Red Trail Energy (REGX) 10-Q 15 Feb 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Dec. 31, 2023	Feb. 13, 2024
Document and Entity Information [Abstract]
Entity Registrant Name	RED TRAIL ENERGY, LLC
Entity Central Index Key	0001359687
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Entity File Number	000-52033
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Quarterly Report	true
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,148,160
Entity Incorporation, State or Country Code	ND
Entity Tax Identification Number	76-0742311
Entity Address, Address Line One	3682 Highway 8 South
Entity Address, Address Line Two	P.O. Box 11
Entity Address, City or Town	Richardton
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58652
City Area Code	701
Local Phone Number	974-3308
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Amendment Flag	false

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Current Assets
Cash and equivalents	$ 16,563,108	$ 11,617,435
Restricted cash - margin account	4,703,269	2,933,668
Accounts receivable, primarily related party	4,999,684	7,669,441
Inventory	16,395,696	9,099,945
Prepaid expenses	1,151,180	369,430
Total current assets	43,812,937	31,689,919
Property, Plant and Equipment
Land	1,333,681	1,333,681
Land improvements	17,662,538	17,662,538
Buildings	15,320,492	15,320,492
Plant and equipment	122,534,331	122,444,522
Construction in progress	2,345,183	1,986,776
Gross property, plant and equipment	159,196,225	158,748,009
Less accumulated depreciation	84,799,719	83,208,524
Net property, plant and equipment	74,396,506	75,539,485
Other Assets
Operating Lease, Right-of-Use Asset	2,022,812	2,122,550
Investment in RPMG	940,642	940,642
Patronage equity	6,391,988	6,457,604
Deposits	40,000	40,000
Total other assets	9,395,442	9,560,796
Total Assets	127,604,885	116,790,200
Current Liabilities
Accounts payable	12,355,131	6,805,187
Accrued expenses	2,368,267	1,921,880
Derivative Liability	1,467,392	0
Accrued loss on firm purchase commitments (see notes 3 and 7)	1,394,000	0
Other Liabilities, Current	154,901	38,294
Current maturities of notes payable	2,123,035	2,341,784
Current portion of operating lease liabilities	369,278	376,021
Total current liabilities	26,254,228	11,483,166
Long-Term Liabilities
Notes payable	20,188,095	20,188,774
Long-term operating lease liabilities	1,653,534	1,746,528
Total long-term liabilities	$ 21,841,629	$ 21,935,302
Common Unit, Outstanding	40,148,160	40,148,160
Common Unit, Issued	40,148,160	40,148,160
Stockholders' Equity Attributable to Parent	$ 79,509,028	$ 83,371,732
Total Liabilities and Members’ Equity	127,604,885	116,790,200
Distribution Payable	$ 6,022,224	$ 0

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Revenues, primarily related party	$ 43,456,009	$ 44,498,440
Cost of Goods Sold
Cost of goods sold	38,958,689	40,645,203
Loss on firm purchase commitments	1,394,000	464,000
Total Cost of Goods Sold	40,352,689	41,109,203
Lower of cost or market inventory adjustment	0	0
Gross Profit	3,103,320	3,389,237
General and Administrative Expenses	1,295,942	1,240,310
Operating Income (Loss)	1,807,378	2,148,927
Other Income (Expense)
Interest income	165,894	13,073
Other income	455,147	(17,511)
Interest expense	(267,904)	(279,274)
Total other income (expense), net	353,137	(283,712)
Net Income (Loss)	$ 2,160,515	$ 1,865,215
Weighted Average Units Outstanding, Basic	40,148,160	40,148,160
Weighted Average Units Outstanding, Diluted	40,148,160	40,148,160
Net Income (Loss) Per Unit, Basic	$ 0.05	$ 0.05
Net Income (Loss) Per Unit, Diluted	$ 0.05	$ 0.05

