REX AMERICAN RESOURCES Corp

Previous wording

One Earth Sequestration, LLC, a wholly owned subsidiary of One Earth Energy, LLC, is in the developmental stage of a carbon sequestration project near the One Earth ethanol plant. In October 2022, we applied for a Class VI injection well permit for three wells with the EPA, and we continue to provide information to the EPA upon request during the technical review of our application. We currently expect the EPA to prepare a draft permit by November 2025 and make a final permit decision by April 2026, according to the EPA’s Class VI Permit Tracker Dashboard on their website. We also need to obtain a county special-use zoning permit for the sequestration site. We have completed the construction of the capture and compression facility to capture, dehydrate, and compress carbon dioxide from the One Earth ethanol plant to a state suitable for sequestration. Testing has not yet been completed and we cannot begin construction of the pipeline or sequestration well until further permits and approvals are received.

Current wording

One Earth Sequestration, LLC, a wholly owned subsidiary of One Earth Energy, LLC, is in the developmental stage of a carbon sequestration project near the One Earth ethanol plant. In October 2022, we applied to the EPA for a Class VI injection well permit for three wells, and we continue to provide information to the EPA upon request during the technical review of our application. We currently expect the EPA to prepare a draft permit by November 2025 and make a final permit decision by March 2026, according to the EPA’s Class VI Permit Tracker Dashboard on their website. We also must obtain certain state and county permits for the sequestration site and pipeline. We have completed the construction of the capture and compression facility to capture, dehydrate, and compress carbon dioxide from the One Earth ethanol plant to a state suitable for sequestration. Testing has not yet been completed and we cannot begin construction of the CO 2 pipeline between the One Earth ethanol plant and the sequestration site or a sequestration well until further permits and approvals are received.

Previous wording

We have secured land easements from all necessary landowners to allow the construction of a pipeline on their land to the first two injection wells. We also have landowner subsurface easements for the first injection well with the capacity to allow for carbon sequestration for our One Earth plant for 15 years. The Illinois General Assembly passed the Safety and Aid for the Environment in Carbon Capture and Sequestration Act (Senate Bill 1289), which was signed by the Governor in July 2024. The new legislation imposes additional safety, environmental and other requirements on obtaining permits and approvals for carbon capture and sequestration facilities in Illinois, including CO2 pipelines. Further, the new legislation imposes a moratorium on the issuance of new certificates of authority for the construction of CO2 pipelines until the earlier of the date federal CO2 pipeline safety standards are finalized by the federal PHMSA or, subject to certain other conditions, July 1, 2026.

Current wording

We have secured land easements from all necessary landowners to allow the construction of the CO 2 pipeline on their land from the ethanol plant to the first two injection wells. We also have landowner subsurface easements for the first injection well with capacity sufficient to allow for carbon sequestration for our One Earth plant for an estimated 15 years. The Illinois General Assembly passed the Safety and Aid for the Environment in Carbon Capture and Sequestration Act (SB 1289), which was signed by the Governor in July 2024. The legislation imposes additional safety, environmental and other requirements on obtaining permits and approvals for carbon capture and sequestration facilities in Illinois, including CO 2 pipelines. Further, the legislation imposes a moratorium on the issuance of new certificates of authority for the construction of CO 2 pipelines until the earlier of the date new federal CO 2 pipeline safety standards are finalized by the federal PHMSA or, subject to certain other conditions, July 1, 2026.

