SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



x	Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the fiscal year ended		December 31, ~~2017~~2020

o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Commission file number		000-53202

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Website, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated ~~filer"~~filer," "smaller reporting company," and ~~"smaller reporting~~"emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

(Do not check if a smaller reporting company)

Emerging Growth Company

~~Large accelerated filer~~

~~Accelerated filer~~

~~Non-accelerated filer~~

~~Smaller reporting company~~

~~(Do not check if a smaller reporting company)~~

~~Emerging Growth Company~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). o Yes x No

As of June 30, ~~2017~~,2020, the aggregate market value of the membership units held by non-affiliates (computed by reference to the most recent offering price of membership units) was ~~$56,777,000.~~$56,803,000.

As of March ~~2, 2018~~,11, 2021, there were ~~90,445~~64,560 membership units outstanding. On June 13, 2013, the registrant entered into an agreement with Steve Retterath, the registrant's largest equity holder, to repurchase and retire all of the units owned by Mr. Retterath. The registrant agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million. The registrant believes that it has a binding agreement with Mr. Retterath. Mr. Retterath contends he is not bound by the agreement. The registrant's position is that, as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the registrant. As a result, the registrant has recorded a $30 million short-term liability related to the amount the registrant agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on our balance sheet. The 90,445 membership units outstanding include the contested membership units the registrant agreed to repurchase from Mr. Retterath.

DOCUMENTS INCORPORATED BY REFERENCE

The registrant has incorporated by reference into Part III of this Annual Report on Form 10-K portions of its definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year covered by this Annual Report.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This annual report contains historical information, as well as forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance, or our expected future operations and actions. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "future," "intend," "could," "hope," "predict," "target," "potential," or "continue" or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions based on current information and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the reasons described in this report. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include:

•A slowdown in global and regional economic activity, demand for our products and the potential for labor shortages and shipping disruptions resulting from pandemics including COVID-19;

•Reductions in the corn-based ethanol use requirement in the Federal Renewable Fuels Standard;

•Lower oil and gasoline prices which result in lower ethanol prices;

•Competition from electric cars;

•Negative operating margins which result from lower ethanol prices;

•Lower ethanol prices which result from the Chinese and Brazilian tariffs;

•Lower distillers grains prices which result from the Chinese anti-dumping and anti-subsidy duties;

~~The impact of lower gasoline prices on ethanol prices and demand;~~

•Decreases in the market price of ethanol, distiller grains and corn oil;

•Changes in economic conditions or the occurrence of certain events causing an economic impact in the agriculture, oil or automobile industries;

•Our ability to continue to satisfy the financial covenants contained in our credit agreements with our lender;

•Changes in interest rates or the lack of credit availability;

•Our ability to generate sufficient liquidity to fund our operations, debt service requirements and capital expenditures;

•The results of our hedging transactions and other risk management strategies;

•Changes in plant production capacity or technical difficulties in operating the plant;

•Changes in environmental regulations or in our ability to comply with the environmental regulations that apply to our plant site and our operations;

•Changes in or elimination of federal and/or state laws having an impact on the ethanol industry;

•Overcapacity within the ethanol industry;

•Lack of transport, storage and blending infrastructure preventing our products from reaching high demand markets;

•Changes and advances in ethanol production technology that may make it more difficult for us to compete with other ethanol plants utilizing such technology;

•Our reliance on key management personnel; and

•Competition in the ethanol industry from alternative fuels.

The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or any persons acting on our behalf. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report. You should read this report and the documents that we reference in this report and have filed as exhibits, completely and with the understanding that our actual future results may be materially different from what we currently expect. We qualify all of our forward-looking statements by these cautionary statements.

AVAILABLE INFORMATION

Information about us is also available on our website at www.homelandenergysolutions.com, under "Investor Relations - SEC Filings," which includes links to reports we have filed with the Securities and Exchange Commission. The contents of our website are not incorporated by reference in this Annual Report on Form 10-K.

Business Development

Homeland Energy Solutions, LLC (referred to herein as "we," "us," the "Company," "Homeland" or "Homeland Energy Solutions") is an Iowa limited liability company. We were formed on December 7, 2005 to build and operate a 100 million gallon per year ethanol plant located near Lawler, Iowa. The primary products produced at the plant are ethanol, distiller grains and corn

On June 13, 2013, we entered into an agreement with Steve Retterath, our largest member, to repurchase and retire all of the units owned by Mr. Retterath. We agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments, payable at closing and on July 1, 2014. The transaction failed to close by August 1, 2013 due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, the Company filed a lawsuit against Mr. Retterath in Iowa state court to enforce the terms ofWe completed the repurchase ~~agreement. The Company asked the Iowa state court to require~~of Mr. ~~Retterath to complete the repurchase agreement pursuant to its terms.~~Retterath's units in April 2020.

In January 2017, we went to trial with Mr. Retterath on the first part of the Iowa state court case regarding whether the repurchase agreement is valid and enforceable. On June 15, 2017, the Iowa state court issued its ruling finding the repurchase agreement valid and enforceable and ordering Mr. Retterath to perform his obligations under the repurchase agreement. Following the Iowa state court's decision, Mr. Retterath filed post-trial motions in which he asked the court to reconsider its decision and grant a new trial and requested the court stay its order until these motions are considered. The Iowa state court granted the stay pending resolution of the post-trial motions.

Details of the Company's lawsuit against Mr. Retterath are provided below in the section entitled "PART I - Item 3. Legal Proceedings."

OnIn December ~~21, 2016,~~2020, we completed construction and commenced startup of our ~~board of directors approved~~industrial alcohol production equipment. Industrial alcohol that meets certain purity tests and can be used in products such as hand sanitizer and other disinfectant products. Industrial alcohol is not denatured with gasoline like the fuel ethanol we produce. We expect to be able to sell industrial grade alcohol for a ~~plan to expand~~premium over the price we receive for our ethanol production facility by approximately 35 million gallons of ethanol production per year. The expansion project was substantially completed during our 2017 fiscal year. All expectations for the next twelve months include the expected increased annual capacity of 35 million gallons.fuel grade ethanol.

On June 29, 2017, we entered into a new $30 million term loan (the "Term Loan") and increased and extended our existing revolving loan (the "Revolving Loan") with Home Federal Savings Bank ("Home Federal").

On February ~~15, 2018,~~7, 2019 we executed ana second amended and restated consulting agreement with Cornerstone Resources LLC (the "Cornerstone Agreement"). Pursuant to the Cornerstone Agreement, Cornerstone Resources provides the services of James Broghammer to serve as the President and CEO of the Company. Pursuant to the Cornerstone Agreement, the engagement of Cornerstone Resources will continue until December 31, ~~2018~~2021 unless it is earlier terminated. Thereafter, the Cornerstone Agreement will continue on a month-to-month basis. Cornerstone Resources will be compensated on a flat fee basis per day of services provided. Cornerstone Resources is entitled to reimbursement of certain out of pocket expenses incurred pursuant to the Cornerstone Agreement. Mr. Broghammer is entitled to a bonus based on our net income pursuant to the restrictions set forth in the Cornerstone Agreement.

During our ~~2017~~2020 fiscal year, we paid ~~two distributions~~one distribution for a total distribution of ~~$16,469,175 paid to the holders of 64,585 membership units~~$9,684,000, which ~~equals $255~~equaled $150 per membership ~~unit.~~unit, paid in December 2020.

The ethanol industry experienced industry-wide record low ethanol prices throughout most of 2018 and 2019 due to reduced demand and high industry inventory levels. This continued into 2020 and the situation was compounded by the crisis associated with the 2019 novel coronavirus disease (“COVID-19”). In response to these unfavorable operating conditions and a slowdown in global and regional economic activity and a disruption in transportation fuel demand resulting from the COVID-19 pandemic, we reduced our ethanol production rate early in 2020 which impacted our total ethanol production for our 2020 fiscal year.

Financial Information

Please refer to "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations" for information about our revenue, profit and loss measurements and total assets and liabilities and "Item 8 - Financial Statements and Supplementary Data" for our financial statements and supplementary data.

The principal products that we produce are ethanol, distiller grains and corn oil. The table below shows the approximate percentage of our total revenue which is attributed to each of our primary products for each of our last three fiscal years.

Product Fiscal Year 2017 Fiscal Year 2016 Fiscal Year 2015
Ethanol 81 % 79 % 75 %
Distiller Grains 14 % 17 % 22 %
Corn Oil 5 % 4 % 3 %

Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains. Ethanol is primarily used as: (i) an octane enhancer in fuels; (ii) an oxygenated fuel additive for the purpose of reducing ozone and carbon monoxide vehicle emissions; and (iii) a non-petroleum-based gasoline substitute. Ethanol produced in the United States is primarily used for blending with unleaded gasoline and other fuel products. Ethanol blended fuel is typically designated in the marketplace according to the percentage of the fuel that is ethanol, with the most common fuel blend being E10, which includes 10% ethanol. The United States Environmental Protection Agency ("EPA") has approved the use of gasoline blends that contain 15% ethanol, or E15, for use in all vehicles manufactured in model year 2001 and later. In addition, flexible fuel vehicles can use gasoline blends that contain up to 85% ethanol called E85.

Our ethanol plant uses corn as the feedstock in the ethanol production process. A corn-based ethanol plant is essentially a fermentation plant. Ground corn and water are mixed with enzymes and yeast to produce a substance called "beer," which contains approximately 15% alcohol, 11% solids and 74% water. The beer is boiled to separate the water, resulting in ethyl alcohol, which is then dehydrated to increase the alcohol content. This product is then mixed with a certified denaturant, such as gasoline, to make the product unfit for human consumption which allows it to be sold commercially.

Starting in our 2021 fiscal year, we anticipate selling industrial grade alcohol.

The principal co-product of the ethanol production process is distiller grains, a high protein, high-energy animal feed supplement primarily marketed to the dairy and beef industry. We produce two forms of distiller grains: Modified/Wet Distiller Grains ("MWDG") and Distiller Dried Grains with Solubles ("DDGS"). MWDG is processed corn mash that has been dried to approximately 50% moisture. MWDG has a shelf life of approximately seven days and is often sold to markets near our ethanol plant. DDGS is processed corn mash that has been dried to approximately 10% moisture. It has a longer shelf life and may be sold and shipped to any market, regardless of its vicinity to our ethanol plant. We market nearly all of our distiller grains as DDGS.

In October 2011, we commenced operating our corn oil extraction equipment. The corn oil extraction equipment we installed allows us to remove some of the corn oil contained in our distiller grains and sell the corn oil separately. The corn oil that we are capable of producing is not food grade corn-oil and it cannot be used for human consumption. The primary uses of the corn oil that we produce are for animal feed, industrial uses and biodiesel production.

Principal Product Markets

The primary market for our ethanol is the domestic fuel blending market. ~~However,~~Other than in 2019 and 2020, over recent years the United States has experienced increased ethanol exports. This increase in ethanol exports ~~follows~~followed a conscious effort by the United States ethanol industry to expand ethanol exports along with lower ethanol prices which encourage exports. During our ~~2017~~2020 fiscal year, exports of ethanol ~~have increased~~decreased, but with the top export destinations being Brazil, Canada, ~~Brazil,~~ India ~~China, South Korea, the Philippines~~ and ~~Peru. However, ethanol~~Mexico. Ethanol export demand is more unpredictable than domestic demand and tends to fluctuate throughout the year as it is subject to monetary and political forces in other nations. An example of this, the ~~recent~~ imposition of a tariff on imported ethanol by Brazil ~~has~~and increased tariffs implemented by China have created uncertainty as to the viability of ~~that market~~these markets for ethanol

produced in the United States and may require United States producers to seek out other markets for their products. ~~Also,~~The trade actions taken by other countries are unpredictable and can have a significant impact on domestic demand and prices as excess ethanol supply can significantly reduce domestic ethanol prices. The industry continues to look for new export markets in order to diversify demand for ethanol. Export demand has also decreased due to the ~~Chinese~~disruption in global fuel demand resulting from travel restrictions in response to the COVID-19 pandemic. Restricted travel, new lockdown measures and slow economic growth continue to have ~~imposed tariffs~~a negative effect on ~~imported ethanol, which management believes could negatively impact ethanol prices in the United States.~~global fuel consumption and it is unknown when such demand will recover as reopening efforts continue to evolve.

Ethanol is generally blended with gasoline before it is sold to the end consumer. Therefore, the primary purchasers of ethanol are fuel blending companies who mix the ethanol we produce with gasoline. As discussed below in the section entitled "Distribution of Principal Products," we have a third party marketer that sells all of our ethanol. Our ethanol marketer makes substantially all decisions regarding where our ethanol is sold.

Distiller grains are primarily used as animal feed. Distiller grains are typically fed to animals instead of other traditional animal feeds such as corn and soybean meal. Distiller grains exports have increased in recent years as distiller grains have become a more accepted animal feed. ~~The~~During our 2020 fiscal year, the largest importers of United States ~~ethanol industry exported a significant amount of distiller grains to Mexico, Turkey, South Korea, Thailand, China and Canada during our 2017 fiscal year. However, exports of~~ distiller grains were ~~negatively~~Mexico, China, Canada, Japan, Colombia and South Korea. Distiller grains demand has continued to be impacted by ~~the~~ Chinese tariffs on distiller ~~grains produced in~~grains. Historically, China was the largest export market for United States distiller grains. However, due to continuing trade tensions between the United States and China, management does not believe China will significantly increase its demand for distiller grains in the near term which ~~were finalized~~could impact profitability in ~~January 2017.~~the ethanol industry during 2021.

The primary markets for corn oil are the industrial chemicals market, animal feeding market and the biodiesel production market. Corn oil demand was ~~higher~~relatively stable during our ~~2017~~2020 fiscal ~~year due to increased demand from biodiesel.~~year. However, additional corn oil supply has continued to enter the market as the production capacity of the United States ethanol industry has expanded which has ~~negatively~~ impacted corn oil prices. The market for corn oil is expected to continue to shift as changes in supply and demand of corn oil interact. Our corn oil is primarily marketed in the United States and we do not expect that significant exports of corn oil will occur in the near future.

Distribution of Principal Products

We have hired third party marketers which are responsible for the distribution of all of the products we produce. Below is a description of the arrangements we have with our ethanol, distiller grains and corn oil marketers.

