x
|
Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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|
|
For the fiscal year ended September 30, 2019
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|
OR
|
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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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|
|
For the transition period from to .
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|
|
COMMISSION FILE NUMBER 000-53036
|
Indiana
|
|
20-2327916
|
||
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
||
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||
1554 N. County Road 600 E., Union City, IN 47390
|
||||
(Address of principal executive offices)
|
||||
|
||||
(765) 964-3137
|
||||
Registrant's telephone number, including area code
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||||
|
||||
Securities registered pursuant to 12(b) of the Act: None.
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Title of each class
|
Trading Symbol(s)
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Name of each exchange on which registered
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Page Number
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|
|
|
|
|
|
•
|
Reduction or elimination of the Renewable Fuel Standard;
|
•
|
Changes in the availability and price of corn and natural gas;
|
•
|
Our inability to secure credit or obtain additional equity financing we may require in the future to continue our operations;
|
•
|
Decreases in the price we receive for our ethanol, distillers grains and corn oil;
|
•
|
Our ability to satisfy the financial covenants contained in our credit agreements with our lender;
|
•
|
Our ability to profitably operate the ethanol plant and maintain a positive spread between the selling price of our products and our raw material costs;
|
•
|
Negative impacts that our hedging activities may have on our operations;
|
•
|
Ethanol and distillers grains supply exceeding demand and corresponding price reductions;
|
•
|
Our ability to generate free cash flow to invest in our business and service any debt;
|
•
|
Changes in the environmental regulations that apply to our plant operations;
|
•
|
Changes in our business strategy, capital improvements or development plans;
|
•
|
Changes in plant production capacity or technical difficulties in operating the plant;
|
•
|
Changes in general economic conditions or the occurrence of certain events causing an economic impact in the agriculture, oil or automobile industries;
|
•
|
Lack of transport, storage and blending infrastructure preventing our products from reaching high demand markets;
|
•
|
Changes in federal and/or state laws;
|
•
|
Changes and advances in ethanol production technology;
|
•
|
Competition from alternative fuel additives;
|
•
|
Changes in interest rates or the lack of credit availability;
|
•
|
Changes in legislation benefiting renewable fuels;
|
•
|
Our ability to retain key employees and maintain labor relations;
|
•
|
Volatile commodity and financial markets;
|
•
|
Limitations and restrictions contained in the instruments and agreements governing any indebtedness; and
|
•
|
Decreases in export demand due to the imposition of tariffs by foreign governments on ethanol,distillers grains, and soybeans produced in the United States.
|
Product
|
|
Fiscal Year 2019
|
|
Fiscal Year 2018
|
|
Fiscal Year 2017
|
|||
Ethanol
|
|
77
|
%
|
|
77
|
%
|
|
83
|
%
|
Distillers Grains
|
|
19
|
%
|
|
19
|
%
|
|
13
|
%
|
Corn Oil
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
Carbon Dioxide
|
|
< 1%
|
|
|
< 1 %
|
|
|
< 1%
|
|
|
|
Total Renewable Fuel Volume Requirement
|
Portion of Volume Requirement That Can Be Met By Corn-based Ethanol
|
2014
|
Statutory
|
18.15
|
14.40
|
EPA Rule 11/30/2015
|
16.28
|
13.61
|
|
2015
|
Statutory
|
20.50
|
15.00
|
EPA Rule 11/30/2015
|
16.93
|
14.05
|
|
2016
|
Statutory
|
22.25
|
15.00
|
EPA Rule 11/30/2015
|
18.11
|
14.50
|
|
2017
|
Statutory
|
24.00
|
15.00
|
|
EPA Rule 11/30/2016
|
19.28
|
15.00
|
2018
|
Statutory
|
26.00
|
15.00
|
|
EPA Rule 11/30/2017
|
19.29
|
15.00
|
2019
|
Statutory
|
28.00
|
15.00
|
|
EPA Rule 11/30/2018
|
19.92
|
15.00
|
Company
|
Current Capacity
(mmgy)
|
|
Archer Daniels Midland
|
1,716
|
|
POET Biorefining
|
1,711
|
|
Valero Renewable Fuels
|
1,697
|
|
Green Plains Renewable Energy
|
1,111
|
|
Flint Hill Resources LP
|
840
|
|
•
|
A grains area, fermentation area, distillation - evaporation area;
|
•
|
A dryer/energy center area;
|
•
|
A tank farm;
|
•
|
An auxiliary area; and
|
•
|
An administration building.
|
Selling Quarter
|
|
Low Price
|
|
High Price
|
|
Average Price
|
|
# of
Units Traded
|
|||||||
2018 1st
|
|
$
|
14,000
|
|
|
$
|
14,000
|
|
|
$
|
14,000
|
|
|
5
|
|
2018 2nd
|
|
$
|
11,500
|
|
|
$
|
12,000
|
|
|
$
|
11,778
|
|
|
9
|
|
2018 3rd
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2018 4th
|
|
$
|
9,500
|
|
|
$
|
9,985
|
|
|
$
|
9,781
|
|
|
12
|
|
2019 1st
|
|
$
|
9,500
|
|
|
$
|
9,700
|
|
|
$
|
9,600
|
|
|
2
|
|
2019 2nd
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2019 3rd
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2019 4th
|
|
$
|
6,803
|
|
|
$
|
7,212
|
|
|
$
|
7,039
|
|
|
47
|
|
Listing Quarter
|
|
Low Price
|
|
High Price
|
|
Average Price
|
|
# of
Units Listed
|
|||||||
2018 1st
|
|
$
|
13,000
|
|
|
$
|
14,000
|
|
|
$
|
13,650
|
|
|
20
|
|
2018 2nd
|
|
$
|
12,000
|
|
|
$
|
13,750
|
|
|
$
|
13,222
|
|
|
90
|
|
2018 3rd
|
|
$
|
11,000
|
|
|
$
|
11,000
|
|
|
$
|
11,000
|
|
|
10
|
|
2018 4th
|
|
$
|
9,985
|
|
|
$
|
11,800
|
|
|
$
|
11,354
|
|
|
9
|
|
2019 1st
|
|
$
|
9,500
|
|
|
$
|
13,000
|
|
|
$
|
12,300
|
|
|
25
|
|
2019 2nd
|
|
$
|
8,000
|
|
|
$
|
9,800
|
|
|
$
|
8,841
|
|
|
43
|
|
2019 3rd
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2019 4th
|
|
$
|
7,000
|
|
|
$
|
10,000
|
|
|
$
|
8,223
|
|
|
20
|
|
Statement of Operations Data:
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
Revenues
|
|
$
|
260,669,352
|
|
|
$
|
266,858,452
|
|
|
$
|
228,496,827
|
|
|
$
|
222,895,449
|
|
|
$
|
240,695,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cost Goods Sold
|
|
260,633,708
|
|
|
251,670,473
|
|
|
209,241,617
|
|
|
204,014,877
|
|
197,305,291
|
|
197,305,291
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit
|
|
35,644
|
|
|
15,187,979
|
|
|
19,255,210
|
|
|
18,880,572
|
|
|
