Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jun. 30, 2024 | Aug. 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 | Q3 | |
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 | Jun. 30, 2024 | |
Amendment Flag | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2024 | Sep. 30, 2023 |
Current Assets | ||
Cash and equivalents | $ 3,454,535 | $ 11,617,435 |
Restricted cash - margin account | 4,269,855 | 2,933,668 |
Accounts receivable, primarily related party | 2,836,519 | 7,669,441 |
Inventory | 11,994,207 | 9,099,945 |
Prepaid expenses | 838,082 | 369,430 |
Total current assets | 23,393,198 | 31,689,919 |
Property, Plant and Equipment | ||
Land | 1,333,681 | 1,333,681 |
Land improvements | 17,662,538 | 17,662,538 |
Buildings | 15,333,675 | 15,320,492 |
Plant and equipment | 124,273,872 | 122,444,522 |
Construction in progress | 1,527,696 | 1,986,776 |
Gross property, plant and equipment | 160,131,462 | 158,748,009 |
Less accumulated depreciation | 88,018,219 | 83,208,524 |
Net property, plant and equipment | 72,113,243 | 75,539,485 |
Other Assets | ||
Operating Lease, Right-of-Use Asset | 1,837,988 | 2,122,550 |
Investment in RPMG | 940,642 | 940,642 |
Patronage equity | 6,105,316 | 6,457,604 |
Deposits | 40,000 | 40,000 |
Total other assets | 8,923,946 | 9,560,796 |
Total Assets | 104,430,387 | 116,790,200 |
Current Liabilities | ||
Accounts payable | 3,340,227 | 6,805,187 |
Accrued expenses | 1,446,708 | 1,921,880 |
Derivative Liability | 684,237 | 0 |
Accrued loss on firm purchase commitments (see notes 3 and 7) | 76,000 | 0 |
Other Liabilities, Current | 11,078 | 38,294 |
Current maturities of notes payable | 2,127,700 | 2,341,784 |
Current portion of operating lease liabilities | 374,508 | 376,021 |
Total current liabilities | 8,060,458 | 11,483,166 |
Long-Term Liabilities | ||
Notes payable | 18,054,528 | 20,188,774 |
Long-term operating lease liabilities | 1,463,480 | 1,746,528 |
Total long-term liabilities | $ 19,518,008 | $ 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 | $ 76,851,921 | $ 83,371,732 |
Total Liabilities and Members’ Equity | $ 104,430,387 | $ 116,790,200 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenues, primarily related party | $ 34,578,254 | $ 49,690,760 | $ 112,069,256 | $ 148,820,593 |
Cost of Goods Sold | ||||
Cost of goods sold | 29,283,620 | 47,967,330 | 107,201,453 | 142,207,229 |
Loss on firm purchase commitments | 0 | 71,000 | 1,394,000 | 535,000 |
Total Cost of Goods Sold | 29,283,620 | 48,038,330 | 108,595,453 | 142,816,229 |
Lower of cost or market inventory adjustment | 0 | 0 | 0 | 74,000 |
Gross Profit | 5,294,634 | 1,652,430 | 3,473,803 | 6,004,364 |
General and Administrative Expenses | 1,231,379 | 1,310,476 | 3,819,594 | 4,098,939 |
Operating Income (Loss) | 4,063,255 | 341,954 | (345,791) | 1,905,425 |
Other Income (Expense) | ||||
Interest income | 27,722 | 14,953 | 248,820 | 44,978 |
Other income | 173 | 43,625 | 456,481 | 70,471 |
Interest expense | (286,097) | (264,282) | (800,086) | (818,859) |
Total other income (expense), net | (258,202) | (205,704) | (94,785) | (703,410) |
Net Income (Loss) | $ 3,805,053 | $ 136,250 | $ (440,576) | $ 1,202,015 |
Weighted Average Units Outstanding, Basic | 40,148,160 | 40,148,160 | 40,148,160 | 40,148,160 |
Weighted Average Units Outstanding, Diluted | 40,148,160 | 40,148,160 | 40,148,160 | 40,148,160 |
Net Income (Loss) Per Unit, Basic | $ 0.09 | $ 0 | $ (0.01) | $ 0.03 |
Net Income (Loss) Per Unit, Diluted | $ 0.09 | $ 0 | $ (0.01) | $ 0.03 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net income (Loss) | $ (440,576) | $ 1,202,015 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 4,809,695 | 4,745,508 |
Gain (Loss) on Disposition of Other Assets | 0 | 9,759 |
Change in fair value of derivative instruments | 684,238 | (1,010,567) |
increase (decrease) of net realizable value | 0 | 74,000 |
Loss on firm purchase commitments | 1,394,000 | 535,000 |
Noncash patronage equity | 352,288 | 50,897 |
Change in operating assets and liabilities: | ||
Accounts receivable | 4,832,922 | (2,778,879) |
Inventory | (4,288,262) | (3,095,539) |
Prepaid expenses | (468,653) | (261,853) |
Increase (Decrease) in Contract with Customer, Liability | (27,217) | 35,957 |
