Heron Lake BioEnergy (HLBYL) 10-Q 17 Mar 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2021	Mar. 17, 2021
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Jan. 31, 2021
Entity Registrant Name	HERON LAKE BIOENERGY, LLC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001286964
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q1
Amendment Flag	false
Class A units
Document Information [Line Items]
Common stock, shares outstanding		62,932,107
Class B units
Document Information [Line Items]
Common stock, shares outstanding		15,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jan. 31, 2021	Oct. 31, 2020
Current Assets
Cash	$ 3,348,244	$ 3,276,301
Restricted cash	242,159	514,050
Accounts receivable	2,038,282	1,616,489
Inventory	8,128,065	7,063,675
Commodity derivative instruments	22,837	15,150
Prepaid expenses and other current assets	1,124,050	782,280
Total current assets	14,903,637	13,267,945
Property and Equipment, net	38,889,918	40,187,733
Operating lease right of use asset, net	8,961,285	9,291,249
Other Assets	333,254	333,254
Total Assets	63,088,094	63,080,181
Current Liabilities
Current maturities of long-term debt	18,146,353	11,492,059
Checks drawn in excess of bank balance	1,652,836	692,984
Accounts payable	3,843,683	6,916,045
Commodity derivative instruments	143,900	173,928
Accrued expenses	437,860	496,513
Operating lease, current liabilities	1,360,691	1,344,258
Total current liabilities	25,585,323	21,115,787
Long-Term Debt, less current portion	148,923	295,611
Operating leases, long-term liabilities	7,600,594	7,946,991
Other Long-Term Liabilities	608,405	596,924
Commitments and Contingencies
Members' Equity
Members' equity attributable to Heron Lake BioEnergy, LLC consists of 77,932,107 units issued and outstanding at both January 31, 2021 and October 31, 2020.	29,144,849	33,124,868
Total Liabilities and Members' Equity	$ 63,088,094	$ 63,080,181

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Jan. 31, 2021	Oct. 31, 2020
Consolidated Balance Sheets
Members' Equity, units issued	77,932,107	77,932,107
Members' Equity, units outstanding	77,932,107	77,932,107

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Consolidated Statements of Operations
Revenues	$ 24,441,069	$ 26,680,280
Cost of Goods Sold	27,375,537	28,129,771
Gross Loss	(2,934,468)	(1,449,491)
Operating Expenses	(1,087,891)	(899,445)
Operating Loss	(4,022,359)	(2,348,936)
Other Income (Expense)
Interest income	879	11,581
Interest expense	(102,412)	(11,531)
Other income, net	143,873	339
Total other income, net	42,340	389
Net Loss	(3,980,019)	(2,348,547)
Less: Net Income Attributable to Non-controlling Interest		(67,827)
Net Loss Attributable to Heron Lake BioEnergy, LLC	$ (3,980,019)	$ (2,416,374)
Weighted Average Units Outstanding—Basic and diluted (Class A and B)	77,932,107	77,932,107
Net Loss Per Unit Attributable to Heron Lake BioEnergy, LLC- Basic and Diluted (Class A and B)	$ (0.05)	$ (0.03)

Consolidated Statements of Chan

Consolidated Statements of Changes in Members' Equity - USD ($)	Class A units	Class B units	Members' Equity attributable to Heron Lake BioEnergy LLC	Noncontrolling Interest	Total
Balance at Oct. 31, 2019			$ 47,599,276	$ 2,001,575	$ 49,600,851
Balance (in units) at Oct. 31, 2019	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Acquisition of non-controlling interest			(155,598)	(2,069,402)	(2,225,000)
Net income attributable to non-controlling interest				$ 67,827	67,827
Net loss attributable to Heron Lake BioEnergy, LLC			(2,416,374)		(2,416,374)
Balance at Jan. 31, 2020			45,027,304		45,027,304
Balance (in units) at Jan. 31, 2020	62,932,107	15,000,000
Balance at Oct. 31, 2020			33,124,868		$ 33,124,868
Balance (in units) at Oct. 31, 2020	62,932,107	15,000,000			77,932,107
Increase (Decrease) in Stockholders' Equity
Net loss attributable to Heron Lake BioEnergy, LLC			(3,980,019)		$ (3,980,019)
Balance at Jan. 31, 2021			$ 29,144,849		$ 29,144,849
Balance (in units) at Jan. 31, 2021	62,932,107	15,000,000			77,932,107

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Cash Flow From Operating Activities
Net loss	$ (3,980,019)	$ (2,348,547)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,283,857	1,316,198
Loss on disposal of asset	21,728
Change in fair value of commodity derivative instruments	2,868,176	162,620
Change in operating assets and liabilities:
Accounts receivable	(421,793)	3,902,786
Inventory	(1,064,390)	(1,475,699)
Commodity derivative instruments	(2,905,891)	(198,295)
Prepaid expenses and other current assets	(341,770)	(233,232)
Accounts payable	(931,737)	(2,136,555)
Accrued expenses	(58,653)	(42,339)
Accrued railcar rehabilitation costs	11,481	11,481
Net cash used in operating activities	(5,519,011)	(1,041,582)
Cash Flows from Investing Activities
Capital expenditures	(2,148,395)	(208,285)
Net cash used in investing activities	(2,148,395)	(208,285)
Cash Flows from Financing Activities
Checks drawn in excess of bank balance	959,852	724,292
Proceeds from long-term debt	2,151,673	7,039,706
Payments on long-term debt	(644,067)	(6,969,735)
Proceeds from Related Party Debt	5,000,000
Acquisition of non-controlling interest		(2,000,000)
Net cash provided by (used in) financing activities	7,467,458	(1,205,737)
Net decrease in cash and restricted cash	(199,948)	(2,455,604)
Cash and Restricted Cash - Beginning of period	3,790,351	4,593,811
Cash and Restricted Cash - End of period	3,590,403	2,138,207
Supplemental Disclosure of Cash Flow Information
Interest expense	$ 99,717	$ 11,531

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	Jan. 31, 2021	Oct. 31, 2020	Jan. 31, 2020	Oct. 31, 2019
Reconciliation of Cash and Restricted Cash
Cash - Balance Sheet	$ 3,348,244	$ 3,276,301	$ 2,095,986
Restricted Cash - Balance Sheet	242,159	514,050	42,221
Cash and Restricted Cash	$ 3,590,403	$ 3,790,351	$ 2,138,207	$ 4,593,811

