2018 $ 3,000,000
2019 6,000,000
2020 6,000,000
2021 6,000,000
2022 6,000,000
Thereafter 3,000,000
Total principal payments $ 30,000,000

Homeland Energy Solutions, LLC

Notes to Unaudited Financial Statements

unused portion of the revolving line of credit equal to 0.30%. The maturity date of this revolving line of credit is November 6, 2025. There was 0 balance outstanding on the revolving line of credit as of March 31, 2022 or December 31, 2021.

Covenants

During the term of the loans, the Company is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and capital expenditures and maintenance of certain financial ratios including the minimum working capital and a fixed charge ratio as defined by the Master Loan Agreement. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. The Company is in compliance with all ~~debt~~financial covenants as of ~~September 30, 2017.~~March 31, 2022.

4. RELATED PARTY TRANSACTIONS

~~Due to former member~~

On June 13, 2013, we entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company 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 the scheduled date 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 of the repurchase agreement. The Company is asking the Iowa state court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms.

Mr. Retterath contends he is not bound by the agreement. The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, in 2013 the Company recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and correspondingly reduced members' equity on the balance sheet. If the Company is ultimately unsuccessful in its lawsuit against Mr. Retterath, the Company will reevaluate the accounting considerations made during the period of time that the lawsuit is pending.

~~Other matters~~

The Company has purchased corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and March 31, 2021 totaled approximately ~~$1,019,000~~$2,434,000 and ~~$10,178,000, respectively, and during the three and nine months ended September 30, 2016 totaled approximately $3,480,000 and $7,861,000,~~$2,036,000, respectively. ~~There were no amounts~~Amounts due to these members were approximately $6,500 and none at ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016.~~2021, respectively.

5. COMMITMENTS, CONTINGENCIES, ~~AND~~ AGREEMENTS

Ethanol, corn oil, and distiller grains marketing agreements and major customers

The Company has entered into a marketing agreement with RPMG, a related party, to sell all denatured fuel ethanol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of ~~September 30, 2017~~,March 31, 2022, the Company had no commitments to sell any of its produced gallons of ethanol at fixed prices and 35approximately 45 million of its produced gallons of ethanol at basis price levels indexed against exchanges for delivery through ~~December 31, 2017.~~June 30, 2022.

The Company has entered into a marketing agreement with RPMG to sell all industrial alcohol produced at the plant at a mutually agreed on price, less commission and transportation charges.

The Company has entered into a marketing agreement with RPMG to sell all corn oil produced at the plant at a mutually agreed on price, less marketing fees and transportation charges. As of ~~September 30, 2017~~,March 31, 2022, the Company had commitments to sell approximately ~~7.2~~5 million pounds of corn oil at various fixed and basis price levels indexed against exchanges for delivery through ~~December 31, 2017.~~June 30, 2022.

The Company also has an investment in RPMG, included in other assets, totaling approximately ~~$2,345,000~~$3,095,000 and $2,990,000 as of ~~September 30, 2017~~.March 31, 2022 and December 31, 2021, respectively.

The Company has entered into a marketing agreement to sell all distiller grains produced at the plant to CHS, Inc. "CHS", an unrelated party, at a mutually agreed on price, less commission and transportation charges. The agreement was renewed for another one year term on April 1, ~~2017.~~2022. The agreement calls for automatic renewal for successive ~~one-year~~one-year terms unless 90-day prior written notice is given before the current term expires. As of ~~September 30, 2017~~,March 31, 2022, the Company had approximately ~~54,000~~68,000 tons of distiller grains sales commitments for delivery through ~~December 2017~~September 2022 at various fixed prices.

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Homeland Energy Solutions, LLC

Notes to Unaudited Financial Statements

Sales and marketing fees related to the agreements in place for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 were approximately as follows:


	Three Months Ended		Three Months Ended
	March 31, 2022		March 31, 2021
Sales ethanol	$	100,592,000	$	71,731,000
Sales distiller grains	21,453,000		18,983,000
Sales corn oil	10,440,000		5,657,000

Marketing fees ethanol	$	106,000	$	154,000
Marketing fees distiller grains	192,000		196,000
Marketing fees corn oil	36,000		29,000

	As of March 31, 2022		As of December 31, 2021
Amount due from RPMG	$	9,737,000	$	3,489,000
Amount due from CHS	4,211,000		2,484,000

Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2017 September 30, 2016 September 30, 2016
Sales ethanol $ 48,783,000
$ 158,311,000
$ 49,454,000
$ 151,689,000
Sales distiller grains 7,869,000
26,253,000
12,229,000
36,262,000
Sales corn oil 3,028,000
9,779,000
2,994,000
8,182,000

Marketing fees ethanol $ 61,000
$ 184,000
$ 42,000
$ 126,000
Marketing fees distiller grains 124,000
490,000
200,000
595,000
Marketing fees corn oil 22,000
74,000
28,000
78,000

As of September 30, 2017 As of December 31, 2016
Amount due from RPMG $ 267,000
$ 4,717,000

Amount due from CHS 255,000
1,329,000

At ~~September 30, 2017~~,March 31, 2022, the Company had approximately ~~$9 million~~$44,913,000 in outstanding priced corn purchase commitments for bushels at various prices and approximately ~~5,188,000~~3,993,000 bushels of basis contracts through December ~~2018~~2023 accounted for under the normal purchase exclusion.

The Company has commitments for minimum purchases of various utilities such as natural gas and electricity ~~over the next 2 years,~~through April 2023 totaling approximately $3,405,000 accounted for under the normal purchase ~~exclusion, which are anticipated to approximate the following for the twelve month periods ending September 30:~~exclusion.

2018 $ 3,787,000
2019 1,894,000
Total anticipated commitments $ 5,681,000

~~During 2016 and 2017,~~As of March 31, 2022, the Company ~~entered into multiple construction agreements as part~~had approximately 593,000 decatherms of ~~an expansion project. The total commitment~~natural gas locked in at fixed prices through April 2023 accounted for under ~~these agreements is $35 million. The Company has incurred costs related to~~ the ~~expansion project totaling approximately $30.4 million and expects the total expansion project to cost approximately $42 million, however no other commitments have been executed.~~normal purchase exclusion.

6. LEASE OBLIGATIONS

A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognizes a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively.

The Company leases rail cars and rail moving equipment with original terms up to 57 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases. These costs are in addition to regular lease payments and are not included in lease expense. Rent expense incurred for the operating leases during the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 was approximately ~~$369,000 and $1,150,000, respectively,~~$487,000 and for the same period in ~~2016~~2021 was approximately ~~$418,000~~$461,000. The lease agreements have maturity dates ranging from May 2022 to May 2027. The weighted average remaining life of the lease term for these leases was 2.77 years as of March 31, 2022.

The discount rates used in determining the lease liability for each individual lease was the Company's estimated incremental borrowing rates of 4.79% and ~~$1,249,000,~~2.90%. The right of use asset operating lease, included in other assets, and operating lease liability, included in current and long term liabilities was approximately $6,444,318 and $1,479,064 as of March 31, 2022 and December 31, 2021, respectively.

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Homeland Energy Solutions, LLC

Notes to Unaudited Financial Statements

At ~~September 30, 2017~~,March 31, 2022, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month ~~periods~~period ended ~~September 30:~~March 31:


2023	$	1,851,000
2024	1,343,000
2025	1,267,000
2026	1,222,000
2027	1,159,000
Thereafter	60,000
Total lease commitments	$	6,902,000

2018 $ 1,250,000
2019 966,000
2020 966,000
2021 966,000
2022 533,000
Total lease commitments $ 4,681,000

A reconciliation of the undiscounted future payments in the schedule above and the lease liability recognized in the consolidated balance sheet as of March 31, 2022, is shown below.


Undiscounted future payments	$	6,902,000
Discount effect	(457,682)
	$	6,444,318

7. DERIVATIVE INSTRUMENTS

The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. These financial exposures are monitored and managed by the Company as an integral part of its overall risk-management program. The Company's risk management program focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results.

