Horne Express Grain Audits WM

EXPRESS GRAIN TERMINALS, LLC
AND AFFILIATES
Greenwood, Mississippi
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Combined Financial Statements
As of December 31, 2020 and
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June 30, 2020 and For the Six Months Ended
December 31, 2020
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CONTENTS
Independent Auditor's Report 1–2
Financial Statements
Combined Balance Sheets 3
Combined Statement of Income 4
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Combined Statement of Members' Equity 5
Combined Statement of Cash Flows 6
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Notes to Combined Financial Statements 7 – 20
Supplementary Information
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Combining Balance Sheet 21
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Combining Statement of Income 22

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INDEPENDENT AUDITOR'S REPORT
To the Board of Directors

Express Grain Terminals, LLC and Affiliates
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Report on the Financial Statements
We have audited the accompanying combined financial statements of Express Grain Terminals, LLC
and Affiliates (the "Companies") which comprise the combined balance sheets as of
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December 31, 2020 and June 30, 2020, and the related combined statements of income, changes
in members' equity and cash flows for the six months period ended December 31, 2020 and the
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related notes to the combined financial statements.
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Management's Responsibility for the Financial Statements
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Management is responsible for the preparation and fair presentation of these combined financial
statements in accordance with accounting principles generally accepted in the United States of
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America; this includes the design, implementation and maintenance of internal control relevant to
the preparation and fair presentation of the combined financial statements that are free from
material misstatement, whether due to fraud or error.
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Auditor's Responsibility
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Our responsibility is to express an opinion on these combined financial statements based on our
audits. We conducted our audits in accordance with auditing standards generally accepted in the
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United States of America. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the combined financial statements are free from material
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misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the combined financial statements referred to above present fairly, in all material
respects, the financial position of the Companies as of December 31, 2020 and June 30, 2020, and
the results of their operations and their cash flows for the six months ended December 31, 2020, in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter Regarding Going Concern

The accompanying combined financial statements for the year ended December 31, 2020, have
been prepared assuming that the Companies will continue as a going concern. As discussed in Note
1 to the combined financial statements, the Companies have accumulated losses of approximately
$19,400,00 since their inception and their total current liabilities exceed total current assets at
December 31, 2020. The Companies have a line-of-credit with a balance at December 31, 2020 of
approximately $47.2 million that matures within the next twelve months. These conditions raise
substantial doubt about the Companies' ability to continue as a going concern. Management's plans
concerning these matters are also discussed in Note 1 to the combined financial statements. The
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combined financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.
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Other Matter
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Our audits were conducted for the purpose of forming an opinion on the combined financial
statements as a whole. The combining information on pages 21-22 is presented for purposes of
additional analysis rather than to present the financial position and results of operations of the
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individual companies and is not a required part of the combined financial statements. Such
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information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the combined financial statements. The
combining information has been subjected to the auditing procedures applied in the audit of the
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combined financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the combined financial statements or to the combined financial statements themselves, and other
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additional procedures in accordance with auditing standards generally accepted in the United States
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of America. In our opinion, the information is fairly stated in all material respects in relation to the
combined financial statements as a whole.
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Ridgeland, Mississippi
August 30, 2021
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EXPRESS GRAIN TERMINALS, LLC AND AFFILIATES
Combined Balance Sheets
December 31, 2020 and June 30, 2020
December 31, 2020 June 30, 2020
ASSETS
Current assets
Cash $ 1,069,189 $ 846,382
Accounts receivable 5,103,331 3,836,719
Inventories 86,562,020 14,756,192
Prepaid expenses 558,213 542,094
Biodiesel tax credit receivable 1,011,859 1,541,352
Forward contracts 2,658,876 -
Margin assets 2,480,441 2,238,493
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Total current assets 99,443,929 23,761,232
Notes receivable 36,477,222 18,904,582
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Property and equipment, net 62,615,699 59,018,549
Restricted cash 1,531,579 369,455
Total assets
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LIABILITIES AND MEMBERS' EQUITY
Current liabilities
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Accounts payable $ 2,885,946 $ 2,462,623

Current maturities of long-term debt 4,677,629 4,333,848
Forward contracts - 374,471
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Borrowings on line-of-credit 47,239,449 24,662,990

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Unpriced grain purchases 45,145,358 8,671,337

Deferred revenue 5,000,001 2,412,781
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Accrued expenses 1,220,883 597,705

Total current liabilities 106,169,266 43,515,755
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Note payable, related party 6,843,680 5,568,680

Long-term debt, less current maturities 82,494,017 50,628,198
Total liabilities 195,506,963 99,712,633
Members' equity 4,561,466 2,341,185
Total liabilities and members' equity $ 200,068,429 $ 102,053,818
See accompanying notes to combined financial statements.
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Combined Statement of Income
Six Months Ended December 31, 2020
Net sales $ 103,358,997

Cost of goods sold 86,596,420
Gross margin 16,762,577
Operating expenses
Depreciation & amortization expense 2,513,467
Impairment loss 1,000,000
Other operating expenses 9,475,212
Total operating expenses 12,988,679
Operating income 3,773,898
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Other income (expense)
Other income 1,282,193
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Interest expense (2,835,810)
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Total other expense (1,553,617)
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Net income $ 2,220,281
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Combined Statement of Members' Equity
Members'
Equity
Balance, July 1, 2020 $ 2,341,185

Net income 2,220,281
Balance, December 31, 2020 $ 4,561,466
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Combined Statement of Cash Flows
2020
Cash flows from operating activities

Net income $ 2,220,281
Adjustments to reconcile net income to net cash
used in operating activities
Depreciation and amortization 2,513,467
Impairment loss on property and equipment 1,000,000
Changes in operating assets and liabilities:
Margin asset (241,948)
Accounts receivable (1,266,612)
Inventories (71,805,828)
Biodiesel tax credit receivable 529,493
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Grain payable 36,474,021
Forward contracts (3,033,347)
Prepaid expenses (16,119)
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Accounts payable and accrued expenses 1,046,501
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Deferred revenue 2,587,220
Net cash used in operating activities (29,992,871)
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Cash flows from investing activities
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Increase in notes receivable (17,572,640)

Purchases of property and equipment (6,872,910)
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Net cash used in investing activities (24,445,550)
Cash flows from financing activities

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Increase in borrowings on line-of-credit 22,576,459

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Proceeds from long-term borrowings 33,715,943

Proceeds from related-party borrowings 1,500,000
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Principal payments on long-term borrowings (1,037,323)

Payment of debt issuance costs (931,727)
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Net cash provided by financing activities 55,823,352
Increase in cash and restricted cash 1,384,931
Cash and restricted cash at beginning of year 1,215,837
Cash and restricted cash at end of year $ 2,600,768
Supplemental disclosures of cash flow information

Cash paid for interest $ 2,749,354
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December 31, 2020 and June 30, 2020 and
For the Six Months Ended December 31, 2020
NOTES TO COMBINED FINANCIAL STATEMENTS

Note 1. Nature of Business and Significant Accounting Policies
Description of Business and Principles of Combination
Express Grain Terminals, LLC, ("EGT"), a limited liability company, is a registered grain storage facility
with its primary operations in Greenwood and Sidon, Mississippi. EGT specializes in buying and
selling soybeans, soybean oil, wheat and feed. EGT mills soybeans at its Greenwood facility. The
products produced from the milling process include soybean oil, soybean meal and soybean hulls. In
addition, the Greenwood facility produces biodiesel utilizing soybean oil from the milling process.
The accompanying combined financial statements include the accounts of EGT, as well as the
accounts of Express Biodiesel, LLC ("Express Biodiesel"), Express Processing, LLC ("EGT Processing")
and its 95 percent owned subsidiary, EGT Leverage Lender, LLC ("Leverage Lender") (collectively, the
"Companies"). EGT Processing and Leverage Lender were formed in 2015 and Express Biodiesel was
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formed in 2018 in connection with EGT's New Markets Tax Credit ("NMTC") Financing as more fully
described in Note 7. EGT and these entities share similar ownership. All significant intercompany
balances and transactions have been eliminated in combination.
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Plan of Operation
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The Companies have accumulated losses of approximately $19,400,000 million since their
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inception and their total current liabilities exceed total current assets at December 31, 2020. The
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Companies have a $40 million line of credit maturing October 31, 2021 and term loan of $35 million
maturing October 31, 2023. EGT continues to invest in its Greenwood biodiesel facility which began
operations on March 28, 2019. The biodiesel facility continues to operate but not at full capacity.
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The Companies' ability to meet their future commitments is significantly dependent upon the
profitability of their biodiesel operations and ability to renew and extend its line of credit. There can
be no assurances that the Companies will have sufficient cash flows from its biodiesel operations to
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meet their future commitments or that they will be able to renew or extend the line of credit under
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acceptable terms. These conditions raise substantial doubt about the Companies' ability to continue
as a going concern.
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The combined financial statements have been prepared on a going concern basis of accounting,
which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and
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commitments in the normal course of business. The combined financial statements do not reflect
any adjustments that might result from the outcome of the uncertainties as discussed above.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires the Companies' management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Specifically, the Companies' management utilizes certain
techniques that require significant judgment and estimates to verify quantities on hand of its
commodities inventory. Actual results could differ from those estimates.
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Note 1. Continued
Cash and Cash Equivalents
The Companies consider all highly liquid investments with maturities of three months or less when
purchased to be cash equivalents.
Accounts Receivable
Accounts receivable are stated at estimated net realizable value. Management determines the
allowance for doubtful accounts based on a variety of factors, including the length of time the
receivables are past due, significant one-time events and historical experience. Accounts older than
30 days are generally considered past due. No interest accrues on past due accounts.
Management has not recorded an allowance for doubtful accounts at December 31, 2020 or
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June 30, 2020.
Inventories
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Inventories consist primarily of agricultural commodity inventories, such as wheat, soybeans,
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soybean oil, soybean meal and soybean hulls that are readily convertible to cash because of their
commodity characteristics, widely available markets and pricing mechanisms. All of EGT's
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agricultural commodity inventories are valued at net realizable value. The agricultural commodity
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inventories are freely traded, have quoted market prices, may be sold without significant further
processing and have predictable and insignificant disposal costs. Changes in market values are
recognized in earnings as a component of cost of sales. This accounting policy is in accordance with
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the guidelines described in Financial Accounting Standards Board ("FASB") Accounting Standards
Codification ("ASC") 905, Agriculture. The Companies also have biofuel inventories, which are state
at the lower of cost or market. Cost is determined using primarily the weighted-average cost method.
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Renewable Identification Numbers
When the Companies produce and sell a gallon of biomass-based diesel, 1.5 renewable
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identification numbers ("RIN") per gallon are generated. RINs are used to track compliance with the
renewable fuel standard ("RFS2"). RFS2 allows the Companies to attach between zero and 2.5 RINs
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to a gallon of biomass diesel. As a result, a portion of the selling price for the biomass-diesel is
generally attributable to RFS2 compliance. However, RINs that the Companies generate are a form of
government incentive and not a result of the physical attributes of the biomass-based diesel
production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether
transferred with the biomass-based diesel produced or held by the Companies pending attachment
to other biomass-based diesel.
Margin Assets
EGT has margin deposits with a commodity brokerage firm used to acquire futures and option
contracts to manage the price volatility risk of its commodity inventories and unpriced grain
purchases. These contracts are recorded at market value.
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Note 1. Continued
Property and Equipment
Property and equipment are stated at cost. Depreciation is provided on the straight-line method
based on the following estimated useful lives: buildings – 39 years, equipment – 3 to 7 years, grain
systems – 7 to 39 years, rail systems – 7 to 15 years and land improvements – 7 to 15 years. Major
renewals or betterments that extend the useful lives of assets are capitalized. Repairs and
maintenance costs are expensed as incurred.
Upon the retirement or sale of property and equipment, its cost and related accumulated
depreciation are removed from the respective accounts and any gain or loss is reflected in the
operations of the current period.
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Asset Impairments
The Companies periodically evaluate whether current facts or circumstances indicate that the
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carrying value of its depreciable assets to be held and used may not be recoverable. If such
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circumstances are determined to exist, an estimate of undiscounted future cash flows produced by
the long-lived asset or the appropriate grouping of assets is compared to the carrying value to
determine whether impairment exists. If an asset is determined to be impaired, the loss is
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measured based on the difference between the asset's fair value and its carrying value.
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Notes Receivable
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The notes receivable relate to Leverage Lender's receivables from non-related entities entered into in
connection with the New Markets Tax Credit financing transactions, as more fully described in
Note 7. The notes bear interest from 1.07 to 1.50 percent and are carried at net realizable value.
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The notes mature at various dates including November 19, 2035, May 10, 2036, and July 2, 2047.
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The notes require quarterly, interest only payments with the first principal payment due March 2023.
Derivative Instruments and Hedging Activities

