Cover Page Document
Cover Page Document - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Dec. 16, 2022 | |
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 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Document Annual Report | true | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 40,148,160 | |
Entity Public Float | $ 34,969,920 | |
Entity File Number | 000-52033 | |
Entity Incorporation, State or Country Code | ND | |
Entity Tax Identification Number | 76-0742311 | |
Entity Address, Address Line Two | P.O. Box 11 | |
Entity Address, Address Line One | 3682 Highway 8 South | |
Entity Address, State or Province | ND | |
Entity Address, City or Town | Richardton | |
Entity Address, Postal Zip Code | 58652 | |
Per unit price of membership units issued in real estate transaction | $ 1 | |
Entity Interactive Data Current | Yes | |
Local Phone Number | 974-3308 | |
City Area Code | 701 | |
Document Transition Report | false | |
Entity Shell Company | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Auditor Location | Denver, Colorado | |
Auditor Name | Eide Bailly LLP | |
Auditor Firm ID | 286 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash and equivalents | $ 6,366,990 | $ 508,521 |
Restricted cash | 4,785,025 | 4,706,723 |
Accounts receivable, primarily related party | 4,879,011 | 1,468,521 |
Derivative, Fair Value, Net | 0 | 0 |
Inventory | 12,544,033 | 11,546,842 |
Prepaid expenses | 512,770 | 466,036 |
Total current assets | 29,087,829 | 18,696,643 |
Property, Plant and Equipment | ||
Land | 1,333,681 | 1,333,681 |
Land improvements | 17,662,538 | 4,465,311 |
Buildings | 14,930,003 | 9,581,778 |
Plant and equipment | 121,465,514 | 91,666,322 |
Construction in progress | 1,191,290 | 29,154,711 |
Gross property, plant and equipment | 156,583,026 | 136,201,803 |
Less accumulated depreciation | 77,104,977 | 72,777,271 |
Net property, plant and equipment | 79,478,049 | 63,424,532 |
Operating Lease, Right-of-Use Asset | 405,631 | 762,847 |
Other Assets | ||
Investment in RPMG | 605,000 | 605,000 |
Patronage equity | 5,399,515 | 4,924,123 |
Deposits | 40,000 | 40,000 |
Total other assets | 6,450,146 | 6,331,970 |
Total Assets | 115,016,024 | 88,453,145 |
Current Liabilities | ||
Accounts payable | 6,885,442 | 10,099,876 |
Accrued expenses | 1,531,123 | 1,435,117 |
Derivative Liability, Fair Value, Gross Asset | 1,162,273 | 0 |
Accrued loss on firm purchase commitments (see note 4) | 9,000 | 184,000 |
Customer Advances and Deposits | 10,636 | 11,008 |
Current maturities of long-term debt | 18,751,634 | 723,775 |
Operating Lease, Liability, Current | 271,968 | 372,986 |
Total current liabilities | 28,622,076 | 14,170,370 |
Long-Term Liabilities | ||
Notes Payable, Noncurrent | 419,150 | 3,898,239 |
Operating Lease, Liability, Noncurrent | 133,663 | 389,861 |
Liabilities, Noncurrent | $ 552,813 | $ 4,288,100 |
Members' Equity [Abstract] | ||
Membership units issued (in units) | 40,148,160 | 40,148,160 |
Members’ Equity (41,466,340 and 40,148,160 Class A Membership Units issued and outstanding on September 30, 2017 and 2016, respectively) | $ 85,841,135 | $ 69,994,675 |
Total Liabilities and Members’ Equity | 115,016,024 | 88,453,145 |
Bank Overdrafts | $ 0 | $ 1,343,608 |
Balance Sheets Parenthetical
Balance Sheets Parenthetical - shares | Sep. 30, 2022 | Sep. 30, 2021 |
Members’ Equity, Units issued and outstanding | 40,148,160 | 40,148,160 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues, primarily related party | $ 217,135,121 | $ 119,084,611 | $ 94,175,793 |
Cost of Goods Sold | |||
Cost of goods sold | 189,606,091 | 103,667,724 | 89,676,395 |
Lower of cost or market inventory adjustment | 337,080 | 263,777 | 241,294 |
Loss on firm purchase commitments | 885,000 | 184,000 | 217,000 |
Total Cost of Goods Sold | 190,828,171 | 104,115,501 | 90,134,689 |
Gross Profit | 26,306,950 | 14,969,110 | 4,041,104 |
General and Administrative Expenses | 3,801,583 | 3,239,245 | 4,329,824 |
Operating Income | 22,505,367 | 11,729,865 | (288,720) |
Interest Income, Other | 31,524 | 55,691 | 117,143 |
Other Income (Expense) | |||
Other income | 6,983,063 | 890,818 | 187,626 |
Interest expense | (23,274) | (50,695) | (9,461) |
Total other income (expense), net | 6,991,313 | 895,814 | 295,308 |
Net Income | $ 29,496,680 | $ 12,625,679 | $ 6,588 |
Weighted Average Units Outstanding, Basic | 40,148,160 | 40,148,160 | 40,148,160 |
Weighted Average Units Outstanding, Diluted | 40,148,160 | 40,148,160 | 40,148,160 |
Net Income (Loss) Per Unit, Basic | $ 0.73 | $ 0.31 | $ 0 |
Net Income (Loss) Per Unit, Diluted | $ 0.73 | $ 0.31 | $ 0 |
Statements of Changes in Member
Statements of Changes in Members' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | |
Members' Equity at Sep. 30, 2019 | $ (60,574,264) | $ (39,044,595) | $ (75,541) | $ (21,613,668) | $ (159,540) | |
Balance, Units at Sep. 30, 2019 | 40,148,160 | [1] | 140,000 | |||
Increase (Decrease) in Members' Equity [Roll Forward] | ||||||
Net Income | 6,588 | 6,588 | ||||
Balance, Units at Sep. 30, 2020 | 40,148,160 | 140,000 | ||||
Members' Equity at Sep. 30, 2020 | (60,580,852) | $ (39,044,595) | (75,541) | (21,620,256) | $ (159,540) | |
Increase (Decrease) in Members' Equity [Roll Forward] | ||||||
Net Income | 12,625,679 | 12,625,679 | ||||
Distribution | (3,211,856) | (3,211,856) | ||||
Balance, Units at Sep. 30, 2021 | 40,148,160 | 140,000 | ||||
Members' Equity at Sep. 30, 2021 | (69,994,675) | $ (39,044,595) | (75,541) | (31,034,079) | $ (159,540) | |
Increase (Decrease) in Members' Equity [Roll Forward] | ||||||
Net Income | 29,496,680 | 29,496,680 | ||||
Distribution | (13,650,220) | (13,650,220) | ||||
Balance, Units at Sep. 30, 2022 | 40,148,160 | 140,000 | ||||
Members' Equity at Sep. 30, 2022 | $ (85,841,135) | $ (39,044,595) | $ (75,541) | $ (46,880,539) | $ (159,540) | |
[1]Amounts shown represent member units outstanding. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | |||
Net Income | $ 29,496,680 | $ 12,625,679 | $ 6,588 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 4,327,706 | 4,921,531 | 4,799,667 |
Loss on disposal of fixed assets | 0 | 0 | (26,213) |
Change in fair value of derivative instruments | 1,162,273 | 42,005 | (50,880) |
Accrued purchase commitment losses | (175,000) | 54,000 | 62,000 |
Lower of cost or market inventory adjustment | 337,080 | 263,777 | 241,294 |
Inventory, Firm Purchase Commitment, Loss | (885,000) | (184,000) | (217,000) |
Noncash patronage equity | (475,392) | (383,160) | (421,812) |
Debt Instrument, Decrease, Forgiveness | (2,650,773) | (873,400) | 0 |
Change in operating assets and liabilities: | |||
Accounts receivable, net, primarily related party | (3,410,490) | 494,716 | 1,947,148 |
Inventory | (2,219,271) | (1,856,747) | (3,633,340) |
Prepaid expenses | (46,734) | (94,753) | (261,783) |
Increase (Decrease) in Customer Deposits | (372) | 11,008 | 0 |
Accounts payable and accrued expenses | (3,171,629) | 4,333,180 | 413,280 |
Net cash provided by (used in) operating activities | 24,059,078 | 19,721,836 | 3,292,949 |
Cash Flows from Investing Activities | |||
Proceeds from disposal of fixed assets | 0 | 0 | 75,827 |
Capital expenditures | (20,328,018) | (23,053,910) | (8,947,268) |
