Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-53036 | |
Entity Registrant Name | CARDINAL ETHANOL, LLC | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 20-2327916 | |
Entity Address, Address Line One | 1554 N. County Road 600 E. | |
Entity Address, City or Town | Union City | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47390 | |
City Area Code | 765 | |
Local Phone Number | 964-3137 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,606 | |
Entity Central Index Key | 0001352081 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash | $ 29,929,343 | $ 25,798,906 |
Restricted cash | 8,419,989 | 8,097,041 |
Trade accounts receivable | 24,624,227 | 13,386,410 |
Miscellaneous receivables | 573,890 | 404,273 |
Inventories | 38,337,108 | 26,587,032 |
Prepaid and other current assets | 571,488 | 212,261 |
Total current assets | 111,648,012 | 76,439,260 |
Property, Plant, and Equipment, Net | 70,620,993 | 69,399,645 |
Other Assets | ||
Operating lease right of use asset, net | 2,661,350 | 4,840,250 |
Investment | 1,259,770 | 1,259,770 |
Total other assets | 3,921,120 | 6,100,020 |
Total Assets | 186,190,125 | 151,938,925 |
Current Liabilities | ||
Due to broker | 104,311 | 0 |
Accounts payable | 4,359,417 | 3,564,614 |
Accounts payable - grain | 12,574,716 | 11,942,723 |
Accrued expenses | 1,898,478 | 2,111,295 |
Operating lease liability current | 2,199,795 | 3,132,242 |
Total current liabilities | 25,257,400 | 23,741,046 |
Long-Term Liabilities | ||
Operating lease long-term liabilities | 492,455 | 1,709,621 |
Liability for railcar rehabilitation costs | 1,966,537 | 1,750,680 |
Total long-term liabilities | 2,458,992 | 3,460,301 |
Commitments and Contingencies | ||
Members’ Equity | ||
Members' contributions, net of cost of raising capital, 14,606 units authorized, issued and outstanding | 70,912,213 | 70,912,213 |
Retained earnings | 87,561,520 | 53,825,365 |
Total members' equity | 158,473,733 | 124,737,578 |
Total Liabilities and Members’ Equity | 186,190,125 | 151,938,925 |
Futures & options derivatives | ||
Current Assets | ||
Derivatives | 7,918,725 | 964,418 |
Current Liabilities | ||
Derivatives | 3,952,736 | 2,331,889 |
Forward purchase/sales derivatives | ||
Current Assets | ||
Derivatives | 1,273,242 | 988,919 |
Current Liabilities | ||
Derivatives | $ 167,947 | $ 658,283 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - shares | Jun. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Capital units, authorized (in shares) | 14,606 | 14,606 |
Capital units, issued (in shares) | 14,606 | 14,606 |
Capital units, outstanding (in shares) | 14,606 | 14,606 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 133,261,052 | $ 117,272,974 | $ 417,490,683 | $ 308,424,904 |
Cost of Goods Sold | 104,607,396 | 107,665,033 | 343,766,849 | 289,525,280 |
Gross Profit | 28,653,656 | 9,607,941 | 73,723,834 | 18,899,624 |
Operating Expenses | 1,920,790 | 1,758,914 | 6,104,500 | 5,408,684 |
Operating Income | 26,732,866 | 7,849,027 | 67,619,334 | 13,490,940 |
Other Income (Expense) | ||||
Interest expense | (3,893) | (61,884) | (3,993) | (137,959) |
Miscellaneous income (expense) | 7,444,754 | (41,393) | 7,382,764 | 202,356 |
Total | 7,440,861 | (103,277) | 7,378,771 | 64,397 |
Net Income | $ 34,173,727 | $ 7,745,750 | $ 74,998,105 | $ 13,555,337 |
Weighted Average Units Outstanding - basic (in shares) | 14,606 | 14,606 | 14,606 | 14,606 |
Weighted Average Units Outstanding - diluted (in shares) | 14,606 | 14,606 | 14,606 | 14,606 |
Net Income Per Unit - basic (in dollars per shares) | $ 2,340 | $ 530 | $ 5,135 | $ 928 |
Net Income Per Unit - diluted (in dollars per shares) | 2,340 | 530 | 5,135 | 928 |
Distributions Per Unit (in dollars per shares) | $ 675 | $ 200 | $ 2,825 | $ 450 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 74,998,105 | $ 13,555,337 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 8,502,992 | 8,436,814 |
Change in fair value of commodity derivative instruments | (6,108,119) | 4,604,890 |
Loss on sale of equipment | 0 | 906,785 |
Forgiveness of Paycheck Protection Program loan | 0 | (856,665) |
Change in operating assets and liabilities: | ||
Trade accounts receivable | (11,237,817) | (10,100,285) |
Miscellaneous receivables | (169,617) | 92,701 |
Inventories | (11,750,076) | (6,109,172) |
Prepaid and other current assets | (359,227) | (285,104) |
Due to broker | 104,311 | (15,000) |
Accounts payable | 804,714 | (287,924) |
Accounts payable - grain | 631,993 | 1,180,496 |
Accrued expenses | (188,965) | (194,925) |
Liability for railcar rehabilitation costs | 215,857 | 223,560 |
Net cash provided by operating activities | 55,444,151 | 11,151,508 |
Cash Flows from Investing Activities | ||
Payments for construction in progress | (9,728,816) | (3,483,402) |
Net cash used for investing activities | (9,728,816) | (3,483,402) |
Cash Flows from Financing Activities | ||
Distributions paid | (41,261,950) | (6,572,700) |
Proceeds from revolving credit loan | 9,841,117 | 106,024,134 |
Payments on revolving credit loan | (9,841,117) | (106,024,134) |
Proceeds from long-term debt | 0 | 1,222,417 |
Net cash used for financing activities | (41,261,950) | (5,350,283) |
Net Increase in Cash and Restricted Cash | 4,453,385 | 2,317,823 |
Cash and Restricted Cash – Beginning of Period | 33,895,947 | 16,913,982 |
Cash and Restricted Cash – End of Period | 38,349,332 | 19,231,805 |
Reconciliation of Cash and Restricted Cash | ||
Cash - Balance Sheet | 29,929,343 | 7,695,998 |
Restricted Cash - Balance Sheet | 8,419,989 | 11,535,807 |
Cash and Restricted Cash | 38,349,332 | 19,231,805 |
Supplemental Cash Flow Information | ||
Interest paid | 3,993 | 126,365 |
Supplemental Disclosure of Non-cash Investing and Financing Activities | ||
Construction in process included in accrued expenses and accounts payable | $ 19,580 | $ 220,736 |
Condensed Statements of Changes
Condensed Statements of Changes in Members' Equity (Unaudited) - USD ($) | Total | Member Contributions | Retained Earnings |
Beginning balance at Sep. 30, 2020 | $ 108,947,350 | $ 70,912,213 | $ 38,035,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | (1,055,854) | 0 | (1,055,854) |
Member Distributions | (1,460,600) | 0 | (1,460,600) |
Ending balance at Dec. 31, 2020 | 106,430,896 | 70,912,213 | 35,518,683 |
Beginning balance at Sep. 30, 2020 | 108,947,350 | 70,912,213 | 38,035,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 13,555,337 | ||
Ending balance at Jun. 30, 2021 | 115,929,987 | 70,912,213 | 45,017,774 |
Beginning balance at Dec. 31, 2020 | 106,430,896 | 70,912,213 | 35,518,683 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 6,865,441 | 0 | 6,865,441 |
Member Distributions | (2,190,900) | 0 | (2,190,900) |
Ending balance at Mar. 31, 2021 | 111,105,437 | 70,912,213 | 40,193,224 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 7,745,750 | 0 | 7,745,750 |
Member Distributions | (2,921,200) | 0 | (2,921,200) |
Ending balance at Jun. 30, 2021 | 115,929,987 | 70,912,213 | 45,017,774 |
Beginning balance at Sep. 30, 2021 | 124,737,578 | 70,912,213 | 53,825,365 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 32,395,164 | 0 | 32,395,164 |
Member Distributions | (9,493,900) | 0 | (9,493,900) |
Ending balance at Dec. 31, 2021 | 147,638,842 | 70,912,213 | 76,726,629 |
Beginning balance at Sep. 30, 2021 | 124,737,578 | 70,912,213 | 53,825,365 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 74,998,105 | ||
Ending balance at Jun. 30, 2022 | 158,473,733 | 70,912,213 | 87,561,520 |
Beginning balance at Dec. 31, 2021 | 147,638,842 | 70,912,213 | 76,726,629 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 8,429,214 | 0 | 8,429,214 |
Member Distributions | (21,909,000) | 0 | (21,909,000) |
Ending balance at Mar. 31, 2022 | 134,159,056 | 70,912,213 | 63,246,843 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 34,173,727 | 0 | 34,173,727 |
Member Distributions | (9,859,050) | 0 | (9,859,050) |
Ending balance at Jun. 30, 2022 | $ 158,473,733 | $ 70,912,213 | $ 87,561,520 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended September 30, 2021, contained in the Company's annual report on Form 10-K. In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. Nature of Business Cardinal Ethanol, LLC (the “Company”), is an Indiana limited liability company currently producing fuel-grade ethanol, distillers grains, corn oil and carbon dioxide near Union City, Indiana and sells these products throughout the continental United States. During the nine months ended June 30, 2022 and 2021, the Company produced approximately 101,534,000 and 100,050,000 gallons of ethanol, respectively. In addition, the Company procures, transports, and sells grain commodities through grain operations. Reportable 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 are 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 Division. 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. • Trading Division. The Company has a grain loading facility within the Company's single site to buy, hold and sell inventories of agricultural grains, primarily soybeans. The Company performs no additional processing of these grains, unlike the corn inventory the Company holds and uses in ethanol production. The activities of buying, selling and holding of grains other than for ethanol and co-product production comprise this financial reporting segment. