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

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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.

11

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
are subject to Topic 740 for annual reporting periods beginning after December 15, 2024. Early adoption and retrospective application
are permitted, but not required. The Company is currently evaluating the impact of this ASU.

In
November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40)”, which provides clarity in assessing an entity’s performance and prospects for future cash flows
by disclosure of more detailed information about the types of expenses in commonly presented expense captions. This ASU is effective
for the company’s fiscal year-ended January 31, 2028. Early adoption is permitted, but not required. The Company is currently
evaluating the impact of this ASU.

Note 3. Net Sales and Revenue

The Company recognizes sales of products
when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control
of products, generally upon shipment from the ethanol plant or upon loading of the rail car or truck used to transport the products.
Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value added
and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.

The majority of the Company’s sales
have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not
generally include a significant financing component. The Company has not historically entered into sales contracts in which payment
is due