Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Dec. 31, 2020shares | |
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, 2020 |
Entity File Number | 000-52033 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Document Quarterly Report | true |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 40,148,160 |
Entity Incorporation, State or Country Code | ND |
Entity Tax Identification Number | 76-0742311 |
Entity Address, Address Line One | 3682 Highway 8 South |
Entity Address, Address Line Two | P.O. Box 11 |
Entity Address, City or Town | Richardton |
Entity Address, State or Province | ND |
Entity Address, Postal Zip Code | 58652 |
City Area Code | 701 |
Local Phone Number | 974-3308 |
Document Transition Report | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Current Assets | ||
Cash and equivalents | $ 7,438,170 | $ 9,304,638 |
Restricted cash - margin account | 2,131,720 | 1,807,851 |
Accounts receivable, primarily related party | 1,858,747 | 1,963,236 |
Derivative Asset, Current | 270,125 | 42,005 |
Inventory | 9,556,854 | 10,137,872 |
Prepaid expenses | 968,094 | 371,283 |
Total current assets | 22,223,710 | 23,626,885 |
Property, Plant and Equipment | ||
Land | 1,333,681 | 1,333,681 |
Land improvements | 4,465,311 | 4,465,311 |
Buildings | 8,135,994 | 8,135,994 |
Plant and equipment | 88,497,833 | 88,442,644 |
Construction in progress | 14,962,665 | 9,805,770 |
Gross property, plant and equipment | 117,395,484 | 112,183,400 |
Less accumulated depreciation | 69,059,927 | 67,855,740 |
Net property, plant and equipment | 48,335,557 | 44,327,660 |
Other Assets | ||
Right of use operating lease assets, net | 983,528 | 1,008,677 |
Investment in RPMG | 605,000 | 605,000 |
Patronage equity | 4,540,963 | 4,540,963 |
Deposits | 40,000 | 40,000 |
Total other assets | 6,169,491 | 6,194,640 |
Total Assets | 76,728,758 | 74,149,185 |
Current Liabilities | ||
Accounts payable | 5,120,272 | 4,299,764 |
Accrued expenses | 1,558,770 | 1,937,555 |
Accrued loss on firm purchase commitments (see notes 3 and 7) | 130,000 | 130,000 |
Other Liabilities, Current | 69,208 | 0 |
Current maturities of notes payable | 1,282,923 | 1,276,256 |
Current portion of operating lease liabilities | 372,997 | 364,862 |
Total current liabilities | 8,534,170 | 8,008,437 |
Long-Term Liabilities | ||
Notes payable | 4,737,511 | 4,916,081 |
Long-term operating lease liabilities | 610,531 | 643,815 |
Total long-term liabilities | 5,348,042 | 5,559,896 |
Stockholders' Equity Attributable to Parent | 62,846,546 | 60,580,852 |
Total Liabilities and Members’ Equity | $ 76,728,758 | $ 74,149,185 |
Membership units outstanding | 40,148,160 |
Condensed Balance Sheets Parent
Condensed Balance Sheets Parenthetical | Dec. 31, 2020shares |
Statement of Financial Position [Abstract] | |
Membership units outstanding | 40,148,160 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues, primarily related party | $ 27,557,555 | $ 26,340,913 |
Cost of Goods Sold | ||
Cost of goods sold | 23,640,426 | 26,740,778 |
Lower of cost or net realizable value adjustment | 263,777 | 22,705 |
Loss on firm purchase commitments | 0 | 76,000 |
Total Cost of Goods Sold | 23,904,203 | 26,839,483 |
Gross Profit | 3,653,352 | (498,570) |
General and Administrative Expenses | 1,409,536 | 799,505 |
Operating Income (Loss) | 2,243,816 | (1,298,075) |
Other Income (Expense) | ||
Interest income | 23,266 | 39,277 |
Other income | 11,896 | 6,976 |
Interest expense | (13,284) | (91) |
Total other income (expense), net | 21,878 | 46,162 |
Net Income (Loss) | $ 2,265,694 | $ (1,251,913) |
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 | $ 0.06 | $ (0.03) |
Net Income (Loss) Per Unit, Diluted | $ 0.06 | $ (0.03) |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 2,265,694 | $ (1,251,913) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,204,187 | 1,198,122 |
Change in fair value of derivative instruments | (228,120) | 31,990 |
Lower of cost of net realizable value adjustment | (263,777) | (22,705) |
Loss on firm purchase commitments | 0 | 76,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | 104,489 | (246,755) |
Inventory | 317,242 | (1,356,492) |
Prepaid expenses | (596,811) | (484,314) |
Accounts payable | 718,110 | (657,051) |
Accrued expenses | (378,785) | 1,900,093 |
Increase (Decrease) in Deposits | 69,208 | 0 |
Accrued purchase commitment losses | 0 | 76,000 |
Net cash provided by (used in) operating activities | 3,669,783 | (691,615) |
Cash Flows from Investing Activities | ||
Capital expenditures | (5,109,687) | (707,802) |
Net cash used in investing activities | (5,109,687) | (707,802) |
Cash Flows from Financing Activities | ||
