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Note 3 - Revenues From Contracts With Customers Other Revenues
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
3.
Revenues from Contracts with Customers Other Revenues
 
The Company’s current and historical revenues have consisted of the following: (a) ethanol sales and related products revenue, net; (b) hydrocarbon revenue; and (c) grant and other revenue, which primarily has historically consisted of revenues from governmental and cooperative research grants.
 
Ethanol sales and related products revenues, net.
Ethanol sales and related products revenues, net are sold to customers on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are
no
future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.
 
Hydrocarbon revenue.
Hydrocarbon revenues include sales of ATJ, isooctene and isooctane and are sold mostly on a “free-on-board, shipping point” basis. Each transaction occurs independent of any other sale, and once sold, there are
no
future obligations on the part of the Company to provide post-sale support or promises to deliver future goods or services.
 
Grant and other revenues.
Grant and other revenues primarily have historically consisted of governmental and cooperative research grants, of which the
Northwest Advanced Renewables Alliance
(“NARA”) grant, funded by the United States Department of Agriculture (“USDA”), comprised the majority of those revenues since
2014.
After reviewing this arrangement, the Company has concluded that this grant consists of a non-reciprocal arrangement, and therefore, does
not
qualify as a contract pursuant to Topic
606
Revenues from Contracts with Customers”
. Other revenues also include occasional short-term (less than
one
-year) consulting services and until
December
of
2017,
the lease of the Company’s corn storage bins at its Luverne, MN facility.
 
The following table sets forth the components of the Company’s revenues between those generated from contracts with customers and those generated from arrangements that do
not
constitute a contract with a customer (in thousands):
 
   
Three Months Ended June 30, 2018
 
Major Goods/Service Line
 
Revenues from
Contracts with
Customers
   
Other Revenues
   
Total
 
Ethanol sales and related products, net
  $
8,813
    $
-
    $
8,813
 
Hydrocarbon revenue
   
607
     
-
     
607
 
Grant and other revenue
   
-
     
-
     
-
 
    $
9,420
    $
-
    $
9,420
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
 
Goods transferred at a point in time
  $
9,420
    $
-
    $
9,420
 
Services transferred over time
   
-
     
-
     
-
 
    $
9,420
    $
-
    $
9,420
 
Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
Gevo
  $
607
    $
-
    $
607
 
Gevo Development / Agri-Energy
   
8,813
     
-
     
8,813
 
    $
9,420
    $
-
    $
9,420
 
Geographic Region
 
 
 
 
 
 
 
 
 
 
 
 
United States
  $
8,813
    $
-
    $
8,813
 
Other
   
607
     
-
     
607
 
    $
9,420
    $
-
    $
9,420
 
 
   
Three Months Ended June 30, 2017
 
Major Goods/Service Line
 
Revenues from
Contracts with
Customers
   
Other Revenues
   
Total
 
Ethanol sales and related products, net
  $
6,839
    $
-
    $
6,839
 
Hydrocarbon revenue
   
660
     
-
     
660
 
Grant and other revenue
   
-
     
43
     
43
 
    $
7,499
    $
43
    $
7,542
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
 
Goods transferred at a point in time
  $
7,499
    $
-
    $
7,499
 
Services transferred over time
   
-
     
43
     
43
 
    $
7,499
    $
43
    $
7,542
 
Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
Gevo
  $
660
    $
-
    $
660
 
Gevo Development / Agri-Energy
   
6,839
     
43
     
6,882
 
    $
7,499
    $
43
    $
7,542
 
Geographic Region
 
 
 
 
 
 
 
 
 
 
 
 
United States
  $
6,839
    $
43
    $
6,882
 
Other
   
660
     
-
     
660
 
    $
7,499
    $
43
    $
7,542
 
 
 