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All of EGT's derivatives are designated as non-hedge derivatives. The futures and options contracts
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used by EGT are discussed in Note 6. EGT, as part of its trading activity, use futures and option
contracts offered through regulated commodity exchanges. EGT is exposed to risk of loss in the
market value of inventories and its unpriced grain purchases. To reduce that risk, EGT generally
takes opposite and offsetting positions using futures contracts or options.
Debt Issuance Costs
Debt issuance costs represent costs to acquire debt associated with the NMTC financing, which is
more fully described in Note 7, and are amortized using the straight-line method, which approximates
the effective interest method, over the expected term of the related debt. Such costs are treated as
a reduction of the debt proceeds.
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Note 1. Continued
Unpriced Grain Purchases
EGT transacts with certain of its suppliers for commodities for which a purchase price is not
determined when EGT takes possession of the related commodities. Under these arrangements,
suppliers determine the date for which the pricing will be determined. EGT and its suppliers utilize
regulated commodity exchanges to determine pricing. Accordingly, the liability for unpriced grain
purchases is recorded at its estimated fair value or estimated price to settle the obligation at
December 31, 2020 and June 30, 2020.
Revenue Recognition
The Company's revenue comprises sales from forward commodity contracts that are accounted for
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under ASC 815, "Derivatives and Hedging" ("ASC 815") and sales of products that are accounted for
under ASC 606, "Revenue from Contracts with Customers" ("ASC 606").
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Revenue from commodity contracts primarily relates to forward sales of commodities, such as
soybeans, corn, and wheat, which are accounted for as derivatives at fair value under ASC 815.
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These forward sales meet the definition of a derivative under ASC 815 as they have an underlying
(e.g., the price of soybeans), a notional amount (e.g., metric tons), no initial net investment and can
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be net settled since the commodity is readily convertible to cash. EGT does not apply the normal
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purchase and normal sale exception available under ASC 815 to these contracts.
Revenue from commodity contracts is recognized in net sales for the contracted amount when the
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contracts are settled. Settlement of the commodity contracts generally occurs upon shipment or
delivery of the product when title and risks and rewards of ownership transfers to the customer.
From inception through settlement, these forward sales arrangements are recorded at fair value
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under ASC 815 with unrealized gains and losses recognized in cost of goods sold and carried on the
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combined balance sheet as current assets or current liabilities, respectively.
Revenue from contracts with customers primarily relate to sales of commodities, such as soybeans,
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corn and wheat. The Company recognizes revenue from these contracts at a point in time when it
satisfies a performance obligation by transferring control of a product to a customer, generally when
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legal title and risks and rewards of ownership transfer to the customer.
Freight charged to customers for sales transactions, when applicable are included in sales. The
Company has elected to account for freight activities that occur after the customer obtains control of
the promised goods as fulfillment activities and not promised services. Freight costs incurred are
accounted for as cost of sales.
The Company's revenues within the scope of ASC 606 do not include material amounts of variable
consideration. Payment terms vary by the products or services offered. The time between invoicing
and when payment is due is not significant. Contracts with customers do not generally include a
significant financing component or result in significant obligations associated with returns or
refunds.
The Company has elected the practical expedient that allows the Company to recognize the
incremental costs of obtaining a contract as an expense, when incurred, if the amortization period of
the asset that the Company otherwise would have recognized is one year or less.
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Note 1. Continued
Deferred revenues relate to customers who prepay for products that are shipped to them over time.
Revenue is recognized on these sales once title and risk of loss is transferred to the customer.
Income Taxes
Taxable income or loss of the Companies is reported on the tax returns of the members. Accordingly,
no provision or liability for income taxes has been included in the combined financial statement of
the Companies.
Fair Value Measurements
Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820,
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Fair Value Measurements and Disclosure, ("ASC 820") establishes a three-level hierarchy for fair
value measurements. The hierarchy is based upon the transparency of inputs to the valuation of an
asset or liability as of the measurement date. The classification of fair value within the hierarchy is
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based upon the lowest level of input that is significant to the measurement. For Level 1, the
valuation is based upon quoted prices for identical assets or liabilities in an active market. For
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Level 2, the valuation is based upon quoted prices for similar assets and liabilities in active markets
or other inputs that are observable, either directly or indirectly, for substantially the full term of the
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financial instrument. For Level 3, the valuation is based upon other unobservable inputs that are
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significant to the fair value measurement.
The derivative instruments held by EGT, include forward purchase and sales contracts and futures
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and option contracts which are recorded at fair value. The fair value of futures contracts is
determined using the commodity exchange quoted prices (Level 1 inputs). The estimated fair value
of forward contracts is determined using the commodity exchange quoted prices, adjusted as
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appropriate for differences in the local market (Level 1 inputs). Agricultural commodity inventories
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are stated at market value (net realizable value). Agricultural commodity inventories reported at fair
value are valued based on commodity exchange quotations or market transactions with appropriate
adjustments for differences in local markets where EGT's inventories are located (Level 2).
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The following table presents information about the assets and liabilities recorded at fair value on a
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recurring basis at December 31, 2020:

Fair Value Measurements at December 31, 2020
Quoted Prices Significant
In Active Other Significant
Markets for Observable Unobservable
Identical Assets Inputs Inputs
(Level 1) (Level 2) (Level 3) Total
Agricultural commodity
inventories $ - $ 85,151,299 $ - $ 85,151,299
Margin assets 2,480,441 - - 2,480,441
Forward contracts 2,658,876 - - 2,658,876
Unpriced grain
purchases - (45,145,358) - (45,145,358)
Total $ 5,139,317 $ 40,005,941 $ - $ 45,145,258
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Note 1. Continued
recurring basis at June 30, 2020:
Fair Value Measurements at June 30, 2020
inventories $ - $ 14,304,882 $ - $ 14,304,882
Margin assets 2,238,493 - - 2,238,493
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Forward contracts (374,471) - - (374,471)
Unpriced grain
purchases - (8,671,337) - (8,671,337)
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Total $ 1,864,022 $ 5,633,545 $ - $ 7,497,567
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The majority of the Companies' non-financial instruments, which include property and equipment,
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are not required to be carried at fair value on a recurring basis but are subject to fair value
adjustments only in certain circumstances. If certain triggering events occur such that a non-financial
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instrument is required to be evaluated for impairment, any resulting asset impairment would require
that the non-financial instrument be recorded at the lower of historical cost or its fair value. The
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Companies determined certain biodiesel and soybean processing assets were impaired at the
December 31, 2020 and June 30, 2020. The impairment of approximately $1 million and $13
million was determine primarily utilizing a sales comparison approach which the Companies
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determined to be at Level 2 in the fair value hierarchy.

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Restricted Cash
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The following table provides a reconciliation of cash, cash equivalents and restricted cash reported
within the combined balance sheet that sums to the total of the same such amounts shown on the
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combined statement of cash flows.

December 31, June 30,
2020 2020
Cash and cash equivalents $ 1,069,189 $ 846,382
Restricted cash 1,531,579 369,455
Total cash, cash equivalents and restricted cash shown
in the statement of cash flows $ 2,600,768 $ 1,215,837
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Note 1. Continued
Recent Accounting Pronouncements
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from
Contracts with Customers ("Topic 606"), which clarifies the principles for recognizing revenue. This
guidance requires an entity to recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. The Company adopted the standard on January 1, 2019
under the modified retrospective approach, applying it only to contacts with customers open as of
that date. The impact of adoption of the standard did not have a material impact to these combined
financial statements.
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Note 2. Property and Equipment
Property and equipment consisted of the following at December 31, 2020 and June 30, 2020:
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2020 2020
Land and improvements $ 1,125,007 $ 1,125,007
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Buildings 956,694 917,709
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Equipment, bins and grain systems 30,870,718 30,169,744
Oil mill facility 30,542,645 28,708,188
Biodiesel facility 11,566,150 11,533,136
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Construction in progress 3,527,258 67,023

Total property and equipment 78,588,472 72,520,807
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Less accumulated depreciation and amortization 15,972,773 13,502,258

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Property and equipment, net $ 62,615,699 $ 59,018,549

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The Company obtained an appraisal of its property and equipment in 2020 as a result of ongoing
losses from its biodiesel operations. In accordance with ASC 360, Property, Plant and Equipment,
the Companies evaluated their fixed assets for impairment at the lowest level for which identifiable
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cash flows were largely independent of the cash flows of other assets and liabilities. Based on this
appraisal, the carrying value of the property and equipment associated with the biodiesel and
soybean processing facility was determined to be impaired and was written down by approximately
$1 million and $13 million to their estimated fair value as of December 31, 2020 and June 30,
2020, respectively. There was no impairment recognized related to the Companies grain storage
facility assets.
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Note 3. Inventories
Inventories at December 31, 2020 and June 30, 2020 were as follows:
2020 2020
Soybeans $ 81,166,174 $ 6,034,377
Soybean oil 2,076,945 3,362,115
Soybean meal 1,538,068 4,361,635
Soybean hulls 79,240 107,100
Corn 290,872 388,431
Wheat - 51,224
Biodiesel 1,365,721 406,310
Other 45,000 45,000
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$ 86,562,020 $ 14,756,192
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Note 4. Line-of-Credit and Long-term Debt
EGT has a credit agreement that provides for maximum available borrowings of $40,000,000 under
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a line of credit and a $35,000,000 term loan at December 31, 2020. Borrowings under the line of
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credit bear interest at variable rates based on LIBOR plus the applicable margin (4.00 percent at
December 31, 2020). Substantially all assets of EGT collateralize borrowings under the credit
agreement. At December 31, 2020, outstanding borrowings under the line of credit were
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$47,239,449, which included $11,423,285 of outstanding checks, and exceeded its maximum
available borrowings. The line of credit matures October 31, 2021, but may be canceled at any time,
at the sole discretion of the lender. The credit agreement requires EGT maintain a tangible net
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worth, as defined, of not less than $1,000,000 and a minimum debt service ratio of 1.25:1.00. The
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terms of the line of credit were amended to waive any noncompliance of the debt service ratio
covenant through June 30, 2021. The credit agreement also limits the number of un-hedged
commodities contracts to be held by EGT. EGT held long positions for certain commodities
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exceeding limits allowed under the line of credit, which represents an event of default. On
August 26, 2021, EGT was granted a waiver in connection with this event of default.
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Note 4. Continued
The following is a summary of long-term debt at December 31, 2020 and June 30, 2020:
2020 2020
JOHN DEERE FINANCIAL
Payable in monthly, interest-free payments through July 2020 $ 42,141 $ 117,885
CAT FINANCIAL
Payable in monthly, interest free payments through
December 2022 118,878 149,889
CHASE AUTO
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November 2024 21,095 23,620
STATE BANK NOTE
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Payable in monthly, interest free payments through April
2026 29,081 31,823
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RUSTIC VENTURES, LLC NOTE A
Payable in quarterly, interest-only payments through March
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2023 with the principal and unpaid interest due November
2035 3,941,006 3,941,006
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RUSTIC VENTURES, LLC NOTE B

