Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 56

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 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.

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