x
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Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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|
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For the fiscal year ended December 31, 2019
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|
|
|
o
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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Commission file number 000-50254
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Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
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|
|
|
Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer x
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Smaller Reporting Company o
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Emerging Growth Company o
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Page No.
|
|
|
|
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|
|
|
|
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|
|
|
|
•
|
Reductions in the corn-based ethanol use requirement in the Federal Renewable Fuels Standard;
|
•
|
The impact of small refinery exemptions from the RFS which have reduced ethanol demand;
|
•
|
Oversupply in the ethanol industry resulting in lower market ethanol prices;
|
•
|
Negative operating margins which result from lower ethanol prices;
|
•
|
Lower ethanol prices due to the Chinese and Brazilian ethanol tariffs;
|
•
|
Lower distillers grains prices due to the Chinese antidumping and countervailing duty tariffs;
|
•
|
Lower gasoline prices may negatively impact ethanol prices which could hurt our profitability;
|
•
|
Availability and costs of raw materials, particularly corn and natural gas;
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•
|
Changes in the price and market for ethanol, distillers grains and corn oil;
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•
|
Our ability to maintain liquidity and maintain our risk management positions;
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•
|
Changes in the availability and cost of credit;
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•
|
Changes and advances in ethanol production technology;
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•
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The effectiveness of our risk management strategy to offset increases in the price of our raw materials and decreases in the prices of our products;
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•
|
Overcapacity within the ethanol industry causing supply to exceed demand;
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•
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Our ability to market and our reliance on third parties to market our products;
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•
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The decrease or elimination of governmental incentives which support the ethanol industry;
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•
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Changes in the weather or general economic conditions impacting the availability and price of corn;
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•
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Our ability to generate free cash flow to invest in our business and service our debt;
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•