Net cash (used in) investing activities | (20,328,018) | (23,053,910) | (8,871,441) |
Cash Flows from Financing Activities | |||
Increase (Decrease) in Book Overdrafts | (1,343,608) | 1,343,608 | 0 |
Dividends paid | (13,650,220) | (3,211,856) | 0 |
Proceeds from Notes Payable | 18,000,000 | 0 | 6,285,638 |
Debt and capital lease repayments | (800,461) | (696,923) | (116,726) |
Net cash (used in) financing activities | 2,205,711 | (2,565,171) | 6,168,912 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 5,936,771 | (5,897,245) | 590,420 |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 5,215,244 | 11,112,489 | 10,522,069 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 11,152,015 | 5,215,244 | 11,112,489 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents | 6,366,990 | 508,521 | 9,304,638 |
Restricted Cash | 4,785,025 | 4,706,723 | 1,807,851 |
Total Cash, Cash Equivalents and Restricted Cash | 11,152,015 | 5,215,244 | 11,112,489 |
Supplemental Disclosure of Cash Flow Information | |||
Interest paid | 79,149 | 50,695 | 9,461 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 0 | 0 | 23,173 |
Noncash Investing and Financing Activities | |||
Units issued in exchange for property | 0 | 81,729 | 168,300 |
Capital Expenditures in Accounts Payable | 53,201 | 964,494 | 894,307 |
Interest Costs Capitalized | $ 411,875 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
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”). The Plant commenced production on January 1, 2007. Fuel grade ethanol, distillers grains and corn oil are the Company's primary products. All products are marketed and sold primarily within the continental United States. 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. Cash and Equivalents The Company considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and equivalents approximates fair value. Balances in excess of federally insured limits are not covered by FDIC insurance. Restricted cash is cash deposited in our margin account with our commodities broker related to our risk management positions. Investment in RPMG RPMG is a subsidiary of Renewable Products Marketing Group, LLC ("RPMG, LLC"). We own approximately 5.6% of RPMG, LLC which allows us to realize favorable marketing fees for our products and allows us to share in the profits generated by RPMG, LLC. Our ownership interest in RPMG, LLC also entitles us to a seat on its board of directors which is filled by Gerald Bachmeier, our Chief Executive Officer. The Company accounts for the investment in RPMG at cost minus impairment. Accounts Receivable and Concentration of Credit Risk The Company generates accounts receivable from sales of ethanol, distillers grains and corn oil. The Company has entered into agreements with RPMG, Inc. (“RPMG”) for the marketing and distribution of the Company's ethanol, corn oil and dried distiller's grains. Under the terms of the marketing agreement, RPMG bears the risk of loss of nonpayment by their customers. The Company markets its modified distiller's grains internally. For sales of modified distiller's grains and industrial ethanol, credit is extended based on evaluation of a customer's financial condition and collateral is not required. Accounts receivable are due 30 days from the invoice date. Accounts outstanding longer than the contractual payment terms are considered past due. Internal follow up procedures are followed accordingly. Interest is charged on past due accounts. All receivables are stated at amounts due from customers net of any allowance for doubtful accounts. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's perceived current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. The Company has an allowance for doubtful accounts of $78,503 and $386,850 at September 30, 2022 and 2021, respectively. Inventory Corn is the primary raw material and, along with other raw materials and supplies, is stated at the lower of cost or net realizable value on a first-in, first-out (FIFO) basis. Work in process and finished goods, which consists of ethanol, distillers grains and corn oil produced, is stated at the lower of average cost or net realizable value. Spare parts inventory is valued at lower of cost or net realizable value on a FIFO basis. Patronage Equity The Company receives, from certain vendors organized as cooperatives, patronage dividends, which are based on several criteria, including the vendor's overall profitability and the Company's purchases from the vendor. Patronage equity typically represents the Company's share of the vendor's undistributed current earnings which will be paid in either cash or equity interests to the Company at a future date. Investments in cooperatives are stated at cost, plus unredeemed patronage refunds received in the form of capital stock and are included in Other Assets on the Company's balance sheet. Derivative Instruments The Company enters into derivative transactions to hedge its exposure to commodity and interest rate price fluctuations. The Company is required to record these derivatives in the balance sheet at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives related to corn are recorded in costs of goods sold within the statements of operations. Changes in the fair value of undesignated derivatives related to ethanol are recorded in revenue within the statements of operations. Additionally the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales.” Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Certain corn, ethanol, and distillers grain contracts that meet the requirement of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements, and therefore, are not marked to market in our financial statements. Firm Purchase Commitments The Company typically enters into fixed price contracts to purchase corn to ensure an adequate supply of corn to operate its plant. The Company will generally seek to use exchange traded futures, options or swaps as an offsetting economic hedge position. The Company closely monitors the number of bushels hedged using this strategy to avoid an unacceptable level of margin exposure. Contract prices are analyzed by management at each period end and, if necessary, valued at the lower of cost or net realizable value in the balance sheets. Revenue Recognition The Company generally sells ethanol and related products pursuant to marketing agreements. 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. Revenues are shown net of any fees incurred under the terms of the Company's agreements for the marketing and sale of ethanol and related products. Revenues are also shown net of any discounts given for sales of modified distillers grains. Long-lived Assets Property, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight line method. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized. For the year ended September 30, 2022 the Company capitalized $38.5 million in assets related to the CCS Project and $9.8 million in assets related to the Industrial Alcohol Project. The present values of finance lease obligations are classified as a liability and the related assets are included in property, plant and equipment. Amortization of equipment under finance leases is included in depreciation expense. Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 15 30 Buildings 10 40 Plant and equipment 7 20 Railroad 10 30 Depreciation expense included in cost of goods sold is $4,027,744 for the year ended September 30, 2022, $4,832,462 for the year ended September 30, 2021 and $4,722,077 for the year ended September 30, 2020. Depreciation expense included in general and administrative expenses is $299,962 for the year ended September 30, 2022, $89,069 for the year ended September 30, 2021, and $77,590 for the year ended September 30, 2020. Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. Fair Value Measurements The Company has adopted guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company has adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended September 30, 2022 and 2021 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values because of their short-term nature. The fair values of notes payable approximates the carrying value based on estimated discounted future cash flows using the current rates at which similar loans would be made. Income Taxes The Company is treated as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Differences between financial statement basis of assets and tax basis of assets is primarily related to depreciation, derivatives, inventory, compensation and capitalization and amortization of organization and start-up costs for tax purposes, whereas these costs are expensed for financial statement purposes. The Company has evaluated whether it has any significant tax uncertainties that would require recognition or disclosure. Primarily due to its partnership tax status, the Company does not have any significant tax uncertainties that would require recognition or disclosure. The Company's policy is to recognize interest expense and penalties related to uncertain tax positions as incurred. Net Income Per Unit Net income (loss) 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, which had no impact on adoption. Environmental Liabilities |
Nature of Operations | 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”). The Plant commenced production on January 1, 2007. Fuel grade ethanol, distillers grains and corn oil are the Company's primary products. All products are marketed and sold primarily within the continental United States. |
Concentrations
Concentrations | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | CONCENTRATIONS Coal and Natural Gas In previous years coal was an important input to our manufacturing process. During the second quarter of our 2015 fiscal year we converted the energy source for our ethanol plant to natural gas. As a result, we do not anticipate using coal to fire the ethanol plant in the future and changes in the price or availability of coal will not impact our operations. However, we maintain the equipment necessary to operate the ethanol plant using coal as the fuel source which management believes could benefit us in the future, especially if natural gas prices increase or natural gas is not available at the ethanol plant. The Company signed a sales agreement with Rainbow Gas Company to supply natural gas to the plant through October 2023. The Company's intentions are to run the plant on natural gas and renew the supply agreement with its current natural gas supplier. Sales |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2022 | |
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 specified volumes of co-products over a contractual period of less than 12 months. In such instances, 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 when 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 twelve months ended September 30, 2022, 2021, and 2020. Revenues For the twelve months ended September 30, 2022 (audited) For the twelve months ended September 30, 2021 (audited) For the twelve months ended September 30, 2020 (audited) Ethanol, E85 and Industrial Ethanol $ 167,657,194 $ 91,624,027 $ 71,785,439 Distillers Grains 35,713,434 21,221,826 18,209,005 Syrup 1,477,622 1,009,857 353,583 Corn Oil 12,114,628 5,070,067 3,631,755 Other 172,243 158,834 196,011 Total revenue from contracts with customers $ 217,135,121 $ 119,084,611 $ 94,175,793 Shipping and Handling Costs We account for shipping and handling activities related to contracts with customers as costs to fulfill our promises 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. Customer Deposits Customer deposits are contract liabilities for payments in excess of revenue recognized. Customer deposits are recognized when modified distillers grains customers make prepayments on their contracts. The beginning and ending balances for accounts receivable and customer deposits were as follows for the twelve months ended September 30, 2022, 2021, and 2020. For the twelve months ended September 30, 2022 (audited) For the twelve months ended September 30, 2021 (audited) For the twelve months ended September 30, 2020 (audited) Accounts receivable $ 4,879,011 $ 1,468,521 $ 1,963,236 Customer deposits $ 10,636 $ 11,008 $ — |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 30, 2022 | |
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 and soybean oil derivative fair market value gains or losses are included in the results of operations and are classified as revenue and corn derivative and natural gas derivative changes in fair market value are included in cost of goods sold. As of: September 30, 2022 September 30, 2021 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 1,080 5,400,000 bushels $ (1,144,000) — — bushels $ — Soybean oil options 48 28,800 gal (18,273) — — gal — Total fair value $ (1,162,273) $ — Amounts are recorded separately on the balance sheet - negative numbers represent liabilities The following tables provide details regarding the Company's derivative financial instruments at September 30, 2022 and September 30, 2021: Derivatives not designated as hedging instruments: Balance Sheet - as of September 30, 2022 Asset Liability Commodity derivative instruments, at fair value $ — $ 1,162,273 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 1,162,273 Balance Sheet - as of September 30, 2021 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ — Statement of Operations Income/(expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the year ended September 30, 2022 Amount of gain (loss) recognized in income during the year ended September 30, 2021 Amount of gain (loss) recognized in income during the year ended September 30, 2020 Corn derivative instruments Cost of Goods Sold $ 1,615,619 $ 1,367,491 $ (455,197) Ethanol derivative instruments Revenue 454,365 1,487,966 382,757 Natural gas derivative instruments Cost of Goods Sold (107,450) 1,410 (31,860) Total $ 1,962,534 $ 2,856,867 $ (104,300) |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is valued at lower of cost or net realizable value. Inventory values as of September 30, 2022 and September 30, 2021 were as follows: As of September 30, 2022 September 30, 2021 Raw materials, including corn, chemicals and supplies $ 6,887,201 $ 3,978,299 Work in process 1,340,059 1,321,862 Finished goods, including ethanol and distillers grains 2,702,129 4,622,007 Spare parts 1,614,644 1,624,674 Total inventory $ 12,544,033 $ 11,546,842 Lower of cost or net