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Ethanol Division uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, inventories, the assumptions used in the analysis of the impairment of long lived assets, railcar rehabilitation costs, and inventory purchase commitments. The Trading Division uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, the valuation of inventory purchase and sale commitment derivatives and inventory at market. Actual results may differ from previously estimated amounts, and such differences may be material to the financial statements. 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 materially from those estimates. Cash The Company maintains its accounts primarily at two financial institutions. At times throughout the year the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Restricted Cash As a part of its commodities hedging activities, the Company is required to maintain cash balances with its commodities trading companies for initial and maintenance margins on a per futures contract basis. Changes in the market value of contracts may increase these requirements. As the futures contracts expire, the margin requirements also expire. Accordingly, the Company records the cash maintained with the traders in the margin accounts as restricted cash. Since this cash is immediately available upon request when there is a margin excess, the Company considers this restricted cash to be a current asset. Trade Accounts Receivable Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Amounts considered uncollectible are written off. The Company's estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any. At June 30, 2022 and September 30, 2021, the Company determined that an allowance for doubtful accounts was not necessary. Inventories Ethanol Division (see Reportable Segments) inventories consist of raw materials, work in process, finished goods and spare parts. Corn is the primary raw material. Finished goods consist of ethanol, dried distiller grains and corn oil. Inventories are stated at the lower of weighted average cost or net realizable value. Net realizable value is the estimated selling prices in the normal course of business, less reasonably predictable selling costs. Trading Division (see Reportable Segments) inventories consist of grain. Soybeans were the only grains held and traded at June 30, 2022 and September 30, 2021. These inventories are stated at market value less estimated selling costs, which may include reductions for quality. Property, Plant and Equipment Property, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight-line depreciation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. The Company has various capital projects scheduled for the 2022 fiscal year in order to make certain improvements to the ethanol plant and maintain the facility. These improvements include updates to the grain pits, yeast props, economizers, cyber security, and other small miscellaneous projects. The Company also invested in an ethanol recovery system, costing approximately $2,400,000. The project was funded through operations and was completed and placed into service during the first quarter of fiscal year 2022. The Company has plans to install a high protein feed system, costing approximately $46,570,000, which is payable in installments and is subject to adjustments pursuant to change orders. The Company expects to fund the project from operations and from current credit facilities as amended. Long-Lived Assets The Company reviews its long-lived assets, such as property, plant and equipment and financing costs, subject to depreciation and amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Management evaluated and determined no impairment write-downs were considered necessary for the nine months ended June 30, 2022 and 2021. Investment Investments consist of the capital stock and patron equities of the Company's distillers grains marketer. The investments are stated at the lower of cost or fair value and adjusted for non cash patronage equities and cash equity redemptions received. Non cash patronage dividends are recognized when received and included within revenue in the condensed statements of operations. 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. The Company's contracts primarily consist of agreements with marketing companies and other customers as described below. The Company's performance obligations consist of the delivery of ethanol, distillers' grains, corn oil, soybeans and carbon dioxide to its customers. The consideration the Company receives for these products is fixed based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. The Company's 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. The Company sells each of the products via different marketing channels as described below. • Ethanol. The Company sells its ethanol via a marketing agreement with Murex, LLC. Murex markets one hundred percent of the Company's ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Murex and the Company. Murex then provides a schedule of deliveries required and an order for each rail car or tankers needed to fulfill their commitment with the end user. These are individual performance obligations of the Company. The marketing agreement calls for control and title to pass when the delivery vehicle is filled. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and insurance. • Distillers grains. The Company engages another third-party marketing company, CHS, Inc, to market one hundred percent of the distillers grains it produces at the plant. The process for selling the distillers grains is like that of ethanol, except that CHS 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 among the three parties, and CHS provides schedules and orders representing performance obligations. Revenue is recognized net of commissions, freight, and fees. • Distillers corn oil (corn oil). The Company sells its production of corn oil directly to commercial customers. The customer is provided with a delivery schedule and pick up orders representing performance obligations. These are fulfilled when the customer’s driver picks up the scheduled load. The price is agreed upon at the time each contract is made, and the Company recognizes revenue at the time of delivery at that price. • Carbon dioxide. The Company sells a portion of the carbon dioxide it produces to a customer that maintains a plant on-site for a set price per ton. Delivery is defined as transference of the gas from the Company's stream to their plant. • Soybeans and other grains. The Company sells soybeans exclusively to commercial mills, processors or grain traders. Contracts are negotiated directly with the parties at prices based on negotiated prices. Cost of Goods Sold Cost of goods sold include corn, trading division grains, natural gas and other components which includes processing ingredients, electricity, railcar lease, railcar maintenance, depreciation of ethanol production fixed assets and wages, salaries and benefits of production personnel. Operating Expenses Operating expenses include wages, salaries and benefits of administrative employees at the plant, insurance, professional fees, depreciation of trading division fixed assets, property taxes and similar costs. 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 in the balance sheet 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 the statement of operations, depending on the item being hedged. 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 financial statements. The Company has elected for its Ethanol Division to apply the normal purchase normal sale exemption to all forward commodity contracts. For the Trading Division, the Company has elected not to apply the normal purchase normal sale exemption to its forward purchase and sales contracts and therefore, marks these derivative instruments to market. Net Income (Loss) per Unit Basic net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members' units outstanding during the period. Diluted net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income (loss) per unit are the same. |
REVENUE
REVENUE | 9 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition Revenue is recognized at a single point in time when the Company satisfies its performance obligation under the terms of a contract with a customer. Generally, this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration expected, as specified in the contract with a customer, to be received in exchange for transferring goods or providing services. Revenue by Source All revenues from contracts with customers under ASC Topic 606 are recognized at a point in time. The following tables disaggregate revenue by major source for the three and nine months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 84,706,603 $ — $ 84,706,603 Distillers' grains 18,261,386 — 18,261,386 Corn Oil 7,796,800 — 7,796,800 Carbon Dioxide 120,531 — 120,531 Other Revenue 13,450 15,900 29,350 Total revenues from contracts with customers 110,898,770 15,900 110,914,670 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 22,346,382 22,346,382 Total revenues from contracts accounted for as derivatives — 22,346,382 22,346,382 Total Revenues $ 110,898,770 $ 22,362,282 $ 133,261,052 Nine Months Ended June 30, 2022 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 272,527,573 $ — $ 272,527,573 Distillers' grains 47,450,158 — 47,450,158 Corn Oil 20,177,097 — 20,177,097 Carbon Dioxide 347,126 — 347,126 Other Revenue 73,800 82,556 156,356 Total revenues from contracts with customers 340,575,754 82,556 340,658,310 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 76,832,373 76,832,373 Total revenues from contracts accounted for as derivatives — 76,832,373 76,832,373 Total Revenues $ 340,575,754 $ 76,914,929 $ 417,490,683 Three Months Ended June 30, 2021 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 