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Changes in plant production capacity or technical difficulties in operating the plant;
|
•
|
Changes in our business strategy, capital improvements or development plans;
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•
|
Our ability to retain key employees and maintain labor relations;
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•
|
Our liability resulting from potential litigation;
|
•
|
Competition from alternative fuels and alternative fuel additives; and
|
•
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Other factors described elsewhere in this report.
|
Product
|
|
Fiscal Year 2019
|
|
Fiscal Year 2018
|
|
Fiscal Year 2017
|
Ethanol
|
|
78%
|
|
77%
|
|
79%
|
Distillers Grains
|
|
18%
|
|
20%
|
|
17%
|
Corn Oil
|
|
4%
|
|
3%
|
|
4%
|
Company
|
|
Current Capacity
(MMgy)
|
|
Percent of Total
|
Archer Daniels Midland
|
|
1,616
|
|
10%
|
POET Biorefining
|
|
1,711
|
|
10%
|
Green Plains Renewable Energy
|
|
1,111
|
|
7%
|
Valero Renewable Fuels
|
|
1,697
|
|
10%
|
Flint Hills Resources
|
|
840
|
|
5%
|
Quarter
|
|
Low Price
|
|
High Price
|
|
Average Price
|
|
Number of
Units Traded
|
|||||||
First Quarter 2018
|
|
$
|
3.30
|
|
|
$
|
3.40
|
|
|
$
|
3.32
|
|
|
177,000
|
|
Second Quarter 2018
|
|
3.20
|
|
|
3.30
|
|
|
3.26
|
|
|
49,000
|
|
|||
Third Quarter 2018
|
|
3.12
|
|
|
3.29
|
|
|
3.21
|
|
|
48,000
|
|
|||
Fourth Quarter 2018
|
|
3.21
|
|
|
3.26
|
|
|
3.22
|
|
|
27,500
|
|
|||
First Quarter 2019
|
|
3.09
|
|
|
3.25
|
|
|
3.15
|
|
|
23,000
|
|
|||
Second Quarter 2019
|
|
3.00
|
|
|
3.10
|
|
|
3.02
|
|
|
54,500
|
|
|||
Third Quarter 2019
|
|
2.75
|
|
|
2.80
|
|
|
2.79
|
|
|
31,500
|
|
|||
Fourth Quarter 2019
|
|
2.40
|
|
|
2.50
|
|
|
2.43
|
|
|
29,000
|
|
Statement of Operations Data:
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenues
|
|
$
|
115,986,821
|
|
|
$
|
74,703,630
|
|
|
$
|
84,821,788
|
|
|
$
|
88,812,550
|
|
|
$
|
88,997,947
|
|
Cost of Revenues
|
|
114,687,231
|
|
|
68,619,694
|
|
|
76,253,945
|
|
|
76,097,861
|
|
|
81,445,770
|
|
|||||
Gross Profit
|
|
1,299,590
|
|
|
6,083,936
|
|
|
8,567,843
|
|
|
12,714,689
|
|
|
7,552,177
|
|
|||||
Operating Expense
|
|
4,060,343
|
|
|
3,837,659
|
|
|
3,717,291
|
|
|
3,642,087
|
|
|
1,827,789
|
|
|||||
Income (Loss) From Operations
|
|
(2,760,753
|
)
|
|
2,246,277
|
|
|
4,850,552
|
|
|
9,072,602
|
|
|
5,724,388
|
|
|||||
Other Income (Expense)
|
|
(1,063,431
|
)
|
|
470,310
|
|
|
1,534,531
|
|
|
2,332,606
|
|
|
2,929,142
|
|
|||||
Net Income (Loss)
|
|
$
|
(3,824,184
|
)
|
|
$
|
2,716,587
|
|
|
$
|
6,385,083
|
|
|
$
|
11,405,208
|
|
|
$
|
8,653,530
|
|
Capital Units Outstanding
|
|
29,620,000
|
|
|
29,620,000
|
|
|
29,620,000
|
|
|
29,620,000
|
|
|
29,620,000
|
|
|||||
Net Income (Loss) Per Capital Unit
|
|
$
|
(0.13
|
)
|
|
$
|
0.09
|
|
|
$
|
0.22
|
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
Cash Distributions per Capital Unit
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
$
|
0.40
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet Data:
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Working Capital
|
|
$
|
8,323,445
|
|
|
$
|
72,709
|
|
|
$
|
6,131,109
|
|
|
$
|
11,313,046
|
|
|
$
|
8,443,572
|
|
Net Property, Plant & Equipment
|
|
66,707,481
|
|
|
63,748,268
|
|
|
39,968,930
|
|
|
34,824,202
|
|
|
34,184,059
|
|
|||||
Total Assets
|
|
119,810,318
|
|
|
102,866,072
|
|
|
84,072,240
|
|
|
78,116,089
|
|
|
79,746,514
|
|
|||||
Long-Term Obligations
|
|
37,993,208
|
|
|
23,593,368
|
|
|
6,983,944
|
|
|
26,556
|
|
|
106,475
|
|
|||||
Members' Equity
|
|
64,212,940
|
|
|
