The Company has several operating leases for railcars, machinery and equipment, and storage facilities. These leases have terms ranging from 3-15 years and most do not have renewal terms provided. The Company does not have lease arrangements with residual value guarantees, sale-leaseback terms or material restrictive covenants. The Company does not have any material finance lease obligations nor sublease agreements.

Lease expense for these operating leases is recognized on a straight-line basis over the lease terms. The components of lease costs recognized within our condensed consolidated statements of operations for the three-month periods ended March 31, 2026 and 2025 were as follows:



	2026		2025

Cost of revenues - Freight and rail	$	2,677,367	$	1,292,470
Cost of revenues - Production	253,649		84,148
Administration expenses	7,786		6,434
Total operating lease costs	$	2,938,802	$	1,383,052

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2026 and 2025:



	2026		2025

Cash paid for amounts included in the measurement of lease liabilities	$	2,928,137	$	946,860

Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	—	$	155,886

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2026:


Weighted-average remaining lease-term - operating leases (in years)	10.6

Weighted-average discount rate - operating leases	4.4	%

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2026:


	Railcars		Other		Total
Twelve-month periods ended March 31:
2027	$	10,980,086	$	475,482	$	11,455,568
2028	10,221,361		473,189		10,694,550
2029	10,212,671		458,115		10,670,786
2030	10,063,046		410,685		10,473,731
2031	9,614,171		352,590		9,966,761
Thereafter	47,592,092		454,140		48,046,232
Total lease payments	98,683,427		2,624,201		101,307,628
Less amount of lease payments representing interest	(20,058,429)		(397,629)		(20,456,058)

Total present value of lease payments	$	78,624,998	$	2,226,572	$	80,851,570