |
Marketable securities | 1,317,398 | 5,113,066 |
Accounts receivable | 4,488,197 | 7,326,519 |
Other receivables | 160,329 | 191,768 |
Derivative instruments | 875,597 | 862,516 |
Inventory | 14,709,445 | 8,346,764 |
Prepaid expenses and other | 3,396,837 | 2,999,162 |
Total current assets | 32,060,304 | 42,422,107 |
Property and Equipment | ||
Land and land improvements | 14,319,210 | 14,319,211 |
Building and grounds | 33,719,636 | 33,719,636 |
Grain handling equipment | 16,097,244 | 16,084,232 |
Office equipment | 2,457,090 | 2,457,090 |
Plant and process equipment | 123,455,866 | 122,038,667 |
Construction in progress | 10,183,996 | 3,189,865 |
Gross property and equipment | 200,233,042 | 191,808,701 |
Less accumulated depreciation | 128,620,689 | 124,390,850 |
Net property and equipment | 71,612,353 | 67,417,851 |
Other Assets | ||
Investments | 25,020,234 | 25,019,870 |
Right of use asset operating leases | 2,313,532 | 2,324,631 |
Other assets | 1,885,550 | 1,904,482 |
Total other assets | 29,219,316 | 29,248,983 |
Total Assets | 132,891,973 | 139,088,941 |
Current Liabilities | ||
Accounts payable | 6,422,686 | 6,798,427 |
Accrued expenses | 3,125,299 | 2,930,479 |
Other current liabilities | 151,673 | 34,813 |
Long-term Debt, Current Maturities | 419,271 | 430,250 |
Current portion operating lease liability | 945,856 | 1,000,141 |
Total current liabilities | 11,064,785 | 11,194,110 |
Long-term Liabilities | ||
Deferred compensation | 662,836 | 514,409 |
Operating Lease Liability | 1,367,676 | 1,324,490 |
Long-term Debt, Excluding Current Maturities | 419,270 | 430,250 |
Other Liabilities, Noncurrent | 1,254,814 | 1,313,177 |
Total long-term liabilities | 3,704,596 | 3,582,326 |
Members' Equity (19,873,000 units issued and outstanding) | 118,122,592 | 124,312,505 |
Total Liabilities and Members’ Equity | $ 132,891,973 | $ 139,088,941 |
Balance Sheet Parenthetical
Balance Sheet Parenthetical - shares | Apr. 30, 2021 | Oct. 31, 2020 |
Balance Sheet Parenthetical [Abstract] | ||
Common stock, shares outstanding (in shares) | 19,873,000 | 19,873,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity | USD ($) |
Beginning balance at Oct. 31, 2019 | $ 120,421,143 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | 3,414,218 |
Ending balance at Jan. 31, 2020 | 123,835,361 |
Beginning balance at Oct. 31, 2019 | 120,421,143 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | (4,403,190) |
Ending balance at Apr. 30, 2020 | 114,030,653 |
Beginning balance at Jan. 31, 2020 | 123,835,361 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | (7,817,408) |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (1,987,300) |
Ending balance at Apr. 30, 2020 | 114,030,653 |
Beginning balance at Oct. 31, 2020 | 124,312,505 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | (2,992,588) |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (3,974,600) |
Ending balance at Jan. 31, 2021 | 117,345,317 |
Beginning balance at Oct. 31, 2020 | 124,312,505 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | (2,215,313) |
Ending balance at Apr. 30, 2021 | 118,122,592 |
Beginning balance at Jan. 31, 2021 | 117,345,317 |
Increase (Decrease) in Changes in Members' Equity | |
Net loss | 777,275 |
Ending balance at Apr. 30, 2021 | $ 118,122,592 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income | $ (2,215,313) | $ (4,403,190) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,266,866 | 4,438,899 |
Unrealized gain on securities | (217,413) | 552,906 |
Amortization of Deferred Charges | 148,427 | 0 |
Amortization of Debt Issuance Costs | 16,667 | 0 |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | (334,359) |
Change in accretion of interest on grant & note receivable | (104,224) | (17,323) |
Distributions in excess of earnings from investments | (364) | 1,804,467 |
Gain (Loss) on Extinguishment of Debt | 860,500 | 0 |
Insured Event, Gain (Loss) | 0 | (34,965) |
Change in assets and liabilities | ||
Accounts receivable | 2,838,322 | 1,389,846 |
Inventory | (6,362,681) | 1,878,575 |
Prepaid expenses and other | (366,236) | (545,769) |
Accounts payable | (1,244,369) | (864,832) |
Accrued expenses | 1,136,203 | (41,162) |
Increase (Decrease) in Operating Lease Liability | 11,099 | 0 |
Net cash provided by operating activities | (2,953,516) | 3,823,093 |
Cash Flows from Investing Activities | ||
Capital expenditures | (8,380,236) | (3,256,774) |
Payments to Acquire Marketable Securities | 0 | (2,000,000) |
Proceeds from sale of marketable securities | 4,000,000 | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 334,359 |
Net cash used in investing activities | (4,380,236) | (4,922,415) |
Proceeds from Issuance of Long-term Debt | 838,541 | 860,500 |
Cash Flows from Financing Activities | ||
Distributions to members | (3,974,600) | (1,987,300) |
Proceeds from Insurance Settlement, Operating Activities | 0 | 34,965 |
Net cash (used in) financing activities | (3,136,059) | (1,091,835) |
Net (Decrease) in Cash and Equivalents | (10,469,811) | (2,191,157) |
Cash and Equivalents – Beginning of Period | 17,582,312 | 15,937,266 |
Cash and Equivalents – End of Period | 7,112,501 | 13,746,109 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 135,539 | 25,572 |
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities | ||
Accounts payable related to construction in progress | 1,756,598 | 245,703 |
Deferred revenue received through grant receivable | 1,486,871 | 1,400,722 |
Initial Right-of-use asset and liability recorded | $ 0 | $ 2,889,785 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and notes disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended October 31, 2020, contained in the Company's annual report on Form 10-K for the year ended October 31, 2020. In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. The adjustments made to these statements consist only of normal recurring adjustments. Nature of Business Golden Grain Energy, LLC ("Golden Grain Energy" and "the Company") is an approximately 120 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics. Organization Golden Grain Energy is organized as an Iowa limited liability company. The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Cash and Equivalents The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term on the balance sheet, based on contractual maturity date and are stated at cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds. For the periods ended April 30, 2021 and 2020, there was no other-than-temporary impairment recognized. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income. The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net earnings (losses) on marketable securities $ (56,000) $ (13,000) $ 56,000 $ (5,000) Marketable Securities As of Cost Fair Market Value April 30, 2021 $ 1,013,000 $ 1,317,000 October 31, 2020 $ 4,835,000 $ 5,113,000 Accounts Receivable Credit sales are made primarily to one customer, and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's statement of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. Distributions or dividends received in excess of the carrying value are recognized as income in the statement of operations. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. The fiscal years of Renewable Products Marketing Group, LLC ("RPMG") and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC, Homeland Energy Solutions, LLC and Lawrenceville Tank, LLC, end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's statement of operations for the period ended April 30, 2021, for all investees, is based on the investees' results for the three and six months ended March 31, 2020. Revenue and Cost Recognition The Company records revenue in accordance with ASC Topic 606. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Company has adopted the practical expedient related to the financing component of the contract. The Company applies the five-step method outlined in the guidance to all contracts with customers. The Company generally has a single performance obligation in its arrangements with customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company expenses contract costs when incurred because the amortization period is less than one year. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. The principal activities from which we generate revenue include: sales of ethanol, sales of distiller grains and sales of corn oil. All revenue recognized in the income statement is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5. Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. Based upon the timing of the transfer of control of our products to our customers, there were no contract assets or liabilities as of April 30, 2021. Inventory Inventories are generally valued at the lower of weighted average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. Grant Receivable and Deferred Revenue Grant receivables are recorded when the payments to be received can be estimated and when payment is reasonably assured. The Company recorded a grant receivable and corresponding deferred revenue of approximately $1,486,000 associated with an agreement approved in December 2019 for tax increment financing monies associated with the plant expansion that was completed in January 2020 to be received over a 10-year period for the tax increment financing monies. These grants were recorded at their net present value using a discount rate of approximately 5%. Related deferred revenue was recorded and is being amortized into income as a reduction of property taxes over the life of the grant. As of April 30, 2021 the grant receivable was approximately $1,486,000 and was included in long-term other assets and the long-term portions of deferred revenue was approximately $1,486,000. Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their pro rata share of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. The company is currently under a State of Iowa income tax examination. The Company received a letter in April 2021 that indicates the Iowa Department of Revenue has adjusted the Corporate tax return for 2017 and the Company will be issued an assessment for approximately $1 million. The Company intends to defend their position and protest the notice of assessment. The Company has also elected to conduct the protest and pay any resulting obligation at the corporate level on behalf of its shareholders. Investment in Commodities Contracts, Derivative Instruments and Hedging Activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company may also enter into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. Net Earnings (Loss) Per Unit Basic and diluted earnings (loss) per unit are computed using the weighted-average number of Class A and B units outstanding during the period. Fair Value Financial instruments include cash and equivalents, marketable securities, receivables, accounts payable, accrued expenses, and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices, as disclosed in Note 8. The fair value, determined using level 3 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the six months ended April 30, 2021, ethanol sales accounted for approximately 75% of total revenue, distiller grains sales accounted for approximately 20% of total revenue, and corn oil sales accounted for approximately 5% of total revenue, while corn costs averaged approximately 90% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. On January 30, 2020, the World Health Organization declared the coronavirus outbreak ("COVID-19") a “Public Health Emergency of International Concern” and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Quarantines, labor shortages, and other disruptions to the Company’s operations, and those of its customers, adversely impacted the Company’s revenues, ability to provide its services and operating results. Any future quarantines, labor shortages or other disruptions to the Company’s operations, or those of their customers, may adversely impact the Company’s revenues, ability to provide its services and operating results. Like the COVID-19 pandemic, any significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which COVID-19 will impact the Company’s long-term results will depend on future developments, which are highly uncertain and cannot be predicted, including new developments regarding continued distribution of the COVID-19 vaccine, new information which may emerge concerning the severity of the coronavirus, prevalence of new COVID-19 cases and actions taken to contain the coronavirus or its impact, among others. Recent Accounting Pronouncements In August 2018, FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes some of the disclosure requirements related to fair value measurements related to the Level 1, 2 and 3 investments. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and for interim periods within that fiscal year. The Company has adopted ASU No. 2018-13 on the financial statement. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018, |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of April 30, 2021 and October 31, 2020: April 30, 2021 October 31, 2020 Raw Materials $ 5,672,109 $ 4,977,047 Work in Process 3,019,641 1,964,403 Finished Goods 6,017,695 1,405,314 Totals $ 14,709,445 $ 8,346,764 |
Debt
