12.

Commitments and Contingencies

Legal Matters

. From time to time, the Company has been, and

may

again become, involved in legal proceedings arising in the ordinary course of its business. The Company is

not

presently a party to any litigation that it believes to be material and is

not

aware of any pending or threatened litigation against the Company that it believes could have a material adverse effect on its business, operating results, financial condition or cash flows.

Leases

. Upon adoption of ASU

2016

02,

the Company identified

three

lease agreements that qualify as “operating” based on the terms and conditions at the commencement date for each lease. These include the lease for the Company’s office and research facility in Englewood, Colorado, with a term expiring in

July 2021

and leases of plant equipment and transportation equipment with expiration dates in

June 2019

used by Agri-Energy at the Luverne Facility.

All other leases qualified for the short-term scope exemption. These consist of corporate apartments in Colorado, which have initial lease terms of less than

twelve

months, and additional leases of transportation equipment located at both the Luverne Facility and the South Hampton Facility with original lease terms of less than

twelve

months.

Rent expense for the

three

months ended

June 30, 2019

and

2018

was

$0.4

million in both periods, and for the

six

months ended

June 30, 2019

and

2018

was

$0.8

million and

$0.9

million, respectively.

The table below shows the future minimum payments under non-cancelable short-term and operating leases and at

June 30, 2019 (

in thousands).

	Short-Term Leases		Operating Leases
2019 (remaining)	$	337	$	210
2020		230		425
2021		3		215
2022		—		—
2023 and thereafter		—		—
Total	$	570	$	850

The Company entered into a

five

-year software licensing agreement on

April 2, 2018.

Future contractual payment obligations total approximately

$0.4

million as of

June 30, 2019.

This licensing agreement is accounted for as an intangible asset and is out of the scope of ASU

2016

02,

Leases.

Indemnifications

. In the ordinary course of its business, the Company makes certain indemnities under which it

may

be required to make payments in relation to certain transactions. As of

June 30, 2019

and

December 31, 2018,

the Company did

not

have any liabilities associated with indemnities.

The Company, as permitted under Delaware law and in accordance with its amended and restated certificate of incorporation and amended and restated bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The duration of these indemnifications, commitments and guarantees varies and, in certain cases, is indefinite. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that

may

enable it to recover a portion of any future amounts paid. The Company accrues for losses for any known contingent liability, including those that

may

arise from indemnification provisions, when future payment is probable.

such losses have been recorded to date.

Environmental Liabilities

. The Company’s operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company’s liability is probable and the costs can be reasonably estimated.

environmental liabilities have been recorded as of

June 30, 2019

December 31, 2018.