43,390,002
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Expenses
|
|
6,938,893
|
|
|
6,778,756
|
|
|
5,520,971
|
|
|
5,233,634
|
|
4,714,891
|
|
4,714,891
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Income (Loss)
|
|
(6,903,249
|
)
|
|
8,409,223
|
|
|
13,734,239
|
|
|
13,646,938
|
|
|
38,675,111
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Income (Expense), Net
|
|
304,336
|
|
|
(778,158
|
)
|
|
(309,615
|
)
|
|
(125,143
|
)
|
46,706
|
|
46,706
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income (Loss)
|
|
$
|
(6,598,913
|
)
|
|
$
|
7,631,065
|
|
|
$
|
13,424,624
|
|
|
$
|
13,521,795
|
|
|
$
|
38,721,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted Average Units Outstanding
|
|
14,606
|
|
|
14,606
|
|
|
14,606
|
|
|
14,606
|
|
14,606
|
|
14,606
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income (Loss) Per Unit
|
|
$
|
(452
|
)
|
|
$
|
522
|
|
|
$
|
919
|
|
|
$
|
926
|
|
|
$
|
2,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash Distributions Per Unit
|
|
$
|
100
|
|
|
$
|
950
|
|
|
$
|
1,175
|
|
|
$
|
1,630
|
|
|
$
|
3,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance Sheet Data:
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
Current Assets
|
|
$
|
50,122,788
|
|
|
$
|
46,351,013
|
|
|
$
|
50,139,370
|
|
|
$
|
48,529,843
|
|
|
$
|
48,646,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Property and Equipment
|
|
86,169,079
|
|
|
96,948,671
|
|
|
107,936,389
|
|
|
104,461,078
|
|
|
107,998,425
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Assets
|
|
1,259,770
|
|
|
1,295,192
|
|
|
1,096,237
|
|
|
938,251
|
|
|
823,494
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Assets
|
|
137,551,637
|
|
|
144,594,876
|
|
|
159,171,996
|
|
|
153,929,172
|
|
|
157,468,720
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current Liabilities
|
|
18,821,283
|
|
|
16,941,813
|
|
|
18,007,407
|
|
|
11,676,852
|
|
|
11,997,241
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Long-Term Liabilities
|
|
6,451,671
|
|
|
7,314,867
|
|
|
14,581,758
|
|
|
11,932,063
|
|
|
4,865,236
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Members' Equity
|
|
112,278,683
|
|
|
120,338,196
|
|
|
126,582,831
|
|
|
130,320,257
|
|
|
140,606,243
|
|
|
2019
|
|
2018
|
||||||||||
Statement of Operations Data
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Revenues
|
$
|
260,669,352
|
|
|
100.0
|
|
|
$
|
266,858,452
|
|
|
100.0
|
|
Cost of Goods Sold
|
260,633,708
|
|
|
100.0
|
|
|
251,670,473
|
|
|
94.3
|
|
||
Gross Profit
|
35,644
|
|
|
—
|
|
|
15,187,979
|
|
|
5.7
|
|
||
Operating Expenses
|
6,938,893
|
|
|
2.7
|
|
|
6,778,756
|
|
|
2.5
|
|
||
Operating Income (Loss)
|
(6,903,249
|
)
|
|
(2.7
|
)
|
|
8,409,223
|
|
|
3.2
|
|
||
Other Income (Expense), net
|
304,336
|
|
|
0.1
|
|
|
(778,158
|
)
|
|
(0.3
|
)
|
||
Net Income (Loss)
|
$
|
(6,598,913
|
)
|
|
(2.6
|
)
|
|
$
|
7,631,065
|
|
|
2.9
|
|
|
2019
|
|
2018
|
||||||||
Revenue:
|
Amount
|
% of Total Revenues
|
|
Amount
|
% of Total Revenues
|
||||||
Ethanol production
|
$
|
222,107,998
|
|
85.2
|
%
|
|
$
|
222,847,401
|
|
83.5
|
%
|
Grain trading
|
38,561,354
|
|
14.8
|
|
|
44,011,051
|
|
16.5
|
|
||
Total Revenue
|
$
|
260,669,352
|
|
100.0
|
%
|
|
$
|
266,858,452
|
|
100.0
|
%
|
|
2019
|
|
2018
|
||||||||
Revenue Source
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Ethanol Sales
|
$
|
170,418,067
|
|
76.7
|
%
|
|
$
|
171,669,232
|
|
77.0
|
%
|
Distillers Grains Sales
|
42,940,147
|
|
19.4
|
|
|
42,422,819
|
|
19.1
|
|
||
Corn Oil Sales
|
8,192,603
|
|
3.7
|
|
|
8,020,761
|
|
3.6
|
|
||
CO2 Sales
|
504,237
|
|
0.2
|
|
|
477,355
|
|
0.2
|
|
||
Other Revenue
|
52,944
|
|
—
|
|
|
257,234
|
|
0.1
|
|
||
Total Revenues
|
$
|
222,107,998
|
|
100.0
|
%
|
|
$
|
222,847,401
|
|
100.0
|
%
|
|
2019
|
|
2018
|
||||||||
Revenue Source
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Soybean Sales
|
$
|
38,519,254
|
|
99.9
|
%
|
|
$
|
43,975,501
|
|
99.9
|
%
|
Other Revenue
|
$
|
42,100
|
|
0.1
|
|
|
$
|
35,550
|
|
0.1
|
%
|
Total Revenues
|
$
|
38,561,354
|
|
100.0
|
%
|
|
$
|
44,011,051
|
|
100.0
|
%
|
|
2019
|
|
2018
|
||||||||
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Soybeans
|
$
|
37,595,012
|
|
97.5
|
%
|
|
$
|
42,062,458
|
|
95.6
|
%
|
Total Cost of Goods Sold
|
$
|
37,595,012
|
|
97.5
|
%
|
|
$
|
42,062,458
|
|
95.6
|
%
|
|
2018
|
|
2017
|
||||||||||
Statement of Operations Data
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Revenues
|
$
|
266,858,452
|
|
|
100.0
|
|
|
$
|
228,496,827
|
|
|
100.0
|
|
Cost of Goods Sold
|
251,670,473
|
|
|
94.3
|
|
|
209,241,617
|
|
|
91.6
|
|
||
Gross Profit
|
15,187,979
|
|
|
5.7
|
|
|
19,255,210
|
|
|
8.4
|
|
||
Operating Expenses
|
6,778,756
|
|
|
2.5
|
|
|
5,520,971
|
|
|
2.4
|
|
||
Operating Income
|
8,409,223
|
|
|
3.2
|
|
|
13,734,239
|
|
|
6.0
|
|
||
Other Expense, net
|
(778,158
|
)
|
|
(0.3
|
)
|
|
(309,615
|
)
|
|
(0.1
|
)
|
||
Net Income
|
$
|
7,631,065
|
|
|
2.9
|
|
|
$
|
13,424,624
|
|
|
5.9
|
|
|
2018
|
|
2017
|
||||||||
Revenue:
|
Amount
|
% of Total Revenues
|
|
Amount
|
% of Total Revenues
|
||||||
Ethanol production
|
$
|
222,847,401
|
|
83.5
|
%
|
|
$
|
228,496,827
|
|
100.0
|
%
|
Grain trading
|
44,011,051
|
|
16.5
|
|
|
—
|
|
—
|
|
||
Total Revenue
|
$
|
266,858,452
|
|
100.0
|
%
|
|
$
|
228,496,827
|
|
100.0
|
%
|
|
2018
|
|
2017
|
||||||||
Revenue Source
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Ethanol Sales
|
$
|
171,669,232
|
|
77.0
|
%
|
|
$
|
188,860,886
|
|
82.7
|
%
|
Distillers Grains Sales
|
42,422,819
|
|
19.1
|
|
|
30,886,518
|
|
13.5
|
|
||
Corn Oil Sales
|
8,020,761
|
|
3.6
|
|
|
8,010,124
|
|
3.5
|
|
||
CO2 Sales
|
477,355
|
|
0.2
|
|
|
481,893
|
|
0.2
|
|
||
Other Revenue
|
257,234
|
|
0.1
|
|
|
257,406
|
|
0.1
|
|
||
Total Revenues
|
$
|
222,847,401
|
|
100.0
|
%
|
|
$
|
228,496,827
|
|
100.0
|
%
|
|
2018
|
|
2017
|
||||||||
Revenue Source
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Soybean Sales
|
$
|
43,975,501
|
|
99.9
|
%
|
|
$
|
—
|
|
|
|
Other Revenue
|
$
|
35,550
|
|
0.1
|
|
|
|
|
|||
Total Revenues
|
$
|
44,011,051
|
|
100.0
|
%
|
|
$
|
—
|
|
—
|
%
|
|
2018
|
|
2017
|
||||||||
|
Amount
|
% of Revenues
|
|
Amount
|
% of Revenues
|
||||||
Soybeans
|
$
|
42,062,458
|
|
95.6
|
%
|
|
$
|
—
|
|
—
|
%
|
Total Cost of Goods Sold
|
$
|
42,062,458
|
|
95.6
|
%
|
|
$
|
—
|
|
—
|
%
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Current Assets