Debt | 6 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | BANK FINANCING The Company has a Credit Agreement (the "Credit Agreement") with its primary lender, Farm Credit. Pursuant to the Credit Agreement, the Company executed a $35 million reducing revolving loan (the "Reducing Revolving Loan"). The amount available pursuant to the Reducing Revolving Loan decreases by $5 million each year on the first day of August each year starting on August 1, 2021. The maturity date is August 1, 2023. Interest accrues on the Reducing Revolving Loan based on three options available to us. The Company agreed to pay an annual fee of 0.5% of the unused portion of the Reducing Revolving Loan. Interest on the term loan is payable monthly at 3.40% above the one-month LIBOR (3.51% as of April 30, 2021). The borrowings were secured by substantially all the assets of the Company. The credit agreements are subject to covenants, including requiring the Company to maintain various financial ratios, as well as certain distribution limitations. As of April 30, 2021, the Company was in compliance with all of the loan covenants. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of any outstanding principal balances on the loans and/or imposition of fees and penalties. As of April 30, 2021 and October 31, 2020, the Company had no outstanding borrowings under this agreement. The Company entered into a loan agreement with the Small Business Association through Cresco Union Savings Bank ("CUSB") on April 7, 2020 for approximately $860,000 as part of the Paycheck Protection Program ("PPP") under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loan matures in April 2022 and has an interest rate of 1%. Proceeds of the loan are restricted for use towards payroll costs and other allowable uses such as covered utilities for an eight-week period following the loan under the Paycheck Protection Program Rules. Provisions of the agreement allow for a portion of the loan to be forgiven if certain qualifications are met. On December 8, 2020, we were notified that this entire loan was forgiven. The company recorded the forgiveness as a gain on debt extinguishment in the statement of operations for approximately $860,000 for the six months ended April 30, 2021. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe Company purchases corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators and construction companies (see Note 5). The Company also purchases ingredients from RPMG. Purchases from the related parties during the three and six months ended April 30, 2021 totaled approximately $11,798,000 and $23,788,281. Purchases from the related parties during the three and six months ended April 30, 2020 totaled approximately $9,130,000 and $20,172,000. As of April 30, 2021 and October 31, 2020, the amount owed to related parties was approximately $473,000 and $593,000, respectively (See Note 5). |
Commitments, Contingencies, Agr
Commitments, Contingencies, Agreements and Related Party | 6 Months Ended |
Apr. 30, 2021 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments, Contingencies, Agreements and Related Party | COMMITMENTS, CONTINGENCIES, AGREEMENTS AND RELATED PARTY Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers The Company has entered into marketing agreements with a marketing company, in which the Company has an investment, for the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The marketing fees are presented net in revenues. Approximate sales and marketing fees related to the agreements in place are as follows: Three Months Ended April 30, Six Months Ended April 30, 2021 2020 2021 2020 Sales ethanol $ 44,854,000 $ 25,913,000 $ 85,212,000 $ 71,474,000 Sales distiller grains 12,345,000 7,557,000 22,669,000 17,498,000 Sales corn oil 3,139,000 1,413,000 5,506,000 3,633,000 Marketing fees-ethanol $ 64,000 $ 40,000 $ 127,000 $ 100,000 Marketing fees-distiller grains 59,000 50,000 125,000 124,000 Marketing fees-corn oil 14,000 10,000 30,000 30,000 As of April 30, 2021 October 31, 2020 Amount due from RPMG $ 4,488,000 $ 7,326,000 The Company entered into a $13.3 million agreement for additional grain storage and receiving. As of April 30, 2021, $9,117,000 of costs had been incurred associated to this project. The estimated completion of this project is June 2021. |
Lease Obligations
Lease Obligations | 6 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognizes a lease liability at the lease commencement date, for the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. The Company leases rail cars and rail moving equipment with original terms up to 5 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases. These costs are in addition to regular lease payments and are not included in lease expense. Rent expense incurred for the operating leases during the three and six months ended April 30, 2021 was approximately $449,000 and $675,000, and for the same period in 2020 was approximately $365,000. and $719,000. The lease agreements have maturity dates ranging from May 2021 to May 2024. The weighted average remaining life of the lease term for these leases was 1.86 years as of April 30, 2021. The discount rate used in determining the lease liability for each individual lease was the Company's estimated incremental borrowing rate of 4.95%. The right-of-use asset operating lease, included in other assets, and operating lease liabilities, included in current and long term liabilities was $2,313,532 as of April 30, 2021. At April 30, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month period ended April 30: 2021 $ 1,123,310 2022 874,080 2023 445,500 2024 16,800 Total lease commitments $ 2,459,690 A reconciliation of the undiscounted future payments in the schedule above and the lease liabilities recognized in the consolidated balance sheet as of April 30, 2021, is shown below. Undiscounted future payments $ 2,459,690 Discount effect (146,158) Discounted future payments $ 2,313,532 |
Risk Management
Risk Management | 6 Months Ended |
Apr. 30, 2021 | |
Risk Management [Abstract] | |