Previous wording

Illinois Senate Bill 3968 was introduced during the 2024 legislative session and assigned to the Senate Executive Committee. The bill proposed banning carbon sequestration projects located over, under, or through a sole-source aquifer, including the three adjacent watersheds that make up the Mahomet Sole Source Aquifer Project Review Area, a designation established by the EPA in March 2015. However, SB 3968 did not advance and was not enacted during that session. In the 2025 legislative session, Senate Bill 1723 was introduced with an amendment that defined the term “sole-source aquifer” to specifically refer to the Mahomet Sole Source Aquifer Area, as defined by the EPA. Under this definition, SB 1723 would prohibit carbon sequestration activities over, under, or through the aquifer as defined in the bill. The Illinois Senate passed SB 1723 on April 10, 2025 and on May 20, 2025, the Illinois House of Representatives approved the bill. The legislation now awaits the Governor’s consideration and potential signature into law. The first proposed injection well for our carbon sequestration project is located in the northern portion of the Sangamon River near Fisher Upstream Area watershed, and it lies outside the mapped boundary of the Mahomet Sole Source Aquifer as defined in SB 1723, approximately five miles north of the Sangamon River and about six miles beyond the aquifer’s mapped boundary. The second and third proposed injection well sites are also located outside the areas designated as part of the Mahomet Sole Source Aquifer Project Review Area. The Company continues to closely monitor the progress of SB 1723 and is actively evaluating any potential implications it may have for the development and permitting of our carbon sequestration project.

Current wording

Illinois Senate Bill 1723 was signed into law by the Governor on August 1, 2025. SB 1723 prohibits carbon sequestration activities over, under, or through the aquifer as defined by the EPA. The proposed injection wells for our carbon sequestration project are located outside of this area.

Previous wording

We also intend to concurrently expand the One Earth ethanol plant. We received a construction permit from the EPA to increase production from 150 million gallons of ethanol per year to 175 million gallons of ethanol per year. Once we achieve that level of production, we intend to apply for another permit to increase production to 200 million gallons per year.

Current wording

We are also expanding the One Earth ethanol plant. We received a construction permit from the EPA to increase production from 150 million gallons of ethanol per year to 175 million gallons of ethanol per year. Once we achieve that level of production, we intend to apply for another permit to increase production to 200 million gallons per year.

Previous wording

We continue to work to identify ways to reduce our CI score at the One Earth plant with the intention of maximizing tax credits available under the IRA. The IRA created a new Clean Fuel Production Credit, available for calendar years 2025 – 2027, which established a credit of approximately $0.02 per ethanol gallon per CI point reduction below a 50 CI score threshold to incentivize further increases in plant efficiencies within the industry. The U.S. Department of the Treasury has not yet issued final rules on qualification for 45Z tax credits.

Current wording

We continue to work to identify ways to reduce our CI score at the One Earth plant with the intention of maximizing tax credits available under the IRA. The IRA created a new Clean Fuel Production Credit under Section 45Z, originally available for calendar years 2025 – 2027 which, based on proposed rulemaking by the United States Department of Treasury, will establish a credit that utilizes a sliding scale where credits can be earned in ten-cent increments between $0.10 and $1.00 per gallon of non-SAF fuels based on an ethanol plant’s GHG reduction below a 50 CI score threshold, with the first ten cents earned upon achieving a CI score below 47.5, to incentivize further increases in plant efficiencies within the industry. In July 2025, Congress passed the budget reconciliation bill known as the One Big Beautiful Bill Act, which was subsequently signed into law by the President. The law extended the time period which 45Z credits can be claimed by two years, through December 31, 2029. The U.S. Department of the Treasury has not yet issued final rules on qualification for 45Z tax credits.

Previous wording

We currently budget capital expenditures for both projects to be approximately $220 million to $230 million, subject to further refinement as we move forward. We plan to pay for all expenditures from available cash. As of April 30, 2025, we had spent $56.3 million since inception and were contractually committed to spend an additional $0.9 million toward the carbon sequestration project. If the carbon sequestration project is successful, we believe we will qualify for tax credits under section 45Q, based on tons of carbon sequestered, and section 45Z, based on gallons of ethanol produced, as outlined in the IRA. However, 45Z credits are only available for calendar years 2025 – 2027 and the regulations have not yet been finalized by the U.S. Department of the Treasury. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. As of April 30, 2025, we had spent $66.4 million since inception and were contractually committed to spend an additional $8.3 million toward plant capacity expansion and ongoing efforts to reduce our CI scoring.

