Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 14

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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    Years Ended January 31, 
    Minimum
    Rentals 

    Remainder of 2026 
    $3,862 

    2027 
     7,706 

    2028 
     6,378 

    2029 
     3,698 

    2030 
     2,036 

    Thereafter 
     133 

    Total 
     23,813 

    Less: present value discount
     2,556 

    Operating lease liabilities
    $21,257 

At July 31, 2025, the weighted average remaining
lease term is 3.1 years, and the weighted average discount rate is 6.59% for the outstanding leases. 

14

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 Lease

At July 31, 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. 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 lease
expense commencing in the second quarter of 2025. For the three- and six-month period ended July 31, 2025, expense related to this
lease was approximately $500,000, which includes approximately $60,000 in interest expense.

The weighted average remaining lease term for
the finance lease is 9.8 years as of July 31, 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 the lease at July 31, 2025 (amounts in thousands):

    Years Ended January 31, 
    Minimum
    Rentals