Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 66

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 certain officers with a performance period that ended on December 31, 2024. The number of RSUs
eligible to vest ranged from zero percent to

20

two-hundred percent and
was determined based on how the Company’s TSR compared to the TSR of companies that comprised the Russell 2000 Index during
the performance period ending December 31, 2024. The calculated payout of the units that vested was 148%, or 99,900 shares, and
the shares were issued on February 26, 2025.

The Company did not recognize
any compensation cost related to RSUs in the three-month period ended April 30, 2025. The Company recognized compensation cost
related to RSUs of approximately $0.3 million in the three-month period ended April 30, 2024.

For the three-month period
ended April 30, 2024, we calculated the diluted weighted average shares as follows (amounts in thousands):

     Three Months Ended April 30, 2024

    Weighted average shares – basic             
     17,546             

    Dilutive effect of RSUs 
     118 

    Weighted average shares – diluted 
     17,664 

Note 12. Income Taxes

The Company’s income tax provision
was approximately $3.0 million and $3.7 million for the three months ended April 30, 2025 and 2024, respectively.

The Company assessed all available positive
and negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization
of existing federal deferred tax assets. There is sufficient objectively verifiable income for management to conclude that it is
more likely than not that the Company will utilize available federal deferred tax assets prior to their expiration.

The Company files a U.S. federal income tax
return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income
tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income
tax examination for the years ended January 31, 2015 through January 31, 2022 related to refined coal production tax credits pursuant
to IRC Section 45 and research and experimentation credits pursuant to IRC Section 41 claimed
during those years.

On a quarterly and annual basis, the Company
accrues for the effects of open uncertain tax