   
Six Months Ended June 30, 2018
 
Major Goods/Service Line
 
Revenues from
Contracts with
Customers
   
Other Revenues
   
Total
 
Ethanol sales and related products, net
  $
17,031
    $
 -
    $
17,031
 
Hydrocarbon revenue
   
607
     
-
     
607
 
Grant and other revenue
   
25
     
-
     
25
 
    $
17,663
    $
-
    $
17,663
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
 
Goods transferred at a point in time
  $
17,638
    $
-
    $
17,638
 
Services transferred over time
   
25
     
-
     
25
 
    $
17,663
    $
-
    $
17,663
 
Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
Gevo
  $
632
    $
-
    $
632
 
Gevo Development / Agri-Energy
   
17,031
     
-
     
17,031
 
    $
17,663
    $
-
    $
17,663
 
Geographic Region
 
 
 
 
 
 
 
 
 
 
 
 
United States
  $
17,056
    $
-
    $
17,056
 
Other
   
607
     
-
     
607
 
    $
17,663
    $
-
    $
17,663
 
 
 
   
Six Months Ended June 30, 2017
 
Major Goods/Service Line
 
Revenues from
Contracts with
Customers
   
Other Revenues
   
Total
 
Ethanol sales and related products, net
  $
12,333
    $
-
    $
12,333
 
Hydrocarbon revenue
   
749
     
-
     
749
 
Grant and other revenue
   
-
     
75
     
75
 
    $
13,082
    $
75
    $
13,157
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
 
Goods transferred at a point in time
  $
13,082
    $
-
    $
13,082
 
Services transferred over time
   
-
     
75
     
75
 
    $
13,082
    $
75
    $
13,157
 
Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
Gevo
  $
749
    $
-
    $
749
 
Gevo Development / Agri-Energy
   
12,333
     
75
     
12,408
 
    $
13,082
    $
75
    $
13,157
 
Geographic Region
 
 
 
 
 
 
 
 
 
 
 
 
United States
  $
12,333
    $
75
    $
12,408
 
Other
   
749
     
-
     
749
 
    $
13,082
    $
75
    $
13,157
 
 
Goods transferred at a point-in-time.
For the
three
and
six
months ended
June 30, 2018
and
2017,
there were
no
contracts with customers for which consideration was variable or for which there were multiple performance obligations for any given contract. Accordingly, the entire transaction price is allocated to the goods transferred. As of
June 30, 2018
and
December 31, 2017,
there were
no
remaining unfulfilled or partially fulfilled performance obligations.
 
All goods transferred are tested to ensure product sold satisfies contractual product specifications prior to transfer. The customer obtains control of the goods when title and risk of loss for the goods has transferred, which in most cases is “
free-on-board, shipping point
”. All material contracts have payment terms of between
one
to
six
months, and there are
no
return or refund rights.
 
Services transferred over time.
For the three and
six
months ended
June 30, 2018
and
2017,
there were
no
contracts for which consideration was variable or for which there were multiple performance obligation for any given contract. Accordingly, the entire transaction price is allocated to the individual service performance obligation. As of
June 30, 2018
and
December 31, 2017,
there were
no
material unfulfilled or partially fulfilled performance obligations.
 
For the
three
and
six
months ended
June 30, 2018
and
2017,
revenues were recognized ratably over time, as the performance obligation was satisfied and benefit to the customer was transferred on a ratable basis over time.
 
Contract Assets and Trade Receivables.
As of
June 30, 2018
and
December 31, 2017,
there were
no
contract assets or liabilities as all customer amounts owed to the Company are unconditional and the Company does
not
receive payment in advance for its products. Accordingly, amounts owed by customers are classified as account receivables on the Company’s consolidated balance sheets. In addition, due to the nature of the Company’s contracts, there are
no
costs incurred or to be paid in the future that qualify for asset recognition as a cost to fulfill or obtain a contract. The Company did
not
incur any impairment losses on any receivables as all amounts owed were paid or current as of
June 30, 2018
and
December 31, 2017.