Current wording

We currently budget capital expenditures for both the expansion and sequestration projects at One Earth to be approximately $220 million to $230 million, subject to further refinement as we move forward. We plan to pay for all expenditures from available cash. As of July 31, 2025, we had spent $57.4 million since inception toward the carbon sequestration project. If the carbon sequestration project is successful, we believe we will qualify for tax credits under section 45Q, based on tons of carbon sequestered, and section 45Z, based on gallons of ethanol produced, as outlined in the IRA and OBBBA. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. As of July 31, 2025, we had spent $69.3 million since inception and were contractually committed to spend an additional $45.2 million, inclusive of the $38.2 million equipment purchase and installation agreement entered into subsequent to the end of the quarter, toward plant capacity expansion and ongoing efforts to reduce our CI scoring.

Previous wording

In May 2023, NuGen, our majority owned ethanol plant in Marion, South Dakota, signed an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline. Should Summit Carbon Solutions be able to obtain all necessary permits and approvals, the agreement would allow NuGen to share in the economic benefits of tax credits through the sale of the carbon dioxide output of its ethanol production facility for sequestration, as well as reduce its net carbon emissions. In March 2025, South Dakota signed a bill into law that bans the use of eminent domain in connection with carbon dioxide pipelines. This act could make the sequestration project for the NuGen facility more difficult to complete.

Current wording

In May 2023, NuGen, our majority owned ethanol plant in Marion, South Dakota, signed an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline. Should Summit Carbon Solutions be able to obtain all necessary permits and approvals, the agreement would allow NuGen to share in the economic benefits of tax credits through the sale of the CO 2 output of its ethanol production facility for sequestration, as well as reduce its net carbon emissions. In March 2025, South Dakota signed a bill into law that bans the use of eminent domain in connection with CO 2 pipelines. This act could make the sequestration project for the NuGen facility more difficult to complete.

Previous wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. Using licensed technology, our plant applied two separate chemicals to convert feedstock coal into refined coal, which was sold to the end user of the refined coal. The refined coal operating results were subsidized by federal production tax credits through November 18, 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the IRC. We ceased operating the facility on November 18, 2021 and subsequently sold the facility. The approximately $58.2 million of federal production tax credits received through the ownership of this facility remain under IRS audit.

Current wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. Using licensed technology, our plant applied two separate chemicals to convert feedstock coal into refined coal, which was sold to the end user of the refined coal. The refined coal operating results were subsidized by federal production tax credits through November 18, 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the IRC. We ceased operating the facility on November 18, 2021 and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through the ownership of this facility remain under IRS audit. We have received an Acknowledgement of Facts notice from the IRS that they intend to deny these tax credits. We intend to vigorously defend these credits.

Previous wording

During the three months ended April 30, 2025, we did not change any of our critical accounting policies as disclosed in our 2024 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025.

Current wording

During the six months ended July 31, 2025, we did not change any of our critical accounting policies as disclosed in our 2024 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025.

Previous wording

Renewable Fuel Standard II, established in October 2010, has been an important factor in the growth of ethanol usage in the United States. In recent years, there has been much uncertainty in the enforcement of RFS II. When it was originally established, RFS II required the volume of “conventional” or corn derived ethanol to be blended with gasoline to increase each year until it reached 15.0 billion gallons in 2015 and required that it remain at that level through 2022. There are no established congressional target volumes beginning in 2023. The EPA has the authority to waive the biofuel mandate, in whole or in part, if there is inadequate domestic renewable fuel supply or the requirement severely harms the domestic economy or environment. In addition, under RFS II, a small refiner that processes less than 75,000 barrels of oil per day can petition the EPA for a waiver of their requirement to submit RINs. The EPA, through consultation with the Department of Energy and the Department of Agriculture, can grant the refiner a full or partial waiver, or deny the waiver. The EPA issued 88 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.3 billion gallons. The EPA has not granted any small refinery waivers for 2019-2022. There remain multiple ongoing legal challenges on how the EPA has handled the small refinery waivers. In July 2024, the U.S. Court of Appeals for the District of Columbia Circuit vacated many of the EPA’s 2022 SRE denials. The EPA had denied 105 SREs in 2022. As a result of this Court ruling, the EPA voluntarily moved to rescind the agency’s 2023 denial of 26 SREs. During the previous Trump administration, the EPA granted more SREs than under other administrations. These and additional SREs could lead to decreased RIN values and ethanol pricing. As of May 2025, there were 169 SRE petitions pending.

