Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 14, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RED TRAIL ENERGY, LLC | |
Entity Central Index Key | 0001359687 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,148,160 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets | ||
Cash and equivalents | $ 6,999,650 | $ 8,565,038 |
Restricted cash - margin account | 2,121,853 | 1,957,031 |
Accounts receivable, primarily related party | 4,157,139 | 3,910,384 |
Inventory | 8,220,612 | 6,962,825 |
Prepaid expenses | 593,814 | 109,500 |
Total current assets | 22,093,068 | 21,504,778 |
Property, Plant and Equipment | ||
Land | 1,333,681 | 1,333,681 |
Land improvements | 4,465,311 | 4,465,311 |
Buildings | 8,111,074 | 8,111,074 |
Plant and equipment | 88,061,649 | 88,038,476 |
Construction in progress | 1,163,627 | 455,825 |
Gross property, plant and equipment | 103,135,342 | 102,404,367 |
Less accumulated depreciation | 64,290,297 | 63,092,175 |
Net property, plant and equipment | 38,845,045 | 39,312,192 |
Other Assets | ||
Right of use operating lease assets, net | 1,304,657 | |
Investment in RPMG | 605,000 | 605,000 |
Patronage equity | 4,119,151 | 4,119,151 |
Deposits | 40,000 | 40,000 |
Total other assets | 6,068,808 | 4,764,151 |
Total Assets | 67,006,921 | 65,581,121 |
Current Liabilities | ||
Accounts payable | 3,674,470 | 4,331,521 |
Accrued expenses | 2,498,302 | 598,209 |
Commodities derivative instruments, at fair value (see note 2) | 40,865 | 8,875 |
Accrued loss on firm purchase commitments (see notes 3 and 7) | 144,000 | 68,000 |
Current maturities of notes payable | 4,483 | 252 |
Current portion of operating leases | 390,454 | |
Total current liabilities | 6,752,574 | 5,006,857 |
Long-Term Liabilities | ||
Notes payable | 17,793 | 0 |
Long-term operating lease liabilities | 914,203 | |
Total long-term liabilities | 931,996 | 0 |
Commitments and Contingencies (Notes 4, 5, 7 and 8) | ||
Members’ Equity 40,148,160 Class A Membership Units issued and outstanding | 59,322,351 | 60,574,264 |
Total Liabilities and Members’ Equity | $ 67,006,921 | $ 65,581,121 |
Condensed Balance Sheets Parent
Condensed Balance Sheets Parenthetical - shares | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Membership units issued | 40,148,160 | 41,466,340 |
Membership units outstanding | 40,148,160 | 41,466,340 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues, primarily related party | $ 26,340,913 | $ 25,909,136 |
Cost of Goods Sold | ||
Cost of goods sold | 26,740,778 | 24,856,341 |
Lower of cost or net realizable value adjustment | 22,705 | 0 |
Loss on firm purchase commitments | 76,000 | 5,000 |
Total Cost of Goods Sold | 26,839,483 | 24,861,341 |
Gross Profit | (498,570) | 1,047,795 |
General and Administrative Expenses | 799,505 | 674,885 |
Operating Income (Loss) | (1,298,075) | 372,910 |
Other Income (Expense) | ||
Interest income | 39,277 | 27,443 |
Other income | 6,976 | 2,496 |
Interest expense | (91) | (5) |
Total other income (expense), net | 46,162 | 29,934 |
Net Income (Loss) | $ (1,251,913) | $ 402,844 |
Weighted Average Units Outstanding, Basic | 40,148,160 | 40,148,160 |
Weighted Average Units Outstanding, Diluted | 40,148,160 | 40,148,160 |
Net Income (Loss) Per Unit, Basic | $ (0.03) | $ 0.01 |
Net Income (Loss) Per Unit, Diluted | $ (0.03) | $ 0.01 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ (1,251,913) | $ 402,844 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,198,122 | 1,189,514 |
Loss on disposal of fixed assets | 13,254 | |
Change in fair value of derivative instruments | 31,990 | (2,123,150) |
Lower of cost of net realizable value adjustment | (22,705) | 0 |
Loss on firm purchase commitments | 76,000 | 5,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | (246,755) | (231,671) |
Inventory | (1,356,492) | 141,450 |
Prepaid expenses | (484,314) | (228,582) |
Accounts payable | (657,051) | 20,831 |
Accrued expenses | 1,900,093 | (371,472) |
Accrued purchase commitment losses | 76,000 | 5,000 |
Net cash used in operating activities | (691,615) | (1,176,982) |
Cash Flows from Investing Activities | ||
Capital expenditures | (707,802) | (80,306) |
Net cash (used in) investing activities | (707,802) | (80,306) |
Cash Flows from Financing Activities | ||
Net advances on notes payable | (1,149) | (657) |
Net cash (used in) financing activities | (1,149) | (657) |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (1,400,566) | (1,257,945) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 10,522,069 | 10,873,339 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 9,121,503 | 9,615,394 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 9,121,503 | 9,615,394 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | 91 | 5 |
Noncash Investing and Financing Activities | ||