Risk Management | RISK MANAGEMENT The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. These financial exposures are monitored and managed by the Company as an integral part of its overall risk-management program. The Company's risk management program focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of contracts related to corn and natural gas are recorded in cost of goods sold and changes in market prices of contracts related to sale of ethanol are recorded in revenues. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended April 30, 2021 and 2020 and the fair value of derivatives as of April 30, 2021 and October 31, 2020: Income Statement Classification Realized Gain (Loss) Change in Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity Contracts for the Revenue $ (210,000) $ (453,000) $ (663,000) three months ended April 30, 2021 Cost of Goods Sold (3,326,000) (2,303,000) (5,629,000) Total $ (3,536,000) $ (2,756,000) $ (6,292,000) Commodity Contracts for the Revenue $ 601,000 $ (26,000) $ 575,000 three months ended April 30, 2020 Cost of Goods Sold 1,198,000 (384,000) 814,000 Total $ 1,799,000 $ (410,000) $ 1,389,000 Commodity Contracts for the Revenue $ (210,000) $ (542,000) $ (752,000) six months ended April 30, 2021 Cost of Goods Sold (5,565,000) (4,622,000) (10,187,000) Total $ (5,775,000) $ (5,164,000) $ (10,939,000) Commodity Contracts for the Revenue $ 163,000 $ 377,000 $ 540,000 six months ended April 30, 2020 Cost of Goods Sold 2,574,000 (1,470,000) 1,104,000 Total $ 2,737,000 $ (1,093,000) $ 1,644,000 Balance Sheet Classification April 30, 2021 October 31, 2020 Futures and option contracts In gain position $ 455,000 $ 470,000 In loss position (5,438,000) (290,000) Cash held by (due to) broker 5,859,000 683,000 Current Asset $ 876,000 $ 863,000 As of April 30, 2021, the Company had the following approximate outstanding purchase and sale commitments, of which all sales commitments and approximately $3,926,000 of the purchase commitments were with related parties. Commitments Through Amount Sale commitments Corn Oil - fixed price May 2021 $ 1,594,000 Distiller Grains - fixed price May 2021 3,816,000 Purchase commitments Corn - fixed price April 2022 $ 20,780,000 Corn - basis contract July 2021 6,354,000 Natural gas - fixed price February 2022 2,915,000 Denaturant - fixed price September 2021 1,172,000 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Marketable Securities: The Company's investments in short-term liquid investments (e.g. mutual funds), are classified within Level 1, carried at fair value based on the quoted market prices. Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from markets such as the Chicago Mercantile Exchange ("CME") and New York Mercantile Exchange ("NYMEX"). Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract. The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Marketable securities: Assets, April 30, 2021 $ 1,317,000 $ 1,317,000 $ — $ — Assets, October 31, 2020 5,113,000 5,113,000 — — Derivative financial instruments: April 30, 2021 Assets $ 455,000 $ 455,000 $ — $ — Liabilities 5,439,000 3,530,000 1,909,000 — October 31, 2020 Assets $ 470,000 $ 470,000 $ — $ — Liabilities (290,000) (149,000) (141,000) — |
Investments
Investments | 6 Months Ended |
Apr. 30, 2021 | |
Investments [Abstract] | |
Investments | INVESTMENTS Condensed, combined unaudited financial information of the Company’s investments in Absolute Energy, Homeland Energy Solutions, Guardian Energy, Lawrenceville Tank and RPMG is as follows (in 000’s): Balance Sheet March 31, 2021 September 30, 2020 Current Assets $ 378,693 $ 285,395 Other Assets 241,777 246,389 Current Liabilities 238,043 168,842 Long-term Debt 68,126 47,529 Members’ Equity 314,301 315,413 Three Months Ended March 31, Six Months Ended March 31, Income Statement 2021 2020 2021 2020 Revenue $ 261,557 $ 177,082 $ 471,255 $ 394,124 Gross Profit (Loss) 23,690 (9,499) 52,620 13,753 Net Income (Loss) 21,065 (12,814) 36,205 8,248 The Company recorded equity in net income of approximately (in 000's): Three Months Ended April 30, Six Months Ended April 30, Equity in Net Income (Loss) 2021 2020 2021 2020 Absolute Energy $ 258 $ (329) $ 876 $ 148 Guardian Energy — — — 959 Homeland Energy Solutions 457 (386) 524 139 Other 125 235 187 289 Total $ 840 $ (480) $ 1,587 $ 1,535 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | SEGMENT REPORTING The Company reports its financial and operating performance in two reportable segments: (1) production (2) ethanol production investments. The production segment consists of the manufacturing of ethanol and related co-products from the ethanol production process. The ethanol production investment segment consists of aggregated ethanol production equity method investments. The Company discloses the remaining operating segments which do not meet the reportable segment criteria in the all other investments category. The Company evaluates its operating segments for determination of reportable segments annually and determined that the ethanol production investments qualified as a separate reporting segment. The ethanol production investments reporting segment includes those equity method investment operating segments which the company's chief operating decision maker does not have operational decision authority, that meet the qualitative criteria for aggregation, have similar long-term economic characteristics, and have expected ongoing significance, which includes Absolute Energy, Guardian Energy, and Homeland Energy Solutions. All investments that are included in the segment derive their revenue from the manufacturing of ethanol and related co-products from the ethanol production process. The reconciliation item is necessary due to reportable segments not being consolidated in the financial statements, but rather are reflected as equity method investments. The following tables set forth certain financial data for the Company’s reportable segments: Three Months Ended April 30, 2021 2020 Net Sales Production $ 59,659,528 $ 35,154,653 Ethanol production investments 257,580,236 173,106,497 All Others 3,976,566 3,976,043 Reconciliation (261,556,802) (177,082,540) Total Net Sales $ 59,659,528 $ 35,154,653 Net Income (Loss) Production $ (97,590) $ (7,336,764) Ethanol production investments 19,305,224 (13,581,164) All Others 1,760,021 767,364 Reconciliation (20,190,380) 12,333,156 Total Net Income (Loss) $ 777,275 $ (7,817,408) The following table sets forth the Company’s total assets by operating segment: April 30, 2021 October 31, 2020 Total assets: Production $ 107,871,741 $ 114,069,070 Ethanol production investments 377,798,022 358,692,270 All Others 242,671,698 173,092,120 Reconciliation (595,449,488) (506,764,519) $ 132,891,973 $ 139,088,941 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On May 25, 2021 we applied for forgiveness of our second PPP Loan totaling $838,000. |
(Policies)
(Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | Nature of BusinessGolden Grain Energy, LLC ("Golden Grain Energy" and "the Company") is an approximately 120 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics. |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | OrganizationGolden Grain Energy is organized as an Iowa limited liability company. The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. |
Cash and Equivalents | Cash and EquivalentsThe Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. |