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows from Operating Activities
Net income	$ 2,160,515	$ 1,865,215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,591,194	1,577,279
Gain (Loss) on Disposition of Other Assets	0	19,759
Change in fair value of derivative instruments	1,467,393	(959,510)
Loss on firm purchase commitments	1,394,000	464,000
Noncash patronage equity	65,616	0
Change in operating assets and liabilities:
Accounts receivable	2,669,757	(530,859)
Inventory	(8,689,751)	(3,464,178)
Prepaid expenses	(781,751)	(583,641)
Increase (Decrease) in Contract with Customer, Liability	116,607	270,154
Accounts payable	5,549,944	8,013,288
Accrued expenses	446,388	148,233
Accrued purchase commitment losses	1,394,000	464,000
Net cash provided by operating activities	7,383,912	7,283,740
Cash Flows from Investing Activities
Investment in RPMG	0	(335,642)
Proceeds from disposal of fixed assets	0	23,000
Capital expenditures	(448,214)	(1,029,977)
Net cash used in investing activities	(448,214)	(1,342,619)
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	(995)	0
Cash Flows from Financing Activities
Proceeds from Notes Payable	0	6,789,836
Debt repayments	(219,429)	(1,141)
Net cash (used for) provided by financing activities	(220,424)	6,788,695
Net Change in Cash, Cash Equivalents and Restricted Cash	6,715,274	12,729,816
Cash, Cash Equivalents and Restricted Cash - Beginning of Period	14,551,103	11,152,015
Cash, Cash Equivalents and Restricted Cash - End of Period	21,266,377	23,881,831
Cash and equivalents	16,563,108	19,851,325
Restricted Cash and Cash Equivalents	4,703,269	4,030,506
Cash, cash equivalents and restricted cash	21,266,377	23,881,831
Supplemental Disclosure of Cash Flow Information
Interest paid	267,904	279,274
Distributions Payable	$ 6,022,224	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Red Trail Energy, LLC, a North Dakota limited liability company (the “Company”), owns and operates a 50 million gallon annual name-plate production ethanol plant near Richardton, North Dakota (the “Plant”). 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. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, inventory, and allowance for credit losses. Actual results could differ from those estimates. Net Income Per Unit
Nature of Operations	Nature of Business

Revenue

Revenue	3 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE Revenue Recognition The Company recognizes revenue from sales of ethanol and co-products at the point in time when the performance obligations in the contract are met, which is when the customer obtains control of such products and typically occurs upon shipment (depending on the terms of the underlying contracts). Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver specified volumes of co-products over a contractual period of less than 12 months. In such instances, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue when control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligation. Revenue by Source The following table disaggregates revenue by major source for the three months ended December 31, 2023 and 2022. Revenues For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Ethanol, E85 and Industrial Alcohol $ 32,058,346 $ 31,751,619 Distillers Grains 8,001,772 9,536,527 Syrup 144,647 150,122 Corn Oil 3,179,871 3,009,481 Other 71,373 50,691 Total revenue from contracts with customers $ 43,456,009 $ 44,498,440 Shipping and Handling Costs We account for shipping and handling activities related to contracts with customers as costs to fulfill our promises to transfer the associated products. Accordingly, we record customer payments associated with shipping and handling costs as a component of revenue and classify such costs as a component of cost of goods sold. Customer Deposits Customer deposits are contract liabilities for payments in excess of revenue recognized. Customer deposits are recognized when modified distillers grains customers make prepayments on their contracts. The ending and opening balances for accounts receivable and customer deposits were as follows: For the period ended December 31, 2023 (unaudited) For the period ended September 30, 2023 (unaudited) For the period beginning October 1, 2022 (unaudited) Accounts receivable $ 4,999,684 $ 7,669,441 $ 4,879,011 Customer deposits 154,901 38,294 10,636