Ethanol Distribution

We have an ethanol marketing agreement with Renewable Products Marketing Group, Inc. ("RPMG"), a professional third party marketer, which is the sole marketer of our ethanol. RPMG also markets all of our corn oil. We are an equity owner of RPMG, LLC ("RPMG, LLC"), the parent company of RPMG, which allows us to realize favorable marketing fees and transparency in the sale of our ethanol and corn oil. Our ethanol marketing agreement provides we can sell our ethanol either through an index arrangement or at a fixed price agreed to between usRPMG and ~~RPMG.~~the Company. The term of the ethanol marketing agreement is perpetual, until it is terminated. The primary reasons the ethanol marketing agreement would terminate are if we cease to be an owner of RPMG, LLC, if there is a breach of the ethanol marketing agreement which is not cured, or if we give advance notice to RPMG that we wish to terminate the ethanol marketing agreement. Notwithstanding our right to terminate the ethanol marketing agreement, we may be obligated to continue to market our ethanol through RPMG for a period of time after termination. Further, following termination, we would accept an assignment of certain railcar leases which RPMG has secured to service our ethanol sales. If our ethanol marketing agreement is terminated, it would trigger a redemption by RPMG, LLC of our ownership interest in RPMG, LLC.

Distiller Grains Distribution

We have a Distiller Grains Marketing Agreement with CHS, Inc. ("CHS"), pursuant to which CHS agreed to purchase all of the distiller grains produced at our plant. The initial term of the distiller grains marketing agreement was one year, beginning with the start-up of operations and production at the plant. After the initial one-year term, the agreement automatically renews for successive one year terms unless either party gives 90 days written notice of termination before the current term expires.

CHS agreed to pay us 98% of the actual sale price received by CHS from its customers for DDGS sold and 96% of the actual sale price received by CHS for MWDG sold, subject to certain minimum and maximum fees per ton. CHS deducts the customary freight costs incurred by CHS in delivering the distiller grains to its customers from our portion of the distiller grains sale price.

Corn Oil Distribution

In July 2011, we entered into a Corn Oil Marketing Agreement with RPMG. We have an exclusive marketing arrangement with RPMG where it will market all of the corn oil that we produce. We agreed to pay RPMG a commission based on each pound of corn oil that RPMG sells on our behalf. We also agreed to pay certain costs associated with RPMG marketing our corn oil. The initial term of the corn oil marketing agreement is for one year and the agreement automatically renews for additional one year terms unless written notice is given, either by us or RPMG, at least ninety days prior to the expiration of the current term of the agreement.

New Products and Services

We did not introduce any new products or services during our ~~2017~~2020 fiscal year. Following the end of the 2020 fiscal year, we commenced production and sale of industrial grade alcohol.

We are in direct competition with numerous ethanol producers in the sale of our products and with respect to raw material purchases related to those products. Many of the ethanol producers with which we compete have greater resources than we do. While management believes we are a lower cost producer of ethanol, larger ethanol producers may be able to take advantage of

The following table identifies the largest ethanol producers in the United States along with their production capacities.

U.S. FUEL ETHANOL PRODUCTION CAPACITY

Producers of Approximately ~~700~~800

million gallons per year (MMgy) or more

Company
Current Capacity
(MMgy)
Percent of Market
Archer Daniels Midland 1,716 11%
POET Biorefining 1,629 10%
Valero Renewable Fuels 1,400 9%
Green Plains Renewable Energy 1,475 9%
Flint Hills Resources 840 5%
Updated: December 31, 2020

~~Updated:~~ ~~January 23, 2018~~

The products that we produce are commodities. Since our products are commodities, there are typically no significant differences between the products we produce and the products of our competitors that would allow us to distinguish our products in the market. As a result, competition in the ethanol industry is primarily based on price and consistent quality.

We have experienced increased competition from oil companies that have purchased ethanol production facilities. These oil companies are required to blend a certain amount of ethanol each year. Therefore, the oil companies may be able to operate their ethanol production facilities at times when it is unprofitable for us to operate our ethanol plant. Further, some ethanol producers own multiple ethanol plants which may allow them to compete more effectively by providing them flexibility to run certain production facilities while they have other facilities shut down. Finally, some ethanol producers ~~who~~which own

ethanol plants in ~~geographically diverse~~different areas of the United States may spread the risk they encounter related to feedstock prices due to localized corn shortages or poor growing conditions.

We anticipate increased competition from renewable fuels that do not use corn as the feedstock. Many of the current ethanol production incentives are designed to encourage the production of renewable fuels using raw materials other than corn. One type of ethanol production feedstock that is being explored is cellulose. Cellulose is the main component of plant cell walls and is the most common organic compound on earth. Cellulose is found in wood chips, corn stalks, rice straw, amongst other common plants. Cellulosic ethanol is ethanol produced from cellulose. There are several commercial scale cellulosic ethanol production facilities either in production or in the construction phase. If this technology can be profitably employed on a commercial scale, it could potentially lead to ethanol that is less expensive to produce than corn based ethanol, especially when corn prices are high. Cellulosic ethanol may also capture more government subsidies and assistance than corn based ethanol. This could decrease demand for our product or result in competitive disadvantages for our ethanol production process.

A number of automotive, industrial and power generation manufacturers are developing alternative clean power systems using fuel cells, plug-in hybrids, electric cars or clean burning gaseous fuels. Electric car technology has ~~recently~~ grown in popularity, especially in urban areas. While there are currently a limited number of vehicle recharging stations, making electric cars not feasible for all consumers, there has been increased focus on developing these recharging stations to make electric car technology more widely ~~available~~available. These efforts have resulted in ~~the future.~~increased market share enjoyed by electric cars. Additional competition from these other sources of alternative energy, particularly in the automobile market, could reduce the demand for ethanol, which would negatively impact our profitability.

Competition among ethanol producers may continue to increase as gasoline demand decreases due to more fuel efficient vehicles being produced. If the concentration of ethanol used in most gasoline does not increase and gasoline demand is lower due to increased fuel efficiency by the vehicles operated in the United States, competition may increase among ethanol producers to supply the ethanol market.

Distiller Grains Competition

Our ethanol plant competes with other ethanol producers in the production and sales of distiller grains. Distiller grains are primarily used as an animal feed supplement which replaces corn and soybean meal. As a result, we believe that distiller grains prices are positively impacted by increases in corn and soybean prices. In addition, in recent years the United States ethanol industry has increased exports of distiller grains which management believes has positively impacted demand and prices for distillers grains in the United States. In the event these distiller grains exports decrease, including as a result of the Chinese tariffs which have significantly reduced export demand for distiller grains, it could lead to an oversupply of distiller grains in the United States. An oversupply of distiller grains could result in increased competition among ethanol producers for sales of distiller grains which could negatively impact market distiller grains prices in the United States.

Corn Oil Competition

We compete with many ethanol producers for the sale of corn oil. Many ethanol producers have installed the equipment necessary to separate corn oil from the distiller grains they produce which has increased competition for corn oil ~~sales and has resulted in lower market~~sales. Many ethanol producers have increased corn oil ~~prices. Competition for~~production due to the relatively low value of distiller grains which has increased corn oil sales has increased with the expiration of the biodiesel blenders' credit at the end of 2016 which limits the market for corn oil sales due to anticipated lower biodiesel production. The biodiesel blenders' credit was passed retroactively for 2017 but was not authorized for 2018 which may impact corn oil prices during our 2018 fiscal year.competition.

Sources and Availability of Raw Materials

The major raw material required to produce ethanol, distiller grains and corn oil at our plant is corn. The ethanol plant is currently operating at a rate in excess of its nameplate capacity. We anticipate that we will require approximately 65 million bushels of corn per year to produce approximately ~~190~~195 million gallons of ethanol per year. We buy as much corn as possible from local grain elevators and farmers. Our commodities manager is responsible for purchasing corn for our operations, scheduling corn deliveries and establishing hedging positions to protect the price we pay for corn.

During 2017, the United States harvested another large corn crop, albeit a smaller crop than was harvested in 2016. In recent years, we have experienced favorable corn crops which have resulted in significant corn carryover which have kept corn Corn prices ~~low. As a result, management anticipates that corn prices will remain~~were lower during our ~~2018~~2020 fiscal ~~year.~~year compared to previous years primarily due to decreased corn demand for ethanol production related to the COVID-19 pandemic. However, ~~if we experience~~later in our 2020 fiscal year, corn prices were increasing due to unfavorable weather conditions ~~either throughout~~which impacted the ~~United States or more locally~~size of the corn crop harvested in the fall 2020 in our local corn ~~area that serves~~draw area. In addition, corn demand from the ethanol industry was increasing. We have not had difficulty securing the corn we need to operate the ethanol plant, however, our cost to purchase the corn we require has been higher. This may ~~experience higher~~require us to purchase corn ~~prices~~which is grown farther away from our plant which may increase our corn costs during our 2021 fiscal year. Since corn is the primary raw material we use to produce our products, the availability and ~~increased~~cost of corn ~~price volatility. Further, farmers may choose to plant less corn due to lower corn prices which could~~can have a significant impact ~~corn prices moving forward.~~on the profitability of our operations.

Commodities Account/Risk Management

In an attempt to minimize the effects of the volatility of corn costs on our profitability, we have two commodities trading accounts with ADM Investor Services, Inc. ("ADMIS") and an account with R.J. O'Brien & Associates, LLC ("RJO"). In addition, we have a commodities manager who manages our corn procurement activities. ADMIS ~~serves~~and RJO serve as our broker for the purchase and sale of commodity futures contracts for corn, and enters into transactions and exercises commodity

options for our account in accordance with our instructions. We are required to maintain adequate margins in our accounts, and if we do not maintain adequate margins, ADMIS or RJO may close out any of our positions or transfer funds from our other accounts to cover the margin.

The effectiveness of our risk management strategy is dependent on the cost of corn and our ability to sell sufficient ethanol to use all of the corn for which we have futures contracts. Our risk management activities may not be successful in reducing the risk caused by price fluctuation, which may leave us vulnerable to high corn prices.

We entered into an agreement with Northern Natural Gas in April 2008 for connection to its interstate pipeline and for transportation services for our natural gas supply. To access sufficient supplies of natural gas to operate the plant, a dedicated lateral pipeline from Northern Natural Gas's interstate pipeline has been constructed to service our plant. Construction of the natural gas lateral pipeline was completed prior to the commencement of our operations at the ethanol plant. We purchase our natural gas through various suppliers.

We entered into an Energy Management Services Agreement with U.S. Energy dated July 10, 2009. U.S. Energy is now known as Kinect. Pursuant to the agreement, ~~U.S. Energy~~Kinect assists us with electric energy and natural gas management and procurement. ~~U.S. Energy's~~Kinect's responsibilities include administration of our gas supply contracts, nomination, scheduling and other logistical issues such as storage and transportation, negotiation and delivery. We work with ~~U.S. Energy~~Kinect to provide estimated usage volumes on a monthly basis. In exchange for these management services, we pay a monthly service fee, as well as pre-approved expenses in connection with the services. The agreement for these services continues on a month-to-month basis.

On March 6, 2009, we entered into an Electrical Services Agreement with Hawkeye Tri-County Electric Cooperative (Hawkeye), to supply all of the electricity necessary to operate the ethanol plant. Pursuant to the agreement, Hawkeye has installed the electrical facilities necessary to deliver all of the electric power and energy required to operate our ethanol plant. The agreement with Hawkeye ~~will remain~~remained in effect for ten years from the date we began processing ethanol at the plant (April 2009), and ~~will terminate~~terminated on the tenth anniversary of that date (April 2019). We may continue to receive the service following expiration of the ten-year term for a minimum of two years. Either party will then have the right to terminate the agreement upon six months' written notice. Hawkeye recently completed a merger and is now called MiEnergy Cooperative.

During our 2016 fiscal year we installed a steam turbine which allows us to use excess steam produced by the ethanol plant to generate electricity that we use in our production process. Management believes that this project allows us to decrease our total utility costs and allows us to operate the ethanol plant more profitably.

Seasonality of Sales

We experience some seasonality of demand for our ethanol, distiller grains and corn oil. Since ethanol is predominantly blended with gasoline for use in automobiles, ethanol demand tends to shift in relation to gasoline demand. As a result, we experience some seasonality of demand for ethanol in the summer months related to increased driving and, as a result, increased gasoline demand. In addition, we experience some increased ethanol demand during holiday seasons related to increased gasoline demand. We also experience decreased distiller grains demand during the summer months due to natural depletion in the size of herds at cattle feed lots and when the animals are turned out to pasture or are slaughtered. Further, we expect some seasonality of demand for our corn oil since a major corn oil user is the biodiesel industry which typically reduces production during the winter months.

We primarily use our working capital for purchases of raw materials necessary to operate the ethanol plant, for payments on our credit facilities, for distributions to our members and for capital expenditures to maintain and upgrade the ethanol plant. Our primary sources of working capital are income from our operations as well as our revolving line of credit with our primary lender, Home Federal Savings Bank ("Home Federal"). Management believes that our current sources of working capital are sufficient to sustain our operations for our ~~2018~~2021 fiscal year and beyond.

Dependence on One or a Few Major Customers

As discussed previously, we have exclusive marketing agreements with RPMG for sales of our ethanol and corn oil and with CHS for sales of our distiller grains. As a result, we rely on RPMG and CHS for the sale and distribution of all of our products. Any loss of RPMG or CHS as the marketing agent for our products could have a significant negative impact on our

revenues. While we anticipate that we could secure other ethanol, distiller grains and corn oil marketers if necessary, any loss of our marketers could significantly impact our ability to operate the ethanol plant profitably.

Patents, Trademarks, Licenses, Franchises and Concessions

We do not currently hold any patents, trademarks, franchises or concessions. We were granted a perpetual and royalty free license by ICM, Inc. ("ICM") to use certain ethanol production technology necessary to operate our ethanol plant. The cost of the license granted by ICM was included in the amount we paid to Fagen, Inc. to design and build our ethanol plant.

Federal Ethanol Supports and Governmental Regulation

Federal Ethanol Supports

The ethanol industry is dependent on the Federal Renewable Fuels Standard (the "RFS"). The RFS requires that in each year, a certain amount of renewable fuels must be used in the United States. The RFS is a national program that does not require that any renewable fuels be used in any particular area or state, allowing refiners to use renewable fuel blends in those areas where it is most cost-effective. The RFS statutory volume requirement increases incrementally each year until the United States is required

The United States Environmental Protection Agency (the "EPA") has the authority to waive the RFS statutory volume requirement, in whole or in part, provided one of the following two conditions have been met: (1) there is inadequate domestic renewable fuel supply; or (2) implementation of the requirement would severely harm the economy or environment of a state, region or the United States. Annually, the EPA is supposed to pass a rule that establishes the number of gallons of different types of renewable fuels that must be used in the United States which is called the renewable volume obligations. Recently, the EPA has been granting small refinery exemptions from the RFS while not using its authority to waive the RFS statutory volume requirements. These small refinery exemptions created unallocated gallons reducing the corn-based conventional biofuel RFS requirements by 2.25 billion gallons in 2018 and 2 billion gallons in 2019. These small refinery exemptions have had a significant negative impact on domestic demand for ethanol and have resulted in negative operating margins in the ethanol industry. In January 2020, the Tenth Circuit Court of Appeals ruled that small refinery exemptions may only be granted to refineries that had secured them continuously each year since 2010. Consistent with this ruling, in September 2020, the EPA denied certain small refinery exemption petitions filed by oil refineries in 2020 seeking retroactive relief from their ethanol use requirements for prior years. Recently, the EPA announced that it will be supporting the Tenth Circuit Court of Appeals decision from January 2020.

