Note 3 - Revenues From Contracts With Customers and Other Revenues

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3.

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 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 September 30, 2020
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	21	$	—	$	21
Hydrocarbon revenue		101		—		101
Other revenue		70		—		70
	$	192	$	—	$	192
Timing of Revenue Recognition
Goods transferred at a point in time	$	122	$	—	$	122
Services transferred over time		70		—		70
	$	192	$	—	$	192

	Three Months Ended September 30, 2019
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	5,554	$	—	$	5,554
Hydrocarbon revenue		550		—		550
Other revenue		—		6		6
	$	6,104	$	6	$	6,110
Timing of Revenue Recognition
Goods transferred at a point in time	$	6,104	$	—	$	6,104
Services transferred over time		—		6		6
	$	6,104	$	6	$	6,110

	Nine Months Ended September 30, 2020
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	3,804	$	—	$	3,804
Hydrocarbon revenue		1,085		—		1,085
Other revenue		116		—		116
	$	5,005	$	—	$	5,005
Timing of Revenue Recognition
Goods transferred at a point in time	$	4,889	$	—	$	4,889
Services transferred over time		116		—		116
	$	5,005	$	—	$	5,005

	Nine Months Ended September 30, 2019
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	16,184		—	$	16,184
Hydrocarbon revenue		1,381		—		1,381
Other revenue		—		34		34
	$	17,565	$	34	$	17,599
Timing of Revenue Recognition
Goods transferred at a point in time	$	17,565	$	—	$	17,565
Services transferred over time		—		34		34
	$	17,565	$	34	$	17,599

Goods transferred at a point-in-time.

For the

three

and

nine

months ended

September 30, 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

September 30, 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

and

nine

months ended

September 30, 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

September 30, 2020

and

December 31, 2019,

respectively, there were

no

material unfulfilled or partially fulfilled performance obligations.

Contract Assets and Trade Receivables.

As of

September 30, 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 as of

September 30, 2020

and

December 31, 2019.

The Company did

not

incur any impairment losses on any receivables as all amounts owed were paid or current as of

September 30, 2020

or

December 31, 2019.