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

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, to
enhance the transparency and decision usefulness of annual income tax disclosures. This ASU is effective for all entities that
are subject to Topic 740 for annual reporting periods beginning after December 15, 2024. Early adoption and retrospective application
are permitted, but not required. The Company does not expect the adoption of this ASU to have a material impact on the Consolidated
Financial Statements.

In
November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation
Disclosures (Subtopic 220-40)”, which provides clarity in assessing an entity’s performance and prospects for future
cash flows by disclosure of more detailed information about the types of expenses in commonly presented expense captions. This
ASU is effective for the Company’s fiscal year-ended January 31, 2028. Early adoption is permitted, but not required. The Company
is currently evaluating the impact of this ASU.

Note 3. Net Sales and Revenue

The Company recognizes sales of products
when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control
of products, generally upon shipment from the ethanol plant or upon loading of the rail car or truck used to transport the products.
Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value added
and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.

The majority of the Company’s sales
have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not
generally include a significant financing component. The Company has not historically entered into sales contracts in which payment
is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

13

The following tables shows disaggregated
revenue by product (amounts in thousands):

    Three Months Ended October 31,  
    Nine Months Ended October 31, 

    2025  
    2024  
    2025  
    2024 

    Ethanol 
    $136,031  
    $138,107  
    $383,739  
    $373,634