68,037,124
|
|
|
68,282,537
|
|
|
67,821,454
|
|
|
68,264,246
|
|
|||||
Book Value Per Capital Unit
|
|
$
|
2.17
|
|
|
$
|
2.30
|
|
|
$
|
2.31
|
|
|
$
|
2.29
|
|
|
$
|
2.30
|
|
|
|
2019
|
|
2018
|
||||||||||
Income Statement Data
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Revenue
|
|
$
|
115,986,821
|
|
|
100.0
|
|
|
$
|
74,703,630
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of Revenues
|
|
114,687,231
|
|
|
98.9
|
|
|
68,619,694
|
|
|
91.9
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Gross Profit
|
|
1,299,590
|
|
|
1.1
|
|
|
6,083,936
|
|
|
8.1
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Operating Expense
|
|
4,060,343
|
|
|
3.5
|
|
|
3,837,659
|
|
|
5.1
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Income (Loss) from Operations
|
|
(2,760,753
|
)
|
|
(2.4
|
)
|
|
2,246,277
|
|
|
3.0
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Other Income (Expense)
|
|
(1,063,431
|
)
|
|
(0.9
|
)
|
|
470,310
|
|
|
0.6
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Net Income (Loss)
|
|
$
|
(3,824,184
|
)
|
|
(3.3
|
)
|
|
$
|
2,716,587
|
|
|
3.6
|
|
|
|
2018
|
|
2017
|
||||||||||
Income Statement Data
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Revenue
|
|
$
|
74,703,630
|
|
|
100.0
|
|
|
$
|
84,821,788
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of Revenues
|
|
68,619,694
|
|
|
91.9
|
|
|
76,253,945
|
|
|
89.9
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Gross Profit
|
|
6,083,936
|
|
|
8.1
|
|
|
8,567,843
|
|
|
10.1
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Operating Expense
|
|
3,837,659
|
|
|
5.1
|
|
|
3,717,291
|
|
|
4.4
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Income from Operations
|
|
2,246,277
|
|
|
3.0
|
|
|
4,850,552
|
|
|
5.7
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Other Income
|
|
470,310
|
|
|
0.6
|
|
|
1,534,531
|
|
|
1.8
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Net Income
|
|
$
|
2,716,587
|
|
|
3.6
|
|
|
$
|
6,385,083
|
|
|
7.5
|
|
|
|
Fiscal Years Ended December 31
|
||||||
|
|
2019
|
|
2018
|
||||
Net cash provided by operating activities
|
|
$
|
7,517,770
|
|
|
$
|
7,804,468
|
|
Net cash used in investing activities
|
|
(9,700,103
|
)
|
|
(26,323,269
|
)
|
||
Net cash provided by financing activities
|
|
13,308,049
|
|
|
15,113,779
|
|
|
|
Fiscal Years Ended December 31
|
||||||
|
|
2018
|
|
2017
|
||||
Net cash provided by operating activities
|
|
$
|
7,804,468
|
|
|
$
|
11,567,864
|
|
Net cash used in investing activities
|
|
(26,323,269
|
)
|
|
(18,134,893
|
)
|
||
Net cash provided by financing activities
|
|
15,113,779
|
|
|
1,676,653
|
|
|
|
Payments Due By Period
|
||||||||||||||||||
Contractual Cash Obligations
|
|
Total
|
|
Less than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
After Five Years
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-Term Debt Obligations
|
|
$
|
49,099,342
|
|
|
$
|
2,941,225
|
|
|
$
|
5,724,876
|
|
|
$
|
12,091,791
|
|
|
$
|
28,341,450
|
|
Purchase Obligations
|
|
21,598,920
|
|
|
20,028,120
|
|
|
369,600
|
|
|
369,600
|
|
|
831,600
|
|
|||||
Other Liabilities
|
|
8,000
|
|
|
4,000
|
|
|
4,000
|
|
|
—
|
|
|
—
|
|
|||||
Total Contractual Cash Obligations
|
|
$
|
70,706,262
|
|
|
$
|
22,973,345
|
|
|
$
|
6,098,476
|
|
|
$
|
12,461,391
|
|
|
$
|
29,173,050
|
|
|
Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)
|
|
Unit of Measure
|
|
Hypothetical Adverse Change in Price
|
|
Approximate Adverse Change to Income
|
||||
Ethanol
|
92,000,000
|
|
|
Gallons
|
|
10
|
%
|
|
$
|
11,132,000
|
|