79,943,407 $ — $ 79,943,407 Distillers' grains 14,701,286 — 14,701,286 Corn Oil 4,977,755 — 4,977,755 Carbon Dioxide 121,288 — 121,288 Other Revenue 14,650 14,875 29,525 Total revenues from contracts with customers 99,758,386 14,875 99,773,261 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 17,499,713 17,499,713 Total revenues from contracts accounted for as derivatives — 17,499,713 17,499,713 Total Revenues $ 99,758,386 $ 17,514,588 $ 117,272,974 Nine Months Ended June 30, 2021 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 182,551,687 $ — $ 182,551,687 Distillers' grains 43,552,750 — 43,552,750 Corn Oil 12,030,379 — 12,030,379 Carbon Dioxide 368,038 — 368,038 Other Revenue 41,425 119,850 161,275 Total revenues from contracts with customers 238,544,279 119,850 238,664,129 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 69,760,775 69,760,775 Total revenues from contracts accounted for as derivatives — 69,760,775 69,760,775 Total Revenues $ 238,544,279 $ 69,880,625 $ 308,424,904 (1) Revenues from contracts accounted for as derivatives represent physically settled derivative sales that are outside the scope of ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606), where the company recognizes revenue when control of the inventory is transferred within the meaning of ASC Topic 606 as required by ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets. Payment Terms The Company has contractual payment terms with each respective marketer that sells ethanol and distillers grains. These terms are generally 7 - 14 days after the week of the transfer of control. The Company has standard payment terms of net 10 days for its sale for corn oil. The Company has standard payments terms due upon delivery for its sale of soybeans. The contractual terms with the carbon dioxide customer calls for an annual settlement. 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. Contract Liabilities |
CONCENTRATIONS
CONCENTRATIONS | 9 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | CONCENTRATIONSTwo major customers accounted for approximately 84% and 90% of the outstanding accounts receivable balance at June 30, 2022 and September 30, 2021, respectively. These same two customers accounted for approximately 77% of revenue for the nine months ended June 30, 2022 and 73% of revenue for the nine months ended June 30, 2021.UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS The Company has certain risks and uncertainties that it experiences during volatile market conditions, which can have a severe impact on operations. The Company's revenues are primarily derived from the sale and distribution of ethanol, distillers grains and corn oil to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. During the nine months ended June 30, 2022, ethanol sales averaged approximately 65% of total revenues and corn costs averaged 66% of total cost of goods sold. The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol, distillers grains and corn oil, and the related cost of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and the unleaded gasoline and petroleum markets, although, since 2005, the prices of ethanol and gasoline began a divergence with ethanol selling for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Economic conditions for the ethanol industry have been favorable during fiscal year 2022. However, the military invasion of Ukraine by Russia in the second quarter of fiscal year 2022 and sanctions imposed by other countries as a result have created global economic uncertainty and contributed to increased inflation, significant market disruptions and increased volatility in commodity prices such as corn, oil and natural gas. The economic impact of this war and the potential effects on the Company's operating and financial performance is currently unknown. Additionally, there have been economic indicators that the United States could be facing a possible recession which have primarily resulted in interest rate hikes by the Federal Reserve in an attempt to reduce inflation. The Company continues to monitor economic conditions that might affect our profitability. The Company believes that its cash on hand and available debt from its lender will provide sufficient liquidity to meets its anticipated working capital, debt service and other liquidity needs through the next twelve months. If market conditions worsen affecting the Company's ability to profitably operate the plant or if the Company is unable to transport ethanol, it may be forced to further reduce the ethanol production rate or even temporarily shut down ethanol production altogether. On May 23, 2022, the Company received an award of approximately $7,652,000 from the United States Department of Agriculture ("USDA") under the Biofuel Producer Program. The Biofuel Producer Program was created as part of the Coronavirus Aid Relief and Economic Security Act. The USDA announced that the funds were made available to provide economic relief to biofuels producers who faced unexpected market losses due to the COVID-19 pandemic and support a significant market for agricultural producers who supply products used in biofuel production. This award was unconditional and was recognized as a component of other income on the statement of operations during the three and nine months ended June 30, 2022. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following as of: June 30, 2022 (Unaudited) September 30, 2021 Ethanol Division: Raw materials $ 24,475,078 $ 2,995,914 Work in progress 1,555,309 2,331,419 Finished goods 2,985,976 12,431,375 Spare parts 3,966,847 3,978,193 Ethanol Division Subtotal $ 32,983,210 $ 21,736,901 Trading Division: Grain inventory $ 5,353,898 $ 4,850,131 Trading Division Subtotal 5,353,898 4,850,131 Total Inventories $ 38,337,108 $ 26,587,032 The Company did not have a net realizable value write-down of ethanol inventory for the nine months ended June 30, 2022. The Company had a net realizable write-down of ethanol inventory of approximately $57,000 for the nine months ended June 30, 2021. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company enters into corn, ethanol, natural gas, soybean oil and soybean derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the balance sheet. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company must designate the hedging instruments based upon the exposure being hedged as a fair value hedge, a cash flow hedge or a hedge against foreign currency exposure. Commodity Contracts The Company enters into commodity-based derivatives, for corn, ethanol, natural gas, soybean oil and soybeans in order to protect cash flows from fluctuations caused by volatility in commodity prices and to protect gross profit margins from potentially adverse effects of market and price volatility on commodity based purchase commitments where the prices are set at a future date. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. The changes in the fair market value of ethanol derivative instruments are included as a component of revenue. The changes in the fair market value of corn, natural gas, and soybean derivative instruments are included as a component of cost of goods sold. At June 30, 2022, the Ethanol Division had a net short (selling) position of 11,630,000 bushels of corn under derivative contracts used to hedge its forward corn purchase contracts, corn inventory and ethanol sales. These corn derivatives are traded on the Chicago Board of Trade as of June 30, 2022 and are forecasted to settle for various delivery periods through December 2023. The Ethanol Division had a net short (selling) position of 29,190,000 gallons of ethanol under derivative contracts used to hedge its future ethanol sales. These ethanol derivatives are traded on the New York Mercantile Exchange and are forecasted to settle for various delivery periods through December 2022. The Ethanol Division also had a net long (buying) position of 6,600,000 gallons of soybean oil under derivative contracts used to hedge its future soybean oil sales. These soybean oil derivatives are traded on the Chicago Board of Trade and are, as of June 30, 2022, forecasted to settle for various delivery periods through August 2022. At June 30, 2022, the Trading Division also had a net short (selling) position of 1,010,000 bushels of soybeans under derivative contracts used to hedge its forward soybean contract purchases. These soybean derivatives are traded on the Chicago Board of Trade and are, as of June 30, 2022, forecasted to settle for various delivery periods through November 2023. These derivatives have not been designated as effective hedges for accounting purposes. The following table provides balance sheet details regarding the Company's derivative financial instruments at June 30, 2022: Instrument Balance Sheet Location Assets Liabilities Ethanol Futures and Options Contracts Futures & Options Derivatives $ — $ 3,362,278 Corn Futures and Options Contracts Futures & Options Derivatives $ 7,918,725 $ — Soybean Oil Futures and Options Contracts Futures & Options Derivatives $ — $ 207,888 Soybean Futures and Options Contracts Futures & Options Derivatives $ — $ 382,570 Soybean Forward Purchase and Sales Contracts Forward Purchase/Sales Derivatives $ 1,273,242 $ 167,947 As of June 30, 2022, the Company had approximately $8,420,000 of cash collateral (restricted cash) related to ethanol, corn, soybean oil, and soybean derivatives held by four brokers. The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2021: Instrument Balance Sheet Location Assets Liabilities Ethanol Futures and Options Contracts Futures & Options Derivatives $ 150,339 $ — Corn Futures and Options Contracts Futures & Options Derivatives $ — $ 2,331,889 Soybean Oil Futures and Options Contracts Futures & Options Derivatives $ 84,474 $ — Soybean Futures and Options Contracts Futures & Options Derivatives $ 729,605 $ — Soybean Forward Purchase and Sales Contracts Forward Purchase/Sales Derivatives $ 988,919 $ 658,283 As of September 30, 2021, the Company had approximately $8,100,000 of cash collateral (restricted cash) related to ethanol, corn, soybean oil, and soybean derivatives held by two brokers. The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments: Instrument Statement of Operations Location Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Three Months Ended June 30, 2022 Nine Months Ended June 30, 2022 Corn Futures and Options Contracts Cost of Goods Sold $ (11,918,847) $ (25,309,021) $ 13,126,371 $ (3,762,026) Ethanol Futures and Options Contracts Revenues 493,042 647,795 2,410,473 (7,500,787) Natural Gas Futures and Options Contracts Cost of Goods Sold — (836) — (39,039) Soybean Oil Futures and Options Contracts Cost of Goods Sold 664,729 1,947,061 47,541 131,871 Soybean Futures and Options Contracts Cost of Goods Sold (2,625,108) (8,513,405) (866,771) (4,871,604) Soybean Forward Purchase and Sales Contracts Cost of Goods Sold (166,197) 1,376,887 (349,129) 1,044,353 Totals $ (13,552,381) $ (29,851,519) $ 14,368,485 $ (14,997,232) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of June 30, 2022: Instruments Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Futures and Options Contracts $ 7,918,725 $ 7,918,725 $ 7,923,305 $ — $ — Ethanol Futures and Options Contracts $ (3,362,278) $ (3,362,278) $ (3,362,278) $ — $ — Soybean Oil Futures and Options Contracts $ (207,888) $ (207,888) $ (207,888) $ — $ — Soybean Futures and Options Contracts $ (382,570) $ (382,570) $ (382,570) $ — $ — Soybean Forward Purchase Contracts $ 1,105,295 $ 1,105,295 $ — $ 1,105,295 $ — Soybean Inventory $ 5,353,898 $ 5,353,898 $ — $ 5,353,898 $ — Accounts Payable $ (6,828,861) $ (6,828,861) $ — $ (6,828,861) $ — The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Instruments Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Futures and Options Contracts $ (2,331,889) $ (2,331,889) $ (1,424,775) $ (907,114) $ — Ethanol Futures and Options Contracts $ 150,339 $ 150,339 $ 150,339 $ — $ — Soybean Oil Futures and Options Contracts $ 84,474 $ 84,474 $ 84,474 $ — $ — Soybean Futures and Options Contracts $ 729,605 $ 729,605 $ 1,066,775 $ (337,170) $ — Soybean Forward Purchase Contracts $ 330,637 $ 330,637 $ — $ 330,637 $ — Soybean Inventory $ 4,850,131 $ 4,850,131 $ — $ 4,850,131 $ — Accounts Payable $ (6,391,350) $ (6,391,350) $ — $ (6,391,350) $ — We determine the fair value of commodity futures derivative instruments utilizing Level 1 inputs 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 corn and soybean futures and options Level 2 instruments by model-based techniques in which all significant inputs are observable in the markets noted above. Soybean forward purchase and sale contracts are reported at fair value using Level 2 inputs from current contract prices that are being issued by the Company. Soybean inventory held in the trading division is reported at fair value using Level 2 inputs which are based on purchases and sales transactions that occurred on or near June 30, 2022 and September 30, 2021. |
BANK FINANCING
BANK FINANCING | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
BANK FINANCING | BANK FINANCING The Company has a loan agreement consisting of two loans, the Declining Revolving Loan (Declining Loan) and the Revolving Credit Loan in exchange for liens on all property (real and personal, tangible and intangible) which include, among other things, a mortgage on the property, a security interest on commodity trading accounts and assignment of material contracts. The loan agreement assigns an interest rate based upon the U.S. prime rate published in the Wall Street Journal to each of the individual loans. The interest rates on each of the loans changes daily. Declining Loan The maximum availability of the Declining Loan was formerly $5,000,000 and such amount was to be available for working capital purposes. However, the maximum availability of the Declining Loan was increased from $5,000,000 to $36,000,000 in order to provide financing to fund the construction and installation of a high protein feed system at the plant. The interest rate on the Declining Loan is currently based on the prime rate minus five basis points (.05%) subject to a floor of 2.85%. The interest rate was 4.70% and 3.10% at June 30, 2022 and September 30, 2021, respectively. The Company is required to make monthly interest payments on the Declining Loan during the draw period. The principal balance of the Declining Loan is expected to be converted to term debt on or before February 1, 2024, to be repaid in 60 equal monthly installments based on a ten year amortization period. In addition, the Company will be required to make mandatory annual prepayments on the term debt within 120 days following the end of each fiscal year beginning with the fiscal year ended September 30, 2024. The annual prepayment will be in the amount of the lesser of 40% of excess cash flow or $7,200,000, up to an aggregate amount paid of $18,000,000. There were no borrowings outstanding on the Declining Loan at June 30, 2022 or September 30, 2021. Revolving Credit Loan The Revolving Credit Loan has a limit of $20,000,000 supported by a borrowing base made up of the Company's corn, ethanol, dried distillers grain, corn oil and soybean inventories reduced by accounts payable associated with those inventories having a priority. It is also supported by the eligible accounts receivable and commodity trading account excess margin funds. The interest rate on the Revolving Credit Loan is the prime rate minus twenty-five basis points (.25%) and is subject to a floor of 2.75%. The interest rate was 4.50% and 3.00% at June 30, 2022 and September 30, 2021, respectively. There were no borrowings outstanding on the Revolving Credit Loan at June 30, 2022 and September 30, 2021. The Revolving Credit Loan is set to mature on February 28, 2023. These loans are subject to protective covenants, which require the Company to maintain various financial ratios. The covenants include a working capital requirement of $15,000,000, and a capital expenditures covenant that allows the Company $5,000,000 of expenditures per year without prior approval. The cost of the high protein feed system is excluded from the capital expenditures calculation until the principal balance of the Declining Loan converts to term debt. There is also a requirement to maintain a minimum fixed charge coverage ratio of no less than 1.15:1.0 measured quarterly. A debt service charge coverage ratio of no less than 1.25:1.0 in lieu of the fixed charge coverage ratio will apply for any reporting period that working capital is equal to or more than $23,000,000. The Company had no long-term debt as of June 30, 2022 and September 30, 2021. |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | 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 and nine months ended June 30, 2022, the Company’s weighted average discount rate was 3.68%. 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 lease terms of approximately 0.4 years to 1.4 years, which may include options to extend the lease when it is reasonably certain the Company will exercise those options. For the three and nine months ended June 30, 2022, the weighted average remaining lease term was 1.02 years. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company does not have any material finance lease obligations nor sublease agreements. The following table summarizes the remaining maturities of the Company’s operating lease liabilities as of June 30, 2022: For the Fiscal Year Ending September 30, 2022 $ 927,639 2023 1,611,501 2024 198,000 Totals 2,737,140 Amount representing interest (44,890) Lease liabilities $ 2,692,250 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings In February 2010, a lawsuit against the Company was filed by an unrelated party claiming the Company's operation of the oil separation system is a patent infringement. In connection with the lawsuit, in February 2010, the agreement for the construction and installation of the tricanter oil separation system was amended. In this amendment the manufacturer and installer of the tricanter oil separation system indemnifies the Company against all claims of infringement of patents, copyrights or other intellectual property rights from the Company's purchase and use of the tricanter oil system and agrees to defend the Company in the lawsuit filed at no expense to the Company. On October 23, 2014, the court granted summary judgment finding that all of the patents claimed were invalid and that the Company had not infringed. In addition, on September 15, 2016, the United States District Court granted summary judgment finding that the patents were invalid due to inequitable conduct before the US Patent and Trademark Office by the inventors and their attorneys. The rulings have since been affirmed on appeal and on February 22, 2021 the U.S. Supreme Court declined to review the decision. On March 3, 2022, the United States District Court ruled on attorney fees to be awarded to the defendants. Rail Car Rehabilitation Costs The Company leases 180 hopper rail cars under a multi-year agreement which ends in November 2023. 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. Company management has estimated total costs to rehabilitate the cars at June 30, 2022, to be approximately $1,967,000. During the nine months ended June 30, 2022, the Company has recorded a corresponding expense in cost of goods sold of approximately $227,000. The Company accrues the estimated cost of railcar damages over the term of the lease. High Protein System Installation Agreement |