In recent years, the EPA has reduced the volume obligations for advanced renewable fuels under the RFS which has negatively impacted demand for ethanol. The RFS statutory Renewable Volume Obligation (RVO) and the EPA's RVO (in billion gallons) are as follows:

Year Total Renewable Volume Obligation Total Renewable Volume Obligation For Corn-based Ethanol
2014 Statutory 18.15 14.40
EPA Rule 16.28 13.61
2015 Statutory 20.50 15.00
EPA Rule 16.93 14.05
2016 Statutory 22.25 15.00
EPA Rule 18.11 14.50
2017 Statutory 24.00 15.00
EPA Rule 19.28 15.00
2018 Statutory 26.00 15.00
EPA Rule 19.29 15.00

~~In February 2010, the~~ The EPA issued new regulations governing the RFS. These new regulations are called RFS2. The most controversial part of RFS2 involves what is commonly referred to as the lifecycle analysis of greenhouse gas emissions. Specifically, the EPA adopted rules to determine which renewable fuels provided sufficient reductions in greenhouse gases, compared to conventional gasoline, to qualify underhas not yet established the RFS program. RFS2 establishes a tiered approach, where regular renewable fuels are required to accomplish a 20% greenhouse gas reduction compared to gasoline, advanced biofuels and biomass-based biodiesel must accomplish a 50% reduction in greenhouse gases, and cellulosic biofuels must accomplish a 60% reduction in greenhouse gases. Any fuels that fail to meet this standard cannot be used by fuel blenders to satisfy theirvolume obligations under the RFS program. The scientific method of calculating these greenhouse gas reductions has been a contentious issue. Many in the ethanol industry were concerned that corn-based ethanol would not meet the 20% greenhouse gas reduction requirement based on certain parts of the environmental impact model that many in the ethanol industry believed was scientifically suspect. However, RFS2 as adopted by the EPA provides that corn-based ethanol from modern ethanol production processes does meet the definition of a renewable fuel under the RFS program. Our ethanol plant was grandfathered into the RFS due to the fact that it was constructed prior to the effective date of the lifecycle greenhouse gas requirement and is not required to prove compliance with the lifecycle greenhouse gas reductions. Many in the ethanol industry are concerned that certain provisions of RFS2 as adopted may disproportionately benefit ethanol produced from sugarcane which could make sugarcane-based ethanol, which is primarily produced in Brazil, more competitive in the United States ethanol market. If this were to occur, it could reduce demand for ~~the ethanol that we produce.~~2021.

Most ethanol that is used in the United States is sold in a blend called E10. E10 is a blend of 10% ethanol and 90% gasoline. E10 is approved for use in all standard vehicles. Estimates indicate that gasoline demand in the United States is

approximately ~~140~~143 billion gallons per year. Assuming that all gasoline in the United States is blended at a rate of 10% ethanol and 90% gasoline, the maximum domestic demand for ethanol is ~~14.0~~14.3 billion gallons per year. This is commonly referred to as the "blend wall," which represents a theoretical limit where more ethanol cannot be blended into the national gasoline pool. This is a theoretical limit because it is believed that it would not be possible to blend ethanol into every gallon of gasoline that is being used in the United States and it discounts the use of higher percentage blends such as E15 or E85. These higher percentage blends may lead to additional ethanol demand if they become more widely available and accepted by the market. Gasoline demand was lower for 2020 due to COVID-19.

Many in the ethanol industry believe that it will be impossible to meet the RFS requirement in future years without an increase in the percentage of ethanol that can be blended with gasoline for use in standard (non-flex fuel) vehicles. The EPA has approved the use of E15, gasoline which is blended at a rate of 15% ethanol and 85% gasoline, in vehicles manufactured in the model year 2001 and later. However, there are still hurdles that need to be addressed in some states before E15 will become more

In May 2020, the United States Department of Agriculture ("USDA") announced the Higher Blends Infrastructure Incentive Program which consists of up to $100 million in funding for grants to be used to increase the availability of higher blends of ethanol and biodiesel fuels. Funds may be awarded to retailers such as fueling stations and convenience stores to assist in the cost of installation or upgrading of fuel pumps and other infrastructure. In October 2020, the USDA announced the first round of awards to recipients of $22 million worth of grants. Recently a second round of funding of approximately $30 million in grants was announced.

Effect of Governmental Regulation

Plant operations are governed by the Occupational Safety and Health Administration ("OSHA"). OSHA regulations may change such that the costs of operating the ethanol plant may increase. Any of these regulatory factors may result in higher costs or other adverse conditions effecting our operations, cash flows and financial performance.

In late 2009, California passed a Low Carbon Fuels Standard ("LCFS"). The California LCFS requires that renewable fuels used in California must accomplish certain reductions in greenhouse gases which is measured using a lifecycle analysis, similar to the RFS. The LCFS could have a negative impact on demand for corn-based ethanol and result in decreased ethanol prices affecting our ability to operate profitably.

In August 2017, Brazil instituted an import quota for ethanol produced in the United States and exported to Brazil, along with a 20% tariff on ethanol imports in excess of the quota. In September 2019, the Brazilians increased the tariff free import quota from 600 million liters to 750 million liters. The quota expired in December 2020 so all U.S. ethanol exports to Brazil are now subject to the tariff. This tariff has reduced exports of ethanol to Brazil and may continue to negatively impact ethanol exports from the United States. Any reduction in ethanol exports could negatively impact market ethanol prices in the United States. In addition, the Chinese government increased the tariff on United States ethanol imports into China from 30% to 45% and ultimately to 70%. Management does not expect these Chinese tariffs to be removed in the near term. Both China and Brazil have been major sources of import demand for United States ethanol and distillers grains. These trade actions may result in negative operating margins for United States ethanol producers.

Costs and Effects of Compliance with Environmental Laws

We are subject to extensive air, water and other environmental regulations and we require a number of environmental permits to operate the plant. We have obtained all permits that are currently required for operation of the plant. In the fiscal year ended December 31, ~~2017,~~2020, we incurred costs and expenses of approximately ~~$169,000~~$234,000 complying with environmental laws, including the cost of obtaining permits. Although we have been successful in obtaining all of the permits currently required, any retroactive change in environmental regulations, either at the federal or state level, could require us to obtain additional or new permits or spend considerable resources in complying with such regulations. We anticipate incurring costs and expenses of approximately ~~$150,000~~$200,000 for compliance with environmental laws for our fiscal year ended December 31, ~~2018.~~2021.

~~Research and Development~~

~~We are continually working to develop new methods~~

Table of ~~operating the ethanol plant more efficiently. We continue to conduct research and development activities in order to realize these efficiency improvements.~~Contents

Employees

As of December 31, ~~2017,~~2020, we had 5460 full-time employees. We do not anticipate a significant change in the number of full-time employees we have in the next 12 months.

~~Financial Information about Geographic Areas~~

All of the products we sold to our customers for our fiscal years 2017, 2016 and 2015 were produced in the United States and all of our long-lived assets and operations are domiciled in the United States. We have engaged third-party professional marketers that decide where our products are marketed and we have limited control over the marketing decisions made by our marketers. Our marketers may decide to sell our products in countries other than the United States. Currently, a significant amount of distiller grains are exported to Mexico, Turkey, South Korea, Thailand, China and Canada and the United States ethanol industry exported significant amounts of ethanol to Canada, Brazil, India, China, South Korea, the Philippines and Peru. However, we anticipate that our products will still primarily be marketed and sold in the United States.

ITEM 1A. RISK FACTORS.

You should carefully read and consider the risks and uncertainties below and the other information contained in this report. The risks and uncertainties described below are not the only ones we may face. The following risks, together with additional risks and uncertainties not currently known to us or that we currently deem immaterial could impair our financial condition and results of operation.

Risks Relating to Our Business

We are subject to global and regional economic downturns and related risks and the effects of COVID-19 or another pandemic may materially and adversely affect demand and the market price for our products. The level of demand for our products is affected by global and regional demographic and macroeconomic conditions. A significant downturn in global economic growth, or recessionary conditions in major geographic regions for prolonged periods, may lead to reduced demand for our products, which could have a negative effect on the market price of our products. In December 2019, a novel coronavirus surfaced in Wuhan, China (“COVID-19”). The spread of COVID-19 worldwide has resulted in businesses suspending or substantially curtailing global operations and travel, quarantines, and an overall substantial slowdown of economic activity. Transportation fuels in particular, including ethanol, have experienced significant price declines and reduced demand. The effects of COVID-19 have and may continue to materially and adversely affect the market price for our products, our business, results of operations and liquidity.

COVID-19 or another pandemic may negatively impact our ability to operate our business which could decrease or eliminate the value of our units. COVID-19 has resulted in significant uncertainty in many areas of our business. We do not know how long these conditions will last. This uncertainty is expected to negatively impact our operations. We may experience labor shortages if our employees are unable or unwilling to come to work. If our suppliers cannot deliver the supplies we need to operate our business or if we are unable to ship our products due to trucking or rail shipping disruptions, we may be forced to suspend operations or reduce production. If we are unable to operate the ethanol plant at capacity, it may result in unfavorable operating results. Any shut down of operations or reduction in production, especially for an extended period of time, could reduce or eliminate the value of our units.

The spread between ethanol and corn prices can vary significantly which can negatively impact our financial condition.Our only ~~source~~sources of revenue ~~comes~~come from sales of our ethanol, distiller grains and corn oil. The primary raw materials we use to

produce our ethanol, distiller grains and corn oil are corn and natural gas. In order to operate the ethanol plant profitably, we must maintain a positive spread between the revenue we receive from sales of our products and our corn and natural gas costs. This spread between the market price of our products and our raw material costs has been volatile in the past. If we were to experience a period of time where this spread is negative, and the negative margins continue for an extended period of time, it may prevent us from profitably operating the ethanol plant which could decrease the value of our units.

Decreasing gasoline prices may lower ethanol prices which could negatively impact our ability to operate profitably. In recent years, the price of ethanol has been less than the price of gasoline which increased demand for ethanol from fuel blenders. However, at ~~various~~ times ~~in recent years,~~ the price of gasoline has decreased which has reduced the spread between the price of gasoline and the price of ethanol. This trend ~~has~~ negatively impacted ethanol prices. If this trend ~~continues~~were to return and continue for a significant period of time, it could hurt our ability to profitably operate the ethanol plant which could decrease the value of our units.

Distiller grains demand and prices ~~may be~~has been negatively impacted by the Chinese anti-dumping and countervailing duty investigation. China was historically the world's largest importer of distiller grains produced in the United States. On January 12, 2016, the Chinese government announced that it would commence an anti-dumping and countervailing duty investigation related to distiller grains imported from the United States. ~~On September 23, 2016, the Chinese instituted a preliminary anti-dumping duty of 33% in response to this investigation and an anti-subsidy duty on September 30, 2016 of approximately 10%.~~ In January 2017, the Chinese finalized the anti-dumping and anti-subsidy duties at rates ~~higher than the preliminary rates set in September 2016. The anti-dumping duties range~~ from 42.2% to 53.7%~~, an increase from~~ for the ~~preliminary duty of 33.8% issued in September 2016. The final anti-subsidy tariffs range~~anti-dumping claim and from 11.2% to 12%~~, up from 10% to 10.7% issued in September 2016. Both during~~ for the ~~investigation and after the announcement of the duties,~~anti-subsidy duty. These trade actions have negatively impacted distiller grains demand and prices ~~have been negatively impacted. While we expect China to continue to import some distiller grains, we do not anticipate that the imports will be at the same level as previous years~~ which could continue to ~~negatively impact market distiller grains demand and prices. This~~his potential ~~reduction in demand along with lower domestic corn prices could~~ negatively impact our ability to profitably operate the ethanol plant.

A reduction in ethanol exports to Brazil due to the imposition by the Brazilian government of a tariff on U.S. ethanol could have a negative impact on ethanol prices. Brazil has historically been a top destination for ethanol produced in the United States. However, in 2017, Brazil imposed a 20% tariff on ethanol which is produced in the United States and exported to Brazil. The effect of the tariff has been mitigated somewhat by the adoption of a rate tariff quota that allowed 750

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million liters of ethanol annually to be allowed into Brazil before the tariff applies. However, this rate tariff quota expired on December 14, 2020, so all of the ethanol exports to Brazil are now subject to the 20% tariff. This tariff has already resulted in a decline in demand for ethanol from Brazil and could negatively impact the market price of ethanol in the United States and our ability to profitably operate the ethanol plant.

We may be forced to reduce production or cease production altogether if we are unable to secure the corn we require at prices which allow us to profitably operate the ethanol ~~plant. Our ability~~plant. We require a significant amount of corn to operate the ethanol plant ~~requires us to purchase a sufficient amount~~at capacity. In recent years, the supply of corn ~~throughout~~in the ~~year in order to continuously operate the ethanol plant. If~~market has been higher and we ~~are unable to secure~~have not had difficulty securing the corn we require ~~either now or~~at prices that allow us to operate profitably. However, poor weather conditions in the ~~future, it could~~area surrounding the plant impacted the size of the corn crop in our area which has negatively ~~impact~~impacted our ~~operations.~~average cost per bushel of corn. If we are unable to secure the corn we require to continue to operate the ethanol plant, or we are unable to secure corn at prices that allow us to operate profitably, we may have to reduce production or cease operating altogether which may negatively impact the value of our units.

We may violate the terms of our credit agreements and financial covenants which could result in our lender demanding immediate repayment of our loans. Our credit agreements with Home Federal require that we comply with various financial loan covenants. We are currently in compliance with all of our financial loan covenants. Current management projections indicate that we will be in compliance with our loan covenants for at least the next 12 months. However, unforeseen circumstances may develop which could result in us violating our loan covenants. If we violate the terms of our credit agreements, including our financial loan covenants, Home Federal could deem us to be in default of our loans and prevent us from drawing funds on our revolving line of credit and also require us to immediately repay any outstanding balance of our loans. If we do not have the funds available to repay the loans or we cannot find another source of financing, we may fail which could decrease or eliminate the value of our units.

Our marketers may fail to sell all of the ethanol, distiller grains and corn oil we produce which could negatively impact our profitability. We rely on our ethanol, distiller grains and corn oil marketers to sell all of our products. Currently we have an agreement with RPMG which markets all of our ethanol and corn oil and we have an agreement with CHS to market all of our distiller grains. Our only source of revenue is from the sale of our ethanol, distiller grains and corn oil. If our marketers are unable to sell all of the ethanol, distiller grains or corn oil we produce, or if they are unable to sell them at prices that allow us to operate profitability, the value of our units may be negatively impacted. Further, RPMG or CHS could fail. While we anticipate that we will be able to secure alternative marketers should RPMG or CHS cease marketing our products for any reason, we may not be able to do so without incurring additional costs or without a reduction in our revenue. Any loss of our ethanol, distiller grains or corn oil marketers may negatively impact our profitability and could decrease the value of our units.