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. Nature of Business Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillers’ grains with solubles and corn oil as co-products of ethanol production. Heron Lake BioEnergy, LLC’s wholly owned subsidiary, HLBE Pipeline Company, LLC (“HLBE Pipeline Company”), is the sole owner of Agrinatural Gas, LLC (“Agrinatural”). Agrinatural is a natural gas pipeline company that was formed to construct, own, and operate the natural gas pipeline that provides natural gas to the Company’s ethanol production facility and other customers through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota. Beginning as of December 11, 2019, HLBE holds a 100% interest in Agrinatural. Basis of Presentation and Principles of Consolidation The condensed consolidated unaudited financial statements as of January 31, 2021 include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company (collectively, the “Company”). As of December 11, 2019, the Company acquired the 27% interest in Agrinatural that was not previously in its control. As such, results prior to December 11, 2019 reflect earnings attributable to the non-controlling interest separately in the condensed consolidated statement of operations during fiscal year 2020. All significant intercompany balances and transactions are eliminated in consolidation. The condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and 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 condensed consolidated unaudited financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2020, contained in the Company’s annual report on Form 10-K. In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position, and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year. Accounting Estimates Management uses estimates and assumptions in preparing these condensed consolidated unaudited 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. The Company uses estimates and assumptions in accounting for significant matters including, among others, the economic lives of property and equipment, the assumptions used in the analysis of impairment of long-lived assets, valuation of commodity derivative instruments, inventory, inventory purchase and sales commitments, evaluation of railcar rehabilitation costs and evaluation of going concern. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Our contracts primarily consist of agreements with marketing companies and other customers as described below. Our performance obligations consist of the delivery of ethanol, distillers' grains, and corn oil to our customers. Our customers primarily consist of three distinct marketing companies as discussed below. The consideration we receive for these products reflects an amount that the company expects to be entitled to in exchange for those products, based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. Our contracts have specific delivery modes, rail or truck, and dates. Revenue is recognized when the Company delivers the products to the mode of transportation specified in the contract, at the transaction price established in the contract, net of commissions, fees, and freight. We sell each of the products via different marketing channels as described below. · Ethanol. The Company sells its ethanol via a marketing agreement with Eco-Energy, Inc. Eco-Energy sells one hundred percent of the Company’s ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Eco-Energy and the Company. Our performance obligations consist of our obligation to deliver ethanol to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. The marketing agreement calls for control and title to pass to Eco-Energy once a rail car is released to the railroad or a truck is released from the Company’s scales. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and fees. · Distillers’ grains. The Company engages another third-party marketing company, Gavilon, Inc, to sell one hundred percent of the distillers grains it produces at the plant. Gavilon takes title and control once a rail car is released to the railroad or a truck is released from the Company’s scales. Prices are agreed upon between Gavilon and the Company. Our performance obligations consist of our obligation to deliver distillers grains to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Distillers’ corn oil (corn oil). The Company sells one hundred percent of its corn oil production to RPMG, Inc. The process for selling corn oil is the same as our distillers’ grains. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Agrinatural generates revenue from the transportation of natural gas to residential and commercial customers. Revenue is recognized at the point when natural gas is delivered at the transaction price established in the contract. Inventory Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers’ grains, and corn oil. Derivative Instruments From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives on the balance sheets at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales.” Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 6. Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, establishes the standards for reporting information about segments in financial statements. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results criteria set forth in ASC 280, the Company has two reportable operating segments for financial reporting purposes. · Ethanol Production . Based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plant, including the production and sale of ethanol and its co-products, are aggregated into one financial reporting segment. · Natural Gas Pipeline . The Company has majority ownership in Agrinatural, through its wholly owned subsidiary, HLBE Pipeline, LLC, and operations of Agrinatural’s natural gas pipeline are aggregated into another financial reporting segment.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Jan. 31, 2021
GOING CONCERN
GOING CONCERN	2. The financial statements have been prepared on a going-concern basis, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring operating and cash flow losses related to difficult market conditions and operating performance. The Company was out of compliance with certain debt covenants on January 31, 2021, for which a waiver was obtained from the lender. The Company has forecasted that it is probable that there will be future instances of noncompliance with debt covenants within the next twelve months. These conditions result in the classification of all debt with the lender as current as of January 31, 2021. The Company has insufficient cash on hand and additional borrowing capacity, and current forecasts indicate insufficient cash flows from operations, to repay the debt if it were to come due as a result of covenant noncompliance. These factors raise substantial doubt about the Company's ability to continue as a going concern. While the Company believes the replacement of the boiler has improved the operating performance of the plant, and led to lower operating costs, market conditions have resulted in losses. The Company intends to source other capital sources, which may include re-negotiating their debt agreements and terms or seek potential equity solutions. At this time, there are no commitments to do so and we may not be successful in doing so.

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	3 Months Ended
	Jan. 31, 2021
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES	3. The Company has certain risks and uncertainties that it experiences during volatile market conditions. These volatilities can have a severe impact on operations. The Company’s revenues are derived from the sale and distribution of ethanol and distillers’ grains to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers. Ethanol sales average 70% to 90% of total revenues and corn costs average 70% to 90% of cost of goods sold. The Company’s operating and financial performance is largely driven by the prices at which it sells ethanol, distillers’ grains, and corn oil and the related costs of corn. The price of ethanol is influenced by factors such as supply and demand, the weather, government policies and programs, unleaded gasoline prices, and the petroleum markets as a whole. 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, the weather, government policies and programs, and a risk management program used to protect against the price volatility of these commodities. Market fluctuations in the price of and demand for these commodities may have further significant adverse effects on the Company’s operations, profitability and the availability and adequacy of cash flow to meet the Company’s working capital requirements. The Company's risk management program is used to protect against the price volatility of these commodities. The Company, and the ethanol industry as a whole, experienced significant adverse conditions throughout most of 2020 and into 2021 as a result of industry-wide record low ethanol prices due to reduced demand and high industry inventory levels, which are compounded by the impact of the novel coronavirus ("Covid-19"). These factors resulted in prolonged negative operating margins, significantly lower cash flow from operations and substantial net losses.

REVENUE

REVENUE	3 Months Ended
	Jan. 31, 2021
REVENUE
REVENUE	4. Revenue by Source All revenues from contracts with customers under ASC Topic 606 are recognized at a point in time. The following table disaggregates revenue by major source for the three months ended January 31, 2021 and 2020: Three Months Ended January 31, 2021 (unaudited) Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Three Months Ended January 31, 2020 (unaudited) Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Payment Terms The Company has contractual payment terms with each respective marketer that sells ethanol, distillers’ grains and corn oil. These terms are 10 calendar days after the transfer of control date. The Company has contractual payment terms with the natural gas customers of 20 days. Shipping and Handling Costs 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 goods sold. Accordingly, amounts billed to customers for such costs are included as a component of revenue.