Capital expenditures in accounts payable | $ 0 | $ 10,176 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Red Trail Energy, LLC, a North Dakota limited liability company (the “Company”), owns and operates a 50 million gallon annual name-plate production ethanol plant near Richardton, North Dakota (the “Plant”). Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, inventory and allowance for doubtful accounts. Actual results could differ from those estimates. Net Income Per Unit Net income per unit is calculated on a basic and fully diluted basis using the weighted average units outstanding during the period. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASC 606, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. Effective October 1, 2018, the Company adopted ASC 606 for all of its contracts using the modified retrospective approach. See note 2. Statement of Cash Flows; Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annal periods beginning after December 15, 2017, and interim periods within those annual periods. Effective October 1, 2018 the Company retrospectively adopted ASU No. 2016-18. Lease Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, "Leases (topic 842)" which requires a lessee to recognize a right to use asset and a lease liability on its balance sheet for all leases with terms of twelve months or greater. This guidance is effective for fiscal years beginning after December 15, 2018, included interim periods within those years with early adoption permitted. Effective October 1, 2019 the Company adopted ASU No. 2016-02 using the modified retrospective approach. See note 7 for current operating and financing lease commitments. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Adoption of ASC 606 Effective October 1, 2018, the Company adopted ASC 606 using the modified retrospective approach for all of its contracts. Following the adoption of ASC 606, the Company continues to recognize revenue at a point-in-time when control of goods transfers to the customer. This is consistent with the Company's previous revenue recognition accounting policy under which the Company recognized revenue when title and risk of loss pass to the customer and collectability was reasonably assured. ASC 606 did not impact the Company's presentation of revenue on a gross or net basis. The Company recognizes revenue primarily from sales of ethanol and its related co-products. Revenue Recognition The Company recognizes revenue from sales of ethanol and co-products at the point in time when the performance obligations in the contract are met, which is when the customer obtains control of such products and typically occurs upon shipment depending on the terms of the underlying contracts. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of co-products over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligation. Revenue by Source The following table disaggregates revenue by major source for the three months ended December 31, 2019 and 2018. Revenues For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Ethanol and E85 $ 20,420,028 $ 19,539,168 Distillers Grains 4,814,637 5,616,777 Syrup 92,359 92,009 Corn Oil 965,372 605,140 Other 48,517 56,042 Total revenue from contracts with customers $ 26,340,913 $ 25,909,136 Shipping and Handling Costs We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, we record customer payments associated with shipping and handling costs as a component of revenue, and classify such costs as a component of cost of goods sold. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Commodity Contracts As part of its hedging strategy, the Company may enter into ethanol, soybean, soybean oil, natural gas and corn commodity-based derivatives in order to protect cash flows from fluctuations caused by volatility in commodity prices in order to protect gross profit margins from potentially adverse effects of market and price volatility on ethanol sales, corn oil sales, and corn purchase commitments where the prices are set at a future date. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Ethanol derivative fair market value gains or losses are included in the results of operations and are classified as revenue and corn derivative changes in fair market value are included in cost of goods sold. As of: December 31, 2019 (unaudited) September 30, 2019 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures 10 50,000 bushels $ 4,625 — — bushels $ — Corn options 270 1,350,000 bushels $ (30,750 ) 30 150,000 bushels $ (8,875 ) Natural gas futures 35 350,000 dk $ (6,900 ) — — dk $ — Natural gas options 7 70,000 dk $ (7,840 ) — — dk $ — Total fair value $ (40,865 ) $ (8,875 ) Amounts are combined on the balance sheet - negative numbers represent liabilities The following tables provide details regarding the Company's derivative financial instruments at December 31, 2019 and September 30, 2019 : Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2019 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 40,865 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 40,865 Balance Sheet - as of September 30, 2019 Asset Liability Commodity derivative instruments, at fair value $ — $ 8,875 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 8,875 Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended December 31, 2019 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2018 (unaudited) Corn derivative instruments Cost of Goods Sold $ 104,683 $ 2,068,502 Natural gas derivative instruments Cost of Goods Sold (27,850 ) — Total $ 76,833 $ 2,068,502 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2019 and