Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 23

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 Earth and NuGen purchased approximately $24.8 million and $30.6 million, respectively, of corn (and other supplies)
from minority equity investors and board members of those affiliates. The Company had amounts payable to related parties of approximately
$2.2 million and $1.4 million at April 30, 2025 and January 31, 2025, respectively.

Note 15. Segment Reporting

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 and are consolidated in the financial statements presented. Prior period
amounts have been reclassified to conform to current segment reporting.

The Company’s chief operating decision
maker is the Executive Committee that includes the Executive Chairman of the Board and the Chief Executive Officer. The chief operating
decision maker uses net income generated from operating segments in determining the allocation of resources and making assessment
of Company performance.

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 its ethanol plants are aggregated into one reporting segment, each of which is reviewed in the
same manner by the chief operating decision maker. Aggregation into one reporting segment is appropriate based upon the similarity
of economic characteristics of the operating segments, including the markets for identical revenue sources and the primary input,
corn. The plants in all locations operate in a similar manner to produce ethanol and by-products. The types of customers and how
the products are distributed to the customers are similar across each operating entity, consisting of a combination of rail and
truck shipments. Finally, the regulatory environment is largely impacted by guidance from the federal level, impacting each operating
segment the same.

The measure of segment assets is reported
on the balance sheet as total consolidated assets.

23

The following tables set forth certain
financial data for the Company’s reportable segment for the three-month periods ended April
30, 2025 and 2024 (in thousands):

    Three Months Ended April 30,

     2025  
     2024 

    Net sales and revenue 

    Ethanol and by-products 
    $430,643  
    $434,217 

    Reconciling Item: Equity method ethanol investment 
     (272,303) 
     (272,986)

    Total consolidated net sales and