Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 69

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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    $1,955  
    $1,821  
    $5,806  
    $4,981 

14

The following table is a summary of future
minimum rentals on such leases at October 31, 2025 (amounts in thousands):

    Years Ended January 31, 
    Minimum Rentals 

    Remainder of 2026 
    $1,931 

    2027 
     7,706 

    2028 
     6,378 

    2029 
     3,698 

    2030 
     2,036 

    Thereafter 
     133 

    Total 
     21,882 

    Less: present value discount 
     2,205 

    Operating lease liabilities 
    $19,677 

At October 31, 2025, the weighted average
remaining lease term is 2.9 years, and the weighted average discount rate is 6.60% for the outstanding leases. 

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 October 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 nine-month periods ended October 31, 2025, expense related
to this lease was approximately $0.5 million and $1.1 million, respectively, which includes approximately $57,000 and $115,000,
respectively, in interest expense.

The weighted average remaining lease term
for the finance lease is 9.5 years as of October 31, 2025