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Note 14 - Lease Commitments and Purchase Obligations

12 Months Ended

Dec. 31, 2023

14.

Lease commitments and purchase obligations

The Company leases railcars under multi-year arrangements primarily for delivery of feedstock and biodiesel within its biofuels segment. The lease fees are fixed with no option to purchase and no upfront fees or residual value guarantees. All railcar leases are direct, and no subleases exist. The Company determines lease existence and classification at inception when an agreement conveys the right to control the identified property for a period of time in exchange for consideration. These leases expire by the end of December 31, 2024. As operating leases do not provide a readily determinable implicit interest rate, the Company uses an incremental borrowing rate based on information available at the commencement date in determining present value of the lease payments.

Following are supplemental income statement and cash flow information related to leases.

	*Year ended December 31,*
	*2023*			*2022*			*2021*
Operating lease expense	$	881		$	862		$	887
Short-term lease expense	$	8		$	31		$	23
Cash paid for operating leases	$	881		$	862		$	887
Right of use assets obtained in exchange for lease obligations	$	-		$	707		$	269
Weighted average discount rate, per annum		5.5	%		5.2	%		3.6	%

On December 31, 2023 and 2022, a right of use asset was reported as other noncurrent assets of $389 and $1,019, other current liabilities of $389 and $630, and other noncurrent liabilities of $0 and $389, respectively.

The imputed interest of the other noncurrent asset at December 31,2023 was $9.

Purchase obligations

The Company has entered into contracts for the purchase of goods and services including contracts for feedstocks for biodiesel, expansion of the Company’s specialty chemicals segment, and related infrastructure with less than one-year terms.

The Company holds one non-cancelable obligation for software maintenance with payment obligations presented as follows.

2024	$	37
2025 - 2026		43
Total	$	80