Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 11

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
 from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

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

    Three Months Ended April 30, 

    2025  
    2024 

    Ethanol 
    $124,397  
    $119,427 

    Dried distillers grains 
     22,286  
     30,686 

    Distillers corn oil 
     9,879  
     9,805 

    Modified distillers grains 
     1,623  
     1,197 

    Derivative financial instrument gains 
     17  
     - 

    Other 
     138  
     116 

    Total 
    $158,340  
    $161,231 

12

Note 4. Leases

Operating Leases

At April 30, 2025, the Company had lease
agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain
a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the
present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable
period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases
include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

The components of lease expense, classified
as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

    Three Months Ended April 30, 

    2025  
    2024 

    Operating lease expense 
    $2,008  
    $1,682 

    Variable lease expense 
     66  
     54 

    Total lease expense 
    $2,074  
    $1,736 

Total cash paid for amounts included in the
measurement of lease liabilities was $2.2 millions and $1.6 million in the three months ended April 30, 2025 and 2024, respectively.

The following table is a summary of future
minimum rentals on such leases at April 30, 2025 (amounts in thousands):

    Years Ended