realizable value adjustments for the years ended September 30, 2022, and 2021 and 2019 were as follows: For the year ended September 30, 2022 For the year ended September 30, 2021 For the year ended September 30, 2020 Loss on firm purchase commitments $ 885,000 $ 184,000 $ 217,000 Loss on lower of cost or net realizable value adjustment for inventory on hand 337,080 263,777 241,294 Total loss on lower of cost or market adjustments $ 1,222,080 $ 447,777 $ 458,294 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 September 30, 2022 and 2021, 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 an estimated loss on firm purchase commitments of $885,000 and $184,000 for the fiscal years ended September 30, 2022 and 2021, respectively. The loss is recorded in “Loss on firm purchase commitments” on the statements of operations. The amount of the 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, this loss may or may not be recovered, and further losses on the outstanding purchase commitments could be recorded in future periods. The Company recorded inventory valuation impairments of $337,080 and $263,777 for the fiscal years ended September 30, 2022 and 2021, respectively. The impairments, as applicable, were attributable primarily to decreases in market prices of corn and ethanol. The inventory valuation impairment was recorded in “Lower of cost or net realizable value adjustment” on the statements of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table provides information on those assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2022 and September 30, 2021, respectively. Fair Value Measurement Using Carrying Amount as of September 30, 2022 Fair Value as of September 30, 2022 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 1,162,273 $ 1,162,273 $ 1,162,273 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2021 Fair Value as of September 30, 2021 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ — $ — $ — $ — $ — |
Leases
Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 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 twelve months ended September 30, 2022, the Company's estimated discount rate was 4.75%. 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 September 30, 2022, the weighted average remaining lease term is 2 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 $948,000 for the year ended September 30, 2022, $750,000 for the year ended September 30, 2021,and $701,000 for the year ended September 30, 2020. Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of September 30, 2022 September 30, 2021 Equipment $ 493,414 $ 493,414 Less accumulated amortization (219,833) (196,389) Net equipment under finance lease $ 273,581 $ 297,025 At September 30, 2022, 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 years ending September 30: Operating Leases Financing Leases 2023 $ 271,968 $ 4,576 2024 58,021 4,611 2025 35,719 680 2026 36,806 — 2027 3,117 — Total minimum lease commitments $ 405,631 $ 9,867 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 9,867 |
Members' Equity
Members' Equity | 12 Months Ended |
Sep. 30, 2022 | |
Members' Equity [Abstract] | |
Members' Equity | MEMBERS' EQUITYThe Company has one class of membership units outstanding (Class A) with each unit representing a pro rata ownership interest in the Company's capital, profits, losses, and distributions. As of September 30, 2022, 2021, and 2020 there were 40,148,160 units issued and outstanding, respectively. The Company held a total of 140,000 treasury units as of September 30, 2022, 2021, and 2020, respectively. Total units authorized are 40,288,160 as of September 30, 2022, 2021, and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Firm Purchase Commitments 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 September 30, 2022, the Company had various fixed price contracts for the purchase of approximately 2.2 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $14.2 million related to the 2.2 million bushels under contract. Water To meet the plant's water requirements, we entered into a ten Profit and Cost Sharing Agreement The Company 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 of the Company 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 Profit and Cost Sharing Agreement provides that 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 prior to termination of this obligation in accordance with to the $10 million cap and the 10 year termination of this obligation. The Company paid Bismarck Land Company, LLC $679,428 during our 2022 fiscal year and has paid a total of $1,247,581 as of September 30, 2022. Carbon Capture and Storage Project On May 6, 2021, the Company entered into an agreement with Direct Automation for the DCS Computer System for the carbon capture and storage project. The price of the system including all equipment and installation is $800,992. The Company has paid $779,895 as of September 30, 2021 which is recorded as construction in progress. |
Defined Contribution Retirement
Defined Contribution Retirement Plan | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Defined Contribution Retirement Plan | DEFINED CONTRIBUTION RETIREMENT PLAN The Company established a 401k retirement plan for its employees effective January 1, 2011. The Company matches employee contributions to the plan up to 4% of employee's gross income. The Company contributed approximately $155,000, $130,000, and $134,000 to the 401k plan for the years ended September 30, 2022 and 2021, and 2020, respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED-PARTY TRANSACTIONSThe 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 our third party marketer, RPMG, Inc. (“RPMG”) whom we have an ownership interest in. Significant related party activity affecting the financial statements is as follows: September 30, 2022 September 30, 2021 Balance Sheet Accounts receivable $ 4,086,689 $ 1,309,673 Accounts Payable 60,412 788,050 Accrued Expenses 7,645 832,904 For the year ended September 30, 2022 For the year ended September 30, 2021 For the year ended September 30, 2020 Statement of Operations Revenues $ 202,902,678 $ 107,501,604 $ 83,637,691 Cost of goods sold 3,249,001 1,851,143 2,013,630 General and administrative — 169,910 166,991 Other income /expense — — 119,825 Inventory Purchases $ 40,383,126 $ 14,080,623 $ 21,095,195 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On October 28, 2022 the Company entered into a $25 million loan with Cornerstone to replace the First Construction and CCS Construction Loans. The maturity date of the Loan is January 31, 2032 . The fixed interest rate is 4.65%. See Note 6. |
Uncertainties Impacting the Eth