Marketable Securities | Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term on the balance sheet, based on contractual maturity date and are stated at cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds. For the periods ended April 30, 2021 and 2020, there was no other-than-temporary impairment recognized. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income. The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net earnings (losses) on marketable securities $ (56,000) $ (13,000) $ 56,000 $ (5,000) Marketable Securities As of Cost Fair Market Value April 30, 2021 $ 1,013,000 $ 1,317,000 October 31, 2020 $ 4,835,000 $ 5,113,000 |
Accounts Receivable [Policy Text Block] | Accounts Receivable Credit sales are made primarily to one customer, and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Investments | Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's statement of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. Distributions or dividends received in excess of the carrying value are recognized as income in the statement of operations. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. |
Revenue and Cost Recognition | Revenue and Cost Recognition The Company records revenue in accordance with ASC Topic 606. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Company has adopted the practical expedient related to the financing component of the contract. The Company applies the five-step method outlined in the guidance to all contracts with customers. The Company generally has a single performance obligation in its arrangements with customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company expenses contract costs when incurred because the amortization period is less than one year. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. The principal activities from which we generate revenue include: sales of ethanol, sales of distiller grains and sales of corn oil. All revenue recognized in the income statement is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5. Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. Based upon the timing of the transfer of control of our products to our customers, there were no contract assets or liabilities as of April 30, 2021. |
Grant Receivable and Deferred Revenue | Grant Receivable and Deferred RevenueGrant receivables are recorded when the payments to be received can be estimated and when payment is reasonably assured. The Company recorded a grant receivable and corresponding deferred revenue of approximately $1,486,000 associated with an agreement approved in December 2019 for tax increment financing monies associated with the plant expansion that was completed in January 2020 to be received over a 10-year period for the tax increment financing monies. These grants were recorded at their net present value using a discount rate of approximately 5%. Related deferred revenue was recorded and is being amortized into income as a reduction of property taxes over the life of the grant. As of April 30, 2021 the grant receivable was approximately $1,486,000 and was included in long-term other assets and the long-term portions of deferred revenue was approximately $1,486,000. |
Inventory | InventoryInventories are generally valued at the lower of weighted average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. |
Property and Equipment | Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their pro rata share of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. The company is currently under a State of Iowa income tax examination. The Company received a letter in April 2021 that indicates the Iowa Department of Revenue has adjusted the Corporate tax return for 2017 and the Company will be issued an assessment for approximately $1 million. The Company intends to defend their position and protest the notice of assessment. The Company has also elected to conduct the protest and pay any resulting obligation at the corporate level on behalf of its shareholders. |
Investment in commodities contracts, derivative instruments and hedging activities | Investment in Commodities Contracts, Derivative Instruments and Hedging Activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company may also enter into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. |
Net loss per unit | Net Earnings (Loss) Per Unit Basic and diluted earnings (loss) per unit are computed using the weighted-average number of Class A and B units outstanding during the period. |
Fair Value | Fair ValueFinancial instruments include cash and equivalents, marketable securities, receivables, accounts payable, accrued expenses, and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices, as disclosed in Note 8. The fair value, determined using level 3 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. |
Risks and Uncertainties | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the six months ended April 30, 2021, ethanol sales accounted for approximately 75% of total revenue, distiller grains sales accounted for approximately 20% of total revenue, and corn oil sales accounted for approximately 5% of total revenue, while corn costs averaged approximately 90% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. On January 30, 2020, the World Health Organization declared the coronavirus outbreak ("COVID-19") a “Public Health Emergency of International Concern” and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Quarantines, labor shortages, and other disruptions to the Company’s operations, and those of its customers, adversely impacted the Company’s revenues, ability to provide its services and operating results. Any future quarantines, labor shortages or other disruptions to the Company’s operations, or those of their customers, may adversely impact the Company’s revenues, ability to provide its services and operating results. Like the COVID-19 pandemic, any significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which COVID-19 will impact the Company’s long-term results will depend on future developments, which are highly uncertain and cannot be predicted, including new developments regarding continued distribution of the COVID-19 vaccine, new information which may emerge concerning the severity of the coronavirus, prevalence of new COVID-19 cases and actions taken to contain the coronavirus or its impact, among others. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes some of the disclosure requirements related to fair value measurements related to the Level 1, 2 and 3 investments. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and for interim periods within that fiscal year. The Company has adopted ASU No. 2018-13 on the financial statement. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018, |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Marketable Securities | The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net earnings (losses) on marketable securities $ (56,000) $ (13,000) $ 56,000 $ (5,000) Marketable Securities As of Cost Fair Market Value April 30, 2021 $ 1,013,000 $ 1,317,000 October 31, 2020 $ 4,835,000 $ 5,113,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of April 30, 2021 and October 31, 2020: April 30, 2021 October 31, 2020 Raw Materials $ 5,672,109 $ 4,977,047 Work in Process 3,019,641 1,964,403 Finished Goods 6,017,695 1,405,314 Totals $ 14,709,445 $ 8,346,764 |