INVENTORY

INVENTORY	3 Months Ended
	Jan. 31, 2021
INVENTORY
INVENTORY	5. Inventory consisted of the following: January 31, 2021 October 31, 2020 (unaudited) Raw materials $ 1,576,160 $ 2,440,997 Work in process 805,008 713,037 Finished goods 4,463,703 2,677,095 Supplies 1,283,194 1,232,546 Totals $ 8,128,065 $ 7,063,675 The Company performs a lower of cost or net realizable value analysis on inventory to determine if the market values of certain inventories are less than their carrying value, which is attributable primarily to decreases in market prices of corn and ethanol.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Jan. 31, 2021
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	6. DERIVATIVE INSTRUMENTS As of January 31, 2021, the total notional amount of the Company’s outstanding corn derivative instruments was approximately 730,000 bushels, comprised of long corn futures positions on 340,000 bushels that were entered into to hedge forecasted ethanol sales through July 2021, and short corn futures positions on 390,000 bushels that were entered into to hedge forecasted corn purchases through July 2022. Additionally, there are corn options positions of 3,710,000 bushels through December 2021. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of January 31, 2021, the Company had approximately $242,000 of cash collateral (restricted cash) related to derivatives held by a broker. The following table provides detail regarding the Company’s derivative instruments at January January 31, 2021, none of which are designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 143,900 Ethanol contracts Commodity derivative instruments 22,837 — Totals $ 22,837 $ 143,900 As of October 31, 2020, the total notional amount of the Company’s outstanding corn derivative instruments was approximately 2,095,000 bushels, comprised of long corn futures positions on 325,000 bushels that were entered into to hedge forecasted ethanol sales through March 2021, and short corn futures positions on 1,770,000 bushels that were entered into to hedge forecasted corn purchases through July 2022 and are directly related to corn forward contracts. Additionally, there are corn options positions of 1,380,000 bushels through March 2021. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of October 31, 2020, the Company had approximately $514,000 in cash collateral (restricted cash) related to derivates held by a broker. The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 173,928 Ethanol contracts Commodity derivative instruments 15,150 — Totals $ 15,150 $ 173,928 The following tables provide detail regarding the gains (losses) from Company’s derivative financial instruments in its condensed consolidated unaudited statements of operations, none of which are designated as hedging instruments: Consolidated Statement of Three Months Ended January 31, Operations Location 2021 2020 Corn contracts Cost of goods sold $ (2,924,654) $ (80,768) Ethanol contracts Revenues 56,478 (81,852) Total loss $ (2,868,176) $ (162,620)

FAIR VALUE

FAIR VALUE	3 Months Ended
	Jan. 31, 2021
FAIR VALUE
FAIR VALUE	7. The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at January 31, 2021: Fair Value Measurement Using Carrying Amount in Quoted Prices in Significant Other Significant Consolidated Active Markets Observable Inputs Unobservable Inputs Financial Assets: Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Ethanol $ 22,837 $ 22,837 $ 22,837 $ — $ — Financial Liabilities: Commodity Derivative instruments - Corn $ 143,900 $ 143,900 $ 143,900 $ — $ — Accounts Payable (1) $ 40,411 $ 40,411 $ — $ 40,411 $ — The following table sets forth, by level, the Company assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020: Fair Value Measurement Using Carrying Amount in Quoted Prices in Significant Other Significant Consolidated Active Markets Observable Inputs Unobservable Inputs Financial Assets: Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Ethanol $ 15,150 $ 15,150 $ 15,150 $ — $ — Financial Liabilities: Commodity Derivative instruments - Corn $ 173,928 $ 173,928 $ 173,928 $ — $ — Accounts Payable (1) $ 553,248 $ 553,248 $ — $ 553,248 $ — (1) Accounts payable is generally stated at historical amounts with the exception of amounts in this table related to certain delivered inventory for which the payable fluctuates based on the changes in commodity prices. These payables are hybrid financial instruments for which the company has elected the fair value option. We determine the fair value of commodity derivative instruments by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange. We determine the fair value of Level 2 accounts payable based on nearby futures values, plus or minus nearby basis.

DEBT FACILITIES

DEBT FACILITIES	3 Months Ended
	Jan. 31, 2021
DEBT FACILITIES
DEBT FACILITIES	8. Long-term debt consists of the following: January 31, 2021 October 31, 2020 Amended revolving term note payable to lending institution, see terms below. $ 9,699,032 $ 7,891,426 Single advance term note payable to lending institution, see terms below. 2,700,000 3,000,000 Assessment payable as part of water treatment agreement, due in semi-annual installments of $189,393 with interest at 6.55%, enforceable by statutory lien, with the final payment due in October 2021. The Company made deposits for one years' worth of debt service payments of approximately $364,000, which is included with other current assets that are held on deposit to be applied with the final payments of the assessment. 300,551 300,551 SBA Paycheck Protection Program Loan, see terms below. 595,693 595,693 Granite Falls Energy note, see terms below. 5,000,000 — Totals 18,295,276 11,787,670 Less amounts due within one year 18,146,353 11,492,059 Net long-term debt $ 148,923 $ 295,611 Revolving Term Note The 2020 Credit Facility includes an amended and restated revolving term loan with a $13 million principal commitment. The loan is secured by substantially all of the Company’s assets, including a subsidiary guarantee. The 2020 Credit Facility contains customary covenants, including restrictions on the payment of dividends and loans and advances to Agrinatural, and maintenance of certain financial ratios including minimum working capital, minimum net worth and a debt service coverage ratio as defined by the credit facility. During the second fiscal quarter of 2020, the 2020 Credit Facility was amended to reduce the working capital covenant to $8 million, from the original $10 million working capital covenant, for the period of April 30, 2020 through December 31, 2020, and increasing to $10 million beginning January 1, 2021. Additionally, the amendment excludes current portion of leases from the calculation of current liabilities. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges, or penalties. The Company was out of compliance with certain debt covenants on January 31, 2021, for which a waiver was obtained from the lender. During February 2021, the 2020 Credit Facility was amended to reduce the working capital covenant to $8 million through May 31, 2021 and increasing to $10 million beginning June 30, 2021. The 2020 Credit Facility was also amended to decrease the net worth requirement from $32 million to $28 million. As part of the 2020 Credit Facility closing, the Company entered into an amended administrative agency agreement with CoBank, ACP (“CoBank”). As a result, CoBank will continue act as the agent for the lender with respect to the 2020 Credit Facility. The Company agreed to pay CoBank an annual fee of $2,500 for its services as administrative agent. Under the terms of the amended revolving term loan, the Company may borrow, repay, and reborrow up to the aggregate principal commitment amount of $13,000,000. Final payment of amounts borrowed under the amended revolving term loan is due December 1, 2022. Interest on the amended revolving term loan accrues at a variable weekly rate equal to 3.35% above the higher of 0.00% or the One-Month London Interbank Offered Rate (“LIBOR”) Index rate, which totaled 3.48% at January 31, 2021 . The Company also agreed to pay an unused commitment fee on the unused available portion of the amended revolving term loan commitment at the rate of 0.500% per annum, payable monthly in arrears. Single Advance Term Note In June 2020, the Company entered into a single advance term note with a $3,000,000 principal commitment, with the purpose to finance the construction of a new grain bin and provide principal reduction on the Revolving Term Note. The interest rate is fixed at 3.80%. Principal with interest is to be paid in 10 consecutive, semi-annual installments, with the first installment due on December 20, 2020 and the last installment due on June 20, 2025. The note is secured as provided in the 2020 Credit Facility. Short Term Revolving Promissory Note In February 2021, the Company entered into a revolving promissory note with its lender in order to finance the operating needs of the Company. The revolving promissory note is subject to the 2020 Credit Facility. Under the terms, the Company may borrow, repay and reborrow up to the aggregate principal commitment amount of $5,000,000. Final payment of amounts borrowed under the revolving promissory note is June 1, 2021. Interest of the loan accrues at a variable weekly rate equal to 3.35% above the higher of 0.00% or the One-Month London Interbank Offered Rate (“LIBOR”) Index rate and is payable monthly in arrears. In addition, the Company agreed to pay an unused commitment fee on the unused available portion of the loan at the rate of 0.50% per annum payable monthly in arrears. The Company has forecasted that it is probable that there will be future instances of non-compliance with debt covenants within the next twelve months. As a result, approximately $11,800,000 of long term debt has been reclassified as current maturities. SBA Paycheck Protection Program Loan In March 2020, Congress passed the Paycheck Protection Program, authorizing loans to small businesses for use in paying employees that they continue to employ throughout the COVID-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the Paycheck Protection Program are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. On April 18, 2020, the Company received a loan in the amount of $595,693 through the Paycheck Protection Program. The Company has applied for forgiveness of this loan and expects the loan to be forgiven in March 2021. To the extent it is not forgiven, HLBE would be required to repay that portion at an interest rate of 1% over a period of two years, with principal repayment installments in May 2021 with a final installment in May 2022. Also in February 2021, the Company received a second Paycheck Protection Program loan in the amount of $595,693. Management expects the entire loan will be used for payroll, utilities and interest; therefore, management anticipates that the loan will be substantially forgiven. To the extent it is not forgiven, the Company would be required to repay that portion at an interest rate of 1% Negotiable Promissory Note with GFE In December 2020, we entered into a negotiable promissory note with GFE with a $5,000,000 principal commitment. Interest on the loan accrues at a variable weekly rate equal to the higher of 1.00% or the One-Month LIBOR Index rate, plus 3.35%, which totaled 3.48% at January 31, 2021. The note was due on demand, and accrued interest must be paid in full the first business day of each month. The note is unsecured and may be prepaid at any time without penalty. In January 2021, we borrowed the $5,000,000 on the promissory note, which is classified as a current liability. In February 2021, GFE agreed to modify the promissory note to remove the due on demand feature, instead agreeing that GFE will not require any principal repayment on the loan until March 2023. Estimated annual maturities of long-term debt at January 31, 2021 are as follows based on the most recent debt agreements and violation of certain loan covenants: 2022 $ 18,146,353 2023 148,923 Total debt $ 18,295,276