Uncertainties Impacting the Ethanol Industry and Our Future Operations | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [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 are lower than the statutory requirements in the RFS. In addition, on May 31, 2016, the EPA issued a proposed renewable volume obligation for 2017 of 14.8 billion gallons of conventional biofuels, still lower than the statutory requirement 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. On December 7, 2021, the EPA released a proposed rule regarding renewable volume obligations which was lower than the statutory amount for 2021 and proposes to reopen and reduce the renewable volume obligation for 2020. The Company anticipates that the results of operations during fiscal 2022 will 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 due to increased demand for grain from global and national markets, the minimal carryover from the 2021 crop year drought, and the |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summary quarter results are as follows: Year Ended September 30, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 60,827,197 $ 51,677,779 $ 55,720,460 $ 48,909,685 Gross profit (loss) 17,809,414 5,079,156 6,437,590 (3,019,210) Operating income (loss) 16,712,235 4,419,297 5,638,600 (4,264,765) Net income (loss) 19,371,546 4,439,004 9,921,072 (4,234,942) Net income (loss) per unit-basic and diluted 0.48 0.11 0.25 (0.11) Year Ended September 30, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 27,557,555 $ 34,264,089 $ 42,741,846 $ 14,521,121 Gross profit (loss) 3,653,352 6,125,603 10,370,203 (5,180,048) Operating income (loss) 2,243,816 5,215,440 9,516,024 (5,245,415) Net income (loss) 2,265,694 6,093,896 9,505,434 (5,239,345) Net income (loss) per unit-basic and diluted 0.06 0.15 0.24 (0.13) Year Ended September 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 26,340,913 $ 23,638,144 $ 22,670,742 $ 21,525,994 Gross profit (loss) (498,570) (2,369,704) 3,449,833 3,459,545 Operating income (loss) (1,298,075) (3,394,168) 2,177,135 2,226,388 Net income (loss) (1,251,913) (3,235,994) 2,204,564 2,289,931 Net income (loss) per unit-basic and diluted (0.03) (0.08) 0.05 0.06 The above quarterly financial data is unaudited, but in the opinion of management, all material adjustments necessary for a fair presentation of the selected data for these periods presented have been included. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates |
Cash and Equivalents | Cash and Equivalents The Company considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and equivalents approximates fair value. Balances in excess of federally insured limits are not covered by FDIC insurance. Restricted cash is cash deposited in our margin account with our commodities broker related to our risk management positions. |
Investment in RPMG | Investment in RPMG RPMG is a subsidiary of Renewable Products Marketing Group, LLC ("RPMG, LLC"). We own approximately 5.6% of RPMG, LLC which allows us to realize favorable marketing fees for our products and allows us to share in the profits generated by RPMG, LLC. Our ownership interest in RPMG, LLC also entitles us to a seat on its board of directors which is filled by Gerald Bachmeier, our Chief Executive Officer. The Company accounts for the investment in RPMG at cost minus impairment. |
Accounts Receivable and Concentration of Credit Risk | Accounts Receivable and Concentration of Credit Risk The Company generates accounts receivable from sales of ethanol, distillers grains and corn oil. The Company has entered into agreements with RPMG, Inc. (“RPMG”) for the marketing and distribution of the Company's ethanol, corn oil and dried distiller's grains. Under the terms of the marketing agreement, RPMG bears the risk of loss of nonpayment by their customers. The Company markets its modified distiller's grains internally. For sales of modified distiller's grains and industrial ethanol, credit is extended based on evaluation of a customer's financial condition and collateral is not required. Accounts receivable are due 30 days from the invoice date. Accounts outstanding longer than the contractual payment terms are considered past due. Internal follow up procedures are followed accordingly. Interest is charged on past due accounts. |
Inventory | Inventory Corn is the primary raw material and, along with other raw materials and supplies, is stated at the lower of cost or net realizable value on a first-in, first-out (FIFO) basis. Work in process and finished goods, which consists of ethanol, distillers grains and corn oil produced, is stated at the lower of average cost or net realizable value. Spare parts inventory is valued at lower of cost or net realizable value on a FIFO basis. |
Patronage Equity | Patronage Equity The Company receives, from certain vendors organized as cooperatives, patronage dividends, which are based on several criteria, including the vendor's overall profitability and the Company's purchases from the vendor. Patronage equity typically represents the Company's share of the vendor's undistributed current earnings which will be paid in either cash or equity interests to the Company at a future date. Investments in cooperatives are stated at cost, plus unredeemed patronage refunds received in the form of capital stock and are included in Other Assets on the Company's balance sheet. |
Derivative Instruments | Derivative Instruments The Company enters into derivative transactions to hedge its exposure to commodity and interest rate price fluctuations. The Company is required to record these derivatives in the balance sheet at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives related to corn are recorded in costs of goods sold within the statements of operations. Changes in the fair value of undesignated derivatives related to ethanol are recorded in revenue within the statements of operations. |
Firm Purchase Commitments | Firm Purchase CommitmentsThe Company typically enters into fixed price contracts to purchase corn to ensure an adequate supply of corn to operate its plant. The Company will generally seek to use exchange traded futures, options or swaps as an offsetting economic hedge position. The Company closely monitors the number of bushels hedged using this strategy to avoid an unacceptable level of margin exposure. Contract prices are analyzed by management at each period end and, if necessary, valued at the lower of cost or net realizable value in the balance sheets. |
Revenue Recognition | Revenue Recognition |
Long-Lived Assets | Long-lived Assets Property, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight line method. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized. For the year ended September 30, 2022 the Company capitalized $38.5 million in assets related to the CCS Project and $9.8 million in assets related to the Industrial Alcohol Project. The present values of finance lease obligations are classified as a liability and the related assets are included in property, plant and equipment. Amortization of equipment under finance leases is included in depreciation expense. Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 15 30 Buildings 10 40 Plant and equipment 7 20 Railroad 10 30 Depreciation expense included in cost of goods sold is $4,027,744 for the year ended September 30, 2022, $4,832,462 for the year ended September 30, 2021 and $4,722,077 for the year ended September 30, 2020. Depreciation expense included in general and administrative expenses is $299,962 for the year ended September 30, 2022, $89,069 for the year ended September 30, 2021, and $77,590 for the year ended September 30, 2020. Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. |