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2035 1,938,994 1,938,994
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AMCREF CDE FUND 34, LLC NOTE A

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2035 5,441,776 5,441,776
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AMCREF CDE FUND 34, LLC NOTE B

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2035 2,605,224 2,605,224
AMCREF CDE FUND 34, LLC NOTE C
2035 1,153,000 1,153,000
EGT STATE FUND, LLC
2035 1,153,000 1,153,000
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Note 4. Continued

2020 2020
AMCREF FUND 47, LLC LOAN A
Payable in quarterly, interest-only payments through May
2025 with principal and unpaid interest due upon maturity
May 2038 $ 3,662,000 $ 3,662,000
AMCREF FUND 47, LLC LOAN B
2025 with principal and interest due quarterly from June
2025 through May 2038 1,338,000 1,338,000
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MUNISTRATEGIES SUB-CDE#26, LLC LOAN A
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May 2038 4,706,800 4,706,800
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MUNISTRATEGIES SUB-CDE#26, LLC LOAN B
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2025 through May 2038 1,764,560 1,764,560
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MUNISTRATEGIES SUB-CDE#26, LLC LOAN C
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May 2025 458,640 458,640
UMB TERM LOAN
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Payable in quarterly, principal and interest payments of

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$875,000 beginning March 31, 2021 through October 31,

2023 with remaining principal and accrued and unpaid
interest due October 2023 35,000,000 25,200,000
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PAYROLL PROTECTION PROGRAM LOAN

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Payable in monthly, principal and interest payments of

$124,113 beginning November 2020 through April 2022 2,205,000 2,205,000
SCOTT FINANCIAL SERVICES, LLC
Payable in monthly, principal and interest payments
beginning January 2021 through December 2025 309,500 -
AMCREF COMMUNITY CAPITAL, LLC
Payable in quarterly, interest-only payments, with the
principal and unpaid interest due July 2050 656,612 -
16

Note 4. Continued

2020 2020
AMCREF QLICI, NOTE A
Payable in quarterly, interest-only payments through June
2027, with the principal and unpaid interest due July 2050 $ 6,053,961 $ -
AMCREF QLICI, NOTE B
2027, with the principal and unpaid interest due July 2050 2,116,113 -
AMCREF QLICI, NOTE C
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2027, with the principal and unpaid interest due July 2050 467,126 -
HRF QLICI, NOTE A
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HRF QLICI, NOTE B
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AMCREF COMMUNITY CAPITAL, LLC
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Payable in quarterly, interest-only payments, with the

principal and unpaid interest due July 2050 454,455 -
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NMSC MISSISSIPPI QLICI NOTE

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NMSC FEDERAL QLICI NOTE
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Debt issuance costs (1,598,549) (929,171)

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Total long-term debt 87,171,646 54,962,046

Less current maturities 4,677,629 4,333,848
Long-term debt less current maturities $ 82,494,017 $ 50,628,198
17

Note 4. Continued
Aggregate annual maturities of notes payable outstanding at December 31, 2020 are as follows:
Year Ending December 31, Amount
2021 $ 4,677,629
2022 4,849,512
2023 3,580,561
2024 24,576,826
2025 39,307
Thereafter 51,046,360
Total, excluding debt issuance costs 88,770,195
Total debt issuance costs (1,598,549)
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Total long-term debt $ 87,171,646
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Note 5. Paycheck Protection Program
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During fiscal 2020, the Companies received a loan of $2,205,000 under the Paycheck Protection
Program ("PPP") with a financial institution under the Federal "Cares Act" to provide for the payroll
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payments during the COVID-19 Pandemic. The loan matures April 2022. Borrowings under the loan
bear interest at 1.00 percent. Interest and principal payments are due monthly. The PPP Program
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provides for an initial six-month deferral of payments, which is subsequently deferred by another
10 months. The Company submitted for and received loan forgiveness on July 23, 2021.
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Note 6. Derivatives
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EGT enters into forward purchase and sales contracts ("forward contracts") for the purchase and sale
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of agricultural commodity inventories. Forward contracts are recorded at fair value. Changes in the
fair value of these contracts are recognized in earnings as margin gains and losses. As of
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December 31, 2020 and June 30, 2020, the fair value of forward contracts was $2,658,876 and
($374,471), respectively. To reduce price risk fluctuations, EGT also follows a policy of using
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exchange-traded futures contracts to minimize its net position of merchandisable agricultural

commodity inventories and forward cash purchase and sales contracts. Changes in the fair value of
these investments are recognized in sales as margin gains or losses. As of December 31, 2020 and
June 30, 2020, EGT's fair value of margin assets was $2,480,441 and $2,238,493, respectively. For
the six months ended December 31, 2020, EGT recognized gains of $3,033,347 on forward
contracts which are included in net sales in the statement of income. For the six months ended
December 31, 2020, EGT recognized losses of $7,362,801 on margin assets which included
unrealized losses of $9,175,649 and realized gains of $1,812,848. Losses on margin assets are
included in cost of goods sold in the statement of income.
18

Note 6. Continued
EGT considers commodities on hand less unpriced grain purchases, priced forward purchases and
sales contracts, and futures contracts when evaluating its net long or short position. EGT utilizes a
standard conversion to convert soybeans to soybean oil and meal and biodiesel to soybean oil. The
following table summarizes the Companies net long (short) position by commodity at
December 31, 2020:
Corn (bushels) (68,182)

Soybeans (bushels) (3,247,765)
Wheat (bushels) (3,000)
Note 7. New Markets Tax Credit Financing
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During 2015, EGT and EGT Processing executed a NMTC transaction, EGT received proceeds to be
used for the purchase of specific equipment, as permitted by the NMTC program. EGT and EGT
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Processing also received below market interest rate loans of $15,080,000 and $1,153,000, bearing
interest at 1.5 percent, and maturing in 2035, respectively. In addition, EGT recorded notes
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receivable for $10,535,782 bearing interest at 1.5 percent, maturing in 2035. In order to comply
with the NMTC program, the notes payable and notes receivable are required to be outstanding
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during a seven year, interest only compliance period. If certain conditions are met, EGT and EGT
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Processing will be able to settle the net of all the notes payable and notes receivable for a
discounted amount after the compliance period.
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During 2018, EGT and Express Biodiesel executed a NMTC transaction. EGT received proceeds to be
used for the purchase of specific equipment, as permitted by the NMTC program. EGT and Express
Biodiesel also received below market interest rate loans of $5,000,000 and $6,930,000, bearing
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interest from 1.02 to 1.54 percent and maturing in 2038. In addition, EGT recorded notes receivable
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for $8,368,800 bearing interest at 1.08 percent, maturing in 2036. In order to comply with the
NMTC program, the notes payable and notes receivable are required to be outstanding during a
seven year, interest only compliance period. If certain conditions are met, EGT and Express Biodiesel
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will be able to settle the net of all the notes payable and notes receivable for a discounted amount
after the compliance period. In connection with the NMTC transaction, EGT assigned assets in
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construction in progress of $18,194,241 to Express Biodiesel, as of June 30, 2018. The assets
transferred represent assets critical to the biodiesel operations and were placed in service in March
of 2019.
During 2020, EGT and Leverage Lender executed a NMTC transaction. EGT received proceeds to be
used for the purchase of specific equipment, as permitted by the NMTC program. EGT and Leverage
Lender also received below market interest rate loans of $8,637,200, $8,133,133, $5,000,000,
and $1,111,067, bearing interest at 1.21 percent, maturing in July 2050. In addition, Leverage
Lender recorded notes receivable for $4,850,695 and $12,721,945. In order to comply with the
seven year, interest only compliance period. If certain conditions are met, EGT and Leverage Lender
after the compliance period.
Incremental costs to maintain the transaction structure during the compliance period are expensed
as incurred.
19

Note 7. Continued
Following is a summary of the assets at December 31, 2020 and June 30, 2020 resulting from the
NMTC transactions:
2020 2020
Cash (included in restricted cash) $ 1,858,479 $ 369,455
Notes receivable from Twain
Investment Fund 139, LLC 10,535,782 10,535,782
Notes receivable from Express Biodiesel Greenwood
Investment Fund, LLC 8,368,800 8,368,800
Notes receivable from USBCDC Investment Fund 284, LLC 17,572,640 -
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Total $ 38,335,701 $ 19,274,037
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The above assets are subject to certain risks associated with the compliance requirements of the
applicable NMTC transactions.
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Note 8. Related Party Transactions
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The Companies had an outstanding balance due to an owner at December 31. 2020 and
June 30, 2020 of $6,843,680 and $5,568,680, respectively. The note payable with the related party
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has no stated interest rate or maturity date. The amounts are not expected to be repaid within the
next twelve months and do not bear any interest.
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Note 9. Concentration of Credit Risk

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The Companies generally maintain cash on deposit at banks in excess of federally insured amounts.
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The amount of uninsured bank balances at risk as of December 31, 2020 totaled approximately
$1,555,000. The Companies have not experienced any losses in such accounts.
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Note 10. Commitments
EGT, from time to time, enters into transactions with a third party to sell soybeans at a specific price
and, simultaneously, enter into an agreement to purchase the same quantity of soybeans at a future
date. The terms of the future purchase of soybeans by EGT from the third party do not include a
fixed price and, therefore, no obligation has been recognized by EGT at June 30, 2020. Sales
recognized by EGT under these arrangements totaled approximately $7,332,121 for the six months
ended December 31, 2020. There are no bushels of soybean under forward purchase contracts at
year under these agreements.
Note 11. Subsequent Events
The Companies have evaluated subsequent events through August 30, 2021, the date these
financial statements were available to be issued.
20
SUPPLEMENTARY INFORMATION
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Combining Balance Sheet
December 31, 2020
Express Biodiesel, LLC Express Grain

Express Grain Express Processing, LLC Terminals, LLC
Terminals, LLC and Subsidiary Eliminations Combined
ASSETS
Current assets
Cash and cash equivalents $ 4,007 $ 1,065,182 $ - $ 1,069,189
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Accounts receivable 5,101,237 2,094 - 5,103,331
Inventories 86,562,020 - - 86,562,020
Prepaid expenses 558,213 - - 558,213
Biodiesel tax credit receivable 1,011,859 - - 1,011,859
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Margin assets 2,480,441 - - 2,480,441
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Total current assets 98,376,653 1,067,276 - 99,443,929
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Notes receivable - 70,701,298 34,224,076 36,477,222
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Property and equipment, net 47,050,835 15,564,864 - 62,615,699
Receivable from affiliates 14,907,257 - 14,907,257 -
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Restricted cash 1,204,679 326,900 - 1,531,579
Total assets $ 161,539,424 $ 87,660,338 $ 49,131,333 $ 200,068,429

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Current liabilities
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Accounts payable $ 2,883,851 $ 2,095 $ - $ 2,885,946
Current maturities of long-term debt 4,677,629 - - 4,677,629
Borrowings on line-of-credit 47,239,449 - - 47,239,449
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Unpriced grain purchases 45,145,358 - - 45,145,358

Deferred revenue 5,000,001 - - 5,000,001
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Accrued expenses 314,210 906,673 - 1,220,883

