Golden Growers Cooperative Files Quarterly Report (10-Q) for Period Ended March 31, 2024

AI Summary

Golden Growers Cooperative (GGROU) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Golden Growers Cooperative filed a Form 10-Q for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The cooperative is incorporated in Minnesota and has its principal executive offices in West Fargo, ND. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. No securities are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Golden Growers Cooperative, this filing contains several important signals. This 10-Q filing provides stakeholders with an update on the cooperative's financial health and operational performance during the first quarter of 2024. The lack of securities registered under Section 12(b) suggests the cooperative may not be publicly traded on major exchanges, impacting investor accessibility and reporting requirements.

Risk Assessment

Risk Level: low — Golden Growers Cooperative shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not indicate any unusual financial distress or significant new risks beyond standard business operations.

Analyst Insight

Review the detailed financial statements within the 10-Q to understand revenue, expenses, and asset/liability changes for Q1 2024.

Key Numbers

• 2024-03-31 — Quarterly Period End Date (Reporting period for the 10-Q)
• 2024-01-01 — Quarterly Period Start Date (Reporting period for the 10-Q)
• 000-53957 — Commission File Number (SEC filing identifier)
• 27-1312571 — IRS Employer Identification No. (Tax identification number)

Key Players & Entities

• Golden Growers Cooperative (company) — Registrant name
• March 31, 2024 (date) — Quarterly period ended
• West Fargo, ND (location) — Principal executive offices
• Minnesota (location) — State of incorporation
• Securities Exchange Act of 1934 (regulation) — Act under which filing is made

FAQ

Risk Factors

• Reporting Requirements [low — regulatory]: The cooperative must comply with SEC regulations for quarterly reporting under the Securities Exchange Act of 1934.
• Agricultural Market Conditions [medium — market]: Performance is subject to fluctuations in agricultural commodity prices, weather patterns, and demand.
• Cooperative Operations [low — operational]: Operational efficiency and member services are critical to the cooperative's success.

Industry Context

Golden Growers Cooperative operates within the agricultural services sector, likely focusing on supporting its member growers through various services and potentially marketing their produce.

Regulatory Implications

The cooperative is subject to the reporting and disclosure requirements of the Securities Exchange Act of 1934, as evidenced by this Form 10-Q filing.

What Investors Should Do

1. Analyze the financial statements for revenue trends, cost of goods sold, and operating expenses.
2. Examine any disclosures regarding significant contracts, commitments, or legal proceedings.
3. Assess the cooperative's liquidity and capital structure based on the balance sheet.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing available in the provided data for Golden Growers Cooperative, so a direct comparison to a prior filing is not possible.

Key Financial Figures

• $18.1 million — Cooperative recognized corn revenue of $18.1 million and $31.3 million, respectively. Disagg
• $31.3 m — nized corn revenue of $18.1 million and $31.3 million, respectively. Disaggregated reve
• $6.5 million — evenue from Method A deliveries totaled $6.5 million and $12.8 million, respectively; and re
• $12.8 m — A deliveries totaled $6.5 million and $12.8 million, respectively; and revenue from M
• $11.6 million — evenue from Method B deliveries totaled $11.6 million and $18.5 million, respectively. 7 N
• $18.5 m — B deliveries totaled $11.6 million and $18.5 million, respectively. 7 NOTE 7 DISTRI
• $1.3 million — oGold LLC for a base price ranging from $1.3 million to $1.7 million, depending on when Carg
• $1.7 m — base price ranging from $1.3 million to $1.7 million, depending on when Cargill notifi

Filing Documents

• form10-q.htm (10-Q) — 313KB
• exhibit31-1.htm (EX-31.1) — 8KB
• exhibit32-1.htm (EX-32.1) — 3KB
• 0001826466-24-000063.txt ( ) — 2302KB
• ggro-20240331.xsd (EX-101.SCH) — 21KB
• ggro-20240331_cal.xml (EX-101.CAL) — 28KB
• ggro-20240331_def.xml (EX-101.DEF) — 44KB
• ggro-20240331_lab.xml (EX-101.LAB) — 160KB
• ggro-20240331_pre.xml (EX-101.PRE) — 123KB
• form10-q_htm.xml (XML) — 311KB