To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures and options contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures and options contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of exchange traded futures and options contracts related to corn and natural gas are recorded in costs of goods sold and changes in market prices of contracts related to the sale of ethanol, if applicable, are recorded in revenues.

The Company uses futures or options contracts to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The Company's plant will grind approximately 6365 million bushels of corn per year. Over the next 12twelve months, the Company has hedged and anticipates hedging between 6%5% and ~~30%~~28% of its anticipated annual grind. At ~~September 30, 2017~~,March 31, 2022, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 8%22% of its anticipated monthly grind over the next twelve months.

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Homeland Energy Solutions, LLC

Notes to Unaudited Financial Statements

The following table represents the approximate amount of realized/unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the three ~~and nine~~ months ending ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 and the fair value of derivatives as of ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016:~~2021:


	Income Statement Classification	Realized Gain (Loss)		Change In Unrealized Gain (Loss)		Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity contracts for the
three months ended March 31, 2022	Cost of Goods Sold	$	(14,266,000)	$	(5,620,000)	$	(19,886,000)

	Total					$	(39,772,000)
Commodity contracts for the

three months ended March 31, 2021	Cost of Goods Sold	(5,315,000)		3,967,000		(1,348,000)

Income Statement Classification Realized Gain Change In Unrealized Gain (Loss) Total Gain
Derivatives not designated as hedging instruments:
Commodity contracts for the

three months ended September 30, 2017 Cost of Goods Sold $ 2,278,000
$ 318,000
$ 2,596,000

Commodity contracts for the

three months ended September 30, 2016 Cost of Goods Sold $ 4,712,000
$ (2,626,000 ) $ 2,086,000

Commodity contracts for the

nine months ended September 30, 2017 Cost of Goods Sold $ 2,534,000
$ 236,000
$ 2,770,000

Commodity contracts for the

nine months ended September 30, 2016 Cost of Goods Sold $ 4,682,000
$ (269,000 ) $ 4,413,000


	Balance Sheet Classification	March 31, 2022		December 31, 2021
Futures contracts
In gain position		$	69,000	$	222,000
In loss position		(9,610,000)		(4,143,000)
Cash held by broker		14,624,000		7,648,000
	Current Asset	$	5,083,000	$	3,727,000

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~~Homeland Energy Solutions, LLC~~

~~Notes to Unaudited Financial Statements~~

Balance Sheet Classification September 30, 2017 December 31, 2016
Futures contracts through March 2018
In gain position $ 280,000
$ 78,000
In loss position (26,000 ) (59,000 )
Cash held by broker 282,000
510,000
Current Asset $ 536,000
$ 529,000

8. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below:

~~Trading securities:~~ Trading securities consisting of corporate bonds and short term bond mutual funds are reported at fair value utilizing Level 1 inputs. Trading securities are measured at fair value using prices obtained from pricing services.

Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CBOT and NYMEX markets.

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Homeland Energy Solutions, LLC

Notes to Unaudited Financial Statements

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016,~~2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Total		Level 1		Level 2		Level 3
As of March 31, 2022

Derivative financial instruments
Assets	$	69,000	$	69,000	$	—	$	—
Liabilities	$	(9,610,000)	$	(9,610,000)	$	—	$	—

As of December 31, 2021

Derivative financial instruments
Assets	$	222,000	$	222,000	$	—	$	—
Liabilities	$	(4,143,000)	$	(4,143,000)	$	—	$	—

The Company's financial assets and liabilities not recorded at fair value, for which carrying value approximates fair value, consists of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and term revolver debt.

Total Level 1 Level 2 Level 3
As of September 30, 2017
Trading securities, assets $ 34,879,000
$ 34,879,000
$ —
$ —
Derivative financial instruments

Assets $ 280,000
$ 280,000
$ —
$ —
Liabilities (26,000 ) (26,000 ) —
—

As of December 31, 2016
Trading securities, assets $ 41,551,000
$ 41,551,000
$ —
$ —
Derivative financial instruments

Assets $ 78,000
$ 78,000
—
—
Liabilities (59,000 ) (59,000 ) —
—

~~9. LITIGATION MATTERS~~

~~Retterath~~

In relation to the repurchase agreement discussed in Note 4, on August 1, 2013 Mr. Retterath filed a lawsuit against the Company along with several directors, the Company's former CEO, CFO, COO, a former director and the Company's outside legal counsel in Florida state court. In August 2016, this lawsuit was voluntarily dismissed without prejudice by the Retteraths. On August 14, 2013, the Company filed a lawsuit in Iowa state court to enforce the repurchase agreement the Company entered into with Mr. Retterath. No distributions have been paid to Mr. Retterath since the timeTable of the original expected closing date of August 1, 2013. 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 various motions with the Iowa Court and was granted a stay regarding his obligation to perform the repurchase agreement while the court considered his post trial motions.Contents

~~GS Cleantech Corporation~~

On August 9, 2013, GS Cleantech Corporation (GS Cleantech), a subsidiary of Greenshift Corporation, filed a complaint against the Company alleging that the Company's operation of a corn oil extraction process licensed by the Company 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 from the Company. The Company filed a motion for summary judgment which was granted by the Court. The Company expects GS Cleantech will appeal this decision.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements that involve future events, our future performance and our expected future operations and actions. In some cases you can identify forward-looking statements by the use of words such as "may," "will," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions and involve numerous assumptions, risks and ~~uncertainties.~~uncertainties, including the current crisis in Ukraine. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the reasons described in this report or in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~.2021. We are not under any duty to update the forward-looking statements contained in this report. We cannot guarantee future results, 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.

Overview

Homeland Energy Solutions, LLC (referred to herein as "we," "us," the "Company," or "Homeland") is an Iowa limited liability company. Homeland was formed on December 7, 2005 for the purpose of pooling investors for the development, construction and operation of a 100 million gallon per year ethanol plant located near Lawler, Iowa. We began producing ethanol and distiller grains at the plant in April 2009. We completed installation of corn oil extraction equipment and commenced selling corn oil during our fourth quarter of 2011. During our fourth quarter of 2017, we completed a plant expansion project. The ethanol plant is now capable of operating at a rate in excess of ~~160~~190 million gallons of ethanol per year.

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 of the repurchase agreement. The Company asked the Iowa state court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms.

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 that he was asking 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 II - Item 1. Legal Proceedings~~."

On December 21, 2016, our board of directors approved a plan to expand our ethanol production facility. We plan to increase our capacity by approximately 35 million gallons of ethanol per year and add additional grain storage capacity. The total capital cost of this project is expected to be approximately $42 million. We plan to finance the expansion using a combination of additional debt financing and cash from operations. We expect that the expansion will be fully operational during the fourth quarter of our 2017 fiscal year. All expectations for the next twelve months include the expected increased annual capacity of 35 million gallons for the nine months January 2018 through September 2018, as the projected completion of the plant expansion is late fourth quarter 2017.

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").

In recent years, the ethanol industry in the United States has increased exports of ethanol and distiller grains. In January 2017, the Chinese issued final tariffs on U.S. distiller grains. The Chinese distiller grains anti-dumping tariffs range from 42.2% to 53.7% and the anti-subsidy tariffs range from 11.2% to 12%. In addition, the Chinese government increased its ethanol import tariff from 5% to 30% as of January 1, 2017. These tariffs have had a negative impact on market ethanol and distiller grains prices in the United States.

In addition, on August 23, 2017, Brazil imposed a twenty percent import tariff on ethanol imported from the United States. Since, Brazil is a major source of ethanol demand, this tariff could negatively impact market ethanol prices in the United States.

On June 16, 2017, we declared a distribution of $8,977,315 to be paid to 64,585 membership units which equals $139.00 per membership unit. Payment of the distribution was contingent on the Home Federal loan closing. The distribution was paid on July 3, 2017.