Accounts payable | (3,464,960) | 1,050,669 |
Accrued expenses | (475,171) | 1,268,459 |
Accrued purchase commitment losses | 76,000 | 419,000 |
Net cash provided by (used for) operating activities | 2,984,304 | 2,244,426 |
Cash Flows from Investing Activities | ||
Investment in RPMG | 0 | (335,642) |
Proceeds from disposal of fixed assets | 0 | 33,000 |
Capital expenditures | (1,383,452) | (1,917,310) |
Net cash provided by (used for) investing activities | (1,383,452) | (2,219,952) |
Cash Flows from Financing Activities | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (6,079,234) | (6,023,250) |
Proceeds from Notes Payable | 5,025,833 | 7,000,000 |
Debt repayments | (7,374,164) | (3,420,139) |
Net cash (used for) financing activities | (8,427,565) | (2,443,389) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (6,826,713) | (2,418,915) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 14,551,103 | 11,152,015 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 7,724,390 | 8,733,100 |
Cash and equivalents | 3,454,535 | 6,022,687 |
Restricted Cash and Cash Equivalents | 4,269,855 | 2,710,413 |
Cash, cash equivalents and restricted cash | 7,724,390 | 8,733,100 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | $ 1,103,585 | $ 437,438 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2024 | |
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”). Reduced Carbon Dioxide Fuels Credits The Company recently entered a market to sell voluntary carbon dioxide reduction credits. The Company is generating these credits through our carbon dioxide sequestration project. The Company holds these credits in inventory as we seek buyers who are interested in purchasing the credits. The Company is using the inventory method of accounting for these credits and we are not including these credits as assets on our balance sheet as they have negligible incremental costs associated with generating the credits. When the Company enters into a contract to sell these credits, we will recognize income upon transferring of the credit. 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 (Loss) Per Unit |
Nature of Operations | Nature of Business |
Revenue
Revenue | 9 Months Ended |
Jun. 30, 2024 | |
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 Company's contracts with customers 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 nine months ended June 30, 2024 and 2023. Revenues For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Ethanol, E85 and Industrial Alcohol $ 26,459,827 $ 38,727,252 $ 82,589,455 $ 111,546,165 Distillers Grains 5,772,019 8,572,529 21,214,955 28,780,739 Syrup 139,269 140,032 433,056 512,350 Corn Oil 2,159,064 2,208,059 7,668,057 7,831,189 NDGI Inspection Fee 48,075 42,888 163,733 150,149 Total revenue from contracts with customers $ 34,578,254 $ 49,690,760 $ 112,069,256 $ 148,820,592 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 balances for accounts receivable and customer deposits were as follows for the periods nine months ended June 30, 2024 and 2023 and periods ended September 30, 2023 and 2022: For the period ended June 30, 2024 (unaudited) For the period ended June 30, 2023 (unaudited) For the period ended September 30, 2023 (unaudited) For the period ended September 30, 2022 (unaudited) Accounts receivable $ 2,836,519 $ 7,657,890 $ 7,669,441 $ 4,879,011 Customer deposits 11,078 46,593 38,294 10,636 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 (unaudited) September 30, 2023 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 932 4,660,000 bu $ (597,237) — — bushels $ — Soybean oil options 100 10,000 t $ (19,500) — — gal $ — Natural gas options 50 500,000 dk $ (67,500) — — dk $ — Total fair value $ (684,237) $ — Amounts are combined on the balance sheet - negative numbers represent liabilities The following tables provide details regarding the Company's derivative financial instruments at June 30, 2024 and September 30, 2023: Derivatives not designated as hedging instruments: Balance Sheet - as of June 30, 2024 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ (684,237) Total derivatives not designated as hedging instruments for accounting purposes $ — $ (684,237) 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 June 30, 2024 (unaudited) Amount of gain (loss) recognized in income during the three months ended June 30, 2023 (unaudited) Amount of gain (loss) recognized in income during the nine months ended June 30, 2024 (unaudited) Amount of gain (loss) recognized in income during the nine months ended June 30, 2023 (unaudited) Corn derivative instruments Cost of Goods Sold $ (1,975,563) $ 675,471 $ (151,029) $ 987,956 Ethanol derivative instruments Revenue 56,750 570 56,750 21,999 Natural gas derivative instruments Cost of Goods Sold 13,990 45,610 702,660 74,000 Total $ (1,904,823) $ 721,651 $ 608,381 $ 1,083,955 |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is valued at the lower of cost or net realizable value. Inventory values as of June 30, 2024 and September 30, 2023 were as follows: June 30, 2024 September 30, 2023 Raw materials, including corn, chemicals and supplies $ 4,111,374 $ 4,263,403 Work in process 1,129,510 1,435,905 Finished goods, including ethanol and distillers grains 4,166,194 1,918,439 Spare parts 2,587,129 1,482,198 Total inventory $ 11,994,207 $ 9,099,945 Lower of cost or net realizable value adjustments for the nine months ended June 30, 2024 and 2023 were as follows: For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Loss on firm purchase commitments $ — $ 71,000 $ 1,394,000 $ 535,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — $ — $ 74,000 Total loss on lower of cost or net realizable value adjustments $ — $ 71,000 $ 1,394,000 $ 609,000 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 June 30, 2024, 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 $535,000 for the nine months ended June 30, 2024 and 2023, 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 | 9 Months Ended |
Jun. 30, 2024 | |
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 September 30,2023 was $306,000 and the current balance as of June 30, 2024 was $0. The maturity date of the loan is July 13, 2025. The fixed interest rate on June 30, 2024 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 April 8, 2022 the Revolving Loan was renewed with maturity date of April 7, 2023. Subsequent to year end the Revolving Loan was again renewed with a maturity date of April 4, 2024. On April 11, 2024 the Revolving loan was renewed for another year with a maturity date of April 5, 2025. Interest on Revolving Loan accrues on any outstanding balance at a rate of 0.25% less than the prime rate as published by the Wall Street Journal, which is adjusted monthly. The Revolving Loan has a minimum interest rate of 7.5%. At June 30, 2024, we had $10 million available under the Revolving Loan. The variable interest rate of the Revolving Loan on June 30, 2024 was 7.500%. Construction Loans On October 28, 2022, we entered into a $25 million loan to refinance two (2) previous construction loans. 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 June 30, 2024, was $20.0 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 June 30, 2024 Totals 2025 $ 2,127,700 2026 2,229,313 2027 2,335,215 2028 2,446,147 2029 2,562,348 Thereafter 8,481,505 Total $ 20,182,228 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and September 30, 2023, respectively. Fair Value Measurement Using Carrying Amount as of June 30, 2024 (unaudited) Fair Value as of June 30, 2024 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 684,238 $ 684,238 $ 684,238 $ — $ — Total $ 684,238 $ 684,238 $ 684,238 $ — $ — 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 | 9 Months Ended |
Jun. 30, 2024 | |
