Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 82

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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18,978 

Note 13. Commitments and Contingencies

The Company may be involved in various legal actions
arising in the normal course of business, from time to time. After taking into consideration legal counsel’s evaluations of any
such action(s), management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated
Financial Statements. There were no material liabilities recorded for legal actions at July 31, 2025 and January 31, 2025, as the Company
did not believe that there was a probable and reasonably estimable significant loss associated with any legal contingencies.

23

At July 31, 2025, One Earth and NuGen had combined
forward purchase contracts for approximately 15.0 million bushels of corn, the principal raw material for their ethanol plants, and they
had combined forward purchase contracts for approximately 1.1 million MmBtu (million British thermal unit) of natural gas.

At July 31, 2025, One
Earth and NuGen had combined sales commitments for approximately 68.8 million gallons of ethanol, approximately 88,100 tons of
distillers grains and approximately 14.6 million pounds of distillers corn oil.

One Earth entered into a 15-year agreement, effective
February 1, 2019, with an unrelated party for the use of a portion of that party’s natural gas pipeline, with monthly payments of
$29,250. One Earth paid approximately $88,000 in the three-month periods ended July 31, 2025 and 2024 and $176,000 in the six-month periods
ended July 31, 2025 and 2024, pursuant to the agreement.

At July 31, 2025, One Earth had signed non-cancelable
contracts for capital projects with approximately $7.1 million remaining in future payments.

Subsequent to the end of period ended July 31,
2025, management entered into an agreement at one of the consolidated ethanol subsidiaries for the purchase and installation of equipment
for approximately $38.2 million.

Note 14. Related-Party Transactions

During the second quarters of fiscal years 2025
and 2024, One Earth and NuGen purchased approximately $29.0 million and $28.3 million, respectively, of corn (and other supplies) from
minority equity investors and board members of those affiliates. Such purchases totaled approximately $53.9