Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 81

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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2019, with an unrelated party for the use of a portion of that party’s natural gas pipeline, with monthly
payments of $29,250. One Earth paid approximately $88,000 in the three-month periods ended October 31, 2025 and 2024 and $263,000
in the nine-month periods ended October 31, 2025 and 2024, pursuant to the agreement.

At October 31, 2025, One Earth and NuGen
had combined signed non-cancelable contracts for capital projects with approximately $17.4 million remaining in future payments.

Note 14. Related-Party Transactions

During the third quarters of fiscal years
2025 and 2024, One Earth and NuGen purchased approximately $19.4 million and $22.7 million, respectively, of corn (and other supplies)
from minority equity investors and board members of those affiliates. Such purchases totaled approximately $73.3 million and $81.7
million for the nine months ended October 31, 2025 and 2024, respectively. The Company had amounts payable to related parties of
approximately $0.6 million and $1.4 million at October 31, 2025 and January 31, 2025, respectively.

During the nine months ended October 31,
2024, $1.5 million was paid to landowners who are minority equity investors of One Earth Energy, for land easements related
to the carbon sequestration project. There were no amounts paid to related parties for land easements in the three-month period
ended October 31, 2024 or during fiscal year 2025.

Note 15. Segment Reporting

The Company has one reportable segment, ethanol
and by-products. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability
companies, two of which are majority ownership interests and are consolidated in the financial statements presented. Prior period
amounts have been reclassified to conform to current segment reporting.

The members of the Executive Committee, consisting
of the Executive Chairman of the Board and the Chief Executive Officer, are the Company’s chief operating decision maker. The chief
operating decision maker uses net income generated from operating segments in determining the allocation of resources and making
assessment of Company performance.

In applying the criteria set forth in ASC
280, the Company determined that based on the nature of the products and production process and the expected financial results,
the Company’s operations at its