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 the date of commencement of the lease 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 nine months ended June 30, 2024, the Company's estimated weighted-average discount rate was 7.50%. 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 June 30, 2024 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 $605,000 and $747,000 for the nine months ended June 30, 2024 and 2023, respectively. Equipment under financing leases consists of office equipment and plant equipment. At June 30, 2024 and September 30, 2023, equipment under financing leases was as follows: June 30, 2024 September 30, 2023 Equipment $ 493,414 $ 493,414 Less accumulated amortization (260,861) (243,277) Net equipment under financing lease $ 232,553 $ 250,137 At June 30, 2024, 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 $ 374,508 $ 1,836 2025 402,203 — 2026 406,657 — 2027 395,390 — 2028 259,230 — Total minimum lease commitments $ 1,837,988 1,836 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 1,836 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, the Company had various fixed price contracts for the purchase of approximately 8.2 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $27.9 million related to the 8.2 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 The Company entered into a Profit and Cost Sharing Agreement with Bismarck Land Company, LLC, which became effective on November 1, 2016. The Profit and Cost Sharing Agreement provides that the Company will share 70% of the net revenue generated by the Company from business activities which are brought to the Company by Bismarck Land Company, LLC and conducted on the real estate purchased from the Bismarck Land Company, LLC. The real estate was initially purchased in exchange for 2 million membership units of the Company at $1.66 per unit. This obligation will terminate ten years after the |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 September 30, 2023 Balance Sheet Accounts receivable $ 2,475,162 $ 6,939,350 Accounts payable 275,611 1,299,333 For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Statement of Operations Revenues $ 33,042,103 $ 47,556,566 $ 139,085,302 $ 137,492,078 Cost of goods sold 749,101 674,171 3,120,136 2,688,422 General and administrative — — — 39,889 Inventory Purchases $ 3,800,078 $ 6,248,650 $ 27,523,669 $ 26,714,488 |
Uncertainties Impacting the Eth
Uncertainties Impacting the Ethanol Industry and Our Future Operations | 9 Months Ended |
Jun. 30, 2024 | |
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 | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Member's Equity | MEMBER'S EQUITY Changes in member's equity for the nine months ended June 30, 2024 and 2023. 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 Distribution — — (56,015) — (56,015) Net (loss) — — (6,406,145) — (6,406,145) Balances - March 31, 2024 $ 39,044,595 $ 75,541 $ 34,086,272 $ (159,540) $ 73,046,868 Distribution — — — — — Net income — — 3,805,053 — 3,805,053 Balances - June 30, 2024 $ 39,044,595 $ 75,541 $ 37,891,325 $ (159,540) $ 76,851,921 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 Distribution — — (6,024,235) — (6,024,235) Net income — — (799,450) — (799,450) Balances - March 31, 2023 $ 39,044,595 $ 75,541 $ 41,922,069 $ (159,540) $ 80,882,665 Distribution $0.10 per unit — — (2,006,423) — (2,006,423) Net income — — 136,250 — 136,250 Balances - June 30, 2023 $ 39,044,595 $ 75,541 $ 40,051,896 $ (159,540) $ 79,012,492 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTS |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates |
Net Income Per Unit | Net Income (Loss) Per Unit |
Recently Issued Accounting Pronouncements | |
Emission Credits or Allowances, Policy | Reduced Carbon Dioxide Fuels Credits The Company recently entered a market to sell voluntary carbon dioxide reduction credits. The Company is generating these credits through our carbon dioxide sequestration project. The Company holds these credits in inventory as we seek buyers who are interested in purchasing the credits. The Company is using the inventory method of accounting for these credits and we are not including these credits as assets on our balance sheet as they have negligible incremental costs associated with generating the credits. When the Company enters into a contract to sell these credits, we will recognize income upon transferring of the credit. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major source for the nine months ended June 30, 2024 and 2023. Revenues For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Ethanol, E85 and Industrial Alcohol $ 26,459,827 $ 38,727,252 $ 82,589,455 $ 111,546,165 Distillers Grains 5,772,019 8,572,529 21,214,955 28,780,739 Syrup 139,269 140,032 433,056 512,350 Corn Oil 2,159,064 2,208,059 7,668,057 7,831,189 NDGI Inspection Fee 48,075 42,888 163,733 150,149 Total revenue from contracts with customers $ 34,578,254 $ 49,690,760 $ 112,069,256 $ 148,820,592 |
