Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 57

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 leases. The lease agreements do not contain
a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the
present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable
period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases
include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

The components of lease expense, classified
as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

    Three Months Ended April 30, 

    2025  
    2024 

    Operating lease expense 
    $2,008  
    $1,682 

    Variable lease expense 
     66  
     54 

    Total lease expense 
    $2,074  
    $1,736 

Total cash paid for amounts included in the
measurement of lease liabilities was $2.2 millions and $1.6 million in the three months ended April 30, 2025 and 2024, respectively.

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 
    $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