|
$
|
50,122,788
|
|
|
$
|
46,351,013
|
|
Current Liabilities
|
18,821,283
|
|
|
16,941,813
|
|
||
Long-term Liabilities
|
6,451,671
|
|
|
7,314,867
|
|
||
Members' Equity
|
112,278,683
|
|
|
120,338,196
|
|
|
|
2019
|
|
2018
|
||||
Net cash provided by operating activities
|
|
$
|
7,951,807
|
|
|
$
|
25,369,114
|
|
Net cash used for investing activities
|
|
(1,677,363
|
)
|
|
(2,064,437
|
)
|
||
Net cash used for financing activities
|
|
(3,478,316
|
)
|
|
(23,463,846
|
)
|
||
Net increase (decrease) in cash & restricted cash
|
|
2,796,128
|
|
|
(159,169
|
)
|
||
Cash & restricted cash, beginning of period
|
|
19,237,992
|
|
|
19,397,161
|
|
||
Cash & restricted cash, end of period
|
|
$
|
22,034,120
|
|
|
$
|
19,237,992
|
|
|
|
2018
|
|
2017
|
||||
Net cash provided by operating activities
|
|
$
|
25,369,114
|
|
|
$
|
21,535,242
|
|
Net cash used for investing activities
|
|
(2,064,437
|
)
|
|
(12,950,173
|
)
|
||
Net cash used for financing activities
|
|
(23,463,846
|
)
|
|
(13,650,819
|
)
|
||
Net decrease in cash & restricted cash
|
|
(159,169
|
)
|
|
(5,065,750
|
)
|
||
Cash & restricted cash, beginning of period
|
|
19,397,161
|
|
|
24,462,911
|
|
||
Cash & restricted cash, end of period
|
|
$
|
19,237,992
|
|
|
$
|
19,397,161
|
|
|
Payment 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
|
$
|
7,475,586
|
|
|
$
|
1,745,062
|
|
|
$
|
5,730,524
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating Lease Obligations
|
7,742,815
|
|
|
2,732,820
|
|
|
4,700,640
|
|
|
309,355
|
|
|
—
|
|
|||||
Purchase Obligations
|
29,543,025
|
|
|
24,682,705
|
|
|
4,860,320
|
|
|
—
|
|
|
—
|
|
|||||
Total Contractual Cash Obligations
|
$
|
44,761,426
|
|
|
$
|
29,160,587
|
|
|
$
|
15,291,484
|
|
|
$
|
309,355
|
|
|
$
|
—
|
|
|
Fiscal Year Ended
|
Fiscal Year Ended
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
September 30, 2018
|
September 30, 2017
|
||||||
Corn Derivative Contracts
|
$
|
(2,035,159
|
)
|
$
|
1,994,778
|
|
$
|
2,003,473
|
|
Ethanol Derivative Contracts
|
$
|
467,160
|
|
(700,074
|
)
|
1,640,292
|
|
||
Natural Gas Derivative Contracts
|
$
|
23,354
|
|
165,590
|
|
205,523
|
|
||
Soybean Derivative Contracts
|
628,652
|
|
3,495,818
|
|
223,409
|
|
|||
Soybean Forward Purchase and Sales Contracts Derivatives
|
1,509,539
|
|
(1,344,332
|
)
|
(327,005
|
)
|
|||
Totals
|
$
|
593,546
|
|
$
|
3,611,780
|
|
$
|
3,745,692
|
|
|
Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)
|
Unit of Measure
|
Hypothetical Adverse Change in Price as of
September 30, 2019
|
Approximate Adverse Change to Income
|
|||||
Natural Gas
|
—
|
|
MMBTU
|
10
|
%
|
|
$
|
—
|
|
Ethanol
|
135,000,000
|
|
Gallons
|
10
|
%
|
|
$
|
21,195,000
|
|
Corn
|
38,923,999
|
|
Bushels
|
10
|
%
|
|
$
|
16,270,232
|
|
DDGs
|
298,385
|
|
Tons
|
10
|
%
|
|
$
|
4,028,198
|
|
Corn Oil
|
28,492,820
|
|
Pounds
|
10
|
%
|
|
$
|
712,321
|
|
Soybeans-Purchase
|
4,382,866
|
|
Bushels
|
10
|
%
|
|
$
|
3,817,476
|
|
Soybeans-Sale
|
4,999,701
|
|
Bushels
|
10
|
%
|
|
$
|
4,414,736
|
|
|
Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)
|
Unit of Measure
|
Hypothetical Adverse Change in Price as of
September 30, 2018
|
Approximate Adverse Change to Income
|
|||||
Natural Gas
|
945,000
|
|
MMBTU
|
10
|
%
|
|
$
|
279,578
|
|
Ethanol
|
135,000,000
|
|
Gallons
|
10
|
%
|
|
$
|
17,010,000
|
|
Corn
|
39,459,275
|
|
Bushels
|
10
|
%
|
|
$
|
12,676,292
|
|
DDGs
|
303,665
|
|
Tons
|
10
|
%
|
|
$
|
4,099,478
|
|
Corn Oil
|
27,658,328
|
|
Pounds
|
10
|
%
|
|
$
|
732,946
|
|
Soybeans - purchase
|
3,653,888
|
|
Bushels
|
10
|
%
|
|
$
|
2,833,590
|
|
Soybeans - Sale
|
4,861,473
|
|
Bushels
|
10
|
%
|
|
$
|
3,842,994
|
|
ASSETS
|
September 30, 2019
|
|
September 30, 2018
|
||||
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash
|
$
|
15,670,696
|
|
|
$
|
17,989,013
|
|
Restricted cash
|
6,363,424
|
|
|
1,248,979
|
|
||
Trade accounts receivable
|
12,824,985
|
|
|
9,539,007
|
|
||
Miscellaneous receivables
|
1,380,649
|
|
|
519,721
|
|
||
Inventories
|
13,439,808
|
|
|
16,552,600
|
|
||
Prepaid and other current assets
|
130,464
|
|
|
170,953
|
|
||
Futures & options derivatives
|
221,947
|
|
|
281,438
|
|
||
Forward purchase/sales derivatives
|
90,815
|
|
|
49,302
|
|
||
Total current assets
|
50,122,788
|
|
|
46,351,013
|
|
||
|
|
|
|
||||
Property, Plant, and Equipment
|
|
|
|
||||
Land and land improvements
|
22,507,849
|
|
|
22,507,849
|
|
||
Plant and equipment
|
156,159,960
|
|
|
158,084,612
|
|
||
Building
|
7,018,061
|
|
|
7,018,061
|
|
||
Office equipment
|
915,758
|
|
|
814,842
|
|
||
Vehicles
|
31,928
|
|
|
31,928
|
|
||
Construction in process
|
1,031,021
|
|
|
48,429
|
|
||
|
187,664,577
|
|
|
188,505,721
|
|
||
Less accumulated depreciation
|
(101,495,498
|
)
|
|
(91,557,050
|
)
|
||
Property, Plant, and Equipment, Net
|
86,169,079
|
|
|
96,948,671
|
|
||
|
|
|
|
||||
Other Assets
|
|
|
|
||||
Investment
|
1,259,770
|
|
|
1,295,192
|
|
||
Total other assets
|
1,259,770
|
|
|
1,295,192
|
|
||
|
|
|
|
||||
Total Assets
|
$
|
137,551,637
|
|
|
$
|
144,594,876
|
|
LIABILITIES AND MEMBERS' EQUITY
|
September 30, 2019
|
|
September 30, 2018
|
||||
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
2,712,760
|
|
|
$
|
2,711,578
|
|
Accounts payable - grain
|
10,624,278
|
|
|
9,597,822
|
|
||
Accrued expenses
|
1,249,467
|
|
|
1,289,929
|
|
||
Due to broker
|
1,589,324
|
|
|
—
|
|
||
Futures & options derivatives
|
1,045,113
|
|
|
274,118
|
|
||
Forward purchase/sales derivatives
|
171,770
|
|
|
1,639,795
|
|
||
Current maturities of long-term debt
|
1,428,571
|
|
|
1,428,571
|
|
||
Total current liabilities
|
18,821,283
|
|
|
16,941,813
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
||||
Long-term debt, net of current maturities
|
5,297,151
|
|
|
7,314,867
|
|
||
Liability for railcar rehabilitation costs
|
1,154,520
|
|
|
—
|
|
||
Total long-term liabilities
|
6,451,671
|
|
|
7,314,867
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Note 11)
|
|
|
|
||||
|
|
|
|
||||
Members’ Equity
|
|
|
|
||||
Member contributions net of cost of raising capital, 14,606 units authorized, issued and outstanding
|
70,912,213
|
|
|
70,912,213
|
|
||
Retained earnings
|
41,366,470
|
|
|
49,425,983
|
|
||
Total members' equity
|
112,278,683
|
|
|
120,338,196
|
|
||
|
|
|
|
||||
Total Liabilities and Members’ Equity
|
$
|
137,551,637
|
|
|
$
|
144,594,876
|
|
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
