Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 51

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL
STATEMENTS

April 30, 2025

Note 1. Consolidated Financial Statements

References to the Company – References
to “REX” or the “Company” in the consolidated financial statements and in these notes to the consolidated
financial statements refer to REX American Resources Corporation, a Delaware corporation, and its majority and wholly owned subsidiaries.

The consolidated financial statements included
in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange
Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein.
Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted
pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information
presented not misleading. Financial information as of January 31, 2025 included in these financial statements has been derived
from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended
January 31, 2025 (fiscal year 2024). These unaudited consolidated financial statements should be read in conjunction with the consolidated
financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January
31, 2025. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the
year.

Basis of Consolidation – The
consolidated financial statements in this report include the operating results and financial position of the Company. All intercompany
balances and transactions have been eliminated. The Company consolidates the results of its wholly owned and majority owned subsidiaries.
The Company includes the results of operations of One Earth Energy, LLC in its Consolidated Statements of Operations on a delayed
basis of one month as One Earth has a fiscal year end of December 31.

Nature of Operations – The
Company has one reportable segment, ethanol and by-products. Within the ethanol and by-products segment, the Company has equity
investments in three ethanol limited liability companies, two of which are majority ownership interests.

In applying the criteria set forth in ASC
280, the Company determined that based on the nature of the products and production process and the expected financial results,
the Company’s operations at