Deposit Liabilities, Type | The ending balances for accounts receivable and customer deposits were as follows for the periods nine months ended June 30, 2024 and 2023 and periods ended September 30, 2023 and 2022: For the period ended June 30, 2024 (unaudited) For the period ended June 30, 2023 (unaudited) For the period ended September 30, 2023 (unaudited) For the period ended September 30, 2022 (unaudited) Accounts receivable $ 2,836,519 $ 7,657,890 $ 7,669,441 $ 4,879,011 Customer deposits 11,078 46,593 38,294 10,636 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments Commodity Contracts | As of: June 30, 2024 (unaudited) September 30, 2023 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 932 4,660,000 bu $ (597,237) — — bushels $ — Soybean oil options 100 10,000 t $ (19,500) — — gal $ — Natural gas options 50 500,000 dk $ (67,500) — — dk $ — Total fair value $ (684,237) $ — 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 June 30, 2024 and September 30, 2023: Derivatives not designated as hedging instruments: Balance Sheet - as of June 30, 2024 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ (684,237) Total derivatives not designated as hedging instruments for accounting purposes $ — $ (684,237) 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 June 30, 2024 (unaudited) Amount of gain (loss) recognized in income during the three months ended June 30, 2023 (unaudited) Amount of gain (loss) recognized in income during the nine months ended June 30, 2024 (unaudited) Amount of gain (loss) recognized in income during the nine months ended June 30, 2023 (unaudited) Corn derivative instruments Cost of Goods Sold $ (1,975,563) $ 675,471 $ (151,029) $ 987,956 Ethanol derivative instruments Revenue 56,750 570 56,750 21,999 Natural gas derivative instruments Cost of Goods Sold 13,990 45,610 702,660 74,000 Total $ (1,904,823) $ 721,651 $ 608,381 $ 1,083,955 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is valued at the lower of cost or net realizable value. Inventory values as of June 30, 2024 and September 30, 2023 were as follows: June 30, 2024 September 30, 2023 Raw materials, including corn, chemicals and supplies $ 4,111,374 $ 4,263,403 Work in process 1,129,510 1,435,905 Finished goods, including ethanol and distillers grains 4,166,194 1,918,439 Spare parts 2,587,129 1,482,198 Total inventory $ 11,994,207 $ 9,099,945 |
Long-term Purchase Commitment | Lower of cost or net realizable value adjustments for the nine months ended June 30, 2024 and 2023 were as follows: For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Loss on firm purchase commitments $ — $ 71,000 $ 1,394,000 $ 535,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — $ — $ 74,000 Total loss on lower of cost or net realizable value adjustments $ — $ 71,000 $ 1,394,000 $ 609,000 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 Totals 2025 $ 2,127,700 2026 2,229,313 2027 2,335,215 2028 2,446,147 2029 2,562,348 Thereafter 8,481,505 Total $ 20,182,228 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and September 30, 2023, respectively. Fair Value Measurement Using Carrying Amount as of June 30, 2024 (unaudited) Fair Value as of June 30, 2024 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 684,238 $ 684,238 $ 684,238 $ — $ — Total $ 684,238 $ 684,238 $ 684,238 $ — $ — 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) | 9 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Equipment under financing leases consists of office equipment and plant equipment. At June 30, 2024 and September 30, 2023, equipment under financing leases was as follows: June 30, 2024 September 30, 2023 Equipment $ 493,414 $ 493,414 Less accumulated amortization (260,861) (243,277) Net equipment under financing lease $ 232,553 $ 250,137 |