UNCERTAINTIES IMPACTING THE ETH
UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS | 9 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS | CONCENTRATIONSTwo major customers accounted for approximately 84% and 90% of the outstanding accounts receivable balance at June 30, 2022 and September 30, 2021, respectively. These same two customers accounted for approximately 77% of revenue for the nine months ended June 30, 2022 and 73% of revenue for the nine months ended June 30, 2021.UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS The Company has certain risks and uncertainties that it experiences during volatile market conditions, which can have a severe impact on operations. The Company's revenues are primarily derived from the sale and distribution of ethanol, distillers grains and corn oil to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. During the nine months ended June 30, 2022, ethanol sales averaged approximately 65% of total revenues and corn costs averaged 66% of total cost of goods sold. The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol, distillers grains and corn oil, and the related cost of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and the unleaded gasoline and petroleum markets, although, since 2005, the prices of ethanol and gasoline began a divergence with ethanol selling for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Economic conditions for the ethanol industry have been favorable during fiscal year 2022. However, the military invasion of Ukraine by Russia in the second quarter of fiscal year 2022 and sanctions imposed by other countries as a result have created global economic uncertainty and contributed to increased inflation, significant market disruptions and increased volatility in commodity prices such as corn, oil and natural gas. The economic impact of this war and the potential effects on the Company's operating and financial performance is currently unknown. Additionally, there have been economic indicators that the United States could be facing a possible recession which have primarily resulted in interest rate hikes by the Federal Reserve in an attempt to reduce inflation. The Company continues to monitor economic conditions that might affect our profitability. The Company believes that its cash on hand and available debt from its lender will provide sufficient liquidity to meets its anticipated working capital, debt service and other liquidity needs through the next twelve months. If market conditions worsen affecting the Company's ability to profitably operate the plant or if the Company is unable to transport ethanol, it may be forced to further reduce the ethanol production rate or even temporarily shut down ethanol production altogether. On May 23, 2022, the Company received an award of approximately $7,652,000 from the United States Department of Agriculture ("USDA") under the Biofuel Producer Program. The Biofuel Producer Program was created as part of the Coronavirus Aid Relief and Economic Security Act. The USDA announced that the funds were made available to provide economic relief to biofuels producers who faced unexpected market losses due to the COVID-19 pandemic and support a significant market for agricultural producers who supply products used in biofuel production. This award was unconditional and was recognized as a component of other income on the statement of operations during the three and nine months ended June 30, 2022. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company has two reportable operating segments. 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, gross profit, grain inventories, operating income, and total assets: Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenue: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 110,898,770 $ 99,758,386 $ 340,575,754 $ 238,544,279 Trading division 22,362,282 17,514,588 76,914,929 69,880,625 Total Revenue $ 133,261,052 $ 117,272,974 $ 417,490,683 $ 308,424,904 Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Gross Profit: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 27,966,708 $ 9,783,375 $ 70,627,287 $ 16,594,643 Trading division 686,948 (175,434) 3,096,547 2,304,981 Total Gross Profit $ 28,653,656 $ 9,607,941 $ 73,723,834 $ 18,899,624 Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Operating Income: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 26,363,161 $ 8,341,704 $ 65,474,516 $ 12,137,688 Trading division 369,705 (492,677) 2,144,818 1,353,252 Total Operating Income $ 26,732,866 $ 7,849,027 $ 67,619,334 $ 13,490,940 June 30, 2022 September 30, 2021 Grain Inventories: (unaudited) Ethanol division $ 24,475,078 $ 2,995,914 Trading division 5,353,898 4,850,131 Total Grain Inventories $ 29,828,976 $ 7,846,045 June 30, 2022 September 30, 2021 Total Assets: (unaudited) Ethanol division $ 180,800,938 $ 143,145,441 Trading division 5,389,187 8,793,484 Total Assets $ 186,190,125 $ 151,938,925 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended September 30, 2021, contained in the Company's annual report on Form 10-K. |
Reportable Segments | Reportable 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 are 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 Division. 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. • Trading Division. The Company has a grain loading facility within the Company's single site to buy, hold and sell inventories of agricultural grains, primarily soybeans. The Company performs no additional processing of these grains, unlike the corn inventory the Company holds and uses in ethanol production. The activities of buying, selling and holding of grains other than for ethanol and co-product production comprise this financial reporting segment. |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Ethanol Division uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, inventories, the assumptions used in the analysis of the impairment of long lived assets, railcar rehabilitation costs, and inventory purchase commitments. The Trading Division uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, the valuation of inventory purchase and sale commitment derivatives and inventory at market. |
Cash and Restricted Cash | Cash The Company maintains its accounts primarily at two financial institutions. At times throughout the year the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Restricted Cash As a part of its commodities hedging activities, the Company is required to maintain cash balances with its commodities trading companies for initial and maintenance margins on a per futures contract basis. Changes in the market value of contracts may increase these requirements. As the futures contracts expire, the margin requirements also expire. Accordingly, the Company records the cash maintained with the traders in the margin accounts as restricted cash. Since this cash is immediately available upon request when there is a margin excess, the Company considers this restricted cash to be a current asset. |
Trade Accounts Receivable | Trade Accounts ReceivableCredit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Amounts considered uncollectible are written off. The Company's estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any. |
Inventories | Inventories Ethanol Division (see Reportable Segments) inventories consist of raw materials, work in process, finished goods and spare parts. Corn is the primary raw material. Finished goods consist of ethanol, dried distiller grains and corn oil. Inventories are stated at the lower of weighted average cost or net realizable value. Net realizable value is the estimated selling prices in the normal course of business, less reasonably predictable selling costs. Trading Division (see Reportable Segments) inventories consist of grain. Soybeans were the only grains held and traded at June 30, 2022 and September 30, 2021. These inventories are stated at market value less estimated selling costs, which may include reductions for quality. |
Property, Plant and Equipment | Property, Plant and EquipmentProperty, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight-line depreciation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived assets, such as property, plant and equipment and financing costs, subject to depreciation and amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset |
Investment | Investment Investments consist of the capital stock and patron equities of the Company's distillers grains marketer. The investments are stated at the lower of cost or fair value and adjusted for non cash patronage equities and cash equity redemptions received. Non cash patronage dividends are recognized when received and included within revenue in the condensed statements of operations. |