Total current liabilities 105,260,498 908,768 - 106,169,266
Note payable, related party 6,843,680 6,928,198 6,928,198 6,843,680
Long-term debt, less current maturities 68,884,410 47,833,683 34,224,076 82,494,017
Total liabilities 180,988,588 55,670,649 41,152,274 195,506,963
Total members' equity (deficit) (19,449,164) 31,989,689 7,979,059 4,561,466

Total liabilities and members' equity $ 161,539,424 $ 87,660,338 $ 49,131,333 $ 200,068,429
21
Combining Statement of Income

Net sales $ 103,358,997 $ - $ - $ 103,358,997

Cost of goods sold 87,274,427 (678,007) - 86,596,420
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Gross margin 16,084,570 678,007 - 16,762,577
Operating expenses
Depreciation & amortization expense 2,459,090 54,377 - 2,513,467
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Impairment loss 1,000,000 - - 1,000,000
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Other operating expenses 6,945,485 2,529,727 - 9,475,212
Total operating expenses 10,404,575 2,584,104 - 12,988,679
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Operating income (loss) 5,679,995 (1,906,097) - 3,773,898
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Other income 1,282,193 - - 1,282,193
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Interest income - 342,966 (342,966) -
Interest expense (3,014,960) (163,816) 342,966 (2,835,810)
Total other income (expense) nj (1,732,767) 179,150 - (1,553,617)
Net income (loss) $ 3,947,228 $ (1,726,947) $ - $ 2,220,281

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AND AFFILIATES
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Years Ended June 30, 2020 and 2019
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CONTENTS
Combined Statements of Operations 4
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Combined Statements of Members' Equity 5
Combined Statements of Cash Flows 6
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Combining Statement of Operations 20

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and Affiliates (the "Companies") which comprise the combined balance sheets as of June 30, 2020
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and 2019, and the related combined statements of operations, changes in members' equity and
cash flows for the years then ended and the related notes to the combined financial statements.
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the preparation and fair presentation of combined financial statements that are free from material
misstatement, whether due to fraud or error.
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Our responsibility is to express an opinion on these combined financial statements based on our
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misstatement.
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Opinion
respects, the financial position of the Companies as of June 30, 2020 and 2019, and the results of
their operations and their cash flows for the year ended June 30, 2020, in accordance with
accounting principles generally accepted in the United States of America.

The accompanying combined financial statements for the year ended June 30, 2020, have been
prepared assuming that the Companies will continue as a going concern. As discussed in Note 1 to
the combined financial statements, the Companies have accumulated losses of approximately
$21,600,000 since its inception and their total current liabilities exceed total current assets at
June 30, 2020. The biodiesel facility was placed into service during fiscal 2019 but has not operated
at full capacity. The Companies have a line-of-credit with a balance at June 30, 2020 of
approximately $24.6 million that matures within the next twelve months. These conditions raise
substantial doubt about the Companies' ability to continue as a going concern. Management's plans
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concerning these matters are also discussed in Note 1 to the combined financial statements. The
combined financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.
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Other Matter
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May 20, 2021
2
June 30, 2020 and 2019
2020 2019
ASSETS
Current assets
Cash $ 846,382 $ 641,737
Inventories 14,756,192 16,820,642
Prepaid expenses 542,094 1,141,353
Biodiesel tax credit receivable 1,541,352 -
Forward contracts - 3,394,322
Margin assets 2,238,493 1,577,888
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Restricted cash 369,455 561,455
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Total assets $ 102,053,818 $ 107,358,664
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Current liabilities
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Current maturities of long-term debt 4,333,848 3,035,488

Forward contracts 374,471 -
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Unpriced grain purchases 8,671,337 234,016

Deferred revenue 2,412,781 2,173,002
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Accrued expenses 597,705 576,562

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Note payable, related party 5,568,680 3,435,965

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Members' equity 2,341,185 23,567,571
3
Combined Statements of Operations
2020 2019
Net sales $ 166,243,623 $ 141,471,072

Cost of goods sold 153,206,190 118,058,322
Gross margin 13,037,433 23,412,750
Operating expenses
Depreciation & amortization expense 7,229,293 3,993,901
Impairment loss 13,258,995 -
Other operating expenses 13,537,451 9,468,469
Total operating expenses 34,025,739 13,462,370
Operating income (loss) (20,988,306) 9,950,380
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Other income 2,023,856 231,109
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Interest expense (2,261,936) (3,870,455)
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Total other expense (238,080) (3,639,346)
Net income (loss)

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4
Combined Statements of Members' Equity
Members'
Equity
Balance, July 1, 2018 $ 16,756,537

Contributions 500,000
Balance, June 30, 2019 23,567,571

Net loss (21,226,386)
Balance, June 30, 2020 $ 2,341,185
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Combined Statements of Cash Flows
2020 2019

Net income (loss) $ (21,226,386) $ 6,311,034
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation and amortization 7,229,293 3,993,901
Impairment loss on property and equipment 13,258,995 -
Margin asset (660,605) 1,300,658
Accounts receivable (1,804,332) 2,903,096
Inventories 2,064,450 1,503,390
Biodiesel tax credit receivable (1,541,352) -
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Grain payable 8,437,321 (56,632)
Forward contracts 3,768,793 (5,877,110)
Prepaid expenses 599,259 (125,267)
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Accounts payable and accrued expenses 934,826 628,748
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Deferred revenue 239,779 (1,228,834)
Net cash provided by operating activitiesla 11,300,041 9,352,984

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Purchases of property and equipment (16,725,340) (9,525,578)
Net cash used in investing activities (16,725,340) (9,525,578)
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Net decrease in borrowings on line-of-credit 4,246,171 (4,143,772)
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Proceeds from long-term borrowings 2,205,000 -

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Proceeds from related-party borrowings 3,910,000 3,435,965

Payment on related-party borrowings (1,777,285) -
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Principal payment on long-term borrowings (3,053,442) (262,021)

Payment of debt issuance costs (92,500) -
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Members' contributions - 500,000

Net cash provided by (used in) financing activities 5,437,944 (469,828)
Increase (decrease) in cash and restricted cash 12,645 (642,422)
Cash and restricted cash at beginning of year 1,203,192 1,845,614
Cash and restricted cash at end of year $ 1,215,837 $ 1,203,192
Noncash investing and financing activities

Notes payable for equipment $ 245,604 $ 42,850

Cash paid for interest $ 2,474,753 $ 3,764,529
6
June 30, 2020 and 2019

selling soybeans, soybean oil, wheat and feed. EGT mills soybeans at its Greenwood facility. The
products produced from the milling process include soybean oil, soybean meal and soybean hulls. In
addition, the Greenwood facility produces biodiesel utilizing soybean oil from the milling process.
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Plan of Operation
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The Companies have accumulated losses of approximately $21.6 million since its inception and their
total current liabilities exceed total current assets at June 30, 2020. As described in Note 4, EGT has
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a $35 million revolving line-of-credit (the "LOC") and a $25.2 million term loan (the "Term Loan") as
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of June 30, 2020 that matured November 30, 2020. On December 17, 2020, the Company
amended the LOC to a $40 million LOC maturing October 31, 2021 and the Term Loan to a $35
million loan maturing October 31, 2023. See Note 11 for more details. EGT continues to invest in its
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Greenwood biodiesel facility which began operations on March 28, 2019. After a brief period of
operation, the biodiesel facility was idled to make process improvements and was placed back into
operation in December 2019, but not operating at full capacity. The Companies' ability to meet
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their future commitments is significantly dependent upon the profitability of their biodiesel
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operations and ability to renew and extend its LOC. There can be no assurances that the Companies
will have sufficient cash flows from its biodiesel operations to meet their future commitments or that
they will be able to renew or extend the line of credit under acceptable terms. These conditions raise
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substantial doubt about the Companies' ability to continue as a going concern.

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Use of Estimates
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June 30, 2020 and 2019

Note 1. Continued
Accounts Receivable
Management has not recorded an allowance for doubtful accounts at June 30, 2020 or 2019.
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Inventories
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soybean oil, soybean meal and soybean hulls that are readily convertible to cash because of their
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Codification ("ASC") 905, Agriculture. The Companies also have biofuel inventories, which are state
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at the lower of cost or market. Cost is determined using primarily the weighted-average cost method.
Renewable Identification Numbers

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When the Companies produce and sell a gallon of biomass-based diesel, 1.5 renewable
identification numbers (“RIN”) per gallon are generated. RINs are used to track compliance with the
renewable fuel standard (“RFS2”). RFS2 allows the Companies to attach between zero and 2.5 RINs
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to a gallon of biomass diesel. As a result, a portion of the selling price for the biomass-diesel is
generally attributable to RRS2 compliance. However, RINs that the Companies generate are a form
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of government incentive and not a result of the physical attributes of the biomass-based diesel
production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether
transferred with the biomass-based diesel produced or held by the Companies pending attachment
to other biomass-based diesel.
Margin Assets
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June 30, 2020 and 2019

Note 1. Continued
Asset Impairments
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Notes Receivable
The notes receivable relate to Leverage Lender's receivable from a non-related entity entered into in
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Note 7. The notes bear interest at 1.08 to 1.54 percent and are carried at net realizable value. The
note, maturing November 19, 2035, requires quarterly, interest only payments through March 2023
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with the principal and unpaid interest due November 19, 2035. The note, maturing May 10, 2036,
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requires quarterly, interest only payments through May 2025 with quarterly principal and interest
payments commencing September 10, 2025 through May 10, 2036.
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Debt Issuance Costs
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June 30, 2020 and 2019

Note 1. Continued
June 30, 2020 and 2019.
Revenue Recognition
Sales of agricultural commodities are recognized when persuasive evidence of an arrangement

exists, the price is determinable, the product has been delivered, title to the product and risk of loss
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transfer to the customer, which is dependent on the agreed upon sales terms with the customer and
when collection of the sales price is reasonably assured. Sales terms provide for passage of title
either at the time and point of shipment or at the time and point of delivery of the product being sold.
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Shipping and handling costs are included in cost of sales.
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Income Taxes
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no provision or liability for income taxes has been included in the financial statement of the
Companies.
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June 30, 2020 and 2019

Note 1. Continued
inventories $ - $ 14,304,882 $ - $ 14,304,882
Margin assets 2,238,493 - - 2,238,493
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Unpriced grain
purchases - (8,671,337) - (8,671,337)
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Total $ 1,864,022 $ 5,633,545 $ - $ 7,497,567
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inventories $ - $ 16,766,642 $ - $ 16,766,642
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Margin assets 1,577,888 - - 1,577,888

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Unpriced grain
purchases - (234,016) - (234,016)
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Total $ 4,972,210 $ 16,532,626 $ - $ 21,504,836
that the non-financial instrument be recorded at the lower of historical cost or its fair value. The
Companies determined certain biodiesel and soybean processing assets were impaired at the
June 30, 2020. The impairment of approximately $13 million was determine primarily utilizing a
sales comparison approach which the Companies determined to be at Level 2 in the fair value
hierarchy.
In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from
Contracts with Customers (Topic 606), which clarifies the principles for recognizing revenue. This
11
June 30, 2020 and 2019