Derivative Instruments

Derivative Instruments	3 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS Commodity Contracts As part of its hedging strategy, the Company may enter into ethanol, soybean, soybean oil, natural gas and corn commodity-based derivatives in order to protect cash flows from fluctuations caused by volatility in commodity prices in order to protect gross profit margins from potentially adverse effects of market and price volatility on ethanol sales, corn oil sales, and corn 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 market value is recorded through earnings in the period of change. Ethanol derivative fair market value gains or losses are included in the results of operations and are classified as revenue, and corn derivative changes in fair market value are included in cost of goods sold. As of: December 31, 2023 (unaudited) September 30, 2023 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 1,680 8,400,000 bushels $ 1,028,062 — — bushels $ — Natural gas futures 53 530,000 dk $ 439,330 — — dk $ — Total fair value $ 1,467,392 $ — Amounts are combined on the balance sheet - negative numbers represent liabilities The following tables provide details regarding the Company's derivative financial instruments at December 31, 2023 and September 30, 2023: Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2023 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 1,467,392 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 1,467,392 Balance Sheet - as of September 30, 2023 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ — Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended December 31, 2023 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2022 (unaudited) Corn derivative instruments Cost of Goods Sold $ 776,649 $ 1,183,562 Ethanol derivative instruments Revenue — 21,429 Natural gas derivative instruments Cost of Goods Sold 439,330 — Total $ 1,215,979 $ 1,204,991

Inventory

Inventory	3 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventory	INVENTORY Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2023 and September 30, 2023 were as follows: December 31, 2023 September 30, 2023 Raw materials, including corn, chemicals and supplies $ 11,129,113 $ 4,263,403 Work in process 1,226,701 1,435,905 Finished goods, including ethanol and distillers grains 1,862,644 1,918,439 Spare parts 2,177,238 1,482,198 Total inventory $ 16,395,696 $ 9,099,945 Lower of cost or net realizable value adjustments for the three months ended December 31, 2023 and 2022 were as follows: For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Loss on firm purchase commitments $ 1,394,000 $ 464,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — Total loss on lower of cost or net realizable value adjustments $ 1,394,000 $ 464,000 The Company has entered into forward corn purchase contracts under which it is required to take delivery at the contract price. At the time the contracts were created, the price of the contract approximated market price. Subsequent changes in market conditions could cause the contract prices to become higher or lower than market prices. As of December 31, 2023, the average price of corn purchased under certain fixed price contracts, that had not yet been delivered, was greater than the approximated market price. Based on this information, the Company has estimated loss on firm purchase commitments of approximately $1,394,000 and $464,000 for the three months ended December 31, 2023 and 2022, respectively. The loss is recorded in “Loss on firm purchase commitments” on the statement of operations and "Accrued loss on firm purchase commitments" on the balance sheet. The amount of the potential loss was determined by applying a methodology similar to that used in the impairment valuation with respect to inventory. Given the uncertainty of future ethanol prices, future losses on the outstanding purchase commitments could be recorded in future periods.

Bank Financing

Bank Financing	3 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Bank Financing	BANK FINANCING Ethanol Recovery Program On July 13, 2020, we received a $5.41 million loan through the Bank of North Dakota's Ethanol Recovery Program and Cornerstone Bank ("Cornerstone"). The Ethanol Recovery Program was developed by the North Dakota Ethanol Producers Association and the Bank of North Dakota to use the existing Biofuels Partnership in Assisting Community Expansion ("PACE") program and Value-added Guarantee Loan program to help ethanol production facilities weather the economic challenges caused by the COVID-19 pandemic. Ethanol producers could qualify for up to $15 million of a low interest loan of 1% based on the amount of such producers' annual corn grind. On December 3, 2021 we received forgiveness of $2.65 million of the loan. The forgiveness was recorded as other income. The outstanding balance as of December 31, 2023 was $87,193. The maturity date of the loan is July 13, 2025. The fixed interest rate on December 31, 2023 was 3.75% with an interest rate being bought down through the Bank of North Dakota to 1%. Revolving Loan On February 3, 2022 we renewed our $10 million revolving loan (the "Revolving Loan") with Cornerstone. On February 3, 2022 the maturity date was extended to March 31, 2022. On April 8, 2022 the Revolving Loan was renewed. The new maturity date was April 7, 2023. Subsequent to year end the Revolving Loan was renewed and now has a maturity date of April 4, 2024. At December 31, 2023, we had $10 million available under the Revolving Loan. The variable interest rate on December 31, 2023 was 7.250%. Construction Loans On October 28, 2022, we entered into a $25 million loan to replace the First Construction Loan and Second Construction Loan. We make annual payments of approximately $3.1 million that is due in January each year. The maturity date of the Consolidated Loan is January 31, 2032. The fixed interest rate is 4.65%. The outstanding balance as of December 31, 2023, was $22.2 million. Each of the Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities and finance lease liabilities for the twelve months ending December 31 Totals 2024 $ 2,123,035 2025 2,133,567 2026 2,229,314 2027 2,335,215 2028 2,446,147 Thereafter 11,043,852 Total $ 22,311,130