We engage in hedging transactions which involve risks that can harm our business. We are exposed to market risk from changes in commodity prices. Exposure to commodity price risk results from our dependence on corn and natural gas in the

ethanol production process. We seek to minimize the risks from fluctuations in the prices of corn and natural gas through the use of hedging instruments. These hedging instruments can be risky and can negatively impact our liquidity. In times when commodity prices are volatile, we may be required to use significant amounts of cash to make margin calls as a result of our hedging positions. The effectiveness of our hedging strategies is dependent on the cost of corn and natural gas and our ability to sell sufficient products to use all of the corn and natural gas for which we have futures contracts. Our hedging activities may not successfully reduce the risk caused by price fluctuations which may leave us vulnerable to high corn and natural gas prices. Alternatively, we may choose not to engage in hedging transactions in the future. As a result, our future results of operations and financial condition may also be adversely affected during periods in which corn and/or natural gas prices increase. These hedging transactions could impact our ability to profitably operate the ethanol plant and negatively impact our liquidity.

Our business is not diversified. Our success depends almost entirely on our ability to profitably operate our ethanol plant. We do not have any other lines of business or other sources of revenue if we are unable to operate our ethanol plant and manufacture ethanol, distiller grains and corn oil. If economic or political factors adversely affect the market for ethanol, distiller grains and corn oil, we have no other line of business to fall back on. Our business would also be significantly harmed if the ethanol plant could not operate at full capacity for any extended period of time which could reduce the value of our units.

We depend on our management and key employees, and the loss of these relationships could negatively impact our ability to operate profitably. We are highly dependent on our management team to operate our ethanol plant. Our management employees may decide to end their employment with us. If one or more of our management employees terminate their employment, we may not be able to replace these individuals. While we seek to compensate our management and key employees in a manner that will encourage them to continue their employment with us, they may choose to seek other employment. Any loss of these managers or key employees may prevent us from operating the ethanol plant profitably and could decrease the value of our units.

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We may incur casualty losses that are not covered by insurance which could negatively impact the value of our units.We have purchased insurance which we believe adequately covers our losses from foreseeable risks. However, there are risks that we may encounter for which there is no insurance or for which insurance is not available on terms that are acceptable to us. If we experience a loss which materially impairs our ability to operate the ethanol plant which is not covered by insurance, the value of our units could be reduced or eliminated.

Our operations may be negatively impacted by natural disasters, severe weather conditions, and other unforeseen plant shutdowns which can negatively impact our operations. Our operations may be negatively impacted by events outside of our control such as natural disasters, severe weather, strikes, train derailments and other unforeseen events which may negatively impact our operations. If we experience any of these unforeseen circumstances which negatively impact our operations, it may affect our cash flow and negatively impact the value of our business.

Changes and advances in ethanol production technology could require us to incurcosts to update our plant or could otherwise hinder our ability tocompete in the ethanol industry or operate profitably. Advances and changes in the technology of ethanol production are expected to occur. Such advances and changes may make the ethanol production technology installed in our plant less desirable or obsolete. These advances could also allow our competitors to produce ethanol at a lower cost than us. If we are unable to adopt or incorporate technological advances, our ethanol production methods and processes could be less efficient than our competitors, which could cause our plant to become uncompetitive or completely obsolete. If our competitors develop, obtain or license technology that is superior to ours or that makes our technology obsolete, we may be required to incur significant costs to enhance or acquire new technology so that our ethanol production remains competitive. Alternatively, we may be required to seek third-party licenses, which could also result in significant expenditures. These third-party licenses may not be available or, once obtained, they may not continue to be available on commercially reasonable terms. These costs could negatively impact our financial performance by increasing our operating costs and reducing our net income.

Failures of our information technology infrastructure could negatively impact our operations. We utilize various software applications and other information technology that are critically important to our business operations. We rely on information technology networks and systems, including the Internet, to process, transmit and store electronic and financial information, to manage a variety of business processes and activities, including production, manufacturing, financial, logistics, sales, marketing and administrative functions. We depend on our information technology infrastructure to communicate internally and externally with employees, customers, suppliers and others. We also use information technology networks and systems to comply with regulatory, legal and tax requirements. These information technology systems, some of which are managed by third parties, may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components thereof, power outages, hardware failures, computer viruses, attacks by computer hackers or other cybersecurity risks, telecommunication failures, user errors, natural disasters, terrorist attacks or other catastrophic events. If any of our significant information technology systems suffer severe damage, disruption or shutdown, and our disaster recovery and business continuity plans do not effectively resolve the issues in a timely manner, our product sales, financial condition and results of operations may be materially and adversely affected.

A cyber attack or other information security breach could negatively impact our operations and financial performance.We are regularly the target of attempted cyber and other security threats and must continuously monitor and develop our information technology networks and infrastructure to prevent, detect, address and mitigate the risk of unauthorized access, misuse, computer viruses and other events that could have a security impact. If we are unable to prevent cyber attacks and other information security breaches, we may encounter significant disruptions in our operations which could adversely impact our business, financial condition and results of operations or result in the unauthorized disclosure of confidential information. Such breaches may also harm our reputation, result in financial losses or subject us to litigation or other costs or penalties.

Risks Related to Ethanol Industry

Excess ethanol supply in the market could put negative pressure on the price of ethanol which could lead to tight operating margins and may impact our ability to operate profitably.In the past the ethanol industry has confronted market conditions where ethanol supply exceeded demand which led to unfavorable operating conditions. ~~Most recently, in~~In 2012, profitability in the ethanol industry was reduced due to increased ethanol imports from Brazil at a time when gasoline demand in the United States was lower and domestic ethanol supplies were higher. This disconnect between ethanol supply and demand resulted in lower ethanol prices at a time when corn prices were higher which led to unfavorable operating conditions. We may experience periods of time when ethanol supply exceeds demand which could negatively impact our profitability. The United States benefited from additional exports of ethanol in recent ~~years which~~years. However, this did not continue to occur for our 2020 fiscal year,

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and may not continue to occur during our ~~2018~~2021 fiscal year. We may experience periods of ethanol supply and demand imbalance during our ~~2018~~2021 fiscal year. If we experience excess ethanol

supply, either due to increased ethanol production or lower gasoline demand, it could negatively impact the price of ethanol which could hurt our ability to profitably operate the ethanol plant.

Demand for ethanol may not continue to grow unless ethanol can be blended into gasoline in higher percentage blends for standard vehicles. Currently, ethanol is primarily blended with gasoline for use in standard (non-flex fuel) vehicles to create a blend which is 10% ethanol and 90% gasoline. Estimates indicate that approximately ~~140~~143 billion gallons of gasoline are sold in the United States each year. Assuming that all gasoline in the United States is blended at a rate of 10% ethanol and 90% gasoline, the maximum demand for ethanol is ~~14.0~~14.3 billion gallons. This is commonly referred to as the "blend wall," which represents a theoretical limit where more ethanol cannot be blended into the national gasoline pool. Many in the ethanol industry believe that the ethanol industry has reached this blend wall. In order to expand demand for ethanol, higher percentage blends of ethanol must be utilized in standard vehicles. Such higher percentage blends of ethanol are a contentious issue. Automobile manufacturers and environmental groups have fought against higher percentage ethanol blends. The EPA approved the use of E15 for standard (non-flex fuel) vehicles produced in the model year 2001 and later. The fact that E15 has not been approved for use in all vehicles and the labeling requirements associated with E15 may lead to gasoline retailers refusing to carry E15. ~~In addition, restrictions on the evaporative emissions of E15 during the summer months can limit the availability of E15 in some markets.~~ Without an increase in the allowable percentage blends of ethanol that can be used in all vehicles, demand for ethanol may not continue to increase which could decrease the selling price of ethanol and could result in our inability to operate the ethanol plant profitably, which could reduce or eliminate the value of our units.

~~Technology advances in the commercialization of cellulosic ethanol may decrease demand for corn-based ethanol which may negatively affect our profitability~~. The current trend in ethanol production research is to develop an efficient method of producing ethanol from cellulose-based biomass, such as agricultural waste, forest residue, municipal solid waste, and energy crops. This trend is driven by the fact that cellulose-based biomass is generally cheaper than corn, and producing ethanol from cellulose-based biomass would create opportunities to produce ethanol in areas of the country which are unable to grow corn. The RFS requires that 16 billion gallons per year of advanced bio-fuels, such as cellulosic ethanol, must be consumed in the United States by 2022. Additionally, state and federal grants have been awarded to several companies which are seeking to develop commercial scale cellulosic ethanol plants. This has encouraged innovation and has led to several companies which have completed construction or are in the process of building commercial scale cellulosic ethanol plants. If an efficient method of producing ethanol from cellulose-based biomass is developed, we may not be able to compete effectively. If we are unable to produce ethanol as cost-effectively as cellulose-based producers, our ability to generate revenue and our financial condition will be negatively impacted.

~~New plants under construction or decreases in ethanol demand may result in excess production capacity in our industry~~. The supply of domestically produced ethanol is at an all-time high. According to the Renewable Fuels Association, as of January 23, 2018, there are 213 ethanol plants in the United States with capacity to produce approximately 16.2 billion gallons of ethanol per year. Excess ethanol production capacity may have an adverse impact on our results of operations, cash flows and general financial condition. According to the Renewable Fuels Association, approximately 3% of the ethanol production capacity in the United States was idled as of January 23, 2018. Further, ethanol demand may be negatively impacted by reductions in the RFS. While the United States is currently exporting ethanol which has resulted in increased ethanol demand, these ethanol exports may not continue. If ethanol demand does not grow at the same pace as increases in supply, we expect the selling price of ethanol to decline. If excess capacity in the ethanol industry continues to occur, the market price of ethanol may decline to a level that is inadequate to generate sufficient cash flow to cover our costs, which could negatively affect our profitability.

Growth in the ethanol industry is dependent on growth in the fuel blending infrastructure to accommodate ethanol, which may be slow and could result in decreased ethanol demand.The ethanol industry depends on the fuel blending industry to blend the ethanol that is produced with gasoline so it may be sold to the end consumer. Substantial investments are required to expand this blending infrastructure and the fuel blending industry may choose not to expand the blending infrastructure to accommodate ethanol. Should the ability to blend ethanol not expand at the same rate as increases in ethanol supply, it may decrease the demand for ethanol which may lead to a decrease in the selling price of ethanol, which could impact our ability to operate profitably.

We operate in an intensely competitive industry and compete with larger, better financed companies which could impact our ability to operate profitably. There is significant competition among ethanol producers. There are numerous producer-owned and privately-owned ethanol plants operating throughout the Midwest and elsewhere in the United States. We also face competition from ethanol producers located outside of the United States. The largest ethanol producers include Archer Daniels Midland, Flint Hills Resources, Green Plains Renewable Energy, POET Biorefining, and Valero Renewable Fuels, each which is capable of producing significantly more ethanol than we produce. Further, many believe that there will be consolidation occurring in the ethanol industry which will likely lead to a few companies which control a significant portion of the United States ethanol production market. We may not be able to compete with these larger producers. These larger ethanol producers may be able to

affect the ethanol market in ways that are not beneficial to us which could negatively impact our financial performance and the value of our units.

Competition from the advancement of alternative fuels and technologies may lessen demand for ethanol. Alternative fuels, gasoline oxygenates and ethanol production methods are continually under development. A number of automotive, industrial and power generation manufacturers are developing alternative clean power systems using fuel cells, plug-in hybrids, and electric cars or clean burning gaseous fuels. Like ethanol, these emerging technologies offer an option to address worldwide energy costs, the long-term availability of petroleum reserves and environmental concerns. If these alternative technologies continue to expand and gain broad acceptance and become readily available to consumers for motor vehicle use, we may not be able to compete effectively. This additional competition could reduce the demand for ethanol, resulting in lower ethanol prices that might adversely affect our results of operations and financial condition.

If exports of ethanol are reduced, ~~including as a result of the imposition by the European Union of a tariff on U.S. ethanol,~~ ethanol prices may be negatively impacted.The United States ethanol industry was supported during our ~~2017~~2020 fiscal year with exports of ~~ethanol which increased demand for our~~ ethanol. Management believes ~~these additional~~ exports of ethanol were due to lower market ethanol prices in the United States and increased global demand for ethanol. However, these ethanol exports were lower in 2020 compared to prior years and they may ~~not continue.~~continue to decrease. In ~~2012,~~2017, China and Brazil both implemented import tariffs on United States ethanol and the European Union ~~concluded an anti-dumping investigation related to~~has maintained a tariff since 2012, which was only recently repealed in 2019. As a result of small refinery exemptions in 2018 and 2019, and the impacts of the COVID-19 pandemic, we are experiencing the impact of excess ethanol ~~produced~~supplies in the market. Without exports of ethanol, excess ethanol supplies in the United States ~~and exported to Europe. As a result of this investigation, the European Union has imposed a tariff on ethanol~~will continue which ~~is produced in the United States and exported to Europe. While we~~could continue to experience some ethanol exports to Europe, as a result of this tariff, if ethanol prices increase, these exports to the European Union may cease. Further, ethanol exports could potentially be higher without the European Union tariff. In addition, other importers of United States ethanol could reduce their imports which could negatively impact ~~ethanol prices in the United States and could result in an imbalance between ethanol supply and ethanol demand.~~prices. Any decrease in ethanol prices or demand may negatively impact our ability to profitably operate the ethanol plant.

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Consumer resistance to the use of ethanol based on the belief that ethanol is expensive, adds to air pollution, harms engines and/or takes more energy to produce than it contributes or based on perceived issues related to the use of corn as the feedstock to produce ethanol may affect demand for ethanol. Certain individuals believe that the use of ethanol will have a negative impact on gasoline prices at the pump. Some also believe that ethanol adds to air pollution and harms car and truck engines. Still other consumers believe that the process of producing ethanol actually uses more fossil energy, such as oil and natural gas, than the amount of energy that is produced. Further, some consumers object to the fact that ethanol is produced using corn as the feedstock which these consumers perceive as negatively impacting food prices. These consumer beliefs could potentially be wide-spread and may be increasing as a result of recent efforts to increase the allowable percentage of ethanol that may be blended for use in vehicles. If consumers choose not to buy ethanol based on these beliefs, it would affect the demand for the ethanol we produce which could negatively affect our profitability and financial condition.

Overcapacity within the ethanol industry could cause an oversupply of ethanol and a decline in ethanol prices. Excess ethanol production capacity could have an adverse impact on our results of operations, cash flows and general financial condition. If demand for ethanol does not grow at the same pace as increases in supply, we would expect the price of ethanol to decline. If excess capacity in the ethanol industry occurs, the market price of ethanol may decline to a level that is inadequate to generate sufficient cash flow to cover our costs which could reduce the value of our units.