LEASES

LEASES	3 Months Ended
	Jan. 31, 2021
LEASES
LEASES	9. The Company elected the following practical expedients allowable under ASC 842: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to only long-term (greater than one year) leases. The Company leases rail cars for its facility to transport ethanol and dried distillers’ grains to its end customers. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended January 31, 2021, the Company’s weighted average discount rate was 4.87%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining terms of approximately one to seven years. For the three months ended January 31, 2021, the weighted average remaining lease term was four years. The Company elected to use a portfolio approach for lease classification, which allows for an entity to group together leases with similar characteristics provided that its application does not create a material difference when compared to accounting for the leases at a contract level. For railcar leases, the Company elected to combine the railcars within each rider and account for each rider as an individual lease. The following table summarizes the remaining maturities of the Company’s operating lease liabilities as of January 31, 2021: Twelve Months Ended January 31, 2022 $ 1,767,000 2023 1,767,000 2024 1,757,250 2025 1,650,000 2026 1,650,000 Thereafter 1,750,000 Totals 10,341,250 Less: Amount representing interest 1,379,965 Lease liabilities $ 8,961,285 For the three months ended January 31, 2021 and 2020, the Company recorded operating lease costs of approximately $610,000 and $575,000, respectively, in cost of goods sold in the Company’s statement of operations, which approximates the cash paid for the period.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2021
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	10. Corn Forward Contracts At January 31, 2021, the Company had cash and basis contracts for forward corn purchase commitments for approximately 4,402,000 bushels for deliveries through July 2022. Given the uncertainty of future ethanol and corn prices, the Company could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts and its inventories using the lower of cost or net realizable value evaluation, similar to the method used on its inventory, and has determined that no impairment loss existed at January 31, 2021, and approximately $47,000 at October 31, 2020. Ethanol Forward Contracts At January 31, 2021, the Company had fixed and basis contracts to sell approximately $14,720,000 of ethanol for various delivery periods through March 2021, which approximates 97% of its anticipated ethanol sales for that period. Distillers’ Grains Forward Contracts At January 31, 2021, the Company had forward contracts to sell approximately $5,473,000 of distillers’ grains for delivery through September 2021, which approximates 27% of its anticipated distillers' grains sales during that period. Corn Oil Forward Contracts At January 31, 2021, the Company had forward contracts to sell approximately $435,000 of corn oil for delivery through February 2021, which approximates 75% of its anticipated corn oil sales for that period. Rail Car Rehabilitation Costs The Company leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, the Company is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. Prior to the year ending October 31, 2019, the Company believed ongoing repairs resulted in an insignificant future rehabilitation expense. During the year ending October 31, 2019, based on new information, we re-evaluated our assumptions and believe that it is probable that we may be assessed for damages incurred. Company management has estimated total costs to rehabilitate the cars at January 31, 2021 and October 31, 2020, to be approximately $608,000 and $597,000, respectively. During the quarter ended January 31, 2021 and 2020, the Company has recorded an expense in cost of goods of approximately $12,000 and $11,000, respectively.