||||||
|
|
September 30, 2019
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||
|
|
|
|
|
|
|
||||||
Revenues
|
|
$
|
260,669,352
|
|
|
$
|
266,858,452
|
|
|
$
|
228,496,827
|
|
|
|
|
|
|
|
|
||||||
Cost of Goods Sold
|
|
260,633,708
|
|
|
251,670,473
|
|
|
209,241,617
|
|
|||
|
|
|
|
|
|
|
||||||
Gross Profit
|
|
35,644
|
|
|
15,187,979
|
|
|
19,255,210
|
|
|||
|
|
|
|
|
|
|
||||||
Operating Expenses
|
|
6,938,893
|
|
|
6,778,756
|
|
|
5,520,971
|
|
|||
|
|
|
|
|
|
|
||||||
Operating Income (Loss)
|
|
(6,903,249
|
)
|
|
8,409,223
|
|
|
13,734,239
|
|
|||
|
|
|
|
|
|
|
||||||
Other Income (Expense)
|
|
|
|
|
|
|
||||||
Interest income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Interest expense
|
|
(358,950
|
)
|
|
(858,725
|
)
|
|
(362,188
|
)
|
|||
Miscellaneous income
|
|
663,286
|
|
|
80,567
|
|
|
52,573
|
|
|||
Total
|
|
304,336
|
|
|
(778,158
|
)
|
|
(309,615
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net Income (Loss)
|
|
$
|
(6,598,913
|
)
|
|
$
|
7,631,065
|
|
|
$
|
13,424,624
|
|
|
|
|
|
|
|
|
||||||
Weight Average Units Outstanding - basic and diluted
|
|
14,606
|
|
|
14,606
|
|
|
14,606
|
|
|||
|
|
|
|
|
|
|
||||||
Net Income (Loss) Per Unit - basic and diluted
|
|
$
|
(452
|
)
|
|
$
|
522
|
|
|
$
|
919
|
|
|
|
|
|
|
|
|
||||||
Distributions Per Unit
|
|
$
|
100
|
|
|
$
|
950
|
|
|
$
|
1,175
|
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||
|
|
|
|
|
|
||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(6,598,913
|
)
|
|
$
|
7,631,065
|
|
|
$
|
13,424,624
|
|
Adjustments to reconcile net income (loss) to net cash provided by operations:
|
|
|
|
|
|
||||||
Depreciation
|
11,242,289
|
|
|
11,624,076
|
|
|
10,876,179
|
|
|||
Change in fair value of commodity derivative instruments
|
(679,052
|
)
|
|
1,562,186
|
|
|
(305,963
|
)
|
|||
Loss (gain) on disposal of fixed asset
|
1,218
|
|
|
(9,560
|
)
|
|
(6,600
|
)
|
|||
Loss of Abandonment of Equipment - ethanol division
|
1,197,917
|
|
|
—
|
|
|
—
|
|
|||
Non-cash dividend income
|
—
|
|
|
(198,955
|
)
|
|
(157,986
|
)
|
|||
Investment redemption
|
35,422
|
|
|
—
|
|
|
—
|
|
|||
Change in operating assets and liabilities:
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Trade accounts receivables
|
(3,285,978
|
)
|
|
5,467,086
|
|
|
(3,431,246
|
)
|
|||
Miscellaneous receivable
|
(860,928
|
)
|
|
(135,213
|
)
|
|
(248,991
|
)
|
|||
Inventories
|
3,112,792
|
|
|
(1,947,625
|
)
|
|
(2,511,506
|
)
|
|||
Prepaid and other current assets
|
40,489
|
|
|
82,838
|
|
|
(4,792
|
)
|
|||
Accounts payable
|
16,713
|
|
|
165,294
|
|
|
1,511,712
|
|
|||
Accounts payable-corn
|
1,026,456
|
|
|
1,219,727
|
|
|
3,616,548
|
|
|||
Accrued expenses
|
(40,462
|
)
|
|
(91,805
|
)
|
|
(1,226,737
|
)
|
|||
Accrued railcar rehabilitation costs
|
1,154,520
|
|
|
—
|
|
|
—
|
|
|||
Due to Broker
|
1,589,324
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by operating activities
|
7,951,807
|
|
|
25,369,114
|
|
|
21,535,242
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Capital expenditures
|
—
|
|
|
(118,953
|
)
|
|
(571,366
|
)
|
|||
Payments for construction in process
|
(3,981,163
|
)
|
|
(1,955,484
|
)
|
|
(12,385,407
|
)
|
|||
Proceeds from sale of equipment
|
3,800
|
|
|
10,000
|
|
|
6,600
|
|
|||
Development agreement funds received for capital expenditures
|
2,300,000
|
|
|
—
|
|
|
—
|
|
|||
Net cash used for investing activities
|
(1,677,363
|
)
|
|
(2,064,437
|
)
|
|
(12,950,173
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Distributions paid
|
(1,460,600
|
)
|
|
(13,875,700
|
)
|
|
(17,162,050
|
)
|
|||
Proceeds from line of credit
|
5,541,948
|
|
|
10,349,708
|
|
|
—
|
|
|||
Repayment on line of credit
|
(5,541,948
|
)
|
|
(10,349,708
|
)
|
|
—
|
|
|||
Proceeds from long-term debt
|
—
|
|
|
3,524,048
|
|
|
6,475,952
|
|
|||
Payments on long-term debt
|
(2,017,716
|
)
|
|
(13,112,194
|
)
|
|
(2,964,721
|
)
|
|||
Net cash used for financing activities
|
(3,478,316
|
)
|
|
(23,463,846
|
)
|
|
(13,650,819
|
)
|
|||
|
|
|
|
|
|
||||||
Net Increase (Decrease) in Cash and Restricted Cash
|
2,796,128
|
|
|
(159,169
|
)
|
|
(5,065,750
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and Restricted Cash – Beginning of Period
|
19,237,992
|
|
|
19,397,161
|
|
|
24,462,911
|
|
|
|
|
|
|
|
||||||
Cash and Restricted Cash – End of Period
|
$
|
22,034,120
|
|
|
$
|
19,237,992
|
|
|
$
|
19,397,161
|
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||
|
|
|
|
|
|
||||||
Reconciliation of Cash and Restricted Cash
|
|
|
|
|
|
||||||
Cash - Balance Sheet
|
$
|
15,670,696
|
|
|
$
|
17,989,013
|
|
|
$
|
18,995,755
|
|
Restricted Cash - Balance Sheet
|
6,363,424
|
|
|
1,248,979
|
|
|
401,406
|
|
|||
Cash and Restricted Cash
|
$
|
22,034,120
|
|
|
$
|
19,237,992
|
|
|
$
|
19,397,161
|
|
|
|
|
|
|
|
||||||
Supplemental Cash Flow Information
|
|
|
|
|
|
||||||
Interest paid
|
$
|
436,196
|
|
|
$
|
883,972
|
|
|
$
|
613,855.76
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
|
||||||
Construction costs included in accrued expenses and accounts payable
|
$
|
12,447
|
|
|
$
|
23,643
|
|
|
$
|
1,461,282
|
|
Construction period interest capitalized in property, plant and equipment
|
$
|
67,231
|
|
|
$
|
14,912
|
|
|
$
|
263,261
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
Member
|
|
Retained
|
|
||||
|
|
Contributions
|
|
Earnings
|
|
||||
Balance - September 30, 2016
|
|
$
|
70,912,213
|
|
|
$
|
59,408,044
|
|
|
|
|
|
|
|
|
||||
Net income for year ended September 30, 2017
|
|
—
|
|
|
13,424,624
|
|
|
||
|
|
|
|
|
|
||||
Members Distributions
|
|
—
|
|
|
(17,162,050
|
)
|
|
||
|
|
|
|
|
|
||||
Balance - September 30, 2017
|
|
70,912,213
|
|
|
55,670,618
|
|
|
||
|
|
|
|
|
|
||||
Net income for year ended September 30, 2018
|
|
—
|
|
|
7,631,065
|
|
|
||
|
|
|
|
|
|
||||
Members Distributions
|
|
—
|
|
|
(13,875,700
|
)
|
|
||
|
|
|
|
|
|
||||
Balance - September 30, 2018
|
|
70,912,213
|
|
|
49,425,983
|
|
|
||
|
|
|
|
|
|
||||
Net loss for year ended September 30, 2019
|
|
—
|
|
|
(6,598,913
|
)
|
|
||
|
|
|
|
|
|
||||
Members Distributions
|
|
—
|
|
|
(1,460,600
|
)
|
|
||
|
|
|
|
|
|
||||
Balance - September 30, 2019
|
|
$
|
70,912,213
|
|
|
$
|
41,366,470
|
|
|
•
|
Ethanol Production Division. Based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plant, including the production and sale of ethanol and its co-products, are aggregated into one financial reporting segment.
