Note 8 - Revenues From Contracts With Customers and Other Revenue

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

8. Revenues from Contracts with Customers and Other Revenue

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) 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 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 SAF, 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.

Other revenue. Other revenue includes 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, 2021
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	50	$	—	$	50
Hydrocarbon revenue		483		—		483
Other revenue		—		178		178
	$	533	$	178	$	711
Timing of Revenue Recognition
Goods transferred at a point in time	$	533	$	—	$	533
Services transferred over time		—		178		178
	$	533	$	178	$	711

	Year Ended December 31, 2020
Major Goods/Service Line	Revenues from Contracts with Customers		Other Revenues		Total
Ethanol sales and related products, net	$	3,809	$	—	$	3,809
Hydrocarbon revenue		1,501		—		1,501
Other revenue		153		73		226
	$	5,463	$	73	$	5,536
Timing of Revenue Recognition
Goods transferred at a point in time	$	5,310	$	—	$	5,310
Services transferred over time		153		73		226
	$	5,463	$	73	$	5,536

	Year Ended December 31, 2019
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
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

Goods transferred at a point-in-time. For the years ended December 31, 2021, 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 December 31, 2021 and 2020, 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 years ended December 31, 2021, 2020 and 2019, there were no contracts 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 individual service performance obligation. As of December 31, 2021 and 2020, respectively, there were no material unfulfilled or partially fulfilled performance obligations.

Contract Assets and Trade Receivables. As of December 31, 2021 and 2020, 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 included in "Accounts receivable, net" 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 recorded an allowance for doubtful accounts for one customer which represents 27% of the trade accounts receivable as of December 31, 2021. The Company recorded $0 allowance for doubtful accounts as of  December 31, 2020.