Commitments, Contingencies, A_2
Commitments, Contingencies, Agreements and Related Party (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | Approximate sales and marketing fees related to the agreements in place are as follows: Three Months Ended April 30, Six Months Ended April 30, 2021 2020 2021 2020 Sales ethanol $ 44,854,000 $ 25,913,000 $ 85,212,000 $ 71,474,000 Sales distiller grains 12,345,000 7,557,000 22,669,000 17,498,000 Sales corn oil 3,139,000 1,413,000 5,506,000 3,633,000 Marketing fees-ethanol $ 64,000 $ 40,000 $ 127,000 $ 100,000 Marketing fees-distiller grains 59,000 50,000 125,000 124,000 Marketing fees-corn oil 14,000 10,000 30,000 30,000 As of April 30, 2021 October 31, 2020 Amount due from RPMG $ 4,488,000 $ 7,326,000 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At April 30, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month period ended April 30: 2021 $ 1,123,310 2022 874,080 2023 445,500 2024 16,800 Total lease commitments $ 2,459,690 A reconciliation of the undiscounted future payments in the schedule above and the lease liabilities recognized in the consolidated balance sheet as of April 30, 2021, is shown below. Undiscounted future payments $ 2,459,690 Discount effect (146,158) Discounted future payments $ 2,313,532 |
Risk Management (Tables)
Risk Management (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Risk Management [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended April 30, 2021 and 2020 and the fair value of derivatives as of April 30, 2021 and October 31, 2020: Income Statement Classification Realized Gain (Loss) Change in Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity Contracts for the Revenue $ (210,000) $ (453,000) $ (663,000) three months ended April 30, 2021 Cost of Goods Sold (3,326,000) (2,303,000) (5,629,000) Total $ (3,536,000) $ (2,756,000) $ (6,292,000) Commodity Contracts for the Revenue $ 601,000 $ (26,000) $ 575,000 three months ended April 30, 2020 Cost of Goods Sold 1,198,000 (384,000) 814,000 Total $ 1,799,000 $ (410,000) $ 1,389,000 Commodity Contracts for the Revenue $ (210,000) $ (542,000) $ (752,000) six months ended April 30, 2021 Cost of Goods Sold (5,565,000) (4,622,000) (10,187,000) Total $ (5,775,000) $ (5,164,000) $ (10,939,000) Commodity Contracts for the Revenue $ 163,000 $ 377,000 $ 540,000 six months ended April 30, 2020 Cost of Goods Sold 2,574,000 (1,470,000) 1,104,000 Total $ 2,737,000 $ (1,093,000) $ 1,644,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Balance Sheet Classification April 30, 2021 October 31, 2020 Futures and option contracts In gain position $ 455,000 $ 470,000 In loss position (5,438,000) (290,000) Cash held by (due to) broker 5,859,000 683,000 Current Asset $ 876,000 $ 863,000 |
Long-term Purchase Commitment | Commitments Through Amount Sale commitments Corn Oil - fixed price May 2021 $ 1,594,000 Distiller Grains - fixed price May 2021 3,816,000 Purchase commitments Corn - fixed price April 2022 $ 20,780,000 Corn - basis contract July 2021 6,354,000 Natural gas - fixed price February 2022 2,915,000 Denaturant - fixed price September 2021 1,172,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Marketable securities: Assets, April 30, 2021 $ 1,317,000 $ 1,317,000 $ — $ — Assets, October 31, 2020 5,113,000 5,113,000 — — Derivative financial instruments: April 30, 2021 Assets $ 455,000 $ 455,000 $ — $ — Liabilities 5,439,000 3,530,000 1,909,000 — October 31, 2020 Assets $ 470,000 $ 470,000 $ — $ — Liabilities (290,000) (149,000) (141,000) — |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Investments [Abstract] | |
Schedule of Equity Method Investments | Condensed, combined unaudited financial information of the Company’s investments in Absolute Energy, Homeland Energy Solutions, Guardian Energy, Lawrenceville Tank and RPMG is as follows (in 000’s): Balance Sheet March 31, 2021 September 30, 2020 Current Assets $ 378,693 $ 285,395 Other Assets 241,777 246,389 Current Liabilities 238,043 168,842 Long-term Debt 68,126 47,529 Members’ Equity 314,301 315,413 Three Months Ended March 31, Six Months Ended March 31, Income Statement 2021 2020 2021 2020 Revenue $ 261,557 $ 177,082 $ 471,255 $ 394,124 Gross Profit (Loss) 23,690 (9,499) 52,620 13,753 Net Income (Loss) 21,065 (12,814) 36,205 8,248 The Company recorded equity in net income of approximately (in 000's): Three Months Ended April 30, Six Months Ended April 30, Equity in Net Income (Loss) 2021 2020 2021 2020 Absolute Energy $ 258 $ (329) $ 876 $ 148 Guardian Energy — — — 959 Homeland Energy Solutions 457 (386) 524 139 Other 125 235 187 289 Total $ 840 $ (480) $ 1,587 $ 1,535 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated | The following table sets forth the Company’s total assets by operating segment: April 30, 2021 October 31, 2020 Total assets: Production $ 107,871,741 $ 114,069,070 Ethanol production investments 377,798,022 358,692,270 All Others 242,671,698 173,092,120 Reconciliation (595,449,488) (506,764,519) $ 132,891,973 $ 139,088,941 |
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial data for the Company’s reportable segments: Three Months Ended April 30, 2021 2020 Net Sales Production $ 59,659,528 $ 35,154,653 Ethanol production investments 257,580,236 173,106,497 All Others 3,976,566 3,976,043 Reconciliation (261,556,802) (177,082,540) Total Net Sales $ 59,659,528 $ 35,154,653 Net Income (Loss) Production $ (97,590) $ (7,336,764) Ethanol production investments 19,305,224 (13,581,164) All Others 1,760,021 767,364 Reconciliation (20,190,380) 12,333,156 Total Net Income (Loss) $ 777,275 $ (7,817,408) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Production (Details) gal in Millions | 6 Months Ended |
Apr. 30, 2021companygal | |
Product Information [Line Items] | |
Number of entities | company | 5 |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual production capacity | gal | 120 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Grant Receivable and Deferred Revenue (Details) | 6 Months Ended |
Apr. 30, 2021USD ($) | |
Accounting Policies [Abstract] | |