Results of Operations

Comparison of Fiscal Quarters Ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021

The following table shows the results of our operations and the percentage of revenues, cost of goods sold, operating expenses and other items to total revenues in our statement of operations for the three months ended ~~September 30, 2017~~March 31, 2022 and ~~2016:~~2021:


	2022			2021
Income Statement Data	Amount		%	Amount		%
Revenue	$	132,490,766	100.0	$	96,376,950	100.0

Costs of goods sold	131,024,701		98.9	89,220,499		92.6

Gross profit	1,466,065		1.1	7,156,451		7.4

Selling, general and administrative expenses	1,497,817		1.1	1,232,376		1.3

Operating income (loss)	(31,752)		—	5,924,075		6.1

Other income (expense)	86,784		0.1	(58,780)		(0.1)

Net income	$	55,032	—	$	5,865,295	6.1

2017 2016
Income Statement Data Amount % Amount %
Revenue $ 59,680,650
100.0
$ 64,675,851
100.0

Costs of goods sold 52,152,539
87.4
55,045,329
85.1

Gross profit 7,528,111
12.6
9,630,522
14.9

Selling, general and administrative expenses 806,772
1.4
1,126,987
1.7

Operating income 6,721,339
11.3
8,503,535
13.1

Other income (expense) 76,001
0.1
167,829
0.3

Net income $ 6,797,340
11.4
$ 8,671,364
13.4

Revenue

Our total revenue for our ~~third~~first quarter of ~~2017~~2022 was approximately ~~8% less~~37% more than our total revenue for our ~~third~~first quarter of ~~2016. Management attributes this decrease in revenue with decreased ethanol and decreased distiller grains revenue during the 2017 period.~~2021 due primarily to increased average prices for our products.

For our ~~third~~first quarter of ~~2017~~,2022, our total ethanol revenue was approximately ~~1% less~~40% more than our ~~third~~first quarter of ~~2016~~2021 due to ~~decreased~~higher average prices we received for our ethanol ~~production partially offset by an increase~~during the 2022 period, along with more gallons sold in ~~the~~2022.

The average price per gallon we received ~~per gallon~~for our ethanol during our first quarter of ~~ethanol sold during~~2022 was approximately 38% more than the ~~2017 period. The~~ average price we received for our ethanol during our ~~third~~first quarter of ~~2017 was approximately 3% greater than during our third quarter of 2016.~~2021. Management attributes this increase in the

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average price we received for our ethanol with higher market gasoline prices, which impacts ethanol prices, ~~with higher corn prices and increased ethanol demand. Management anticipates ethanol prices will be lower~~ during our ~~fourth~~first quarter of ~~2017 due to lower corn prices and increased ethanol supply.~~

~~We sold approximately 4% fewer gallons of ethanol during our~~ ~~third quarter of 2017~~2022 compared to the same period of ~~2016~~.2021.

We sold approximately 2% more gallons of ethanol during our first quarter of 2022 compared to the same period of 2021. Management attributes this ~~decrease in ethanol sales~~increase to increased total production during our third quarter of 2017 with increased plant downtime related to our fall shutdown and work we performed to tie in parts of our expansion project. Management anticipates future ethanol production to be higher compared to prior years due to plant expansion project.the 2022 period.

Our total distiller grains revenue was approximately ~~36%~~ ~~less~~13% more during our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016~~,2021, primarily due ~~primarily~~ to ~~decreased market~~an increased average price of distiller grains ~~prices.~~sold, offset by slightly fewer dried distiller grains sold. We sold approximately 1% fewer tons of distiller grains during our first quarter of 2022 compared to the same period of 2021. We primarily sell our distillers grains in the dried form. The average price we received for our dried distiller grains was approximately ~~22%~~ ~~less~~13% higher during our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016. We sell nearly all of our distiller grains in the dried form.~~2021. Management ~~attributes these lower~~anticipates that distiller grains prices ~~to decreased export demand from China due to~~will remain steady during the anti-dumping and countervailing duty tariffs imposed by the Chinese. Historically, China was the largest export market for distillers grains which has had a significant impact on distiller grains demand and prices. Distiller grains are typically used as a feed substitute for corn. Recently, distiller grains have been trading at a greater discount compared to a comparable

~~amount~~rest of ~~corn which management believes is indicative of decreased distiller grains demand. Management anticipates distiller grains will continue to trade at a discount to corn~~our 2022 fiscal year due to anticipated ~~strong corn supplies and lower demand due to the loss of the Chinese market. We sold approximately 18% fewer total tons of~~stable distiller grains ~~during our~~ ~~third quarter of 2017~~ ~~compared to the same period of~~ ~~2016~~ due to improved corn to ethanol conversion efficiency along with increased plant downtime. As we extract more corn oil from our distiller grains, it reduces the volume of distiller grains we sell. In addition, as our production process becomes more efficient, we use less corn to produce our ethanol which correspondingly decreases our distiller grains production. Management anticipates distiller grains production will increase once our plant expansion project becomes fully operational.demand.

Our total corn oil revenue was approximately ~~1% greater~~85% higher for our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016~~2021 due to increased demand and higher average selling price per pound of corn oil ~~prices.~~during the 2022 period. We sold approximately ~~1% fewer~~19% more pounds of corn oil during our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016~~2021 primarily because of ~~less ethanol production offset in part by~~ increased ~~efficiency extracting~~ corn oil atdemand during the ~~plant. We added additional corn oil extraction equipment which allows us to increase the amount of corn oil we can produce per bushel of corn.~~2022 period. The average price we received for our corn oil was approximately ~~2% greater~~54% higher during our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016. This increase~~2021 due to increased demand in the corn oil market. Management anticipates that corn oil prices ~~occurred,~~will remain elevated for the rest of our 2022 fiscal year since biodiesel and renewable diesel production is seeing an increase in ~~part, due to increased~~demand and corn oil ~~demand. Management anticipates lower demand for corn oil from~~is frequently used as the feedstock to produce biodiesel ~~industry since certain proposed volume obligations in the 2018 RFS, which benefit biodiesel, are at lower levels which management believes will negatively impact biodiesel production.~~and renewable diesel.

Cost of Goods Sold

~~Our two primary costs of production are corn costs and natural gas costs.~~ Our total cost of goods sold was approximately ~~5% less~~47% more for our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016~~.2021. Our cost of goods sold related to corn, without taking into account derivative instruments, was approximately ~~8% less~~31% more during our ~~third~~first quarter of ~~2017~~2022 compared to our ~~third~~first quarter of ~~2016~~2021 due to ~~decreased~~higher average corn ~~consumption.~~costs per bushel, along with slightly more bushels of corn ground. We used approximately 8% more bushels of corn during our first quarter of 2022 compared to the same period of 2021 due to increased overall production at the ethanol plant. Our average cost per bushel of corn was approximately ~~2% greater~~21% higher during our ~~third~~first quarter of ~~2017~~2022 compared to our ~~third~~first quarter of ~~2016~~2021 due to anticipated lower corn production. We processed approximately 10% fewer bushels of corn during our third quarter of 2017 compared to our third quarter of 2016 due to our decreased total production at the ethanol plant and improved corn to ethanol conversion efficiency. Management anticipates lower corn prices due to the balance between corn supply and demand. However, we may experience higher corn prices once the expansion is fully operational dueprimarily to increased corn ~~consumption which may impact prices in our local market.~~demand. Management anticipates that corn costs will remain higher unless current market demand conditions change or there is increased corn supply from new crop corn.

We experienced increased natural gas ~~prices~~costs during our ~~third~~first quarter of ~~2017~~2022 compared to the same period of ~~2016~~2021 primarily due to higher ~~energy prices~~average costs per MMBtu of natural gas used, along with slightly increased usage during the ~~2017~~2022 period. During our ~~third~~first quarter of ~~2017, the~~2022, our average delivered ~~price we paid~~cost per MMBtu of natural gas was approximately 9% ~~greater~~101% higher compared to the same period of ~~2016. We~~2021. In addition, we used approximately ~~4% fewer~~5% more MMBtu of natural gas during our ~~third~~first quarter of ~~2017~~2022 compared to our ~~third~~first quarter of ~~2016~~2021 due to ~~decreased production. Management anticipates continued higher natural gas prices during~~increased production at the rest of our 2017 fiscal year with typical natural gas cost increases during the winter months. If a shortage of natural gas were to occur, it could result in significantly higher natural gas prices which could negatively impact our profitability.ethanol plant.

