8. COMMITMENTS AND CONTINGENCIES Corn Forward Contracts At July 31, 2019, the Company had cash and basis contracts for forward corn purchase commitments for approximately 2,272,000 bushels for various delivery periods through October 2020. Given the uncertainty of future ethanol and corn prices, the Company could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts using the lower of cost or net realizable value evaluation, similar to the method used on its inventory, and has determined that an impairment loss existed of approximately $145,000 at July 31, 2019. The impairment expense is recorded as a component of cost of goods sold. Ethanol Forward Contracts At July 31, 2019, the Company had fixed and basis contracts to sell approximately $13,322,000 of ethanol for various delivery periods through September 2019, which approximates 83% of its anticipated ethanol sales for that period. Distillers Grains Forward Contracts At July 31, 2019, the Company had forward contracts to sell approximately $613,000 of distillers grains for delivery through August 2019, which approximates 30% of its anticipated distillers grain sales during that period. Corn Oil Forward Contracts At July 31, 2019, the Company had forward contracts to sell approximately $542,000 of corn oil for delivery periods through December 2019, which approximates 30% of its anticipated corn oil sales for that period. Railcar Leases In accordance with certain railcar lease agreements, at expiration, the Company is required to return the railcars in good condition, less normal wear and tear. Primarily due to the ongoing maintenance and repair activities performed on its railcars, the Company has determined that no accrual for leased railcar damages is necessary and an estimate of the possible range of loss cannot be made.