Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LINCOLNWAY ENERGY, LLC | ||
Entity Central Index Key | 0001350420 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Address, Address Line One | 59511 W. Lincoln Highway | ||
Entity Address, City or Town | Nevada | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 50201 | ||
City Area Code | 515 | ||
Local Phone Number | 232-1010 | ||
Entity Tax Identification Number | 20-1118105 | ||
Entity File Number | 000-51764 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 105,122 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | IA | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 29,854,648 | ||
Book Value per Unit Held by Non-affiliates | $ 310 | ||
Common Unit, Outstanding | 105,122 | 42,049 | 42,049 |
Class A Units, Outstanding | 56,086 | ||
Class B Units, Outstanding | 6,987 | ||
Class Common Units, Outstanding | 42,049 |
Balance Sheets Statement
Balance Sheets Statement - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,201,372 | $ 260,858 |
Derivative financial instruments (Notes 8 and 9) | 300,476 | 188,694 |
Trade and other accounts receivable (Note 7) | 4,602,150 | 3,259,768 |
Inventories (Note 3) | 7,245,700 | 6,440,716 |
Prepaid expenses and other | 304,244 | 308,184 |
Total current assets | 19,653,942 | 10,458,220 |
PROPERTY AND EQUIPMENT | ||
Land and land improvements | 7,156,465 | 7,156,465 |
Buildings and improvements | 7,558,860 | 7,548,308 |
Plant and process equipment | 86,274,048 | 86,110,958 |
Construction in progress | 6,796,507 | 6,806,549 |
Office furniture and equipment | 441,332 | 455,129 |
Property, plant and equipment gross | 108,227,212 | 108,077,409 |
Accumulated depreciation | (70,352,374) | (65,685,719) |
Property, plant and equipment, net | 37,874,838 | 42,391,690 |
Other Assets [Abstract] | ||
Operating Lease, Right-of-Use Asset | 7,179,272 | 0 |
Other Assets, Noncurrent | 1,102,850 | 864,082 |
Other Assets | 8,282,122 | 864,082 |
Assets | 65,810,902 | 53,713,992 |
CURRENT LIABILITIES | ||
Accounts payable | 1,858,459 | 1,794,431 |
Accounts payable, related party (Note 6) | 439,424 | 375,394 |
Accrued Loss on Purchase Commitments | 0 | 67,591 |
Accrued expenses | 713,462 | 776,385 |
Long-term Debt, Current Maturities | 505,700 | 25,000,000 |
Line of Credit Facility, Outstanding Balance | 0 | 300,000 |
Operating Lease, Liability, Current | 2,164,720 | 0 |
Total current liabilities | 5,681,765 | 28,313,801 |
NONCURRENT LIABILITIES | ||
Long-term debt, less current maturities (Note 5) | 21,700,000 | 0 |
Operating Lease, Liability, Noncurrent | 5,014,552 | 0 |
Other | 844,217 | 649,799 |
Total noncurrent liabilities | 27,558,769 | 649,799 |
COMMITMENTS AND CONTINGENCY (Notes 5 and 7) | $ 0 | $ 0 |
Common Unit, Outstanding | 105,122 | 42,049 |
MEMBERS’ EQUITY (Note 2) | ||
Member contributions, 105,122 and 42,049 units issued and outstanding as of September 30, 2020 and 2019, respectively | $ 46,490,105 | $ 38,990,105 |
Retained (deficit) | (13,919,737) | (14,239,713) |
Members' Equity | 32,570,368 | 24,750,392 |
Liabilities and Members' Equity | $ 65,810,902 | $ 53,713,992 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues (Notes 1 and 7) | $ 105,156,552 | $ 97,386,340 | $ 102,050,976 |
Cost of Goods and Services Sold | 101,072,011 | 105,075,962 | 102,333,910 |
Gross profit (loss) | 4,084,541 | (7,689,622) | (282,934) |
General and administrative expenses | 3,333,321 | 3,484,570 | 3,236,616 |
Bad Debt Expense | 0 | 4,385,009 | 0 |
Operating income (loss) | 751,220 | (15,559,201) | (3,519,550) |
Other income (expense): | |||
Interest income | 13,290 | 10,579 | 8,403 |
Interest expense | (1,125,048) | (800,867) | (19,390) |
Other Income | 680,514 | 3,100,683 | 583,322 |
Other nonoperating income and expense | (431,244) | 2,310,395 | 572,335 |
Net income (loss) | $ 319,976 | $ (13,248,806) | $ (2,947,215) |
Weighted average units outstanding | 70,082 | 42,049 | 42,049 |
Net income (loss) per unit - basic and diluted | $ 4.57 | $ (315.08) | $ (70.09) |
Statements of Members' Equity
Statements of Members' Equity - USD ($) | Total | Member Contributions | Retained Earnings(Deficit) |
Balance at Sep. 30, 2017 | $ 41,997,638 | $ 38,990,105 | $ 3,007,533 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Net income (loss) | (2,947,215) | 0 | (2,947,215) |
Member distributions | (1,051,225) | 0 | (1,051,225) |
Balance at Sep. 30, 2018 | $ 37,999,198 | 38,990,105 | (990,907) |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Distribution per unit | $ 25 | ||
Common Unit, Issuance Value | $ 7,500,000 | ||
Net income (loss) | (13,248,806) | 0 | (13,248,806) |
Member distributions | 0 | ||
Balance at Sep. 30, 2019 | 24,750,392 | 38,990,105 | (14,239,713) |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Common Unit, Issuance Value | 0 | ||
Net income (loss) | 319,976 | 0 | 319,976 |
Member distributions | 0 | ||
Balance at Sep. 30, 2020 | 32,570,368 | $ 46,490,105 | $ (13,919,737) |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Common Unit, Issuance Value | $ 7,500,000 |
Statements of Members' Equity (
Statements of Members' Equity (Parenthetical) | 12 Months Ended |
Sep. 30, 2018$ / shares | |
Distribution per unit | $ 25 |
Statement of Cash Flows
Statement of Cash Flows | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Cash | $ 7,201,372 | $ 260,858 | $ 668,456 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | 319,976 | (13,248,806) | (2,947,215) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,776,308 | 5,320,846 | 4,477,811 |
Loss on sale or disposal of property and equipment | 0 | 232,981 | 43,693 |
Increase (Decrease) in Bad Debt Expense | 0 | 4,385,009 | 0 |
Inventory, Firm Purchase Commitment, Loss | (67,591) | (298,577) | 366,168 |
Changes in working capital components: | |||
Trade and other accounts receivable | (1,342,382) | (473,270) | 442,976 |
Inventories | (804,984) | (1,884,013) | 1,128,026 |
Prepaid expenses and other | (40,410) | 64,812 | 108,963 |
Accounts payable | 51,528 | (558,535) | (801,762) |
Accounts payable, related party | 64,030 | (281,739) | 14,407 |
Accrued expenses | (50,423) | (195,782) | (118,268) |
Increase (Decrease) in Deferred Revenue | 0 | (296,296) | (148,148) |
Derivative financial instruments | (111,782) | 366,433 | (126,461) |
Net cash provided by operating (used in) activities | 2,794,270 | (6,866,937) | 2,440,190 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (270,023) | (3,667,661) | (13,611,022) |
Proceeds from sale of property and equipment | 10,567 | 27,000 | 0 |
Net cash (used in) investing activities | (259,456) | (3,640,661) | (13,611,022) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Member distributions | 0 | 0 | 1,051,225 |
Proceeds from Issuance of Common Stock | 7,500,000 | 0 | 0 |
Proceeds from Lines of Credit | (300,000) | 300,000 | 0 |
Proceeds from Other Short-term Debt | 505,700 | 0 | 0 |
Payment for Debt Extinguishment or Debt Prepayment Cost | (25,000,000) | 0 | 0 |
Proceeds from long-term borrowings | 27,000,000 | 68,250,000 | 69,550,000 |
Payments on long-term borrowings | (5,300,000) | (58,450,000) | (57,350,000) |
Net cash provided by financing activities | 4,405,700 | 10,100,000 | 11,148,775 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 6,940,514 | (407,598) | (22,057) |
CASH AND CASH EQUIVALENTS | |||
Beginning | 260,858 | ||
Ending | 7,201,372 | 260,858 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest, including capitalized interest of none, $304,947 and $515,242 | 1,169,512 | 1,190,553 | 535,402 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Construction in progress included in accounts payable | 0 | 60,973 | 86,928 |
Construction in progress included in accrued expenses | 6,691,675 | 0 | 0 |
Interest Costs Capitalized | $ 0 | $ 304,947 | $ 515,242 |
Statement of Cash Flows (Parent