We engage in risk management activities that are intended to fix the purchase price of the corn and natural gas we require to produce ethanol, distiller grains and corn oil. During our ~~third~~first quarter of ~~2017,~~2022, we ~~had a~~experienced combined realized ~~gain~~and unrealized losses of approximately ~~$2,278,000 and an unrealized gain of approximately $318,000~~$19.9 million related to our corn derivative ~~instruments.~~instruments which increased our cost of goods sold. During our ~~third~~first quarter of ~~2016,~~2021, we had acombined realized ~~gain~~and unrealized losses of approximately ~~$4,712,000 and an unrealized loss~~$1.35 million which increased our cost of ~~approximately $2,626,000~~goods sold related to our corn and natural gas derivative instruments. We recognize the gains or losses that result from changes in the value of our corn and natural gas derivative instruments in cost of goods sold as the changes occur. Until the expansion is fully implemented, our plant is expected to use approximately 63 million bushels of corn per year. As of September 30, 2017, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 8% of its anticipated monthly grind for the next twelve months, not including our anticipated increased consumption following completion of the expansion project.

Selling, General and Administrative Expenses

~~Our selling, general and administrative expenses were less during our~~ ~~third quarter of 2017~~ ~~than our~~ ~~third quarter of 2016, due to decreased legal expenses from the Retterath trial during third quarter 2017 and non recurring ethanol promotion expenditures that were incurred during our third quarter of 2016.~~

~~Other Income (Expense)~~

We had more interest income during our third quarter of 2017 compared to the same period of 2016 due to having more cash on hand during the 2017 period. We also had more interest expense during our third quarter of 2017 compared to the same period of 2016 due to increased borrowing on our new term debt.

~~Comparison of Nine Months Ended September 30, 2017 and 2016~~

2017 2016
Income Statement Data Amount % Amount %
Revenue $ 194,342,760
100.0
$ 196,132,720
100.0

Costs of goods sold 174,938,128
90.0
174,855,824
89.2

Gross profit 19,404,632
10.0
21,276,896
10.8

Selling, general and administrative expenses 2,833,927
1.5
2,697,754
1.4

Operating income 16,570,705
8.5
18,579,142
9.5

Other income (expense) 607,827
0.3
1,306,828
0.7

Net income $ 17,178,532
8.8
$ 19,885,970
10.1

~~Revenue~~

Our total revenue for the nine months ended September 30, 2017 was approximately 1% less than our total revenue for the nine months ended September 30, 2016. Management attributes this decrease in revenue with lower distiller grains revenue during the 2017 period, partially offset by increased ethanol and corn oil revenue.

For the nine months ended September 30, 2017, our total ethanol revenue was approximately 4% greater than the nine months ended September 30, 2016 due to increased gallons of ethanol we sold along with an increase in the average price we received per gallon of ethanol sold during the 2017 period. The average price we received for our ethanol during the nine months ended September 30, 2017 was approximately 2% greater than during the nine months ended September 30, 2016. Management attributes this increase in ethanol prices with increased gasoline prices which have impacted ethanol prices along with increased export demand. Management anticipates lower ethanol prices for the remaining quarter of our 2017 fiscal year.

We sold approximately 2% more gallons of ethanol during the nine months ended September 30, 2017 compared to the same period of 2016, due to increased production during the 2017 period. Management anticipates ethanol production to be higher compared to prior years due to our plant expansion project.

Our total distiller grains revenue was approximately 28% less during the nine months ended September 30, 2017 compared to the same period of 2016, due primarily to decreased distiller grains sales and prices. The average price we received for our dried distiller grains was approximately 21% less during the nine months ended September 30, 2017 compared to the same period of 2016. We sold approximately 8% fewer total tons of distiller grains during the nine months ended September 30, 2017 compared to the same period of 2016 due to improved corn to ethanol conversion efficiency along with increased corn oil production. As we extract more corn oil from our corn, it reduces the volume of distiller grains we sell. In addition, as our production process becomes more efficient, we use less corn to produce our ethanol which correspondingly decreases our distiller grains production.

Our total corn oil revenue was approximately 20% greater for the nine months ended September 30, 2017 compared to the same period of 2016 due to increased corn oil production and higher market corn oil prices during the 2017 period. We sold approximately 17% more pounds of corn oil during the nine months ended September 30, 2017 compared to the same period of 2016 primarily because of increased efficiencies in the extraction process along with increased ethanol production. We added additional corn oil extraction equipment which allows us to increase the amount of corn oil we can produce per bushel of corn. The average price we received for our corn oil was approximately 2% greater during the nine months ended September 30, 2017 compared to the same period of 2016.

~~Cost of Goods Sold~~

Our total cost of goods sold was comparable for the nine months ended September 30, 2017 and the same period of 2016. Our cost of goods sold related to corn, without taking into account derivative instruments, was 4% less for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 due to a favorable supply and demand balance during our 2017 fiscal year. Our average cost per bushel of corn was approximately 3% less during the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 due to ample corn supplies and relatively stable corn demand. We processed approximately 1% fewer bushels of corn during the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 due to improved corn to ethanol conversion efficiency.

We experienced increased natural gas prices during the nine months ended September 30, 2017 compared to the same period of 2016 primarily due to higher energy prices during the 2017 period. During the nine months ended September 30, 2017, the average delivered price we paid per MMBtu of natural gas was approximately 6% greater compared to the same period of 2016. We used 5% more natural gas during the nine months ended September 30, 2017 than the nine months ended September 30, 2016 due to increased production and our electrical energy turbine which runs on steam. The steam turbine has significantly reduced electrical usage, with a year to date savings of $1.3 million compared to what our electrical costs would have been without the steam turbine.

During the nine months ended September 30, 2017, we had a realized gain of approximately $2,534,000 and an unrealized gain of $236,000 related to our corn derivative instruments. During the nine months ended September 30, 2016, we had a realized gain of approximately $4,682,000 and an unrealized loss of approximately $269,000 related to our corn derivative instruments.

~~Selling, General and Administrative Expenses~~

Our selling, general and administrative expenses were ~~greater~~more during the ~~nine months ended September 30, 2017 compared to the nine months ended September 30, 2016~~first quarter of 2022 than during our first quarter of 2021, primarily due to increased ~~legal expenses related to~~administrative labor and consulting fees in the ~~Retterath lawsuit.~~current quarter.

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Other Income (Expense)

~~Our other income was~~ We had less interest expense during ~~the nine months ended September 30, 2017~~our first quarter of 2022 compared to the same period of ~~2016~~2021 due to having less outstanding debt. We had more other income ~~from~~during our ~~investments during the 2017 period and increased interest expense in 2017 related~~first quarter of 2022 compared to the ~~term debt.~~same period of 2021 due to more gains on our equity method investments in the 2022 period.

Changes in Financial Condition for the ~~Nine~~Three Months Ended ~~September 30, 2017~~.March 31, 2022


Balance Sheet Data	March 31, 2022		December 31, 2021
Total current assets	$	73,022,682	$	73,489,699
Total property and equipment	110,508,367		116,000,355
Total other assets	13,634,391		6,473,419
Total Assets	$	197,165,440	$	195,963,473

Total current liabilities	$	16,692,271	$	31,146,502
Total long-term liabilities	16,622,153		1,020,987
Total members' equity	163,851,016		163,795,984
Total Liabilities and Members' Equity	$	197,165,440	$	195,963,473

Balance Sheet Data September 30, 2017 December 31, 2016
Total current assets $ 89,142,411
$ 76,835,075
Total property and equipment 131,870,267
117,806,502
Total other assets 6,520,977
4,143,322
Total Assets $ 227,533,655
$ 198,784,899

Total current liabilities $ 41,095,066
$ 47,424,337
Total long-term liabilities 27,000,000
123,190
Total members' equity 159,438,589
151,237,372
Total Liabilities and Members' Equity $ 227,533,655
$ 198,784,899