Schedule of Future Minimum Payments for Capital Leases | At June 30, 2024, 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 $ 374,508 $ 1,836 2025 402,203 — 2026 406,657 — 2027 395,390 — 2028 259,230 — Total minimum lease commitments $ 1,837,988 1,836 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 1,836 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Significant related party activity affecting the financial statements is as follows: June 30, 2024 September 30, 2023 Balance Sheet Accounts receivable $ 2,475,162 $ 6,939,350 Accounts payable 275,611 1,299,333 For the three months ended June 30, 2024 (unaudited) For the three months ended June 30, 2023 (unaudited) For the nine months ended June 30, 2024 (unaudited) For the nine months ended June 30, 2023 (unaudited) Statement of Operations Revenues $ 33,042,103 $ 47,556,566 $ 139,085,302 $ 137,492,078 Cost of goods sold 749,101 674,171 3,120,136 2,688,422 General and administrative — — — 39,889 Inventory Purchases $ 3,800,078 $ 6,248,650 $ 27,523,669 $ 26,714,488 |
Member's Equity (Tables)
Member's Equity (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Member's Equity | Changes in member's equity for the nine months ended June 30, 2024 and 2023. 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 Distribution — — (56,015) — (56,015) Net (loss) — — (6,406,145) — (6,406,145) Balances - March 31, 2024 $ 39,044,595 $ 75,541 $ 34,086,272 $ (159,540) $ 73,046,868 Distribution — — — — — Net income — — 3,805,053 — 3,805,053 Balances - June 30, 2024 $ 39,044,595 $ 75,541 $ 37,891,325 $ (159,540) $ 76,851,921 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 Distribution — — (6,024,235) — (6,024,235) Net income — — (799,450) — (799,450) Balances - March 31, 2023 $ 39,044,595 $ 75,541 $ 41,922,069 $ (159,540) $ 80,882,665 Distribution $0.10 per unit — — (2,006,423) — (2,006,423) Net income — — 136,250 — 136,250 Balances - June 30, 2023 $ 39,044,595 $ 75,541 $ 40,051,896 $ (159,540) $ 79,012,492 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Nature of Business (Details) gal in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) gal | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Product Information [Line Items] | ||||||
Net cash provided by operating activities | $ 2,984,304 | $ 2,244,426 | ||||
Cash, cash equivalents and restricted cash | $ 7,724,390 | $ 8,733,100 | 7,724,390 | 8,733,100 | $ 14,551,103 | $ 11,152,015 |
Loss on firm purchase commitments | $ 0 | $ 71,000 | $ 1,394,000 | $ 535,000 | ||
Ethanol | ||||||
Product Information [Line Items] | ||||||
Annual production capacity | gal | 50 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | $ 34,578,254 | $ 49,690,760 | $ 112,069,256 | $ 148,820,592 | ||
Accounts receivable, primarily related party | 2,836,519 | 7,657,890 | 2,836,519 | 7,657,890 | $ 7,669,441 | |
Other Liabilities, Current | 11,078 | 46,593 | 11,078 | 46,593 | 38,294 | $ 10,636 |
Sieve Bottle | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Accounts receivable, primarily related party | $ 7,669,441 | $ 4,879,011 | ||||
Ethanol, E85 and Industrial Alcohol | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 26,459,827 | 38,727,252 | 82,589,455 | 111,546,165 | ||
Distillers Grains | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 5,772,019 | 8,572,529 | 21,214,955 | 28,780,739 | ||
Syrup | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 139,269 | 140,032 | 433,056 | 512,350 | ||
Corn Oil | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 2,159,064 | 2,208,059 | 7,668,057 | 7,831,189 | ||
NDGI Inspection Fee | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | $ 48,075 | $ 42,888 | $ 163,733 | $ 150,149 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Contracts (Details) | Jun. 30, 2024 contract | Jun. 30, 2024 bu | Jun. 30, 2024 USD ($) | Jun. 30, 2024 gal | Jun. 30, 2024 dth | Sep. 30, 2023 USD ($) gal bu contract dth |
Commodity Contract | Commodity | ||||||
Derivative [Line Items] | ||||||
Liabilities | $ (684,237) | $ 0 | ||||
Corn | Corn options | ||||||
Derivative [Line Items] | ||||||
Number of Contracts | contract | 932 | 0 | ||||
Notional Amount (Qty) | 4,660,000 | 500,000 | 0 | |||
Liabilities | (597,237) | $ 0 | ||||
Natural Gas [Member] | Corn options | ||||||
Derivative [Line Items] | ||||||
Number of Contracts | contract | 50 | 0 | ||||
Notional Amount (Qty) | dth | 0 | |||||
Liabilities | (67,500) | $ 0 | ||||
