| Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less when purchased to be cash equivalents. Concentration of Credit Risk The Company’s cash balances are maintained in bank deposit accounts which at times may exceed federally-insured limits. The Company has not experienced any losses in such accounts. Restatement The Company has applied SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. SAB No. 108 states that registrants must quantify the impact of correcting all misstatements, including both the carryover (iron curtain method) and reversing (rollover method) effects of prior year misstatements on the current-year financial statements, and by evaluating the error measured under each method in light of quantitative and qualitative factors. Under SAB No. 108, prior year misstatements which, if corrected in the current year would be material to the current year, must be corrected by adjusting prior year financial statements. In applying the requirements of SAB No. 108, the Company adjusted its repairs and maintenance accruals, which were understated, with respect to the tank cars and hopper cars the Company was leasing. The Company should have been booking a provision for repairs necessary to return the cars to the lessor in "normal" status. Since the lease was initiated in March of 2009, with a lease end date of March of 2019, adjustments to previous periods were required. Although the charges in any one quarter were not significant, the historical financial statements were restated with all appropriate entries being retrospectively reflected in the financial statements. The Audit Committee of the Board of Directors of the Company concluded the interim unaudited condensed financial statements for the quarters ending in Fiscal 2018 and Fiscal 2019, as well as the audited annual financial statement for Fiscal 2018 needed to be restated. In Fiscal 2019, the repair and maintenance charges were identified and the original estimate was included in the Second Quarter ending March 31, 2019 for the quarter and year-to-date, as well as comparative quarterly Fiscal 2018 financial information. In the Fourth Quarter ending September 30, 2019, the Company discovered that the original estimated accrual per railcar was in error, and flowed through an additional amount per quarter starting in 2009 forward. The error corrections for the financial statements are included in the charts below. The quarterly information for each three month period in Fiscal 2018 need to be restated, as well as the annual total. In Fiscal 2019, the first quarter needed to be restated, while the second and third quarter were amended to correct the original estimate. The year end statement had not been filed, so the values presented for September 30, 2019, are the final, adjusted numbers. As of September 30, 2018, the impact of the restatement on the balance sheet to the audited financial statements was $5.4 million . Fiscal 2018 - Annual Original Restated Increase Amounts in 000's September 30, 2018 September 30, 2018 (Decrease) Revenues 214,990 214,990 — Cost of Goods Sold 210,783 211,350 567 Gross Margin 4,207 3,640 (567 ) General and administrative expenses 4,972 4,972 — Interest expense and other income, net 1,372 1,372 — Net (Loss) (2,137 ) (2,704 ) (567 ) Net (Loss) per unit basic $ (160.35 ) $ (202.9 ) $ (42.55 ) Net (Loss) per unit diluted $ (160.35 ) $ (202.9 ) $ (42.55 ) ASSETS Current Assets Cash & cash equivalents 1,440 1,440 — Accounts receivable 12,672 12,672 — Inventory 13,526 13,526 — Other current assets 1,387 1,387 — Total Current Assets 29,025 29,025 — Net property, plant and equipment 111,868 111,868 — Other assets 1,738 1,738 — Total Assets 142,631 142,631 — LIABILITIES AND MEMBERS' EQUITY Current Liabilities Accounts payable, derivative financial instruments and accrued expenses 12,147 12,147 — Current maturities of notes payable 6,560 6,560 — Total Current Liabilities 18,707 18,707 — Total Long Term Liabilities 20,733 26,122 5,389 Members' Capital 87,165 87,165 — Accumulated Earnings 16,026 10,637 (5,389 ) Total Liabilities and Members' Equity 142,631 142,631 — Fiscal 2018 - Quarterly Original Restated Original Restated Amounts in 000's December 31, 2017 December 31, 2017 March 31, 2018 March 31, 2018 Revenues 50,546 50,546 53,551 53,551 Cost of Goods Sold 47,838 47,980 53,195 53,337 Gross Margin 2,708 2,566 356 214 General and administrative expenses 1,378 1,378 1,056 1,056 Interest expense and other income, net 149 149 135 135 Net Income (Loss) 1,181 1,039 (835 ) (977 ) Net Income (Loss) per unit basic $ 88.62 $ 77.96 $ (62.65 ) $ (73.31 ) Net Income (Loss) per unit diluted $ 82.09 $ 72.22 $ (62.65 ) $ (73.31 ) Original Restated Original Restated December 31, 2017 December 31, 2017 March 31, 2018 March 31, 2018 ASSETS Current Assets Cash & cash equivalents 2,489 2,489 1,275 1,275 Accounts receivable 11,601 11,601 12,945 12,945 Inventory 13,176 13,176 13,176 13,176 Other current assets 1,204 1,204 1,531 1,531 Total Current Assets 28,470 28,470 28,927 28,927 Net property, plant and equipment 115,237 115,237 114,655 114,655 Other assets 2,101 2,101 2,107 2,107 Total Assets 145,808 145,808 145,689 145,689 LIABILITIES AND MEMBERS' EQUITY Current Liabilities Accounts payable, derivative financial instruments and accrued expenses 21,250 21,250 7,108 7,108 Current maturities of notes payable 5,043 5,043 6,549 6,549 Total Current Liabilities 26,293 26,293 13,657 13,657 Total Long Term Liabilities 13,007 17,971 26,358 31,464 Members' Capital 87,165 87,165 87,165 87,165 Accumulated Earnings 19,343 14,379 18,509 13,403 Total Liabilities and Members' Equity 145,808 145,808 145,689 145,689 Fiscal 2018 - Quarterly Original Restated Amounts in 000's June 30, 2018 June 30, 2018 Revenues 53,611 53,611 Cost of Goods Sold 54,782 54,924 Gross Margin (Loss) (1,171 ) (1,313 ) General and administrative expenses 1,809 1,809 Interest expense and other income, net 265 265 Net (Loss) (3,245 ) (3,387 ) Net (Loss) per unit basic $ (243.49 ) $ (254.15 ) Net (Loss) per unit diluted $ (243.49 ) $ (254.15 ) Original Restated June 30, 2018 June 30, 2018 ASSETS Current Assets Cash & cash equivalents 1,207 1,207 Accounts receivable 14,584 14,584 Inventory 13,547 13,547 Other current assets 902 902 Total Current Assets 30,240 30,240 Net property, plant and equipment 113,729 113,729 Other assets 2,102 2,102 Total Assets 146,071 146,071 LIABILITIES AND MEMBERS' EQUITY Current Liabilities Accounts payable, derivative financial instruments and accrued expenses 11,569 11,569 Current maturities of notes payable 6,554 6,554 Total Current Liabilities 18,123 18,123 Total Long Term Liabilities 25,519 30,767 Members' Capital 87,165 87,165 Accumulated Earnings 15,264 10,016 Total Liabilities and Members' Equity 146,071 146,071 Fiscal 2019 - Quarterly Original Restated Original Restated Amounts in 000's December 31, 2018 December 31, 2018 March 31, 2019 March 31, 2019 Revenues 53,382 53,382 53,190 53,190 Cost of Goods Sold 52,878 53,020 53,568 53,617 Gross Margin (Loss) 504 362 (378 ) (427 ) General and administrative expenses 1,502 1,502 1,174 1,174 Interest expense and other income, net 169 169 215 215 Net (Loss) (1,167 ) (1,309 ) (1,767 ) (1,816 ) Net (Loss) per unit basic $ (87.57 ) $ (98.22 ) $ (132.59 ) $ (136.26 ) Net (Loss) per unit diluted $ (87.57 ) $ (98.22 ) $ (132.59 ) $ (136.26 ) Original Restated Original Restated December 31, 2018 December 31, 2018 March 31, 2019 March 31, 2019 ASSETS Current Assets Cash & cash equivalents 1,042 1,042 1,101 1,101 Accounts receivable 9,909 9,909 9,776 9,776 Inventory 13,650 13,650 17,278 17,278 Other current assets 1,164 1,164 1,533 1,533 Total Current Assets 25,765 25,765 29,688 29,688 Net property, plant and equipment 109,714 109,714 107,697 107,697 Other assets 1,738 1,738 1,447 1,447 Total Assets 137,217 137,217 138,832 138,832 LIABILITIES AND MEMBERS' EQUITY Current Liabilities Accounts payable, derivative financial instruments and accrued expenses 17,110 17,964 9,850 11,650 Current maturities of notes payable 5,065 5,065 3,571 3,571 Total Current Liabilities 22,175 23,029 13,421 15,221 Total Long Term Liabilities 13,018 17,695 28,803 32,583 Members' Capital 87,165 87,165 87,165 87,165 Accumulated Earnings 14,859 9,328 9,443 3,863 Total Liabilities and Members' Equity 137,217 137,217 138,832 138,832 Fiscal 2019 - Quarterly Original Restated Amounts in 000's June 30, 2019 June 30, 2019 Revenues 53,505 53,505 Cost of Goods Sold 52,903 52,903 Gross Margin 602 602 General and administrative expenses 1,061 1,061 Interest expense and other income, net 292 292 Net (Loss) (751 ) (751 ) Net (Loss) per unit basic $ (56.35 ) $ (56.35 ) Net (Loss) per unit diluted $ (56.35 ) $ (56.35 ) Original Restated June 30, 2019 June 30, 2019 ASSETS Current Assets Cash & cash equivalents 1,076 1,076 Accounts receivable 7,636 7,636 Inventory 19,848 19,848 Other current assets 3,996 3,996 Total Current Assets 32,556 32,556 Net property, plant and equipment 109,957 109,957 Other assets 1,447 1,447 Total Assets 143,960 143,960 LIABILITIES AND MEMBERS' EQUITY Current Liabilities Accounts payable, derivative financial instruments and accrued expenses 15,887 17,687 Current maturities of notes payable 2,077 2,077 Total Current Liabilities 17,964 19,764 Total Long Term Liabilities 30,139 33,919 Members' Capital 87,165 87,165 Accumulated Earnings 8,692 3,112 Total Liabilities and Members' Equity 143,960 143,960 Revenue Recognition The Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) on October 1, 2018. Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the considerations the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from the contracts with customers. The Company applied the five-step method outlined in the ASU to all contracts with customers, and elected the modified retrospective implementation method. The new revenue standard did not have an impact on the Company's financial statements. The Company sells ethanol and related products pursuant to marketing agreements. Revenues are recognized when the risk of loss has been transferred to the marketing company and the marketing company has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. The Company’s products are generally shipped FOB loading point, and recorded as a sale upon delivery of the applicable bill of lading and transfer of risk of loss. The Company’s ethanol sales are handled through an ethanol purchase agreement (the “ Ethanol Agreement ”) with Bunge North America, Inc. (“ Bunge ”). Syrup and distillers grains (co-products) are sold through a distillers grains agreement (the “ DG Agreement ”) with Bunge, based on market prices. The Company markets and distributes all of the corn oil it produces directly to end users at market prices. Carbon dioxide is sold through a Carbon Dioxide Purchase and Sale Agreement (the “ CO2 Agreemen t”) with Air Products and Chemicals, Inc., formerly known as EPCO Carbon Dioxide Products, Inc. (" Air Products ”). Marketing fees, agency fees, and commissions due to the marketer are calculated separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold. Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold. Accounts Receivable Accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers’ financial condition, credit history and current economic conditions. As of September 30, 2019 and 2018 , management had determined no allowance is necessary. Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received. Risks and Uncertainties The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. 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 with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Investment in Commodities Contracts, Derivative Instruments and Hedging Activities The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products. Exposure to commodity price risk results from its dependence on corn in the ethanol production process. In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions. This is especially true when market conditions do not allow the Company to pass along increased corn costs to customers. The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol and distillers grains purchase and sales contracts, over-the-counter and exchange-trade futures and option contracts. When the Company has sufficient working capital available, it enters into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts. Management has evaluated the Company’s contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Gains and losses on contracts that are designated as normal purchases or normal sales contracts are not recognized until quantities are delivered or utilized in production. The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of September 30, 2019 , the Company had commitments to sell 3.0 million gallons of ethanol , 89 thousand tons of dried distillers grains, 72 thousand tons of wet distillers grains and 4.3 million pounds of corn oil. Corn purchase contracts are treated as derivative financial instruments. Changes in fair value of forward corn contracts, which are marked to market each period, are included in costs of goods sold. As of September 30, 2019 , the Company was committed to purchasing 3.6 million bushels of corn on a forward contract basis resulting in a total commitment of $14.6 million . In addition the Company was committed to purchasing 311 thousand bushels of corn using basis contracts. In addition, the Company enters into short-term cash, options and futures contracts as a means of managing exposure to changes in commodity prices. The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations. The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility. The