Statement of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Costs Capitalized | $ 0 | $ 304,947 | $ 515,242 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Business Description and Accounting Policies | Nature of Business and Significant Accounting Policies Principal business activity : Lincolnway Energy, LLC (the "Company"), located in Nevada, Iowa, was formed in May 2004 to pool investors to build a 50 million gallon annual production dry mill corn-based ethanol plant. The Company began making sales on May 30, 2006 and became operational during the quarter ended June 30, 2006. The Company is directly influenced by commodity markets and the agricultural and energy industries and, accordingly, its results of operations and financial condition may be significantly affected by cyclical market trends and the regulatory, political and economic conditions in these industries. A summary of significant accounting policies follows: Use of estimates : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Risks and Uncertainties: The COVID-19 pandemic is currently impacting countries, communities, supply chains and commodities markets, in addition to the global financial markets. This pandemic has resulted in social distancing, travel bans, governmental stay-at-home orders, and quarantines, and these may limit access to our facilities, customers, suppliers, management, support staff and professional advisors. At this time it is not possible to fully assess the impact of the COVID-19 pandemic on the Company’s operations and capital requirements, but the aforementioned factors, among other things, may impact our operations, financial condition and demand for our products, as well as our overall ability to react timely and mitigate the impact of this event. Depending on its severity and longevity, the COVID-19 pandemic may have a material adverse effect on our business, customers, and members. Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Although the Company maintains its cash accounts in one bank, the Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Trade accounts receivable: Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers financial condition, credit history and current economic conditions. Receivables are written off when deemed uncollectible. Recoveries of receivables written off are recorded when received. A receivable is considered past due if any portion of the receivable is outstanding more than 90 days. There is no allowance for doubtful accounts as of both September 30, 2020 and September 30, 2019. Note receivable : On March 28, 2019, the Company recorded a note receivable totaling $4,080,000 for a component of the construction in progress (the dryer) that failed to meet required specifications. The vendor issued a promissory note to the Company, which is personally guaranteed by principals of the vendor. The full amount of the note receivable plus interest is currently due and payable. During the year ended September 30, 2019, management determined based on communication from the vendor and lack of payment that the note receivable, including interest of $60,809, should be fully reserved at June 30, 2019. Bad debt expense of $0, $4,385,009, and $0 was recorded during the years ended September 30, 2020, 2019, and 2018, respectively. Deferred revenue: Deferred revenue represents fees received under a service agreement in advance of services being performed. The related revenue was deferred and recognized as the services were performed over the 10 year agreement. On December 17, 2018, the Company entered into a settlement agreement in connection with the early termination of the contract. The settlement totaled approximately $3,000,000 and was included in other income and the remaining deferred revenue of approximately $420,000 was recognized during the year ended September 30, 2019. Inventories: Inventories are generally valued at the lower of net realizable value or actual cost using the first-in, first-out method. 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. For the fiscal years ended September 30, 2020 and September 30, 2019 the Company recognized a reserve and resulting loss of approximately $0 and $76,000, respectively, for a lower of net realizable value or cost inventory adjustment. Property and equipment: Property and equipment is stated at cost. Construction in progress is comprised of costs related to the projects that are not completed. Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 20 Buildings and improvements 40 Plant and process equipment 5 20 Office furniture and equipment 3 7 Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. When circumstances or events arise that questions an asset's usefulness, the asset is evaluated for future use and appropriate carrying value. The Company evaluates the carrying value of long-lived tangible assets when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and circumstances include, but are not limited to, significant decreases in the market value of the asset, adverse changes in the extent or manner in which the asset is being used, significant changes in business climate, or current or projected cash flow losses associated with the use of the assets. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from such assets are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. For long-lived assets to be held for use in future operations and for fixed (tangible) assets, fair value is determined primarily using either the projected cash flows discounted at a rate commensurate with the risk involved or an appraisal. For long-lived assets to be disposed of by sale or other than sale, fair value is determined in a similar manner, except that fair values are reduced for disposal costs. Derivative financial instruments: The Company periodically enters into derivative contracts to hedge the Company’s exposure to price risk related to forecasted corn needs, forward corn purchase contracts and ethanol sales. The Company does not typically enter into derivative instruments other than for hedging purposes. All the derivative contracts are recognized on the balance sheet at their fair market value. Although the Company believes its derivative positions are economic hedges, none have been designated as a hedge for accounting purposes. Accordingly, any realized or unrealized gain or loss related to corn and natural gas derivatives is recorded in the statement of operations as a component of cost of goods sold. Any realized or unrealized gain or loss related to ethanol derivative instruments is recorded in the statement of operations as a component of revenue. The Company reports all contracts with the same counter party on a net basis on the balance sheet. Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company’s financial statements. Forward contracts with delivery dates with 30 days that can be reasonably estimated are subject to a lower of cost or net realizable value assessment. The Company recognized a reserve and resulting accrued loss on purchase commitments of approximately $0 and $67,591 as of September 30, 2020 and 2019, respectively. Revenue recognition: The Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), October 1, 2019, using the modified retrospective method. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company generally recognized revenue at a point and time. The implementation of the new standard did not result in any changes to the measurement or recognition of revenue for prior periods, however, additional disclosures have been added in accordance with the ASU. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of ethanol • sales of distillers grains • sales of corn oil Shipping costs incurred by the Company in the sale of ethanol, distillers grains and corn oil are not specifically identifiable and as a result, are recorded based on the net selling price. Railcar lease costs incurred by the Company in the sale of its products are included in the cost of goods sold. Revenue from the sale of the Company’s ethanol and distillers grains is recognized at the time title, control and all risks of ownership transfer to the marketing company. This generally occurs upon the loading of the product. For ethanol, title and control passes at the time the product crosses the loading flange in either a railcar or truck. For distillers grain, title and control passes upon the loading into trucks or railcars. Corn oil is marketed internally. Revenue is recognized when title and control of ownership transfers, upon loading. Shipping and handling costs incurred by the Company for the sale of distillers grain are included in costs of goods sold. Ethanol revenue is reported free on board (FOB) and all shipping and handling costs are incurred by the ethanol marketer. Commissions for the marketing and sale of ethanol and distiller grains are included in costs of goods sold. Revenue by product is as follows: (In thousands) 2020 2019 2018 Ethanol $ 80,106 $ 75,224 $ 77,709 Distillers Grain 19,196 15,329 16,821 Corn Oil 4,616 5,487 5,545 Other 1,238 1,346 