We had ~~more~~less cash and cash equivalents ~~and restricted cash as of September 30, 2017~~at March 31, 2022 compared to December 31, ~~2016 due to cash generated~~2021 primarily from ~~our operations along with $30 million in loan proceeds we received~~payments for deferred corn and other payables during the ~~2017~~2022 period. We had ~~approximately $2.5 million in restricted cash related to payments we will make in the future for our plant expansion project. As of~~ ~~September 30, 2017, the value of our trading securities was lower~~more accounts receivable at March 31, 2022 compared to ~~the trading securities we had at~~ December 31, 2016 due to bonds which matured and other investments we liquidated during the 2017 period. In order to fund our purchase obligation related to the Retterath repurchase agreement, we have allocated $30 million of our trading securities to the Retterath repurchase. Our accounts receivable was lower at ~~September 30, 2017~~ ~~compared to~~ ~~December 31, 2016~~2021 due to the timing of our quarter end ~~with respect~~compared to ~~shipments of our ethanol and~~ payments we received from our ~~marketer. We~~marketers. As of March 31, 2022 we had more inventory ~~on hand at~~ ~~September 30, 2017~~ ~~compared to~~ ~~December 31, 2016~~ ~~due primarily to having more finished goods inventory on hand at~~

~~September 30, 2017~~ ~~as a result of the timing of our quarter end. We had less prepaid expenses at September 30, 2017~~ compared to December 31, ~~2016~~2021 due to ~~a decrease~~an increase in value of raw materials on hand on the last day of the month. We had slightly more prepaid ~~natural gas transportation fees and other~~assets at March 31, 2022 compared to December 31, 2021 due to more prepaid ~~items.~~insurance at March 31, 2022. As of March 31, 2022, the value of our derivative instruments was higher compared to December 31, 2021 due to changes in the amount of cash held by our broker.

Our net property and equipment was ~~greater~~lower at ~~September 30, 2017~~ ~~compared to~~ ~~December~~March 31, ~~2016~~ ~~due to the net effect of capital expenditures we have been making at the ethanol plant partially offset by depreciation. Our other assets were greater at~~ ~~September 30, 2017~~ ~~than at~~ ~~December 31, 2016~~ ~~as a result of restricted cash from the loan proceeds for the expansion project.~~

~~Our current liabilities were less at~~ ~~September 30, 2017~~ ~~compared to~~ ~~December 31, 2016~~, primarily due to the decreased accounts payable as of September 30, 2017 partially offset by the $3 million increase in the current portion of our term loan related to the expansion. Our accounts payable were less at September 30, 20172022 compared to December 31, ~~2016~~2021 due to depreciation, partially offset by capital additions. The value of our other assets was higher at March 31, 2022 compared to December 31, 2021 due to increases from utility rights and our right-of-use asset at March 31, 2022 compared to December 31, 2021, partially offset by amortization of our right-of-use asset.

Our accounts payable was less at March 31, 2022 compared to December 31, 2021 due primarily to ~~a large outstanding invoice at December 31, 2016 related to the plant expansion project and~~ having less deferred corn payments ~~as of September 30, 2017~~at March 31, 2022. Our accrued expenses were less at March 31, 2022 compared to December 31, ~~2016.~~ 2021 due to lower payroll related liabilities at March 31, 2022.

Our ~~accrued expenses~~long-term liabilities were ~~lower~~more at ~~September 30, 2017~~March 31, 2022 compared to December 31, ~~2016~~2021 due to ~~payment~~amounts due on our term revolver and an increased long term portion of ~~wages and performance bonuses accrued~~operating lease liability at ~~December~~March 31, ~~2016.~~2022.

~~Our long-term liabilities were greater at~~ ~~September 30, 2017~~ ~~compared to~~ ~~December 31, 2016~~ ~~primarily due to our new $30 million term loan less the principal payments due within one year which are included in current liabilities.~~

Liquidity and Capital Resources

Our primary sources of liquidity as of ~~September 30, 2017~~March 31, 2022 were cash from our operations and our ~~$30~~$90 million long-term revolving ~~loan.~~loans. Our credit facilities are described in greater detail below under "Short-Term and Long-Term Debt Sources." As of ~~September 30, 2017~~,March 31, 2022, we had ~~$30.0~~approximately $78.3 million available pursuant to our revolving ~~loan~~loans and approximately ~~$36.8~~$2 million in cash and cash ~~equivalents, as well as approximately $2.5 million of restricted cash that is restricted for future expansion costs. We also had $30 million at~~ ~~September 30, 2017~~ ~~of trading securities for the Retterath repurchase agreement along with an additional approximately $4.9 million in trading securities which are not set aside for the Retterath repurchase.~~equivalents. Based on financial forecasts performed by our management, we anticipate that we will have sufficient cash from our revolving ~~loan~~loans and cash from our operations to continue to operate the ethanol plant at capacity for the next 12 months and beyond. However, should we experience unfavorable operating conditions in the future, we may have to secure additional debt or equity financing for working capital or other purposes.

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The following table shows cash flows for the ~~nine months~~three months ended ~~September 30, 2017~~March 31, 2022 and ~~2016:~~2021:


	2022		2021
Net cash (used in) operating activities	$	(26,753,677)	$	(11,875,786)
Net cash (used in) investing activities	(1,309,646)		(1,999,181)
Net cash provided by financing activities	11,721,000		12,022,000
Cash at beginning of period	18,332,190		5,072,227
Cash and cash equivalents at end of period	$	1,989,867	$	3,219,260

2017 2016
Net cash provided by operating activities $ 26,164,568
$ 24,829,371
Net cash (used in) investing activities (22,107,145 ) (11,656,462 )
Net cash provided by (used in) financing activities 21,022,685
(3,875,100 )
Cash at beginning of period 14,168,643
20,256,678
Cash and restricted cash at end of period $ 39,248,751
$ 29,554,487

Cash Flow From Operations

Our operations ~~provided~~used more cash during our first ~~nine~~three months of ~~2017~~2022 compared to the same period of ~~2016~~2021 due primarily ~~due~~ to decreased net income as well as by changes in ~~working capital components, including~~ accounts receivable, inventory, and accounts payable ~~and accrued expenses which increased our cash~~ during the ~~2017~~ ~~period, offset by a lower net income in 2017.~~2022 period.

Cash Flow From Investing Activities

~~We used more cash for~~ Our investing activities used less cash during ~~our first~~ ~~nine months~~the 2022 period primarily because of ~~2017~~less cash used for equipment and construction in progress during the 2022 period compared to the ~~first~~ ~~nine months~~ of ~~2016~~ ~~due to capital expenditures related to our plant expansion during the 2017 period partially offset by cash we realized on the redemption of trading securities.~~2021 period.

Cash Flow From Financing Activities

Our financing activities provided less cash during ~~our 2017 fiscal year due to~~ the 2022 period because we used fewer proceeds ~~we received on our~~from long term ~~loan. We did not use or receive any cash from financing activities during our first~~ ~~nine months~~ ~~of 2016.~~borrowings.

Short-Term and Long-Term Debt Sources

Master Loan Agreement with Home Federal Savings Bank

On ~~June 29, 2017,~~November 30, 2007, we entered into a ~~new $30 million term loan (the "Term Loan"~~Master Loan Agreement with Home Federal Savings Bank ("Home Federal") establishing a senior credit facility with Home Federal. In return, we executed a mortgage and ~~increased~~a security agreement in favor of Home Federal creating a senior lien on substantially all of our assets.

On November 6, 2020, we entered into an amendment of our credit facilities, increasing and ~~extended~~extending our existing revolving loan (the "Revolving Loan") with Home Federal. On July 22, 2021, we entered into an amendment to our Revolving Loan with Home Federal, ~~Savings Bank ("Home Federal"~~creating a new $50 million revolving loan in addition to our other current debt instruments, (the “Loan Amendment”). ~~Each loan~~The Loan Amendment is described below.

Term Revolving Loan

We have a $30 million term loan with a fixed interest rate of 4.79%. We will pay interest on the Term Loan monthly with semi-annual principal payments of $3 million commencing on June 30, 2018. The maturity date of the Term Loan is December 31, 2022. We have the ability to prepay principal on the Term Loan without penalty or premium by giving Home Federal thirty days advance notice. If we choose to refinance the Term Loan within the first thirty-six months following the closing, we will be required to pay Home Federal a prepayment fee. In the event we default on the Term Loan, Home Federal can charge a default interest rate 2% in excess of the current interest rate. As of September 30, 2017, we had $30 million outstanding on the Term Loan.

