Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 21

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 $3.0 million and $3.7 million for the three months ended April 30, 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.

The Company files a U.S. federal income tax
return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income
tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income
tax examination for the years ended January 31, 2015 through January 31, 2022 related to refined coal production tax credits pursuant
to IRC Section 45 and research and experimentation credits pursuant to IRC Section 41 claimed
during those years.

On a quarterly and annual basis, the Company
accrues for the effects of open uncertain tax 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