Fair Value Measurements | Fair Value Measurements The Company has adopted guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company has adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended September 30, 2022 and 2021 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values because of their short-term nature. The fair values of notes payable approximates the carrying value based on estimated discounted future cash flows using the current rates at which similar loans would be made. |
Income Taxes | Income Taxes The Company is treated as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Differences between financial statement basis of assets and tax basis of assets is primarily related to depreciation, derivatives, inventory, compensation and capitalization and amortization of organization and start-up costs for tax purposes, whereas these costs are expensed for financial statement purposes. |
Net Income (Loss) Per Unit | Net Income Per UnitNet income (loss) 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, which had no impact on adoption. |
Environmental Liabilities | Environmental LiabilitiesThe Company's operations are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its location. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material, environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities, if any, are recorded when the liability is probable and the costs can reasonably be estimated. The Company is not aware of any environmental liabilities identified as of September 30, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Property, Plant, and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Minimum Years Maximum Years Land improvements 15 30 Buildings 10 40 Plant and equipment 7 20 Railroad 10 30 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major source for the twelve months ended September 30, 2022, 2021, and 2020. Revenues For the twelve months ended September 30, 2022 (audited) For the twelve months ended September 30, 2021 (audited) For the twelve months ended September 30, 2020 (audited) Ethanol, E85 and Industrial Ethanol $ 167,657,194 $ 91,624,027 $ 71,785,439 Distillers Grains 35,713,434 21,221,826 18,209,005 Syrup 1,477,622 1,009,857 353,583 Corn Oil 12,114,628 5,070,067 3,631,755 Other 172,243 158,834 196,011 Total revenue from contracts with customers $ 217,135,121 $ 119,084,611 $ 94,175,793 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments Commodity Contracts | As of: September 30, 2022 September 30, 2021 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn options 1,080 5,400,000 bushels $ (1,144,000) — — bushels $ — Soybean oil options 48 28,800 gal (18,273) — — gal — Total fair value $ (1,162,273) $ — Amounts are recorded separately on the balance sheet - negative numbers represent liabilities |
Derivatives Not Designated As Hedging Instruments, Balance Sheet | Derivatives not designated as hedging instruments: Balance Sheet - as of September 30, 2022 Asset Liability Commodity derivative instruments, at fair value $ — $ 1,162,273 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 1,162,273 Balance Sheet - as of September 30, 2021 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ — |
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 year ended September 30, 2022 Amount of gain (loss) recognized in income during the year ended September 30, 2021 Amount of gain (loss) recognized in income during the year ended September 30, 2020 Corn derivative instruments Cost of Goods Sold $ 1,615,619 $ 1,367,491 $ (455,197) Ethanol derivative instruments Revenue 454,365 1,487,966 382,757 Natural gas derivative instruments Cost of Goods Sold (107,450) 1,410 (31,860) Total $ 1,962,534 $ 2,856,867 $ (104,300) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is valued at lower of cost or net realizable value. Inventory values as of September 30, 2022 and September 30, 2021 were as follows: As of September 30, 2022 September 30, 2021 Raw materials, including corn, chemicals and supplies $ 6,887,201 $ 3,978,299 Work in process 1,340,059 1,321,862 Finished goods, including ethanol and distillers grains 2,702,129 4,622,007 Spare parts 1,614,644 1,624,674 Total inventory $ 12,544,033 $ 11,546,842 |
Long-term Purchase Commitment | Lower of cost or net realizable value adjustments for the years ended September 30, 2022, and 2021 and 2019 were as follows: For the year ended September 30, 2022 For the year ended September 30, 2021 For the year ended September 30, 2020 Loss on firm purchase commitments $ 885,000 $ 184,000 $ 217,000 Loss on lower of cost or net realizable value adjustment for inventory on hand 337,080 263,777 241,294 Total loss on lower of cost or market adjustments $ 1,222,080 $ 447,777 $ 458,294 |
Bank Financing (Tables)
Bank Financing (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Schedule of debt maturities for the twelve months ended September 30 Totals 2023 $ 18,747,058 2024 413,859 2025 — 2026 — 2027 — Total $ 19,160,917 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information on those assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2022 and September 30, 2021, respectively. Fair Value Measurement Using Carrying Amount as of September 30, 2022 Fair Value as of September 30, 2022 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 1,162,273 $ 1,162,273 $ 1,162,273 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2021 Fair Value as of September 30, 2021 Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ — $ — $ — $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Equipment under financing leases consists of office equipment and plant equipment. Equipment under financing leases is as follows at: As of September 30, 2022 September 30, 2021 Equipment $ 493,414 $ 493,414 Less accumulated amortization (219,833) (196,389) Net equipment under finance lease $ 273,581 $ 297,025 |
Schedule of Future Minimum Payments for Capital and Operating Leases | At September 30, 2022, 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 years ending September 30: Operating Leases Financing Leases 2023 $ 271,968 $ 4,576 2024 58,021 4,611 2025 35,719 680 2026 36,806 — 2027 3,117 — Total minimum lease commitments $ 405,631 $ 9,867 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 9,867 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Significant related party activity affecting the financial statements is as follows: September 30, 2022 September 30, 2021 Balance Sheet Accounts receivable $ 4,086,689 $ 1,309,673 Accounts Payable 60,412 788,050 Accrued Expenses 7,645 832,904 For the year ended September 30, 2022 For the year ended September 30, 2021 For the year ended September 30, 2020 Statement of Operations Revenues $ 202,902,678 $ 107,501,604 $ 83,637,691 Cost of goods sold 3,249,001 1,851,143 2,013,630 General and administrative — 169,910 166,991 Other income /expense — — 119,825 Inventory Purchases $ 40,383,126 $ 14,080,623 $ 21,095,195 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summary quarter results are as follows: Year Ended September 30, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 60,827,197 $ 51,677,779 $ 55,720,460 $ 48,909,685 Gross profit (loss) 17,809,414 5,079,156 6,437,590 (3,019,210) Operating income (loss) 16,712,235 4,419,297 5,638,600 (4,264,765) Net income (loss) 19,371,546 4,439,004 9,921,072 (4,234,942) Net income (loss) per unit-basic and diluted 0.48 0.11 0.25 (0.11) Year Ended September 30, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 27,557,555 $ 34,264,089 $ 42,741,846 $ 14,521,121 Gross profit (loss) 3,653,352 6,125,603 10,370,203 (5,180,048) Operating income (loss) 2,243,816 5,215,440 9,516,024 (5,245,415) Net income (loss) 2,265,694 6,093,896 9,505,434 (5,239,345) Net income (loss) per unit-basic and diluted 0.06 0.15 0.24 (0.13) Year Ended September 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 26,340,913 $ 23,638,144 $ 22,670,742 $ 21,525,994 Gross profit (loss) (498,570) (2,369,704) 3,449,833 3,459,545 Operating income (loss) (1,298,075) (3,394,168) 2,177,135 2,226,388 Net income (loss) (1,251,913) (3,235,994) 2,204,564 2,289,931 Net income (loss) per unit-basic and diluted (0.03) (0.08) 0.05 0.06 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Nature of Business (Details) gal in Millions | 12 Months Ended |