Current wording

Renewable Fuel Standard II, established in October 2010, has been an important factor in the growth of ethanol usage in the United States. There has been much uncertainty in the enforcement of RFS II. When it was originally established, RFS II required the volume of “conventional” or corn derived ethanol to be blended with gasoline to increase each year until it reached 15.0 billion gallons in 2015 and required that it remain at that level through 2022. There are no established congressional target volumes beginning in 2023. The EPA has the authority to waive the biofuel mandate, in whole or in part, if there is inadequate domestic renewable fuel supply or the requirement severely harms the domestic economy or environment. In addition, under RFS II, a small refiner that processes fewer than 75,000 barrels of oil per day can petition the EPA for a waiver of their requirement to submit RINs. The EPA, through consultation with the United States Department of Energy and the USDA, can grant the refiner a full or partial waiver, or deny the waiver. The EPA issued 88 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.3 billion gallons. The EPA did not grant any small refinery waivers for 2019-2022. There have been multiple ongoing legal challenges on how the EPA has handled the small refinery waivers. In July 2024, the U.S. Court of Appeals for the District of Columbia Circuit vacated many of the EPA’s 2022 SRE denials. As a result of this Court ruling, the EPA voluntarily moved to rescind the agency’s 2023 denial of 26 SREs. On August 22, 2025, the EPA ruled on much of the backlog of SREs, with 63 full exemptions, 77 partial exemptions of 50%, 28 denials and 7 ruled as ineligible. These and additional SREs could lead to decreased RIN values and ethanol pricing. As of August 22, 2025, there were 13 SRE petitions pending from compliance years 2021 and 2025. The total exemptions amount to approximately 5.3 billion credits. The EPA is currently working on determining how to reallocate credits exempted for 2023 and later years, which amount to 1.4 billion credits. In addition, the EPA laid out its new approach to ruling on SRE petitions. The agency said it would utilize the Department of Energy’s matrix for determining disproportionate harm unless the EPA’s “consideration of other economic factors, including refinery-specific information, compels the Agency to depart from that rebuttable presumption.” It also stated if the small refiner has already demonstrated compliance by retiring RINs it would return those RINs.

Previous wording

The EPA has issued Renewable Fuel Standard volume obligations for calendar years 2023-2025. The volumes from conventional biofuels (which includes corn-based ethanol) were 15.0 billion gallons for 2023 through 2025. Additionally, in 2023, the EPA restored 250 million gallons previously waived. The EPA was required to propose RVOs for 2026 by November 2024, but that deadline was missed. The EPA delivered the proposed 2026 RVOs to the White House Office of Management and Budget on May 14, 2025, which is the final step before being released to the public for comments.

Current wording

The EPA has issued RVOs for calendar years 2023-2025. The volumes from conventional biofuels (which includes corn-based ethanol) were 15.0 billion gallons for 2023 through 2025. Additionally, in 2023, the EPA restored 250 million gallons previously waived. In June 2025, the EPA issued proposed total RVOs for 2026 and 2027 of 15.0 billion gallons of conventional ethanol for each year.

Previous wording

The IRA may impact our business by creating a new Clean Fuel Production Credit, section 45Z, available for years 2025 to 2027. The Clean Fuel Production Credit is established at approximately $0.02 per ethanol gallon per CI point reduction below a 50 CI score threshold. The Act also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton, under section 45Q. Taxpayers may elect to be treated as making a payment against tax for 100% of the value of the 45Q credit (“direct pay”) for the first five years, starting with the year a qualifying carbon sequestration facility is placed in service, but not beyond December 31, 2032. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. Other potential impacts include (a) extending the biodiesel tax credit, which could impact our renewable corn oil values, as this co-product serves as a low-carbon feedstock for renewable diesel and biomass based diesel production; (b) creating a new tax credit for synthetic aviation fuel; (c) funding biofuel refueling infrastructure which could impact the availability of higher level ethanol blended fuel; and (d) provision for production and purchase credits for electric vehicles, which could impact the amount of internal combustion engines on the road over time, and ultimately reduce the demand for gasoline, diesel fuels and ethanol.