MEMBERS' EQUITY

MEMBERS' EQUITY	3 Months Ended
	Jan. 31, 2021
MEMBERS' EQUITY.
MEMBERS' EQUITY	11. Heron Lake BioEnergy, LLC is authorized to issue up to 80,000,000 capital units, of which 65,000,000 have been designated Class A units and 15,000,000 have been designated as Class B units. Members of Heron Lake BioEnergy, LLC are holders of units who have been admitted as members and who hold at least 2,500 units. Any holder of units who is not a member will not have voting rights. Transferees of units must be approved by Heron Lake BioEnergy, LLC’s Board of Governors to become members. Members are entitled to one vote for each unit held. Subject to Heron Lake BioEnergy, LLC’s Member Control Agreement, all units share equally in the profits and losses and distributions of assets on a per unit basis. Heron Lake BioEnergy, LLC has a total of 62,932,107 Class A units and 15,000,000 Class B units issued and outstanding, for an aggregate total of 77,932,107 units issued and outstanding at January 31, 2021 and October 31, 2020. On December 11, 2019, HLBE Pipeline Company acquired the remaining non-controlling interest of Agrinatural for a total price of $2.225 million. The change of interest is recorded as an equity transaction in accordance with ASC 805.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Jan. 31, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	12. Granite Falls Energy, LLC The Company has a management services agreement with Granite Falls Energy, LLC (“GFE”, a related party). Under the terms of the management services agreement, GFE supplies its own personnel to act as part-time officers and managers of the Company for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager and the Company pays GFE 50% of the total salary, bonuses, and other expenses and costs incurred by GFE for the three management positions. The management services agreement automatically renews for successive one-year terms unless and until the Company or GFE gives the other party 90-days written notice of termination prior to expiration of the then current term. The management services agreement may also be terminated by either party for cause under certain circumstances. Total expenses under this agreement were approximately $119,000 and $123,000 for the three months ended January 31, 2021 and 2020, respectively, of which approximately $50,000 is included in accounts payable at January 31, 2021. In February 2020, Agrinatural entered into a natural gas local distribution company management agreement with GFE for, among other purposes, the purpose of sharing certain management employees. The agreement automatically renews for successive one-year terms unless and until Agrinatural or GFE gives the other party 30 days’ written notice of termination prior to expiration of the initial term or the start of a renewal term. The agreement may also be terminated by either party for cause under certain circumstances. Under the agreement, GFE supplies its personnel to act as part-time officers of Agrinatural for the positions of chief executive officer and chief financial officer. In return, Agrinatural pays GFE $9,000 per month, excluding fees for third-party services. GFE is responsible for and agreed to directly pay salary, wages, and/or benefits to the persons providing management services under the agreement. Total expenses under this agreement were approximately $27,000 for the three months ended January 31, 2021. Corn Purchases - Members The Company purchased corn from board members of approximately $3,742,000 and $5,065,000 for the three months ended January 31, 2021 and 2020, respectively.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Jan. 31, 2021
BUSINESS SEGMENTS
BUSINESS SEGMENTS	13. The Company groups its operations into the following two business segments: Ethanol Production Ethanol and co-product production and sales Natural gas pipeline Ownership and operations of natural gas pipeline Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The accounting policies for each segment are the same as those described in the summary of significant accounting policies. Segment income or loss does not include any allocation of shared-service costs. Segment assets are those that are directly used in or identified with segment operations. Inter-segment balances and transactions have been eliminated. The following tables summarize financial information by segment and provide a reconciliation of segment revenue, contribution to operating income (loss), and total assets: Three Months Ended January 31, 2021 January 31, 2020 Revenue: (unaudited) (unaudited) Ethanol production $ 24,034,209 $ 25,991,003 Natural gas pipeline 817,729 1,136,217 Eliminations (410,869) (446,940) Total Revenue $ 24,441,069 $ 26,680,280 Operating Income (Loss): 2021 2020 Ethanol production $ (4,273,277) $ 2,812,778 Natural gas pipeline 376,992 646,298 Eliminations (126,074) 182,456 Operating Loss $ (4,022,359) $ (2,348,936) January 31, 2021 October 31, 2020 Assets: (unaudited) Ethanol production $ 49,733,824 $ 49,613,394 Natural gas pipeline 13,354,270 13,466,787 Total Assets $ 63,088,094 $ 63,080,181

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business	Nature of Business Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillers’ grains with solubles and corn oil as co-products of ethanol production. Heron Lake BioEnergy, LLC’s wholly owned subsidiary, HLBE Pipeline Company, LLC (“HLBE Pipeline Company”), is the sole owner of Agrinatural Gas, LLC (“Agrinatural”). Agrinatural is a natural gas pipeline company that was formed to construct, own, and operate the natural gas pipeline that provides natural gas to the Company’s ethanol production facility and other customers through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota. Beginning as of December 11, 2019, HLBE holds a 100% interest in Agrinatural.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The condensed consolidated unaudited financial statements as of January 31, 2021 include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company (collectively, the “Company”). As of December 11, 2019, the Company acquired the 27% interest in Agrinatural that was not previously in its control. As such, results prior to December 11, 2019 reflect earnings attributable to the non-controlling interest separately in the condensed consolidated statement of operations during fiscal year 2020. All significant intercompany balances and transactions are eliminated in consolidation. The condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and 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 condensed consolidated unaudited financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2020, contained in the Company’s annual report on Form 10-K. In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position, and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year.
Accounting Estimates	Accounting Estimates Management uses estimates and assumptions in preparing these condensed consolidated unaudited 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. The Company uses estimates and assumptions in accounting for significant matters including, among others, the economic lives of property and equipment, the assumptions used in the analysis of impairment of long-lived assets, valuation of commodity derivative instruments, inventory, inventory purchase and sales commitments, evaluation of railcar rehabilitation costs and evaluation of going concern. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Our contracts primarily consist of agreements with marketing companies and other customers as described below. Our performance obligations consist of the delivery of ethanol, distillers' grains, and corn oil to our customers. Our customers primarily consist of three distinct marketing companies as discussed below. The consideration we receive for these products reflects an amount that the company expects to be entitled to in exchange for those products, based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. Our contracts have specific delivery modes, rail or truck, and dates. Revenue is recognized when the Company delivers the products to the mode of transportation specified in the contract, at the transaction price established in the contract, net of commissions, fees, and freight. We sell each of the products via different marketing channels as described below. · Ethanol. The Company sells its ethanol via a marketing agreement with Eco-Energy, Inc. Eco-Energy sells one hundred percent of the Company’s ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Eco-Energy and the Company. Our performance obligations consist of our obligation to deliver ethanol to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. The marketing agreement calls for control and title to pass to Eco-Energy once a rail car is released to the railroad or a truck is released from the Company’s scales. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and fees. · Distillers’ grains. The Company engages another third-party marketing company, Gavilon, Inc, to sell one hundred percent of the distillers grains it produces at the plant. Gavilon takes title and control once a rail car is released to the railroad or a truck is released from the Company’s scales. Prices are agreed upon between Gavilon and the Company. Our performance obligations consist of our obligation to deliver distillers grains to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Distillers’ corn oil (corn oil). The Company sells one hundred percent of its corn oil production to RPMG, Inc. The process for selling corn oil is the same as our distillers’ grains. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Agrinatural generates revenue from the transportation of natural gas to residential and commercial customers. Revenue is recognized at the point when natural gas is delivered at the transaction price established in the contract.
Inventory	Inventory Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers’ grains, and corn oil.
Derivative Instruments	Derivative Instruments From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives on the balance sheets at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales.” Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 6.
Reportable Operating Segments	Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, establishes the standards for reporting information about segments in financial statements. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results criteria set forth in ASC 280, the Company has two reportable operating segments for financial reporting purposes. · Ethanol Production . Based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plant, including the production and sale of ethanol and its co-products, are aggregated into one financial reporting segment. · Natural Gas Pipeline . The Company has majority ownership in Agrinatural, through its wholly owned subsidiary, HLBE Pipeline, LLC, and operations of Agrinatural’s natural gas pipeline are aggregated into another financial reporting segment.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jan. 31, 2021
REVENUE
Schedule of disaggregated revenue by source	Three Months Ended January 31, 2021 (unaudited) Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Three Months Ended January 31, 2020 (unaudited) Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Jan. 31, 2021
INVENTORY
Schedule of inventory	January 31, 2021 October 31, 2020 (unaudited) Raw materials $ 1,576,160 $ 2,440,997 Work in process 805,008 713,037 Finished goods 4,463,703 2,677,095 Supplies 1,283,194 1,232,546 Totals $ 8,128,065 $ 7,063,675

