FutureFuel Corp. Leases Disclosure
| Lease commitments and purchase obligations |
The Company leased railcars under multi-year arrangements primarily for delivery of feedstock and biodiesel within its biofuels segment. The lease fees were fixed with no option to purchase and no upfront fees or residual value guarantees. All railcar leases were direct, and no subleases existed. These leases expired on December 31, 2024.
Following are supplemental income statement and cash flow information related to leases.
| Year ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating lease expense | $ | - | $ | 534 | $ | 881 | ||||||
| Short-term lease expense | $ | 227 | $ | 6 | $ | 9 | ||||||
| Cash paid for operating leases | $ | - | $ | 534 | $ | 881 | ||||||
| Weighted average discount rate, per annum | N/A | N/A | 5.5 | % | ||||||||
On December 31, 2025 and 2024, there were right of use assets reported on the balance sheet.
During the year ended December 31, 2025, the Company entered into a supply agreement with a third party that obligates the third party to construct a nitrogen plant to be used solely by the Company. The third party is also obligated to make certain capital improvements during the term of the agreement. The Company is obligated to provide and maintain related infrastructure and utilities and pay a monthly fee. The arrangement for the use of the nitrogen plant meets the definition of a lease under Topic 842, as the Company will receive all output associated with it. Based on terms outlined in the agreement, the Company expects the lease with an estimated amount of $8,500 to $10,900 to be classified as a finance lease when the nitrogen plant is placed in service, which is expected to occur in 2027.
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 two non-cancelable obligations for enterprise resource planning and software maintenance with payment obligations as of December 31, 2025 presented as follows.
| Less than 1 year | $ | 421 | ||
| 1-3 years | 412 | |||
| 4-5 years | - | |||
| Total | $ | 833 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 16, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.