Soybean Oil | Corn options | ||||||
Derivative [Line Items] | ||||||
Number of Contracts | contract | 100 | 0 | ||||
Notional Amount (Qty) | gal | 10,000 | 0 | ||||
Liabilities | $ (19,500) | $ 0 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) | Jun. 30, 2024 | Sep. 30, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 |
Derivative Liability, Fair Value, Gross Liability | (684,237) | 0 |
Fair Value | 0 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ (684,237) | $ 0 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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 | |||
Not Designated as Hedging Instrument | Corn | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (1,975,563) | $ 675,471 | $ (151,029) | $ 987,956 |
Not Designated as Hedging Instrument | Ethanol | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 56,750 | 570 | 56,750 | 21,999 |
Not Designated as Hedging Instrument | Natural gas | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 13,990 | 45,610 | 702,660 | 74,000 |
Not Designated as Hedging Instrument | Commodity Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (1,904,823) | $ 721,651 | $ 608,381 | $ 1,083,955 |
- Narrative (Details)
- Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |||||
Raw materials, including corn, chemicals and supplies | $ 4,111,374 | $ 4,111,374 | $ 4,263,403 | ||
Work in process | 1,129,510 | 1,129,510 | 1,435,905 | ||
Finished goods, including ethanol and distillers grains | 4,166,194 | 4,166,194 | 1,918,439 | ||
Spare parts | 2,587,129 | 2,587,129 | 1,482,198 | ||
Inventory | 11,994,207 | 11,994,207 | $ 9,099,945 | ||
Loss on firm purchase commitments | $ 0 | $ 71,000 | $ 1,394,000 | $ 535,000 |
Inventory - Total Loss on Lower
Inventory - Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | ||||
Loss on firm purchase commitments | $ 0 | $ 71,000 | $ 1,394,000 | $ 535,000 |
Lower of cost or market inventory adjustment | 0 | 0 | 0 | 74,000 |
Total loss on lower of cost or market adjustments | $ 0 | $ 71,000 | $ 1,394,000 | $ 609,000 |
Bank Financing - Narrative (Det
Bank Financing - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Dec. 03, 2021 | Jun. 30, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | Feb. 03, 2022 | Jul. 13, 2020 | |
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 20,182,228 | $ 20,182,228 | ||||
Long-Term Debt, Maturity, Year One | 2,127,700 | 2,127,700 | ||||
Long-Term Debt, Maturity, Year Two | 2,229,313 | 2,229,313 | ||||
Long-Term Debt, Maturity, Year Three | 2,335,215 | 2,335,215 | ||||
Long-Term Debt, Maturity, Year Four | 2,446,147 | 2,446,147 | ||||
Long-Term Debt, Maturity, Year Five | 2,562,348 | 2,562,348 | ||||
Long-Term Debt, Maturity, after Year Five | 8,481,505 | 8,481,505 | ||||
Revolving loan | Revolving loan | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | $ 10,000,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 7.50% | 7.50% | ||||
Bank of North Dakota Ethanol Recovery Progrm | (3.75%) | (3.75%) | ||||
Bank of North Dakota Ethanol Recovery Program, Rate after Buy Down | 1% | |||||
Long term debt, revolving loan | $ 10,000,000 | |||||
Debt Instrument, Basis Spread on Variable Rate | 25% | |||||
Debt Instrument, Interest Rate, Stated Percentage | 750% | 750% | ||||
Revolving loan | Construction Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 25,000,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 4.65% | 4.65% | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 20,000,000 | $ 20,000,000 | ||||
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 | 0 | 0 | $ 306,000 | |||
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 | $ 15 | ||||
Line of Credit Facility, Interest Rate at Period End | 100% | 100% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Assets - USD ($) | Jun. 30, 2024 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | $ 684,238 | $ 0 |
Liabilities | 684,238 | 0 |
Financial Instruments, Owned, Physical Commodities At Carrying Amount | 684,238 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Carrying Amount | 684,238 | 0 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 684,238 | 0 |
Liabilities | 684,238 | 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 ($) | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Capital Leased Assets [Line Items] | |||