FINANCIAL

PART I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1

Managements Discussion and Analysis of Financial

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 8

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 12

Controls and Procedures

Item 4. Controls and Procedures 12

OTHER INFORMATION

PART II. OTHER INFORMATION 11

Legal Proceedings

Item 1.Legal Proceedings 11

Risk Factors

Item 1A.Risk Factors 11

Unregistered Sales of Equity Securities and Use of

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds 12

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 12

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 12

Other Information

Item 5.Other Information 12

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GOLDEN GROWERS COOPERATIVE CONDENSED BALANCE SHEETS (In Thousands) March 31, 2024 December 31, 2023 (Unaudited) (Audited) ASSETS Current Assets: Cash and Cash Equivalents $ 904 $ 2,097 Short-Term Investments 4,686 4,548 Other Current Assets 97 318 Total Current Assets 5,687 6,963 Long-Term Investments 2,731 2,788 Investment in ProGold LLC 16,676 17,073 Total Assets $ 25,094 $ 26,824 LIABILITIES AND MEMBERS EQUITY Current Liabilities Accounts Payable $ $ Accrued Liabilities 6 421 Commitments and Contingencies Total Current Liabilities 6 421 Non-Current Liabilities Total Liabilities $ 6 $ 421 Commitments and contingencies (Note 9) Members' Equity: Members Equity Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of March 31, 2024 and December 31, 2023 25,124 26,436 Accumulated Other Comprehensive Income (Loss) ( 36 ) ( 33 ) Total Members Equity 25,088 26,403 Total Liabilities and Members Equity $ 25,094 $ 26,824 See Notes to Condensed Financial Statements 1 GOLDEN GROWERS COOPERATIVE CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In Thousands, Other Than Share and Per-Share Data) (Unaudited) Three Months Ended March 31, 2024 March 31, 2023 OPERATIONS Corn Revenue $ 18,143 $ 31,283 Corn Expense ( 18,154 ) ( 31,297 ) Net Income from ProGold LLC 1,593 1,605 General & Administrative Expenses ( 215 ) ( 210 ) Net Income from Operations 1,367 1,381 Other Income 109 92 Net Income Before Income Tax $ 1,476 $ 1,473 Net Income $ 1,476 $ 1,473 Weighted Average Shares/Units Outstanding 15,490,480 15,490,480 Earnings per Share/Membership Unit Primary and Fully Diluted $ 0.10 $ 0.10 Three Months Ended March 31, 2024 March 31, 2023 COMPREHENSIVE INCOME Net Income $ 1,476 $ 1,473 Unre

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 NOTE 1 BASIS OF PRESENTATION The condensed financial statements of Golden Growers Cooperative (the Cooperative) for the three-month periods ended March 31, 2024 and 2023 are unaudited and reflect all adjustments consisting of normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed financial statements should be read in conjunction with the financial statements and notes thereto, contained in the Cooperatives Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The results of operations for the three-month period ended March 31, 2024 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2024. NOTE 2 EXPENSES The Cooperative contracts with Cargill, Incorporated (Cargill) in connection with the procurement of corn and other agency services for an annual fee of $ 60,000 , which is paid by the Cooperative to Cargill in quarterly 4 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargills Second Amended and Restated Facility Lease with ProGold Limited Liability Company (ProGold LLC). Effective March 1, 2022, the term of the Facility Lease was extended through December 31, 2026 . NOTE 3 PROGOLD LIMITED LIABILITY COMPANY Prior to March 1, 2022, the Cooperative and American Crystal Sugar Company (American Crystal) held a 49 % and 51 % interest in ProGold LLC, respectively. On March 1, 2022, pursuant to an Option Agreement by and between Cargill and American Crystal, and a Consent Agreement by and among the Cooperative, Cargill, and American Crystal, each effective January 1, 2018, Cargill purchased a 50 % interest in ProGold LLC from American Crystal, while the Cooperative purchased the remaining 1 % of ProGold LLC held by American Crystal. As a result of these

financial statements were issued for potential recognition or disclosure in the

financial statements were issued for potential recognition or disclosure in the March 31, 2024 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2024 financial 8