Debt repayments | 171,903 | 1,149 |
Net cash (used in) financing activities | (102,695) | (1,149) |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (1,542,599) | (1,400,566) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 11,112,489 | 10,522,069 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 9,569,890 | 9,121,503 |
Cash, cash equivalents and restricted cash | 9,569,890 | 9,121,503 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | 13,284 | 91 |
Noncash Investing and Financing Activities | ||
Finance lease asset acquired | 0 | 23,173 |
Operating lease asset acquired | 71,192 | 0 |
Capital expenditures in accounts payable | $ 102,398 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
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 Adopted Accounting Pronouncements Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 adds a current expected credit loss (“ CECL ”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Effective October 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. There was no impact of adoption for the fiscal year ended September 30, 2021. The Company expects the impact of adopting the new standard to be immaterial on an ongoing basis. 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. |
Nature of Operations | Nature of Business |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue Recognition The Company recognizes revenue from sales of ethanol and co-products at the point in time when the performance obligations in the 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, 2020 and 2019. Revenues For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Ethanol, E85 and Industrial Ethanol $ 21,133,349 $ 20,420,028 Distillers Grains 5,168,959 4,814,637 Syrup 123,273 92,359 Corn Oil 1,081,783 965,372 Other 50,191 48,517 Total revenue from contracts with customers $ 27,557,555 $ 26,340,913 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, 2020 | |
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, 2020 (unaudited) September 30, 2020 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures — — bushels $ — 30 1,260,000 bushels $ 104,068 Corn options 400 2,000,000 bushels $ 270,125 83 415,000 bushels $ (62,063) Total fair value $ 270,125 $ 42,005 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, 2020 and September 30, 2020: Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2020 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ 270,125 $ — Total derivatives not designated as hedging instruments for accounting purposes $ 270,125 $ — Balance Sheet - as of September 30, 2020 Asset Liability Commodity derivative instruments, at fair value $ 42,005 $ — Total derivatives not designated as hedging instruments for accounting purposes $ 42,005 $ — 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, 2020 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2019 (unaudited) Corn derivative instruments Cost of Goods Sold $ 249,473 $ 104,683 Ethanol derivative instruments Revenue 301,106 — Natural gas derivative instruments Cost of Goods Sold 1,410 (27,850) Total $ 551,989 $ 76,833 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2020 and September 30, 2020 were as follows: As of December 31, 2020 September 30, 2020 Raw materials, including corn, chemicals and supplies $ 3,476,834 $ 4,031,086 Work in process 894,920 765,673 Finished goods, including ethanol and distillers grains 3,722,358 3,914,117 Spare parts 1,462,742 1,426,996 Total inventory $ 9,556,854 $ 10,137,872 Lower of cost or net realizable value adjustments for the three months ended December 31, 2020 and 2019 were as follows: For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Loss on firm purchase commitments $ — $ 76,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ 263,777 $ 22,705 Total loss on lower of cost or net realizable value adjustments $ 263,777 $ 98,705 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, 2020, the average price of corn purchased under certain fixed price contracts, that had not yet been delivered, equaled approximated market price. Based on this information, the Company has no estimated loss on firm purchase commitments for the three months ended December 31, 2020 and 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 and "Accrued loss on firm purchase commitments" on the balance sheet. The amount of the potential loss was determined by applying a methodology similar to that used in the impairment valuation with respect to inventory. Given the uncertainty of future ethanol prices, further losses on the outstanding purchase commitments could be recorded in future periods. |
Bank Financing