Discount rate (percentage) | 7.50% | ||
Operating Leased Assets [Line Items] | |||
Current Year | $ 374,508 | ||
Year One | 402,203 | ||
Year Two | 406,657 | ||
Year Three | 395,390 | ||
Year Four | 259,230 | ||
Total minimum lease commitments | 1,837,988 | ||
Current Year | 1,836 | ||
Year One | 0 | ||
Year Two | 0 | ||
Year Three | 0 | ||
Year Four | 0 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 0 | ||
Total minimum lease commitments | 1,836 | ||
Finance Lease, Liability | $ 1,836 | ||
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 | 260,861 | 243,277 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | 232,553 | $ 250,137 | |
Transportation Equipment | |||
Capital Leased Assets [Line Items] | |||
Rent expense for operating leases | $ 605,000 | $ 747,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, gal in Millions, bu in Millions | 9 Months Ended | ||
Nov. 01, 2016 USD ($) $ / shares shares | Oct. 11, 2016 | Jun. 30, 2024 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 | 8.2 | ||
Commitments | $ 27,900,000 | ||
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 | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Revenues, primarily related party | $ 34,578,254 | $ 49,690,760 | $ 112,069,256 | $ 148,820,593 | |
Cost of Goods and Services Sold | 29,283,620 | 48,038,330 | 108,595,453 | 142,816,229 | |
General and Administrative Expenses | 1,231,379 | 1,310,476 | 3,819,594 | 4,098,939 | |
Inventory Purchases | 27,523,669 | 26,714,488 | |||
Inventories | |||||
Related Party Transaction [Line Items] | |||||
Inventory Purchases | 3,800,078 | 6,248,650 | |||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Receivables, Fair Value Disclosure | 2,475,162 | 2,475,162 | $ 6,939,350 | ||
Accounts Payable | 275,611 | 275,611 | $ 1,299,333 | ||
Revenues, primarily related party | 33,042,103 | 47,556,566 | 139,085,302 | 137,492,078 | |
Cost of Goods and Services Sold | 749,101 | 674,171 | 3,120,136 | 2,688,422 | |
General and Administrative Expenses | $ 0 | $ 0 | $ 0 | $ 39,889 |
Member's Equity - Schedule of C
Member's Equity - Schedule of Changes in Member's Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Beginning balance | $ 73,046,868 | $ 79,509,028 | $ 83,371,732 | $ 80,882,665 | $ 87,706,350 | $ 85,841,135 | $ 83,371,732 | $ 85,841,135 | ||
Net income | 3,805,053 | (6,406,145) | 2,160,515 | 136,250 | (799,450) | 1,865,215 | (440,576) | 1,202,015 | ||
Ending balance | 76,851,921 | 73,046,868 | 79,509,028 | 79,012,492 | 80,882,665 | 87,706,350 | 76,851,921 | 79,012,492 | ||
Distributed Earnings | 0 | (56,015) | (6,023,219) | (2,006,423) | (6,024,235) | |||||
Class A Member Units | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Beginning balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | ||
Net income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | ||
Distributed Earnings | 0 | 0 | 0 | 0 | 0 | |||||
Additional Paid in Capital | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Beginning balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | ||
Net income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | ||
Distributed Earnings | 0 | 0 | 0 | 0 | 0 | |||||
Accumulated Deficit/Retained Earnings | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Beginning balance | 34,086,272 | 40,548,432 | 44,411,136 | 41,922,069 | 48,745,754 | 46,880,539 | 44,411,136 | 46,880,539 | ||
Net income | 3,805,053 | (6,406,145) | 2,160,515 | 136,250 | (799,450) | 1,865,215 | ||||
Ending balance | 37,891,325 | 34,086,272 | 40,548,432 | 40,051,896 | 41,922,069 | 48,745,754 | 37,891,325 | 40,051,896 | ||
Distributed Earnings | 0 | (56,015) | 6,023,219 | (2,006,423) | (6,024,235) | |||||
Member Units | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Distributed Earnings | 0 | 0 | 0 | 0 | 0 | |||||
Treasury Stock, Value | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) |
Uncategorized Items - rte-20240
Label | Element | Value |
Payments to Acquire Equipment on Lease | us-gaap_PaymentsToAcquireEquipmentOnLease | $ 0 |
Payments to Acquire Equipment on Lease | us-gaap_PaymentsToAcquireEquipmentOnLease | $ 1,620,653 |