Quarterly report pursuant to Section 13 or 15(d)

Leases, Other Commitments, and Contingencies

v3.21.2
Leases, Other Commitments, and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]  
Leases, Other Commitments, and Contingencies

7. LEASES, OTHER COMMITMENTS, AND CONTINGENCIES

Litigation and Claims

The Company is not currently a party to any material pending legal proceeding.

Leases

The Company leases its headquarters facility, office equipment, and other items. The Company's headquarters lease involved the sale of land and improvements to a third-party who then constructed the facility. This lease is considered a financing lease.

The Company also has an equipment financing arrangement that is considered a financing lease. This arrangement has a term of four years for each draw. The Company is required to deposit cash into a restricted account in an amount equal to the future rent payments required by the lease. As of September 30, 2021, restricted cash totaled $1.0 million. The Company has the option to request the return of excess collateral annually in December, and the amount it expects to receive in December 2021 is reflected as a current asset.

 

Rent expense from operating leases was as follows:

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

In Thousands

2021

 

 

2020

 

 

2021

 

 

2020

 

Rent expense from operating leases

$

10

 

 

$

24

 

 

$

34

 

 

$

71

 

Other Commitments

As of September 30, 2021, the Company had noncancelable commitments to purchase grain from growers at dates throughout 2021 aggregating approximately $0.1 million based on current commodity futures market prices, other payments to growers, and estimated yields per acre. This commitment is not recorded in the consolidated financial statements because the Company has not taken delivery of the grain as of September 30, 2021.