1,975 Income taxes : The Company is organized as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Management has evaluated the Company's material tax positions and determined there were no uncertain tax positions that require adjustment to the financial statements. The Company does not currently anticipate significant changes in its uncertain tax positions over the next twelve months. Earnings per unit : Basic and diluted net income (loss) per unit have been computed on the basis of the weighted average number of units outstanding during each period presented. On March 31, 2020, 42,049 new Class A Units were issued, which Class A Units are a separate class of unit than the units issued to existing members which have been renamed “Common Units”. On May 28, 2020, the Company issued an additional 14,037 Class A Units and 6,987 new Class B Units. The combined issuance of Class A Units is 56,086 units and the total issuance of Class B Units is 6,987 units. There are also 42,049 Common Units outstanding for an aggregate number of 105,122 units outstanding comprised of Class A Units, Class B Units and Common Units. The weighted average number of units is based on days outstanding for the reporting period. The Class A Units and Class B Units have a liquidation preference which provides that in the event of a liquidation or deemed liquidation, the Class A and Class B members will receive the return of their capital contributions, reduced by the amount of distributions received, prior to the holders of Common Units receiving any proceeds. Fair value of financial instruments: The carrying amounts of cash and cash equivalents, derivative financial instruments, trade and other accounts receivable, accounts payable and accrued expenses approximate fair value. These instruments are considered Level 1 measurements under the fair value hierarchy. Long term debt approximates fair value and commensurate with the market as the agreement was recently amended in the current year. The inputs for long term debt are considered a Level 3. Recently Issued Accounting Pronouncements: In February 2016, Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-02 "Leases" (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous Generally Accepted Accounting Principles ("GAAP"). ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases): (1) a lease liability, which is a lessee's obligation to make lease payments arising from the lease, measured on a discounted cash flow basis; and (2) a "right of use" asset, which is an asset that represents the lessee's right to use the specified asset for the lease term. The Company adopted this accounting standard effective October 1, 2019. Upon adoption, the Company elected a practical expedient which allows existing leases to retain their classification as operating leases. Additionally, the Company has elected to account for lease and related non-lease components as a single lease component. The Company elected the option to apply the transition provisions at adoption date instead of the earliest comparative period presented in the financial statements. Due to this election, the Company is not required to retrospectively apply the standard to the previous periods presented. See additional disclosure in Note 7. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following as of September 30: 2020 2019 Raw materials, including corn, chemicals, parts and supplies $ 5,292,339 $ 4,902,526 Work in process 653,680 900,459 Ethanol and distillers grain 1,299,681 637,731 Total $ 7,245,700 $ 6,440,716 |
Revolving Credit Loan
Revolving Credit Loan | 12 Months Ended |
Sep. 30, 2020 | |
Revolving Credit Loan [Abstract] | |
Revolving Line of Credit. [Text Block] | Revolving Credit Loan The Company entered into a Revolving Credit Promissory Note dated June 23, 2019 which provides for loans not to exceed $4,000,000 at any time. The loan originally matured on January 1, 2020 but the Company received an extension on December 24, 2019 extending the maturity date to June 1, 2020. Effective as of May 29, 2020, the Company and the bank amended the revolving credit loan to extend the maturity date of the revolving credit loan until January 1, 2021. Interest accrues at a variable interest rate (adjusted on a weekly basis) based upon the one-month LIBOR index rate plus 3.75% (3.90% as of September 30, 2020). The Company will also pay a commitment fee on the average daily unused portion of the loan at the rate of .25% per annum, payable monthly. The loan is secured by substantially all assets of the Company and subject to certain financial and nonfinancial covenants as defined in the master loan agreement. There was an outstanding balance of $0 and $300,000 on the revolving credit loan as of September 30, 2020 and 2019, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2020 | |
Long-term Debt, Current and Noncurrent [Abstract] | |
Long-term Debt | Long-Term Debt The Company has a revolving term loan, with a bank, available for up to $25,000,000. Effective May 29, 2020, the Company and the bank amended the revolving term loan to modify the step-down reduction of available borrowing capacity to defer the initial step-down reduction of $5,000,000 originally scheduled for October 20, 2020 to October 20, 2021. As amended, available borrowings will be reduced by $5,000,000 each year starting October 20, 2021 until October 1, 2024 when the term loan matures. The Company will pay interest on the unpaid balance at a variable interest rate (adjusted on a weekly basis) based upon the one-month LIBOR index rate plus 3.75% (3.90% as of September 30, 2020). The Company will also pay a commitment fee on the average daily unused portion of the loan at the rate of 0.50% per annum, payable monthly. The loan is secured by substantially all assets of the Company and subject to certain financial and nonfinancial covenants as defined in the master loan agreement. At September 30, 2020 and 2019 the outstanding balance on the revolving term loan was $21,700,000 and $25,000,000, respectively. As noted above, the Company and the bank amended the revolving term loan to defer the initial step-down reduction of available borrowing capacity so that the new maximum commitment amount reduction schedule is as follows: Maximum Commitment Amount From Up to and Including $20,000,000 October 20, 2021 October 19, 2022 $15,000,000 October 20, 2022 October 19, 2023 $10,000,000 October 20, 2023 October 1, 2024 In connection with the revolving term loan, the Company entered into an Amended and Restated Letter of Credit Promissory Note. The maximum amount of the letter of credit commitment is $1,307,525. As of September 30, 2020 and 2019, the outstanding amount available to the Company under the Restated Letter of Credit Note was $1,307,525 and $1,518,450, respectively. The payment of distributions is also subject to the Company's compliance with the various covenants and requirements of the Company's credit and loan agreements, and it is possible that those covenants and requirements will at times prevent the Company from paying a distribution to its members if the Company fails to meet certain financial metrics or is in default under the provisions of the credit and loan agreements. During the 2019 fiscal year the Company was not in compliance with certain financial covenants under its master credit agreement and therefore the debt under this credit agreement was classified as current liability as of September 30, 2019. During the 2020 fiscal year the Company received cash for the issuance of additional units and amended master credit agreements with the bank. Due to this and improved operating margins, the Company is in compliance with financial covenants as of September 30, 2020 and is expected to stay in compliance for the next 12 months. On April 13, 2020, the Company received a loan in the amount of $505,700 under the new Paycheck Protection Program (the “PPP Loan”) legislation administered by the U.S. Small Business Administration. The PPP Loan may be forgiven based upon various factors, including, without limitation, our payroll cost and certain other approved expenses over an eight to twenty-four week period starting upon our receipt of the funds. Expenses for payroll costs, lease payments on agreements before February 15, 2020, utility payments under agreements before February 1, 2020 and certain other specified costs can be utilized from these funds and eligible for payment forgiveness by the federal government. At least 60% of the proceeds must be used for approved payroll costs, and no more than 40% on non-payroll expenses. Management believes our use of our PPP Loan proceeds for the approved expense categories will generally be fully forgiven if we satisfy certain employee headcount and compensation conditions. The PPP loan has a maturity date of April 13, 2022 and management currently believes this loan will be forgiven before maturity. The stated interest rate on this loan is 1% if not forgiven. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions The Company had the following related-party activity with members as of or during the year ending September 30: 2020 2019 2018 Member A Corn purchased for fiscal year $ 9,906,905 $ 8,626,906 $ 17,960,954 Corn forward purchase commitment $ 140,348 $ — $ 6,647 Basis corn commitment - bushels 800,000 80,000 400,000 Miscellaneous purchases $ — $ 1,617 $ 2,579 Amount due at fiscal year end $ 198,557 $ 2,707 $ 65,387 Member B Corn purchased for fiscal year $ 21,712,272 $ 12,527,197 $ 11,818,241 Corn forward purchase commitment $ 115,714 $ 376,000 $ 14,103 Basis corn commitment - bushels — — 150,000 Amount due at fiscal year end $ 162,225 $ 52,486 $ 98,179 Member C Corn purchased for fiscal year $ 5,412,716 $ 14,400,120 $ 5,146,781 Corn forward purchase commitment $ 69,200 $ 22,080 $ 34,366 Basis corn commitment - bushels — — 205,000 Amount due at fiscal year end $ — $ 37,652 $ 234,238 Other Members Corn purchased for fiscal year $ 17,419,742 $ 9,070,359 $ 7,614,288 Corn forward purchase commitment $ 122,748 $ 1,822,111 $ 1,761,514 Amount due at fiscal year end $ 67,635 $ 132,737 $ 259,329 On January 15, 2020, the Company entered into a Management Services Agreement with Husker Ag, LLC (“Husker Ag”) for management services pertaining to the Company’s ethanol facility. Effective April 1, 2020, the Company entered into an Amended and Restated Management Services Agreement (the “Management Agreement”) with HALE, LLC, an affiliate of Husker Ag (“HALE”), which replaced and superseded the original Management Services Agreement between the Company and Husker Ag. Pursuant to the terms of the Management Agreement, HALE now provides management services to the Company’s ethanol facility, including providing the Company with individuals to (a) serve as General Manager, Environmental and Safety Manager, Commodity Risk Manager, and to fill such other positions as may be necessary from time to time; and (b) perform the respective management services for each such position. For the year ended September 30, 2020, 2019 and 2018 Lincolnway Energy incurred expenses of $432,717, $0 and $0 respectively, due to Husker Ag LLC for services and out-of-pocket travel expenses. At September 30, 2020 and 2019 $2,096 and $0 was included in accrued expenses on the balance sheet, respectively. Effective March 31, 2020, the Company and HALE entered into a Preferred Membership Unit Purchase Agreement (the “MUPA”) pursuant to which HALE purchased 42,049 new Class A Units of the Company for an aggregate price of $5,000,000. Effective on May 28, 2020, in accordance with the terms of the MUPA, HALE purchased an additional 14,037 Class A Units for an aggregate price of $1,669,176. As a result, HALE holds a total of 56,086 new Class A Units. In connection with the investment by HALE in the Company and pursuant to the terms of the MUPA and the Company’s current operating agreement, HALE has the right to appoint four of the Company’s seven directors (the “Class A Directors”). The Class A Directors serve until they resign or HALE removes them. The remaining three directors are elected by the members holding Common Units and Class B Units. The Company entered into a management services agreement with Flag Leaf Financial Management, Inc. ("Flag Leaf") during July 2019. Pursuant to the agreement, the Company incurred expense of $175,338, $45,544 and $0, respectively for the years ending September 30, 2020, 2019 and 2018. At September 30, 2020 and 2019 there was $8,910 and $10,581 respectively, included as accrued expenses on the balance sheet. LKPK Holdings, LLC ("LKPK") purchased 165 Class B units during May 2020. LKPK is owned 100% by Flag Leaf. |
Risk Management
Risk Management | 12 Months Ended |
Sep. 30, 2020 | |
Risk Management [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 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 commodity markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market fluctuations. The Company’s specific goal is to protect the Company from large moves in the commodity costs. To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange-traded futures and options contracts to minimize its net position of merchandisable agricultural commodity inventories and forward purchases and sales contracts. Exchange traded futures and options contracts are designated as non-hedge derivatives and are valued at market price with changes in market price recorded in operating income through cost of goods sold for corn and natural gas derivatives and through revenue for ethanol derivatives. Derivatives not designated as hedging instruments as of September 30 are as follows: 2020 2019 Derivative assets - corn contracts $ 675 $ 531,875 Derivative assets - ethanol contracts 33,107 — Derivative liabilities - corn contracts (243,825) (93,650) Derivative liabilities - ethanol contracts (93,335) — Cash due from (due to) broker 603,854 (249,531) Total $ 300,476 $ 188,694 The effects on operating income from derivative activities for the years ending September 30, are as follows: 2020 2019 2018 Gains (losses) in revenue due to derivatives related to ethanol sales: Realized gain (loss) $ 69,624 $ 21,525 $ (26,649) Unrealized (loss) (60,228) — — Total effect on revenues 9,396 21,525 (26,649) Gains (losses) in cost of goods sold due to derivatives related to corn costs: Realized gain 1,587,758 1,014,033 1,332,317 Unrealized gain (loss) (878,500) (359,450) 325,878 Total effect on corn costs 709,258 654,583 1,658,195 Gains (losses) in cost of goods sold due to derivatives related to natural gas costs: Realized gain — 13,660 65,769 Unrealized gain — 3,460 3,940 Total effect on natural gas costs — 17,120 69,709 Total effect on cost of goods sold $ 709,258 $ 671,703 $ 1,727,904 Total gain to operating income due to derivative activities $ 718,654 $ 693,228 $ 1,701,255 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be 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. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. 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 the CME and NYMEX markets. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the over-the-counter markets. The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: 2020 Total Level 1 Level 2 Level 3 Assets, derivative financial instruments $ 33,782 $ 33,782 $ — $ — Liabilities, derivative financial instruments $ (337,160) $ (337,160) $ — $ — 2019 Total Level 1 Level 2 Level 3 Assets, derivative financial instruments $ 531,875 $ 531,875 $ — $ — Liabilities, derivative financial instruments $ (93,650) $ (93,650) $ — $ — |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company adopted a 401(k) plan covering substantially all employees. The Company provides matching contributions of 50% for up to 6% of employee compensation. Company contributions and plan expenses for the years ended September 30, 2020, 2019 and 2018 totaled $40,395, $54,670 and $58,112, respectively. |
Quarterly Financial Data (Notes
Quarterly Financial Data (Notes) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) The following table presents summarized quarterly financial data for the years ended September 30, 2020 and 2019. 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Revenue $29,002,735 $24,376,894 $20,136,749 $31,640,174 Gross profit (loss) 1,109,377 (2,087,314) 1,320,605 3,741,873 Operating income (loss) 298,839 (3,041,935) 554,526 2,939,790 Net income (loss) (24,218) (3,129,698) 303,248 3,170,644 Basic & diluted earnings (loss) per unit (0.58) (73.64) 3.30 30.16 12/31/2018 3/31/2019 6/30/2019 9/30/2019 Revenue $20,371,692 $24,333,321 $26,488,313 $26,193,014 Gross (loss) (3,923,425) (571,870) (1,649,179) (1,545,148) Operating (loss) (4,784,408) (1,455,824) (7,062,296) (2,256,673) Net (loss) (1,836,126) (1,430,642) (7,394,842) (2,587,196) Basic & diluted (loss) per unit (43.67) (34.03) (175.87) (61.53) |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Note receivable [Policy Text Block] | Note receivable: On March 28, 2019, the Company recorded a note receivable totaling $4,080,000 for a component of the construction in progress (the dryer) that failed to meet required specifications. The vendor issued a promissory note to the Company, which is personally guaranteed by principals of the vendor. The full amount of the note receivable plus interest is currently due and payable. During the year ended September 30, 2019, management determined based on communication from the vendor and lack of payment that the note receivable, including interest of $60,809, should be fully reserved at June 30, 2019. Bad debt expense of $0, $4,385,009, and $0 was recorded during the years ended September 30, 2020, 2019, and 2018, respectively. |