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Jan. 31, 2021
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments	The following table provides detail regarding the Company’s derivative instruments at January January 31, 2021, none of which are designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 143,900 Ethanol contracts Commodity derivative instruments 22,837 — Totals $ 22,837 $ 143,900 The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 173,928 Ethanol contracts Commodity derivative instruments 15,150 — Totals $ 15,150 $ 173,928
Schedule of gains (losses) from derivative instruments	Consolidated Statement of Three Months Ended January 31, Operations Location 2021 2020 Corn contracts Cost of goods sold $ (2,924,654) $ (80,768) Ethanol contracts Revenues 56,478 (81,852) Total loss $ (2,868,176) $ (162,620)

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Jan. 31, 2021
FAIR VALUE
Schedule of assets and liabilities accounted for on a recurring basis	The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at January 31, 2021: Fair Value Measurement Using Carrying Amount in Quoted Prices in Significant Other Significant Consolidated Active Markets Observable Inputs Unobservable Inputs Financial Assets: Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Ethanol $ 22,837 $ 22,837 $ 22,837 $ — $ — Financial Liabilities: Commodity Derivative instruments - Corn $ 143,900 $ 143,900 $ 143,900 $ — $ — Accounts Payable (1) $ 40,411 $ 40,411 $ — $ 40,411 $ — The following table sets forth, by level, the Company assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020: Fair Value Measurement Using Carrying Amount in Quoted Prices in Significant Other Significant Consolidated Active Markets Observable Inputs Unobservable Inputs Financial Assets: Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Ethanol $ 15,150 $ 15,150 $ 15,150 $ — $ — Financial Liabilities: Commodity Derivative instruments - Corn $ 173,928 $ 173,928 $ 173,928 $ — $ — Accounts Payable (1) $ 553,248 $ 553,248 $ — $ 553,248 $ — Accounts payable is generally stated at historical amounts with the exception of amounts in this table related to certain delivered inventory for which the payable fluctuates based on the changes in commodity prices. These payables are hybrid financial instruments for which the company has elected the fair value option.

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	3 Months Ended
	Jan. 31, 2021
DEBT FACILITIES
Schedule of long-term debt	January 31, 2021 October 31, 2020 Amended revolving term note payable to lending institution, see terms below. $ 9,699,032 $ 7,891,426 Single advance term note payable to lending institution, see terms below. 2,700,000 3,000,000 Assessment payable as part of water treatment agreement, due in semi-annual installments of $189,393 with interest at 6.55%, enforceable by statutory lien, with the final payment due in October 2021. The Company made deposits for one years' worth of debt service payments of approximately $364,000, which is included with other current assets that are held on deposit to be applied with the final payments of the assessment. 300,551 300,551 SBA Paycheck Protection Program Loan, see terms below. 595,693 595,693 Granite Falls Energy note, see terms below. 5,000,000 — Totals 18,295,276 11,787,670 Less amounts due within one year 18,146,353 11,492,059 Net long-term debt $ 148,923 $ 295,611
Schedule of estimated maturities of long-term debt	2022 $ 18,146,353 2023 148,923 Total debt $ 18,295,276

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Jan. 31, 2021
LEASES
Summary of maturities of operating lease liabilities	Twelve Months Ended January 31, 2022 $ 1,767,000 2023 1,767,000 2024 1,757,250 2025 1,650,000 2026 1,650,000 Thereafter 1,750,000 Totals 10,341,250 Less: Amount representing interest 1,379,965 Lease liabilities $ 8,961,285

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Jan. 31, 2021
BUSINESS SEGMENTS
Schedule of business segments	Ethanol Production Ethanol and co-product production and sales Natural gas pipeline Ownership and operations of natural gas pipeline
Reconciliation of segment revenue	Three Months Ended January 31, 2021 January 31, 2020 Revenue: (unaudited) (unaudited) Ethanol production $ 24,034,209 $ 25,991,003 Natural gas pipeline 817,729 1,136,217 Eliminations (410,869) (446,940) Total Revenue $ 24,441,069 $ 26,680,280
Schedule of operating income (loss) and total assets	Operating Income (Loss): 2021 2020 Ethanol production $ (4,273,277) $ 2,812,778 Natural gas pipeline 376,992 646,298 Eliminations (126,074) 182,456 Operating Loss $ (4,022,359) $ (2,348,936) January 31, 2021 October 31, 2020 Assets: (unaudited) Ethanol production $ 49,733,824 $ 49,613,394 Natural gas pipeline 13,354,270 13,466,787 Total Assets $ 63,088,094 $ 63,080,181

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Business (Details) - gal gal in Millions	Jan. 31, 2021	Dec. 11, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating capacity of Ethanol plant owned and operated	72.3
Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Noncontrolling interest, ownership percentage by noncontrolling owners	27.00%
HLBE Pipeline Company, LLC | Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ownership percentage		100.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details)	3 Months Ended
	Jan. 31, 2021company
CONCENTRATIONS
Number of distinct marketing companies	3
Ethanol | Eco-Energy, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Distillers' Grains | Gavilon, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Corn Oil | RPMG, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Operating Segments (Details)	3 Months Ended
	Jan. 31, 2021segment
Segment Reporting Information
Number of reportable segments	2
Ethanol production
Segment Reporting Information
Number of reportable segments	1

GOING CONCERN (Details)

GOING CONCERN (Details)	3 Months Ended
	Jan. 31, 2021
GOING CONCERN
Substantial doubt about Going Concern within one year	true

RISKS AND UNCERTAINTIES (Detail

RISKS AND UNCERTAINTIES (Details)	3 Months Ended
	Jan. 31, 2021
Total revenues | Customer | Ethanol | Minimum
RISKS AND UNCERTAINTIES
Concentration percentage	70.00%
Total revenues | Customer | Ethanol | Maximum
RISKS AND UNCERTAINTIES
Concentration percentage	90.00%
Cost of goods sold | Product | Corn | Minimum
RISKS AND UNCERTAINTIES
Concentration percentage	70.00%
Cost of goods sold | Product | Corn | Maximum
RISKS AND UNCERTAINTIES
Concentration percentage	90.00%