Note 1. Continued
in exchange for those goods or services. The Companies were required to adopt ASU 2014-09 as of
July 1, 2019, fiscal year 2020. In June 2020, the FASB issued ASU 2020-05, Effective Dates for
Certain Entities, which provides entities that had yet to issue financial statements reflecting the
adoption of ASU 2014-09 to defer the required adoption of ASU 2014-09 for one year. As a result of
the Companies' adoption of ASU 2020-05, the Companies will be required to adopt ASU 2014-09 for
their 2021 annual financial statements. The Companies are currently evaluating the impact of
ASU 2014-09 on the Companies' financial condition, results of operations and cash flows.
In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted
Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for
both financial and non-financial risk components, aligns the recognition and presentation of the
effects of hedging instruments and hedge items in the financial statements, and includes certain
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targeted improvements to ease the application of current guidance related to the assessment of
hedge effectiveness. ASU 2017-12 is effective for the Companies for fiscal years beginning after
December 15, 2019. Early adoption is permitted. The Companies have not yet evaluated the impact
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of this standard on its financial statements and related disclosures.
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In April 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
(a consensus of the Emerging Issues Task Force), which states amounts generally described as
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restricted cash and restricted cash equivalents should be included with cash and cash equivalents
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when reconciling the beginning and end of year total amounts shown on the statement of cash flows.
ASU 2016-18 is effective for the Companies for the fiscal year beginning July 1, 2019 and for all
years presented on the financial statements. The following table provides a reconciliation of cash,
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cash equivalents and restricted cash reported within the combined balance sheet that sums to the
total of the same such amounts shown on the combined statement of cash flows.
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June 30,
2020 2019
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Cash and cash equivalents $ 846,382 $ 641,737

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Total cash, cash equivalents and restricted cash shown

in the statement of cash flows $ 1,215,837 $ 1,203,192
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Property and equipment consisted of the following at June 30, 2020 and 2019:
2020 2019
Buildings 917,709 716,863
Biodiesel facility 11,533,136 14,194,218
Construction in progress 67,023 2,710,026
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June 30, 2020 and 2019

Note 2. Continued
The Company obtained an appraisal of its property and equipment subsequent to year-end as a
result of ongoing losses from its biodiesel operations. In accordance with ASC 360, Property, Plant
and Equipment, the Companies evaluated their fixed assets for impairment at the lowest level for
which identifiable cash flows were largely independent of the cash flows of other assets and
liabilities. Based on this appraisal, the carrying value of the property and equipment associated with
the biodiesel and soybean processing facility was determined to be impaired and was written down
by approximately $13 million to their estimated fair value as of June 30, 2020. There was no
impairment recognized related to the Companies grain storage facility assets.
Note 3. Inventories
Inventories at June 30, 2020 and 2019 were as follows:
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2020 2019
Soybeans $ 6,034,377 $ 9,325,047
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Soybean oil 3,362,115 2,091,689
Soybean meal 4,361,635 2,484,639
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Corn 388,431 2,069,700
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Wheat 51,224 53,155
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Feed 216,692
Biodiesel 406,310 -
Other 45,000 54,000
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$ 14,756,192 $ 16,820,642
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Note 4. Line-of-Credit and Long-term Debt

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EGT has a LOC that provides for a maximum of $35,000,000 in available borrowings at
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June 30, 2020 and 2019. Effective February 15, 2019, the LOC was amended to, among other
things, convert $28,000,000 of the borrowings on the LOC to a term loan maturing
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September 2020. As of June 30, 2020, the maturity date for the term loan was
November 30, 2020. On December 17, 2020, the Company amended its agreement to convert a
portion of its outstanding borrowings on the LOC to the Term Loan, increasing the principal amount
of the Term Loan to $35,000,000, with a maturity date of October 31, 2023. The amendment also
increased the LOC to provide for a maximum of $40,000,000 in available borrowings, with a maturity
date of October 31, 2021. See Note 11 for further discussion. Borrowings bear interest at variable
rates based on LIBOR plus the applicable margin (4.42 percent at June 30, 2020). Substantially all
assets of EGT collateralize borrowings under the LOC and term loan. At June 30, 2020, outstanding
borrowings under the LOC were $24,662,990. The LOC matures November 30, 2020. However, the
LOC may be canceled at any time, at the sole discretion of the lender. The LOC requires EGT
maintain a tangible net worth, as defined, of not less than $20,000,000 and a minimum debt
service ratio of 1.25:1.00. As of June 30, 2020, EGT was not in compliance with the tangible net
worth or the minimum debt service requirement. The December 17, 2020 amendment required EGT
to have a tangible net worth of at least $16,000,000 as of December 31, 2020 and a debt service
coverage of 1.25:1.00. EGT was not in compliance with these covenants as of December 31, 2020.
Finally, the LOC limits the number of un-hedged commodities contracts to be held by EGT. EGT held
long positions for certain commodities exceeding limits allowed under the LOC, which represents an
event of default. These violations related to un-hedged commodities as of June 30, 2020 were
waived.
13
June 30, 2020 and 2019

Note 4. Continued
The following is a summary of long-term debt at June 30, 2020 and 2019:
2020 2019
CAT FINANCIAL
December 2022 149,889 -
CHASE AUTO
November 2024 23,620 -
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STATE BANK NOTE
Payable in monthly, interest free payments through April
2026 31,823 -
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2035 3,941,006 3,941,006
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2035 1,938,994 1,938,994

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2035 5,441,776 5,441,776
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2035 2,605,224 2,605,224

2035 1,153,000 1,153,000
EGT STATE FUND, LLC
2035 1,153,000 1,153,000
14
June 30, 2020 and 2019

Note 4. Continued
2020 2019
May 2038 $ 3,662,000 $ 3,662,000
2025 through May 2038 1,338,000 1,338,000
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May 2038 4,706,800 4,706,800
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2025 through May 2038 la 1,764,560 1,764,560
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May 2025 458,640 458,640
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UMB TERM LOAN

$700,000 beginning July 1, 2019 through November 2020
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with remaining principal and accrued and unpaid interest

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due November 2020 25,200,000 28,000,000

PAYROLL PROTECTION PROGRAM LOAN
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Payable in monthly, principal and interest payments of

$124,113 beginning November 2020 through April 2022 2,205,000 -
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Debt issuance costs (929,171) (1,101,855)

Less current maturities 4,333,848 3,035,488
15
June 30, 2020 and 2019

Note 4. Continued
Aggregate annual maturities of notes payable outstanding at June 30, 2020, based upon the
amended terms , are as follows:
Year Ending June 30, Amount
2021 $ 4,333,848
2022 4,785,762
2023 3,537,485
2024 15,060,632
2025 5,485
Total debt issuance costs (929,171)
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Note 5. Paycheck Protection Program
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During fiscal 2020, the Companies received a loan of $2,205,000 under the Paycheck Protection
Program ("PPP") with a financial institution under the Federal "Cares Act" to provide for the payroll
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payments during the COVID-19 Pandemic. The loan matures April 2022. Borrowings under the loan
bear interest at 1.00 percent. Interest and principal payments are due monthly. The PPP Program
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provides for an initial six-month deferral of payments, which is subsequently deferred by another
10 months. The Company is in the process of submitting its application for forgiveness for the PPP
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loan but has not done so as of the report date. Therefore, the loan is included in debt on the
combined balance sheets and classified as current and non-current debt based on the assumption it
will not be forgiven.
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Note 6. Derivatives
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June 30, 2020 and 2019, the fair value of forward contracts was ($374,471) and $3,394,322,
respectively. To reduce price risk fluctuations, EGT also follows a policy of using exchange-traded
futures contracts to minimize its net position of merchandisable agricultural commodity inventories
and forward cash purchase and sales contracts. Changes in the fair value of these investments are
recognized in sales as margin gains or losses. As of June 30, 2020 and 2019, EGT's fair value of
margin assets was $2,238,493 and $1,577,888, respectively. During 2020 and 2019, EGT
recognized losses of $3,768,792 and gains of $5,877,109, respectively, on forward contracts.
During 2020 and 2019, EGT recognized losses of $2,172,876 and gains of $2,664,119,
respectively, on margin assets. These amounts are included in cost of goods sold in the statements
of operations.
Unrealized gains related to EGT's open positions on exchange traded futures contracts totaled
$555,040 and $308,790 at June 30, 2020 and 2019, respectively. Management did not meet the
designation and documentation requirements to account for these transactions as hedge
derivatives. Accordingly, the unrealized gains are recognized in cost of goods sold in the
accompanying statements of operations.
16
June 30, 2020 and 2019

Note 6. Continued
standard conversion to convert soybeans to soybean oil and meal and biodiesel to soybean oil. The
following table summarizes the Companies net long (short) position by commodity at June 30, 2020:

Soybeans (bushels) 1,492,486
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of 2019.
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as incurred.
Following is a summary of the assets at June 30, 2020 and 2019 resulting from the NMTC
transactions:
2020 2019
Cash (included in restricted cash) $ 369,455 $ 561,455
Total $ 19,274,037 $ 19,736,037
17
June 30, 2020 and 2019

EGT had no purchases of inventories, in the normal course of business, from its owners during the
years of June 30, 2020 and 2019. EGT had no payables to owners for inventory purchases at June
30, 2020 or 2019.
The Companies had an outstanding balance due to an owner at June 30, 2020 and 2019 of
$5,568,680 and $3,435,965, respectively. The note payable with the related party has no stated
interest rate or maturity date. The amounts are not expected to be repaid within the next twelve
months and do not bear any interest.
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The amount of uninsured bank balances at risk as of June 30, 2020 totaled approximately
$468,111. The Companies have not experienced any losses in such accounts.
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Note 10. Commitments
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recognized by EGT under these arrangements totaled approximately $52,392,972 for the year
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ended June 30, 2020. In connection with these agreements, EGT had 2,350,000 bushels of
soybeans under forward purchase contracts at June 30, 2020 priced under basis contracts.
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Subsequent to the balance sheet date, EGT and Leverage Lender executed a NMTC transaction. EGT
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received proceeds to be used for the purchase of specific equipment, as permitted by the NMTC
program. EGT and Leverage Lender also received below market interest rate loans of $8,637,200,
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$8,133,133 and $5,000,000, bearing interest rates of 1.21 percent, maturing in July 2050. In
addition, Leverage Lender recorded notes receivable for $4,850,695 and $12,721,945. In order to
comply with the NMTC program, the notes payable and notes receivable are required to be
outstanding during a seven year, interest only compliance period. If certain conditions are met, EGT
and Leverage Lender will be able to settle the net of all the notes payable and notes receivable for a
Also subsequent to the balance sheet date, on December 17, 2020, the Companies amended their
agreement for their LOC and Term Loan to convert a portion of the outstanding LOC to the Term
Loan, increasing the principal amount of the Term Loan to $35,000,000, with a maturity date of
October 31, 2023. The amendment also increased the LOC to provide for a maximum of
$40,000,000 in available borrowings, with a maturity dates of October 31, 2021.
The Companies have evaluated subsequent events through May 20, 2021, the date these financial
statements were available to be issued.
18
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June 30, 2020

ASSETS
Current assets
Cash and cash equivalents $ 5,376 $ 841,006 $ - $ 846,382
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Inventories 14,756,192 - - 14,756,192
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Biodiesel tax credit receivable 1,541,352 - - 1,541,352
Margin assets 2,238,493 - - 2,238,493
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Total current assets 22,918,132 843,100 - 23,761,232
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Restricted cash 9,956,075 (1,607,061) 7,979,559 369,455
Total assets $ 79,893,518 $ 47,902,362 $ 25,742,062 $ 102,053,818
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Current liabilities nj
Accounts payable $ 2,460,627 $ 1,996 $ - $ 2,462,623
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Forward contracts 374,471 - - 374,471
Borrowings on line-of-credit 24,662,990 - - 24,662,990
Unpriced grain purchases 8,671,337 - - 8,671,337
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Accrued expenses 339,589 258,116 - 597,705
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Note payable, related party 5,568,680 - - 5,568,680
Total members' equity (7,114,940) 17,435,684 7,979,559 2,341,185

