Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 137

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 2
Chunk 137
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. These decreases are partially offset by an increase in other
current liabilities of $1.9 million.

For the first six months of fiscal year 2024,
cash was provided by net income of approximately $27.3 million, adjusted upward for non-cash items of approximately $12.6 million,
which consisted of depreciation, amortization of right-of-use assets, income from equity method investments, interest income from
short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on disposal of property and
equipment. An increase in the balance of accounts receivable used cash of 

36

approximately $1.1 million, primarily a result of the
timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories increased over the first six
months of fiscal year 2024, using cash of approximately $2.2 million. An increase in the balance of other assets of approximately
$12.3 million primarily related to prepayments on certain executed lease agreements, offset by changes in the carrying value of
forward purchase contracts and commodity futures positions recorded at fair value, decreases to spare parts inventory, and decreases
to prepaid insurance balances. A decrease in the balance of refundable income taxes of approximately $0.5 million primarily relates
to the accrual of the federal taxes currently payable and the timing of estimated tax payments for the first six months of 2024.
While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75%
of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $14.0 million, which was primarily
a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately
$5.0 million, which was primarily caused by a decrease in accrued payroll of approximately $3.9 million following the payment of
fiscal year 2023 bonuses, offset by the accrual of the first six months of the fiscal year 2024 bonuses. Additionally, a reduction
in the lease and accrued utility liabilities used cash of approximately $3.0 million and $1.8 million, respectively. These reductions
were offset primarily by an increase in the mark-to-market liability recorded for certain corn contracts.

At July 31, 2025, working capital was approximately
$353.4 million, compared to $385.4 million at January 31, 2025. The ratio