|
•
|
Trading Division. During 2017, the Company constructed a grain loading facility within the Company's single site to buy, hold and sell inventories of agricultural grains, primarily soybeans. The Company performs no additional processing of these grains, unlike the corn inventory the Company holds and uses in ethanol production. The activities of buying, selling and holding of grains other than for ethanol and co-product production comprise this financial reporting segment.
|
|
Minimum years
|
Maximum years
|
Land improvements
|
15
|
20
|
Office building
|
10
|
40
|
Office equipment
|
5
|
5
|
Process and grain handling equipment
|
10
|
20
|
Plant buildings
|
15
|
40
|
•
|
Ethanol. The Company sells its ethanol via a marketing agreement with Murex, LLC. Murex sells one hundred percent of the Company's ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Murex and the Company. Murex then provides a schedule of deliveries required and an order for each rail car or tankers needed to fulfill their commitment with the end user. These are individual performance obligations of the Company. The marketing agreement calls for control and title to pass when the delivery vehicle is filled. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and insurance.
|
•
|
Distillers grains. The Company engages another third-party marketing company, CHS, Inc. to sell one hundred percent of the distillers grains it produces at the plant. The process for selling the distillers grains is like that of ethanol, except that CHS takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales.
|
•
|
Distillers corn oil (corn oil). The Company sells its production of corn oil directly to commercial customers. The customer is provided with a delivery schedule and pick up orders representing performance obligations are fulfilled when the customer's driver picks up the scheduled load. The price is agreed upon at the time each contract is made, and the Company recognizes revenue at the time of delivery at that price.
|
•
|
Carbon dioxide. The Company sells a portion of the carbon dioxide it produces to a customer that maintains a plant on-site for a set price per ton. Delivery is defined as transference of the gas from our stream to their plant.
|
•
|
Soybeans and other grains. The Company sells soybeans exclusively to commercial mills, processors or grain traders. Contracts are negotiated directly with the parties at prices based on negotiated prices.
|
•
|
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 used to measure fair values to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
|
|
Ethanol Production
|
|
Grain Trading
|
|
Total
|
||||||
Revenues from contracts with customers under ASC Topic 606
|
|
|
|
|
|
||||||
Ethanol
|
$
|
170,418,067
|
|
|
$
|
—
|
|
|
$
|
170,418,067
|
|
Distillers' grains
|
42,940,147
|
|
|
—
|
|
|
42,940,147
|
|
|||
Corn Oil
|
8,192,603
|
|
|
—
|
|
|
8,192,603
|
|
|||
Carbon Dioxide
|
504,237
|
|
|
—
|
|
|
504,237
|
|
|||
Other
|
52,944
|
|
|
42,100
|
|
|
95,044
|
|
|||
Total revenues from contracts with customers
|
222,107,998
|
|
|
42,100
|
|
|
222,150,098
|
|
|||
|
|
|
|
|
|
||||||
Revenues from contracts accounted for as derivatives under ASC Topic 815 (1)
|
|
|
|
|
|
||||||
Soybeans and other grains
|
—
|
|
|
38,519,254
|
|
|
38,519,254
|
|
|||
Total revenues from contracts accounted for as derivatives
|
—
|
|
|
38,519,254
|
|
|
38,519,254
|
|
|||
Total Revenues
|
$
|
222,107,998
|
|
|
$
|
38,561,354
|
|
|
$
|
260,669,352
|
|
|
2019
|
|
2018
|
||||
Financial statement basis of assets
|
$
|
137,551,637
|
|
|
$
|
144,594,876
|
|
Organization and start-up costs
|
1,976,610
|
|
|
1,976,610
|
|
||
Book to tax depreciation and amortization
|
(69,437,507
|
)
|
|
(78,332,840
|
)
|
||
Book to tax derivative instruments
|
(234,875
|
)
|
|
(330,740
|
)
|
||
Capitalized inventory
|
140,000
|
|
|
804,738
|
|
||
Income tax basis of assets
|
$
|
69,995,865
|
|
|
$
|
68,712,644
|
|
|
|
|
|
||||
Financial statement basis of liabilities
|
$
|
25,272,954
|
|
|
$
|
24,256,680
|
|
Book to tax derivative instruments
|
(1,058,041
|
)
|
|
(1,913,913
|
)
|
||
Accrued employee benefits
|
(425,997
|
)
|
|
(511,753
|
)
|
||
Accrued Rail Car Rehabilitation Costs
|
(1,154,520
|
)
|
|
—
|
|
||
Income tax basis of liabilities
|
$
|
22,634,396
|
|
|
$
|
21,831,014
|
|
Date Declared
|
|
Distribution Declared Per Unit
|
|
Total Distribution Amount
|
|
Month Distribution Paid
|
||||
May 30, 2019
|
|
$
|
100
|
|
|
$
|
1,460,600
|
|
|
May 2019
|
Totals
|
|
$
|
100
|
|
|
$
|
1,460,600
|
|
|
|
Date Declared
|
|
Distribution Declared Per Unit
|
|
Total Distribution Amount
|
|
Month Distribution Paid
|
||||
November 21, 2017
|
|
$
|
400
|
|
|
$
|
5,842,400
|
|
|
December 2017
|
February 20, 2018
|
|
200
|
|
|
2,921,200
|
|
|
February 2018
|
||
May 15, 2018
|
|
100
|
|
|
1,460,600
|
|
|
June 2018
|
||
August 21, 2018
|
|
250
|
|
|
3,651,500
|
|
|
August 2018
|
||
Totals
|
|
$
|
950
|
|
|
$
|
13,875,700
|
|
|
|
Date Declared
|
|
Distribution Declared Per Unit
|
|
Total Distribution Amount
|
|
Month Distribution Paid
|
||||
November 15, 2016
|
|
$
|
600
|
|
|
$
|
8,763,600
|
|
|
December 2016
|
February 14, 2017
|
|
200
|
|
|
2,921,200
|
|
|
February 2017
|
||
May 16, 2017
|
|
275
|
|
|
4,016,650
|
|
|
May 2017
|
||
August 14, 2017
|
|
100
|
|
|
1,460,600
|
|
|
August 2017
|
||
Totals
|
|
$
|
1,175
|
|
|
$
|
17,162,050
|
|
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Ethanol Division:
|
|
|
|
||||
Raw materials
|
$
|
5,457,534
|
|
|
$
|
7,053,371
|
|
Work in progress
|
1,639,946
|
|
|
1,299,716
|
|
||
Finished goods
|
1,657,065
|
|
|
1,929,177
|
|
||
Spare parts
|
3,259,165
|
|
|
2,927,438
|
|
||
Ethanol Division Subtotal
|
$
|
12,013,710
|
|
|
$
|
13,209,702
|
|
Trading Division:
|
|
|
|
||||
Grain inventory
|
$
|
1,426,098
|
|
|
$
|
3,342,898
|
|
Trading Division Subtotal
|
$
|
1,426,098
|
|
|
$
|
3,342,898
|
|
Total Inventories
|
$
|
13,439,808
|
|
|
$
|
16,552,600
|
|
Instrument
|
Balance Sheet Location
|
|
Assets
|
|
Liabilities
|
||||
|
|
|
|
|
|
||||
Ethanol futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
—
|
|
|
$
|
81,900
|
|
Corn futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
—
|
|
|
$
|
963,213
|
|
Soybean futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
221,947
|
|
|
$
|
—
|
|
Soybean forward purchase and sales contracts
|
Forward Purchase/Sales Derivatives
|
|
$
|
90,815
|
|
|
$
|
171,770
|
|
Instrument
|
Balance Sheet Location
|
|
Assets
|
|
Liabilities
|
||||
Ethanol futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
—
|
|
|
$
|
118,062
|
|
Corn futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
—
|
|
|
$
|
156,056
|
|
