Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 12

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 January 31, 
    Minimum Rentals 

    Remainder of 2026 
    $5,792 

    2027 
     7,706 

    2028 
     6,378 

    2029 
     3,698 

    2030 
     2,036 

    Thereafter 
     133 

    Total 
     25,743 

    Less: present value discount 
     2,931 

    Operating lease liabilities 
    $22,812 

At April 30, 2025, the weighted average
remaining lease term is 3.4 years, and the weighted average discount rate is 6.59% for the outstanding leases.

13

At January 31, 2025, the weighted average remaining
lease term was 3.5 years, and the weighted average discount rate was 6.60% for the outstanding leases.

Finance Leases

At April 30, 2025, the Company had one lease
agreement that was classified as a finance lease for an electrical substation facility. Prepayments totaling $15.6 million were made
prior to fiscal year 2025, with monthly payments of approximately $39,000 to be made over the term of the lease, which was
determined to be 10 years. The lease term for this lease includes the noncancelable period of the lease and any periods for which
only the Company has the option to cancel but is reasonably expected to continue the lease. Based on this, the lease term was
determined to be 10 years. Control of the facility’s output was transferred to the Company just before the end of the first
quarter of 2025, with monthly payments commencing in the second quarter of 2025. As such, no significant expense has been incurred
to-date as the first full month in service is not until the following quarter.

The weighted average remaining lease term
for the finance lease is 10.0 years as of April 30, 2025. A discount rate of 6.9% was deemed appropriate as an incremental borrowing
rate for a 10 year term.

The following table is a summary of future
minimum rentals on such leases at April 30, 2025 (amounts in thousands):

    Years Ended January 31, 
    Minimum  Rentals 

    Remainder of 2026 
    $391