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The following table provides information on those liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and September 30, 2023, respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2023 (unaudited) Fair Value as of December 31, 2023 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 1,467,393 $ 1,467,393 $ 1,467,393 $ — $ — Total $ 1,467,393 $ 1,467,393 $ 1,467,393 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2023 Fair Value as of September 30, 2023 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ —

Leases

Leases	3 Months Ended
	Dec. 31, 2023
Leases [Abstract]
leases disclosure text block	LEASES The Company leases railcar and plant equipment. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended December 31, 2023, the Company's estimated weighted -average discount rate was 7.25%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has elected the short-term lease exemption for all leases with a term of 12 months or less for both existing and ongoing operating leases to not recognize the asset and liability for those leases. Lease payments for short-term leases are recognized on straight-line basis. The Company determines if an arrangement is a lease or contains a lease at inception. The Company's existing leases have remaining lease terms of approximately one year to seven years, which may include options to extend the leases when it is reasonably certain the Company will exercise those options. At December 31, 2023 the weighted average remaining lease term was six 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 sublease agreements. The Company is generally responsible for maintenance, taxes, and utilities for leased equipment. Rent expense for operating leases was approximately $65,500 and $107,000 for the three months ended December 31, 2023 and 2022, respectively. Rent expense for short-term leases was approximately $117,000 and $193,000 for the three months ended December 31, 2023 and 2022, respectively. Equipment under financing leases consists of office equipment and plant equipment. At December 31, 2023 and September 30, 2023, equipment under financing leases was as follows: December 31, 2023 September 30, 2023 Equipment $ 493,414 $ 493,414 Less accumulated amortization (249,138) (243,277) Net equipment under financing lease $ 244,276 $ 250,137 At December 31, 2023, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2024 $ 369,277 $ 4,141 2025 388,124 — 2026 410,534 — 2027 406,115 — 2028 448,762 — Total minimum lease commitments $ 2,022,812 4,141 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 4,141

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Firm Purchase Commitments for Corn To ensure an adequate supply of corn to operate the Plant, the Company enters into contracts to purchase corn from local farmers and elevators. At December 31, 2023, the Company had various fixed price contracts for the purchase of approximately 7.1 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $34.1 million related to the 7.1 million bushels under contract. Water On April 21, 2015, we entered into a ten-year contract to purchase raw water from Southwest Water Authority in order to meet the Plant's water requirements. Our contract requires us to purchase a minimum of 160 million gallons of water per year. The minimum estimated obligation for this contract is $424,000 per year. Profit and Cost Sharing Agreement

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS The Company has balances and transactions in the normal course of business with various related parties for the purchase of corn, sale of distillers grains, and sale of ethanol. The related parties include unit holders, members of the board of governors of the Company, and RPMG, Inc. (“RPMG”). Significant related party activity affecting the financial statements is as follows: December 31, 2023 September 30, 2023 Balance Sheet Accounts receivable $ 3,894,997 $ 6,939,350 Accounts payable 1,420,168 1,299,333 For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Statement of Operations Revenues $ 42,144,640 $ 40,400,856 Cost of goods sold 789,359 1,011,858 Inventory Purchases $ 8,801,010 $ 4,656,486