Sep. 30, 2022 gal | |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual Production Capacity | 50 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Investment in RPMG (Details) | Sep. 30, 2022 |
RPMG LLC [Member] | |
Debt and Equity Securities, FV-NI [Line Items] | |
Investment ownership percentage | 5.60% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Accounts Receivable (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Accounting Policies [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 78,503 | $ 386,850 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Cost of goods sold, depreciation | $ 4,027,744 | $ 4,832,462 | $ 4,722,077 |
General and administrative expense, depreciation | $ 299,962 | $ 89,069 | $ 77,590 |
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 15 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 30 years | ||
Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 10 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 40 years | ||
Plant and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 7 years | ||
Plant and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 20 years | ||
Railroad [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 10 years | ||
Railroad [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 30 years |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 100% | ||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 5,300% | 85% | |
Sales Revenue, Product Line [Member] | Ethanol [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 90% | 93% | 93% |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 217,135,121 | $ 119,084,611 | $ 94,175,793 |
Accounts receivable, primarily related party | 4,879,011 | 1,468,521 | 1,963,236 |
Customer Deposits, Current | 10,636 | 11,008 | 0 |
Ethanol and E85 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 167,657,194 | 91,624,027 | 71,785,439 |
Distillers Grains | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 35,713,434 | 21,221,826 | 18,209,005 |
Syrup | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 1,477,622 | 1,009,857 | 353,583 |
Corn Oil | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 12,114,628 | 5,070,067 | 3,631,755 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 172,243 | $ 158,834 | $ 196,011 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Contracts (Details) | 12 Months Ended | |
Sep. 30, 2022 USD ($) bu gal | Sep. 30, 2021 USD ($) gal bu | |
Derivative [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,162,273 | $ 0 |
Corn [Member] | Not Designated as Hedging Instrument [Member] | Commodity Option [Member] | ||
Derivative [Line Items] | ||
Number of Contracts | 1,080 | 0 |
Notional Amount | bu | 5,400,000 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ (1,144,000) | $ 0 |
Soybean Oil [Member] | Not Designated as Hedging Instrument [Member] | Commodity Option [Member] | ||
Derivative [Line Items] | ||
Number of Contracts | 48 | 0 |
Notional Amount | gal | 28,800 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ (18,273) | $ 0 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - Commodity Contract [Member] - Not Designated as Hedging Instrument [Member] - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value | $ 0 | $ 0 |
Derivative Liability, Fair Value | 1,162,273 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $ 1,162,273 | $ 0 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 1,962,534 | $ 2,856,867 | $ (104,300) |
Corn [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1,615,619 | 1,367,491 | (455,197) |
Ethanol [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 454,365 | 1,487,966 | 382,757 |
Natural Gas [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (107,450) | $ 1,410 | $ (31,860) |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials, including corn, chemicals and supplies | $ 6,887,201 | $ 3,978,299 |
Work in process | 1,340,059 | 1,321,862 |
Finished goods, including ethanol and distillers grains | 2,702,129 | 4,622,007 |
Spare parts | 1,614,644 | 1,624,674 |
Inventory | $ 12,544,033 | $ 11,546,842 |
Inventory Total Loss on Lower o
Inventory Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Long-term Purchase Commitment [Line Items] | |||
Loss on firm purchase commitments | $ 885,000 | $ 184,000 | $ 217,000 |
Loss on lower of cost or market adjustment for inventory on hand | 337,080 | 263,777 | 241,294 |
Inventories [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Loss on firm purchase commitments | 885,000 | 184,000 | 217,000 |
Loss on lower of cost or market adjustment for inventory on hand | 337,080 | 263,777 | 241,294 |
Total loss on lower of cost or market adjustments | $ 1,222,080 | $ 447,777 | $ 458,294 |
Bank Financing (Details)
Bank Financing (Details) - USD ($) | Oct. 28, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Long-Term Debt | |||
Long-Term Debt, Maturity, Year One | $ 18,747,058 | ||
Long-Term Debt, Maturity, Year Two | 413,859 | ||
Long-Term Debt, Maturity, Year Three | 0 | ||
Long-Term Debt, Maturity, Year Four | 0 | ||
Long-Term Debt, Maturity, Year Five | 0 | ||
Long-term Debt | 19,160,917 | ||
Domestic Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Long-Term Debt | |||
Revolving loan facility | 10,000,000 | ||
Remaining borrowing capacity | $ 10,000,000 | ||
Variable interest rate | 4.75% | ||
Construction Loans [Member] | Revolving Credit Facility [Member] | |||
Long-Term Debt | |||
Revolving loan facility | $ 7,000,000 | ||
Remaining borrowing capacity | 7,000,000 | ||
Construction Loans [Member] | Revolving Credit Facility [Member] | Subsequent Event | |||
Long-Term Debt | |||
Revolving loan facility | $ 25,000,000 | ||
Variable interest rate | 4.65% | ||
Construction Loans [Member] | Revolving Credit Facility [Member] | Carbon Capture and Storage Project | |||
Long-Term Debt | |||
Revolving loan facility | 28 | ||
Remaining borrowing capacity | $ 10 | ||
Variable interest rate | 4.30% | ||
Paycheck Protection Program [Member] | Revolving Credit Facility [Member] | |||
Long-Term Debt | |||
Variable interest rate | 1% | ||
Amount drawn on loan facility | $ 873,400 | ||
Bank of North Dakota Ethanol Recovery Program [Member] | Revolving Credit Facility [Member] | |||
Long-Term Debt | |||