19
Combining Statement of Operations
Year Ended June 30, 2020

Net sales $ 166,243,623 $ - $ - $ 166,243,623

Cost of goods sold 152,715,075 491,115 - 153,206,190
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Gross margin 13,528,548 (491,115) - 13,037,433
Operating expenses
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Depreciation & amortization expense 5,047,917 2,181,376 - 7,229,293
Impairment loss 9,693,369 3,565,626 - 13,258,995
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Other operating expenses 12,912,094 625,357 - 13,537,451
Total operating expenses 27,653,380 6,372,359 - 34,025,739
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Operating loss (14,124,832) (6,863,474) - (20,988,306)
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Other income 2,023,856 - - 2,023,856
Interest income - 362,036 (362,036) -
Interest expense nj (2,337,946) (286,026) 362,036 (2,261,936)
Total other income (expense) (314,090) 76,010 - (238,080)
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Net loss $ (14,438,922) $ (6,787,464) $ - $ (21,226,386)
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20
AND AFFILIATES
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CONTENTS
Independent Auditor’s Report 1–2
Combined Statement of Operations 4
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Combined Statement of Members’ Equity 5
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INDEPENDENT AUDITOR’S REPORT

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and Affiliates (the “Companies”) which comprise the combined balance sheets as of June 30, 2019
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and 2018, and the related combined statements of operations, changes in members’ equity and
cash flows for the years then ended and the related notes to the financial statements.
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Management’s Responsibility for the Financial Statements
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Auditor’s Responsibility
Our responsibility is to express an opinion on these combined financial statement based on our
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misstatement.
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disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
relevant to the entity’s preparation and fair presentation of the financial statements in order to
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
Opinion

the combined financial statements, the Companies have accumulated losses of approximately
$14,000,000 since its inception and their total current liabilities exceed total current assets at June
30, 2019. The Companies have a line-of-credit and a term loan with balances at June 30, 2019 of
approximately $20 million and $28 million, respectively, which mature within the next twelve
months. These conditions raise substantial doubt about the Companies’ ability to continue as a
going concern. Management’s plans concerning these matters are also discussed in Note 1 to the
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combined financial statements. The combined financial statements do not include any adjustments
that might result from the outcome of this uncertainty. Our opinion is not modified with respect to
this matter.
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Other Matter
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December 31, 2019
2
AND AFFILIATES
June 30, 2019 and 2018
2019 2018
ASSETS
Current assets
Cash $ 641,737 $ 1,225,214
Inventories 16,820,642 18,324,032
Prepaid expenses 1,141,353 841,588
Forward contracts 3,394,322 -
Margin assets 1,577,888 2,878,546

Prepaid expenses, noncurrent - 174,498
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Total assets $ 107,358,664 $ 101,908,065
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Current liabilities
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Current maturities of long-term debt 3,035,488 235,488
Forward contracts - 2,482,788
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Unpriced grain purchases 234,016 290,648
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Deferred revenue 2,173,002 944,168
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Note payable, related party 3,435,965 -

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Members' equity 23,567,571 16,756,537

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3
AND AFFILIATES
Combined Statement of Operations
2019 2018
Net sales $ 141,471,072 $ 130,729,900

Gross margin 23,412,750 3,859,327
Operating expenses
Operating income (loss) 9,950,380 (6,747,662)

Other income 231,109 134,028
Total other expense (3,639,346) (2,585,488)
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Net income (loss) $ 6,311,034 $ (9,333,150)
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4
AND AFFILIATES
Members'
Equity
Balance, July 1, 2017 $ 18,814,687

Net loss (9,333,150)
Contributions 7,275,000
Balance, June 30, 2018 16,756,537

Contributions 500,000
Balance, June 30, 2019 $ 23,567,571
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5
AND AFFILIATES
2019 2018

Net income (loss) $ 6,311,034 $ (9,333,150)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Margin asset 1,300,658 (981,647)
Accounts receivable 2,903,096 (1,844,094)
Inventories 1,503,390 14,300,517
Restricted cash 58,945 (290,400)
Grain payable (56,632) (151,785)
Forward contracts (5,877,110) 2,222,131
Prepaid expenses (125,267) (585,617)
Accounts payable and accrued expenses 628,748 (189,419)
Deferred revenue (1,228,834) 944,168
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Net cash provided by operating activities 9,411,929 6,740,919
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Increase in notes receivable - (8,368,800)
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Net decrease in borrowings on line-of-credit (4,143,772) (3,189,694)
Proceeds from long-term borrowings - 12,310,981
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Proceeds from related-party borrowings 3,435,965 -
Principal payment on long-term borrowings (262,021) (91,417)
Payment of debt issuance costs - (747,685)
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Members' contributions 500,000 7,275,000

Net cash provided by financing activities (469,828) 15,557,185
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Increase (decrease) in cash (583,477) 994,720

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Cash at beginning of year 1,225,214 230,494
Cash at end of year $ 641,737 $ 1,225,214

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6
AND AFFILIATES
June 30, 2019 and 2018

Express Grain Terminals, LLC, (“EGT”), a limited liability company, is a registered grain storage facility
selling soybeans, soybean oil, wheat and feed. In addition, EGT mills soybeans at its Greenwood
facility. The products produced from the milling process include soybean oil, soybean meal and
soybean hulls.
accounts of Express Biodiesel, LLC (“Express Biodiesel”), Express Processing, LLC (“EGT Processing”)
and its 95 percent owned subsidiary, EGT Leverage Lender, LLC (“Leverage Lender”) (collectively, the
“Companies”). EGT Processing and Leverage Lender were formed in 2015 and Express Biodiesel
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was formed in 2018 in connection with EGT’s New Markets Tax Credit (“NMTC”) Financing as more
fully described in Note 6. EGT and these entities share similar ownership. All significant
intercompany balances and transactions have been eliminated in combination.
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Plan of Operation
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The Companies have accumulated losses of approximately $14 million since its inception and their
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total current liabilities exceed total current assets at June 30, 2019. As described in Note 4, EGT has
a $35 million revolving line-of-credit (the “Credit Facility”) that matures October 31, 2020 and a $28
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million term loan (the “Term Loan”) that matures September 1, 2020. EGT continues to invest in its
Greenwood Biodiesel facility which began operations on March 28, 2019. After a brief period of
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operation, the biodiesel facility was idled to make process improvements and was placed back into
operation in December 2019, but not operating at full capacity. The Companies utilized certain
assets of their biodiesel plant in Greenwood as collateral for the long-term financing. The
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Companies’ ability to meet their future commitments is significantly dependent upon the profitability
of their biodiesel operations and ability to renew and extend its Credit Facility. Management expects
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the biodiesel facility to be fully operational in January 2020. There can be no assurances that the
Companies will have sufficient cash flows from its biodiesel operations to meet their future
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commitments or that they will be able to renew or extend the Credit Agreement and Term Loan under
acceptable terms. These conditions raise substantial doubt about the Companies’ ability to continue
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as a going concern.
Use of Estimates
in the United States of America requires the Companies’ management to make estimates and
and expenses during the reporting period. Specifically, the Companies’ management utilizes certain
7
AND AFFILIATES
June 30, 2019 and 2018

Note 1. Continued
Accounts Receivable
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Inventories
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soybean oil, soybean meal, and soybean hulls that are readily convertible to cash because of their
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commodity characteristics, widely available markets and pricing mechanisms. All of EGT’s
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the guidelines described in Financial Accounting Standards Board (“FASB”) Accounting Standards
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Codification (“ASC”) 905, Agriculture.
Margin Assets
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Asset Impairments
8
AND AFFILIATES
June 30, 2019 and 2018

Note 1. Continued
measured based on the difference between the asset’s fair value and its carrying value.
The Companies have construction in process of $2,710,026 at June 30, 2019 related to their
biodiesel facility. The total net book value of the biodiesel facility was $16,140,693 at
June 30, 2019. As referenced in Note 2, the Companies incurred an additional $7.6 million
subsequent to June 30, 2019 to complete the projects. Management completed its estimates of
undiscounted cash flow related to the biodiesel assets and determined no impairment existed.
Operations began March 28, 2019, but after a brief period of operation, was idled to make process
improvements and was placed back into operation in December 2019, but not operating at full
capacity. There can be no assurances that future cash flows will be sufficient to recover the
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investments in the biodiesel facility.
Notes Receivable
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The notes receivable relate to Leverage Lender’s receivable from a non-related entity entered into in
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All of EGT’s derivatives are designated as non-hedge derivatives. The futures and options contracts
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Debt Issuance Costs
June 30, 2019 and 2018.
9
AND AFFILIATES
June 30, 2019 and 2018

Note 1. Continued
Revenue Recognition

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Income Taxes
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Companies.

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Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
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820, Fair Value Measurements and Disclosure, (“ASC 820”) establishes a three-level hierarchy for
fair value measurements. The hierarchy is based upon the transparency of inputs to the valuation of
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an asset or liability as of the measurement date. The classification of fair value within the hierarchy
is based upon the lowest level of input that is significant to the measurement. For Level 1, the
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adjustments for differences in local markets where EGT’s inventories are located (Level 2).
10
AND AFFILIATES
June 30, 2019 and 2018

Note 1. Continued
The following table presents information about the assets and liabilities recorded at fair value at
June 30, 2019:

inventories $ - $ 16,766,642 $ - $ 16,766,642
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Margin assets 1,577,888 - - 1,577,888
Unpriced grain
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purchases - (234,016) - (234,016)
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Total $ 4,972,210 $ 16,532,626 $ - $ 21,504,836
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June 30, 2018:
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inventories $ - $ 18,274,532 $ - $ 18,274,532
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Margin assets 2,878,546 - - 2,878,546

Forward contracts (2,482,788) - - (2,482,788)
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Unpriced grain
purchases - (290,648) - (290,648)
Total $ 395,758 $ 17,983,884 $ - $ 18,379,642
The majority of the Companies’ non-financial instruments, which include property and equipment,
that the non-financial instrument be recorded at the lower of historical cost or its fair value.
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from
11
AND AFFILIATES
June 30, 2019 and 2018

Note 1. Continued
in exchange for those goods or services. The Companies will be required to adopt ASU 2014-09 as of
July 1, 2019, fiscal year 2020. The Companies are currently evaluating the impact of ASU 2014-09
on the Companies’ financial condition, results of operations and cash flows
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Buildings 716,863 500,815
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Biodiesel facility 14,194,218 -
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Construction in progress 2,710,026 18,895,009

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Subsequent to year end, EGT incurred capital expenditures, totaling approximately $7.6 million, to
complete the construction in progress. The Companies capitalized $193,347 and $266,970 of
interest in connection with the construction in progress in 2019 and 2018, respectively.
12
AND AFFILIATES
June 30, 2019 and 2018

Note 3. Inventories

2019 2018
Soybeans $ 9,325,047 $ 9,997,319
Soybean oil 2,091,689 2,970,038
Soybean meal 2,484,639 3,678,231
Corn 2,069,700 -
Wheat 53,155 144,055
Feed 216,692 708,413
Other 54,000 49,500
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$ 16,820,642 $ 18,324,032
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Note 4. Credit Facility and Long-term Debt
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EGT has a Credit Facility that provides for a maximum of $35,000,000 and $55,000,000 in
available borrowings at June 30, 2019 and 2018, respectively. At June 30, 2018, outstanding
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borrowings under the Credit Facility exceeded available borrowings. Effective February 15, 2019,
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the Credit Facility was amended to, among other things, convert $28,000,000 of the revolving line-
of-credit to a term loan maturing September 2020. Borrowings bear interest at variable rates based
on LIBOR plus the applicable margin (6.69 percent at June 30, 2019). Substantially all assets of
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EGT collateralize borrowings under the Credit Facility. At June 30, 2019, outstanding borrowings
under the Revolving Loan were $20,416,819. The revolving line-of-credit matures October 31,
2020. However, the revolving line-of-credit may be canceled at any time, at the sole discretion of the
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lender. The Credit Facility requires EGT maintain a tangible net worth, as defined, of not less than
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$20,000,000 and a minimum debt service ratio of 1.25:1.00. Finally, the Credit Facility limits the
number of un-hedged commodities contracts to be held by EGT. EGT held long positions for certain
commodities, which exceed limits allowed under the Credit Facility, which represents an event of
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default. However, these violations were waived.