Company’s specific goal is to protect itself from large moves in commodity costs. All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value. Although the contracts are considered effective economic hedges of specified risks, they are not designated as or accounted for as hedging instruments. Derivatives not designated as hedging instruments along with cash due to brokers at September 30, 2019 and 2018 are as follows: Balance Sheet Classification September 30, 2019 September 30, 2018 in 000's in 000's Futures and option contracts In gain position $ 368 $ 583 In loss position (364 ) (82 ) Cash held by broker 74 545 Current asset 78 1,046 Forward contracts, corn Current liability 597 1,567 Net futures, options, and forward contracts $ (519 ) $ (521 ) The net realized and unrealized gains and losses on the Company’s derivative contracts for the years ended September 30, 2019 and 2018 consist of the following: Statement of Operations Classification September 30, 2019 September 30, 2018 Net realized and unrealized (gains) losses related to: (in 000's) (in 000's) Forward purchase contracts (corn) Cost of Goods Sold $ (1,530 ) $ 1,894 Futures and option contracts (corn) Cost of Goods Sold (1,295 ) (3,568 ) Inventory Inventory is stated at the lower of average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings 40 Years Process Equipment 10 - 20 Years Office Equipment 3-7 Years Maintenance and repairs are charged to expense as incurred; major improvements are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from operations are less than the carrying value of the asset group. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds the fair value of the asset. Management has determined there were no events or changes in circumstances that required an impairment evaluation during Fiscal 2019 or Fiscal 2018 . Income Taxes The Company has elected to be treated as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, derivative financial instruments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short term nature of these instruments. The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. On August 16, 2019, ICM notified SIRE of their intent to exercise the put option on their 1,018 units, but waived their right to determine the fair market value for their units. SIRE calculated the liability by utilizing the weighted average purchase prices for Fiscal 2019 transactions. In past years, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation. The change to the valuation methodology was made because the parameters of risk free interest rate, expected volatility, expected life and estimated exercise price no longer were applicable. Using weighted average sale prices for Fiscal 2019, the estimated value at September 30, 2019 was $6.0 million , while the Monte Carlo method calculated $5.4 million at September 30, 2018. The Company bought the Series A and Series C Units held by ICM back for a total price of $11.1 million based on the exercise price outlined in the agreement. Equity was reduced by $5.1 million , and the accrued put option liability of $6.0 million was satisfied. (see Note 11) The carrying amount of the notes payable approximates fair value, as the interest rate is a floating rate. The terms are consistent with those available in the market as of September 30, 2019 and 2018 , using level 3 inputs. Income Per Unit Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. In Fiscal 2019 , the put option did not impact diluted income per unit as it was anti-dilutive. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data): Twelve Months Ended September 30, 2019 September 30, 2018 Numerator: Net (loss) for basic earnings per unit $ (8,497 ) $ (2,704 ) Change in fair value of put option liability $ 637 $ (300 ) Net (loss) for diluted earnings per unit $ (7,860 ) $ (3,004 ) Denominator: Weighted average units outstanding - basic 13,327 13,327 Weighted average units outstanding - diluted 13,327 13,327 (Loss) per unit - basic $ (637.58 ) $ (202.90 ) (Loss) per unit - diluted $ (637.58 ) $ (202.90 ) Recently Issued Accounting Pronouncements Leases In February 2016, FASB issued ASU 2016-02 "Leases” (" ASU 2016-02 "). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. We implemented ASU 2016-02 in October 2019, when Fiscal 2020 started. The Company will include a right to use assets for approximately $8.2 million and a corresponding liability at the start of the next fiscal year for the operating leases. |
