Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 110

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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 quarter of fiscal year 2025, providing cash of approximately $1.2
million. A decrease in the balance of other assets of approximately $0.1 million primarily related to decreases in prepaid insurance
as well as by changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value,
offset by increases in spare parts inventory and other prepaid balances. An increase in the balance of refundable income taxes
of approximately $0.9 million primarily relates to the accrual of the federal taxes currently payable being less

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than estimated federal tax payments made to date. While the
Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal
taxes owed. A decrease in the balance of accounts payable used cash of approximately $8.9 million, which was primarily a result
of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately
$3.8 million, which was primarily caused by a decrease in accrued payroll which used cash of approximately $5.2 million, due to
the timing of annual bonus payments. Additionally, a decrease in the lease liability used cash of $1.5 million based on payments
made during the quarter. These decreases are partially offset by an increase in other current liabilities of $3.0 million.

Net cash used in operating activities was
approximately $2.3 million for the first quarter of fiscal year 2024. For the first quarter of fiscal year 2024, cash was provided
by net income of approximately $12.3 million, adjusted upward for non-cash items of approximately $5.6 million, which consisted
of depreciation, amortization of operating lease right-of-use assets, income from equity method investments, interest income from
short-term investments, the deferred income tax provision, and stock-based compensation expense. A decrease in the balance of
accounts receivable provided cash of approximately $1.7 million, primarily a result of the timing of products shipped and the
receipt of customer payments at One Earth and NuGen. Inventories were nearly flat over the first three months of fiscal year 2024.
An increase in the balance of other assets of approximately $3.8 million primarily related to prepayments on certain executed
lease agreements, offset by changes in the carrying value of forward purchase contracts and commodity futures positions recorded
at fair value. A decrease in the balance of refundable income taxes of approximately $1