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As of March 31, 2018 and June 30, 2018, EGT failed to comply with its debt service coverage ratio
and minimum tangible net worth related to its Revolving Loan. In addition, EGT violated these
financial covenants for the financial quarters ending September 30, and December 31, 2018.
However, these violations were waived.
13
AND AFFILIATES
June 30, 2019 and 2018
Note 4. Continued
2019 2018
2035 3,941,006 3,941,006
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2035 1,938,994 1,938,994
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2035 5,441,776 5,441,776
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2035 2,605,224 2,605,224

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2035 1,153,000 1,153,000

EGT STATE FUND, LLC
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2035 1,153,000 1,153,000

May 2038 3,662,000 3,662,000
2025 through May 2038 1,338,000 1,338,000
14
AND AFFILIATES
June 30, 2019 and 2018

Note 4. Continued

May 2038 4,706,800 4,706,800
2025 through May 2038 1,764,560 1,764,560
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May 2025 458,640 458,640
UMB TERM LOAN
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$700,000 beginning July 1, 2019 through September 2020
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with remaining principal and accrued and unpaid interest due
September 2020 28,000,000 -
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Debt issuance costs (1,101,855) (1,350,235)
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Less current maturities 3,035,488 235,488

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Aggregate annual maturities of notes payable outstanding at June 30, 2019, are as follows:
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Year Ending June 30, Amount

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2020 $ 3,035,488
2021 25,309,156
2022 -
2023 -
2024 -
Total debt issuance costs (1,101,855)
15
AND AFFILIATES
June 30, 2019 and 2018

Note 5. Derivatives
EGT enters into forward purchase and sales contracts (“forward contracts”) for the purchase and
sale of agricultural commodity inventories. Forward contracts are recorded at fair value. Changes in
the fair value of these contracts are recognized in earnings as margin gains and losses. As of
June 30, 2019 and 2018, the fair value of forward contracts was $3,394,322 and ($2,482,788),
recognized in sales as margin gains or losses. As of June 30, 2019 and 2018, EGT’s fair value of
recognized gains of $5,877,109 and losses of $2,222,131, respectively, on forward contracts.
During 2019 and 2018, EGT recognized gains of $2,664,119 and losses of $4,729,664,
respectively, on margin assets. These amounts are included in cost of goods sold in the statements
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of operations.
Unrealized gains (losses) related to EGT’s open positions on exchange traded futures contracts
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totaled $308,790 and $(4,441,201) at June 30, 2019 and 2018, respectively. Management did not
meet the designation and documentation requirements to account for these transactions as hedge
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derivatives. Accordingly, the unrealized gains (losses) are recognized in cost of goods sold in the
accompanying statements of operations.
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standard conversion to convert soybeans to soybean oil and meal. The following table summarizes
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the Companies net long (short) position by commodity at June 30, 2019:
Corn (bushels) 3,003,194

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Soybean meal (tons) 53,217

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Soybean oil (pounds) 27,540,993

Natural gas (MMBTU) 160,000
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AND AFFILIATES
June 30, 2019 and 2018

Note 6. Continued
of 2019.
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as incurred.
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transactions: la 2019 2018
Cash (included in restricted cash) $ 561,455 $ 620,400
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Total $ 19,466,037 $ 19,524,982

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EGT purchased $0 and $62,498 of inventories, in the normal course of business, from its owners
during the year of June 30, 2019 and 2018, respectively. EGT had no payables to owners for
inventory purchases at June 30, 2019 or 2018.
During 2019, an owner advanced $3,435,965 to the Companies for use in operations. The note
payable with the related party has not stated interest rate or maturity date. The amounts are not
expected to be repaid within the next twelve months and do not bear any interest. No amounts owed
to owners were outstanding as of June 30, 2018.
17
AND AFFILIATES
June 30, 2019 and 2018

Note 9. Commitments
The Companies have evaluated subsequent events through December 31, 2019, the date these
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financial statement were available to be issued.
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June 30, 2019

ASSETS
Current assets
Cash and cash equivalents $ 31,087 $ 610,650 $ - $ 641,737
Inventories 15,939,842 880,800 - 16,820,642
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Prepaid expenses 1,141,353 - - 1,141,353
Margin assets 1,577,888 - - 1,577,888
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Restricted cash 10,016,075 (1,475,061) 7,979,559 561,455
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Total assets $ 78,632,018 $ 54,468,708 $ 25,742,062 $ 107,358,664
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Current liabilities
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Accounts payable $ 1,548,940 $ - $ - $ 1,548,940
Borrowings on line-of-credit nj 20,416,819 - - 20,416,819
Unpriced grain purchases 234,016 - - 234,016
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Accrued expenses 541,377 35,185 - 576,562
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Note payable, related party 3,435,965 - - 3,435,965

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Total members' equity 7,320,178 24,226,952 7,979,559 23,567,571
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Net sales $ 141,471,072 $ - $ - $ 141,471,072

Cost of goods sold 116,785,444 1,272,878 - 118,058,322
Gross margin 24,685,628 (1,272,878) - 23,412,750
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Operating expenses
Depreciation & amortization expense 3,440,955 552,946 - 3,993,901
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Other operating expenses 9,377,364 91,105 - 9,468,469
Total operating expenses 12,818,319 644,051 - 13,462,370
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Operating income (loss) 11,867,309 (1,916,929) - 9,950,380
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Other income 231,109 - - 231,109
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Interest income - 398,307 (398,307) -
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Total other income (expense) (3,700,660) 61,314 - (3,639,346)
Net income (loss) $ 8,166,649 $ (1,855,615) $ - $ 6,311,034

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AND AFFILIATES
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CONTENTS
Combined Statement of Operations 4
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Combined Statement of Members' Equity 5
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and Affiliates (the "Companies") which comprise the combined balance sheets as of June 30, 2018
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and 2017, and the related combined statements of operations, changes in members' equity and
cash flows for the years then ended and the related notes to the financial statements.
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Our responsibility is to express an opinion on these combined financial statement based on our
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audit. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audit to obtain
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misstatement.
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Opinion

the combined financial statements, the Companies incurred net losses in 2018 and 2017 totaling
$9,333,150 and $2,400,028, respectively, which raises substantial doubt about the Companies'
ability to continue as a going concern. In addition, borrowings as of June 30, 2018 of $52,560,591
exceed the borrowing base by $7,054,105. Management's plans concerning these matters are also
discussed in Note 1 to the combined financial statements. The combined financial statements do
not include any adjustments that might result from the outcome of this uncertainty. Our opinion is
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not modified with respect to this matter.
Other Matter
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May 6, 2019
2
AND AFFILIATES
June 30, 2018 and 2017
2018 2017
ASSETS
Current assets
Cash $ 1,225,214 $ 230,494
Inventories 18,324,032 32,624,549
Prepaid expenses 841,588 430,469
Margin assets 2,878,546 1,896,899

Prepaid expenses, noncurrent 174,498 -
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Other assets 620,400 330,000
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Total assets $ 101,908,065 $ 92,722,230

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Current liabilities
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Current maturities of long-term debt 235,488 91,416

Forward contracts 2,482,788 260,657
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Borrowings on line of credit 52,560,591 55,750,285

Unpriced grain purchases 290,648 442,433
Deferred revenue 944,168 -
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Members' equity 16,756,537 18,814,687
3
AND AFFILIATES
Combined Statement of Operations
2018 2017
Net sales $ 130,729,900 $ 99,013,286

Gross margin 3,859,327 7,123,380
Operating expenses
Operating loss (6,747,662) (658,920)
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Other income 134,028 95,699
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Net other expense (2,585,488) (1,741,108)
Net loss
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4
AND AFFILIATES
Members'
Equity
Balance, July 1, 2016 $ 19,214,715

Net loss (2,400,028)
Balance, June 30, 2017 18,814,687

Net loss (9,333,150)
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Balance, June 30, 2018 $ 16,756,537
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5
AND AFFILIATES
2018 2017

Net loss $ (9,333,150) $ (2,400,028)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities
Margin asset (981,647) 1,910,917
Accounts receivable (1,844,094) (2,213,103)
Inventories 14,300,517 13,166,679
Other assets (290,400) -
Grain payable (151,785) (769,778)
Forward contracts 2,222,131 2,981,310
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Prepaid expenses (585,617) (95,144)
Accounts payable and accrued expenses (189,419) (429,203)
Deferred revenue 944,168 -
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Net cash provided by (used in) operating activities 6,740,919 14,806,952
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Increase in notes receivable la (8,368,800) -
Proceeds from sale of property and equipment - 48,848
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Net decrease in borrowings on line of credit (3,189,694) (1,277,621)

Proceeds from long-term borrowings 12,310,981 -
Payment on long-term borrowings (91,417) -
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Payment of debt issuance costs (747,685) -

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Members' contributions 7,275,000 2,000,000

Net cash provided by financing activities 15,557,185 722,379
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Increase (decrease) in cash 994,720 157,520

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Cash at beginning of year 230,494 72,974
Cash at end of year $ 1,225,214 $ 230,494


6
AND AFFILIATES
June 30, 2018 and 2017

selling soybeans, soybean oil, wheat and feed. In addition, EGT mills soybeans at its Greenwood
facility. The products produced from the milling process include soybean oil, soybean meal and
soybean hulls.
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Plan of Operation
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As described in Note 4, EGT had a $55 million revolving line-of-credit ("Credit Facility") that matured
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October 31, 2019. As of June 30, 2018, the total outstanding principal amount of EGT's
indebtedness under the Credit Facility was $52,560,591, which exceeded their borrowing base by
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$7 million at year end. EGT also violated their minimum tangible net worth and debt service
coverage ratio covenants as of June 30, 2018. In addition, EGT violated these financial covenants
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for the financial quarters ending September 30, and December 31, 2018. Effective
February 15, 2019, the Credit Facility was amended to, among other things, convert $28,000,000 of
the revolving line-of-credit to a term loan and reduce available borrowings under the revolving line-of-
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credit to $35,000,000. See Note 4 for further discussion regarding amendments to the Credit
Facility.
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The Companies had net losses in 2018 and 2017 totaling $9,333,150 and $2,400,028,
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respectively. EGT continues to invest in its Greenwood facility and began operations of its biodiesel
plant March 28 2019. EGT incurred approximately $3.5 million in capital expenditures, subsequent
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to year end, to complete construction of the biodiesel plant. These capital expenditures were met
through cash flows from operations and borrowings made available through its Credit Facility and
NMTC financing. Any additional expenditures are expected to be met through member contributions.
The Companies utilized certain assets of their biodiesel plant in Greenwood as collateral for the long-
term financing. The Companies' ability to meet their future commitments is significantly dependent
upon their biodiesel operations. There can be no assurances that the Companies will have sufficient
cash flows from its biodiesel operations to meet its future commitments. This potential outcome
results in significant doubt about the Companies' ability to continue as a going concern.
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AND AFFILIATES
June 30, 2018 and 2017