September 30, 2019 were as follows: As of December 31, 2019 (unaudited) September 30, 2019 Raw materials, including corn, chemicals and supplies $ 4,249,606 $ 2,679,126 Work in process 877,881 956,509 Finished goods, including ethanol and distillers grains 1,150,551 1,459,561 Spare parts 1,942,574 1,867,629 Total inventory $ 8,220,612 $ 6,962,825 Lower of cost or net realizable value adjustments for the three months ended December 31, 2019 and 2018 were as follows: For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Loss on firm purchase commitments $ 76,000 $ 5,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ 22,705 $ — Total loss on lower of cost or net realizable value adjustments $ 98,705 $ 5,000 The Company has entered into forward corn purchase contracts under which it is required to take delivery at the contract price. At the time the contracts were created, the price of the contract approximated market price. Subsequent changes in market conditions could cause the contract prices to become higher or lower than market prices. As of December 31, 2019 , the average price of corn purchased under certain fixed price contracts, that had not yet been delivered, was greater than approximated market price. Based on this information, the Company has a $76,000 estimated loss on firm purchase commitments for the three months ended December 31, 2019 . The loss is recorded in “Loss on firm purchase commitments” on the statement of operations. The amount of the potential loss was determined by applying a methodology similar to that used in the impairment valuation with respect to inventory. Given the uncertainty of future ethanol prices, further losses on the outstanding purchase commitments could be recorded in future periods. |
Bank Financing
Bank Financing | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Bank Financing | BANK FINANCING On October 1, 2019, we terminated our $7 million Revolving Loan with U.S. Bank National Association ("U.S. Bank"). The maturity date of the Revolving Loan was May 31, 2020. Our ability to draw funds on the Revolving Loan was subject to a borrowing base calculation as set forth in the Credit Agreement. On January 22, 2020 we entered into a new $10 million revolving loan (the "Revolving Loan") with Cornerstone Bank ("Cornerstone"). The Revolving Loan replaced a similar revolving loan we had with U.S. Bank National Association. The maturity date of the Revolving Loan is January 21, 2021. The variable interest rate on December 31, 2019 will be 3.55% . On January 22, 2020, we entered into a new $7 million construction loan (the "Construction Loan") with Cornerstone. The maturity date of the Construction Loan is June 1, 2021. The variable interest rate on December 31, 2019 will be 3.55% . The Company's loans are secured by a lien on substantially all of the assets of the Company. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table provides information on those liabilities that are measured at fair value on a recurring basis as of December 31, 2019 and September 30, 2019 , respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2019 (unaudited) Fair Value as of December 31, 2019 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 40,865 $ 40,865 $ 40,865 $ — $ — Total $ 40,865 $ 40,865 $ 40,865 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2019 Fair Value as of September 30, 2019 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 8,875 $ 8,875 $ 8,875 $ — $ — Total $ 8,875 $ 8,875 $ 8,875 $ — $ — The fair value of the corn, ethanol, soybean oil and natural gas derivative instruments is based on quoted market prices in an active market. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Effective October 1, 2019, the Company adopted the provisions of ASU No. 2016-02, "Leases (topic 842)" using the modified retrospective approach which applies the provisions of ASU No. 2016-02 upon adoption, with no change to prior periods. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of $1,418,000. The adoption did not have a significant impact on the Company's statement of operations. Upon the initial adoption of ASU No. 2016-02, the Company elected the following practical expedients allowable under the guidance: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases; not to separately identify lease and nonlease components; and not to evaluate historical land easements. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASU No. 2016-02 to only long-term (greater than 1 year) leases. The Company leases railcar and plant equipment. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended December 31, 2019, the Company's estimated discount rate was 3.55% . Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company's leases have remaining lease terms of approximately 1 year to 4 years , which may include options to extend the lease when it is reasonably certain the Company will exercise those options. At December 31, 2019 the weighted average remaining lease term is 3.5 years. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company does not have any sublease agreements. The Company is generally responsible for maintenance, taxes, and utilities for leased equipment. Rent expense for operating leases was approximately $205,000 and $161,000 for the three months ended December 31, 2019 and 2018, respectively. Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of December 31, 2019 September 30, 2019 Equipment $ 506,661 $ 483,488 Less accumulated amortization (168,613 ) (162,940 ) Net equipment under financing lease $ 338,048 $ 320,548 At December 31, 2019 , the Company had the following minimum commitments, which at inception had non-cancelable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31 : Operating Leases Financing Leases 2020 $ 390,454 $ 4,483 2021 350,349 4,517 2022 326,349 4,551 2023 215,493 4,585 2024 22,012 4,140 Thereafter — — Total minimum lease commitments $ 1,304,657 22,276 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 22,276 |
Leases | LEASES Effective October 1, 2019, the Company adopted the provisions of ASU No. 2016-02, "Leases (topic 842)" using the modified retrospective approach which applies the provisions of ASU No. 2016-02 upon adoption, with no change to prior periods. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of $1,418,000. The adoption did not have a significant impact on the Company's statement of operations. Upon the initial adoption of ASU No. 2016-02, the Company elected the following practical expedients allowable under the guidance: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases; not to separately identify lease and nonlease components; and not to evaluate historical land easements. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASU No. 2016-02 to only long-term (greater than 1 year) leases. The Company leases railcar and plant equipment. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended December 31, 2019, the Company's estimated discount rate was 3.55% . Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company's leases have remaining lease terms of approximately 1 year to 4 years , which may include options to extend the lease when it is reasonably certain the Company will exercise those options. At December 31, 2019 the weighted average remaining lease term is 3.5 years. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company does not have any sublease agreements. The Company is generally responsible for maintenance, taxes, and utilities for leased equipment. Rent expense for operating leases was approximately $205,000 and $161,000 for the three months ended December 31, 2019 and 2018, respectively. Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of December 31, 2019 September 30, 2019 Equipment $ 506,661 $ 483,488 Less accumulated amortization (168,613 ) (162,940 ) Net equipment under financing lease $ 338,048 $ 320,548 At December 31, 2019 , the Company had the following minimum commitments, which at inception had non-cancelable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31 : Operating Leases Financing Leases 2020 $ 390,454 $ 4,483 2021 350,349 4,517 2022 326,349 4,551 2023 215,493 4,585 2024 22,012 4,140 Thereafter — — Total minimum lease commitments $ 1,304,657 22,276 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 22,276 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Firm Purchase Commitments for Corn To ensure an adequate supply of corn to operate the Plant, the Company enters into contracts to purchase corn from local farmers and elevators. At December 31, 2019 , the Company had various fixed price contracts for the purchase of approximately 1.3 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $4.7 million related to the 1.3 million bushels under contract. Water To meet the plant's water requirements, we entered into a ten -year contract with Southwest Water Authority to purchase raw water. Our contract requires us to purchase a minimum of 160 million gallons of water per year. The minimum estimated liability for this contract is $424,000 per year. Profit and Cost Sharing Agreement The Company has entered into a Profit and Cost Sharing Agreement with Bismarck Land Company, LLC which became effective on November 1, 2016. The Profit and Cost Sharing Agreement provides that the Company will share 70% of the net revenue generated by the Company from business activities which are brought to the Company by Bismarck Land Company, LLC and conducted on the real estate purchased from the Bismarck Land Company, LLC. The real estate was initially purchased in exchange for 2 million membership units at $1.66 per unit. This obligation will terminate ten years after the real estate closing date of October 11, 2016 or after Bismarck Land Company, LLC receives $10 million in proceeds from the agreement. In addition, the Company will pay Bismarck Land Company, LLC 70% of any net proceeds received by the Company from the sale of the subject real estate if a sale were to occur in the future, subject to the $10 million cap and the 10 year termination of this obligation. The Company has paid Bismarck Land Company, LLC $28,315 as of December 31, 2019. Carbon Capture and Storage Project The Company has entered into a research agreement with the University of North Dakota Energy and Environmental Research Center to explore the feasibility of injecting CO2 from the fermentation process into a saline formation