Uncertainties Impacting the Eth

Uncertainties Impacting the Ethanol Industry and Our Future Operations	3 Months Ended
	Dec. 31, 2023
Uncertainties Impacting the Ethanol Industry and Our Future Operations [Abstract]
Uncertainties Impacting the Ethanol Industry and Our Future Operations	UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS During volatile market conditions, the Company experiences certain risks and uncertainties, which could have a severe impact on operations. The Company's revenues are derived primarily from the sale and distribution of ethanol and distillers grains to customers primarily located in the United States. Corn for the production process is supplied to the Plant primarily from local agricultural producers and from purchases on the open market. The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol and distillers grains and by the cost at which it is able to purchase corn for operations. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence with ethanol generally 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, and government programs, global political or economic issues, including but not limited to the war in Ukraine and sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts, including but not limited to unrest in the Middle East. The Company's financial performance is highly dependent on the Federal Renewable Fuels Standard ("RFS"), which requires that a certain amount of renewable fuels must be used each year in the United States. Corn based ethanol, such as the ethanol the Company produces, can be used to meet a portion of the RFS requirement. In November 2013, the EPA issued a proposed rule which would reduce the RFS for 2014, including the RFS requirement related to corn based ethanol. The EPA proposed rule was subject to a comment period which expired in January 2014. On November 30, 2015, the EPA released its final ethanol use requirements for 2014, 2015 and 2016, which were lower than the statutory requirements in the RFS. However, the final RFS for 2017 equaled the statutory requirement which was also the case for the 2018, 2019, 2020, 2021, and 2022 RFS final rules. The final RFS for 2022 was significantly larger than 2021, with a final volume requirement of 20.63 billion gallons and a supplemental standard of .25 billion gallons. The final RFS for 2023 and 2024 had a volume requirement of 20.94 billion gallons and 21.54 billion gallons, respectively.

Member's Equity

Member's Equity	3 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Member's Equity	MEMBER'S EQUITY Changes in member's equity for the three months ended December 31, 2023 and 2022. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2022 $ 39,044,595 $ 75,541 $ 46,880,539 $ (159,540) $ 85,841,135 Net income — — 1,865,215 — 1,865,215 Balances December 31, 2022 $ 39,044,595 $ 75,541 $ 48,745,754 $ (159,540) $ 87,706,350 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2023 $ 39,044,595 $ 75,541 $ 44,411,136 $ (159,540) $ 83,371,732 Distribution (6,023,219) (6,023,219) Net income — — 2,160,515 — 2,160,515 Balances - December 31, 2023 $ 39,044,595 $ 75,541 $ 40,548,432 $ (159,540) $ 79,509,028

Subsequent Event

Subsequent Event	3 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	SUBSEQUENT EVENTS On January 12, 2024 the Company paid the $0.15 distribution declared on December 20, 2023.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates
Net Income Per Unit	Net Income Per Unit
Recently Issued Accounting Pronouncements

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by major source for the three months ended December 31, 2023 and 2022. Revenues For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Ethanol, E85 and Industrial Alcohol $ 32,058,346 $ 31,751,619 Distillers Grains 8,001,772 9,536,527 Syrup 144,647 150,122 Corn Oil 3,179,871 3,009,481 Other 71,373 50,691 Total revenue from contracts with customers $ 43,456,009 $ 44,498,440
Deposit Liabilities, Type	The ending and opening balances for accounts receivable and customer deposits were as follows: For the period ended December 31, 2023 (unaudited) For the period ended September 30, 2023 (unaudited) For the period beginning October 1, 2022 (unaudited) Accounts receivable $ 4,999,684 $ 7,669,441 $ 4,879,011 Customer deposits 154,901 38,294 10,636

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments Commodity Contracts	As of: December 31, 2023 (unaudited) September 30, 2023 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 1,680 8,400,000 bushels $ 1,028,062 — — bushels $ — Natural gas futures 53 530,000 dk $ 439,330 — — dk $ — Total fair value $ 1,467,392 $ — Amounts are combined on the balance sheet - negative numbers represent liabilities
Derivatives Not Designated As Hedging Instruments, Balance Sheet	The following tables provide details regarding the Company's derivative financial instruments at December 31, 2023 and September 30, 2023: Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2023 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 1,467,392 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 1,467,392 Balance Sheet - as of September 30, 2023 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ —
Derivatives Not Designated as Hedging Instruments, Statement of Operations	Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended December 31, 2023 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2022 (unaudited) Corn derivative instruments Cost of Goods Sold $ 776,649 $ 1,183,562 Ethanol derivative instruments Revenue — 21,429 Natural gas derivative instruments Cost of Goods Sold 439,330 — Total $ 1,215,979 $ 1,204,991