Revolving loan facility | $ 15,000,000 | ||
Variable interest rate | 1% | ||
Amount drawn on loan facility | $ 5,410,000 | ||
Line of Credit, Maximum Interest Rate | 3.75% | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 1.16 | ||
Bank of North Dakota Ethanol Recovery Program [Member] | Revolving Credit Facility [Member] | Principal Forgiveness | |||
Long-Term Debt | |||
Amount drawn on loan facility | $ 2,650,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Commodities Derivative instruments [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | $ 1,162,273 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 1,162,273 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | $ 0 | $ 0 |
Leases - Equipment Under Capita
Leases - Equipment Under Capital Lease (Details) | Sep. 30, 2022 USD ($) Rate | Sep. 30, 2021 USD ($) |
Capital Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 405,631 | $ 762,847 |
right to use operating lease, discounted rate | Rate | 4.75 | |
Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Equipment | $ 493,414 | 493,414 |
Less accumulated amortization | (219,833) | (196,389) |
Net equipment under finance lease | $ 273,581 | $ 297,025 |
Leases - Leases (Details)
Leases - Leases (Details) | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Rate | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Financing Leases | |||
right to use operating lease, discounted rate | Rate | 4.75 | ||
Transportation Equipment [Member] | |||
Operating and Capital Leased Assets [Line Items] | |||
Rent expense | $ 948,000 | $ 750,000 | $ 701,000 |
Operating Leases | |||
2021 | 271,968 | ||
2022 | 58,021 | ||
2023 | 35,719 | ||
2024 | 36,806 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 3,117 | ||
Total minimum lease commitments | 405,631 | ||
Financing Leases | |||
2021 | 4,576 | ||
2022 | 4,611 | ||
2023 | 680 | ||
2024 | 0 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 0 | ||
Total minimum lease commitments | 9,867 | ||
Less amount representing interest | 0 | ||
Present value of minimum lease commitments included in notes payable on the balance sheet | $ 9,867 |
Members' Equity (Details)
Members' Equity (Details) - shares | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Class of Stock [Line Items] | |||
Membership units issued (in units) | 40,148,160 | 40,148,160 | |
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Units issued (in units) | 40,148,160 | 40,148,160 | 40,148,160 |
Treasury units held (in units) | 140,000 | 140,000 | 140,000 |
Units authorized (in units) | 40,288,160 | 40,288,160 | 40,288,160 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, bu in Millions | 12 Months Ended | |||
Nov. 01, 2016 USD ($) $ / shares shares | Oct. 11, 2016 | Sep. 30, 2022 USD ($) $ / shares bu gal | Sep. 30, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | ||||
Per unit price of membership units issued in real estate transaction | $ / shares | $ 1 | |||
Construction in progress | $ 1,191,290 | $ 29,154,711 | ||
Revolving Credit Facility [Member] | Bank of North Dakota Ethanol Recovery Program [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Amount drawn on loan facility | $ 5,410,000 | |||
Bushel of corn | Fixed-price contract | ||||
Long-term Purchase Commitment [Line Items] | ||||
Amount of corn | bu | 2.2 | |||
Commitment amount of contracts | $ 14,200,000 | |||
Raw water | ||||
Long-term Purchase Commitment [Line Items] | ||||
Contractual annual minimum gallons of water | gal | 160,000,000 | |||
Purchase commitment term of contract | 10 years | |||
Commitment amount of contracts | $ 424,000 | |||
Profit and Cost Sharing Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Percent of net revenue generated to be shared per agreement | 70% | |||
Membership units issued in real estate transaction | shares | 2 | |||
Per unit price of membership units issued in real estate transaction | $ / shares | $ 1.66 | |||
Length of agreement | 10 years | |||
Maximum net revenue sharing amount per agreement | $ 10,000,000 | |||
Percent of net proceeds from sale of subject real estate to be paid to counterparty | 70% | |||
Payments made per profit sharing agreement | 679,428 | |||
Payments on Profit Sharing Agreement, Cumulative | 1,247,581 | |||
Carbon Capture and Storage Project | DCS Computer System | ||||
Long-term Purchase Commitment [Line Items] | ||||
Capital Project, Commitment | 800,992 | |||
Capital Project, Balance paid to date | $ 779,895 |
Defined Contribution Retireme_2
Defined Contribution Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |||
Employee percent match | 4% | ||
Company contribution | $ 155 | $ 130 | $ 134 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Affiliated Entity [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Accounts receivable | $ 4,086,689 | $ 1,309,673 | |
Accounts Payable | 60,412 | 788,050 | |
Accrued Expenses | 7,645 | 832,904 | |
Revenues | 202,902,678 | 107,501,604 | $ 83,637,691 |
Cost of goods sold | 3,249,001 | 1,851,143 | 2,013,630 |
General and administrative | 0 | 169,910 | 166,991 |
Other income /expense | 0 | 0 | 119,825 |
Inventory Purchases | $ 40,383,126 | $ 14,080,623 | $ 21,095,195 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - Revolving Credit Facility [Member] - Construction Loans [Member] - USD ($) | Oct. 28, 2022 | Sep. 30, 2022 |
Subsequent Event [Line Items] | ||
Revolving loan facility | $ 7,000,000 | |
Carbon Capture and Storage Project | ||
Subsequent Event [Line Items] | ||
Revolving loan facility | $ 28 | |
Variable interest rate | 4.30% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Revolving loan facility | $ 25,000,000 | |
Variable interest rate | 4.65% |
Uncertainties Impacting the E_2
Uncertainties Impacting the Ethanol Industry and Our Future Operations Uncertainties RFA (Details) gal in Billions | 12 Months Ended |
Sep. 30, 2022 gal | |
Risks and Uncertainties [Abstract] | |
Renewable Fuel Standard | 14.8 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenues | $ 48,909,685 | $ 55,720,460 | $ 51,677,779 | $ 60,827,197 | $ 14,521,121 | $ 42,741,846 | $ 34,264,089 | $ 27,557,555 | $ 21,525,994 | $ 22,670,742 | $ 23,638,144 | $ 26,340,913 | $ 217,135,121 | $ 119,084,611 | $ 94,175,793 |
Gross profit (loss) | (3,019,210) | 6,437,590 | 5,079,156 | 17,809,414 | (5,180,048) | 10,370,203 | 6,125,603 | 3,653,352 | 3,459,545 | 3,449,833 | (2,369,704) | (498,570) | 26,306,950 | 14,969,110 | 4,041,104 |
Operating income (loss) | (4,264,765) | 5,638,600 | 4,419,297 | 16,712,235 | (5,245,415) | 9,516,024 | 5,215,440 | 2,243,816 | 2,226,388 | 2,177,135 | (3,394,168) | (1,298,075) | 22,505,367 | 11,729,865 | (288,720) |
Net income (loss) | $ (4,234,942) | $ 9,921,072 | $ 4,439,004 | $ 19,371,546 | $ (5,239,345) | $ 9,505,434 | $ 6,093,896 | $ 2,265,694 | $ 2,289,931 | $ 2,204,564 | $ (3,235,994) | $ (1,251,913) | $ 29,496,680 | $ 12,625,679 | $ 6,588 |
Net Income (Loss) Per Unit, Diluted | $ (0.11) | $ 0.25 | $ 0.11 | $ 0.48 | $ (0.13) | $ 0.24 | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.05 | $ (0.08) | $ (0.03) | $ 0.73 | $ 0.31 | $ 0 |
Net Income (Loss) Per Unit, Basic | $ (0.11) | $ 0.25 | $ 0.11 | $ 0.48 | $ (0.13) | $ 0.24 | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.05 | $ (0.08) | $ 0.73 | $ 0.31 | $ 0 |