Bank Financing | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Financing | BANK FINANCING On July 13, 2020, we received a $5.41 million loan through the Bank of North Dakota Ethanol Recovery Program and Cornerstone. The Ethanol Recovery Program was developed by the North Dakota Ethanol Producers Association and the Bank of North Dakota to use the existing Biofuels Pace program and value-added loan guarantee program to help ethanol production facilities weather the pandemic economic challenges. Ethanol producers could qualify for up to $15 million of a low interest loan of 1% based on the amount of annual corn grind. The maturity date of the loan is July 13, 2025. The fixed interest rate on December 30, 2020 was 3.75% with an interest rate buy down through the Bank of North Dakota to 1%. On January 22, 2020 we entered into a $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 Revolving Loan was renewed on February 1, 2021. The new maturity date of the Revolving Loan is January 31, 2022. At December 31, 2020, we had $10 million available on the Revolving Loan. The variable interest rate on December 31, 2020 was 3.00%. On January 22, 2020, we entered into a $7 million construction loan (the "Construction Loan") with Cornerstone. The maturity date of the Construction Loan is June 1, 2021. At December 31, 2020, we had $7 million available on the Construction Loan. The variable interest rate on December 31, 2020 was 2.05%. On April 16, 2020, the Company received a Paycheck Protection Program Loan (the "PPP Loan") for $873,400 with Cornerstone. The maturity date of the PPP Loan is April 16, 2022. The fixed interest rate on December 31, 2020 was 1.00%. Under the terms of the loan, the Company may apply for forgiveness under the PPP regulations if the Company uses the proceeds of the loan for its payroll costs and other expenses in accordance with the requirements of the Paycheck Protection Program. The Company used the entire PPP Loan amount for qualifying expenses and applied for forgiveness on October 31, 2020. The Paycheck Protection Program Flexibility Act was signed into law on June 5, 2020 and allows for the amendment of the maturity date on existing loans from two years to five years. We received notice that the PPP loan was forgiven on January 20, 2021. The Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities for the twelve months ended September 30 Totals 2021 $ 1,282,923 2022 1,024,793 2023 758,825 2024 787,250 2025 2,166,643 Total $ 6,020,434 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020 and September 30, 2020, respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2020 (unaudited) Fair Value as of December 31, 2020 (unaudited) Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ 270,125 $ 270,125 $ 270,125 $ — $ — Total $ 270,125 $ 270,125 $ 270,125 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2020 Fair Value as of September 30, 2020 Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ 42,005 $ 42,005 $ 42,005 $ — $ — Total $ 42,005 $ 42,005 $ 42,005 $ — $ — |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020, the Company's estimated discount rate was 3.00%. 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, 2020 the weighted average remaining lease term is 3 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 $167,000 and $205,000 for the three months ended December 31, 2020 and 2019, respectively. Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of December 31, 2020 September 30, 2020 Equipment $ 493,414 $ 493,414 Less accumulated amortization (178,806) (172,944) Net equipment under financing lease $ 314,608 $ 320,470 At December 31, 2020, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2021 $ 372,997 $ 4,517 2022 349,454 4,551 2023 239,075 4,585 2024 22,002 4,141 2025 — — Thereafter — — Total minimum lease commitments $ 983,528 17,794 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 17,794 |
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, 2020, the Company's estimated discount rate was 3.00%. 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, 2020 the weighted average remaining lease term is 3 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 $167,000 and $205,000 for the three months ended December 31, 2020 and 2019, respectively. Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of December 31, 2020 September 30, 2020 Equipment $ 493,414 $ 493,414 Less accumulated amortization (178,806) (172,944) Net equipment under financing lease $ 314,608 $ 320,470 At December 31, 2020, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2021 $ 372,997 $ 4,517 2022 349,454 4,551 2023 239,075 4,585 2024 22,002 4,141 2025 — — Thereafter — — Total minimum lease commitments $ 983,528 17,794 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 17,794 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020, the Company had various fixed price contracts for the purchase of approximately 3.9 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $15.2 million related to the 3.9 million bushels under contract. Water To meet the plant's water requirements, we entered into a ten 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, 2020. 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 incurred $949,631 as of December 31, 2020 which is recorded as consulting services under general and administrative expenses. The Company has entered into an agreement with Salof LTD, Inc for the design, engineering, fabrication and start up of the CO2 capture and liquefaction facility for the carbon capture and storage project. The price of the system including all equipment and services is $11,845,000. The Company has paid $1,776,750 as of December 31,2020. Industrial Alcohol Project |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020 September 30, 2020 Balance Sheet Accounts receivable $ 1,574,471 $ 1,777,576 Accounts payable 322,701 188,457 Accrued expenses 343,801 650,833 For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Statement of Operations Revenues $ 25,123,933 $ 24,561,170 Cost of goods sold 381,644 602,869 General and administrative 30,301 41,304 Other income 2,410 — Inventory Purchases $ 2,387,648 $ 2,671,939 |
Uncertainties Impacting the Eth
Uncertainties Impacting the Ethanol Industry and Our Future Operations | 3 Months Ended |
Dec. 31, 2020 | |
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 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. |
Member's Equity
Member's Equity | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Member's Equity | MEMBER'S EQUITY Changes in member's equity for the fiscal year ended September 30, 2020 and the three months ended December 31, 2020. 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 Distribution — — — — — Net income (loss) — — (3,235,994) — (3,235,994) Balances - March 31, 2020 $ 39,044,595 $ 75,541 $ 17,125,761 $ (159,540) $ 56,086,357 Net income (loss) 2,204,564 2,204,564 Balances - June 30, 2020 $ 39,044,595 $ 75,541 $ 19,330,325 $ (159,540) $ 58,290,921 Distribution Net income (loss) 2,289,931 2,289,931 Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Net income (loss) — — 2,265,694 — 2,265,694 Balances - December 31, 2020 $ 39,044,595 $ 75,541 $ 23,885,950 $ (159,540) $ 62,846,546 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTS On January 20, 2021 we received notice that the PPP loan was forgiven, see note 5. On February 1, 2021 the Company renewed the $10 million Revolving Loan with Cornerstone Bank, see note 5. On February 1, 2021 the Company entered into a $28 million construction loan with Cornerstone for the carbon capture and storage project. The maturity date of the loan is January 31, 2022. The variable interest rate is 3.00%. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates |
Net Income Per Unit | Net Income Per UnitNet 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 Adopted Accounting Pronouncements Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 adds a current expected credit loss (“ CECL ”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Effective October 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. There was no impact of adoption for the fiscal year ended September 30, 2021. The Company expects the impact of adopting the new standard to be immaterial on an ongoing basis. 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, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major source for the three months ended December 31, 2020 and 2019. Revenues For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Ethanol, E85 and Industrial Ethanol $ 21,133,349 $ 20,420,028 Distillers Grains 5,168,959 4,814,637 Syrup 123,273 92,359 Corn Oil 1,081,783 965,372 Other 50,191 48,517 Total revenue from contracts with customers $ 27,557,555 $ 26,340,913 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments Commodity Contracts | As of: December 31, 2020 (unaudited) September 30, 2020 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures — — bushels $ — 30 1,260,000 bushels $ 104,068 Corn options 400 2,000,000 bushels $ 270,125 83 415,000 bushels $ (62,063) Total fair value $ 270,125 $ 42,005 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, 2020 and September 30, 2020: Derivatives not designated as hedging instruments: Balance Sheet - as of December 31, 2020 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ 270,125 $ — Total derivatives not designated as hedging instruments for accounting purposes $ 270,125 $ — Balance Sheet - as of September 30, 2020 Asset Liability Commodity derivative instruments, at fair value $ 42,005 $ — Total derivatives not designated as hedging instruments for accounting purposes $ 42,005 $ — |