~~Revolving Loan~~

~~We have a $30~~$50 million term revolving loan which has a maturity date of ~~December 31, 2022.~~November 6, 2025. Interest on the Revolving Loan accrues at ~~310~~the Prime Rate less 60 basis ~~points in excess of the 30-day London Interbank Offered Rate (LIBOR).~~points. We are required to make monthly payments of interest until the maturity date on ~~December 31, 2022,~~November 6, 2025, on which date the unpaid principal balance of the Revolving Loan becomes due. We agreed to pay a fee of 30 basis points on a per annum basis on the unused portion of the Revolving Loan payable on a quarterly basis. As of ~~September 30, 2017,~~March 31, 2022, we had $0$11.7 million outstanding on the Revolving Loan and ~~$30~~approximately $38.3 million available to be drawn. Interest ~~accrued~~accrues on the Revolving Loan as of ~~September 30, 2017~~March 31, 2022 at a rate of ~~4.33%~~2.90% per year.

~~Covenants~~Revolving Line of Credit

Pursuant to the Loan Amendment in July, 2021, we could borrow up to $50 million pursuant to the revolving line of credit. The amount available pursuant to the revolving line decreased to $40 million on December 31, 2021 and decreases again to $30 million on May 31, 2022. Interest on the revolving loan accrues at a rate of 0.30% less than the Prime Rate, 3.20% as of March 31, 2022. There is a fee on the unused portion of the revolving loan equal to 0.30%. The maturity date of this revolving line of credit is November 6, 2025.

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Covenants

In connection with the Master Loan Agreement, we are required to comply with certain debt covenants and financial ratios. We agreed to a debt service coverage ratio of 1:15 to 1:00 and ~~agreed to increase our~~a minimum working capital covenant ~~from $27.5 million to~~of $30 ~~million once our expansion is complete.~~million. We are permitted to pay distributions to our members up to 100% of our net income for the year in which the distributions are paid provided that immediately prior to the distribution and after giving effect to the distribution, no default exists and we are in compliance with all of our loan covenants, including compliance with the financial covenants. ~~Further, our~~The maximum capital expenditure covenant was increased ~~from $5~~to $17.5 million ~~to $10~~in 2020, unless working capital exceeds $40 million, ~~per year.~~ then there is no limit on capital expenditure.

As of ~~September 30, 2017~~,March 31, 2022, we were in compliance with all of our debt covenants and financial ratios. Management anticipates that we will be in compliance with all of our debt covenants and financial ratios for at least the next 12 months.

Failure to comply with the loan covenants or to maintain the required financial ratios may cause acceleration of any future outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. Any acceleration of the debt financing or imposition of the fees, charges or penalties may restrict or limit our access to the capital resources necessary to continue plant operations.

Should we default on any of our obligations pursuant to the Home Federal loans, Home Federal may terminate its commitment to provide us funds and declare any future unpaid principal balance of the loans, plus accrued interest, immediately due and payable. Events of default include the failure to make payments when due, our insolvency, any material adverse change in our financial condition or the breach of any of the covenants, representations or warranties we have made in the loan agreements.

Application of Critical Accounting Estimates

Management uses estimates and assumptions in preparing our financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Of the significant accounting policies described in the notes to our financial statements, we believe that the following are the most critical:

Derivative Instruments

The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative mymay be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of all contracts with the same ~~counter party~~counter-party are presented net on the accompanying balance sheet as derivative instruments net of cash due from/to broker.

Revenue ~~recognition~~Recognition

Revenue from the sale of the Company's products is recognized at the time ~~title to the goods and all risks of ownership~~control transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized

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as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer.

~~Off-Balance Sheet Arrangements~~Short Term and Long Term Plans for Cash

~~We do not have any off-balance sheet arrangements.~~Both in the short term (the next 12 months) and in the long term (beyond the next 12 months) the Company plans to reinvests its cash into current business operations and may provide for future distributions to its members.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below. We have no exposure to foreign currency risk as all of our business is conducted in U.S. ~~Dollars and we have no amounts outstanding on variable interest rate debt.~~Dollars. We use derivative financial instruments as part of an overall strategy to manage market risk. We use cash, futures and option contracts to hedge changes to the commodity prices of corn, natural gas and ethanol. We do not enter into these derivative financial instruments for trading or speculative purposes, nor do we designate these contracts as hedges for accounting purposes.

Interest Rate Risk

We are exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from holding loans which bear variable interest rates. As of March 31, 2022, we had $11.72 million outstanding on our variable interest rate loans with interest accruing at rates of 2.90% and 3.20%. Our variable interest rates are calculated by subtracting a set basis to the prime rate. If we were to experience a 10% increase in the prime rate, the annual effect such change would have on our income statement, based on the amount we had outstanding on our variable interest rate loans as of March 31, 2022, would be approximately $1.2 million.

Commodity Price Risk

We seek to minimize the risks from fluctuations in the prices of raw material inputs, such as corn and natural gas, and finished products, such as ethanol and distiller grains, through the use of hedging instruments. These risks may be heightened due to the current crisis in Ukraine of which we cannot anticipate. In practice, as markets move, we actively manage our risk and adjust hedging strategies as appropriate. Although we believe our hedge positions accomplish an economic hedge against our future purchases and sales, management has chosen not to use hedge accounting, which would match the gain or loss on our hedge positions to the specific commodity purchase being hedged. We are using fair value accounting for our hedge positions, which means as the current market price of our hedge positions changes, the realized or unrealized gains and losses are immediately recognized in our cost of goods sold or as an offset to revenues. The immediate recognition of hedging gains and losses under fair value accounting can cause net income to be volatile from quarter to quarter due to the timing of the change in value of the derivative instruments relative to the cost and use of the commodity being hedged.

As of ~~September 30, 2017~~,March 31, 2022, we had price protection in place for approximately 8%22% of our anticipated corn needs, ~~(based on current usage prior to completion of the expansion), 0%~~11% of our natural gas needs and 0%none of our ethanol sales for the next 12 months. A sensitivity analysis has been prepared to estimate our exposure to ethanol, corn and natural gas price risk. Market risk

related to these factors is estimated as the potential change in income resulting from a hypothetical 10% adverse change in the average cost of our corn and natural gas prices and average ethanol price as of ~~September 30, 2017~~,March 31, 2022, net of the forward and future contracts used to hedge our market risk for corn and natural gas usage requirements. The volumes are based on our expected use and sale of these commodities for a one year period from ~~September 30, 2017~~.March 31, 2022. The results of this analysis, which may differ from actual results, are as follows:


	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	4,457,500	MMBTU	10%	$	(2,674,500)
Ethanol	195,000,000	Gallons	10%	(50,700,000)
Corn	57,891,405	Bushels	10%	(43,418,554)

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 5,300,000
MMBTU 10% $ (1,653,600 )
Ethanol 188,000,000
Gallons 10% (25,004,000 )
Corn 58,000,000
Bushels 10% (19,894,000 )

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For comparison purposes, our sensitivity analysis for our ~~third~~first quarter of ~~2016~~2021 is set forth below.


	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	5,050,000	MMBTU	10%	$	(1,717,000)
Ethanol	192,235,200	Gallons	10%	(34,602,336)
Corn	54,096,333	Bushels	10%	(31,105,391)

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 3,705,000
MMBTU 10% $ (1,100,385 )
Ethanol 143,550,000
Gallons 10% (19,092,150 )
Corn 42,140,000
Bushels 10% (12,810,560 )

ITEM 4. CONTROLS AND PROCEDURES.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit pursuant to the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosures.

Our management, including our President and Chief Executive Officer (the principal executive officer), ~~James Broghammer, along with our~~Aristotelis Papasimakis, and Chief Financial Officer, (the principal financial officer), Beth Eiler, ~~have~~has reviewed and evaluated the effectiveness of our disclosure controls and procedures as of ~~September 30, 2017~~.March 31, 2022. Based on this review and evaluation, these officers believe that our disclosure controls and procedures are effective in ensuring that material information related to us is recorded, processed, summarized and reported within the time periods required by the forms and rules of the Securities and Exchange Commission.

