Revenues from Contracts with Customers and 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 has historically consisted primarily 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

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

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 revenues have historically consisted of governmental and cooperative research grants. Other revenues have historically included occasional short-term (less than

one

-year) consulting services and leases of certain storage facilities located at the Luverne 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):

	Year Ended December 31, 201 9
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total

Ethanol sales and related products, net	$	22,115	$	—	$	22,115
Hydrocarbon revenue		2,338		—		2,338
Grant and other revenue		—		34		34

	$	24,453	$	34	$	24,487
Timing of Revenue Recognition

Goods transferred at a point in time	$	24,453	$	—	$	24,453
Services transferred over time		—		34		34

	$	24,453	$	34	$	24,487

	Year Ended December 31, 201 8
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total

Ethanol sales and related products, net	$	31,641	$	—	$	31,641
Hydrocarbon revenue		1,197		—		1,197
Grant and other revenue		25		—		25

	$	32,863	$	—	$	32,863
Timing of Revenue Recognition

Goods transferred at a point in time	$	32,838	$	—	$	32,838
Services transferred over time		25		—		25

	$	32,863	$	—	$	32,863

Goods transferred at a point-in-time.

For the years ended

December 31, 2019

and

2018,

there were

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

December 31, 2019

and

2018,

there were

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

three

months and there are

return or refund rights.

Services transferred over time.

For the years ended

December 31, 2019

and

2018,

there were

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

December 31, 2019

and

2018,

respectively, there were

material unfulfilled or partially fulfilled performance obligations.

For the years ended

December 2019

and

2018,

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

December 31, 2019

and

2018,

there were

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

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

December 31, 2019

2018.