Corn
|
25,568,666
|
|
|
Bushels
|
|
10
|
%
|
|
$
|
9,946,211
|
|
Natural Gas
|
1,284,296
|
|
|
MMBTU
|
|
10
|
%
|
|
$
|
346,760
|
|
|
Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)
|
|
Unit of Measure
|
|
Hypothetical Adverse Change in Price
|
|
Approximate Adverse Change to Income
|
||||
Ethanol
|
52,500,000
|
|
|
Gallons
|
|
10
|
%
|
|
$
|
6,090,000
|
|
Corn
|
16,367,238
|
|
|
Bushels
|
|
10
|
%
|
|
$
|
5,352,087
|
|
Natural Gas
|
539,250
|
|
|
MMBTU
|
|
10
|
%
|
|
$
|
200,062
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
12,823,653
|
|
|
$
|
1,697,937
|
|
Accounts receivable
|
1,576,093
|
|
|
1,229,053
|
|
||
Inventory
|
10,543,422
|
|
|
7,561,501
|
|
||
Derivative financial instruments
|
505,025
|
|
|
554,005
|
|
||
Prepaid expenses
|
479,422
|
|
|
265,793
|
|
||
Total current assets
|
25,927,615
|
|
|
11,308,289
|
|
||
|
|
|
|
||||
PROPERTY AND EQUIPMENT
|
|
|
|
||||
Land
|
874,473
|
|
|
874,473
|
|
||
Land improvements
|
8,631,224
|
|
|
8,558,720
|
|
||
Buildings
|
9,316,576
|
|
|
9,001,546
|
|
||
Equipment
|
95,395,121
|
|
|
61,839,725
|
|
||
Construction in progress
|
150,925
|
|
|
26,203,702
|
|
||
|
114,368,319
|
|
|
106,478,166
|
|
||
Less accumulated depreciation
|
(47,660,838
|
)
|
|
(42,729,898
|
)
|
||
Net property and equipment
|
66,707,481
|
|
|
63,748,268
|
|
||
|
|
|
|
||||
OTHER ASSETS
|
|
|
|
||||
Goodwill
|
10,395,766
|
|
|
10,395,766
|
|
||
Investments
|
16,682,169
|
|
|
17,300,470
|
|
||
Other
|
97,287
|
|
|
113,279
|
|
||
Total other assets
|
27,175,222
|
|
|
27,809,515
|
|
||
|
|
|
|
||||
TOTAL ASSETS
|
$
|
119,810,318
|
|
|
$
|
102,866,072
|
|
|
|
|
|
|
|
|
|
||||
|
December 31, 2019
|
|
December 31, 2018
|
||||
LIABILITIES AND MEMBERS’ EQUITY
|
|
|
|
||||
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Outstanding checks in excess of bank balance
|
$
|
1,155,264
|
|
|
$
|
2,247,215
|
|
Accounts payable
|
13,812,388
|
|
|
6,849,896
|
|
||
Accrued liabilities
|
933,668
|
|
|
765,994
|
|
||
Derivative financial instruments
|
698,850
|
|
|
368,475
|
|
||
Current portion of notes payable
|
1,000,000
|
|
|
1,000,000
|
|
||
Other
|
4,000
|
|
|
4,000
|
|
||
Total current liabilities
|
17,604,170
|
|
|
11,235,580
|
|
||
|
|
|
|
||||
LONG-TERM LIABILITIES
|
|
|
|
||||
Notes payable
|
37,989,208
|
|
|
23,585,368
|
|
||
Other
|
4,000
|
|
|
8,000
|
|
||
Total long-term liabilities
|
37,993,208
|
|
|
23,593,368
|
|
||
|
|
|
|
||||
COMMITMENTS AND CONTINGENCIES (Note 9)
|
|
|
|
||||
|
|
|
|
||||
MEMBERS' EQUITY (29,620,000 units issued and outstanding)
|
64,212,940
|
|
|
68,037,124
|
|
||
|
|
|
|
||||
TOTAL LIABILITIES AND MEMBERS' EQUITY
|
$
|
119,810,318
|
|
|
$
|
102,866,072
|
|
|
|
|
|
|
Year Ended
December 31, 2019 |
|
Year Ended
December 31, 2018 |
|
Year Ended
December 31, 2017 |
||||||
|
|
|
|
|
|
||||||
REVENUES
|
$
|
115,986,821
|
|
|
$
|
74,703,630
|
|
|
$
|
84,821,788
|
|
|
|
|
|
|
|
||||||
COSTS OF REVENUES
|
114,687,231
|
|
|
68,619,694
|
|
|
76,253,945
|
|
|||
|
|
|
|
|
|
||||||
GROSS PROFIT
|
1,299,590
|
|
|
6,083,936
|
|
|
8,567,843
|
|
|||
|
|
|
|
|
|
||||||
OPERATING EXPENSES
|
4,060,343
|
|
|
3,837,659
|
|
|
3,717,291
|
|
|||
|
|
|
|
|
|
||||||
INCOME (LOSS) FROM OPERATIONS
|
(2,760,753
|
)
|
|
2,246,277
|
|
|
4,850,552
|
|
|||
|
|
|
|
|
|
||||||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
||||||
Interest and other income
|
180,801
|
|
|
67,042
|
|
|
77,033
|
|
|||
Equity in net income (loss) of investments
|
(60,908
|
)
|
|
403,268
|
|
|
1,459,806
|
|
|||
Interest expense
|
(1,183,324
|
)
|
|
—
|
|
|
(2,308
