Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 12

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 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 does not expect the adoption of this ASU to have a material impact on the Consolidated Financial
Statements.

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
from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

The following tables shows disaggregated revenue
by product (amounts in thousands):

    Three Months Ended July 31,  
    Six Months Ended July 31,

    2025  
    2024  
    2025  
    2024 

    Ethanol 
    $123,312  
    $116,100  
    $247,709  
    $235,527 

    Dried distillers grains 
     21,260  
     21,847  
     43,546  
     52,533 

    Distillers corn oil 
     12,509  
     8,578  
     22