REVENUE - Revenue (Details)

REVENUE - Revenue (Details) - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Revenue Recognition
Total Revenues	$ 24,441,069	$ 26,680,280
Payment terms	10 days
Ethanol production
Revenue Recognition
Total Revenues	$ 24,034,209	25,991,003
Natural gas pipeline
Revenue Recognition
Total Revenues	406,860	689,277
Ethanol
Revenue Recognition
Total Revenues	18,720,349	20,291,884
Ethanol | Ethanol production
Revenue Recognition
Total Revenues	18,720,349	20,291,884
Distillers' Grains
Revenue Recognition
Total Revenues	3,699,036	4,488,804
Distillers' Grains | Ethanol production
Revenue Recognition
Total Revenues	3,699,036	4,488,804
Corn Oil
Revenue Recognition
Total Revenues	1,389,078	914,398
Corn Oil | Ethanol production
Revenue Recognition
Total Revenues	1,389,078	914,398
Other
Revenue Recognition
Total Revenues	225,746	295,917
Other | Ethanol production
Revenue Recognition
Total Revenues	225,746	295,917
Natural Gas
Revenue Recognition
Total Revenues	$ 406,860	689,277
Payment terms	20 days
Natural Gas | Natural gas pipeline
Revenue Recognition
Total Revenues	$ 406,860	$ 689,277

INVENTORY (Details)

INVENTORY (Details) - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Oct. 31, 2020
Inventory
Raw materials	$ 1,576,160		$ 2,440,997
Work in process	805,008		713,037
Finished goods	4,463,703		2,677,095
Supplies	1,283,194		1,232,546
Totals	8,128,065		$ 7,063,675
Loss on inventory	0
Ethanol
Inventory
Loss on inventory	$ 274,000	$ 877,000

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details)	3 Months Ended	12 Months Ended
	Jan. 31, 2021USD ($)bu	Oct. 31, 2020USD ($)bu
Derivative instruments
Financial Assets	$ 22,837	$ 15,150
Financial Liabilities	$ 143,900	$ 173,928
Corn contracts
Derivative instruments
Notional volume | bu	730,000	2,095,000
Corn contracts | Commodity Option
Derivative instruments
Notional volume | bu	3,710,000	1,380,000
Corn contracts | Long/Purchase
Derivative instruments
Notional volume | bu	340,000	325,000
Corn contracts | Short/Sale
Derivative instruments
Notional volume | bu	390,000	1,770,000
Derivatives held by a broker
Derivative instruments
Restricted cash	$ 242,000	$ 514,000
Derivatives not designated as hedging instruments
Derivative instruments
Financial Assets	22,837	15,150
Financial Liabilities	143,900	173,928
Derivatives not designated as hedging instruments | Corn contracts
Derivative instruments
Financial Liabilities	143,900	173,928
Derivatives not designated as hedging instruments | Ethanol contracts
Derivative instruments
Financial Assets	$ 22,837	$ 15,150

DERIVATIVE INSTRUMENTS, Gains (

DERIVATIVE INSTRUMENTS, Gains (losses) (Details) - Derivatives not designated as hedging instruments - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Derivative Instruments
Total loss	$ (2,868,176)	$ (162,620)
Corn contracts | Cost of goods sold
Derivative Instruments
Total loss	(2,924,654)	(80,768)
Ethanol contracts | Revenues.
Derivative Instruments
Total loss	$ 56,478	$ (81,852)

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Jan. 31, 2021	Oct. 31, 2020
Fair value measurements
Financial Assets	$ 22,837	$ 15,150
Financial Liabilities	143,900	173,928
Carrying Amount | Accounts payable
Fair value measurements
Financial Liabilities	40,411	553,248
Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	40,411	553,248
Level 2 | Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	40,411	553,248
Ethanol contracts | Carrying Amount
Fair value measurements
Financial Assets	22,837	15,150
Ethanol contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Assets	22,837	15,150
Ethanol contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Assets	22,837	15,150
Corn contracts | Carrying Amount
Fair value measurements
Financial Liabilities	143,900	173,928
Corn contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Liabilities	143,900	173,928
Corn contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Liabilities	$ 143,900	$ 173,928

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2021	Oct. 31, 2020	Feb. 28, 2021	Feb. 01, 2021	Jun. 30, 2020
DEBT FACILITIES
Long-term debt	$ 18,295,276	$ 11,787,670
Less amounts due on demand or within one year	18,146,353	11,492,059		$ 11,800,000
Net long term debt	148,923	295,611
Amended revolving term note payable to lending institution
DEBT FACILITIES
Long-term debt	9,699,032	7,891,426
Single advance term note payable to lending institution
DEBT FACILITIES
Long-term debt	2,700,000	3,000,000
Interest rate (as a percent)					3.80%
Assessments payable as part of water treatment agreement, with interest at 6.55%, due in October 2021
DEBT FACILITIES
Long-term debt	300,551	300,551
Payment	$ 189,393	$ 189,393
Interest rate (as a percent)	6.55%	6.55%
Period of worth of debt	1 year	1 year
Deposit on debt service payments	$ 364,000	$ 364,000
SBA Paycheck Protection Program Loan
DEBT FACILITIES
Long-term debt	595,693	$ 595,693
Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
DEBT FACILITIES
Long-term debt	$ 5,000,000
Subsequent Event | SBA Paycheck Protection Program Loan
DEBT FACILITIES
Interest rate (as a percent)			1.00%

DEBT FACILITIES - Additional in

DEBT FACILITIES - Additional information (Details)

Jun. 30, 2021USD ($)

Apr. 18, 2020USD ($)

Feb. 28, 2021USD ($)

Jan. 31, 2021USD ($)

Dec. 31, 2020USD ($)

Jun. 30, 2020USD ($)installment

Jan. 31, 2021USD ($)

Apr. 30, 2020USD ($)

May 31, 2021USD ($)

Dec. 31, 2020USD ($)

Feb. 01, 2021USD ($)

Oct. 31, 2020USD ($)

Mar. 29, 2018USD ($)

Debt financing

Current maturities of long-term debt

$ 18,146,353

$ 18,146,353

$ 11,800,000

$ 11,492,059

CoBank | 2020 Credit Facility

Debt financing

Annual fee

2,500

2,500

Amended revolving term note payable to lending institution | 2020 Credit Facility

Debt financing

Maximum borrowing capacity

13,000,000

13,000,000

$ 13,000,000

Working capital covenant

10,000,000

$ 8,000,000

$ 10,000,000

Net worth requirement amount

$ 32,000,000

$ 32,000,000

Spread above variable interest rate (as a percent)

0.00%

Interest rate at end of period (as a percent)