Many ethanol producers are expanding their production capacity which could ~~lead~~continue to anincrease the oversupply of ethanol in the United States. Recently, many ethanol producers have commenced projects to expand their ethanol production capacities. These expansions ~~could result~~have resulted in a significant increase in the supply of ethanol in the United States. Currently, ethanol prices are supported by ethanol exports which may not continue at their current levels. While many in the ethanol industry are working to increase the amount of ethanol that is used domestically, specifically in the form of E15, which contains 15% ethanol as compared to the 10% ethanol which is used in most current blends, adoption of E15 has not been as rapid as most ethanol producers would like. Also, the additional ethanol capacity which is being constructed may exceed current domestic and export demand. If an oversupply of ethanol were to ~~occur,~~continue, it could continue to negatively impact domestic ethanol prices which could negatively impact our ability to profitably operate the ethanol plant.

Risks Related to Regulation and Governmental Action

Government incentives for ethanol production may be reduced or eliminated in the future, which could hinder our ability to operate at a profit.The ethanol industry is assisted by various federal and state ethanol incentives, ~~including~~the most important of which is the RFS set forth in the Energy Policy Act of 2005. The RFS helps support a market for ethanol that might disappear without this incentive. The ~~United States Environmental Protection Agency ("EPA")~~EPA has the authority to waive the RFS statutory volume requirement, in whole or in part,

provided certain conditions have been met. Annually, the EPA is supposed to pass a rule that establishes the number of gallons of different types of renewable fuels that must be used in the United States which is called the renewable volume obligations. ~~On November 30, 2017,~~In the past, the EPA has set the renewable volume obligations below the statutory volume requirements. The EPA has not yet released its final rule ~~and~~to set the ~~2018 total~~2021 RFS volume ~~obligation at 19.29 billion gallons of which 15.0 billion gallons could be met by corn-based ethanol.~~obligations. If the EPA were to significantly reduce the volume requirements under the RFS or if the RFS were to be otherwise reduced or eliminated by the exercise of the EPA waiver authority or by Congress in the future, the market price and demand for ethanol could decrease which will negatively impact our financial performance.

Government policies and regulations, particularly those affecting the agricultural sector and related industries, could adversely affect our operations and profitability. Agricultural commodity production and trade flows are significantly affected by government policies and regulations. Governmental policies affecting the agricultural industry, such as taxes, trade tariffs, duties, subsidies, import and export restrictions on commodities and commodity products, can influence industry profitability, the planting of certain crops, the location and size of crop production, whether unprocessed or processed commodity products are traded, and the volume and types of imports and exports. In addition, international trade disputes can adversely affect trade flows by limiting or disrupting trade between countries or regions. Future governmental policies, regulations or actions affecting our industry may adversely affect the supply of, demand for and prices of our products, restrict our ability to do business and cause our financial results to suffer. We may experience negative impacts of higher ethanol tariffs and other disruptions to international agricultural trade. Increased ethanol tariffs would likely reduce overall U.S. ethanol export demand, which could have a negative effect on U.S. domestic ethanol prices.

The California Low Carbon Fuel Standard may decrease demand for corn-based ethanol which could negatively impact our profitability. California passed a Low Carbon Fuels Standard ("LCFS") which requires that renewable fuels used in California must accomplish certain reductions in greenhouse gases which reductions are measured using a lifecycle analysis. Management believes that these regulations could preclude corn-based ethanol produced in the Midwest from being used in California. California represents a significant ethanol demand market. If the ethanol industry is unable to supply corn-based

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ethanol to California, it could significantly reduce demand for the ethanol we produce. This could result in a reduction of our revenues and negatively impact our ability to profitably operate the ethanol plant.

Changes in environmental regulations or violations of these regulations could be expensive and reduce our profitability. We are subject to extensive air, water and other environmental laws and regulations. In addition, some of these laws require our plant to operate under a number of environmental permits. These laws, regulations and permits can often require expensive pollution control equipment or operational changes to limit actual or potential impacts to the environment. A violation of these laws and regulations or permit conditions can result in substantial fines, damages, criminal sanctions, permit revocations and/or plant shutdowns. In the future, we may be subject to legal actions brought by environmental advocacy groups and other parties for actual or alleged violations of environmental laws or our permits. Additionally, any changes in environmental laws and regulations, both at the federal and state level, could require us to spend considerable resources in order to comply with future environmental regulations. The expense of compliance could be significant enough to reduce our profitability and negatively affect our financial condition.

Carbon dioxide may be regulated in the future by the EPA as an air pollutant requiring us to obtain additional permits and install additional environmental mitigation equipment, which could adversely affect our financial performance. In 2007, the Supreme Court decided a case in which it ruled that carbon dioxide is an air pollutant under the Clean Air Act for motor vehicle emissions. Our plant produces a significant amount of carbon dioxide. While there are currently no regulations restricting carbon dioxide emissions, if the EPA or the State of Iowa were to regulate carbon dioxide emissions by plants such as ours, we may have to apply for additional permits or we may be required to install carbon dioxide mitigation equipment or take other as yet unknown steps to comply with these potential regulations. Compliance with any future regulation of carbon dioxide, if it occurs, could be costly and may prevent us from operating the ethanol plant profitably which could decrease or eliminate the value of our units.

ITEM 2. PROPERTIES.

Our plant is located on an approximately 350 acre site in Chickasaw County, Iowa. The plant's address is 2779 Highway 24, Lawler, Iowa 52154. Construction of our plant was completed in April 2009. All of our operations are located at this site.

We selected our plant site because of its close proximity to rail service and access to natural gas supplies capable of meeting plant consumption needs. The plant is located on Iowa Highway 24, which runs east/west, and is about 10 miles east of Iowa Highway 63, which runs north/south, and about 40 miles north of Iowa Highway 20, which runs east/west. Our proximity to these highways provides us with easy access to Interstate 35 and Interstate 80. In addition, the plant is located on the Canadian Pacific railroad line which provides us access to many markets for our products.

All of our tangible and intangible property, real and personal, serves as the collateral for our debt financing with Home Federal, ~~Savings Bank,~~ which is described below under "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Short-Term and Long-Term Debt Sources."

ITEM 3. LEGAL PROCEEDINGS.

Retterath ~~Florida~~ Lawsuit

On August 1, 2013, Steve Retterath, the Company's largest investor and a former member of the Company's board of directors filed a lawsuit in the Florida Circuit Court located in Palm Beach County, Florida. The lawsuit was subsequently removed to federal court in Florida. In the lawsuit, Mr. Retterath sued the Company, Pat Boyle, Maurice Hyde, Christine Marchand, Mathew Driscoll, Leslie Hansen, and Chad Kuhlers, each members of the Company's board of directors, Walter Wendland, the Company's former Chief Executive Officer, David Finke, the Company's former Chief Financial Officer and Kevin Howes, the Company's

Chief Operating Officer. Mr. Retterath also sued James Boeding, a former director and the Company's outside legal counsel, Joseph Leo and the BrownWinick Law Firm. Mr. Retterath is claiming that certain actions taken by the Company violated fiduciary duties owed to him as a member or fraudulently induced him to take certain actions. Mr. Retterath is also claiming violations of state and federal securities laws and violations of Florida's deceptive and unfair trade practices statutes. Mr. Retterath claims an unspecified damage in excess of $30 million in monetary damages. The Florida court ruled in favor of the Company's motion to transfer the case to Iowa. Each of the defendants filed motions to dismiss the lawsuit and Mr. Retterath filed a motion for partial summary judgment in the case. The Federal Court in Iowa ruled in favor of the defendants and dismissed the federal claims in this lawsuit. Further, the Federal Court declined jurisdiction to hear the other state law matters in the case and remanded those claims back to Florida state court.

On August 21, 2014, Jason Retterath and Annie Retterath, the son and daughter-in-law of Steve Retterath, filed a motion to intervene in the lawsuit to protect their interests as members of the Company. The Company filed a motion to dismiss the intervenor petition. The Federal Court in Iowa declined to consider the Company's motion to dismiss the intervention and instead remanded the intervenors’ case back to Florida state court.

~~Mr. Retterath and his son and daughter-in-law voluntarily dismissed this lawsuit without prejudice.~~

~~Retterath Iowa Lawsuit~~

On August 14, 2013, the Company filed a lawsuit against Steve Retterath in the Iowa state court located in Polk County, Iowa. The purpose of the lawsuit is to enforce the terms of the repurchase agreement the Company executed with Mr. Retterath on June 13, 2013. The Company ~~is asking~~asked the Iowa state court to require Mr. Retterath to perform his obligations under the repurchase agreement pursuant to its terms. Mr. Retterath removed the case to federal court in the Federal District Court for the Southern District of Iowa in December 2013. The Company believed that this removal was improper and as a result the Company moved to remand the case back to the Iowa state court in Polk County which was granted. Mr. Retterath answered the lawsuit in August 2014, denying the validity of the repurchase agreement. In addition, the Iowa state court permitted Jason Retterath and Annie Retterath, the son and daughter-in-law of Steve Retterath, to be added as parties to the Iowa state lawsuit. In February 2015, the Company filed a motion for summary judgment asking the Iowa state court to enforce the repurchase agreement. The Retteraths also filed motions for summary judgment asking the Iowa state court to find the repurchase agreement invalid. On October 16, 2015, the Iowa state court entered a ruling granting Homeland's motion for summary judgment and determined no membership vote was required as Mr. Retterath has contended. The Iowa state court also denied the summary judgment motions filed by Mr. Retterath and his son and daughter-in-law.

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Mr. Retterath and his son and daughter-in-law filed a motion to add a significant number of additional parties to the Iowa lawsuit along with additional claims against the Company. We filed a resistance to Mr. Retterath's attempts to expand the scope of the Iowa lawsuit. In November 2016, the Iowa Court ruled that our original claims against Mr. Retterath would proceed to trial in January 2017 as scheduled and that any other issues that remain following that trial would be litigated after a ruling is issued in the January 2017 trial. The trial was held in January 2017. On June 15, 2017, the Iowa Court ruled in favor of Homeland that the repurchase agreement was valid and directed Mr. Retterath to perform his obligations under the repurchase agreement by August 1, 2017. Mr. Retterath subsequently filed motions with the Iowa Court to reconsider its ruling or alternatively award Mr. Retterath a new trial. Mr. Retterath also asked the Iowa Court to stay his obligation to perform the repurchase agreement until these motion are ruled on by the Iowa Court. The Iowa Court granted Mr. Retterath's stay while the court considered his post-trial motions. On May 7, 2018, the Iowa Court denied Mr. Retterath's motions for a new trial and to reconsider the Iowa Court's prior ruling. Mr. Retterath filed an appeal of the Iowa Court's decision. In February 2020, the Iowa Supreme Court ruled that the repurchase agreement is valid and enforceable. In April 2020, we closed the repurchase transaction. Now that the first part of the case is resolved, the additional matters Mr. Retterath added to the case in 2016 will be resolved by the court.

GS Cleantech Patent Litigation

On August 9, 2013, GS Cleantech Corporation ("GS Cleantech"), a subsidiary of Greenshift Corporation, filed a complaint in the United States District for the Northern District of Iowa against the Company. The Company is one of more than twenty ethanol manufacturers that were sued by GS Cleantech. The complaint alleges that the Company's operation of a corn oil extraction process infringes patent rights claimed by GS Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees. The complaint was transferred to the United States District Court for the Southern District of Indiana due to a finding that the action involves questions of fact common to several other lawsuits which were joined in a multi-district litigation ("MDL"). The MDL Court developed two tracks of defendants in this litigation. The first track includes defendants which were originally sued by GS Cleantech in 2010 and a second track of defendants sued in 2013 which includes the Company. On October 23, 2014, the MDL Court granted summary judgment in favor of the first track defendants and found that the GS Cleantech patents which the Company is alleged to have infringed are invalid. Further, in a January 16, 2015 decision, the MDL ruled in favor of a stipulated motion for partial summary judgment finding that all of the GS Cleantech patents in the suit were invalid and, therefore, not infringed. GS Cleantech ~~has said it will appeal this decision when~~

~~the remaining claim in the suit has been decided. If GS Cleantech successfully~~appealed these decisions. The federal appeals ~~the District Court’s findings of invalidity, damages awarded GS Cleantech may be $1 million or more.~~

The only remaining claim in the lawsuit alleges that GS Cleantech inequitably conducted itself before the United States Patent Office when obtaining the patents at issue. A trial in the District Court for the Southern District of Indiana on the single issue of inequitable conduct was held in October 2015. The MDL Court ruled that GS Cleantech and its attorneys engaged in inequitable conduct. GS Cleantech has asked the court ~~to amend its ruling. The defendants are seeking damages against GS Cleantech as a result of this finding of inequitable conduct. Recently the defendants settled with~~recently rejected GS Cleantech's ~~attorneys. We anticipate that if~~appeal and the ~~determination of inequitable conduct is not amended,~~Supreme Court recently denied GS ~~Cleantech will appeal this decision along with the summary judgment decision issued earlier.~~Cleantech's request for an additional appeal.

ITEM 4. MINE SAFETY DISCLOSURES

None.

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Outstanding Equity

As of March ~~2, 2018~~,11, 2021, we had ~~90,445~~64,560 units outstanding and approximately ~~1,286~~1,240 total members. On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest equity holder, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million. The Company believes that it has a binding agreement with Mr. Retterath. Mr. Retterath contends he is not bound by the agreement. The Company's position is that, as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on our balance sheet. The 90,445 membership units outstanding include the contested membership units the Company agreed to repurchase from Mr. Retterath.

Unit Trading

There is no established public trading market for our units. However, on February 5, 2008, we established the Unit Trading Bulletin Board, which is a private online matching service, in order to facilitate trading among our members. The Unit Trading Bulletin Board consists of an electronic bulletin board on our website that provides a list of interested buyers and a list of interested sellers, along with their non-firm price quotes. The Unit Trading Bulletin Board does not automatically effect matches between potential sellers and buyers and it is the sole responsibility of sellers and buyers to contact each other to negotiate an agreement to transfer units. We do not become involved in any purchase or sale negotiations arising from our Unit Trading Bulletin Board and have no role in effecting transactions beyond approval, as required under our operating agreement, and the issuance of new certificates. We do not give advice regarding the merits or shortcomings of any particular transaction. We do not receive, transfer or hold funds or securities as an incident of operating the Unit Trading Bulletin Board. We do not receive any compensation for creating or maintaining the Unit Trading Bulletin Board. In advertising our Unit Trading Bulletin Board, we do not characterize Homeland Energy Solutions as being a broker or dealer or an exchange. We do not use the Unit

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Trading Bulletin Board to offer to buy or sell securities other than in compliance with the securities laws, including any applicable registration requirements.

There are detailed time lines that must be followed under the Unit Trading Bulletin Board rules and procedures with respect to offers and sales of membership units, with which all transactions must comply. In addition, all transactions must comply with our operating agreement, and are subject to approval by our board of directors.