|
)
|
|||
Total other income (expense)
|
(1,063,431
|
)
|
|
470,310
|
|
|
1,534,531
|
|
|||
|
|
|
|
|
|
||||||
NET INCOME (LOSS)
|
$
|
(3,824,184
|
)
|
|
$
|
2,716,587
|
|
|
$
|
6,385,083
|
|
|
|
|
|
|
|
||||||
BASIC AND DILUTED EARNINGS (LOSS) PER UNIT
|
$
|
(0.13
|
)
|
|
$
|
0.09
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING
|
29,620,000
|
|
|
29,620,000
|
|
|
29,620,000
|
|
|||
|
|
|
|
|
|
|
|
Members'
|
||
|
|
Equity
|
||
Balance, December 31, 2016
|
|
$
|
67,821,454
|
|
Net income
|
|
6,385,083
|
|
|
Distributions ($.20 per capital unit)
|
|
(5,924,000
|
)
|
|
|
|
|
||
Balance, December 31, 2017
|
|
68,282,537
|
|
|
Net income
|
|
2,716,587
|
|
|
Distributions ($.10 per capital unit)
|
|
(2,962,000
|
)
|
|
|
|
|
||
Balance, December 31, 2018
|
|
68,037,124
|
|
|
Net (loss)
|
|
(3,824,184
|
)
|
|
|
|
|
||
Balance, December 31, 2019
|
|
$
|
64,212,940
|
|
•
|
Sales of Ethanol
|
•
|
Sales of Distillers Grains
|
•
|
Sales of Distillers Corn Oil
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Revenues ethanol
|
|
$
|
90,415,936
|
|
|
$
|
57,705,675
|
|
|
$
|
67,281,231
|
|
Revenues distillers grains
|
|
21,200,904
|
|
|
14,677,962
|
|
|
14,464,977
|
|
|||
Revenues distillers corn oil
|
|
4,369,981
|
|
|
2,319,993
|
|
|
3,075,580
|
|
|||
|
|
$
|
115,986,821
|
|
|
$
|
74,703,630
|
|
|
$
|
84,821,788
|
|
|
|
Balance Sheet Classification
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
|
|
||||
Forward contracts in gain position
|
|
|
|
$
|
160,687
|
|
|
$
|
676
|
|
Futures and options contracts in gain position
|
|
|
|
33,338
|
|
|
175,038
|
|
||
Futures and options contracts in loss position
|
|
|
|
(1,500
|
)
|
|
—
|
|
||
Total forward, futures and options contracts
|
|
|
|
192,525
|
|
|
175,714
|
|
||
Cash held by broker
|
|
|
|
312,500
|
|
|
378,291
|
|
||
|
|
Current Assets
|
|
$
|
505,025
|
|
|
$
|
554,005
|
|
|
|
|
|
|
|
|
||||
Forward contracts in loss position
|
|
Current Liabilities
|
|
$
|
(698,850
|
)
|
|
$
|
(368,475
|
)
|
|
|
|
|
|
|
|
|
|
Statement of Operations
|
|
Years Ended December 31,
|
||||||||||
|
|
Classification
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net realized and unrealized gains (losses) related to purchase contracts:
|
|
|
|
|
|
|
|
|
||||||
Futures and options contracts
|
|
Cost of Revenues
|
|
$
|
(8,631
|
)
|
|
$
|
1,544,635
|
|
|
$
|
608,250
|
|
Forward contracts
|
|
Cost of Revenues
|
|
(897,283
|
)
|
|
(994,854
|
)
|
|
(1,423,330
|
)
|
•
|
Land improvements 20-40 years
|
•
|
Equipment 5-20 years
|
•
|
Buildings 15-40 years
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Raw materials
|
|
$
|
4,968,731
|
|
|
$
|
3,396,707
|
|
Finished goods
|
|
3,505,224
|
|
|
2,589,255
|
|
||
Work in process
|
|
952,319
|
|
|
514,881
|
|
||
Parts inventory
|
|
1,117,148
|
|
|
1,060,658
|
|
||
|
|
$
|
10,543,422
|
|
|
$
|
7,561,501
|
|
Balance Sheet
|
|
12/31/2019
|
|
12/31/2018
|
|
12/31/2017
|
||||||
|
|
|
|
|
|
|
||||||
Current assets
|
|
$
|
219,618,012
|
|
|
$
|
189,839,430
|
|
|
$
|
212,154,680
|
|
Other assets
|
|
226,475,383
|
|
|
234,748,455
|
|
|
164,254,183
|
|
|||
Current liabilities
|
|
187,381,453
|
|
|
175,836,322
|
|
|
131,152,747
|
|
|||
Long-term liabilities
|
|
95,219,540
|
|
|
78,589,892
|
|
|
54,754,437
|
|
|||
Member's equity
|
|
163,492,402
|
|
|
170,161,671
|
|
|
190,501,679
|
|
|||
Revenue
|
|
340,501,873
|
|
|
259,563,274
|
|
|
255,154,945
|
|
|||
Gross Profit
|
|
29,775,561
|
|
|
19,921,043
|
|
|
33,033,635
|
|
|||
Net Income
|
|
1,854,188
|
|
|
5,521,750
|
|
|
19,482,340
