Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 67

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 positions and the related potential penalties and interest. It is reasonably possible
that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during
the next 12 months; however, the Company does not expect the change to have a material effect on results of operations or financial
position.

21

A reconciliation of the beginning and ending
amount of unrecognized tax benefits, including interest and penalties, for the three-month periods ended April
30, 2025 and 2024, is as follows (amounts in thousands):

    Three Months Ended April 30, 

    2025  
    2024 

    Unrecognized tax benefits, beginning of period 
    $18,978  
    $18,965 

    Changes for prior years’ tax positions 
     7  
     7 

    Changes for current year tax positions 
     -  
     - 

    Unrecognized tax benefits, end of period 
    $18,985  
    $18,972 

At April 30, 2025 and January 31, 2025 the
unrecognized tax benefits were included within the following lines on the accompanying Consolidated Balance Sheets (amounts in
thousands):

    April 30, 2025  
    January 31, 2025 

    Refundable income taxes 
    $2,002  
    $2,002 

    Deferred taxes 
     11,759  
     12,037 

    Long-term taxes payable 
     4,613  
     4,334 

    Other long-term liabilities 
     611  
     605 

    Unrecognized tax benefits, end of period 
    $18,985  
    $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 April 30, 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.

At April 30,