Nature of Operations [Text Block] | Principal business activity : Lincolnway Energy, LLC (the "Company"), located in Nevada, Iowa, was formed in May 2004 to pool investors to build a 50 million gallon annual production dry mill corn-based ethanol plant. The Company began making sales on May 30, 2006 and became operational during the quarter ended June 30, 2006. The Company is directly influenced by commodity markets and the agricultural and energy industries and, accordingly, its results of operations and financial condition may be significantly affected by cyclical market trends and the regulatory, political and economic conditions in these industries. |
Use of estimates | Use of estimates : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Although the Company maintains its cash accounts in one bank, the Company believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Trade accounts receivable | Trade accounts receivable: Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers financial condition, credit history and current economic conditions. Receivables are written off when deemed uncollectible. Recoveries of receivable |
Deferred Revenue [Policy Text Block] | Deferred revenue: Deferred revenue represents fees received under a service agreement in advance of services being performed. The related revenue was deferred and recognized as the services were performed over the 10 year agreement. On December 17, 2018, the Company entered into a settlement agreement in connection with the early termination of the contract. The settlement totaled approximately $3,000,000 and was included in other income and the remaining deferred revenue of approximately $420,000 was recognized during the year ended September 30, 2019. |
Inventories | Inventories: Inventories are generally valued at the lower of net realizable value or actual cost using the first-in, first-out method. 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. For the fiscal years ended September 30, 2020 and September 30, 2019 the Company recognized a reserve and resulting loss of approximately $0 and $76,000, respectively, for a lower of net realizable value or cost inventory adjustment. |
Property and equipment | Property and equipment: Property and equipment is stated at cost. Construction in progress is comprised of costs related to the projects that are not completed. Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 20 Buildings and improvements 40 Plant and process equipment 5 20 Office furniture and equipment 3 7 Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. When circumstances or events arise that questions an asset's usefulness, the asset is evaluated for future use and appropriate carrying value. The Company evaluates the carrying value of long-lived tangible assets when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and circumstances include, but are not limited to, significant decreases in the market value of the asset, adverse changes in the extent or manner in which the asset is being used, significant changes in business climate, or current or projected cash flow losses associated with the use of the assets. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from such assets are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. For long-lived assets to be held for use in future operations and for fixed (tangible) assets, fair value is determined primarily using either the projected cash flows discounted at a rate commensurate with the risk involved or an appraisal. For long-lived assets to be disposed of by sale or other than sale, fair value is determined in a similar manner, except that fair values are reduced for disposal costs. |
Derivative financial instruments | Derivative financial instruments: The Company periodically enters into derivative contracts to hedge the Company’s exposure to price risk related to forecasted corn needs, forward corn purchase contracts and ethanol sales. The Company does not typically enter into derivative instruments other than for hedging purposes. All the derivative contracts are recognized on the balance sheet at their fair market value. Although the Company believes its derivative positions are economic hedges, none have been designated as a hedge for accounting purposes. Accordingly, any realized or unrealized gain or loss related to corn and natural gas derivatives is recorded in the statement of operations as a component of cost of goods sold. Any realized or unrealized gain or loss related to ethanol derivative instruments is recorded in the statement of operations as a component of revenue. The Company reports all contracts with the same counter party on a net basis on the balance sheet. Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company’s financial statements. Forward contracts with delivery dates with 30 days that can be reasonably estimated are subject to a lower of cost or net realizable value assessment. The Company recognized a reserve and resulting accrued loss on purchase commitments of approximately $0 and $67,591 as of September 30, 2020 and 2019, respectively. |
Revenue recognition | Revenue recognition: The Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), October 1, 2019, using the modified retrospective method. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company generally recognized revenue at a point and time. The implementation of the new standard did not result in any changes to the measurement or recognition of revenue for prior periods, however, additional disclosures have been added in accordance with the ASU. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of ethanol • sales of distillers grains • sales of corn oil Shipping costs incurred by the Company in the sale of ethanol, distillers grains and corn oil are not specifically identifiable and as a result, are recorded based on the net selling price. Railcar lease costs incurred by the Company in the sale of its products are included in the cost of goods sold. Revenue from the sale of the Company’s ethanol and distillers grains is recognized at the time title, control and all risks of ownership transfer to the marketing company. This generally occurs upon the loading of the product. For ethanol, title and control passes at the time the product crosses the loading flange in either a railcar or truck. For distillers grain, title and control passes upon the loading into trucks or railcars. Corn oil is marketed internally. Revenue is recognized when title and control of ownership transfers, upon loading. Shipping and handling costs incurred by the Company for the sale of distillers grain are included in costs of goods sold. Ethanol revenue is reported free on board (FOB) and all shipping and handling costs are incurred by the ethanol marketer. Commissions for the marketing and sale of ethanol and distiller grains are included in costs of goods sold. Revenue by product is as follows: (In thousands) 2020 2019 2018 Ethanol $ 80,106 $ 75,224 $ 77,709 Distillers Grain 19,196 15,329 16,821 Corn Oil 4,616 5,487 5,545 Other 1,238 1,346 1,975 |
Income taxes | Income taxes: The Company is organized as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Management has evaluated the Company's material tax positions and determined there were no uncertain tax positions that require adjustment to the financial statements. The Company does not currently anticipate significant changes in its uncertain tax positions over the next twelve months. |