Soybean futures and options contracts
|
Futures & Options Derivatives
|
|
$
|
281,438
|
|
|
$
|
—
|
|
Soybean forward purchase contracts
|
Forward Purchase/Sale Derivatives
|
|
$
|
49,302
|
|
|
$
|
1,639,795
|
|
Instrument
|
Statement of Operations Location
|
Amount
|
||
Corn Futures and Options Contracts
|
Cost of Goods Sold
|
$
|
(2,035,159
|
)
|
Ethanol Futures and Options Contracts
|
Revenues
|
467,160
|
|
|
Natural Gas Futures and Options Contracts
|
Cost of Goods Sold
|
23,354
|
|
|
Soybean Futures and Options Contracts
|
Cost of Goods Sold
|
628,652
|
|
|
Soybean Forward Purchase and Sales Contracts
|
Cost of Goods Sold
|
1,509,539
|
|
|
Totals
|
|
$
|
593,546
|
|
Instrument
|
Statement of Operations Location
|
Amount
|
||
Corn Futures and Options Contracts
|
Cost of Goods Sold
|
$
|
1,994,778
|
|
Ethanol Futures and Options Contracts
|
Revenues
|
(700,074
|
)
|
|
Natural Gas Futures and Options Contracts
|
Cost of Goods Sold
|
165,590
|
|
|
Soybean Futures and Options Contracts
|
Cost of Goods Sold
|
3,495,818
|
|
|
Soybean Forward Purchase Contracts
|
Cost of Goods Sold
|
(1,344,332
|
)
|
|
Totals
|
|
$
|
3,611,780
|
|
Instrument
|
Statement of Operations Location
|
Amount
|
||
Corn Futures and Options Contracts
|
Cost of Goods Sold
|
$
|
2,003,473
|
|
Ethanol Futures and Options Contracts
|
Revenues
|
1,640,292
|
|
|
Natural Gas Futures and Options Contracts
|
Cost of Goods Sold
|
205,523
|
|
|
Soybeans Futures and Options Contracts
|
Cost of Goods Sold
|
223,409
|
|
|
Soybean Forward Purchase Contracts
|
Cost of Goods Sold
|
(327,005
|
)
|
|
Totals
|
|
$
|
3,745,692
|
|
Derivatives
|
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Corn Futures and Options Contracts
|
$
|
(963,213
|
)
|
$
|
(963,213
|
)
|
$
|
2,685,231
|
|
$
|
(3,648,444
|
)
|
$
|
—
|
|
Ethanol Futures and Options Contracts
|
$
|
(81,900
|
)
|
$
|
(81,900
|
)
|
$
|
(81,900
|
)
|
$
|
—
|
|
$
|
—
|
|
Soybean Futures and Options Contracts
|
$
|
221,947
|
|
$
|
221,947
|
|
$
|
234,875
|
|
$
|
(12,924
|
)
|
$
|
—
|
|
Soybean Forward Purchase Contracts
|
$
|
(80,955
|
)
|
$
|
(80,955
|
)
|
$
|
—
|
|
$
|
(80,955
|
)
|
$
|
—
|
|
Soybean Inventory
|
$
|
1,426,098
|
|
$
|
1,426,098
|
|
$
|
—
|
|
$
|
1,426,098
|
|
$
|
—
|
|
Derivatives
|
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Corn Futures and Options Contracts
|
$
|
(156,056
|
)
|
$
|
(156,056
|
)
|
$
|
(164,625
|
)
|
$
|
8,569
|
|
$
|
—
|
|
Ethanol Futures and Options Contracts
|
$
|
(118,062
|
)
|
$
|
(118,062
|
)
|
$
|
(118,062
|
)
|
$
|
—
|
|
$
|
—
|
|
Soybean Futures and Options Contracts
|
$
|
281,438
|
|
$
|
281,438
|
|
$
|
281,438
|
|
$
|
—
|
|
$
|
—
|
|
Soybean Forward Purchase Contracts
|
$
|
(1,590,493
|
)
|
$
|
(1,590,493
|
)
|
$
|
—
|
|
$
|
(1,590,493
|
)
|
$
|
—
|
|
Soybean Inventory
|
$
|
3,342,898
|
|
$
|
3,342,898
|
|
$
|
—
|
|
$
|
3,342,898
|
|
$
|
—
|
|
Grain Load Out Facility Loan
|
$
|
6,725,722
|
|
Less amounts due within one year
|
1,428,571
|
|
|
Net long-term debt
|
$
|
5,297,151
|
|
October 1, 2019 to September 30, 2020
|
1,428,571
|
|
|
October 1, 2020 to September 30, 2021
|
1,428,571
|
|
|
October 1, 2021 to September 30, 2022
|
1,428,571
|
|
|
October 1, 2022 to September 30, 2023
|
2,440,009
|
|
|
Total long-term debt
|
$
|
6,725,722
|
|
|
|
Total
|
||
October 1, 2019 to September 30, 2020
|
|
2,732,820
|
|
|
October 1, 2020 to September 30, 2021
|
|
2,732,820
|
|
|
October 1, 2021 to September 30, 2022
|
|
1,967,820
|
|
|
October 1, 2022 to September 30, 2023
|
|
309,355
|
|
|
Total minimum lease commitments
|
|
$
|
7,742,815
|
|
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Revenue:
|
|
|
|
||||
Ethanol production
|
$
|
222,107,998
|
|
|
$
|
222,847,401
|
|
Grain trading
|
$
|
38,561,354
|
|
|
$
|
44,011,051
|
|
Total Revenue
|
$
|
260,669,352
|
|
|
$
|
266,858,452
|
|
|
|
|
|
||||
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Gross Profit (Loss):
|
|
|
|
||||
Ethanol production
|
$
|
(930,698
|
)
|
|
$
|
13,239,386
|
|
Grain trading
|
$
|
966,342
|
|
|
$
|
1,948,593
|
|
Total Gross Profit
|
$
|
35,644
|
|
|
$
|
15,187,979
|
|
|
|
|
|
||||
|
Fiscal Year Ended
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Operating Income (Loss):
|
|
|
|
||||
Ethanol production
|
$
|
(6,600,619
|
)
|
|
$
|
7,234,593
|
|
Grain trading
|
$
|
(302,630
|
)
|
|
$
|
1,174,630
|
|
Total Operating Income (Loss)
|
$
|
(6,903,249
|
)
|
|
$
|
8,409,223
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Grain Inventories:
|
|
|
|
||||
Ethanol production
|
$
|
5,457,534
|
|
|
$
|
7,053,371
|
|
Grain trading
|
$
|
1,426,098
|
|
|
$
|
3,342,898
|
|
Total Grain Inventories
|
$
|
6,883,632
|
|
|
$
|
10,396,269
|
|
|
|
|
|
||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Total Assets:
|
|
|
|
||||
Ethanol production
|
$
|
124,310,575
|
|
|
$
|
128,960,169
|
|
Grain trading
|
$
|
13,241,062
|
|
|
$
|
15,634,707
|
|
Total Assets
|
$
|
137,551,637
|
|
|
$
|
144,594,876
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Fiscal year ended September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
50,134,468
|
|
|
$
|
64,371,953
|
|
|
$
|
63,665,456
|
|
|
$
|
82,497,475
|
|
Gross profit (loss)
|
(860,393
|
)
|
|
1,964,202
|
|
|
1,078,038
|
|
|
(2,146,203
|
)
|
||||
Operating income (loss)
|
(2,601,170
|
)
|
|
28,308
|
|
|
(513,297
|
)
|
|
(3,817,090
|
)
|
||||
Net loss
|
(2,670,045
|
)
|
|
(61,461
|
)
|
|
(5,727
|
)
|
|
(3,861,680
|
)
|
||||
Basic and diluted loss per unit
|
$
|
(183
|
)
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(265
|
)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Fiscal year ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
55,855,489
|
|
|
$
|
65,712,336
|
|
|
$
|
71,197,328
|
|
|
$
|
74,093,297
|
|
Gross profit
|
3,401,352
|
|
|
3,142,752
|
|
|
4,112,343
|
|
|
4,531,533
|
|
||||
Operating income
|
1,762,604
|
|
|
1,455,485
|
|
|
2,245,623
|
|
|
2,945,516
|
|
||||
Net income
|
1,604,508
|
|
|
1,248,869
|
|
|
2,013,668
|
|
|
2,764,025
|
|
||||
Basic and diluted earnings per unit
|
$
|
110
|
|
|
$
|
85
|
|
|
$
|
138
|
|
|
$
|
189
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Fiscal year ended September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
58,054,764
|
|
|
$
|
59,473,502
|
|
|
$
|
50,900,700
|
|
|
$
|
60,067,861
|
|
Gross profit
|
8,604,588
|
|
|
4,455,502
|
|
|
253,179
|
|
|
5,941,941
|
|
||||
Operating income (loss)
|
7,417,831
|
|
|
3,020,636
|
|
|
(1,258,167
|
)
|
|
4,553,939
|
|
||||
Net income (loss)
|
7,298,037
|
|
|
2,901,298
|
|
|
(1,237,591
|
)
|
|
4,462,880
|
|
||||
Basic and diluted earnings (loss) per unit
|
$
|
500
|
|
|
$
|
199
|
|
|
$
|
(85
|
)
|
|
$
|
487
|
|
(1)
|
Financial Statements
|
(2)
|
Financial Statement Schedules
|
Exhibit No.
