BUSINESS SEGMENTS

9 Months Ended

Jul. 31, 2021

12.BUSINESS SEGMENTS

The Company groups its operations into the following two business segments:


Ethanol Production	Ethanol and co-product production and sales
Natural gas pipeline	Ownership and operations of natural gas pipeline

Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The accounting policies for each segment are the same as those described in the summary of significant accounting policies. Segment income or loss does not include any allocation of shared-service costs. Segment assets are those that are directly used in or identified with segment operations. Inter-segment balances and transactions have been eliminated.

The following tables summarize financial information by segment and provide a reconciliation of segment revenue, contribution to operating income (loss), and total assets:


	Three Months Ended				Nine Months Ended
	July 31, 2021		July 31, 2020		July 31, 2021		July 31, 2020
Revenue:	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Ethanol production	$	49,861,642	$	14,039,050	$	110,604,946	$	55,398,271
Natural gas pipeline		540,808		439,448		2,104,291		2,182,563
Eliminations		(421,721)		(313,457)		(1,254,337)		(1,130,544)
Total Revenue	$	49,980,729	$	14,165,041	$	111,454,900	$	56,450,290


	Three Months Ended				Nine Months Ended
	July 31, 2021		July 31, 2020		July 31, 2021		July 31, 2020
Operating Income (Loss):	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Ethanol production	$	4,761,263	$	(4,033,933)	$	2,570,908	$	(13,414,332)
Natural gas pipeline		333,587		203,565		1,158,062		1,102,387
Eliminations		(146,003)		(89,313)		(432,498)		(376,172)
Operating Income (Loss):	$	4,948,847	$	(3,919,681)	$	3,296,472	$	(12,688,117)



	July 31, 2021		October 31, 2020
Assets:	(unaudited)
Ethanol production	$	48,698,549	$	49,613,394
Natural gas pipeline		13,779,335		13,466,787
Total Assets	$	62,477,884	$	63,080,181

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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+ Details

Heron Lake BioEnergy, LLC 10-Q