Earnings per unit | Earnings per unit : Basic and diluted net income (loss) per unit have been computed on the basis of the weighted average number of units outstanding during each period presented. On March 31, 2020, 42,049 new Class A Units were issued, which Class A Units are a separate class of unit than the units issued to existing members which have been renamed “Common Units”. On May 28, 2020, the Company issued an additional 14,037 Class A Units and 6,987 new Class B Units. The combined issuance of Class A Units is 56,086 units and the total issuance of Class B Units is 6,987 units. There are also 42,049 Common Units outstanding for an aggregate number of 105,122 units outstanding comprised of Class A Units, Class B Units and Common Units. The weighted average number of units is based on days outstanding for the reporting period. The Class A Units and Class B Units have a liquidation preference which provides that in the event of a liquidation or deemed liquidation, the Class A and Class B members will receive the return of their capital contributions, reduced by the amount of distributions received, prior to the holders of Common Units receiving any proceeds. |
Fair value of financial instruments | Fair value of financial instruments: The carrying amounts of cash and cash equivalents, derivative financial instruments, trade and other accounts receivable, accounts payable and accrued expenses approximate fair value. These instruments are considered Level 1 measurements under the fair value hierarchy. Long term debt approximates fair value and commensurate with the market as the agreement was recently amended in the current year. The inputs for long term debt are considered a Level 3. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements: In February 2016, Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-02 "Leases" (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous Generally Accepted Accounting Principles ("GAAP"). ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases): (1) a lease liability, which is a lessee's obligation to make lease payments arising from the lease, measured on a discounted cash flow basis; and (2) a "right of use" asset, which is an asset that represents the lessee's right to use the specified asset for the lease term. The Company adopted this accounting standard effective October 1, 2019. Upon adoption, the Company elected a practical expedient which allows existing leases to retain their classification as operating leases. Additionally, the Company has elected to account for lease and related non-lease components as a single lease component. The Company elected the option to apply the transition provisions at adoption date instead of the earliest comparative period presented in the financial statements. Due to this election, the Company is not required to retrospectively apply the standard to the previous periods presented. See additional disclosure in Note 7. |
Risk and Uncertainties | Risks and Uncertainties: The COVID-19 pandemic is currently impacting countries, communities, supply chains and commodities markets, in addition to the global financial markets. This pandemic has resulted in social distancing, travel bans, governmental stay-at-home orders, and quarantines, and these may limit access to our facilities, customers, suppliers, management, support staff and professional advisors. At this time it is not possible to fully assess the impact of the COVID-19 pandemic on the Company’s operations and capital requirements, but the aforementioned factors, among other things, may impact our operations, financial condition and demand for our products, as well as our overall ability to react timely and mitigate the impact of this event. Depending on its severity and longevity, the COVID-19 pandemic may have a material adverse effect on our business, customers, and members. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 20 Buildings and improvements 40 Plant and process equipment 5 20 Office furniture and equipment 3 7 |
Schedule of Revenue by Product | Revenue by product is as follows: (In thousands) 2020 2019 2018 Ethanol $ 80,106 $ 75,224 $ 77,709 Distillers Grain 19,196 15,329 16,821 Corn Oil 4,616 5,487 5,545 Other 1,238 1,346 1,975 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Capital Units | the following table. 2020 2019 2018 Class A Units 56,086 — — Class B Units 6,987 — — Common Units 42,049 42,049 42,049 Total 105,122 42,049 42,049 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following as of September 30: 2020 2019 Raw materials, including corn, chemicals, parts and supplies $ 5,292,339 $ 4,902,526 Work in process 653,680 900,459 Ethanol and distillers grain 1,299,681 637,731 Total $ 7,245,700 $ 6,440,716 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Long-term Debt, Current and Noncurrent [Abstract] | |
Schedule of Debt Reduction | Maximum Commitment Amount From Up to and Including $20,000,000 October 20, 2021 October 19, 2022 $15,000,000 October 20, 2022 October 19, 2023 $10,000,000 October 20, 2023 October 1, 2024 |
Related-Party Transactions Rela
Related-Party Transactions Related Party Transaction (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The Company had the following related-party activity with members as of or during the year ending September 30: 2020 2019 2018 Member A Corn purchased for fiscal year $ 9,906,905 $ 8,626,906 $ 17,960,954 Corn forward purchase commitment $ 140,348 $ — $ 6,647 Basis corn commitment - bushels 800,000 80,000 400,000 Miscellaneous purchases $ — $ 1,617 $ 2,579 Amount due at fiscal year end $ 198,557 $ 2,707 $ 65,387 Member B Corn purchased for fiscal year $ 21,712,272 $ 12,527,197 $ 11,818,241 Corn forward purchase commitment $ 115,714 $ 376,000 $ 14,103 Basis corn commitment - bushels — — 150,000 Amount due at fiscal year end $ 162,225 $ 52,486 $ 98,179 Member C Corn purchased for fiscal year $ 5,412,716 $ 14,400,120 $ 5,146,781 Corn forward purchase commitment $ 69,200 $ 22,080 $ 34,366 Basis corn commitment - bushels — — 205,000 Amount due at fiscal year end $ — $ 37,652 $ 234,238 Other Members Corn purchased for fiscal year $ 17,419,742 $ 9,070,359 $ 7,614,288 Corn forward purchase commitment $ 122,748 $ 1,822,111 $ 1,761,514 Amount due at fiscal year end $ 67,635 $ 132,737 $ 259,329 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | At September 30, 2020, the Company had the following approximately future minimum rental commitments through September 30 of each year: 2021 $2,272,104 2022 1,999,704 2023 1,704,210 2024 1,399,875 2025 707,750 Thereafter 174,000 Total $8,257,643 A reconciliation of undiscounted future payments in the schedule above and the lease liability recognized in the balance sheet as of September 30, 2020 is shown below: Undiscounted future payments $8,257,643 Discount effect 1,078,371 Total $7,179,272 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Risk Management [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Derivatives not designated as hedging instruments as of September 30 are as follows: 2020 2019 Derivative assets - corn contracts $ 675 $ 531,875 Derivative assets - ethanol contracts 33,107 — Derivative liabilities - corn contracts (243,825) (93,650) Derivative liabilities - ethanol contracts (93,335) — Cash due from (due to) broker 603,854 (249,531) Total $ 300,476 $ 188,694 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effects on operating income from derivative activities for the years ending September 30, are as follows: 2020 2019 2018 Gains (losses) in revenue due to derivatives related to ethanol sales: Realized gain (loss) $ 69,624 $ 21,525 $ (26,649) Unrealized (loss) (60,228) — — Total effect on revenues 9,396 21,525 (26,649) Gains (losses) in cost of goods sold due to derivatives related to corn costs: Realized gain 1,587,758 1,014,033 1,332,317 Unrealized gain (loss) (878,500) (359,450) 325,878 Total effect on corn costs 709,258 654,583 1,658,195 Gains (losses) in cost of goods sold due to derivatives related to natural gas costs: Realized gain — 13,660 65,769 Unrealized gain — 3,460 3,940 Total effect on natural gas costs — 17,120 69,709 Total effect on cost of goods sold $ 709,258 $ 671,703 $ 1,727,904 Total gain to operating income due to derivative activities $ 718,654 $ 693,228 $ 1,701,255 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: 2020 Total Level 1 Level 2 Level 3 Assets, derivative financial instruments $ 33,782 $ 33,782 $ — $ — Liabilities, derivative financial instruments $ (337,160) $ (337,160) $ — $ — 2019 Total Level 1 Level 2 Level 3 Assets, derivative financial instruments $ 531,875 $ 531,875 $ — $ — Liabilities, derivative financial instruments $ (93,650) $ (93,650) $ — $ — |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table presents summarized quarterly financial data for the years ended September 30, 2020 and 2019. 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Revenue $29,002,735 $24,376,894 $20,136,749 $31,640,174 Gross profit (loss) 1,109,377 (2,087,314) 1,320,605 3,741,873 Operating income (loss) 298,839 (3,041,935) 554,526 2,939,790 Net income (loss) (24,218) (3,129,698) 303,248 3,170,644 Basic & diluted earnings (loss) per unit (0.58) (73.64) 3.30 30.16 12/31/2018 3/31/2019 6/30/2019 9/30/2019 Revenue $20,371,692 $24,333,321 $26,488,313 $26,193,014 Gross (loss) (3,923,425) (571,870) (1,649,179) (1,545,148) Operating (loss) (4,784,408) (1,455,824) (7,062,296) (2,256,673) Net (loss) (1,836,126) (1,430,642) (7,394,842) (2,587,196) Basic & diluted (loss) per unit (43.67) (34.03) (175.87) (61.53) |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies Textuals (Details) gal in Millions | 12 Months Ended | ||||