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Note Payable - FCSA
|
|
$
|
39,000,000
|
|
|
$
|
24,600,000
|
|
Less unamortized debt issuance costs
|
|
(10,792
|
)
|
|
(14,632
|
)
|
||
|
|
38,989,208
|
|
|
24,585,368
|
|
||
Less current portion
|
|
(1,000,000
|
)
|
|
(1,000,000
|
)
|
||
|
|
$
|
37,989,208
|
|
|
$
|
23,585,368
|
|
|
|
|
||
Years Ending December 31,
|
|
Principal
|
||
2020
|
|
$
|
1,000,000
|
|
2021
|
|
1,000,000
|
|
|
2022
|
|
1,000,000
|
|
|
2023
|
|
4,500,000
|
|
|
2024
|
|
4,500,000
|
|
|
thereafter
|
|
27,000,000
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments, futures and options contracts
|
|
$
|
33,338
|
|
|
$
|
33,338
|
|
|
$
|
—
|
|
|
$
|
—
|
|
forward contracts
|
|
160,687
|
|
|
—
|
|
|
160,687
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments, futures and options contracts
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
forward contracts
|
|
698,850
|
|
|
—
|
|
|
698,850
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments, futures and options contracts
|
|
$
|
175,038
|
|
|
$
|
175,038
|
|
|
$
|
—
|
|
|
$
|
—
|
|
forward contracts
|
|
676
|
|
|
—
|
|
|
676
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments, futures and options contracts
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
forward contracts
|
|
368,475
|
|
|
—
|
|
|
368,475
|
|
|
—
|
|
Years Ending December 31,
|
|
Amount
|
2020
|
|
$184,800
|
2021
|
|
184,800
|
2022
|
|
184,800
|
2023
|
|
184,800
|
2024
|
|
184,800
|
thereafter
|
|
831,600
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Revenues ethanol
|
|
$
|
90,555,111
|
|
|
$
|
57,876,705
|
|
|
$
|
37,186,350
|
|
Revenues distillers grains
|
|
5,108,266
|
|
|
1,801,956
|
|
|
4,225,707
|
|
|||
Revenues corn oil
|
|
4,406,438
|
|
|
2,334,245
|
|
|
3,088,510
|
|
|||
|
|
|
|
|
|
|
||||||
Marketing fees ethanol
|
|
242,607
|
|
|
254,555
|
|
|
249,645
|
|
|||
Marketing fees distillers grains
|
|
36,935
|
|
|
12,294
|
|
|
31,993
|
|
|||
Marketing fees corn oil
|
|
36,457
|
|
|
18,824
|
|
|
19,481
|
|
|||
|
|
|
|
|
|
|
||||||
Accounts receivable balance at period end
|
|
891,227
|
|
|
836,798
|
|
|
2,749,502
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
21,613,298
|
|
|
$
|
26,096,989
|
|
|
$
|
32,441,510
|
|
|
$
|
35,835,024
|
|
Gross profit (loss)
|
2,450,262
|
|
|
1,298,964
|
|
|
(1,815,202
|
)
|
|
(634,434
|
)
|
||||
Income (loss) from operations
|
1,440,935
|
|
|
372,585
|
|
|
(2,786,864
|
)
|
|
(1,787,409
|
)
|
||||
Net income (loss)
|
1,790,204
|
|
|
(192,897
|
)
|
|
(3,599,789
|
)
|
|
(1,821,702
|
)
|
||||
Basic and diluted earnings (loss) per unit
|
0.06
|
|
|
(0.01
|
)
|
|
(0.12
|
)
|
|
(0.06
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
19,804,272
|
|
|
$
|
20,077,335
|
|
|
$
|
18,796,356
|
|
|
$
|
16,025,667
|
|
Gross profit
|
2,612,121
|
|
|
2,065,457
|
|
|
718,120
|
|
|
688,238
|
|
||||
Income (loss) from operations
|
1,628,878
|
|
|
1,073,009
|
|
|
(153,933
|
)
|
|
(301,677
|
)
|
||||
Net income (loss)
|
1,876,697
|
|
|
1,466,978
|
|
|
(182,218
|
)
|
|
(444,870
|
)
|
||||
Basic and diluted earnings (loss) per unit
|
0.06
|
|
|
0.05
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
22,713,628
|
|
|
$
|
21,612,598
|
|
|
$
|
19,479,798
|
|
|
$
|
21,015,764
|
|
Gross profit
|
2,220,455
|
|
|
2,015,355
|
|
|
1,968,680
|
|
|
2,363,353
|
|
||||
Income from operations
|
1,213,883
|
|
|
1,151,750
|
|
|
1,134,221
|
|
|
1,350,698
|
|
||||
Net income
|
1,610,424
|
|
|
1,314,299
|
|
|
1,815,347
|
|
|
1,645,013
|
|
||||
Basic and diluted earnings per unit
|
0.05
|
|
|
0.04
