Note 3 - Revenues From Contracts With Customers; Other Revenues

3 Months Ended

Mar. 31, 2020

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.

Ethanol sales and related products revenues are sold to customers on a free-on-board, shipping point basis. Revenue is recognized when the customer has control of the product. 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 is sold mostly on a free-on-board, shipping point basis. Revenue is recognized when the customer has control of the product. 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.

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 March 31, 2020
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	3,700	$	—	$	3,700
Hydrocarbon revenue		125		—		125
	$	3,825	$	—	$	3,825
Timing of Revenue Recognition
Goods transferred at a point in time	$	3,825	$	—	$	3,825
Services transferred over time		—		—		—
	$	3,825	$	—	$	3,825

	Three Months Ended March 31, 2019
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	5,664		—	$	5,664
Hydrocarbon revenue		739		—		739
	$	6,403	$	—	$	6,403
Timing of Revenue Recognition
Goods transferred at a point in time	$	6,403	$	—	$	6,403
Services transferred over time		—		—		—
	$	6,403	$	—	$	6,403

Goods transferred at a point-in-time.

For the

three

months ended

March 31, 2020

and

2019,

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

March 31, 2020

and

December 31, 2019,

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

three

months and there are

no

return or refund rights.

Services transferred over time.

For the

three

months ended

March 

31,

2020

 and 

2019,

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

March 31, 2020

and

December 31, 2019,

respectively, there were

no

material unfulfilled or partially fulfilled performance obligations.

Contract Assets and Trade Receivables.

As of

March 31, 2020

and

December 31, 2019,

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

March 31, 2020

or

December 31, 2019.