Grants receivable | $ 1,486,000 |
Grant agreement, tax increment financing monies, period | 10 years |
Grant agreement, discount rate | 5.00% |
Deferred revenue | $ 1,486,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Property and Equipment (Details) - Property, Plant and Equipment [Member] | 6 Months Ended |
Apr. 30, 2021 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Marketable securities, gain (loss) | $ (56,000) | $ (13,000) | $ 56,000 | $ (5,000) | |
Marketable securities | 1,317,000 | 1,317,000 | $ 5,113,000 | ||
Mutual Fund [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Marketable securities | $ 1,013,000 | $ 1,013,000 | $ 4,835,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Concentration Risk (Details) | 6 Months Ended |
Apr. 30, 2021 | |
Concentration Risk [Line Items] | |
Document Period End Date | Apr. 30, 2021 |
Revenue, Product and Service Benchmark [Member] | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 75.00% |
Revenue, Product and Service Benchmark [Member] | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 20.00% |
Revenue, Product and Service Benchmark [Member] | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 5.00% |
Cost of Goods and Service Benchmark [Member] | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 90.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Accounts Receivable (Details) | 6 Months Ended |
Apr. 30, 2021USD ($) | |
Accounts Receivable [Abstract] | |
Accounts Receivable [Policy Text Block] | Accounts Receivable Credit sales are made primarily to one customer, and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Investments (Details) | Apr. 30, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 20.00% |
Inventory (Details)
Inventory (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2021 | Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 5,672,109 | $ 4,977,047 |
Work in Process | 3,019,641 | 1,964,403 |
Finished Goods | 6,017,695 | 1,405,314 |
Totals | $ 14,709,445 | $ 8,346,764 |
Document Period End Date | Apr. 30, 2021 |
Debt (Details)
Debt (Details) - USD ($) | Aug. 01, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | May 25, 2021 | Feb. 09, 2021 | Oct. 31, 2020 | Sep. 01, 2020 | Apr. 07, 2020 |
Debt Instrument [Line Items] | ||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ 860,500 | $ 0 | ||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ 860,500 | $ 0 | ||||||
Farm Credit Services of America [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 35,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 340.00% | 340.00% | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 351.00% | 351.00% | ||||||||
Long-term Debt | $ 0 | $ 0 | $ 0 | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||
Farm Credit Services of America [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Periodic Payment, Principal | $ 5,000,000 | |||||||||
Cresco Union Savings Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 838,000 | $ 860,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | ||||||||
Gain (Loss) on Extinguishment of Debt | $ 860,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | $ 860,000 | |||||||||
Cresco Union Savings Bank [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 838,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Document Period End Date | Apr. 30, 2021 | ||||
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | $ 11,798,000 | $ 9,130,000 | $ 23,788,281 | $ 20,172,000 | |
Amount owed to related parties | $ 473,000 | $ 473,000 | $ 593,000 |
Commitments, Contingencies, A_3
Commitments, Contingencies, Agreements and Related Party (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Current planned expansion project costs | $ 10,183,996 | $ 10,183,996 | $ 3,189,865 | ||
Costs incurred related to expansion project | $ 9,117,000 | ||||
Document Period End Date | Apr. 30, 2021 | ||||
Commitments to Complete Contracts in Process | 13.3 million | ||||
RPMG | |||||
Related Party Transaction [Line Items] | |||||
Amount due from RPMG | 4,488,000 | $ 4,488,000 | $ 7,326,000 | ||
Ethanol [Member] | RPMG | |||||
Related Party Transaction [Line Items] | |||||
Sales | 44,854,000 | $ 25,913,000 | 85,212,000 | $ 71,474,000 | |
Marketing fees | 64,000 | 40,000 | 127,000 | 100,000 | |
Distillers Grains [Member] | RPMG | |||||
Related Party Transaction [Line Items] | |||||
Sales | 12,345,000 | 7,557,000 | 22,669,000 | 17,498,000 | |
Marketing fees | 59,000 | 50,000 | 125,000 | 124,000 | |
Corn Oil [Member] | RPMG | |||||
Related Party Transaction [Line Items] | |||||
Sales | 3,139,000 | 1,413,000 | 5,506,000 | 3,633,000 | |
Marketing fees | $ 14,000 | $ 10,000 | $ 30,000 | $ 30,000 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Leases [Abstract] | |||||
Operating lease, term | 5 years | 5 years | |||
Rent expense | $ 449,000 | $ 365,000 | $ 675,000 | $ 719,000 | |
Operating lease, weighted average remaining lease term | 1 year 10 months 9 days | 1 year 10 months 9 days | |||
Lessee, Operating Lease, Discount Rate | 495.00% | 495.00% | |||
Initial Right-of-use asset and liability recorded | $ 0 | $ 2,889,785 | |||
Right of use asset operating leases | $ 2,313,532 | $ 2,313,532 | $ 2,324,631 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Minimum Rental Commitments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Payments | $ 449,000 | $ 365,000 | $ 675,000 | $ 719,000 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2021 | 1,123,310 | 1,123,310 | ||
2022 | 874,080 | 874,080 | ||
2023 | 445,500 | 445,500 | ||
2024 | 16,800 | 16,800 | ||
Total lease commitments | $ 2,459,690 | $ 2,459,690 |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Reconciliation of the Undiscounted Future Payments (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Leases [Abstract] | ||
Undiscounted future payments | $ 2,459,690 | |
Discount effect | (146,158) | |
Right of use asset operating leases | $ 2,313,532 | $ 2,324,631 |
Risk Management Derivative Inst
Risk Management Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | $ (3,536,000) | $ 1,799,000 | $ (5,775,000) | $ 2,737,000 |
Change in Unrealized Gain (Loss) | (2,756,000) | (410,000) | (5,164,000) | (1,093,000) |
Total Gain (Loss) | (6,292,000) | 1,389,000 | (10,939,000) | 1,644,000 |
Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | (210,000) | 601,000 | (210,000) | 163,000 |
Change in Unrealized Gain (Loss) | (453,000) | (26,000) | (542,000) | 377,000 |
Total Gain (Loss) | (663,000) | 575,000 | (752,000) | 540,000 |
Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | (3,326,000) | 1,198,000 | (5,565,000) | 2,574,000 |
Change in Unrealized Gain (Loss) | (2,303,000) | (384,000) | (4,622,000) | (1,470,000) |