For the fiscal quarter ended ~~September 30, 2017~~,March 31, 2022, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART IIII.

ITEM 1. LEGAL PROCEEDINGS.

Retterath 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 iswas to enforce the terms of the repurchase agreement the Company executed with Mr. Retterath on June 13, 2013. ~~The Company asked~~In February 2020, 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~~Supreme 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.

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~~is valid and ~~directed~~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 ~~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 oncase in 2016 will be resolved by the ~~Iowa Court. The Iowa Court granted Mr. Retterath's stay while the court considered his post-trial motions.~~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 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 engaged in inequitable conduct. GS Cleantech has asked the court to amend its ruling. The defendants are seeking damages against GS Cleantech and its attorneys as a result of this finding of inequitable conduct. We anticipate that if the determination of inequitable conduct is not amended, GS Cleantech will appeal this decision along with the summary judgment decision issued earlier.

ITEM 1A. RISK FACTORS.

The following risk factors are provided due to material changes from the risk factors previously disclosed in our annual report on Form ~~10-K.~~10-K for the fiscal year ended December 31, 2021. The risk factors set forth below should be read in conjunction with the risk factors section and the Management's Discussion and Analysis section for the fiscal year ended December 31, ~~2016,~~2021, included in our annual report on Form 10-K.

The ~~Brazilian tariff~~Company faces risks related to international conflicts, such as the ongoing conflict between Russia and Ukraine, that may adversely impact the Company's financial condition or results of operations.

In late February of 2022, Russia initiated a military operation in Ukraine. The Black Sea region is a key international grain and fertilizer export market and the conflict between Russia and Ukraine could continue to disrupt supply and logistics, cause volatility in prices, and impact global margins due to increased commodity, energy, and input costs. The Company currently does not purchase products directly from this region, however, the impact to the global supply could put the Company’s ability to secure product at risk over time.

To the extent the conflict between Russia and Ukraine adversely affects our business, it may also have the effect of heightening other risks disclosed in Part I, “Item 1A. Risk Factors” in the Company's 2021 Annual Report on ~~U.S. produced ethanol~~Form 10-K, any of which could ~~negatively~~materially and adversely affect the Company's financial condition and results of operations. However, due to the

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continually evolving nature of the conflict, the potential impact ~~market ethanol~~that the conflict could have on such risk factors, and others that cannot yet be identified, remains uncertain. The Company continues to monitor the conflict and assess alternatives to mitigate these risks.

Inflation, including as a result of commodity price inflation or supply chain constraints due to the war in Ukraine, may adversely impact our results of operations.

We have experienced inflationary impacts on business expenses. Commodity prices~~. Brazil~~ in particular have risen significantly over the past year. Inflation and its negative impacts could escalate in future periods.

Ukraine is ~~currently~~the third largest exporter of grain in the world. Russia is one of the largest ~~importer~~producers of ~~ethanol produced~~natural gas and oil and is the largest exporter of fertilizers. The commodity price impact of the war in Ukraine has been a sharp and sustained rise in grain and energy prices, including corn and natural gas. In addition, the war in Ukraine has adversely affected and may continue to adversely affect global supply chains resulting in further commodity price inflation for our production inputs. Lower fertilizer supplies may also impact future growing seasons, further impacting grain supplies and prices. Also, given high global grain prices, U.S. farmers may prefer to lock in prices and export additional volumes, reducing domestic grain supplies and resulting in further inflationary pressures.

We may not be able to include these additional costs in the ~~United States. However, recently~~prices of the ~~Brazilian government implemented~~products we sell. As a ~~tariff~~result, inflation may have a material adverse effect on ~~ethanol produced~~our results of operations and financial condition.

The ability or willingness of OPEC and other oil exporting nations to set and maintain production levels and/or the impact of sanctions on Russia related to the war in Ukraine may have a significant impact on natural gas commodity prices.

The Organization of Petroleum Exporting Countries and their allies (collectively, OPEC+), is an intergovernmental organization that seeks to manage the price and supply of oil on the global energy market. Actions taken by OPEC+ members, including those taken alongside other oil exporting nations, have a significant impact on global oil supply and pricing. For example, OPEC+ and certain other oil exporting nations have previously agreed to take measures, including production cuts, to support crude oil prices. In March 2020, members of OPEC+ considered extending and potentially increasing these oil production cuts, however these negotiations were unsuccessful. As a result, Saudi Arabia announced an immediate reduction in export prices and Russia announced that all previously agreed oil production cuts expired on April 1, 2020. These actions led to an immediate and steep decrease in oil prices. Conversely, sanctions imposed on Russia in the ~~United States~~last few months have increased prices. There can be no assurance that OPEC+ members and ~~exported~~other oil exporting nations will agree to ~~Brazil. Due~~future production cuts or other actions to ~~current ethanol production levels in the United States, the market price of ethanol has been supported~~support and stabilize oil prices, nor can there be any assurance that sanctions or other global conflicts will not further impact oil prices. Uncertainty regarding future sanctions or actions to be taken by ~~exports of ethanol. Further, additional ethanol capacity is being constructed which may further increase the domestic supply of ethanol. The Brazilian tariff on U.S. ethanol~~OPEC+ members or other oil exporting countries could lead to ~~an oversupply of ethanol~~increased volatility in the ~~United States~~price of oil and natural gas, which could ~~negatively impact domestic ethanol prices. Ethanol prices may decrease to a level which does not allow us to operate the ethanol plant profitably.~~adversely affect our business, future financial condition and results of operations.

~~Many ethanol producers are expanding their production capacity which could lead to an oversupply of ethanol in the United States~~. Recently, many ethanol producers have commenced projects to expand their ethanol production capacities. These expansions could result 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, it could negatively impact domestic ethanol prices which could negatively impact our ability to profitably operate the ethanol plant.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) The following exhibits are filed as part of this report.



Exhibit No.			Exhibit
31.1			Certificate Pursuant to 17 CFR 240.13a-14(a)*
31.2			Certificate Pursuant to 17 CFR 240.13a-14(a)*
32.1			Certificate Pursuant to 18 U.S.C. Section 1350*
32.2			Certificate Pursuant to 18 U.S.C. Section 1350*
~~101~~101.INS			~~The following financial information from Homeland Energy Solutions, LLC's Quarterly Report~~Inline XBRL Instance Document - the instance document does not appear on ~~Form 10-Q for~~ the ~~quarter ended September 30, 2017, formatted~~Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.**
101.SCH			Inline XBRL Taxonomy Extension Schema Document**
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB			Inline XBRL Taxonomy Extension Labels Linkbase Document**
101.PRE			Inline XBRL Presentation Linkbase Document**
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in ~~XBRL (eXtensible Business Reporting Language): (i) Balance Sheets~~the Interactive Data Files submitted as of September 30, 2017 and December 31, 2016, (ii) Statements of Operations for the three and nine months ended September 30, 2017 and 2016, (iii) Statements of Cash Flows for the nine months ended September 30, 2017 and 2016, and (iv) the Notes to Unaudited Financial Statements.**Exhibit 101).

(*) Filed herewith.

(**) Furnished herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



		HOMELAND ENERGY SOLUTIONS, LLC

Date:	~~November 14, 2017~~May 16, 2022	~~/s/ James Broghammer~~/s/ Aristotelis Papasimakis
		~~James Broghammer~~Aristotelis Papasimakis
		President and Chief Executive Officer (Principal Executive Officer)

Date:	~~November 14, 2017~~May 16, 2022	/s/ Beth Eiler
		Beth Eiler
		Chief Financial Officer (Principal Financial Officer)



~~For the fiscal quarter ended September 30, 2017~~

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

~~Commission file number~~ 000-53202
(Entity File Number)



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.)



