Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 78

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 carrying value, of approximately $162.8 million.
The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 4.4%. Unrecognized
holding losses at January 31, 2025 were approximately $19,000.

11. Employee Benefits

The Company maintains the REX
2015 Incentive Plan, approved by its shareholders, which reserves a total of 1,650,000 shares of common stock for issuance pursuant to
its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation
rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors
and consultants. Until 2022, the Company had only granted restricted stock awards. In May 2022, the Company issued restricted stock units
to certain officers of the Company which vested based on the Company’s TSR compared to the TSRs of companies that comprise the Russell
2000 Index over a three-year performance period (see below). The Company measures share-based compensation grants at fair value on the
grant date, adjusted for estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards
in its consolidated financial statements over the requisite service period on a straight-line basis. At July 31, 2025, 1,005,881 shares
remain available for issuance under the Plan.

Restricted Stock Awards

As a component of their compensation,
restricted stock has been granted to directors and certain employees at the closing market price of REX common stock on the grant date.
In addition, one quarter of executives’ incentive compensation is payable by an award of restricted stock based on the then closing
market price of REX common stock on the grant date. The Company’s board of directors has determined

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that the grant date will be June
15th, or the next business day if June 15th is not a business day, for all grants of restricted stock.

Based on retirement eligibility
provisions, a portion of restricted stock grants are expensed at grant date, based on grant date fair value, thus considered vested for
accounting purposes. At July 31, 2025, 22,276 shares were unvested for accounting purposes and unrecognized compensation cost related
to these nonvested restricted stock awards was approximately $917,000, to be recognized over a weighted average vesting term of 2.3 years.