Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 76

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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4.3%.
Unrecognized holding losses at October 31, 2025 were approximately $9,000. 

At January 31, 2025, the Company owned United
States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $162.8
million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 4.4%.
Unrecognized holding losses at January 31, 2025 were approximately $19,000.

11. Employee Benefits

Until its expiration on June
1, 2025, the Company maintained the REX 2015 Incentive Plan, approved by its shareholders, which reserved a total of 3,300,000
split-adjusted shares of common stock for issuance pursuant to its terms. The plan provided for the granting of shares of stock,
including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock,
and restricted stock unit awards to eligible employees, non-employee directors and consultants. Until 2022, the Company had only
granted restricted stock awards. In May 2022, the Company issued restricted stock units to certain officers of the Company which
vested based on the Company’s TSR compared to the TSRs of companies that comprise the Russell 2000 Index over a three-year
performance period (see below). The Company measures share-based compensation grants at fair value on the grant date, adjusted for
estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards in its consolidated
financial statements over the requisite service period on a straight-line basis. At its time of expiration, 1,065,809 shares
(pre-2025 split) remained available for issuance under the plan.

An immaterial error was
identified and corrected during the three-month period ended October 31, 2025, related to restricted stock awards that were reported
as granted in June 2025 but were no longer available for grant as the plan had recently expired. The Board of Directors has acknowledged
that the purported June restricted stock awards were not validly granted. The correcting entry reversed 119,856 shares granted
and the related expense of approximately $0.3 million and reestablished an incentive compensation accrual of approximately $2.0
million. The Company anticipates that it will request its shareholders to approve a replacement equity plan at its Annual Meeting
in