Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 45

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 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
$9.9 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 $5.5 million, which was primarily caused by a decrease in accrued payroll which used
cash of approximately $4.4 million, due to the timing of annual bonus payments. Additionally, a decrease in the lease liability
used cash of $3.0 million based on payments made during the quarter. 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