3. REVENUE Revenue by Source
All revenues from contracts with customers under ASC Topic 606 are recognized at
a point in time. The following table disaggregates revenue by major source for
the three and nine months ended
Three Months Ended July 31, 2021 (unaudited) Total Ethanol $ 69,910,835 Distillers' Grains 14,001,314 Corn Oil 4,816,842 Other 410,734 Natural Gas Pipeline 119,087 Total Revenues $ 89,258,812 Three Months Ended July 31, 2020 (unaudited) Total Ethanol $ 27,592,807 Distillers' Grains 5,019,310 Corn Oil 1,321,973 Other 71,519 Natural Gas Pipeline 125,991 Total Revenues $ 34,131,600 Nine Months Ended July 31, 2021 (unaudited) Total Ethanol $ 163,826,073 Distillers' Grains 35,737,294 Corn Oil 11,344,245 Other 939,993 Natural Gas Pipeline 849,954 Total Revenues $ 212,697,559 Nine Months Ended July 31, 2020 (unaudited) Total Ethanol $ 92,198,500 Distillers' Grains 22,040,430 Corn Oil 4,744,656 Other 559,242 Natural Gas Pipeline 1,052,020 Total Revenues $ 120,594,848 11 Table of Contents
Granite Falls Energy, LLC and Subsidiaries Notes to Condensed Consolidated Unaudited Financial StatementsJuly 31, 2021 Payment Terms
The Company has contractual payment terms with each respective marketer that sells ethanol, distillers' grains and corn oil. These terms are 10 calendar days after the transfer of control date. The Company has contractual payment terms with natural gas customers of 20 days.
Shipping and Handling Costs
Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of goods sold. Accordingly, amounts billed to customers for such costs are included as a component of revenue.
4. INVENTORY
Inventories consist of the following:
July 31, 2021 October 31, 2020 (unaudited) Raw materials$ 8,867,354 $ 4,893,502 Supplies 3,205,598 3,070,458 Work in process 2,325,312 1,480,871 Finished goods 8,268,863 4,346,974 Totals$ 22,667,127 $ 13,791,805
The Company performs a lower of cost or net realizable value analysis on
inventory to determine if the net realizable values of certain inventories are
less than their carrying value, which is attributable primarily to decreases in
market prices of corn and ethanol. Based on the lower of cost or net realizable
value analysis, as a component of cost of goods sold, the Company recorded a
loss on ethanol inventories of approximately
5. DERIVATIVE INSTRUMENTS
As of
As of
As of
As of
12 Table of ContentsGranite Falls Energy, LLC and Subsidiaries Notes to Condensed Consolidated Unaudited Financial StatementsJuly 31, 2021
The following tables provide details regarding the Company's derivative
instruments at
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