7. Parent Financial Statements

The following financial information represents the unconsolidated financial statements of Advanced BioEnergy, LLC (“ABE”) as of June 30, 2016 and September 30, 2015, and for the three and nine months ended June 30, 2016 and 2015. ABE’s ability to receive distributions from ABE South Dakota is based on the terms and conditions in ABE South Dakota’s credit agreements. Under the 2010 Credit Agreement, ABE South Dakota was allowed to make equity distributions (other than certain tax distributions) to ABE only upon ABE South Dakota meeting certain financial conditions and if there was no more than $25 million of principal outstanding on the senior term loan. Under the 2015 Credit Agreement, ABE South Dakota is allowed to distribute up to 40% of pre-tax net income in a given year, but must meet all loan covenants before and after any distribution. There were no distributions from ABE South Dakota during the last three fiscal years.

Advanced BioEnergy, LLC (Unconsolidated)

Balance Sheets

(Dollars in thousands)


	June 30, 2016			September 30, 2015
	(Dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	4,726		$	8,158
Restricted cash		1,533			1,500
Other receivable		—			6

Total current assets		6,259			9,664

Property and equipment, net		96			211
Other assets:
Investment in ABE Fairmont		—			108
Investment in ABE South Dakota		20,944			22,717
Other assets		32			32

Total assets	$	27,331		$	32,732

LIABILITIES AND MEMBERS’ EQUITY
Liabilities:
Accrued expenses	$	103		$	295
Other liabilities		—			21

Total liabilities		103			316
Members’ equity:
Members’ capital, no par value, 25,410,851 units issued and outstanding		48,638			48,638
Accumulated deficit		(21,410	)		(16,222	)

Total members’ equity		27,228			32,416

Total liabilities and members’ equity	$	27,331		$	32,732

Advanced BioEnergy, LLC (Unconsolidated)

Statements of Operations

(Dollars in thousands)

(Unaudited)


	Three Months Ended						Nine Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
	(Dollars in thousands)						(Dollars in thousands)
Equity in earnings (losses) of consolidated subsidiary	$	(420	)	$	707		$	(4,773	)	$	740
Selling, general and administrative expenses		(162	)		(113	)		(455	)		(447	)

Operating income (loss)		(582	)		594			(5,228	)		293
Other expense		—			—			(6	)		—
Interest income		5			6			46			16

Net income (loss)		(577	)		600			(5,188	)		309

Advanced BioEnergy, LLC (Unconsolidated)

Statements of Cash Flows

(Dollars in thousands)

(Unaudited)


	Nine Months Ended
	June 30, 2016			June 30, 2015
	(Dollars in thousands)
Cash flows from operating activities:
Net income (loss)	$	(5,188	)	$	309
Adjustments to reconcile net income (loss) to operating activities cash flows:
Depreciation		83			99
Equity in earnings of consolidated subsidiaries		4,773			(740	)
Gain on disposal of fixed assets		7			—
Amortization of deferred revenue and rent		(21	)		(21	)
Change in working capital components:
Other receivable		6			(11	)
Prepaid expenses		—			(4	)
Accrued expenses		(192	)		(59	)

Net cash (used in) operating activities		(532	)		(427	)

Cash flows from investing activities:
Proceeds from sale of assets		25			—
Change in restricted cash		(33	)		—

Net cash (used in) investing activities		(8	)		—

Cash flows from financing activities:
Distribution to subsidiary		(3,000	)		—
Distribution from subsidiary		108			—

Net cash (used in) financing activities		(2,892	)		—

Net (decrease) in cash and cash equivalents		(3,432	)		(427	)
Beginning cash and cash equivalents		8,158			8,988

Ending cash and cash equivalents	$	4,726		$	8,561