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. The Company's contracts primarily consist of agreements with marketing companies and other customers as described below. The Company's performance obligations consist of the delivery of ethanol, distillers' grains, corn oil, soybeans and carbon dioxide to its customers. The consideration the Company receives for these products is fixed based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. The Company's 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. The Company sells each of the products via different marketing channels as described below. • Ethanol. The Company sells its ethanol via a marketing agreement with Murex, LLC. Murex markets one hundred percent of the Company's ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Murex and the Company. Murex then provides a schedule of deliveries required and an order for each rail car or tankers needed to fulfill their commitment with the end user. These are individual performance obligations of the Company. The marketing agreement calls for control and title to pass when the delivery vehicle is filled. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and insurance. • Distillers grains. The Company engages another third-party marketing company, CHS, Inc, to market one hundred percent of the distillers grains it produces at the plant. The process for selling the distillers grains is like that of ethanol, except that CHS 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 among the three parties, and CHS provides schedules and orders representing performance obligations. Revenue is recognized net of commissions, freight, and fees. • Distillers corn oil (corn oil). The Company sells its production of corn oil directly to commercial customers. The customer is provided with a delivery schedule and pick up orders representing performance obligations. These are fulfilled when the customer’s driver picks up the scheduled load. The price is agreed upon at the time each contract is made, and the Company recognizes revenue at the time of delivery at that price. • Carbon dioxide. The Company sells a portion of the carbon dioxide it produces to a customer that maintains a plant on-site for a set price per ton. Delivery is defined as transference of the gas from the Company's stream to their plant. • Soybeans and other grains. The Company sells soybeans exclusively to commercial mills, processors or grain traders. Contracts are negotiated directly with the parties at prices based on negotiated prices. Cost of Goods Sold Cost of goods sold include corn, trading division grains, natural gas and other components which includes processing ingredients, electricity, railcar lease, railcar maintenance, depreciation of ethanol production fixed assets and wages, salaries and benefits of production personnel. Operating Expenses Operating expenses include wages, salaries and benefits of administrative employees at the plant, insurance, professional fees, depreciation of trading division fixed assets, property taxes and similar costs. Payment Terms The Company has contractual payment terms with each respective marketer that sells ethanol and distillers grains. These terms are generally 7 - 14 days after the week of the transfer of control. The Company has standard payment terms of net 10 days for its sale for corn oil. The Company has standard payments terms due upon delivery for its sale of soybeans. The contractual terms with the carbon dioxide customer calls for an annual settlement. 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. Contract Liabilities |
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 in the balance sheet 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 the statement of operations, depending on the item being hedged. 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 financial statements. The Company has elected for its Ethanol Division to apply the normal purchase normal sale exemption to all forward commodity contracts. For the Trading Division, the Company has elected not to apply the normal purchase normal sale exemption to its forward purchase and sales contracts and therefore, marks these derivative instruments to market. |
Net Income (Loss) per Unit | Net Income (Loss) per Unit Basic net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members' units outstanding during the period. Diluted net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income (loss) per unit are the same. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate revenue by major source for the three and nine months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 84,706,603 $ — $ 84,706,603 Distillers' grains 18,261,386 — 18,261,386 Corn Oil 7,796,800 — 7,796,800 Carbon Dioxide 120,531 — 120,531 Other Revenue 13,450 15,900 29,350 Total revenues from contracts with customers 110,898,770 15,900 110,914,670 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 22,346,382 22,346,382 Total revenues from contracts accounted for as derivatives — 22,346,382 22,346,382 Total Revenues $ 110,898,770 $ 22,362,282 $ 133,261,052 Nine Months Ended June 30, 2022 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 272,527,573 $ — $ 272,527,573 Distillers' grains 47,450,158 — 47,450,158 Corn Oil 20,177,097 — 20,177,097 Carbon Dioxide 347,126 — 347,126 Other Revenue 73,800 82,556 156,356 Total revenues from contracts with customers 340,575,754 82,556 340,658,310 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 76,832,373 76,832,373 Total revenues from contracts accounted for as derivatives — 76,832,373 76,832,373 Total Revenues $ 340,575,754 $ 76,914,929 $ 417,490,683 Three Months Ended June 30, 2021 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 79,943,407 $ — $ 79,943,407 Distillers' grains 14,701,286 — 14,701,286 Corn Oil 4,977,755 — 4,977,755 Carbon Dioxide 121,288 — 121,288 Other Revenue 14,650 14,875 29,525 Total revenues from contracts with customers 99,758,386 14,875 99,773,261 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 17,499,713 17,499,713 Total revenues from contracts accounted for as derivatives — 17,499,713 17,499,713 Total Revenues $ 99,758,386 $ 17,514,588 $ 117,272,974 Nine Months Ended June 30, 2021 (Unaudited) Ethanol Division Trading Division Total Revenues from contracts with customers under ASC Topic 606 Ethanol $ 182,551,687 $ — $ 182,551,687 Distillers' grains 43,552,750 — 43,552,750 Corn Oil 12,030,379 — 12,030,379 Carbon Dioxide 368,038 — 368,038 Other Revenue 41,425 119,850 161,275 Total revenues from contracts with customers 238,544,279 119,850 238,664,129 Revenues from contracts accounted for as derivatives under ASC Topic 815 (1) Soybeans and other grains — 69,760,775 69,760,775 Total revenues from contracts accounted for as derivatives — 69,760,775 69,760,775 Total Revenues $ 238,544,279 $ 69,880,625 $ 308,424,904 (1) Revenues from contracts accounted for as derivatives represent physically settled derivative sales that are outside the scope of ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606), where the company recognizes revenue when control of the inventory is transferred within the meaning of ASC Topic 606 as required by ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following as of: June 30, 2022 (Unaudited) September 30, 2021 Ethanol Division: Raw materials $ 24,475,078 $ 2,995,914 Work in progress 1,555,309 2,331,419 Finished goods 2,985,976 12,431,375 Spare parts 3,966,847 3,978,193 Ethanol Division Subtotal $ 32,983,210 $ 21,736,901 Trading Division: Grain inventory $ 5,353,898 $ 4,850,131 Trading Division Subtotal 5,353,898 4,850,131 Total Inventories $ 38,337,108 $ 26,587,032 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table provides balance sheet details regarding the Company's derivative financial instruments at June 30, 2022: Instrument Balance Sheet Location Assets Liabilities Ethanol Futures and Options Contracts Futures & Options Derivatives $ — $ 3,362,278 Corn Futures and Options Contracts Futures & Options Derivatives $ 7,918,725 $ — Soybean Oil Futures and Options Contracts Futures & Options Derivatives $ — $ 207,888 Soybean Futures and Options Contracts Futures & Options Derivatives $ — $ 382,570 Soybean Forward Purchase and Sales Contracts Forward Purchase/Sales Derivatives $ 1,273,242 $ 167,947 The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2021: Instrument Balance Sheet Location Assets Liabilities Ethanol Futures and Options Contracts Futures & Options Derivatives $ 150,339 $ — Corn Futures and Options Contracts Futures & Options Derivatives $ — $ 2,331,889 Soybean Oil Futures and Options Contracts Futures & Options Derivatives $ 84,474 $ — Soybean Futures and Options Contracts Futures & Options Derivatives $ 729,605 $ — Soybean Forward Purchase and Sales Contracts Forward Purchase/Sales Derivatives $ 988,919 $ 658,283 |