3.48%

3.48%

Unused commitment fee per annum on the unused portion of debt (as a percent)

0.50%

Amended revolving term note payable to lending institution | 2020 Credit Facility | Subsequent Event

Debt financing

Working capital covenant

$ 10,000,000

$ 8,000,000

Net worth requirement amount

$ 28,000,000

Amended revolving term note payable to lending institution | One-Month LIBOR | 2020 Credit Facility

Debt financing

Spread above variable interest rate (as a percent)

3.35%

SBA Paycheck Protection Program Loan

Debt financing

Long-term debt

$ 595,693

SBA Paycheck Protection Program Loan | Subsequent Event

Debt financing

Interest rate (as a percent)

1.00%

Long-term debt

$ 595,693

Single advance term note payable to lending institution

Debt financing

Initial amount of debt

$ 3,000,000

Interest rate (as a percent)

3.80%

Number of Installments | installment

10

Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC

Debt financing

Maximum borrowing capacity

$ 5,000,000

$ 5,000,000

$ 5,000,000

$ 5,000,000

Spread above variable interest rate (as a percent)

1.00%

Interest rate at end of period (as a percent)

3.48%

3.48%

Negotiable Promissory Note | 2020 Credit Facility | Subsequent Event

Debt financing

Maximum borrowing capacity

$ 5,000,000

Spread above variable interest rate (as a percent)

0.00%

Unused commitment fee per annum on the unused portion of debt (as a percent)

0.50%

Negotiable Promissory Note | One-Month LIBOR | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC

Debt financing

Spread above variable interest rate (as a percent)

3.35%

Negotiable Promissory Note | One-Month LIBOR | 2020 Credit Facility | Subsequent Event

Debt financing

Spread above variable interest rate (as a percent)

3.35%

DEBT FACILITIES - Estimated ann

DEBT FACILITIES - Estimated annual maturities (Details) - USD ($)	Jan. 31, 2021	Oct. 31, 2020
Estimated maturities of long-term debt
2022	$ 18,146,353
2023	148,923
Long-term debt	$ 18,295,276	$ 11,787,670

LEASES (Details)

LEASES (Details) - USD ($)	3 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Oct. 31, 2020
Leases
Right of use assets	$ 8,961,285		$ 9,291,249
Lease liabilities	$ 8,961,285
Lease, Practical Expedients, Package [true false]	true
Weighted average discount rate	4.87%
Weighted average remaining lease term	4 years
Cost of goods sold
Leases
Operating lease costs	$ 610,000	$ 575,000
Minimum
Leases
Remaining term	1 year
Maximum
Leases
Remaining term	7 years

LEASES - Maturities of operatin

LEASES - Maturities of operating lease liabilities (Details)	Jan. 31, 2021USD ($)
Maturities of operating lease liabilities
2022	$ 1,767,000
2023	1,767,000
2024	1,757,250
2025	1,650,000
2026	1,650,000
Thereafter	1,750,000
Totals	10,341,250
Less: Amount representing interest	1,379,965
Lease liabilities	$ 8,961,285

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended	12 Months Ended
	Jan. 31, 2021USD ($)itembu	Oct. 31, 2020USD ($)	Jan. 31, 2020USD ($)
Commodity Contract
COMMITMENTS AND CONTINGENCIES
Impairment charge	$ 0	$ 47,000
Corn Forward Contracts | Long/Purchase
COMMITMENTS AND CONTINGENCIES
Notional volume | bu	4,402,000
Ethanol Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	$ 14,720,000
Anticipated sales (as a percent)	97.00%
Distillers Grains Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	$ 5,473,000
Anticipated sales (as a percent)	27.00%
Corn Oil Forward Contract | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	$ 435,000
Anticipated sales (as a percent)	75.00%
Rail Car Rehabilitation Agreement
COMMITMENTS AND CONTINGENCIES
Number of hopper rail cars leased | item	50
Estimated total costs to rehabilitate the cars	$ 608,000	$ 597,000
Estimated long-term liability of rehabilitation costs	$ 12,000		$ 11,000

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	Dec. 11, 2019USD ($)	Jan. 31, 2020USD ($)	Jan. 31, 2021Vote / sharesshares	Oct. 31, 2020shares
Members' Equity
Common Unit, Issued			77,932,107	77,932,107
Minimum number of units held to be member			2,500
Number of votes per unit | Vote / shares			1
Remaining non-controlling interest | $	$ 2,225,000	$ 2,225,000
Maximum
Members' Equity
Common Unit, Authorized			80,000,000
Class A units
Members' Equity
Common Unit, Authorized			65,000,000
Common Unit, Issued			62,932,107	62,932,107
Class B units
Members' Equity
Common Unit, Authorized			15,000,000
Common Unit, Issued			15,000,000	15,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2020USD ($)	Jan. 31, 2021USD ($)item	Jan. 31, 2020USD ($)
Board Members | Corn
RELATED PARTY TRANSACTIONS
Amount purchased from related party		$ 3,742,000	$ 5,065,000
Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Percentage of costs for three management positions incurred by GFE paid by the Company		50.00%
Number of management positions of GFE partially paid for by the Company | item		3
Renewal term		1 year
Period of written notice for termination prior to renewal of agreement		90 days
Amount of related party transaction		$ 119,000	$ 123,000
Accounts payable, related parties		$ 50,000
Agrinatural, LLC
RELATED PARTY TRANSACTIONS
Renewal term		1 year
Period of written notice for termination prior to renewal of agreement		30 days
Amount paid excluding fees and third party services		$ 9,000
Amount of related party transaction		27,000
Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Maximum borrowing capacity	$ 5,000,000	$ 5,000,000
Spread above variable interest rate (as a percent)	1.00%
Negotiable Promissory Note | One-Month LIBOR | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Spread above variable interest rate (as a percent)	3.35%

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended
	Jan. 31, 2021USD ($)segment	Jan. 31, 2020USD ($)	Oct. 31, 2020USD ($)
Segment Reporting Information
Number of operating segments | segment	2
Total Revenues	$ 24,441,069	$ 26,680,280
Operating Loss	(4,022,359)	(2,348,936)
Assets	63,088,094		$ 63,080,181
Ethanol production
Segment Reporting Information
Total Revenues	24,034,209	25,991,003
Natural gas pipeline
Segment Reporting Information
Total Revenues	406,860	689,277
Operating Segments | Ethanol production
Segment Reporting Information
Total Revenues	24,034,209	25,991,003
Operating Loss	(4,273,277)	2,812,778
Assets	49,733,824		49,613,394
Operating Segments | Natural gas pipeline
Segment Reporting Information
Total Revenues	817,729	1,136,217
Operating Loss	376,992	646,298
Assets	13,354,270		$ 13,466,787
Intersegment Eliminations
Segment Reporting Information
Total Revenues	(410,869)	(446,940)
Operating Loss	$ (126,074)	$ 182,456