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, 2020 (unaudited) Amount of gain (loss) recognized in income during the three months ended December 31, 2019 (unaudited) Corn derivative instruments Cost of Goods Sold $ 249,473 $ 104,683 Ethanol derivative instruments Revenue 301,106 — Natural gas derivative instruments Cost of Goods Sold 1,410 (27,850) Total $ 551,989 $ 76,833 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is valued at the lower of cost or net realizable value. Inventory values as of December 31, 2020 and September 30, 2020 were as follows: As of December 31, 2020 September 30, 2020 Raw materials, including corn, chemicals and supplies $ 3,476,834 $ 4,031,086 Work in process 894,920 765,673 Finished goods, including ethanol and distillers grains 3,722,358 3,914,117 Spare parts 1,462,742 1,426,996 Total inventory $ 9,556,854 $ 10,137,872 |
Long-term Purchase Commitment | Lower of cost or net realizable value adjustments for the three months ended December 31, 2020 and 2019 were as follows: For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Loss on firm purchase commitments $ — $ 76,000 Loss on lower of cost or net realizable value adjustment for inventory on hand $ 263,777 $ 22,705 Total loss on lower of cost or net realizable value adjustments $ 263,777 $ 98,705 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities for the twelve months ended September 30 Totals 2021 $ 1,282,923 2022 1,024,793 2023 758,825 2024 787,250 2025 2,166,643 Total $ 6,020,434 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020 and September 30, 2020, respectively. Fair Value Measurement Using Carrying Amount as of December 31, 2020 (unaudited) Fair Value as of December 31, 2020 (unaudited) Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ 270,125 $ 270,125 $ 270,125 $ — $ — Total $ 270,125 $ 270,125 $ 270,125 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2020 Fair Value as of September 30, 2020 Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ 42,005 $ 42,005 $ 42,005 $ — $ — Total $ 42,005 $ 42,005 $ 42,005 $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Equipment under financing leases is as follows at: As of December 31, 2020 September 30, 2020 Equipment $ 493,414 $ 493,414 Less accumulated amortization (178,806) (172,944) Net equipment under financing lease $ 314,608 $ 320,470 |
Schedule of Future Minimum Payments for Capital Leases | At December 31, 2020, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2021 $ 372,997 $ 4,517 2022 349,454 4,551 2023 239,075 4,585 2024 22,002 4,141 2025 — — Thereafter — — Total minimum lease commitments $ 983,528 17,794 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 17,794 |
Schedule of Future Minimum Payments for Operating Leases | At December 31, 2020, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending December 31: Operating Leases Financing Leases 2021 $ 372,997 $ 4,517 2022 349,454 4,551 2023 239,075 4,585 2024 22,002 4,141 2025 — — Thereafter — — Total minimum lease commitments $ 983,528 17,794 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 17,794 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Significant related party activity affecting the financial statements is as follows: December 31, 2020 September 30, 2020 Balance Sheet Accounts receivable $ 1,574,471 $ 1,777,576 Accounts payable 322,701 188,457 Accrued expenses 343,801 650,833 For the three months ended December 31, 2020 (unaudited) For the three months ended December 31, 2019 (unaudited) Statement of Operations Revenues $ 25,123,933 $ 24,561,170 Cost of goods sold 381,644 602,869 General and administrative 30,301 41,304 Other income 2,410 — Inventory Purchases $ 2,387,648 $ 2,671,939 |
Member's Equity (Tables)
Member's Equity (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Changes in Member's Equity | Changes in member's equity for the fiscal year ended September 30, 2020 and the three months ended December 31, 2020. 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 Distribution — — — — — Net income (loss) — — (3,235,994) — (3,235,994) Balances - March 31, 2020 $ 39,044,595 $ 75,541 $ 17,125,761 $ (159,540) $ 56,086,357 Net income (loss) 2,204,564 2,204,564 Balances - June 30, 2020 $ 39,044,595 $ 75,541 $ 19,330,325 $ (159,540) $ 58,290,921 Distribution Net income (loss) 2,289,931 2,289,931 Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Net income (loss) — — 2,265,694 — 2,265,694 Balances - December 31, 2020 $ 39,044,595 $ 75,541 $ 23,885,950 $ (159,540) $ 62,846,546 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Nature of Business (Details) gal in Millions | 3 Months Ended | |||