to lower the carbon intensity value of our ethanol. The Company has committed to fund up to $950,000 for this research. The Company has paid $612,140 as of December 31, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has balances and transactions in the normal course of business with various related parties for the purchase of corn, sale of distillers grains and sale of ethanol. The related parties include unit holders, members of the board of governors of the Company, and RPMG, Inc. (“RPMG”). Significant related party activity affecting the financial statements is as follows: December 31, 2019 (unaudited) September 30, 2019 Balance Sheet Accounts receivable $ 3,757,314 $ 3,695,462 Accounts Payable 6,825 298,638 Accrued Expenses 580,975 41,643 For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Statement of Operations Revenues $ 24,561,170 $ 24,188,143 Cost of goods sold 602,869 14,104 General and administrative 41,304 30,910 Inventory Purchases $ 2,671,939 $ 3,703,065 |
Uncertainties Impacting the Eth
Uncertainties Impacting the Ethanol Industry and Our Future Operations | 3 Months Ended |
Dec. 31, 2019 | |
Uncertainties Impacting the Ethanol Industry and Our Future Operations [Abstract] | |
Uncertainties Impacting the Ethanol Industry and Our Future Operations | UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS The Company has certain risks and uncertainties that it experiences during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distillers grains to customers primarily located in the United States. Corn for the production process is supplied to the Plant primarily from local agricultural producers and from purchases on the open market. The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol and distillers grains and by the cost at which it is able to purchase corn for operations. The price of ethanol is influenced by factors such as prices, supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence with ethanol selling for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. The Company's financial performance is highly dependent on the Federal Renewable Fuels Standard ("RFS") which requires that a certain amount of renewable fuels must be used each year in the United States. Corn based ethanol, such as the ethanol the Company produces, can be used to meet a portion of the RFS requirement. In November 2013, the EPA issued a proposed rule which would reduce the RFS for 2014, including the RFS requirement related to corn based ethanol. The EPA proposed rule was subject to a comment period which expired in January 2014. On November 30, 2015, the EPA released its final ethanol use requirements for 2014, 2015 and 2016 which were lower than the statutory requirements in the RFS. However, the final RFS for 2017 equaled the statutory requirement which was also the case for the 2018, 2019 and 2020 RFS final rules. The Company anticipates that the results of operations during the remainder of fiscal year 2020 will continue to be affected by volatility in the commodity markets. The volatility is due to various factors, including uncertainty with respect to the availability and supply of corn, increased demand for grain from global and national markets, speculation in the commodity markets and demand for corn from the ethanol industry. |
Member's Equity
Member's Equity | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Member's Equity | MEMBER'S EQUITY Changes in member's equity for the fiscal year ended September 30, 2019 and the three months ended December 31, 2019. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2018 $ 39,044,595 $ 75,541 $ 25,358,139 $ (159,540 ) $ 64,318,735 Net income (loss) — — 402,844 — 402,844 Balances - December 31, 2018 39,044,595 75,541 25,760,983 (159,540 ) 64,721,579 Distribution — — (1,782 ) — (1,782 ) Net income — — (1,423,308 ) — (1,423,308 ) Balances - March 31, 2019 $ 39,044,595 $ 75,541 $ 24,335,893 $ (159,540 ) $ 63,296,489 Net income — — 817,986 — 817,986 Balances - June 30, 2019 $ 39,044,595 $ 75,541 $ 25,153,879 $ (159,540 ) $ 64,114,475 Net income $ (3,540,211 ) $ (3,540,211 ) Balances - September 30, 2019 $ 39,044,595 $ 75,541 $ 21,613,668 $ (159,540 ) $ 60,574,264 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2019 $ 39,044,595 $ 75,541 $ 21,613,668 $ (159,540 ) $ 60,574,264 Net income (loss) — — (1,251,913 ) — (1,251,913 ) Balances December 31, 2019 39,044,595 75,541 20,361,755 (159,540 ) 59,322,351 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTS On January 22, 2020 the Company entered into a new revolving loan and new construction loan with Cornerstone Bank. See Note 5. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, inventory and allowance for doubtful accounts. Actual results could differ from those estimates. |