Derivatives Not Designated as Hedging Instruments | The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments: Instrument Statement of Operations Location Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Three Months Ended June 30, 2022 Nine Months Ended June 30, 2022 Corn Futures and Options Contracts Cost of Goods Sold $ (11,918,847) $ (25,309,021) $ 13,126,371 $ (3,762,026) Ethanol Futures and Options Contracts Revenues 493,042 647,795 2,410,473 (7,500,787) Natural Gas Futures and Options Contracts Cost of Goods Sold — (836) — (39,039) Soybean Oil Futures and Options Contracts Cost of Goods Sold 664,729 1,947,061 47,541 131,871 Soybean Futures and Options Contracts Cost of Goods Sold (2,625,108) (8,513,405) (866,771) (4,871,604) Soybean Forward Purchase and Sales Contracts Cost of Goods Sold (166,197) 1,376,887 (349,129) 1,044,353 Totals $ (13,552,381) $ (29,851,519) $ 14,368,485 $ (14,997,232) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of June 30, 2022: Instruments Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Futures and Options Contracts $ 7,918,725 $ 7,918,725 $ 7,923,305 $ — $ — Ethanol Futures and Options Contracts $ (3,362,278) $ (3,362,278) $ (3,362,278) $ — $ — Soybean Oil Futures and Options Contracts $ (207,888) $ (207,888) $ (207,888) $ — $ — Soybean Futures and Options Contracts $ (382,570) $ (382,570) $ (382,570) $ — $ — Soybean Forward Purchase Contracts $ 1,105,295 $ 1,105,295 $ — $ 1,105,295 $ — Soybean Inventory $ 5,353,898 $ 5,353,898 $ — $ 5,353,898 $ — Accounts Payable $ (6,828,861) $ (6,828,861) $ — $ (6,828,861) $ — The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Instruments Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Futures and Options Contracts $ (2,331,889) $ (2,331,889) $ (1,424,775) $ (907,114) $ — Ethanol Futures and Options Contracts $ 150,339 $ 150,339 $ 150,339 $ — $ — Soybean Oil Futures and Options Contracts $ 84,474 $ 84,474 $ 84,474 $ — $ — Soybean Futures and Options Contracts $ 729,605 $ 729,605 $ 1,066,775 $ (337,170) $ — Soybean Forward Purchase Contracts $ 330,637 $ 330,637 $ — $ 330,637 $ — Soybean Inventory $ 4,850,131 $ 4,850,131 $ — $ 4,850,131 $ — Accounts Payable $ (6,391,350) $ (6,391,350) $ — $ (6,391,350) $ — |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments for Operating Leases | The following table summarizes the remaining maturities of the Company’s operating lease liabilities as of June 30, 2022: For the Fiscal Year Ending September 30, 2022 $ 927,639 2023 1,611,501 2024 198,000 Totals 2,737,140 Amount representing interest (44,890) Lease liabilities $ 2,692,250 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize financial information by segment and provide a reconciliation of segment revenue, gross profit, grain inventories, operating income, and total assets: Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenue: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 110,898,770 $ 99,758,386 $ 340,575,754 $ 238,544,279 Trading division 22,362,282 17,514,588 76,914,929 69,880,625 Total Revenue $ 133,261,052 $ 117,272,974 $ 417,490,683 $ 308,424,904 Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Gross Profit: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 27,966,708 $ 9,783,375 $ 70,627,287 $ 16,594,643 Trading division 686,948 (175,434) 3,096,547 2,304,981 Total Gross Profit $ 28,653,656 $ 9,607,941 $ 73,723,834 $ 18,899,624 Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Operating Income: (unaudited) (unaudited) (unaudited) (unaudited) Ethanol division $ 26,363,161 $ 8,341,704 $ 65,474,516 $ 12,137,688 Trading division 369,705 (492,677) 2,144,818 1,353,252 Total Operating Income $ 26,732,866 $ 7,849,027 $ 67,619,334 $ 13,490,940 June 30, 2022 September 30, 2021 Grain Inventories: (unaudited) Ethanol division $ 24,475,078 $ 2,995,914 Trading division 5,353,898 4,850,131 Total Grain Inventories $ 29,828,976 $ 7,846,045 June 30, 2022 September 30, 2021 Total Assets: (unaudited) Ethanol division $ 180,800,938 $ 143,145,441 Trading division 5,389,187 8,793,484 Total Assets $ 186,190,125 $ 151,938,925 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) gal in Thousands | 9 Months Ended | |
Jun. 30, 2022 USD ($) segment gal | Jun. 30, 2021 USD ($) gal | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Number of operating segments | segment | 2 | |
Impairment loss | $ 0 | $ 0 |
High Protein Feed System | ||
Product Information [Line Items] | ||
Additional liquefaction tank and fermenter cost | $ 46,570,000 | |
Ethanol | ||
Product Information [Line Items] | ||
Annual production | gal | 101,534 | 100,050 |
Ethanol | Ethanol Recovery System | ||
Product Information [Line Items] | ||
Additional liquefaction tank and fermenter cost | $ 2,400,000 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 110,914,670 | $ 99,773,261 | $ 340,658,310 | $ 238,664,129 |
Total revenues from contracts accounted for as derivatives | 22,346,382 | 17,499,713 | 76,832,373 | 69,760,775 |
Total Revenues | 133,261,052 | 117,272,974 | 417,490,683 | 308,424,904 |
Ethanol | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 84,706,603 | 79,943,407 | 272,527,573 | 182,551,687 |
Distillers' grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 18,261,386 | 14,701,286 | 47,450,158 | 43,552,750 |
Corn Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 7,796,800 | 4,977,755 | 20,177,097 | 12,030,379 |
Carbon Dioxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 120,531 | 121,288 | 347,126 | 368,038 |
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 29,350 | 29,525 | 156,356 | 161,275 |
Soybeans and other grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts accounted for as derivatives | 22,346,382 | 17,499,713 | 76,832,373 | 69,760,775 |
Ethanol Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 110,898,770 | 99,758,386 | 340,575,754 | 238,544,279 |
Total revenues from contracts accounted for as derivatives | 0 | 0 | 0 | 0 |
Total Revenues | 110,898,770 | 99,758,386 | 340,575,754 | 238,544,279 |
Ethanol Division | Ethanol | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 84,706,603 | 79,943,407 | 272,527,573 | 182,551,687 |
Ethanol Division | Distillers' grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 18,261,386 | 14,701,286 | 47,450,158 | 43,552,750 |
Ethanol Division | Corn Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 7,796,800 | 4,977,755 | 20,177,097 | 12,030,379 |
Ethanol Division | Carbon Dioxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 120,531 | 121,288 | 347,126 | 368,038 |
Ethanol Division | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 13,450 | 14,650 | 73,800 | 41,425 |
Ethanol Division | Soybeans and other grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts accounted for as derivatives | 0 | 0 | 0 | 0 |
Trading Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 15,900 | 14,875 | 82,556 | 119,850 |
Total revenues from contracts accounted for as derivatives | 22,346,382 | 17,499,713 | 76,832,373 | 69,760,775 |
Total Revenues | 22,362,282 | 17,514,588 | 76,914,929 | 69,880,625 |
Trading Division | Ethanol | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Trading Division | Distillers' grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Trading Division | Corn Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Trading Division | Carbon Dioxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Trading Division | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 15,900 | 14,875 | 82,556 | 119,850 |
Trading Division | Soybeans and other grains | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts accounted for as derivatives | $ 22,346,382 | $ 17,499,713 | $ 76,832,373 | $ 69,760,775 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended |
Jun. 30, 2022 | |
Corn Oil | |
Disaggregation of Revenue [Line Items] | |
Revenue from contract with customer, payment terms | 10 days |
Minimum | Ethanol And Distillers' Grains | |
Disaggregation of Revenue [Line Items] | |
Revenue from contract with customer, payment terms | 7 days |
Maximum | Ethanol And Distillers' Grains | |
Disaggregation of Revenue [Line Items] | |
Revenue from contract with customer, payment terms | 14 days |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) - Customer Concentration Risk - Two Major Customers | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk | 84% | 90% | |
Sales revenue, goods, net | |||
Concentration Risk [Line Items] | |||
Concentration risk | 77% | 73% |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Inventory [Line Items] | ||
Raw materials | $ 29,828,976 | $ 7,846,045 |
Total Inventories | 38,337,108 | 26,587,032 |
Ethanol Division | ||
Inventory [Line Items] | ||
Raw materials | 24,475,078 | 2,995,914 |
Work in progress | 1,555,309 | 2,331,419 |
Finished goods | 2,985,976 | 12,431,375 |
Spare parts | 3,966,847 | 3,978,193 |
Total Inventories | 32,983,210 | 21,736,901 |
Trading Division | ||
Inventory [Line Items] | ||
Raw materials | 5,353,898 | 4,850,131 |
Total Inventories | $ 5,353,898 | $ 4,850,131 |
INVENTORIES - Narrative (Detail
INVENTORIES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Ethanol Division | ||
Inventory [Line Items] | ||
Inventory written down | $ 0 | $ 57 |
Ethanol Division | Corn | ||
Inventory [Line Items] | ||
Expected production needed | 11% | |
Number of months of coverage | 21 months | |
Ethanol Division | Corn | Affiliated Entity | ||
Inventory [Line Items] | ||
Expected production needed | 6% | |
Ethanol Division | Distillers' grains | ||
Inventory [Line Items] | ||
Expected production needed | 32% | |
Number of months of coverage | 2 months | |
Ethanol Division | Corn Oil | ||
Inventory [Line Items] | ||
Expected production needed | 78% | |
Trading Division | Forward Soybean Purchase Contract | ||
Inventory [Line Items] | ||
Expected production needed | 14% | |
Trading Division | Forward Soybean Purchase Contract | Affiliated Entity | ||
Inventory [Line Items] | ||
Expected production needed | 11% |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 USD ($) broker gal bu | Sep. 30, 2021 USD ($) broker | |
Derivative [Line Items] | ||
Cash collateral | $ | $ 8,420 | $ 8,100 |
Number of brokers, cash collateral | broker | 4 | 2 |
Ethanol Division | Corn | Short | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume (in bushels or gallons) | 11,630,000 | |
Ethanol Division | Ethanol | Short | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume (in bushels or gallons) | 29,190,000 | |
Ethanol Division | Soybean Oil | Long | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume (in bushels or gallons) | gal | 6,600,000 | |
Trading Division | Soybean | Short | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume (in bushels or gallons) | 1,010,000 |
DERIVATIVE INSTRUMENTS - Balanc
DERIVATIVE INSTRUMENTS - Balance Sheet (Details) - Not Designated as Hedging Instrument - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Future | Ethanol | Futures & Options Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 0 | $ 150,339 |