The following table contains historical information by quarter for the past two years regarding the actual unit transactions that were completed by our unit-holders during the periods specified. Some of these transfers were made without consideration and as such no price information is included. We believe this most accurately represents the current trading value of our units. The information was compiled by reviewing the completed unit transfers that occurred on the Unit Trading Bulletin Board or through private transfers during the quarters indicated.

Quarter Low Price High Price Average Price Number of Units Traded
First Quarter 2016 $ 1,650
$ 2,000
$ 1,824
132
Second Quarter 2016 $ 1,700
$ 2,000
$ 1,902
275
Third Quarter 2016 $ 1,750
$ 1,900
$ 1,837
221
Fourth Quarter 2016 $ 1,800
$ 1,800
$ 1,800
40
First Quarter 2017 $ —
$ —
$ —
—
Second Quarter 2017 $ 1,700
$ 2,250
$ 2,114
110
Third Quarter 2017 $ 2,200
$ 2,200
$ 2,200
25
Fourth Quarter 2017 $ 2,200
$ 2,600
$ 2,490
155


Quarter	Low Price		High Price		Average Price		Number of Units Traded
First Quarter 2019	$	2,750	$	3,000	$	3,000	10
Second Quarter 2019	$	2,750	$	2,800	$	2,773	54
Third Quarter 2019	$	2,500	$	2,800	$	2,571	35
Fourth Quarter 2019	$	—	$	—	$	—	—
First Quarter 2020	$	2,200	$	2,300	$	2,222	112
Second Quarter 2020	$	2,000	$	2,600	$	2,265	292
Third Quarter 2020	$	2,000	$	2,500	$	2,289	73
Fourth Quarter 2020	$	2,200	$	2,500	$	2,365	189

The following tables contain the bid and asked prices that were posted on the Unit Trading Bulletin Board and includes some transactions that were not completed. We believe the table above more accurately describes the trading value of our units as the bid and asked prices below include some offers that never resulted in completed transactions. The information was compiled by reviewing postings that were made on the Unit Trading Bulletin Board.


Sellers' Quarter	Low Price		High Price		Average Price		Number of Units Listed
First Quarter 2019	$	2,750	$	3,000	$	2,857	70
Second Quarter 2019	$	2,750	$	2,850	$	2,783	30
Third Quarter 2019	$	2,650	$	2,750	$	2,716	107
Fourth Quarter 2019	$	—	$	—	$	—	—
First Quarter 2020	$	2,300	$	3,300	$	2,500	175
Second Quarter 2020	$	—	$	—	$	—	—
Third Quarter 2020	$	—	$	—	$	—	—
Fourth Quarter 2020	$	2,500	$	2,500	$	2,500	25

Sellers' Quarter Low Price High Price Average Price Number of Units Listed
First Quarter 2016 $ 1,600
$ 1,900
$ 1,688
120
Second Quarter 2016 $ 1,850
$ 1,850
$ 1,850
150
Third Quarter 2016 $ —
$ —
$ —
—
Fourth Quarter 2016 $ —
$ —
$ —
—
First Quarter 2017 $ 5,000
$ 5,000
$ 5,000
25
Second Quarter 2017 $ 2,250
$ 2,250
$ 2,250
60
Third Quarter 2017 $ —
$ —
$ —
—
Fourth Quarter 2017 $ —
$ —
$ —
—


Buyers' Quarter	Low Price		High Price		Average Price		Number of Units Listed
First Quarter 2019	$	—	$	—	$	—	—
Second Quarter 2019	$	2,000	$	2,000	$	2,000	50
Third Quarter 2019	$	—	$	—	$	—	—
Fourth Quarter 2019	$	2,200	$	2,200	$	2,200	10
First Quarter 2020	$	2,000	$	2,200	$	2,075	65
Second Quarter 2020	$	—	$	—	$	—	—
Third Quarter 2020	$	2,200	$	2,300	$	2,233	30
Fourth Quarter 2020	$	2,000	$	2,400	$	2,057	140

Buyers' Quarter Low Price High Price Average Price Number of Units Listed
First Quarter 2016 $ 1,700
$ 1,700
$ 1,700
20
Second Quarter 2016 $ 1,650
$ 1,700
$ 1,672
45
Third Quarter 2016 $ 1,750
$ 1,800
$ 1,786
70
Fourth Quarter 2016 $ 1,830
$ 2,200
$ 1,966
70
First Quarter 2017 $ 1,850
$ 2,200
$ 1,976
248
Second Quarter 2017 $ 2,200
$ 2,250
$ 2,208
150
Third Quarter 2017 $ 2,250
$ 2,400
$ 2,280
100
Fourth Quarter 2017 $ 2,300
$ 2,500
$ 2,411
115

As a limited liability company, we are required to restrict the transfers of our membership units in order to preserve our partnership tax status. Our membership units may not be traded on any established securities market or readily traded on a secondary market (or the substantial equivalent thereof). All transfers are subject to a determination that the transfer will not cause us to be deemed a publicly traded partnership.

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Distributions

We paid distributions to our members in each of our last two fiscal years. Our board of directors paid two distributions during our 2017 fiscal year for a total of $255 per membership unit with total distributions equaling $16,469,175. Our board of directors paid two distributions during our 2016 fiscal year for a total of $499 per membership unit with total distributions equaling $32,227,915. No distributions were paid to the contested membership units which are subject to the Retterath litigation. Our board of directors has discretion over the timing and amount of distributions to our unit holders subject to certain financial covenants required by our senior credit facility and restrictions under Iowa law. Our operating agreement requires the board of directors to endeavor to make cash distributions at such times and in such amounts as will permit our unit holders to satisfy their income tax liability in a timely fashion. Our expectations with respect to our ability to make future distributions are discussed in greater detail in "Item 7 - Management's Discussion And Analysis Of Financial Condition And Results Of Operations."

Performance Graph

The following graph shows a comparison of cumulative total member return since December 31, ~~2012,~~2015, calculated on a dividend reinvested basis, for the Company, the NASDAQ Composite Index (the "NASDAQ Market Index") and an index of other companies that have the same SIC code as the Company (the "SIC Code Index"). The graph assumes $100 was invested in each of our units, the NASDAQ Market Index, and the SIC Code Index on December 31, ~~2012.~~2015. Data points on the graph are quarterly. Note that historic unit price performance is not necessarily indicative of future unit price performance. The data for this performance graph was compiled for us by Zacks Investment Research, Inc.

Pursuant to the rules and regulations of the Securities and Exchange Commission, the performance graph and the information set forth therein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 6. SELECTED FINANCIAL DATA

The following table presents selected financial and operating data as of the dates and for the periods indicated. The selected balance sheet financial data as of December 31, ~~2015, 2014~~2018, 2017 and ~~2013~~2016 and the selected income statement data and other financial data for the years ended December 31, ~~2014~~2017 and ~~2013~~2016 have been derived from our audited financial statements that are not included in this Form 10-K. The selected balance sheet financial data as of December 31, ~~2017~~2020 and ~~2016~~2019 and the selected income statement data and other financial data for each of the years in the three year period ended December 31, ~~2017~~2020 have been derived from the audited financial statements included elsewhere in this Form 10-K. You should read the following table in conjunction with "Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and the accompanying notes included elsewhere in this Form 10-K. Among other things, those financial statements include more detailed information regarding the basis of presentation for the following financial data.

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	2017		2016		2015		2014		2013			2020		2019		2018		2017		2016
Total Revenue	$	256,525,281	$	272,938,079	$	269,970,953	$	330,436,817	$	400,211,785	Total Revenue	$	281,386,439	$	329,774,685	$	307,400,097	$	256,525,281	$	272,938,079
Net Income	16,832,350		34,484,463		24,511,283		68,615,951		28,233,908		Net Income	6,075,000		19,476,753		19,766,205		16,832,350		34,484,463
Net Income Per Unit	260.62		533.94		379.52		1,062.41		359.48		Net Income Per Unit	94.10		301.68		306.09		260.62		533.94
Distributions Declared Per Unit	255.00		499.00		362.00		618.00		131.00		Distributions Declared Per Unit	150.00		350.00		220.00		255.00		499.00
Total Assets	225,298,068		198,784,899		18,699,229		188,507,073		174,078,126		Total Assets	175,539,220		222,959,992		225,593,652		225,298,068		198,784,899
Long-term Liabilities	23,936,683		123,190		350,059		419,904		15,303,526		Long-term Liabilities	1,479,063		15,081,767		17,950,754		23,936,683		123,190
Members' Equity	151,600,547		151,237,372		148,980,824		147,849,311		119,146,890		Members' Equity	150,366,555		153,975,555		157,094,802		151,600,547		151,237,372

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Comparison of Fiscal Years Ended December 31, ~~2017~~2020 and ~~2016~~2019

2017 2016
Income Statement Data Amount % Amount %
Revenue $ 256,525,281
100.0
$ 272,938,079
100.0

Cost of goods sold 236,834,163
92.3
235,786,636
86.4

Gross profit 19,691,118
7.7
37,151,443
13.6

Selling, general and administrative expenses 3,525,736
1.4
3,736,798
1.4

Operating income 16,165,382
6.3
33,414,645
12.2

Other income (expense) 666,968
0.3
1,069,818
0.4

Net income $ 16,832,350
6.6
$ 34,484,463
12.6

Our total revenue for our ~~2017~~2020 fiscal year was approximately 6%15% less than our total revenue for our ~~2016~~2019 fiscal ~~year~~.year. Management attributes this decrease in revenue primarily with decreased total production at the ethanol ~~and~~plant which resulted in decreased sales during our 2020 fiscal year along with lower average ethanol prices, partially offset by increased average distiller grains prices during our ~~2017 fiscal year~~. Our revenue is presented in our financial statements net of the shipping costs that are incurred in transporting our products to the end customer. These shipping charges are deducted by our marketers from the amounts realized on the sale of our ethanol, distiller grains and corn oil.

~~For our~~ ~~2017 fiscal year, our total ethanol revenue decreased by approximately~~ 4% ~~compared to our~~ ~~2016 fiscal year~~ ~~due to lower average ethanol prices along with slightly increased ethanol gallons sold. The average price we received for our ethanol during our~~ ~~2017 fiscal year~~ ~~was approximately~~ 4% ~~less than during our~~ ~~2016 fiscal year~~. Management attributes this decrease in ethanol prices with a greater supply of ethanol in the market which was not met by corresponding increases in ethanol demand. While export demand was strong during 2017, the ethanol tariffs imposed by Brazil and China negatively impacted market ethanol prices and limited ethanol demand. Many ethanol producers expanded their production capacities during 2017 and others are expected to complete expansions in 2018 which may continue to result in excess market ethanol supplies which could further impact market ethanol prices.

Management anticipates that ethanol prices will be lower during our 2018 fiscal year due to anticipated increased market supply of ethanol which may not be met by demand. If export demand is stronger in 2018 compared to 2017 it may reduce the supply and demand imbalance which could positively impact ethanol prices. However, export demand is less reliable compared to domestic demand. If ethanol supply increases at a greater pace compared to ethanol demand during our 2018 fiscal year it could further erode market ethanol prices and could negatively impact our profitability.

~~We sold slightly more gallons of ethanol during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~. Management attributes this increase in total production of ethanol with improved operating efficiency and plant performance during the 2017 period partially offset by increased plant downtime as a result of our plant expansion project which was substantially completed during our 2017 fiscal year. Management anticipates that our ethanol production during our 2018 fiscal year will be significantly higher than during our 2017 fiscal year due to our plant expansion project, which was substantially completed in late 2017.

~~Our total distiller grains revenue was approximately 21% less during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~ ~~primarily due to lower distiller grains prices and decreased tons of distiller grains sold. We sold approximately 8% fewer tons of distiller grains during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~ due to our increased corn oil production during the 2017 period. As we extract more corn oil from our distiller grains, it reduces the volume of distiller grains we have for sale. The average prices we received for our distiller grains were lower during our ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~ due primarily to decreased distiller grains exports to China along with increased corn supplies. Due to the Chinese trade issues, this major source of distiller grains demand was significantly decreased during our 2017 fiscal year. We primarily sell our

~~Our revenue from corn oil sales was greater during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016, due to higher corn oil prices along with increased total pounds of corn oil sold. The average price we received for our corn oil during our~~ ~~2017 fiscal year~~ ~~was approximately 1% greater than the average price we received during the same period of~~ ~~2016. Management attributes this increase in corn oil prices with increased corn oil demand from the biodiesel industry during 2017.~~

~~We produced approximately 10% more pounds of corn oil during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~. Management attributes this increase in corn oil production with increased production by the ethanol plant, generally, along with an increase in the amount of corn oil we removed from our distiller grains during our 2017 fiscal year through optimizing our corn oil extraction.

Management anticipates that corn oil prices may be lower during our 2018 fiscal year since the biodiesel blenders' tax credit was not extended to 2018 leading to uncertainty regarding future biodiesel demand. In addition, the RVO for advanced biofuels under the RFS, which is used by many biodiesel producers, was lower than anticipated for 2018 which may further limit demand for biodiesel. Further, management anticipates stronger corn oil production during our 2018 fiscal year due to anticipated increases in production capacity which may further impact corn oil prices.

~~Cost of Goods Sold~~

~~Our two primary costs of producing ethanol, distiller grains and corn oil are corn costs and natural gas costs. Our total cost of goods sold was compareable during our~~ ~~2017 fiscal year~~ ~~and our~~ ~~2016~~ ~~fiscal year due to the net effect of lower corn costs offset by higher natural gas costs.~~

~~The average price we paid per bushel of corn was approximately~~ 2% ~~lower during our~~ ~~2017 fiscal year~~ ~~compared to our~~ ~~2016 fiscal year. Management attributes this decrease in the average price we paid per bushel of corn with lower market corn prices during our~~ ~~2017 fiscal year~~ ~~compared to our~~ ~~2016 fiscal year~~ due to strong corn crops in recent years which have increased corn carry-over. Management anticipates that corn prices will remain lower during our 2018 fiscal year due to the large corn supply and relatively stable corn demand. In addition to the lower corn prices, our cost of goods sold was lower during our 2017 fiscal year due to approximately $3.8 million in combined realized and unrealized gains on our corn risk management positions which reduced our cost of goods sold during our ~~2017 fiscal year. During our~~ ~~2016 fiscal year, we experienced a combined realized and unrealized gain on our risk management positions of approximately $4.2 million which reduced our cost of goods sold during our~~ ~~2016 fiscal year~~.

~~We purchased approximately 1% fewer bushels of corn during our~~ ~~2017 fiscal year~~ ~~compared to our~~ ~~2016 fiscal year. Management attributes this decrease in corn consumption with increased corn to ethanol conversion efficiency during the~~ ~~2017~~ period. Management anticipates that our corn consumption will be greater during our 2018 fiscal year compared to our 2017 fiscal year due to anticipated increases in our ethanol production during our 2018 fiscal year related to our completed plant expansion.