Net Income Per Unit | Net Income Per Unit Net income per unit is calculated on a basic and fully diluted basis using the weighted average units outstanding during the period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASC 606, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. Effective October 1, 2018, the Company adopted ASC 606 for all of its contracts using the modified retrospective approach. See note 2. Statement of Cash Flows; Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annal periods beginning after December 15, 2017, and interim periods within those annual periods. Effective October 1, 2018 the Company retrospectively adopted ASU No. 2016-18. Lease Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, "Leases (topic 842)" which requires a lessee to recognize a right to use asset and a lease liability on its balance sheet for all leases with terms of twelve months or greater. This guidance is effective for fiscal years beginning after December 15, 2018, included interim periods within those years with early adoption permitted. Effective October 1, 2019 the Company adopted ASU No. 2016-02 using the modified retrospective approach. See note 7 for current operating and financing lease commitments. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major source for the three months ended December 31, 2019 and 2018. Revenues For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Ethanol and E85 $ 20,420,028 $ 19,539,168 Distillers Grains 4,814,637 5,616,777 Syrup 92,359 92,009 Corn Oil 965,372 605,140 Other 48,517 56,042 Total revenue from contracts with customers $ 26,340,913 $ 25,909,136 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments Commodity Contracts | As of: December 31, 2019 (unaudited) September 30, 2019 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures 10 50,000 bushels $ 4,625 — — bushels $ — Corn options 270 1,350,000 bushels $ (30,750 ) 30 150,000 bushels $ (8,875 ) Natural gas futures 35 350,000 dk $ (6,900 ) — — dk $ — Natural gas options 7 70,000 dk $ (7,840 ) — — dk $ — Total fair value $ (40,865 ) $ (8,875 ) Amounts are combined on the balance sheet - negative numbers represent liabilities |
Derivatives Not Designated As Hedging Instruments, Balance Sheet | The following tables provide details regarding the Company's derivative financial instruments at December 31, 2019 and September 30, 2019 : Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2019 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 40,865 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 40,865 Balance Sheet - as of September 30, 2019 Asset Liability Commodity derivative instruments, at fair value $ — $ 8,875 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 8,875 |
Derivatives Not Designated as Hedging Instruments, Statement of Operations | Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended December 31, 2019 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2018 (unaudited) Corn derivative instruments Cost of Goods Sold $ 104,683 $ 2,068,502 Natural gas derivative instruments Cost of Goods Sold (27,850 ) — Total $ 76,833 $ 2,068,502 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2019 and September 30, 2019 were as follows: As of December 31, 2019 (unaudited) September 30, 2019 Raw materials, including corn, chemicals and supplies $ 4,249,606 $ 2,679,126 Work in process 877,881 956,509 Finished goods, including ethanol and distillers grains 1,150,551 1,459,561 Spare parts 1,942,574 1,867,629 Total inventory $ 8,220,612 $ 6,962,825 |
Long-term Purchase Commitment | Lower of cost or net realizable value adjustments for the three months ended December 31, 2019 and 2018 were as follows: For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Loss on firm purchase commitments $ 76,000 $ 5,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ 22,705 $ — Total loss on lower of cost or net realizable value adjustments $ 98,705 $ 5,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information on those liabilities that are measured at fair value on a recurring basis as of December 31, 2019 and September 30, 2019 , respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2019 (unaudited) Fair Value as of December 31, 2019 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 40,865 $ 40,865 $ 40,865 $ — $ — Total $ 40,865 $ 40,865 $ 40,865 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2019 Fair Value as of September 30, 2019 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 8,875 $ 8,875 $ 8,875 $ — $ — Total $ 8,875 $ 8,875 $ 8,875 $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Equipment under financing leases is as follows at: As of December 31, 2019 September 30, 2019 Equipment $ 506,661 $ 483,488 Less accumulated amortization (168,613 ) (162,940 ) Net equipment under financing lease $ 338,048 $ 320,548 |
Schedule of Future Minimum Payments for Capital Leases | At December 31, 2019 , the Company had the following minimum commitments, which at inception had non-cancelable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31 : Operating Leases Financing Leases 2020 $ 390,454 $ 4,483 2021 350,349 4,517 2022 326,349 4,551 2023 215,493 4,585 2024 22,012 4,140 Thereafter — — Total minimum lease commitments $ 1,304,657 22,276 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 22,276 |
