Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 68

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 68
---
2025, One Earth and NuGen had
combined forward purchase contracts for approximately 17.6 million bushels of corn, the principal raw material for their ethanol
plants, and they had combined forward purchase contracts for approximately 0.8 million MmBtu (million British thermal unit) of
natural gas.

At April 30, 2025, One Earth and NuGen had
combined sales commitments for approximately 51.4 million gallons of ethanol, approximately 89,500 tons of distillers grains and
approximately 7.9 million pounds of distillers corn oil.

One Earth has entered into a 10-year agreement
in 2009 with an unrelated party for the use of a portion of that party’s natural gas pipeline. A new 15-year agreement, with
monthly payments of $29,250

22

was effective February 1, 2019. One Earth paid approximately
$88,000 in both of the three month periods ended April 30, 2025 and 2024 pursuant to the agreement.

At April 30, 2025, One Earth had signed non-cancelable
contracts for capital projects with approximately $24.6 million remaining in future payments.

Note 14. Related-Party Transactions

During the first quarters of fiscal year
2025 and 2024, One Earth and NuGen purchased approximately $24.8 million and $30.6 million, respectively, of corn (and other supplies)
from minority equity investors and board members of those affiliates. The Company had amounts payable to related parties of approximately
$2.2 million and $1.4 million at April 30, 2025 and January 31, 2025, respectively.

Note 15. Segment Reporting

The Company has one reportable segment, ethanol
and by-products. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability
companies, two of which are majority ownership interests and are consolidated in the financial statements presented. Prior period
amounts have been reclassified to conform to current segment reporting.

The Company’s chief operating decision
maker is the Executive Committee that includes the Executive Chairman of the Board and the Chief Executive Officer. The chief operating
decision maker uses net income generated from operating segments in determining the allocation of resources and making assessment
of Company performance.

In applying the criteria set forth in ASC
280, the Company determined that based on the nature of the products and production process and the expected financial results,