Dec. 31, 2020USD ($)gal | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Product Information [Line Items] | ||||
Net cash provided by operating activities | $ 3,669,783 | $ (691,615) | ||
Cash, cash equivalents and restricted cash | 9,569,890 | 9,121,503 | $ 11,112,489 | $ 10,522,069 |
Loss on firm purchase commitments | $ 0 | $ 76,000 | ||
Ethanol | ||||
Product Information [Line Items] | ||||
Annual production capacity | gal | 50 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 27,557,555 | $ 26,340,913 |
Ethanol, E85 and Industrial Ethanol | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 21,133,349 | 20,420,028 |
Distillers Grains | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 5,168,959 | 4,814,637 |
Syrup | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 123,273 | 92,359 |
Corn Oil | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,081,783 | 965,372 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 50,191 | $ 48,517 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Contracts (Details) | Dec. 31, 2020USD ($)contractbu | Sep. 30, 2020USD ($)contractbu |
Commodity Contract | Commodity | ||
Derivative [Line Items] | ||
Fair Value | $ (270,125) | $ (42,005) |
Corn | Commodity | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 0 | 30 |
Notional Amount (Qty) | bu | 0 | 1,260,000 |
Fair Value | $ 0 | $ (104,068) |
Corn | Corn options | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 400 | 83 |
Notional Amount (Qty) | bu | 2,000,000 | 415,000 |
Fair Value | $ (270,125) | $ (62,063) |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 270,125 | $ 42,005 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Fair Value | 270,125 | 42,005 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | $ 0 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Corn | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 249,473 | $ 104,683 |
Ethanol | Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 301,106 | 0 |
Natural gas | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1,410 | (27,850) |
Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 551,989 | $ 76,833 |
- Narrative (Details)
- Narrative (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials, including corn, chemicals and supplies | $ 3,476,834 | $ 4,031,086 |
Work in process | 894,920 | 765,673 |
Finished goods, including ethanol and distillers grains | 3,722,358 | 3,914,117 |
Spare parts | 1,462,742 | 1,426,996 |
Inventory | $ 9,556,854 | $ 10,137,872 |
Inventory - Total Loss on Lower
Inventory - Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Loss on firm purchase commitments | $ 0 | $ 76,000 |
Lower of cost or market inventory adjustment | 263,777 | 22,705 |
Total loss on lower of cost or market adjustments | $ 263,777 | $ 98,705 |
Bank Financing - Narrative (Det
Bank Financing - Narrative (Details) - USD ($) | Apr. 16, 2020 | Dec. 31, 2020 | Jan. 22, 2020 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 6,020,434 | ||
Long-Term Debt, Maturity, Year One | 1,282,923 | ||
Long-Term Debt, Maturity, Year Two | 1,024,793 | ||
Long-Term Debt, Maturity, Year Three | 758,825 | ||
Long-Term Debt, Maturity, Year Four | 787,250 | ||
Long-Term Debt, Maturity, Year Five | $ 2,166,643 | ||
PPP Loan, CARES Act | |||
Debt Instrument [Line Items] | |||
Proceeds from Lines of Credit | $ 873,400 | ||
PPP loan, fixed interest rate (as a percent) | 1.00% | ||
Revolving loan | Revolving loan | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | ||
Line of Credit Facility, Interest Rate at Period End | 3.00% | ||
Bank of North Dakota Ethanol Recovery Progrm | (3.75%) | ||
Bank of North Dakota Ethanol Recovery Program, Rate after Buy Down | 1.00% | ||
Long term debt, revolving loan | $ 10,000,000 | ||
Revolving loan | Construction Loans [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 7,000,000 | ||
Line of Credit Facility, Interest Rate at Period End | 2.05% | ||
Revolving loan | Bank of North Dakota and Cornerstone Bank | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 5,410,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Assets - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | $ 270,125 | $ 42,005 |
Assets | 270,125 | |
Assets | 42,005 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 270,125 | 42,005 |
Assets | 270,125 | |
Assets | 42,005 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Assets | 0 | |