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2023 and September 30, 2023 were as follows: December 31, 2023 September 30, 2023 Raw materials, including corn, chemicals and supplies $ 11,129,113 $ 4,263,403 Work in process 1,226,701 1,435,905 Finished goods, including ethanol and distillers grains 1,862,644 1,918,439 Spare parts 2,177,238 1,482,198 Total inventory $ 16,395,696 $ 9,099,945
Long-term Purchase Commitment	Lower of cost or net realizable value adjustments for the three months ended December 31, 2023 and 2022 were as follows: For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Loss on firm purchase commitments $ 1,394,000 $ 464,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — Total loss on lower of cost or net realizable value adjustments $ 1,394,000 $ 464,000

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	ach of the Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities and finance lease liabilities for the twelve months ending December 31 Totals 2024 $ 2,123,035 2025 2,133,567 2026 2,229,314 2027 2,335,215 2028 2,446,147 Thereafter 11,043,852 Total $ 22,311,130

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table provides information on those liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and September 30, 2023, respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2023 (unaudited) Fair Value as of December 31, 2023 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 1,467,393 $ 1,467,393 $ 1,467,393 $ — $ — Total $ 1,467,393 $ 1,467,393 $ 1,467,393 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2023 Fair Value as of September 30, 2023 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ —

Leases, Codification Topic 840

Leases, Codification Topic 840 (Tables)	3 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Schedule of Capital Leased Assets	Equipment under financing leases consists of office equipment and plant equipment. At December 31, 2023 and September 30, 2023, equipment under financing leases was as follows: December 31, 2023 September 30, 2023 Equipment $ 493,414 $ 493,414 Less accumulated amortization (249,138) (243,277) Net equipment under financing lease $ 244,276 $ 250,137
Schedule of Future Minimum Payments for Capital Leases	At December 31, 2023, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2024 $ 369,277 $ 4,141 2025 388,124 — 2026 410,534 — 2027 406,115 — 2028 448,762 — Total minimum lease commitments $ 2,022,812 4,141 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 4,141

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Significant related party activity affecting the financial statements is as follows: December 31, 2023 September 30, 2023 Balance Sheet Accounts receivable $ 3,894,997 $ 6,939,350 Accounts payable 1,420,168 1,299,333 For the three months ended December 31, 2023 (unaudited) For the three months ended December 31, 2022 (unaudited) Statement of Operations Revenues $ 42,144,640 $ 40,400,856 Cost of goods sold 789,359 1,011,858 Inventory Purchases $ 8,801,010 $ 4,656,486

Member's Equity (Tables)

Member's Equity (Tables)	3 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Schedule of Changes in Member's Equity	Changes in member's equity for the three months ended December 31, 2023 and 2022. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2022 $ 39,044,595 $ 75,541 $ 46,880,539 $ (159,540) $ 85,841,135 Net income — — 1,865,215 — 1,865,215 Balances December 31, 2022 $ 39,044,595 $ 75,541 $ 48,745,754 $ (159,540) $ 87,706,350 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2023 $ 39,044,595 $ 75,541 $ 44,411,136 $ (159,540) $ 83,371,732 Distribution (6,023,219) (6,023,219) Net income — — 2,160,515 — 2,160,515 Balances - December 31, 2023 $ 39,044,595 $ 75,541 $ 40,548,432 $ (159,540) $ 79,509,028

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Nature of Business (Details) gal in Millions	3 Months Ended
	Dec. 31, 2023 USD ($) gal	Dec. 31, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Product Information [Line Items]
Net cash provided by operating activities	$ 7,383,912	$ 7,283,740
Cash, cash equivalents and restricted cash	21,266,377	23,881,831	$ 14,551,103	$ 11,152,015
Loss on firm purchase commitments	$ 1,394,000	$ 464,000
Ethanol
Product Information [Line Items]
Annual production capacity | gal	50

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 43,456,009	$ 44,498,440
Accounts receivable, primarily related party	4,999,684	4,879,011	$ 7,669,441
Other Liabilities, Current	154,901	10,636	$ 38,294
Ethanol, E85 and Industrial Alcohol
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	32,058,346	31,751,619
Distillers Grains
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	8,001,772	9,536,527
Syrup
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	144,647	150,122
Corn Oil
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	3,179,871	3,009,481
Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 71,373	$ 50,691