|
Exhibit
|
|
Filed Herewith
|
|
Incorporated by Reference
|
3.1
|
|
|
|
Exhibit 3.1 to the registrant's registration statement on Form SB-2 (Commission File 333-131749) filed on February 10, 2006.
|
|
3.1A
|
|
|
|
Exhibit 3.1A to the registrant's registration statement on Form SB-2 (Commission File 333-131749) filed on February 10, 2006.
|
|
3.2
|
|
|
|
Exhibit 3.2 to the registrant's registration statement on Form SB-2 (Commission File 333-131749) filed on February 10, 2006.
|
|
4.1
|
|
|
|
Exhibit 4.2 to the registrant's registration statement on Form SB-2 (Commission File 333-131749) filed on February 10, 2006.
|
|
10.1
|
|
|
|
Exhibit 10.19 to the registrant's Form 10-KSB filed with the Commission on December 22, 2006.
|
|
10.2
|
|
|
|
Exhibit 10.21 to the registrant's Form 10-KSB filed with the Commission on December 22, 2006.
|
|
10.3
|
|
|
|
Exhibit 10.25 to the registrant's Form 10-KSB filed with the Commission on December 22, 2006.
|
|
10.4
|
|
|
|
Exhibit 10.29 to the registrant's Form 10-QSB filed with the Commission on February 14, 2007.
|
|
10.5
|
|
|
|
Exhibit 10.32 to the registrant's Form 10-QSB filed with the Commission on May 15, 2007.
|
|
10.6
|
|
|
|
Exhibit 10.33 to the registrant's Form 10-QSB filed with the Commission on May 15, 2007.
|
|
10.7
|
|
|
|
Exhibit 10.34 to the registrant's Form 10-QSB filed with the Commission on August 3, 2007.
|
|
10.8
|
|
|
|
Exhibit 10.37 to the registrant's Form 10-KSB filed with the Commission on December 17, 2007.
|
10.9
|
|
|
|
Exhibit 10.1 to the registrant's Form 10-QSB filed with the Commission on August 14, 2008
|
|
10.10
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on July 7, 2009.
|
|
10.11
|
|
|
|
Exhibit 10.6 to the registrant's Form 10-K filed with the Commission on December 28, 2009.
|
|
10.12
|
|
|
|
Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on May 14, 2010.
|
|
10.13
|
|
|
|
Exhibit 10.2 to the registrant's Form 10-Q filed with the Commission on May 14, 2010.
|
|
10.14
|
|
|
|
Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on August 12, 2010.
|
|
10.15
|
|
|
|
Exhibit 10.35 to the registrant's Form 10-K filed with the Commission on December 13, 2011
|
|
10.16
|
|
|
|
Exhibit 10.36 to the registrant's Form 10-K filed with the Commission on December 13, 2011
|
|
10.17
|
|
|
|
Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
|
10.18
|
|
|
|
Exhibit 10.2 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
|
10.19
|
|
|
|
Exhibit 10.3 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
|
10.20
|
|
|
|
Exhibit 10.4 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
|
10.21
|
|
|
|
Exhibit 10.6 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
10.22
|
|
|
|
Exhibit 10.7 to the registrant's Form 10-Q filed with the Commission on August 7, 2013
|
|
10.23
|
|
|
|
|
Exhibit 10.39 to the registrant's Form10-K filed with the Commission on November 27, 2013.
|
10.24
|
|
|
|
Exhibit 10.40 to the registrant's Form10-K filed with the Commission on November 27, 2013.
|
|
10.25
|
|
|
|
Exhibit 10.1 to the registrant's Form10-Q filed with the Commission on May 6, 2014.
|
|
10.26
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on April 2, 2015.
|
|
10.27
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on April 23, 2015.
|
|
10.28
|
|
|
|
Exhibit 10.1 to the registrant's Form10-Q filed with the Commission on May 5, 2015.
|
|
10.29
|
|
|
|
Exhibit 10.1 to the registrant's Form10-Q filed with the Commission on August 4, 2015.
|
|
10.30
|
|
|
|
Exhibit 10.3 to the registrant's Form10-Q filed with the Commission on August 4, 2015.
|
|
10.31
|
|
|
|
Exhibit 10.1 to the registrant's Form10-Q filed with the Commission on May 9, 2016.
|
|
10.32
|
|
|
|
Exhibit 10.2 to the registrant's Form10-Q filed with the Commission on May 9, 2016.
|
|
10.33
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on September 9, 2016
|
|
10.34
|
|
|
|
Exhibit 99.2 to the registrant's Form 8-K filed with the Commission on September 9, 2016
|
|
10.35
|
|
|
|
Exhibit 99.3 to the registrant's Form 8-K filed with the Commission on September 9, 2016
|
|
10.36
|
|
|
|
Exhibit 99.4 to the registrant's Form 8-K filed with the Commission on September 9, 2016
|
|
10.37
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on November 7, 2016
|
10.38
|
|
|
|
Exhibit 10.43 to the registrant's Form10-K filed with the Commission on November 22, 2016.
|
|
10.39
|
|
|
|
Exhibit 10.1 to the registrant's Form10-Q filed with the Commission on May 8, 2017.
|
|
10.40
|
|
|
|
Exhibit 10.2 to the registrant's Form10-Q filed with the Commission on May 8, 2017.
|
|
10.41
|
|
|
|
Exhibit 10.3 to the registrant's Form10-Q filed with the Commission on May 8, 2017.
|
|
10.42
|
|
|
|
Exhibit 10.4 to the registrant's Form10-Q filed with the Commission on May 8, 2017.