Assets | 0 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Assets | $ 0 | |
Assets | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Oct. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Right of use assets | $ 983,528 | $ 1,008,677 | ||
Discount rate (percentage) | 3.00% | |||
Weighted average remaining lease term | 3 years | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease terms | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease terms | 4 years | |||
Accounting Standards Update 2016-02 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Right of use assets | $ 1,418,000 | |||
Transportation Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Rent expense for operating leases | $ 167,000 | $ 205,000 |
Leases - Schedule of Capital Le
Leases - Schedule of Capital Leased Assets (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Transportation Equipment | |||
Capital Leased Assets [Line Items] | |||
Rent expense for operating leases | $ 167,000 | $ 205,000 | |
Equipment | |||
Capital Leased Assets [Line Items] | |||
Equipment | 493,414 | $ 493,414 | |
Less accumulated amortization | (178,806) | (172,944) | |
Net equipment under capital lease | $ 314,608 | $ 320,470 |
- Schedule of Future Minimum Pa
- Schedule of Future Minimum Payments (Details) | Dec. 31, 2020USD ($) |
Operating Leases | |
2020 | $ 372,997 |
2021 | 349,454 |
2022 | 239,075 |
2023 | 22,002 |
2024 | 0 |
Thereafter | 0 |
Total minimum lease commitments | 983,528 |
Financing Leases | |
2020 | 4,517 |
2021 | 4,551 |
2022 | 4,585 |
2023 | 4,141 |
2024 | 0 |
Thereafter | 0 |
Total minimum lease commitments | 17,794 |
Less amount representing interest | 0 |
Present value of minimum lease commitments included in notes payable on the balance sheet | $ 17,794 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, bu in Millions | Nov. 01, 2016USD ($)$ / sharesshares | Oct. 11, 2016 | Dec. 31, 2020USD ($)galbu | Sep. 30, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Accrued payments | $ 343,801 | $ 650,833 | ||
Commitment to fund research (up to) | 950,000 | |||
Amount paid | 949,631 | |||
CO2 liquefaction facility [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
capital project, commitment | 11,845,000 | |||
capital project, balance paid to date | 1,776,750 | |||
Distillation Unit [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
capital project, commitment | 2,659,500 | |||
capital project, balance paid to date | $ 1,994,625 | |||
Capital Equipment Project, Project Size | gal | 25,000,000 | |||
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% | |||
Proceeds from Sale of Real Estate | $ 28,315 | |||
Bushels of corn | Fixed price contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount, volume | bu | 3.9 | |||
Commitments | $ 15,200,000 | |||
Raw water | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Contract term | 10 years | |||
Minimum purchase, volume | gal | 160,000,000 | |||
Minimum estimated liability | $ 424,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |||
Accounts receivable | $ 1,574,471 | $ 1,777,576 | |
Accounts payable | 322,701 | 188,457 | |
Accrued payments | 343,801 | $ 650,833 | |
Revenues | 25,123,933 | $ 24,561,170 | |
Cost of goods sold | 381,644 | 602,869 | |
General and administrative | 30,301 | 41,304 | |
Other income | 2,410 | 0 | |
Inventory Purchases | $ 2,387,648 | $ 2,671,939 |
Member's Equity - Schedule of C
Member's Equity - Schedule of Changes in Member's Equity (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 60,580,852 | $ 58,290,921 | $ 56,086,357 | $ 59,322,351 | $ 60,574,264 |
Distribution | 0 | ||||
Net income (loss) | 2,265,694 | 2,289,931 | 2,204,564 | (3,235,994) | (1,251,913) |
Ending balance | 62,846,546 | 60,580,852 | 58,290,921 | 56,086,357 | 59,322,351 |
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 | 21,620,256 | 19,330,325 | 17,125,761 | 20,361,755 | 21,613,668 |
Distribution | 0 | ||||
Net income (loss) | 2,265,694 | 2,289,931 | 2,204,564 | (3,235,994) | (1,251,913) |
Ending balance | 23,885,950 | 21,620,256 | 19,330,325 | 17,125,761 | 20,361,755 |
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) |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Feb. 01, 2021 | Dec. 31, 2020 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Long term debt, revolving loan | $ 10,000,000 | |
Construction Loan | $ 28,000,000 | |
construction loan, interest rate | 3.00% | |
PPP Loan, CARES Act | ||
Subsequent Event [Line Items] | ||
PPP loan, fixed interest rate (as a percent) | 1.00% |
Uncategorized Items - rte-20201
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,121,853 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,131,720 |