Sep. 30, 2020USD ($)sharesgal | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 28, 2020shares | Mar. 31, 2020shares | |
Product Information [Line Items] | |||||
Annual ethanol production | gal | 50 | ||||
Accounts Receivable, Allowance for Credit Loss | $ 0 | $ 0 | |||
Convertible Note Receivable Guarantee | 4,080,000 | ||||
Interest Income Reserve | 60,809 | ||||
Bad Debt Expense | 0 | 4,385,009 | $ 0 | ||
services contract termination settlement | 3,000,000 | ||||
Deferred Revenue, Revenue Recognized | 420,000 | ||||
Inventory Write-down | 0 | 76,000 | |||
Operating Lease, Right-of-Use Asset | 7,179,272 | 0 | |||
Accrued Loss on Purchase Commitments | $ 0 | $ 67,591 | |||
Common Unit, Issued | shares | 105,122 | ||||
Common Class A [Member] | |||||
Product Information [Line Items] | |||||
Common Unit, Issued | shares | 56,086 | 14,037 | 42,049 | ||
Common Class B [Member] | |||||
Product Information [Line Items] | |||||
Common Unit, Issued | shares | 6,987 | 6,987 | |||
Common Stock [Member] | |||||
Product Information [Line Items] | |||||
Common Unit, Issued | shares | 42,049 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 0 | $ 0 |
Land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 20 years | |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 40 years | |
Plant and process equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Plant and process equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 20 years | |
Office furniture and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 7 years |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies Revenue by Product (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues (Notes 1 and 7) | $ 31,640,174 | $ 20,136,749 | $ 24,376,894 | $ 29,002,735 | $ 26,193,014 | $ 26,488,313 | $ 24,333,321 | $ 20,371,692 | $ 105,156,552 | $ 97,386,340 | $ 102,050,976 |
Ethanol [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues (Notes 1 and 7) | 80,106,000 | 75,224,000 | 77,709,000 | ||||||||
Distiller's Grain [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues (Notes 1 and 7) | 19,196,000 | 15,329,000 | 16,821,000 | ||||||||
Corn Oil | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues (Notes 1 and 7) | 4,616,000 | 5,487,000 | 5,545,000 | ||||||||
Other Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues (Notes 1 and 7) | $ 1,238,000 | $ 1,346,000 | $ 1,975,000 |
Members' Equity (Details)
Members' Equity (Details) - shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Members' Equity [Abstract] | |||
Stockholders' Equity Note Disclosure [Text Block] | Members' Equity As of September 30, 2020 and 2019 there were 105,122 and 42,049 outstanding member units, respectively as indicated in the following table. 2020 2019 2018 Class A Units 56,086 — — Class B Units 6,987 — — Common Units 42,049 42,049 42,049 Total 105,122 42,049 42,049 Income and losses are allocated to all members based on their pro rata ownership interest. All unit transfers are effective the last day of the month. Units may be issued or transferred only to persons eligible to be members of the Company and only in compliance with the provisions of the Company's operating agreement and unit assignment policy. The Company is organized as an Iowa limited liability company. Members' liability is limited as specified in the Company's operating agreement and pursuant to the Iowa Limited Liability Company Act. The duration of the Company shall be perpetual unless dissolved as provided in the operating agreement. | ||
Capital Unit [Line Items] | |||
Common Unit, Outstanding | 105,122 | 42,049 | 42,049 |
Common Class A [Member] | |||
Capital Unit [Line Items] | |||
Common Unit, Outstanding | 56,086 | 0 | 0 |
Common Class B [Member] | |||
Capital Unit [Line Items] | |||
Common Unit, Outstanding | 6,987 | 0 | 0 |
Common Stock [Member] | |||
Capital Unit [Line Items] | |||
Common Unit, Outstanding | 42,049 | 42,049 | 42,049 |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials, including corn, coal, chemicals and supplies | $ 5,292,339 | $ 4,902,526 |
Work in process | 653,680 | 900,459 |
Ethanol and distillers grain | 1,299,681 | 637,731 |
Inventory total | $ 7,245,700 | $ 6,440,716 |
Revolving Credit Loan (Details)
Revolving Credit Loan (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Line of Credit Facility [Line Items] | ||
Description of variable rate basis | LIBOR | |
Basis spread on variable rate | 3.75% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | |
Line of Credit Facility, Outstanding Balance | $ 0 | $ 300,000 |
Revolving Promissory Note [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 3.75% | |
Line of Credit Facility, Interest Rate During Period | 3.90% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |
Line of Credit Facility, Outstanding Balance | $ 0 | $ 300,000 |
Revolving Term Loan, Maximum Borrowing Capacity | $ 4,000,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |||
Oct. 01, 2024 | Oct. 19, 2023 | Oct. 19, 2022 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | ||||
Basis spread on variable rate | 3.75% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.90% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||
Revolving Term Loan, Outstanding Balance | $ 21,700,000 | $ 25,000,000 | |||
Letter of Credit, Maximum Amount | 1,307,525 | ||||
Letters of Credit Outstanding, Amount | 1,307,525 | $ 1,518,450 | |||
PPP Loan | $ 505,700 | ||||
PPP Loan, minimum percentage applied to payroll | 60.00% | ||||
PPP Loan, maximum percentage applied to payroll | 40.00% | ||||
Debt Instrument, Interest Rate During Period | 1.00% | ||||
Revolving Term Loan, Maximum Borrowing Capacity | $ 25,000,000 | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Term Loan, Maximum Borrowing Capacity | $ 10,000,000 | $ 15,000,000 | $ 20,000,000 | ||
Revolving Term Loan, Debt reduction | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 12 Months Ended | ||||
Sep. 30, 2020USD ($)sharesbu | Sep. 30, 2019USD ($)bu | Sep. 30, 2018USD ($)bu | May 28, 2020USD ($)shares | Mar. 31, 2020USD ($)shares | |
Related Party Transaction [Line Items] | |||||
Management Fee Expense | $ 432,717 | $ 0 | $ 0 | ||
accrued management fees | $ 2,096 | 0 | |||
Common Unit, Issued | shares | 105,122 | ||||
Common Unit, Issuance Value | $ 7,500,000 | 0 | 7,500,000 | ||
Common Class A [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common Unit, Issued | shares | 56,086 | 14,037 | 42,049 | ||
Common Class B [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common Unit, Issued | shares | 6,987 | 6,987 | |||
Key Coop [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 9,906,905 | 8,626,906 | 17,960,954 | ||
Purchase commitment, remaining minimum amount committed | $ 140,348 | $ 0 | $ 6,647 | ||
Corn basis forward contract | bu | 800,000 | 80,000 | 400,000 | ||
Miscellaneous purchases | $ 0 | $ 1,617 | $ 2,579 | ||
Accounts payable, related parties, current | 198,557 | 2,707 | 65,387 | ||
Heartland [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | 21,712,272 | 12,527,197 | 11,818,241 | ||
Purchase commitment, remaining minimum amount committed | $ 115,714 | $ 376,000 | $ 14,103 | ||
Corn basis forward contract | bu | 0 | 0 | 150,000 | ||
Accounts payable, related parties, current | $ 162,225 | $ 52,486 | $ 98,179 | ||
Mid Iowa Cooperative [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | 5,412,716 | 14,400,120 | 5,146,781 | ||
