Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 11

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 circumstances indicate that the carrying amount may not be recoverable. The Company did not identify any indicators
of impairment or record any impairment charges during the first six months of fiscal year 2025 or 2024.

The Company tests for
recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying
amount exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which
the asset group’s carrying amount exceeds its fair value, if any.

Investments 

The method of accounting applied to long-term
investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly
grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any
variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability
company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in
ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying
equity in the net assets of equity method investees is allocated to specific assets and liabilities. Investments in businesses
that the Company does not control but for which it has the ability to exercise significant influence over operating and financial
matters are accounted for using the equity method. The Company accounts for its investment in Big River using the equity method
of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments
for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general
economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then
a charge to earnings is recorded in the Consolidated Statements of Operations and a new cost basis in the investment is established.

12

Short-term investments, consisting of U.S. government
obligations, are considered held to maturity, and therefore are carried at amortized historical cost.

Recently Issued Accounting
Standards

In December
2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, to enhance the
transparency and decision usefulness of annual income tax disclosures. This ASU is effective for all entities that