Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 15

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 Remainder of 2026 
    $274 

    2027 
     469 

    2028 
     469 

    2029 
     469 

    2030 
     469 

    Thereafter 
     2,423 

    Total 
     4,573 

    Less:  present value discount 
     1,251 

    Finance lease liabilities 
    $3,322 

Note 5. Fair Value

The Company applies ASC 820, which provides
a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting
standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit
price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date.

The Company determines the fair market values
of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the
use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels
of inputs that may be used to measure fair values which are provided below. The Company carries certain

15

cash equivalents, investments, and derivative instruments at fair
value.

The fair values of derivative assets and liabilities
traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including
interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance
of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and
third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based
or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest
rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and
liabilities include adjustments for market liquidity, counterparty credit 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