| Commitments and Contingencies |
| Note 17. |
Commitments and Contingencies |
Leases
The Company enters into leases for warehouses,
rail cars, forklifts, office equipment, office space and certain other types of property and equipment. The leases consist of operating
and financing leases expiring in various years through 2030.
The elements of the lease costs were as follows:
| | |
Year ended December 31, | |
| | |
2025 | | |
2024 | |
| Operating lease expense: | |
| | |
| |
| Operating lease expense | |
$ | 898,587 | | |
$ | 857,093 | |
| Finance lease expense: | |
| | | |
| | |
| Amortization of lease assets | |
$ | 104,145 | | |
$ | 92,308 | |
| Interest on lease liabilities | |
| 47,126 | | |
| 48,857 | |
| Total finance lease cost | |
$ | 151,271 | | |
$ | 141,165 | |
| | |
| | | |
| | |
| Short term lease expense | |
$ | 396,077 | | |
$ | 678,755 | |
| Variable lease expense | |
| 814,532 | | |
| 383,788 | |
| Total lease expense | |
$ | 2,260,467 | | |
$ | 2,060,801 | |
Lease term and discount rate information related to leases was as follows:
| | | Year ended December 31, | | | Weighted-average remaining lease term (in years): | | 2025 | | | 2024 | | | Operating leases | | | 2.05 | | | | 2.98 | | | Finance leases | | | 3.84 | | | | 4.78 | | | Weighted-average discount rate: | | | | | | | | | | Operating leases | | | 9.81 | % | | | 11.50 | % | | Finance leases | | | 10.53 | % | | | 10.64 | % |
Supplemental cash flow information related to leases was as follows:
| | |
Year ended December 31, | |
| | |
2025 | | |
2024 | |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| | |
| |
| Operating cash flows from finance lease (interest payments) | |
$ | 47,126 | | |
$ | 48,857 | |
| Operating cash flows from operating leases | |
$ | 912,634 | | |
$ | 850,676 | |
| Financing cash flows from finance lease | |
$ | 91,058 | | |
$ | 72,638 | |
| Right-of-use assets obtained in exchange for lease liabilities: | |
| | | |
| | |
| Operating leases | |
$ | 310,566 | | |
$ | 1,243,375 | |
| Finance leases | |
$ | 74,092 | | |
$ | - | |
Future maturities of lease liabilities are as follows as of December
31, 2025:
| | |
Operating
Leases | | |
Finance
Lease | |
| 2026 | |
$ | 769,316 | | |
$ | 138,184 | |
| 2027 | |
| 326,850 | | |
| 138,184 | |
| 2028 | |
| 105,554 | | |
| 111,460 | |
| 2029 | |
| 78,054 | | |
| 71,373 | |
| 2030 | |
| - | | |
| 32,199 | |
| Thereafter | |
| - | | |
| - | |
| Total future undiscounted lease payments | |
| 1,279,774 | | |
| 491,400 | |
| Imputed interest | |
| (123,994 | ) | |
| (88,033 | ) |
| Present value of lease payments | |
| 1,155,780 | | |
| 403,367 | |
| Current portion | |
| 688,711 | | |
| 100,699 | |
| Long-term portion of lease payments | |
$ | 467,069 | | |
$ | 302,668 | |
Contingencies
The Company is subject to legal proceedings and
claims which arise in the ordinary course of business. In the opinion of management, the ultimate outcome of these matters will not be
material to the Company’s consolidated financial position, results of operations, or cash flows. Commitments
The Company is not contractually committed to
any planned capital expenditure until actual orders are placed for equipment or services. As of December 31, 2025 and 2024, the Company
had $13.8 million and $11.0 million for open equipment and construction contracts, respectively.
|