v3.26.1
LEASES
9 Months Ended
Jul. 31, 2026
Leases [Abstract]  
LEASES LEASES
The Company has a contract for use of a natural gas pipeline which transports natural gas from the Northern Natural Gas pipeline to the Company’s facility. This natural gas line has no alternate use and is specifically for the benefit of the Company. The contract has minimum volume requirements as well as a fixed monthly fee. This contract meets the definition of a lease and is classified as a finance lease. Right of use assets and lease liability are recognized based on the present value of lease payments over the lease term.

The discount rate used in determining the lease liability for the lease is the Company's estimated incremental borrowing rate. An incremental borrowing rate of 5.5% was utilized for the Company's lease.

The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s finance lease has a remaining lease term of approximately 4 years. This lease includes an option to extend the lease. When it is reasonably certain the Company will exercise this option, the Company will update the remaining term of the lease. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants.
The following table summarizes the remaining maturities of the Company’s finance lease liabilities as of July 31, 2026:
For the Period Ending July 31,Finance Leases
2027$178,800 
2028178,800 
2029178,800 
203044,700 
Totals581,100 
Amount representing interest(50,085)
Lease liability$531,015 

Lease CostThree Months ended July 31, 2026Three Months ended July 31, 2025Nine Months ended July 31, 2026Nine Months ended July 31, 2025
Operating lease cost$— $— $— $— 
Short term lease cost11,860 13,236 43,923 46,904 
Finance lease cost
Amortization of leased assets34,323 34,323 102,970 102,970 
Interest on lease liabilities7,642 9,620 24,434 30,288 
Net lease cost$53,825 $57,179 $171,327 $180,162 
LEASES LEASES
The Company has a contract for use of a natural gas pipeline which transports natural gas from the Northern Natural Gas pipeline to the Company’s facility. This natural gas line has no alternate use and is specifically for the benefit of the Company. The contract has minimum volume requirements as well as a fixed monthly fee. This contract meets the definition of a lease and is classified as a finance lease. Right of use assets and lease liability are recognized based on the present value of lease payments over the lease term.

The discount rate used in determining the lease liability for the lease is the Company's estimated incremental borrowing rate. An incremental borrowing rate of 5.5% was utilized for the Company's lease.

The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s finance lease has a remaining lease term of approximately 4 years. This lease includes an option to extend the lease. When it is reasonably certain the Company will exercise this option, the Company will update the remaining term of the lease. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants.
The following table summarizes the remaining maturities of the Company’s finance lease liabilities as of July 31, 2026:
For the Period Ending July 31,Finance Leases
2027$178,800 
2028178,800 
2029178,800 
203044,700 
Totals581,100 
Amount representing interest(50,085)
Lease liability$531,015 

Lease CostThree Months ended July 31, 2026Three Months ended July 31, 2025Nine Months ended July 31, 2026Nine Months ended July 31, 2025
Operating lease cost$— $— $— $— 
Short term lease cost11,860 13,236 43,923 46,904 
Finance lease cost
Amortization of leased assets34,323 34,323 102,970 102,970 
Interest on lease liabilities7,642 9,620 24,434 30,288 
Net lease cost$53,825 $57,179 $171,327 $180,162