Company: SDSYA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001163609-25-000017
Chunk: 18

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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 actively traded securities or contracts or priced with models using highly observable inputs, such as commodity prices using forward future prices.•Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2025 and December 31, 2024: Fair Value as of March 31, 2025 Level 1Level 2Level 3TotalFinancial assets:    Inventory$— $65,702,497 $— $65,702,497 Commodity derivative instruments$(1,044,642)$1,370,184 $— $325,542 Provisionally priced contracts$— $14,596,330 $— $14,596,330  Fair Value as of December 31, 2024 Level 1Level 2Level 3TotalFinancial assets:    Inventory$— $44,241,428 $— $44,241,428 Commodity derivative instruments$801,101 $1,338,736 $— $2,139,837 Provisionally priced contracts$— $13,593,068 $— $13,593,068 

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South Dakota Soybean Processors, LLCNotes to Condensed Consolidated Financial Statements

The Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward futures contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area.The Company considers the carrying amount of significant classes of financial instruments on the condensed consolidated balance sheets, including cash, accounts receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value