Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 17

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 in “Prepaid expenses and other” on the accompanying Consolidated
Balance Sheets. These contracts included short/sell positions and long-buy positions for approximately 6.0 million and 0.4 million
bushels of corn, respectively at April 30, 2025. These contracts included short/sell positions and long/buy positions for approximately
6.3 million and 575,000 bushels of corn, respectively, at January 31, 2025. These contracts also included short/sell positions
for approximately 4.2 million gallons of ethanol at both April 30, 2025 and January 31, 2025.

17

(3)As of April 30, 2025 and January 31, 2025, all of the derivative financial instruments held by the Company were subject to
enforceable master netting arrangements. The Company’s accounting policy is to offset position amounts owed or owing with
the same counterparty. Depending on the amount of unrealized gains and losses on derivative contracts held by the Company, the
counterparty may require collateral to secure the Company’s derivative contract positions. As of April 30, 2025 and January
31, 2025, the Company recorded this collateral balance within “Prepaid expenses and other” on the accompanying Consolidated
Balance Sheets.

See Note 5 which contains fair value information
related to derivative financial instruments.

The following table provides information
about gains recognized in income on the Company’s derivative financial instruments and the line items on the accompanying
Consolidated Statements of Operations in which the fair values are reflected for the three months ended April 30, 2025 and 2024
(amounts in thousands):

    Three Months Ended April 30, 

    2025  
    2024 

    Net sales 
    $17  
    $- 

    Cost of sales 
    $1,968  
    $64 

Note 10. Investments

Equity Method Investment
in Big River

The following table summarizes the Company’s
equity method investment at April 30, 2025 and January 31, 2025 (dollars in thousands):

    Carrying Amount 

    Entity 
    Ownership Percentage  
    April 30, 2025  
    January 31, 2025 

    Big River  
     10.3%  
     $36,806  
     $