|
|
10.43
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on November 29, 2017
|
|
10.44
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on January 30, 2018
|
|
10.45
|
|
|
|
Exhibit 99.2 to the registrant's Form 8-K filed with the Commission on January 30, 2018
|
|
10.46
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on February 28, 2018
|
|
10.47
|
|
|
|
Exhibit 10.47 to the registrant's Form 10-K filed with the Commission on November 21, 2018
|
|
10.48
|
|
|
|
Exhibit 10.48 to the registrant's Form 10-K filed with the Commission on November 21, 2018
|
|
10.49
|
|
|
|
Exhibit 99.1 to the registrant's Form 8-K filed with the Commission on March 8, 2019
|
|
10.50
|
|
|
|
Exhibit 99.2 to the registrant's Form 8-K filed with the Commission on March 8, 2019
|
|
10.51
|
|
X
|
|
|
|
14.1
|
|
|
|
Exhibit 14.1 to the registrant's Form 10-K filed with the Commission on December 13, 2012
|
|
31.1
|
|
X
|
|
|
|
31.2
|
|
X
|
|
|
|
32.1
|
|
X
|
|
|
|
32.2
|
|
X
|
|
|
101
|
The following financial information from Cardinal Ethanol, LLC's Annual Report for the Fiscal Year Ended September 30, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of September 30, 2019 and September 30, 2018, (ii) Condensed Statements of Operations for fiscal years ended September 30, 2019, 2018 and 2017, (iii) Statements of Cash Flows for the fiscal years ended September 30, 2019, 2018, and 2017, (iv) Statements of Changes in Members' Equity, and (iv) the Notes to Financial Statements.**
|
|
|
|
|
|
|
|
CARDINAL ETHANOL, LLC
|
|
|
|
|
Date:
|
November 22, 2019
|
|
/s// Jeffrey L. Painter
|
|
|
|
Jeffrey L. Painter
|
|
|
|
Chief Executive Officer and President
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date:
|
November 22, 2019
|
|
/s/ William Dartt
|
|
|
|
William Dartt
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
Date:
|
November 22, 2019
|
|
/s/ Robert J. Davis
|
|
|
|
Robert J. Davis, Chairman and Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Dale Schwieterman
|
|
|
|
Dale Schwieterman, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Tom Chalfant
|
|
|
|
Tom Chalfant, Vice Chairman and Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ J. Phillip Zicht
|
|
|
|
J. Phillip Zicht, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Ralph Brumbaugh
|
|
|
|
Ralph Brumbaugh, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Thomas C. Chronister
|
|
|
|
Thomas C. Chronister, Secretary and Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ David M. Dersch, Jr.
|
|
|
|
David M. Dersch, Jr., Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Steven J. Snider
|
|
|
|
Steven J. Snider, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Cyril G. LeFevre
|
|
|
|
Cyril G. LeFevre, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
|
|
|
|
C. Allan Rosar, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ William R. Garth
|
|
|
|
William R. Garth, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Robert Baker
|
|
|
|
Robert Baker, Director
|
||
|
|
|
||
Date:
|
November 22, 2019
|
|
/s/ Lewis M. Roch III
|
|
|
|
Lewis M. Roch III, Director
|
a)
|
All plan payouts must be approved by the Board of Directors.
|
b)
|
Employee must be employed on the day that the Board approves the payout to be eligible for any bonus payout.
|
c)
|
Employee must be working from October 1, 2019 to September 30, 2020 to be eligible for the full bonus.
|
a)
|
Eligibility for the Financial Goal payout portion of the plan begins at $7,500,000 net income. There will be NO payout under the financial goal section if the Company does not meet this minimum income threshold.
|
b)
|
The Financial Goal section is eligible to all employees that meet the eligibility requirements.
|
c)
|
Payout for the Financial Goal will be made prior to December 31, 2020 once the fiscal year end results are calculated, reviewed, and approved.
|
a)
|
Team Goals are not subject to a minimum net income requirement.
|
b)
|
Payout for the Team Goals will be made quarterly and based on company “Operational Statistics”, Christianson Benchmarking Results, Individual Safety Participation, and Audits.
|
c)
|
Employee must be employed on the last day of the quarter and on the day the Board approves the payout to receive any payout from the Team Goals.
|
d)
|
Employee does not need to have worked the full quarter to be eligible. Payout will be made once final goal accomplishments are known and have been approved by the Board of Directors.
|
e)
|
Team Goal payout is applicable to all employees that meet the eligibility requirements.
|
•
|
Minimum required net profit needed for payout $7.5M (Annual Payout)
|
–
|
Payout Level 1…………………………… $ 7,500,000 - $11,999,999 = 5 % payout
|
–
|
Payout Level 2…………………………… $12,000,000 - $19,999,999 = 7½% payout
|
–
|
Payout Level 3…………………………… $20,000,000 and above = 10% payout
|
•
|
Goal #1 Be a leader in efficiency through optimizing ethanol yield - (Improve on our 3-year average yield of 2.870 undenatured, moisture adjusted gallons per bushel ground based on corn at 15%) (3% max payout)
|
1)
|
Undenatured Ethanol Yield below 2.87 bu/gal ……….... 0% payout
|
2)
|
Undenatured Ethanol Yield of 2.871 - 2.879 bu/gal....... 1% payout
|
3)
|
Undenatured Ethanol Yield of 2.88 - 2.899 bu/gal…..... 2% payout
|
4)
|
Undenatured Ethanol Yield of > 2.9 bu/gal…………….. 3% payout
|
•
|
Goal #2 Optimize Natural Gas Usage (BTU per Anhydrous Ethanol Gallon) (2% max payout)
|
1)
|
26,500 or more……….………………………………… 0% payout
|
2)
|
26,499 - 25,751 …………………………………………. 1% payout
|
3)
|
25,750 or less ……………………………………………. 2% payout
|
•
|
Goal #3 Maximize Corn Oil Yield - (Pounds of Oil per Bushels Ground) (2% max payout)
|
1)
|
Corn Oil Yield of < .800 lbs/bushel……………………… 0% payout
|
2)
|
Corn Oil Yield of .800 - .829 lbs/bu…………………......... 1% payout
|
3)
|
Corn Oil Yield of > .830.......………………………………. 2% payout
|
•
|
Goal #4 Improve Safety Record - Individual Safety Participation; subject to verification and approval by management. (3% max payout)
|
1)
|
Safety Committee Meeting and Employee Participation (1% max payout)
|
◦
|
Employee Participation Menu (One item per employee)
|
2)
|
Near Miss Reporting (complete 2) (1% max payout)
|
◦
|
Two (2) Near Miss Reports completed (Plant, Internal Control, Cyber)
|
3)
|
Improve ERI Audit Score (based on bi-annual Audit scores/ranking) (1% max payout)
|
1)
|
Leadership/Management/Coaching - Develop and Support Mid-management (5%)
|
2)
|
Staff Development and Training - Develop programs and processes for employee success (2%)
|
3)
|
Production & Capacity Goals (Based on Denatured Production) (3%)
|
1)
|
Fiscal Year End Production > 132,000,000 MG………………. 1% payout
|
2)
|
Fiscal Year End Production > 134,000,000 MG………............. 2% payout
|
3)
|
Fiscal Year End Production > 138,000,000 MG………............. 3% payout
|
(a)
|
This Amendment, duly executed by Borrower and Lender;
|
(b)
|
A Security Agreement and Assignment of Hedging Accounts encumbering all of Borrower’s accounts at Marex North America, LLC; and
|
(c)
|
Such other documents and matters as are reasonably required by Lender.
|
1.
|
I have reviewed this annual report on Form 10-K of Cardinal Ethanol, LLC;
|
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 officers 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 officers 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:
|
November 22, 2019
|
|
/s/ Jeffrey L. Painter
|
|
|
|
Jeffrey L. Painter, Chief Executive Officer and President
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of Cardinal Ethanol, LLC;
|
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 officers 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 officers 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:
|
November 22, 2019
|
|
/s/ William Dartt
|
|
|
William Dartt, Chief Financial Officer
(Principal Financial and Accounting 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.
|
|
/s/ Jeffrey L. Painter
|
|
|
Jeffrey L. Painter, Chief Executive Officer and President
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
Dated:
|
November 22, 2019
|
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.
|
|
/s/ William Dartt
|
|
|
William Dartt,
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
Dated:
|
November 22, 2019
|