Derivative Instruments - Commod

Derivative Instruments - Commodity Contracts (Details)	Dec. 31, 2023 USD ($) contract dth bu	Sep. 30, 2023 USD ($) dth bu contract
Commodity Contract | Commodity
Derivative [Line Items]
Liabilities	$ 1,467,392	$ 0
Corn | Commodity
Derivative [Line Items]
Notional Amount (Qty) | dth	530,000
Corn | Corn options
Derivative [Line Items]
Number of Contracts | contract	1,680	0
Notional Amount (Qty) | bu	8,400,000	0
Liabilities	$ 1,028,062	$ 0
Natural Gas [Member] | Commodity
Derivative [Line Items]
Number of Contracts | contract	53	0
Notional Amount (Qty) | dth		0
Liabilities	$ 439,330	$ 0

Derivative Instruments - Balanc

Derivative Instruments - Balance Sheet (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 0	$ 0
Derivative Liability, Fair Value, Gross Liability	1,467,392	0
Fair Value	0	0
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	$ 1,467,392	$ 0

Derivative Instruments - Income

Derivative Instruments - Income Statement (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Corn
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of goods sold	Cost of goods sold
Ethanol
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Revenues, primarily related party	Revenues, primarily related party
Natural gas
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of goods sold	Cost of goods sold
Not Designated as Hedging Instrument | Corn
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 776,649	$ 1,183,562
Not Designated as Hedging Instrument | Ethanol
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	0	21,429
Not Designated as Hedging Instrument | Natural gas
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	439,330	0
Not Designated as Hedging Instrument | Commodity Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 1,215,979	$ 1,204,991

- Narrative (Details)

- Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Inventory Disclosure [Abstract]
Raw materials, including corn, chemicals and supplies	$ 11,129,113		$ 4,263,403
Work in process	1,226,701		1,435,905
Finished goods, including ethanol and distillers grains	1,862,644		1,918,439
Spare parts	2,177,238		1,482,198
Inventory	16,395,696		$ 9,099,945
Loss on firm purchase commitments	$ 1,394,000	$ 464,000

Inventory - Total Loss on Lower

Inventory - Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Loss on firm purchase commitments	$ 1,394,000	$ 464,000
Lower of cost or market inventory adjustment	0	0
Total loss on lower of cost or market adjustments	$ 1,394,000	$ 464,000

Bank Financing - Narrative (Det

Bank Financing - Narrative (Details) - USD ($)		3 Months Ended
	Dec. 03, 2021	Dec. 31, 2023	Feb. 03, 2022	Jul. 13, 2020
Debt Instrument [Line Items]
Long-term Debt		$ 22,311,130
Long-Term Debt, Maturity, Year One		2,123,035
Long-Term Debt, Maturity, Year Two		2,133,567
Long-Term Debt, Maturity, Year Three		2,229,314
Long-Term Debt, Maturity, Year Four		2,335,215
Long-Term Debt, Maturity, Year Five		2,446,147
Long-Term Debt, Maturity, after Year Five		11,043,852
Revolving loan | Revolving loan
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity		$ 10,000,000
Line of Credit Facility, Interest Rate at Period End		7.25%
Bank of North Dakota Ethanol Recovery Progrm		(3.75%)
Bank of North Dakota Ethanol Recovery Program, Rate after Buy Down		1%
Long term debt, revolving loan			$ 10,000,000
Revolving loan | Construction Loans [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 25,000,000
Line of Credit Facility, Interest Rate at Period End		4.65%
Line of Credit Facility, Fair Value of Amount Outstanding		$ 22,200,000
Line of Credit Facility, Periodic Payment		3.1
Revolving loan | Bank of North Dakota and Cornerstone Bank
Debt Instrument [Line Items]
Long-term Debt				$ 5,410,000
debt instrument, outstanding amount		87,193
Gain (Loss) on Extinguishment of Debt	$ 2.65
Bank of North Dakota and Cornerstone Bank | Revolving loan
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 15
Line of Credit Facility, Interest Rate at Period End		100%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Assets - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodities derivative instruments	$ 1,467,393	$ 0
Liabilities	1,467,393	0
Financial Instruments, Owned, Physical Commodities At Carrying Amount	1,467,393	0
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Carrying Amount	1,467,393	0
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodities derivative instruments	1,467,393	0
Liabilities	1,467,393	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodities derivative instruments	0	0
Liabilities	0	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodities derivative instruments	0	0
Liabilities	$ 0	$ 0