|
|
|
0.06
|
|
|
0.07
|
|
Exhibit No.
|
Exhibit
|
|
Filed Herewith
|
|
Incorporated by Reference
|
|
3.2
|
|
|
|
|
Filed as Exhibit 3.6 on the registrant's Form 10-K filed with the Commission on March 31, 2005 and incorporated by reference herein.
|
|
3.3
|
|
|
|
|
Filed as Exhibit 99.1 on the registrant's Form 8-K filed with the Commission on March 19, 2007 and incorporated by reference herein.
|
|
3.4
|
|
|
|
|
Filed as Exhibit 99.1 on the registrant's Form 8-K filed with the Commission on January 10, 2018 and incorporated by reference herein.
|
|
10.1
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 14, 2008 and incorporated by reference herein.
|
|
10.2
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 14, 2007 and incorporated by reference herein.
|
|
10.3
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-K filed with the Commission on March 30, 2007.
|
|
10.4
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 8-K filed with the Commission on December 2, 2005 and incorporated by reference herein.
|
|
10.5
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on May 15, 2009 and incorporated by reference herein.
|
|
10.6
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 12, 2009 and incorporated by reference herein.
|
|
10.7
|
|
|
|
|
Filed as Exhibit 10.2 on the registrant's Form 10-Q filed with the Commission on August 12, 2009 and incorporated by reference herein.
|
|
10.8
|
|
|
|
|
Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 13, 2010 and incorporated by reference herein.
|
|
10.9
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Filed as Exhibit 10.2 on the registrant's Form 10-Q filed with the Commission on August 13, 2010 and incorporated by reference herein.
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10.10
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Filed as Exhibit 10.3 on the registrant's Form 10-Q filed with the Commission on August 13, 2010 and incorporated by reference herein.
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10.11
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Filed as Exhibit 10.22 on the registrant's Form 10-K filed with the Commission on March 30, 2011 and incorporated by reference herein.
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10.12
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 11, 2011 and incorporated by reference herein.
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10.13
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Filed as Exhibit 10.2 on the registrant's Form 10-Q filed with the Commission on August 11, 2011 and incorporated by reference herein.
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10.14
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Filed as Exhibit 10.3 on the registrant's Form 10-Q filed with the Commission on August 11, 2011 and incorporated by reference herein.
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10.15
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on May 14, 2012 and incorporated by reference herein.
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10.16
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Filed as Exhibit 10.2 on the registrant's Form 10-Q filed with the Commission on May 14, 2012 and incorporated by reference herein.
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10.17
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Filed as Exhibit 10.3 on the registrant's Form 10-Q filed with the Commission on May 14, 2012 and incorporated by reference herein.