Purchase commitment, remaining minimum amount committed | $ 69,200 | $ 22,080 | $ 34,366 | ||
Corn basis forward contract | bu | 0 | 0 | 205,000 | ||
Accounts payable, related parties, current | $ 0 | $ 37,652 | $ 234,238 | ||
Other Members [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | 17,419,742 | 9,070,359 | 7,614,288 | ||
Purchase commitment, remaining minimum amount committed | 122,748 | 1,822,111 | 1,761,514 | ||
Accounts payable, related parties, current | $ 67,635 | 132,737 | 259,329 | ||
HALLE LLC [Member] | Common Class A [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common Unit, Issued | shares | 14,037 | 42,049 | |||
Common Unit, Issuance Value | $ 1,669,176 | $ 5,000,000 | |||
Total Units owned | shares | 56,086 | ||||
Flag Leaf Financial Management Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Professional Fees | $ 175,338 | 45,544 | $ 0 | ||
Accrued Professional Fees | $ 8,910 | $ 10,581 | |||
LKPK Holdings LLC, ownership | 100.00% | ||||
LKPK Holdings LLC [Member] | Common Class B [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common Unit, Issued | shares | 165 |
Commitments and Major Customer
Commitments and Major Customer and Subsequent Event (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020USD ($)gal | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($)Tgal | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 31,640,174 | $ 20,136,749 | $ 24,376,894 | $ 29,002,735 | $ 26,193,014 | $ 26,488,313 | $ 24,333,321 | $ 20,371,692 | $ 105,156,552 | $ 97,386,340 | $ 102,050,976 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 7,179,000 | ||||||||||
Long-term Debt, Current Maturities | 2,272,104 | 2,272,104 | |||||||||
Long-Term Debt, Maturity, Year Two | 1,999,704 | 1,999,704 | |||||||||
Long-Term Debt, Maturity, Year Three | 1,704,210 | 1,704,210 | |||||||||
Long-Term Debt, Maturity, Year Four | 1,399,875 | 1,399,875 | |||||||||
Long-Term Debt, Maturity, Year Five | 707,750 | 707,750 | |||||||||
Long-Term Debt, Maturity, after Year Five | 174,000 | 174,000 | |||||||||
Long-term Debt | 8,257,643 | 8,257,643 | |||||||||
Accumulated Amortization, Debt Issuance Costs, Noncurrent | 1,078,371 | ||||||||||
Operating Lease, Liability, Present Value | 7,179,272 | ||||||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 8,257,643 | $ 8,257,643 | |||||||||
Minimum [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Lessee, Operating Lease, Discount Rate | 3.68% | 3.68% | |||||||||
Maximum [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Lessee, Operating Lease, Discount Rate | 6.23% | 6.23% | |||||||||
Distiller's Grain Customer Two [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 19,196,000 | 15,329,000 | 16,933,000 | ||||||||
Distillers grains receivable | $ 685,000 | 541,000 | $ 685,000 | 541,000 | |||||||
Supply Commitment, Future Sales Commitment, tons | T | 16,000 | ||||||||||
Sales Commitments (in Dollars) | $ 2,000,000 | ||||||||||
Ethanol Customer One [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 80,106,000 | 75,224,000 | 77,709,000 | ||||||||
Ethanol Customer One [Member] | Ethanol Customer Two [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 80,097,000 | 75,203,000 | |||||||||
Ethanol receivable | $ 3,255,000 | $ 2,447,000 | $ 3,255,000 | $ 2,447,000 | |||||||
Sales commitments (in gallons or tons) | gal | 14,400,000 | 14,400,000 | |||||||||
Ethanol Customer One [Member] | Ethanol Customer One [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 77,736,000 |
Commitments and Major Custome_2
Commitments and Major Customer and Subsequent Event Purchase Committments (Details) | 12 Months Ended |
Sep. 30, 2020USD ($)MMBTUbu | |
Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 1,292,000 |
Purchase Commitment, Remaining Minimum Amount Committed, Bushels | bu | 384,000 |
Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 1,200,000 |
Purchase Obligation | 3,600,000 |
Purchase Commitment, Transportation Fees | $ 138,000 |
Long-term Purchase Commitment, Minimum Energy Volume Required | MMBTU | 82,000 |
Risk Management (Details)
Risk Management (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Derivative assets - corn contracts | $ 33,782 | $ 531,875 | |
Receivables from Brokers-Dealers and Clearing Organizations | (603,854) | 249,531 | |
Total | 300,476 | 188,694 | |
Trading Activity, Gains and Losses, Net | 718,654 | 693,228 | $ 1,701,255 |
Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 709,258 | 671,703 | 1,727,904 |
Corn [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Derivative assets - corn contracts | 675 | 531,875 | |
Derivative liabilities - corn contracts | (243,825) | (93,650) | |
Corn [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 709,258 | 654,583 | 1,658,195 |
Corn [Member] | Gain (Loss) on Settlement of Derivative Instrument [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 1,587,758 | 1,014,033 | 1,332,317 |
Corn [Member] | Unrealized Gain (Loss or Write-down) [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | (878,500) | (359,450) | 325,878 |
Ethanol [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Derivative assets - corn contracts | 33,107 | 0 | |
Derivative liabilities - corn contracts | (93,335) | 0 | |
Trading Activity, Gains and Losses, Net | 9,396 | ||
Ethanol [Member] | Sales [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 21,525 | (26,649) | |
Ethanol [Member] | Gain (Loss) on Settlement of Derivative Instrument [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 69,624 | ||
Ethanol [Member] | Gain (Loss) on Settlement of Derivative Instrument [Member] | Sales [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 21,525 | (26,649) | |
Ethanol [Member] | Unrealized Gain (Loss or Write-down) [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | (60,228) | ||
Ethanol [Member] | Unrealized Gain (Loss or Write-down) [Member] | Sales [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 0 | 0 | |
Natural Gas [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 0 | 17,120 | 69,709 |
Natural Gas [Member] | Gain (Loss) on Settlement of Derivative Instrument [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | 0 | 13,660 | 65,769 |
Natural Gas [Member] | Unrealized Gain (Loss or Write-down) [Member] | Cost of Goods and Service Benchmark [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Trading Activity, Gains and Losses, Net | $ 0 | $ 3,460 | $ 3,940 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - corn contracts | $ 33,782 | $ 531,875 |
Liabilities, derivative financial instruments | (337,160) | (93,650) |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - corn contracts | 33,782 | 531,875 |
Liabilities, derivative financial instruments | 337,160 | 93,650 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - corn contracts | 0 | 0 |
Liabilities, derivative financial instruments | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - corn contracts | 0 | 0 |
Liabilities, derivative financial instruments | $ 0 | $ 0 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, maximum annual contribution per employee, percent | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 6.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 40,395 | $ 54,670 | $ 58,112 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues (Notes 1 and 7) | $ 31,640,174 | $ 20,136,749 | $ 24,376,894 | $ 29,002,735 | $ 26,193,014 | $ 26,488,313 | $ 24,333,321 | $ 20,371,692 | $ 105,156,552 | $ 97,386,340 | $ 102,050,976 |
Gross Profit | 3,741,873 | 1,320,605 | (2,087,314) | 1,109,377 | (1,545,148) | (1,649,179) | (571,870) | (3,923,425) | 4,084,541 | (7,689,622) | (282,934) |
Operating Income (Loss) | 2,939,790 | 554,526 | (3,041,935) | 298,839 | (2,256,673) | (7,062,296) | (1,455,824) | (4,784,408) | 751,220 | (15,559,201) | (3,519,550) |
Net Income (Loss) Attributable to Parent | $ 3,170,644 | $ 303,248 | $ (3,129,698) | $ (24,218) | $ (2,587,196) | $ (7,394,842) | $ (1,430,642) | $ (1,836,126) | $ 319,976 | $ (13,248,806) | $ (2,947,215) |
Earnings Per Share, Diluted | $ 30.16 | $ 3.30 | $ (73.64) | $ (0.58) | $ (61.53) | $ (175.87) | $ (34.03) | $ (43.67) | |||
Net income (loss) per unit - basic and diluted | $ 30.16 | $ 3.30 | $ (73.64) | $ (0.58) | $ (61.53) | $ (175.87) | $ (34.03) | $ (43.67) | $ 4.57 | $ (315.08) | $ (70.09) |
Uncategorized Items - lwenergy-
Label | Element | Value |
Cash | us-gaap_Cash | $ 690,513 |