Schedule of Future Minimum Payments for Operating Leases | At December 31, 2019 , the Company had the following minimum commitments, which at inception had non-cancelable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31 : Operating Leases Financing Leases 2020 $ 390,454 $ 4,483 2021 350,349 4,517 2022 326,349 4,551 2023 215,493 4,585 2024 22,012 4,140 Thereafter — — Total minimum lease commitments $ 1,304,657 22,276 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 22,276 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Significant related party activity affecting the financial statements is as follows: December 31, 2019 (unaudited) September 30, 2019 Balance Sheet Accounts receivable $ 3,757,314 $ 3,695,462 Accounts Payable 6,825 298,638 Accrued Expenses 580,975 41,643 For the three months ended December 31, 2019 (unaudited) For the three months ended December 31, 2018 (unaudited) Statement of Operations Revenues $ 24,561,170 $ 24,188,143 Cost of goods sold 602,869 14,104 General and administrative 41,304 30,910 Inventory Purchases $ 2,671,939 $ 3,703,065 |
Member's Equity (Tables)
Member's Equity (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Member's Equity | Changes in member's equity for the fiscal year ended September 30, 2019 and the three months ended December 31, 2019. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2018 $ 39,044,595 $ 75,541 $ 25,358,139 $ (159,540 ) $ 64,318,735 Net income (loss) — — 402,844 — 402,844 Balances - December 31, 2018 39,044,595 75,541 25,760,983 (159,540 ) 64,721,579 Distribution — — (1,782 ) — (1,782 ) Net income — — (1,423,308 ) — (1,423,308 ) Balances - March 31, 2019 $ 39,044,595 $ 75,541 $ 24,335,893 $ (159,540 ) $ 63,296,489 Net income — — 817,986 — 817,986 Balances - June 30, 2019 $ 39,044,595 $ 75,541 $ 25,153,879 $ (159,540 ) $ 64,114,475 Net income $ (3,540,211 ) $ (3,540,211 ) Balances - September 30, 2019 $ 39,044,595 $ 75,541 $ 21,613,668 $ (159,540 ) $ 60,574,264 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2019 $ 39,044,595 $ 75,541 $ 21,613,668 $ (159,540 ) $ 60,574,264 Net income (loss) — — (1,251,913 ) — (1,251,913 ) Balances December 31, 2019 39,044,595 75,541 20,361,755 (159,540 ) 59,322,351 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Nature of Business (Details) gal in Millions | 3 Months Ended | ||||
Dec. 31, 2019USD ($)gal | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Product Information [Line Items] | |||||
Net cash provided by operating activities | $ (691,615) | $ (1,176,982) | |||
Cash, cash equivalents and restricted cash | $ 9,121,503 | $ 9,615,394 | $ 10,522,069 | $ 9,615,394 | $ 10,873,339 |
Ethanol | |||||
Product Information [Line Items] | |||||
Annual production capacity | gal | 50 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 26,340,913 | $ 25,909,136 |
Ethanol and E85 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 20,420,028 | 19,539,168 |
Distillers Grains | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 4,814,637 | 5,616,777 |
Syrup | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 92,359 | 92,009 |
Corn Oil | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 965,372 | 605,140 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 48,517 | $ 56,042 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Contracts (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($)buMMBTUcontract | Sep. 30, 2018MMBTU | Sep. 30, 2019USD ($)bucontract | |
Derivative [Line Items] | |||
Fair Value | $ (40,865) | $ (8,875) | |
Commodity Contract | Commodity | |||
Derivative [Line Items] | |||
Fair Value | $ (40,865) | $ (8,875) | |
Corn | Commodity | |||
Derivative [Line Items] | |||
Number of Contracts | contract | 10 | 0 | |
Notional Amount (Qty) | bu | 50,000 | 0 | |
Fair Value | $ 4,625 | ||
Fair Value | $ 0 | ||
Corn | Corn options | |||
Derivative [Line Items] | |||
Number of Contracts | contract | 270 | 30 | |
Notional Amount (Qty) | bu | 1,350,000 | 150,000 | |
Fair Value | $ (30,750) | $ (8,875) | |
Natural gas | Commodity | |||
Derivative [Line Items] | |||
Number of Contracts | contract | 35 | 0 | |
Notional Amount (Qty) | MMBTU | 350,000 | 0 | |
Fair Value | $ (6,900) | $ 0 | |
Natural gas | Corn options | |||
Derivative [Line Items] | |||
Number of Contracts | contract | 7 | 0 | |
Notional Amount (Qty) | MMBTU | 70,000 | 0 | |
Fair Value | $ (7,840) | $ 0 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 40,865 | $ 8,875 |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Liabilities | 40,865 | 8,875 |
Derivative Liability, Fair Value, Gross Liability | $ 40,865 | $ 8,875 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Corn | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 104,683 | $ 2,068,502 |
Natural gas | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (27,850) | 0 |
Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 76,833 | $ 2,068,502 |
- Narrative (Details)
- Narrative (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials, including corn, chemicals and supplies | $ 4,249,606 | $ 2,679,126 |
Work in process | 877,881 | 956,509 |
Finished goods, including ethanol and distillers grains | 1,150,551 | 1,459,561 |
Spare parts | 1,942,574 | 1,867,629 |
Inventory | $ 8,220,612 | $ 6,962,825 |
Inventory - Total Loss on Lower
Inventory - Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Loss on firm purchase commitments | $ 76,000 | $ 5,000 |
Lower of cost or market inventory adjustment | 22,705 | 0 |
Total loss on lower of cost or market adjustments | $ 98,705 | $ 5,000 |
