Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 78

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 the Sangamon River and about six miles beyond the aquifer’s mapped boundary. The second and third proposed
injection well sites are also located outside the areas designated as part of the Mahomet Sole Source Aquifer Project Review Area.
The Company continues to closely monitor the progress of SB 1723 and is actively evaluating any potential implications it may
have for the development and permitting of our carbon sequestration project.

29

Additionally, see “One Earth Energy,
LLC Carbon Sequestration and Plant Expansion” above for a discussion of certain other uncertainties associated with our
Illinois carbon sequestration and plant expansion projects.

On August 10, 2017, we purchased, through
a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the
refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax
credits beginning on November 18, 2021, we ceased operations on that date and subsequently sold the facility. The approximately
$58.2 million of federal production tax credits received through ownership of this facility remain under IRS audit.

The United States exported an estimated
1.9 billion gallons of ethanol in 2024, up from approximately 1.4 and 1.3 billion gallons in 2023 and 2022, respectively. In 2024
and 2023, an estimated 12.2 and 10.8 million metric tons, respectively, of distillers grains were exported from the United States,
which represented approximately 37% and 34% in 2024 and 2023, respectively, of U.S production. There has been much discussion
around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries
which have been large purchasers from our industry in the United States which could affect future demand for these products.

The trends and uncertainties mentioned
above could impact our future operating results in both positive and negative ways.

Comparison of Three Months Ended April 30, 2025 and 2024

The following table summarizes our results
from operations (amounts in thousands):

    Three Months Ended April 30,

    2025
     
    2024

    Net sales and revenue
    $
    158,340
     
    $
    161,231

    Cost of sales
     
    143,998

    146,780