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Note 20 - Related Party Transactions
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

20.

Related party transactions

 

The Company enters into transactions with companies affiliated with or controlled by a director or significant stockholder. Revenues, expenses, accounts receivable, prepaid amounts, and unpaid amounts related to these transactions are captured on the consolidated financial statements as related party line items. These related party transactions are summarized in the following table and further described below.

 

Related party balance sheet accounts

 

  

2023

  

2022

 

Accounts receivable

        

Biodiesel, petrodiesel, blends and other petroleum products

 $1  $6 

Total accounts receivable

 $1  $6 

Prepaid expenses

        

Administrative services and other

 $12  $12 

Total prepaid expenses

 $12  $12 

Accounts payable

        

Natural gas and fuel purchases

 $-  $7,788 

Travel and administrative services

  42   11 

Total accounts payable

 $42  $7,799 

Accrued liabilities

        

Travel and administrative services

 $-  $1 

Total accrued liabilities

 $-  $1 

 

Related party income statement accounts

 

  

Years ended December 31:

 
  

2023

  

2022

  

2021

 

Revenues

            

Biodiesel, petrodiesel, blends and other petroleum products

 $22  $459  $1,261 

Total revenues

 $22  $459  $1,261 

Cost of goods sold

            

Biodiesel, petrodiesel, blends, and other petroleum products

 $-  $5,425  $5,233 

Natural gas purchases

  (315)  -   11,360 

Total cost of goods sold

 $(315) $5,425  $16,593 

Distribution

            

Distribution and related services

 $176  $174  $176 

Total distribution

 $176  $174  $176 

Selling, general and administrative expenses

            

Commodity trading advisory fees

 $308  $307  $308 

Travel and administrative services

  188   184   221 

Income tax, consulting services and other

  120   120   120 

Total selling, general, and administrative expenses

 $616  $611  $649 

 

Biodiesel, petrodiesel, blends, and other petroleum products

 

The Company enters into agreements to buy and sell biofuels (biodiesel, petrodiesel, biodiesel/petrodiesel blends, RINs, and biodiesel production byproducts) and other petroleum products, such as gasoline, with an affiliate from time to time. Such agreements are priced at the then-current market price of the product as determined from bids from other customers and/or market pricing services. Cost of goods sold related to these sales includes variable costs and allocated fixed costs. The revenue amounts presented in the table above result when the Company sells biodiesel, petrodiesel, blends, and other petroleum products to a related party regardless of who the material was purchased from.  Likewise, cost of goods sold amounts result when biodiesel, petrodiesel, blends, and other petroleum products are purchased from a related party regardless of who the material was sold to.  

 

Natural gas purchases

 

The Company uses natural gas to generate steam for its manufacturing process and to support certain of its air and waste treatment utilities. During 2021, natural gas was purchased through an affiliate provider of natural gas marketing services. Expenses related to these purchases include the cost of the natural gas only; transportation charges were paid to an independent third party. The natural gas matter as discussed in Note 23, Legal proceedings, is in reference to the natural gas supplier, not the related party. The amount shown in 2023 reflects the settlement on the legal matter.

 

Distribution and related services

 

The Company leases oil storage capacity from an affiliate under a storage and throughput agreement. This agreement provides for the storage of biodiesel, diesel or biodiesel/petrodiesel blends, methanol, and biodiesel feedstocks in above-ground storage tankage at designated facilities of the affiliate. Expenses related to this agreement include monthly lease charges, generally on a per-barrel basis, and associated heating, throughput, and other customary terminalling charges.

 

Commodity trading advisory fees

 

The Company entered into a commodity trading advisory agreement with an affiliate. Pursuant to the terms of this agreement, the affiliate provides advice to the Company concerning the purchase, sale, exchange, conversion, and/or hedging of commodities as requested from time to time.

 

Travel and administrative services

 

The Company reimburses an affiliate for legal, trading, travel and other administrative services incurred on its behalf. Such reimbursement is performed at cost with the affiliate realizing no profit on the transaction.

 

Income tax and consulting services

 

An affiliate provides professional services to the Company, primarily in the area of income tax preparation and consulting. The Company also receives certain finance and accounting expertise from this affiliate as requested. Expenses related to these services comprise an agreed quarterly fee plus reimbursement of expense, at cost and are reported as selling, general, and administrative expenses.