	Page No.
Part I. FINANCIAL INFORMATION		3
Item 1. Financial Statements		3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		1617
Item 3. Quantitative and Qualitative Disclosures About Market Risk		2322
Item 4. Controls and Procedures		2423

Part II. OTHER INFORMATION		2423
Item 1. Legal Proceedings		2423
Item 1A. Risk Factors		2523
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		2624
Item 3. Defaults Upon Senior Securities		2624
Item 4. Mine Safety Disclosures		2624
Item 5. Other Information		2624
Item 6. Exhibits		2625

Signatures		26


	March 31, 2022		December 31, 2021
ASSETS	(Unaudited)		(Audited)

CURRENT ASSETS
Cash and cash equivalents	$	1,989,867	$	18,332,190


Accounts receivable	13,984,474		6,698,657
Inventory	46,291,977		39,259,755

Prepaid and other	5,673,619		5,471,747
Derivative instruments	5,082,745		3,727,350
Total current assets	73,022,682		73,489,699

PROPERTY AND EQUIPMENT
Land and improvements	23,260,902		23,260,902
Buildings	8,785,501		8,785,501
Equipment	242,554,688		242,004,606
Construction in progress	1,182,916		3,491,064
	275,784,007		277,542,073
Less accumulated depreciation	165,275,640		161,541,718
Total property and equipment	110,508,367		116,000,355

OTHER ASSETS


Right of use asset operating leases, net	6,444,318		1,479,064
Utility rights, net of amortization of $2,059,214 and $2,001,156	2,405,185		306,873
Other assets	4,784,888		4,687,482
Total other assets	13,634,391		6,473,419

TOTAL ASSETS	$	197,165,440	$	195,963,473



	September 30, 2017		December 31, 2016
ASSETS	(Unaudited)		(Audited)

CURRENT ASSETS
Cash and cash equivalents	$	36,783,710	$	14,168,643
Trading securities	34,879,254		41,551,151
Accounts receivable	557,378		6,258,503
Inventory	13,903,739		11,619,564
Prepaid and other	2,481,843		2,708,029
Derivative instruments	536,487		529,185
Total current assets	89,142,411		76,835,075

PROPERTY AND EQUIPMENT
Land and improvements	22,539,788		22,539,788
Buildings	6,344,990		6,344,990
Equipment	167,836,865		166,657,213
Construction in progress	30,178,570		8,270,322
	226,900,213		203,812,313
Less accumulated depreciation	95,029,946		86,005,811
Total property and equipment	131,870,267		117,806,502

OTHER ASSETS
Restricted cash	2,465,041		—
Utility rights, net of amortization of $1,421,507 and $1,319,217	886,522		988,812
Other assets	3,169,414		3,154,510
Total other assets	6,520,977		4,143,322

TOTAL ASSETS	$	227,533,655	$	198,784,899



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


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


	March 31, 2022		December 31, 2021
LIABILITIES AND MEMBERS' EQUITY	(Unaudited)		(Audited)

CURRENT LIABILITIES
Accounts payable	$	13,831,764	$	27,925,669






Accrued expenses	1,178,295		2,217,869


Current portion operating lease liability	1,682,212		1,002,964
Total current liabilities	16,692,271		31,146,502

COMMITMENTS AND CONTINGENCIES (Note 5)	0		0

LONG-TERM LIABILITIES

Long term debt	11,721,000		—
Operating lease liability, less current portion	4,762,106		476,100
Other liabilities	139,047		544,887
Total long-term liabilities	16,622,153		1,020,987

MEMBERS' EQUITY (64,560 units issued and outstanding)	163,851,016		163,795,984

TOTAL LIABILITIES AND MEMBERS' EQUITY	$	197,165,440	$	195,963,473


	Three Months Ended			Three Months Ended		Nine Months Ended			Nine Months Ended			Three Months Ended		Three Months Ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016			March 31, 2022		March 31, 2021

Revenue	$	59,680,650		$	64,675,851	$	194,342,760		$	196,132,720	Revenue	$	132,490,766	$	96,376,950

Costs of goods sold	52,152,539			55,045,329		174,938,128			174,855,824		Costs of goods sold	131,024,701		89,220,499

Gross profit	7,528,111			9,630,522		19,404,632			21,276,896		Gross profit	1,466,065		7,156,451

Selling, general and administrative expenses	806,772			1,126,987		2,833,927			2,697,754		Selling, general and administrative expenses	1,497,817		1,232,376

Operating income	6,721,339			8,503,535		16,570,705			18,579,142
Operating income (loss)											Operating income (loss)	(31,752)		5,924,075

Other income (expense)											Other income (expense)
Interest (expense)	(112,806		)	—		(112,806		)	—		Interest (expense)	(35,259)		(100,736)
Interest income	42,358			3,493		69,490			8,270		Interest income	16,710		1,972
Other income	146,449			164,336		651,143			1,298,558		Other income	105,333		39,984
Total other income	76,001			167,829		607,827			1,306,828
Total other income (expense)											Total other income (expense)	86,784		(58,780)

Net income	$	6,797,340		$	8,671,364	$	17,178,532		$	19,885,970	Net income	$	55,032	$	5,865,295

Basic & diluted net income per capital unit	$	105.25		$	134.26	$	265.98		$	307.90	Basic & diluted net income per capital unit	$	0.85	$	90.85

Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit	64,585			64,585		64,585			64,585		Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit	64,560		64,560

Distribution per Unit											Distribution per Unit	$	—	$	—


	Members' Equity

Balance - December 31, 2020	$	150,366,555

Net income for the three-month period ended March 31, 2021	5,865,295



Balance - March 31, 2021	$	156,231,850


	Members' Equity

Balance - December 31, 2021	$	163,795,984

Net income for the three-month period ended March 31, 2022	55,032



Balance - March 31, 2022	$	163,851,016


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


2023	$	280,000
2024	$	280,000
2025	$	144,000
2026	$	144,000
2027	$	144,000
Thereafter	$	1,408,000
Total amortization	$	2,400,000


	March 31, 2022		December 31, 2021
Raw Materials	$	37,013,775	$	30,921,702
Work in Process	4,408,242		3,667,888
Finished Goods	4,869,960		4,670,165
Totals	$	46,291,977	$	39,259,755



2018	$	3,000,000
2019	6,000,000
2020	6,000,000
2021	6,000,000
2022	6,000,000
Thereafter	3,000,000
Total principal payments	$	30,000,000



2018	$	3,787,000
2019	1,894,000
Total anticipated commitments	$	5,681,000



2018	$	1,250,000
2019	966,000
2020	966,000
2021	966,000
2022	533,000
Total lease commitments	$	4,681,000



	Income Statement Classification	Realized Gain		Change In Unrealized Gain (Loss)			Total Gain
Derivatives not designated as hedging instruments:
Commodity contracts for the
three months ended September 30, 2017	Cost of Goods Sold	$	2,278,000	$	318,000		$	2,596,000

Commodity contracts for the
three months ended September 30, 2016	Cost of Goods Sold	$	4,712,000	$	(2,626,000	)	$	2,086,000

Commodity contracts for the
nine months ended September 30, 2017	Cost of Goods Sold	$	2,534,000	$	236,000		$	2,770,000

Commodity contracts for the
nine months ended September 30, 2016	Cost of Goods Sold	$	4,682,000	$	(269,000	)	$	4,413,000



	2017			2016
Income Statement Data	Amount		%	Amount		%
Revenue	$	59,680,650	100.0	$	64,675,851	100.0

Costs of goods sold	52,152,539		87.4	55,045,329		85.1

Gross profit	7,528,111		12.6	9,630,522		14.9

Selling, general and administrative expenses	806,772		1.4	1,126,987		1.7

Operating income	6,721,339		11.3	8,503,535		13.1

Other income (expense)	76,001		0.1	167,829		0.3

Net income	$	6,797,340	11.4	$	8,671,364	13.4



	2017			2016
Net cash provided by operating activities	$	26,164,568		$	24,829,371
Net cash (used in) investing activities	(22,107,145		)	(11,656,462		)
Net cash provided by (used in) financing activities	21,022,685			(3,875,100		)
Cash at beginning of period	14,168,643			20,256,678
Cash and restricted cash at end of period	$	39,248,751		$	29,554,487