Leases, Codification Topic 84_2

Leases, Codification Topic 840 (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Capital Leased Assets [Line Items]
Discount rate (percentage)	7.25%
Operating Leased Assets [Line Items]
Current Year	$ 369,277
Year One	388,124
Year Two	410,534
Year Three	406,115
Year Four	448,762
Total minimum lease commitments	2,022,812
Current Year	4,141
Year One	0
Year Two	0
Year Three	0
Year Four	0
Finance Lease, Liability, Undiscounted Excess Amount	0
Total minimum lease commitments	4,141
Finance Lease, Liability	$ 4,141
Weighted average remaining lease term	6 years
Minimum
Operating Leased Assets [Line Items]
Lease terms	1 year
Maximum
Operating Leased Assets [Line Items]
Lease terms	7 years
Equipment [Member]
Capital Leased Assets [Line Items]
Finance Lease, Right-of-Use Asset, before Accumulated Amortization	$ 493,414		$ 493,414
Finance Lease, Right-of-Use Asset, Accumulated Amortization	249,138		243,277
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total	244,276		$ 250,137
Transportation Equipment
Capital Leased Assets [Line Items]
Rent expense for operating leases	$ 65,500	$ 107,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, gal in Millions, bu in Millions			3 Months Ended
	Nov. 01, 2016 USD ($) $ / shares shares	Oct. 11, 2016	Dec. 31, 2023 USD ($) bu gal
Profit and Cost Sharing Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percent Of Net Revenue Generated From Business Activities Conducted On Purchased Real Estate	70%
Stock Issued During Period, Shares, Purchase of Assets | shares	2
Shares Issued, Price Per Share | $ / shares	$ 1.66
Length Of Contract	10 years	10 years
Payments for (Proceeds from) Other Real Estate Partnerships	$ 10,000,000
Guarantor Obligations, Liquidation Proceeds, Percentage	70%
Proceeds from Sale of Real Estate			$ 1,647,581
Bushels of corn | Fixed price contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, volume | bu			7.1
Commitments			$ 34,100,000
Raw water
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contract term			10 years
Minimum purchase, volume | gal			160
Minimum estimated liability			$ 424,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Related Party Transaction [Line Items]
Revenues, primarily related party	$ 43,456,009	$ 44,498,440
Cost of Goods and Services Sold	40,352,689	41,109,203
Inventories
Related Party Transaction [Line Items]
Inventory Purchases	8,801,010	4,656,486
Related Party
Related Party Transaction [Line Items]
Receivables, Fair Value Disclosure	3,894,997		$ 6,939,350
Accounts Payable	1,420,168		$ 1,299,333
Revenues, primarily related party	42,144,640	40,400,856
Cost of Goods and Services Sold	$ 789,359	$ 1,011,858

Member's Equity - Schedule of C

Member's Equity - Schedule of Changes in Member's Equity (Details) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 83,371,732	$ 85,841,135
Net income	2,160,515	1,865,215
Ending balance	79,509,028	87,706,350
Distributed Earnings	(6,023,219)
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	(995)	0
Class A Member Units
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	39,044,595	39,044,595
Ending balance	39,044,595	39,044,595
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	75,541	75,541
Ending balance	75,541	75,541
Accumulated Deficit/Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	44,411,136	46,880,539
Net income	2,160,515	1,865,215
Ending balance	40,548,432	48,745,754
Distributed Earnings	6,023,219
Member Units
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury Stock, Value	$ (159,540)	$ (159,540)	$ (159,540)	$ (159,540)

Subsequent Event (Details)

Subsequent Event (Details)	Jan. 12, 2024 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Incentive Distribution, Distribution Per Unit	$ 0.15