Total Gain (Loss) | $ (5,629,000) | $ 814,000 | $ (10,187,000) | $ 1,104,000 |
Risk Management Derivative In_2
Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 875,597 | $ 862,516 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Futures and option contracts | 455,000 | 470,000 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Futures and option contracts | 5,438,000 | 290,000 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash held by (due to) broker | 5,859,000 | 683,000 |
Derivative instruments | $ 876,000 | $ 863,000 |
Risk Management Long Term Purch
Risk Management Long Term Purchase Commitments (Details) | 6 Months Ended |
Apr. 30, 2021USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Document Period End Date | Apr. 30, 2021 |
Related Parties | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments, Amount | $ 3,926,000 |
Fixed Price [Member] | Corn Oil [Member] | |
Long-term Purchase Commitment [Line Items] | |
Sale commitments, Amount | 1,594,000 |
Fixed Price [Member] | Distillers Grains [Member] | |
Long-term Purchase Commitment [Line Items] | |
Sale commitments, Amount | 3,816,000 |
Fixed Price [Member] | Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments, Amount | 20,780,000 |
Fixed Price [Member] | Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments, Amount | 2,915,000 |
Fixed Price [Member] | Denaturant | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments, Amount | 1,172,000 |
Basis Contract [Member] | Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments, Amount | $ 6,354,000 |
Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage, next 12 months | 19.00% |
Derivative, term of contract | 12 months |
Ethanol [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage, next 12 months | 2.00% |
Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage, next 12 months | 7.00% |
Derivative, term of contract | 12 months |
Product usage, percentage, next 24 months | 3.00% |
Long-term purchase commitment, period | 24 months |
Product Usage, Percentage, Beyond 24 months | 0.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable securities | $ 1,317,000 | $ 5,113,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable securities | 1,317,000 | 5,113,000 |
Derivative Assets | 455,000 | 470,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable securities | 5,113,000 | |
Derivative Assets | 455,000 | 470,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liabilities | 5,439,000 | (290,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liabilities | 3,530,000 | (149,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liabilities | 1,909,000 | (141,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liabilities | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||||
Apr. 30, 2021 | Mar. 31, 2021 | Apr. 30, 2020 | Mar. 31, 2020 | Apr. 30, 2021 | Mar. 31, 2021 | Apr. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2021 | Oct. 31, 2020 | Sep. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | |
Balance Sheet | |||||||||||||
Current Assets | $ 32,060,304 | $ 32,060,304 | $ 42,422,107 | ||||||||||
Liabilities, Current | 11,064,785 | 11,064,785 | 11,194,110 | ||||||||||
Liabilities, Noncurrent | 3,704,596 | 3,704,596 | 3,582,326 | ||||||||||
Members' Equity (19,873,000 units issued and outstanding) | 118,122,592 | $ 114,030,653 | 118,122,592 | $ 114,030,653 | $ 117,345,317 | $ 124,312,505 | $ 123,835,361 | $ 120,421,143 | |||||
Revenues | 59,659,528 | 35,154,653 | 113,104,185 | 92,586,855 | |||||||||
Gross Profit | 1,234,434 | (6,707,483) | (4,209,231) | (4,101,618) | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 840,000 | (480,000) | 1,587,000 | 1,535 | |||||||||
Equity Method Investment, Nonconsolidated Investee, Other | |||||||||||||
Balance Sheet | |||||||||||||
Current Assets | $ 378,693,000 | $ 378,693,000 | $ 285,395,000 | ||||||||||
Assets, Noncurrent | 241,777,000 | 241,777,000 | 246,389,000 | ||||||||||
Liabilities, Current | 238,043,000 | 238,043,000 | 168,842,000 | ||||||||||
Liabilities, Noncurrent | 68,126,000 | 68,126,000 | 47,529,000 | ||||||||||
Members' Equity (19,873,000 units issued and outstanding) | 314,301,000 | 314,301,000 | $ 315,413,000 | ||||||||||
Revenues | 261,557,000 | $ 177,082,000 | 471,255,000 | $ 394,124,000 | |||||||||
Gross Profit | 23,690,000 | (9,499,000) | 52,620,000 | 13,753,000 | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 21,065,000 | $ (12,814,000) | $ 36,205,000 | $ 8,248,000 | |||||||||
Absolute Energy [Member] | |||||||||||||
Balance Sheet | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 258,000 | (329,000) | 876,000 | 148 | |||||||||
Guardian Energy [Member] | |||||||||||||
Balance Sheet | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 959 | |||||||||
Homeland Energy Solutions [Member] | |||||||||||||
Balance Sheet | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 457,000 | (386,000) | 524,000 | 139 | |||||||||
Other Investee [Member] | |||||||||||||
Balance Sheet | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 125,000 | $ 235,000 | $ 187,000 | $ 289 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Apr. 30, 2021USD ($)company | Apr. 30, 2020USD ($) | Oct. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of Operating Segments | company | 2 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Revenues | $ 59,659,528 | $ 35,154,653 | $ 113,104,185 | $ 92,586,855 | |||
Net Income | 777,275 | $ (2,992,588) | (7,817,408) | $ 3,414,218 | (2,215,313) | $ (4,403,190) | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Assets | 132,891,973 | 132,891,973 | $ 139,088,941 | ||||
Production Segment | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Revenues | 59,659,528 | 35,154,653 | |||||
Net Income | (97,590) | (7,336,764) | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Assets | 107,871,741 | 107,871,741 | 114,069,070 | ||||
Ethanol Production Investments Segment | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Revenues | 257,580,236 | 173,106,497 | |||||
Net Income | 19,305,224 | (13,581,164) | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Assets | 377,798,022 | 377,798,022 | 358,692,270 | ||||
Other Segments | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Revenues | 3,976,566 | 3,976,043 | |||||
Net Income | 1,760,021 | 767,364 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Assets | 242,671,698 | $ 242,671,698 | $ 173,092,120 | ||||
Net Sales | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Revenues | (261,556,802) | (177,082,540) | |||||
Net Income | $ (20,190,380) | $ 12,333,156 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Segment Reporting, Measurement Differences Between Segment and Consolidated Assets | (506,764,519) | (595,449,488) |