Managements Discussion and Analysis of Financial

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

Forward Looking Statements The following discussion and analysis should be read in conjunction with the financial statements and notes thereto included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited financial Analysis of Financial Conditions and Results of Operations , included in the Cooperatives Annual Report Form on 10-K for the fiscal year ended December 31, 2023. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements include, among others, those statements including the words expect, anticipate, believe, may and similar expressions. The Cooperatives actual results or actions could and likely will differ materially from those anticipated in the

forward-looking statements for many reasons, including but not limited to: (i)

forward-looking statements for many reasons, including but not limited to: (i) the impact of the Cooperatives joint ownership interest in ProGold LLC following Cargills acquisition of a 50% interest in ProGold LLC; (ii) fluctuations in the market price per bushel of corn, including as a result of global armed conflicts, severe weather events and other natural conditions, changes to supply and demand, or other factors; (iii) the impact of severe weather events and other natural conditions on ProGold LLCs facility or operations and/or Members choice of delivery method; (iv) the effect of inflation as well as general economic conditions; (v) our expectations with respect to accessing our current debt facility or any other debt facility or other capital sources in the future; (vi) our beliefs regarding the adequacy of our cash on hand to fund working capital and other general corporate expenses; and (vii) other factors described from time to time in the Cooperatives Securities and Exchange Commission filings. The Cooperative does not intend to update the forward-looking required by law and qualifies all of its forward-looking statements by these cautionary statements. Overview Golden Growers Cooperative is a value-added agricultural cooperative association governed under Minnesota Statutes Chapter 308B. The Cooperative is owned by 1,472 members and is in the business of providing value to its members by facilitating their delivery of corn to the corn wet-milling facility owned by ProGold Limited Liability Company (ProGold LLC), a Minnesota limited liability company in which the Cooperative and Cargill Incorporated (Cargill) each own a 50% membership interest. The Cooperative accomplishes its business on behalf of its members through its contractual relationships with all of the parties involved in the ownership and operation of the facility. Annually, the Cooperative is required to deliver appr

of the Cooperatives Annual Report on Form 10-K for the fiscal year ended

Item 1 of the Cooperatives Annual Report on Form 10-K for the fiscal year ended December 31, 2023. ProGold Facility Lease. ProGold LLC leases its corn wet milling facility to Cargill, which uses the facility to process corn into high fructose corn syrup. In connection with the Option exercise, ProGold LLC and Cargill entered into that certain First Amendment to Second Amended and Restated Facility Lease, effective March 1, 2022, which extended the term of the Facility Lease through December 31, 2026. Membership and Delivery Obligations. Any person residing in the United States can own membership units of the Cooperative (Units) as long as that person delivers or provides for the delivery of corn for processing at the ProGold LLC facility. Ownership of Units requires members to deliver bushels of corn to the Cooperative for processing in proportion to the number of Units each member holds. Currently, 15,490,480 Units are issued and outstanding. The Cooperatives income and losses are allocated to its members based on the volume of corn they deliver. Subject to certain limitations, as long as a member patronizes the Cooperative by delivering one (1) bushel of corn for each Unit held by the member, the member will be allocated a corresponding portion of the Cooperatives income (or loss). In this way, the Cooperative operates on a cooperative basis. To hold Units, a member is required to execute a Uniform Member Agreement that obligates the member to deliver corn to the Cooperative and an Annual Delivery Agreement by which each member annually elects the members method to deliver corn - either Method A or Method B, or a combination of both. Under Method A, a member is required to physically deliver the required bushels of corn to the Cooperative either at the facility or another location designated by the Cooperative. Under Method B, a member appoints the Cooperative as its agent to arrange for the acquisition and delivery of the required bushels of corn on the membe

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