~~During our~~ ~~2017 fiscal year, the average price we paid per MMBtu of natural gas was approximately~~ ~~27%~~ ~~greater compared to our~~ ~~2016 fiscal year~~. Management attributes this increase in natural gas prices to colder weather during November and December 2017 which led to a spike in natural gas prices along with higher energy prices generally during our 2017 fiscal year. We expect continued higher natural gas prices during winter months of our 2018 fiscal year due to continued colder weather. Further, if we experience a supply disruption during our 2018 fiscal year, it may lead to significantly higher natural gas costs. We consumed approximately 5% ~~more natural gas during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~, primarily due to increased production at the ethanol plant along with our steam turbine which converts steam to electricity which we use at the ethanol plant. We expect our natural gas consumption will be significantly higher during our 2018 fiscal year due to our completed plant expansion.

~~Selling, General and Administrative Expenses~~

~~Our selling, general and administrative expenses were less during our~~ ~~2017 fiscal year~~ ~~compared to our~~ ~~2016 fiscal year~~ ~~due primarily to fewer dues to industry trade groups and decreased employee bonuses that are partially calculated on net income.~~

~~Other Income (Expense)~~

~~We had interest expense during our~~ ~~2017 fiscal year~~ ~~due to borrowing we incurred related to our plant expansion project. We had more interest income during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~ ~~due to having more cash on hand during the 2017 period. We had less other income during our~~ ~~2017 fiscal year~~ ~~compared to the same period of~~ ~~2016~~ ~~primarily due to having less net earnings on trading securities along with decreased investment income from our investment in RPMG, our ethanol and corn oil marketer.~~

2016 2015
Income Statement Data Amount % Amount %
Revenue $ 272,938,079
100.0
$ 269,970,953
100.0

Cost of goods sold 235,786,636
86.4
242,628,553
89.9

Gross profit 37,151,443
13.6
27,342,400
10.1

Selling, general and administrative expenses 3,736,798
1.4
3,618,821
1.3

Operating income 33,414,645
12.2
23,723,579
8.8

Other income (expense) 1,069,818
0.4
787,704
0.3

Net income $ 34,484,463
12.6
$ 24,511,283
9.1

Our total revenue for our 2016 fiscal year was approximately 1% greater than our total revenue for our 2015 fiscal year. Management attributes this increase in revenue primarily with increased ethanol and corn oil revenue, partially offset by decreased distiller grains revenue for our 2016 fiscal year compared to our 20152020 fiscal year. Our revenue is presented in our financial statements net of the shipping costs that are incurred in transporting our products to the end customer. These shipping charges are deducted by our marketers from the amounts realized on the sale of our ethanol, distiller grains and corn oil.

For our ~~2016~~2020 fiscal year, our total ethanol revenue ~~increased~~decreased by approximately 7%18% compared to our ~~2015~~2019 fiscal year due to ~~higher average ethanol prices~~decreased production which was a result of poor market conditions, partially attributable to the COVID-19 pandemic along with ~~increased~~a decrease in the average price we received for the ethanol we sold during our 2020 fiscal year. The gallons ~~sold.~~of ethanol we sold during our 2020 fiscal year decreased by approximately 9% compared to our 2019 fiscal year. This decrease in ethanol sales resulted from decreased ethanol production at the ethanol plant. The average price we received for our ethanol during our ~~2016~~2020 fiscal year was approximately ~~1% greater~~9% less than during our ~~2015~~2019 fiscal year. Management attributes this ~~increase~~decrease in ethanol prices ~~with increased~~to decreased gasoline prices and ~~higher export~~ demand during our ~~2016~~2020 fiscal year. ~~While we believe ethanol prices were impacted by uncertainty related~~During much of our 2020 fiscal year, gasoline demand was lower due to the ~~corn-based~~COVID-19 pandemic. Many states instituted travel restrictions and other social distancing measures which resulted in significantly lower gasoline demand. COVID-19 impacted travel throughout the world which also impacted ethanol ~~requirement in~~exports during our 2020 fiscal year. Since ethanol is primarily blended with gasoline, when gasoline demand is lower it has a corresponding impact on ethanol demand. While gasoline demand rebounded during the ~~RFS,~~summer of 2020, gasoline demand has remained lower for our entire 2020 fiscal year. Management expects that gasoline demand will remain lower during the first two quarters of our 2021 fiscal year due to the continuing impact of the COVID-19

pandemic. However, management believes that as COVID-19 vaccines are distributed, it may result in an easing of travel restrictions and social distancing measures which may result in increased gasoline demand. Increased gasoline demand is expected to have a positive impact on ethanol demand and ~~increased export demand positively impacted market ethanol prices which increased the average price we received for our ethanol.~~prices.

~~We sold~~ Our total distiller grains revenue was approximately ~~6% more gallons of ethanol~~5% less during our ~~2016~~2020 fiscal year compared to the same period of ~~2015. Management attributes this increase in total production of ethanol with improved operating efficiency and plant performance during the 2016 period.~~

~~Our total~~2019 primarily due to decreased distiller grains ~~revenue was approximately 22% less~~production during our ~~2016~~2020 fiscal year, partially offset by increased distiller grains average prices during our 2020 fiscal year. We sold approximately 10% less tons of distiller grains during our 2020 fiscal year compared to the same period of ~~2015 primarily~~2019 due to ~~lower distiller grains prices. We sold approximately 1% more tons of distiller grains during~~ our ~~2016 fiscal year compared to the same period of 2015 due to an~~decreased overall ~~increase in production during the 2016 period partially offset by an increase in corn oil extractions.~~production. The average prices we received for our distiller grains were ~~lower~~greater during our ~~2016~~2020 fiscal year compared to the same period of ~~2015~~2019 due primarily to ~~decreased distiller grains exports to China along with~~ increased ~~corn supplies. Due to the Chinese trade issues, this major source of~~ distiller grains demand ~~was significantly~~and decreased ~~during~~market supply of distiller grains. We primarily sell our ~~2016 fiscal year.~~distiller grains in the dried form based on market conditions which favor this product, however we still sell a small portion of our distillers grains in the modified form. The average price we received per ton of dried distiller grains sold ~~decreased~~increased by approximately ~~23%~~4% during our ~~2016~~2020 fiscal year compared to the same period of ~~2015.~~

~~Our revenue from corn oil sales was greater~~2019. The average price we received per ton of modified distiller grains sold increased by approximately 61% during our ~~2016~~2020 fiscal year compared to the same period of ~~2015,~~2019. Since distiller grains are primarily used as an animal feed substitute for corn and soybean meal, the price of distiller grains is impacted by these competing products. Management anticipates relatively stable distiller grains prices during our 2021 fiscal year unless corn and soybean production is lower or export demand for these products increases, especially if export issues between China and the United States are resolved. If China reenters the market for United States agricultural products, it could quickly result in higher corn, soybean and distiller grains prices.

Our revenue from corn oil sales was approximately 8% greater during our 2020 fiscal year compared to the same period of 2019, due to ~~higher~~increased corn oil production and prices ~~along with increased total pounds of~~for the corn oil ~~sold.~~we sold during our 2020 fiscal year. The average price we received for our corn oil during our ~~2016~~2020 fiscal year was approximately 8%2% greater than the average price we received during the same period of ~~2015.~~2019. Management attributes this increase in corn oil prices with ~~increased~~decreased corn oil ~~demand from~~supply during 2020. Recently the biodiesel ~~industry during 2016.~~blenders' tax credit was renewed for prior years and until December 31, 2022. Management expects that added certainty in the biodiesel blenders' credit will support current corn oil prices.

We ~~produced~~sold approximately ~~22%~~6% more pounds of corn oil during our ~~2016~~2020 fiscal year compared to the same period of ~~2015.~~2019. Management attributes this increase in corn oil ~~production with~~sales to increased ~~production by the ethanol plant, generally, along with an increased in the amount~~corn oil produced per bushel of corn ~~oil we removed from our distiller grains during our 2016 fiscal year. We~~used and increased ~~the amount of corn oil we removed from our distiller grains through changes in~~operating time for our corn oil extraction ~~process.~~equipment. Management expects corn oil production to be comparable during our 2021 fiscal year compared to our 2020 fiscal year.

Our two primary costs of producing ethanol, distiller grains and corn oil are corn costs and natural gas costs. Our total cost of goods sold was ~~approximately 3% less~~lower during our ~~2016~~2020 fiscal year compared to ~~the same period of 2015~~our 2019 fiscal year due to ~~lower~~decreased consumption of corn and natural gas, ~~prices partially offset by higher~~along with lower average corn ~~and natural gas consumption.~~costs per bushel during our 2020 fiscal year compared to our 2019 fiscal year.

The average price we paid per bushel of corn was approximately ~~7% lower~~8% less during our ~~2016~~2020 fiscal year compared to our ~~2015~~2019 fiscal year. Management attributes this decrease in the average price we paid per bushel of corn with lower ~~market~~ corn ~~prices~~demand during our 2016 fiscal year compared to our 2015 fiscal year. Management attributes the decrease in market corn prices to a strong corn crop during the fall of 2015 along with a record corn crop harvested in the fall of 2014 which resulted in a large corn carryover. In addition, growing conditions were favorable during our 2016 fiscal year which management believes drove corn prices lower during 2016.

~~In addition to the lower corn prices, our cost of goods sold was lower during our 2016~~2020 fiscal year due to ~~approximately $4.2 million~~reduced ethanol production which is a major source of corn demand. Towards the end of our 2020 fiscal year, our average corn costs per bushel were higher due to increased ethanol production along with localized decreased corn production in our local market. Management anticipates that corn prices will remain at current levels during our 2021 fiscal year, unless Chinese export demand increases significantly which could result in higher corn prices and demand. During our 2020 fiscal year we had combined realized and unrealized ~~gains~~losses on our corn and natural gas risk management positions of approximately $5.5 million, which ~~reduced~~increased our cost of goods sold during our ~~2016~~2020 fiscal year. During our ~~2015~~2019 fiscal year, we experienced a combined realized and unrealized gain on our risk management positions of approximately ~~$2.0~~$4.5 million which reduced our cost of goods sold during our ~~2015~~2019 fiscal year.

We purchased approximately 6% ~~more~~fewer bushels of corn during our ~~2016~~2020 fiscal year compared to our ~~2015~~2019 fiscal year. Management attributes this ~~increase~~decrease in corn consumption with decreased production during our 2020 fiscal year due to reduced run rates in the ethanol plant during early in the 2020 fiscal year. Management anticipates that our corn consumption will be higher during our 2021 fiscal year compared to our 2020 fiscal year because we currently anticipate increased production during ~~the 2016 period. We also experienced a slight improvement in~~ our ~~corn to ethanol conversion ratio.~~2021 fiscal year.

During our ~~2016~~2020 fiscal year, the average price we paid per MMBtu of natural gas was approximately ~~17%~~1% less compared to our ~~2015~~2019 fiscal year. Management attributes this decrease in natural gas prices to lower market energy prices ~~generally, during our 2016 fiscal year along with~~and demand which impacted natural gas prices. In addition, we entered into natural gas price lock agreements for most of 2020

which helped avoid natural gas price spikes. Management expects relatively ~~mild weather during the winter months during our 2016 fiscal year. We expect higher~~stable natural gas prices during ~~winter months due to annual increases in natural gas transportation costs.~~our 2021 fiscal year because we anticipate securing price lock agreements for a percentage of our 2021 anticipated usage. We consumed approximately ~~1% more~~4% less natural gas during our ~~2016~~2020 fiscal year compared to the same period of ~~2015,~~2019, primarily due to decreased production at the ethanol plant. We expect our natural gas consumption to be higher during our 2021 fiscal year as we anticipate increased production at the ethanol plant during our 2021 fiscal year.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses were less during our 2020 fiscal year compared to our 2019 fiscal year due primarily to decreased dues and subscriptions, and decreased employee related expenses, partially offset by increased legal expense, insurance costs and property taxes.

Other Income (Expense)

We had less interest expense during our 2020 fiscal year compared to our 2019 fiscal year due to decreasing principal amounts outstanding on our loans as scheduled principal payments are paid and the pay off of the term debt in 2020. We had more interest income during our 2020 fiscal year compared to the same period of 2019 due to having more cash on hand for portions of the 2020 period. We had more other income during our 2020 fiscal year compared to the same period of 2019 primarily due to Small Business Administration Payroll Protection Program funds as well as Iowa Economic relief funds.

Comparison of Fiscal Years Ended December 31, 2019 and 2018

Our total revenue for our 2019 fiscal year was approximately 7% greater than our total revenue for our 2018 fiscal year. Management attributes this increase in revenue primarily with increased total production at the ethanol plant which resulted in increased sales during our 2019 fiscal year, partially offset by decreased average distiller grains prices. Our revenue is presented in our financial statements net of the shipping costs that are incurred in transporting our products to the end customer. These shipping charges are deducted by our marketers from the amounts realized on the sale of our ethanol, distiller grains and corn oil.

For our 2019 fiscal year, our total ethanol revenue increased by approximately 10% compared to our 2018 fiscal year due to increased production due to increased efficiency operating our expanded ethanol plant along with a slight increase in the average price we received for the ethanol we sold during our 2019 fiscal year. The gallons of ethanol we sold during our 2019 fiscal year increased by approximately 5% compared to our 2018 fiscal year. This increase in ethanol sales resulted from increased ethanol production at the ethanol plant. The average price we received for our ethanol during our 2019 fiscal year was approximately 4% greater than during our 2018 fiscal year. Management attributes this increase in ethanol prices to increased corn prices along with a decreased market supply of ethanol due to unfavorable operating conditions in the ethanol industry which resulted in some ethanol producers decreasing production or ceasing operation altogether. Ethanol demand was significantly impacted by EPA's small refinery exemption waivers from the ethanol blending requirements in the Renewable Fuels Standard.

Our total distiller grains revenue was approximately 4% less during our 2019 fiscal year compared to the same period of 2018 primarily due to decreased average distiller grains prices, partially offset by increased distiller grains production during our 2019 fiscal year. We sold approximately 3% more tons of distiller grains during our 2019 fiscal year compared to the same period of 2018 due to our increased overall production. The average prices we received for our distiller grains was less during our 2019 fiscal year compared to the same period of 2018 due primarily to decreased distiller grains demand. We primarily sell our distiller grains in the dried form based on market conditions which favor this product, however we still sell a small portion of our distillers grains in the modified form. The average price we received per ton of dried distiller grains sold decreased by approximately 6% during our 2019 fiscal year compared to the same period of 2018. The average price we received per ton of modified distiller grains sold decreased by approximately 31% during our 2019 fiscal year compared to the same period of 2018.