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10.18
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on November 13, 2012 and incorporated by reference herein.
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10.19
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on May 13, 2013 and incorporated by reference herein.
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10.20
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Filed as Exhibit 10.2 on the registrant's Form 10-Q filed with the Commission on May 13, 2013 and incorporated by reference herein.
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10.21
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 13, 2013 and incorporated by reference herein.
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10.22
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Filed as Exhibit 10.22 on the registrant's Form 10-K filed with the Commission on February 27, 2014 and incorporated by reference herein.
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10.23
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on November 13, 2014 and incorporated by reference herein.
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10.24
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Filed as Exhibit 10.24 on the registrant's Form 10-K filed with the Commission on February 26, 2015 and incorporated by reference herein.
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10.25
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on May 14, 2015 and incorporated by reference herein.
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10.26
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on November 14, 2016 and incorporated by reference herein.
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10.27
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on August 11, 2017 and incorporated by reference herein.
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10.28
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Filed as Exhibit 10.28 on the registrant's Form 10-K filed with the Commission on March 2, 2018 and incorporated by reference herein.
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10.29
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Filed as Exhibit 10.29 on the registrant's Form 10-K filed with the Commission on March 2, 2018 and incorporated by reference herein.
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10.30
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Filed as Exhibit 10.30 on the registrant's Form 10-K filed with the Commission on February 28, 2019 and incorporated by reference herein.
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10.31
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Filed as Exhibit 10.1 on the registrant's Form 10-Q filed with the Commission on November 11, 2019 and incorporated by reference herein.
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31.1
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X
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Filed herewith
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31.2
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X
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Filed herewith
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32.1
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X
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Filed herewith
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32.2
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X
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Filed herewith
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|
101
|
|
The following financial information from Lake Area Corn Processors, LLC's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018, (ii) Consolidated Statements of Income for the fiscal years ended December 31, 2019, 2018 and 2017, (iii) Statement of Changes in Members' Equity, (iv) Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2019, 2018 and 2017, and (v) the Notes to Consolidated Financial Statements.**
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LAKE AREA CORN PROCESSORS, LLC
|
||
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|
||
Date:
|
March 5, 2020
|
|
/s/ Scott Mundt
|
|
Scott Mundt
|
||
|
President and Chief Executive Officer
(Principal Executive Officer)
|
||
|
|
||
Date:
|
March 5, 2020
|
|
/s/ Rob Buchholtz
|
|
Rob Buchholtz
|
||
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Date:
|
March 5, 2020
|
|
/s/ Ronald Alverson
|
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|
|
Ronald Alverson, Manager
|
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|
|
Date:
|
March 5, 2020
|
|
/s/ Todd Brown
|
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|
Todd Brown, Manager
|
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|
|
|
Date:
|
March 5, 2020
|
|
/s/ Randy Hansen
|
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|
Randy Hansen, Manager
|
|
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|
|
Date:
|
March 5, 2020
|
|
/s/ Rick Kasperson
|
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|
Rick Kasperson, Manager
|
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|
|
Date:
|
March 5, 2020
|
|
/s/ Marty Thompson
|
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|
Marty Thompson, Manager
|
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|
|
|
Date:
|
March 5, 2020
|
|
/s/ Wayne Backus
|
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|
Wayne Backus, Manager
|
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|
|
Date:
|
March 5, 2020
|
|
/s/ Dave Wolles
|
|
|
|
Dave Wolles, Manager
|
|
|
|
|
1.
|
Exhibit ‘B’ Compliance Certificate is hereby replaced with the attached Exhibit ‘B’.
|
2.
|
The following Section is hereby amended to read as follows:
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
March 5, 2020
|
/s/ Scott Mundt
|
|
|
|
Scott Mundt,
Chief Executive Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
March 5, 2020
|
/s/ Robbi Buchholtz
|
|
|
|
Robbi Buchholtz,
Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
Dated:
|
March 5, 2020
|
|
/s/ Scott Mundt
|
|
|
|
Scott Mundt,
|
|
|
|
Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
Dated:
|
March 5, 2020
|
|
/s/ Robbi Buchholtz
|
|
|
|
Robbi Buchholtz,
|
|
|
|
Chief Financial Officer
|
|
|
|
|