Note 1. Continued
Use of Estimates
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Accounts Receivable
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Inventories
Inventories consist primarily of agricultural commodity inventories, such as feed, wheat, soybeans,
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soybean oil, soybean meal, and soybean hulls that are readily convertible to cash because of their
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Codification ("ASC") 905, Agriculture.
Margin Assets
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AND AFFILIATES
June 30, 2018 and 2017

Note 1. Continued
Asset Impairments
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The Companies have construction in process of $18,194,241 at June 30, 2018. As referenced in
Note 2, the Companies incurred an additional $3.5 million to complete the projects. Future cash
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flows related to these capital investments will depend largely on the Companies biodiesel
operations, which commenced on or about March 28, 2019. There can be no assurances that future
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cash flows will be sufficient to recover the investments in the biodiesel facility.
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Notes Receivable
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The notes receivable relate to Leverage Lender's receivable from a non-related entity entered into in
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Debt Issuance Costs
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AND AFFILIATES
June 30, 2018 and 2017

Note 1. Continued
June 30, 2018 and 2017.
Revenue Recognition
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Income Taxes
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Companies.
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AND AFFILIATES
June 30, 2018 and 2017

Note 1. Continued
June 30, 2018:
inventories $ - $ 18,274,532 $ - $ 18,274,532
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Margin assets 2,878,546 - - 2,878,546
Forward contracts (2,482,788) - - (2,482,788)
Unpriced grain
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purchases - (290,648) - (290,648)
Total $ 395,758 $ 17,983,884 $ - $ 18,379,642
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June 30, 2017:
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inventories $ - $ 32,594,849 $ - $ 32,594,849

Margin assets 1,896,899 - - 1,896,899
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Unpriced grain
purchases - (442,433) - (442,433)
Total $ 1,636,242 $ 32,152,416 $ - $ 33,788,658
that the non-financial instrument be recorded at the lower of historical cost or its fair value.
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AND AFFILIATES
June 30, 2018 and 2017

Note 1. Continued
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from
in exchange for those goods or services. The Companies will be required to adopt ASU 2014-09 as of
July 1, 2019, fiscal year 2020. The Companies are currently evaluating the impact of ASU 2014-09
on the Companies' financial condition, results of operations and cash flows
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Reclassifications
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Certain amounts in the prior year financial statements have been reclassified for comparative
purposes to conform to the presentation in the current year financial statements. These
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reclassifications had no effect on previously reported income or total members' equity.

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2018 2017
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Buildings 500,815 492,815
Construction in progress 18,895,009 7,944,213
Subsequent to year end, EGT incurred capital expenditures, totaling approximately $3.5 million, to
complete the construction in progress. The capital expenditures subsequent to year end were
funded from cash provided by operations and borrowings made available through the line of credit,
NMTC financing, and member contributions. In 2018, the Companies capitalized $266,970 of
interest in connection with the construction in progress.
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AND AFFILIATES
June 30, 2018 and 2017

Note 3. Inventories

2018 2017
Soybeans $ 9,997,319 $ 19,518,013
Soybean oil 2,970,038 1,167,782
Soybean meal 3,678,231 11,193,473
Wheat 144,055 85,213
Feed 708,413 -
Other 49,500 29,700
$ 18,324,032 $ 32,624,549
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Note 4. Credit Facility and Long-term Debt
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EGT has a credit agreement (the "Revolving Loan") that provided for a maximum of $55,000,000 in
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available borrowings. Borrowings bear interest at variable rates based on LIBOR plus the applicable
margin (6.34 percent at June 30, 2018). Substantially all assets of EGT collateralize borrowings
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under the Revolving Loan. At June 30, 2018, outstanding borrowings under the Revolving Loan were
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$52,560,591 and exceeded borrowings available under the Revolving Loan by approximately
$7,000,000. As of March 31, 2018 and June 30, 2018, EGT failed to comply with its debt service
coverage ratio and minimum tangible net worth related to its Revolving Loan. In addition, EGT
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violated these financial covenants for the financial quarters ending September 30, and December
31, 2018. Effective February 15, 2019, the Credit Facility was amended to, among other things,
convert $28,000,000 of the revolving line-of-credit to a term loan maturing September 2020. In
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addition, the financial covenant violations were waived, and the available borrowings under the
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revolving line-of-credit were reduced to $35,000,000. The revolving line-of-credit matures October
31, 2019. However, the revolving line-of-credit may be canceled at any time, at the sole discretion of
the lender. The Credit Facility requires EGT maintain a tangible net worth, as defined, of not less
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than $20,000,000 and a minimum debt service ratio of 1.25:1.00. Finally, the Credit Facility limits
the number of un-hedged commodities contract to be held by EGT.
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AND AFFILIATES
June 30, 2018 and 2017

Note 4. Continued
2018 2017
Payable in quarterly, interest-only payments through March 2023 with
the principal and unpaid interest due November 2023 3,941,006 3,941,006
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the principal and unpaid interest due November 2023
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EGT STATE FUND, LLC
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principal and interest due quarterly from June 2025 through May 2038 3,662,000 -
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principal and interest due quarterly from June 2025 through May 2038 458,640 -
Debt issuance costs (1,350,235) (739,255)
Less current maturities 235,488 91,416
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AND AFFILIATES
June 30, 2018 and 2017

Note 5. Derivatives
June 30, 2018 and 2017, the fair value of forward contracts was $(2,482,788) and ($260,657),
recognized in sales as margin gains or losses. As of June 30, 2018 and 2017, EGT's fair value of
recognized losses of $2,222,131 and $2,981,310, respectively, on forward contracts. During 2018
and 2017, EGT recognized losses of $4,729,664 and gains of $11,739,484, respectively, on margin
assets. These amounts are included in cost of goods sold in the statements of operations.
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Unrealized gains (losses) related to EGT's open positions on exchange traded futures contracts
totaled ($4,441,201) and $1,829,757 at June 30, 2018 and 2017, respectively. Management did
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not meet the designation and documentation requirements to account for these transactions as
hedge derivatives. Accordingly, the unrealized gains (losses) are recognized in cost of goods sold in
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the accompanying statements of operations. la
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standard conversion to convert soybeans to soybean oil and meal. The following table summarizes
the Companies net long (short) position by commodity at June 30, 2018:
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Soybean meal (tons) (96,038)
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Soybean oil (pounds) (1,141,757)

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Processing also received below market interest rate loans of $9,382,782 and $8,379.721, bearing
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AND AFFILIATES
June 30, 2018 and 2017

Note 6. Continued
construction in progress of $18,194,241 to Express Biodiesel. The assets transferred represent
assets critical to the biodiesel operations.
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as incurred.
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transactions:
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Cash (included in other assets) $ 620,400 $ 330,000
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Investment Fund, LLC 8,368,800 -

Total $ 19,524,982 $ 10,865,782
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EGT purchased inventories, in the normal course of business, from its owners during the year of June
30, 2018 and 2017. EGT had no payables to owners for inventory purchases at June 30, 2018 or
2017.
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AND AFFILIATES
June 30, 2018 and 2017

Note 9. Commitments
The Companies have evaluated subsequent events through May 6, 2019, the date these financial
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statement were available to be issued.
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June 30, 2018

ASSETS
Current assets
Cash and cash equivalents $ 30,866 $ 1,194,348 $ - $ 1,225,214
Accounts receivable 4,932,030 - - 4,932,030
Inventories 18,324,032 - - 18,324,032
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Margin assets 2,878,546 - - 2,878,546
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Prepaid expenses, noncurrent 174,498 - - 174,498
Other assets 8,475,248 124,711 7,979,559 620,400
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Total assets $ 71,469,742 $ 56,180,385 $ 25,742,062 $ 101,908,065
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Current liabilities
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Accounts payable $ 1,268,423 $ - $ - $ 1,268,423
Current maturities of long-term debt 235,488 - - 235,488
Borrowings on line of credit 52,560,591 - - 52,560,591
Unpriced grain purchases
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Deferred revenue 944,168 944,168
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Accrued expenses 228,331 - - 228,331
Total current liabilities 58,010,437 - - 58,010,437
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Total members' equity (1,346,471) 26,082,567 7,979,559 16,756,537
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Net sales $ 130,729,900 $ - $ - $ 130,729,900

Cost of goods sold 126,870,573 - - 126,870,573
Gross margin 3,859,327 - - 3,859,327
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Operating expenses
Depreciation & amortization expense 2,650,215 - - 2,650,215
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Other operating expenses 7,956,557 217 - 7,956,774
Total operating expenses 10,606,772 217 - 10,606,989
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Operating loss (6,747,445) (217) - (6,747,662)
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Other income 134,028 - - 134,028
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Interest income - 219,673 (219,673) -
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Total other income (expense) (2,689,710) 104,222 - (2,585,488)
Net income (loss) $ (9,437,155) $ 104,005 $ - $ (9,333,150)

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19

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EXPRESS GRAIN TERMINALS, LLC

Independent Auditor's Report 1–2

Combined Balance Sheets 3

Combined Statement of Income 4

Combined Statement of Cash Flows 6

Combining Statement of Income 22

To the Board of Directors

Emphasis of Matter Regarding Going Concern

December 31, 2020 June 30, 2020

Notes receivable 36,477,222 18,904,582

Accounts payable $ 2,885,946 $ 2,462,623

Borrowings on line-of-credit 47,239,449 24,662,990

Unpriced grain purchases 45,145,358 8,671,337

Accrued expenses 1,220,883 597,705

Note payable, related party 6,843,680 5,568,680

Members' equity 4,561,466 2,341,185

Total liabilities and members' equity $ 200,068,429 $ 102,053,818

See accompanying notes to combined financial statements.

Net sales $ 103,358,997

Operating income 3,773,898

See accompanying notes to combined financial statements.

Balance, July 1, 2020 $ 2,341,185

Balance, December 31, 2020 $ 4,561,466

See accompanying notes to combined financial statements.

Cash flows from operating activities

Increase in notes receivable (17,572,640)

Net cash used in investing activities (24,445,550)

Cash flows from financing activities

Increase in borrowings on line-of-credit 22,576,459

Proceeds from long-term borrowings 33,715,943

Principal payments on long-term borrowings (1,037,323)

Net cash provided by financing activities 55,823,352

Increase in cash and restricted cash 1,384,931

Cash and restricted cash at beginning of year 1,215,837

Cash and restricted cash at end of year $ 2,600,768

Supplemental disclosures of cash flow information

See accompanying notes to combined financial statements.

NOTES TO COMBINED FINANCIAL STATEMENTS

Description of Business and Principles of Combination

NOTES TO COMBINED FINANCIAL STATEMENTS

Cash and Cash Equivalents

Renewable Identification Numbers

NOTES TO COMBINED FINANCIAL STATEMENTS

Property and Equipment

Derivative Instruments and Hedging Activities

Debt Issuance Costs

NOTES TO COMBINED FINANCIAL STATEMENTS

Unpriced Grain Purchases

combined balance sheet as current assets or current liabilities, respectively.

NOTES TO COMBINED FINANCIAL STATEMENTS

Fair Value Measurements

recurring basis at December 31, 2020:

NOTES TO COMBINED FINANCIAL STATEMENTS

determined to be at Level 2 in the fair value hierarchy.

combined statement of cash flows.

NOTES TO COMBINED FINANCIAL STATEMENTS

Recent Accounting Pronouncements

Construction in progress 3,527,258 67,023

Less accumulated depreciation and amortization 15,972,773 13,502,258

Property and equipment, net $ 62,615,699 $ 59,018,549

NOTES TO COMBINED FINANCIAL STATEMENTS

NOTES TO COMBINED FINANCIAL STATEMENTS

RUSTIC VENTURES, LLC NOTE B