Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 16

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 quality, the Company’s own
credit standing and other specific factors, where appropriate.

To ensure the prudent application of estimates
and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment,
various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing,
financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and
loss reporting for all derivative instruments.

16

Financial assets and liabilities measured
at fair value on a recurring basis at October 31, 2025 are summarized below (amounts in thousands):

    Level 1  
    Level 2  
    Level 3  
    Fair Value 

    Forward purchase contracts asset (1) 
    $-  
    $517  
    $-  
    $517 

    Commodity futures asset (2) 
     (372)  
     -  
     -  
     (372) 

    Total assets 
    $(372)  
    $517  
    $-  
    $145 

    Forward purchase contracts liability (3) 
    $-  
    $615  
    $-  
    $615 

Financial assets and liabilities measured
at fair value on a recurring basis at January 31, 2025 are summarized below (amounts in thousands):

    Level 1  
    Level 2  
    Level 3  
    Fair Value 

    Forward purchase contracts asset (1) 
    $-  
    $1,253  
    $-  
    $1,253 

    Commodity futures (2) 
     (1,291)  
     -  
     -  
     (1,291) 

    Total assets 
    $(1,291)  
    $1,253  
    $-  
    $(38) 

    Forward purchase contracts liability (3) 
    $-  
    $378  
    $-  
    $378 

   (1) The forward purchase contracts asset is included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets.
   (2) The commodity futures assets and liabilities are netted with cash collateral due from broker and included in “Prepaid expenses and other” on