Liabilities | 3,362,278 | 0 |
Future | Corn | Futures & Options Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7,918,725 | 0 |
Liabilities | 0 | 2,331,889 |
Future | Soybean Oil | Futures & Options Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 84,474 |
Liabilities | 207,888 | 0 |
Future | Soybean | Futures & Options Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 729,605 |
Liabilities | 382,570 | 0 |
Forward Contracts | Soybean | Forward Purchase/Sales Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1,273,242 | 988,919 |
Liabilities | $ 167,947 | $ 658,283 |
DERIVATIVE INSTRUMENTS - Income
DERIVATIVE INSTRUMENTS - Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | $ 14,368,485 | $ (13,552,381) | $ (14,997,232) | $ (29,851,519) |
Future | Not Designated as Hedging Instrument | Corn | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | 13,126,371 | (11,918,847) | (3,762,026) | (25,309,021) |
Future | Not Designated as Hedging Instrument | Ethanol | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | 2,410,473 | 493,042 | (7,500,787) | 647,795 |
Future | Not Designated as Hedging Instrument | Natural Gas | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | 0 | 0 | (39,039) | (836) |
Future | Not Designated as Hedging Instrument | Soybean Oil | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | 47,541 | 664,729 | 131,871 | 1,947,061 |
Future | Not Designated as Hedging Instrument | Soybean | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | (866,771) | (2,625,108) | (4,871,604) | (8,513,405) |
Forward Contracts | Not Designated as Hedging Instrument | Soybean | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | $ (349,129) | $ (166,197) | $ 1,044,353 | $ 1,376,887 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Payable | $ (6,828,861) | $ (6,391,350) |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Payable | (6,828,861) | (6,391,350) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Payable | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Payable | (6,828,861) | (6,391,350) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Payable | 0 | 0 |
Soybean | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 5,353,898 | 4,850,131 |
Soybean | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 5,353,898 | 4,850,131 |
Soybean | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Soybean | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 5,353,898 | 4,850,131 |
Soybean | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Corn | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 7,918,725 | (2,331,889) |
Future | Corn | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 7,918,725 | (2,331,889) |
Future | Corn | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 7,923,305 | (1,424,775) |
Future | Corn | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | (907,114) |
Future | Corn | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Ethanol | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (3,362,278) | 150,339 |
Future | Ethanol | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (3,362,278) | 150,339 |
Future | Ethanol | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (3,362,278) | 150,339 |
Future | Ethanol | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Ethanol | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Soybean Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (207,888) | 84,474 |
Future | Soybean Oil | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (207,888) | 84,474 |
Future | Soybean Oil | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (207,888) | 84,474 |
Future | Soybean Oil | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Soybean Oil | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Future | Soybean | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (382,570) | 729,605 |
Future | Soybean | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (382,570) | 729,605 |
Future | Soybean | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | (382,570) | 1,066,775 |
Future | Soybean | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | (337,170) |
Future | Soybean | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Forward Contracts | Soybean | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 1,105,295 | 330,637 |
Forward Contracts | Soybean | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 1,105,295 | 330,637 |
Forward Contracts | Soybean | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Forward Contracts | Soybean | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 1,105,295 | 330,637 |
Forward Contracts | Soybean | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 |
BANK FINANCING (Details)
BANK FINANCING (Details) | 9 Months Ended | |||
Jun. 30, 2022 USD ($) loan monthlyInstallment | Feb. 28, 2022 USD ($) | Feb. 27, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Number of loans | loan | 2 | |||
Long-term debt | $ 0 | $ 0 | ||
Revolving Credit Loan | ||||
Debt Instrument [Line Items] | ||||
Working capital requirement | $ 23,000,000 | |||
Revolving Credit Facility | Declining Loan | ||||
Debt Instrument [Line Items] | ||||
Maximum availability | $ 36,000,000 | $ 5,000,000 | ||
Interest rate | 4.70% | 3.10% | ||
Repaid equal monthly installments | monthlyInstallment | 60 | |||
Debt term | 10 years | |||
Mandatory annual prepayments term | 120 days | |||
Annual Prepayment Percentage | 40% | |||
Annual prepayment | $ 7,200,000 | |||
Aggregate amount paid | 18,000,000 | |||
Borrowings outstanding | 0 | $ 0 | ||
Revolving Credit Facility | Revolving Credit Loan | ||||
Debt Instrument [Line Items] | ||||
Maximum availability | $ 20,000,000 | |||
Floor interest rate | 2.75% | |||
Interest rate | 4.50% | 3% | ||
Borrowings outstanding | $ 0 | $ 0 | ||
Working capital requirement | 15,000,000 | |||
Covenant, maximum capital expenditures per year without prior approval | $ 5,000,000 | |||
Minimum fixed charge coverage ratio | 1.15 | |||
Minimum debt service charge coverage ratio | 1.25 | |||
Revolving Credit Facility | Prime Rate | Declining Loan | ||||
Debt Instrument [Line Items] | ||||
Interest rate subtracted from U.S. Prime Rate | 0.05% | |||
Floor interest rate | 2.85% | |||
Revolving Credit Facility | Prime Rate | Revolving Credit Loan | ||||
Debt Instrument [Line Items] | ||||
Interest rate subtracted from U.S. Prime Rate | 0.25% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Operating Leased Assets [Line Items] | ||
Operating lease weighted average discount rate | 3.68% | 3.68% |
Operating lease weighted average remaining lease term | 1 year 7 days | 1 year 7 days |
Cost of Goods Sold | Ethanol Division | ||
Operating Leased Assets [Line Items] | ||
Operating lease cost | $ 1,221 | $ 2,874 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 4 months 24 days | 4 months 24 days |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 1 year 4 months 24 days | 1 year 4 months 24 days |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Payments for Operating Leases (Details) | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 927,639 |
2023 | 1,611,501 |
2024 | 198,000 |
Totals | 2,737,140 |
Amount representing interest | (44,890) |
Lease liabilities | $ 2,692,250 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 USD ($) hopper_rail_car | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) hopper_rail_car | Jun. 30, 2021 USD ($) | Jan. 20, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||
Hopper rail cars leased | hopper_rail_car | 180 | 180 | |||
Cost of goods sold | $ 104,607,396 | $ 107,665,033 | $ 343,766,849 | $ 289,525,280 | |
Equipment purchase and installation agreement accrual | $ 47,716,000 | ||||
Rail Car Rehabilitation Cost Liability | |||||
Loss Contingencies [Line Items] | |||||
Estimated rehabilitation costs | $ 1,967,000 | 1,967,000 | |||
Cost of goods sold | $ 227,000 |
UNCERTAINTIES IMPACTING THE E_2
UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | May 23, 2022 | |
Concentration Risk [Line Items] | ||
Award received | $ 7,652 | |
Sales revenue, goods, net | Geographic Concentration Risk | UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration risk | 65% | |
Cost of goods sold | Geographic Concentration Risk | UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration risk | 66% |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) | 9 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of Business Segments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue: | $ 133,261,052 | $ 117,272,974 | $ 417,490,683 | $ 308,424,904 | |
Gross Profit: | 28,653,656 | 9,607,941 | 73,723,834 | 18,899,624 | |
Operating Income: | 26,732,866 | 7,849,027 | 67,619,334 | 13,490,940 | |
Grain Inventories: | 29,828,976 | 29,828,976 | $ 7,846,045 | ||
Total Assets: | 186,190,125 | 186,190,125 | 151,938,925 | ||
Ethanol division | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue: | 110,898,770 | 99,758,386 | 340,575,754 | 238,544,279 | |
Gross Profit: | 27,966,708 | 9,783,375 | 70,627,287 | 16,594,643 | |
Operating Income: | 26,363,161 | 8,341,704 | 65,474,516 | 12,137,688 | |
Grain Inventories: | 24,475,078 | 24,475,078 | 2,995,914 | ||
Total Assets: | 180,800,938 | 180,800,938 | 143,145,441 | ||
Trading division | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue: | 22,362,282 | 17,514,588 | 76,914,929 | 69,880,625 | |
Gross Profit: | 686,948 | (175,434) | 3,096,547 | 2,304,981 | |
Operating Income: | 369,705 | $ (492,677) | 2,144,818 | $ 1,353,252 | |
Grain Inventories: | 5,353,898 | 5,353,898 | 4,850,131 | ||
Total Assets: | $ 5,389,187 | $ 5,389,187 | $ 8,793,484 |