Our revenue from corn oil sales was approximately 12% greater during our 2019 fiscal year compared to the same period of 2018, due to increased corn oil production and prices for the corn oil we sold during our 2019 fiscal year. The average price we received for our corn oil during our 2019 fiscal year was approximately 4% greater than the average price we received during the same period of 2018. Management attributes this increase in corn oil prices with decreased corn oil supply during 2019. Recently the biodiesel blenders' tax credit was renewed for prior years and until December 31, 2022. Management expects that added certainty in the biodiesel blenders' credit will result in higher corn oil prices.

We sold approximately 7% more pounds of corn oil during our 2019 fiscal year compared to the same period of 2018. Management attributes this increase in corn oil sales with increased production by the ethanol plant, generally.

Our total cost of goods sold was higher during our 2019 fiscal year compared to our 2018 fiscal year due to increased consumption of corn and natural gas, along with higher average corn costs per bushel during our 2019 fiscal year compared to our 2018 fiscal year.

The average price we paid per bushel of corn was approximately 5% greater during our 2019 fiscal year compared to our 2018 fiscal year. Management attributes this increase in the average price we paid per bushel of corn with late planting and a late harvest in 2019 which led to uncertainty about the size and quality of the 2019 corn crop. In addition, the amount of corn harvested in the fall of 2019 was less than in previous years which impacted corn prices later in the year. During our 2019 fiscal year we have realized and unrealized gains on our corn and natural gas risk management positions of approximately $4.5 million, which decreased our cost of goods sold during our 2019 fiscal year. During our 2018 fiscal year, we experienced a combined realized and unrealized gain on our risk management positions of approximately $2.9 million which reduced our cost of goods sold during our 2018 fiscal year.

We purchased approximately 7% more bushels of corn during our 2019 fiscal year compared to our 2018 fiscal year. Management attributes this increase in corn consumption with increased production during our 2019 fiscal year due to improved operation of the ethanol plant during our 2019 fiscal year.



HOMELAND ENERGY SOLUTIONS, LLC
(Exact name of registrant as specified in its charter)

Iowa	20-3919356
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2779 Highway 24 ~~Lawler, Iowa~~	Lawler	52154
(Address of principal executive offices)	IA	(Zip Code)

(563)	238-5555
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

~~Securities registered pursuant to Section 12(g) of the Act:~~ ~~Membership Units~~


		Page No.
		~~Page No.~~
Part I	3
Item 1. Business		34
Item 1A. Risk Factors		1112
Item 2. Properties		1617
Item 3. Legal Proceedings		1617
Item 4. Mine Safety Disclosures		18

Part II		18
Item 5. Market for Registrant's Common Equity, Related Member Matters and Issuer Purchases of Equity Securities		18
Item 6. Selected Financial Data		20
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations		21
Item 7A. Quantitative and Qualitative Disclosures About Market Risk		2829
Item 8. Financial Statements and Supplementary Data		3031
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		4648
Item 9A. Controls and Procedures		4648
Item 9B. Other Information		4749

Part III		4849
Item 10. Directors, Executive Officers and Corporate Governance		4849
Item 11. Executive Compensation		4849
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Member Matters		4849
Item 13. Certain Relationships and Related Transactions, and Director Independence		4849
Item 14. Principal Accounting Fees and Services		4850

Part IV		4850
Item 15. Exhibits and Financial Statement Schedules		4850
Item 16. Form 10-K Summary		5254

Signatures		5255


Balance Sheet Data	December 31, 2020		December 31, 2019
Total current assets	$	39,328,153	$	87,173,152
Total property and equipment	128,534,219		126,554,986
Total other assets	7,676,848		9,231,854
Total Assets	$	175,539,220	$	222,959,992

Total current liabilities	23,693,602		$	53,902,670
Total long-term liabilities	1,479,063		15,081,767
Total members' equity	150,366,555		153,975,555
Total Liabilities and Members' Equity	$	175,539,220	$	222,959,992



Balance Sheet Data	December 31, 2017		December 31, 2016
Total current assets	$	80,646,235	$	76,835,075
Total property and equipment	140,443,170		117,806,502
Total other assets	4,208,663		4,143,322
Total Assets	$	225,298,068	$	198,784,899

Total current liabilities	$	49,760,838	$	47,424,337
Total long-term liabilities	23,936,683		123,190
Total members' equity	151,600,547		151,237,372
Total Liabilities and Members' Equity	$	225,298,068	$	198,784,899



	2017			2016
Net cash provided by operating activities	$	31,611,491		$	40,386,461
Net cash (used in) investing activities	(29,672,565		)	(14,246,581		)
Net cash provided by (used in) financing activities	13,460,658			(32,227,915		)
Cash at beginning of period	14,168,643			20,256,678
Cash at end of period	$	29,568,227		$	14,168,643


Title of each class	Trading Symbol(s)	Name of each exchange on which registered


Product	Fiscal Year 2020		Fiscal Year 2019		Fiscal Year 2018
Ethanol	75	%	78	%	76	%
Distiller Grains	20	%	18	%	20	%
Corn Oil	5	%	4	%	4	%



Product	Fiscal Year 2017		Fiscal Year 2016		Fiscal Year 2015
Ethanol	81	%	79	%	75	%
Distiller Grains	14	%	17	%	22	%
Corn Oil	5	%	4	%	3	%


Company	Current Capacity (MMgy)	Percent of Market
Archer Daniels Midland	1,716	10%
POET Biorefining	1,805	10%
Valero Renewable Fuels	1,730	10%
Green Plains Renewable Energy	1,128	6%
Flint Hills Resources	840	5%


Year		Total Renewable Volume Obligation	Total Renewable Volume Obligation For Corn-based Ethanol
2017	Statutory	24.00	15.00
	EPA Rule	19.28	15.00
2018	Statutory	26.00	15.00
	EPA Rule	19.29	15.00
2019	Statutory	28.00	15.00
	EPA Rule	19.92	15.00
2020	Statutory	30.00	15.00
	EPA Rule	20.09	15.00


	2020			2019
Income Statement Data	Amount		%	Amount		%
Revenue	$	281,386,439	100.0	$	329,774,685	100.0

Cost of goods sold	273,607,219		97.2	307,650,836		93.3

Gross profit	7,779,220		2.8	22,123,849		6.7

Selling, general and administrative expenses	3,719,110		1.3	3,885,532		1.2

Operating income	4,060,110		1.4	18,238,317		5.5

Other income	2,014,890		0.7	1,238,436		0.4

Net income	$	6,075,000	2.2	$	19,476,753	5.9


	Payment Due By Period
Contractual Cash Obligations	Total		Less than One Year		One to Three Years		Three to Five Years		After Five Years

Operating Lease Obligations	$	3,297,000	$	1,752,000	$	1,455,000	$	90,000	$	—
Purchase Obligations	33,680,000		33,680,000		—		—		—
Total Contractual Cash Obligations	$	36,977,000	$	35,432,000	$	1,455,000	$	90,000	$	—


	Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)	Unit of Measure	Hypothetical Adverse Change in Price	Approximate Adverse Change to Income
Natural Gas	4,510,000	MMBTU	10%	$	1,398,100
Ethanol	195,000,000	Gallons	10%	27,300,000
Corn	57,000,000	Bushels	10%	27,075,000


	December 31, 2020		December 31, 2019
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	5,072,227	$	17,274,703
Trading securities	0		42,508,451
Accounts receivable	4,121,778		7,159,632
Derivative instruments	840,857		799,484
Inventory	24,459,408		15,311,396

Prepaid and other	4,833,883		4,119,486
Total current assets	39,328,153		87,173,152

PROPERTY AND EQUIPMENT
Land and improvements	23,260,902		23,181,342
Buildings	8,777,302		8,777,302
Equipment	240,429,826		222,979,738
Construction in progress	620,832		722,507
	273,088,862		255,660,889
Less accumulated depreciation	144,554,643		129,105,903
Total property and equipment	128,534,219		126,554,986

OTHER ASSETS

Right of use asset operating leases, net	3,116,941		4,678,365
Utility rights, net of accumulated amortization of $1,864,769 and $1,728,386	443,260		579,643
Other assets	4,116,647		3,973,846
Total other assets	7,676,848		9,231,854

TOTAL ASSETS	$	175,539,220	$	222,959,992


	December 31, 2020		December 31, 2019
LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	20,836,019	$	14,834,053
Due to former member	0		30,000,000


Accrued expenses	1,219,705		1,507,195

Current maturities of long term debt	0		6,000,000
Current portion operating lease liability	1,637,878		1,561,422
Total current liabilities	23,693,602		53,902,670

COMMITMENTS AND CONTINGENCIES (Note 5)	0		0

LONG-TERM LIABILITIES
Term revolving loan	0		11,964,824


Operating lease liability	1,479,063		3,116,943
Total long-term liabilities	1,479,063		15,081,767

MEMBERS' EQUITY (64,560 units issued and outstanding)	150,366,555		153,975,555

TOTAL LIABILITIES AND MEMBERS' EQUITY	$	175,539,220	$	222,959,992


	Members'
	Equity






Balance, December 31, 2017	$	151,600,547
Redemption of 25 Membership Units	(65,000)
Distributions	(14,206,950)
Net Income	19,766,205
Balance, December 31, 2018	157,094,802
Distributions	(22,596,000)
Net Income	19,476,753
Balance, December 31, 2019	153,975,555
Distributions	(9,684,000)
Net Income	6,075,000
Balance, December 31, 2020	$	150,366,555



	Members'
	Equity
Balance, December 31, 2014	$	147,849,311
Distributions	(23,379,770		)
Net Income	24,511,283
Balance, December 31, 2015	148,980,824
Distributions	(32,227,915		)
Net Income	34,484,463
Balance, December 31, 2016	151,237,372
Distributions	(16,469,175		)
Net Income	16,832,350
Balance, December 31, 2017	$	151,600,547


1.	~~Nature of Business and Significant Accounting Policies~~


	Estimated Useful Life in Years
	Minimum	Maximum
Land Improvements	20	40
Buildings	10	40
Equipment	7	40


2021	136,000
2022	136,000
2023	136,000
2024	35,000

Total amortization	$	443,000


	2020		2019
Raw Materials	$	15,909,576	$	10,757,505
Work in Process	2,923,041		2,617,916
Finished Goods	5,626,791		1,935,975
Totals	$	24,459,408	$	15,311,396



2018	3,787,000
2019	947,000
Total anticipated commitments	$	4,734,000



2018	$	1,269,000
2019	1,127,000
2020	1,127,000
2021	1,127,000
2022	412,000
Total lease commitments	$	5,062,000


Undiscounted future payments	$	3,297,000
Discount effect	(180,059)
	$	3,116,941


	Income Statement Classification	Realized Gain (Loss)		Change In Unrealized Gain (Loss)		Total Gain (Loss)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2020.
	Revenue	$	(1,177,000)	$	0	$	(1,177,000)
	Cost of Goods Sold	$	1,783,000	$	(7,325,000)	$	(5,542,000)

	Total	$	606,000	$	(7,325,000)	$	(6,719,000)

Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2019.
	Cost of Goods Sold	$	3,530,000	$	927,000	$	4,457,000

	Total	$	3,530,000	$	927,000	$	4,457,000

Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2018.
	Cost of Goods Sold	$	2,957,000	$	(48,000)	$	2,909,000

	Total	$	2,957,000	$	(48,000)	$	2,909,000


	Balance Sheet Classification	December 31, 2020		December 31, 2019
Futures and option contracts
In gain position		$	0	$	1,126,000
In loss position		(6,233,000)		(37,000)
Cash held by (due to) broker		7,074,000		(290,000)
	Current Asset	$	841,000	$	799,000


	Total		Level 1		Level 2		Level 3
Trading Securities
December 31, 2020
Assets	$	0	$	0	$	0	$	0
December 31, 2019
Assets	$	42,508,000	$	42,508,000	$	0	$	0
Derivative financial instruments
December 31, 2020

Liabilities	$	(6,233,000)	$	(6,233,000)	$	0	$	0
December 31, 2019
Assets	$	1,126,000	$	1,126,000	$	0	$	0
Liabilities	(37,000)		(37,000)		0		0


2020	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total Revenues	$	65,037,238	$	63,862,205	$	73,396,939	$	79,090,057
Gross Profit (Loss)	(3,927,585)		4,577,977		8,128,255		(999,427)
Operating Income (Loss)	(4,932,598)		3,746,721		7,150,515		(1,904,528)
Net Income (Loss)	(5,248,565)		3,961,822		7,256,014		105,729
Basic & diluted earnings (Loss) per unit	$	(81)	$	61	$	112	$	2

2019	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total Revenues	$	82,074,397	$	84,860,557	$	76,896,475	$	85,628,405
Gross Profit	5,567,871		4,600,109		4,527,443		7,428,426
Operating Income	4,402,367		3,621,216		3,801,180		6,413,554
Net Income	4,719,055		4,259,845		3,990,592		6,507,261
Basic & diluted earnings per unit	$	73	$	66	$	62	$	101

2018	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total Revenues	$	76,622,447	$	84,188,461	$	77,391,884	$	69,197,305
Gross Profit	5,926,327		12,090,427		7,436,293		(1,602,151)
Operating Income (Loss)	5,181,254		10,987,670		6,540,911		(2,517,095)
Net Income (Loss)	5,072,754		10,700,036		6,404,067		(2,410,652)
Basic & diluted earnings (loss) per unit	$	79	$	166	$	99	$	(38)



		HOMELAND ENERGY SOLUTIONS, LLC

Date:	March ~~2, 2018~~11, 2021	/s/ James Broghammer
		James Broghammer
		President and Chief Executive Officer (Principal Executive Officer)

Date:	March ~~2, 2018~~11, 2021	/s/ Beth Eiler
		Beth Eiler
		Chief Financial Officer (Principal Financial Officer)


Date:		March 11, 2021	/s/ Nick Bowdish
			Nick Bowdish, Director

Date:		March ~~2, 2018~~11, 2021	~~/s/ Nick Bowdish~~
		~~Nick Bowdish, Director~~

~~Date:~~	~~March 2, 2018~~	/s/ Patrick Boyle
			Patrick Boyle, Vice Chairman and Director

Date:		March ~~2, 2018~~11, 2021	/s/ Randy Bruess
			Randy Bruess, Director

Date:		March ~~2, 2018~~11, 2021	/s/ Steven Core
			Steven Core, ~~Chairman and~~ Director

Date:		March ~~2, 2018~~11, 2021	/s/ Mathew Driscoll
			Mathew Driscoll, Secretary and Director

Date:		March ~~2, 2018~~11, 2021	/s/ Leslie Hansen
			Leslie Hansen, Director

Date:		March ~~2, 2018~~11, 2021	/s/ Maurice Hyde
			Maurice Hyde, Chairman and Director

Date:		March ~~2, 2018~~11, 2021	/s/ Chad Kuhlers
			Chad Kuhlers, Director

Date:		March ~~2, 2018~~11, 2021	/s/ Christine Marchand
			Christine Marchand, Director