Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 23

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 of REX common stock, and the shares were issued on February 26, 2025.

The Company did not recognize
any compensation cost related to RSUs in the three- or six-month periods ended July 31, 2025. The Company recognized compensation cost
related to RSUs of approximately $0.3 million and $0.5 million in the three- and six-month periods ended July 31, 2024, respectively.

For the three- and six-month periods
ended July 31, 2024, we calculated the diluted weighted average shares as follows (amounts in thousands):

    Three Months Ended July 31, 2024 
    Six Months Ended July 31, 2024
  
    Weighted average shares – basic 
        17,548      
        17,528     
  
    Dilutive effect of RSUs 
     123  
     120 
  
    Weighted average shares – diluted 
     17,671  
     17,648 

Note 12. Income Taxes 

The Company’s income tax provision was approximately
$2.8 million and $4.5 million for the three months ended July 31, 2025 and 2024, respectively. The Company’s income tax provision
was approximately $5.7 million and $8.2 million for the six months ended July 31, 2025 and 2024, respectively.

The Company assessed all available positive and
negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization of existing
federal deferred tax assets. There is sufficient objectively verifiable income for management to conclude that it is more likely than
not that the Company will utilize available federal deferred tax assets prior to their expiration.

On July 4, 2025, the OBBBA was signed into law.
The OBBBA contains various tax reform provisions affecting businesses. While these changes are not expected to have a material impact
on our effective tax rate in the current year, we do anticipate that certain tax provisions in the OBBBA, such as the extension of bonus
depreciation for assets placed in service after January 19, 2025, to result in current deductions that will lower cash paid for income
taxes for 2025. Additionally, the OBBBA made changes to the 45Z and 45Q tax credits that the Company intends to take advantage of in future
periods