Bank Financing - Narrative (Det
Bank Financing - Narrative (Details) - Revolving loan - USD ($) | Jan. 22, 2020 | Dec. 31, 2019 |
Revolving loan | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 7,000,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.55% | |
Subsequent Event | Revolving loan | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |
Subsequent Event | Construction Loans [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 40,865 | $ 8,875 |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 40,865 | 8,875 |
Liabilities | 40,865 | |
Liabilities | 8,875 | |
Liabilities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 40,865 | 8,875 |
Liabilities | 40,865 | |
Liabilities | 8,875 | |
Liabilities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Liabilities | 0 | |
Liabilities | 0 | |
Liabilities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Liabilities | $ 0 | |
Liabilities | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | |
Discount rate (percentage) | 3.55% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 4 years |
Leases - Schedule of Capital Le
Leases - Schedule of Capital Leased Assets (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Transportation Equipment | |||
Capital Leased Assets [Line Items] | |||
Rent expense for operating leases | $ 205,000 | ||
Rent for operating leases | $ 161,000 | ||
Equipment | |||
Capital Leased Assets [Line Items] | |||
Equipment | 506,661 | $ 483,488 | |
Less accumulated amortization | (168,613) | (162,940) | |
Net equipment under capital lease | $ 338,048 | $ 320,548 |
- Schedule of Future Minimum Pa
- Schedule of Future Minimum Payments (Details) | Dec. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 390,454 |
2020 | 350,349 |
2021 | 326,349 |
2022 | 215,493 |
2023 | 22,012 |
Thereafter | 0 |
Total minimum lease commitments | 1,304,657 |
Financing Leases | |
2019 | 4,483 |
2020 | 4,517 |
2021 | 4,551 |
2022 | 4,585 |
2023 | 4,140 |
Thereafter | 0 |
Total minimum lease commitments | 22,276 |
Less amount representing interest | 0 |
Present value of minimum lease commitments included in current maturities of long-term debt on the balance sheet | $ 22,276 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, gal in Millions, bu in Millions | Nov. 01, 2016USD ($)$ / sharesshares | Oct. 11, 2016 | Dec. 31, 2019USD ($)bugal |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Commitment to fund research (up to) | $ 950,000 | ||
Amount paid | 612,140 | ||
Profit and Cost Sharing Agreement | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Percent Of Net Revenue Generated From Business Activities Conducted On Purchased Real Estate | 70.00% | ||
Stock Issued During Period, Shares, Purchase of Assets | shares | 2 | ||
Shares Issued, Price Per Share | $ / shares | $ 1.66 | ||
Length Of Contract | 10 years | 10 years | |
Payments for (Proceeds from) Other Real Estate Partnerships | $ 10,000,000 | ||
Guarantor Obligations, Liquidation Proceeds, Percentage | 70.00% | ||
Accrued payments | $ 28,315 | ||
Bushels of corn | Fixed price contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount, volume | bu | 1.3 | ||
Commitments | $ 4,700,000 | ||
Raw water | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Contract term | 10 years | ||
Minimum purchase, volume | gal | 160 | ||
Minimum estimated liability | $ 424,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |||
Accounts receivable | $ 3,757,314 | $ 3,695,462 | |
Accounts Payable | 6,825 | 298,638 | |
Accrued Expenses | 580,975 | $ 41,643 | |
Revenues | 24,561,170 | $ 24,188,143 | |
Cost of goods sold | 602,869 | 14,104 | |
General and administrative | 41,304 | 30,910 | |
Inventory Purchases | $ 2,671,939 | $ 3,703,065 |
Member's Equity - Schedule of C
Member's Equity - Schedule of Changes in Member's Equity (Details) - USD ($) | 3 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 60,574,264 | $ 64,114,475 | $ 63,296,489 | $ 64,721,579 | $ 64,318,735 | |
Distribution | (1,782) | |||||
Net income (loss) | (1,251,913) | (3,540,211) | 817,986 | (1,423,308) | 402,844 | |
Ending balance | 59,322,351 | 60,574,264 | 64,114,475 | 63,296,489 | 64,721,579 | |
Distribution (usd per unit) | $ 0.05 | |||||
Class A Member Units | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | |
Ending balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | |
Additional Paid in Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | |
Ending balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | |
Accumulated Deficit/Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 21,613,668 | 25,153,879 | 24,335,893 | 25,760,983 | 25,358,139 | |
Distribution | (1,782) | |||||
Net income (loss) | (1,251,913) | (3,540,211) | 817,986 | (1,423,308) | 402,844 | |
Ending balance | 20,361,755 | 21,613,668 | 25,153,879 | 24,335,893 | 25,760,983 | |
Treasury Units | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (159,540) | (159,540) | (159,540) | (159,540) | (159,540) | |
Ending balance | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) |
Uncategorized Items - rte-20191
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 6,244,833 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,121,853 |