Current wording

The IRA, signed into law on August 16, 2022, created a new Clean Fuel Production Credit, section 45Z, originally available for years 2025 to 2027. Based on proposed rulemaking by the United States Department of Treasury, the Clean Fuel Production Credit will be established utilizing a sliding scale where credits may be earned in ten-cent increments between $0.10 and $1.00 per gallon of non-SAF fuels based on a plant’s GHG reduction below a 50 CI score threshold, with the first ten cents earned upon achieving a CI score below 47.5. The IRA also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton, under section 45Q. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available.

Previous wording

Additionally, see “One Earth Energy, LLC Carbon Sequestration and Plant Expansion” above for a discussion of certain other uncertainties associated with our Illinois carbon sequestration and plant expansion projects.

Current wording

Additionally, see “One Earth Energy, LLC Carbon Sequestration and Plant Expansion” above for a discussion of certain uncertainties associated with our Illinois carbon sequestration and plant expansion projects.

Previous wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax credits beginning on November 18, 2021, we ceased operations on that date and subsequently sold the facility. The approximately $58.2 million of federal production tax credits received through ownership of this facility remain under IRS audit.

Current wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax credits beginning on November 18, 2021, we ceased operations on that date and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through ownership of this facility remain under IRS audit. We have received an Acknowledgement of Facts notice from the IRS that they intend to deny these tax credits. We intend to vigorously defend these credits.

Previous wording

The United States exported an estimated 1.9 billion gallons of ethanol in 2024, up from approximately 1.4 and 1.3 billion gallons in 2023 and 2022, respectively. In 2024 and 2023, an estimated 12.2 and 10.8 million metric tons, respectively, of distillers grains were exported from the United States, which represented approximately 37% and 34% in 2024 and 2023, respectively, of U.S production. There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries which have been large purchasers from our industry in the United States which could affect future demand for these products.

Current wording

The United States exported an estimated 1.9 billion gallons of ethanol in 2024, up from approximately 1.4 and 1.3 billion gallons in 2023 and 2022, respectively. Through June 2025, the United States exported 1.1 billion gallons of ethanol, compared to 968 million gallons through June 2024. In 2024 and 2023, an estimated 12.2 and 10.8 million metric tons, respectively, of distillers grains were exported from the United States, which represented approximately 37% and 34% in 2024 and 2023, respectively, of U.S production. For the first half of calendar-year 2025, distiller grain exports declined by approximately. 6.5%. There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries which have been large purchasers from our industry in the United States which could affect future demand for these products.

Previous wording

Comparison of Three Months Ended April 30, 2025 and 2024

Current wording

Comparison of Three and Six Months Ended July 31, 2025 and 2024

Previous wording

Net sales and revenue in the quarter ended April 30, 2025 decreased 2% compared to the prior year first quarter.

Current wording

Net sales and revenue in the quarter ended July 31, 2025 increased 7% compared to the prior year second quarter. Net sales and revenue in the first six months ended July 31, 2025 increased approximately 2% compared to the first six months of 2024.

Previous wording

Ethanol revenue increased 4% in the first quarter of fiscal year 2025 compared to the first quarter of fiscal year 2024 as the selling price per gallon sold increased 10% during the first quarter of fiscal year 2025 compared to the prior year comparable period, partially offset by a 5% decrease in gallons of ethanol sold, impacted by lower production levels. The ethanol pricing increase was primarily driven by overall market supply and demand.

Current wording

Ethanol revenue increased 6% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as gallons sold during the quarter increased 8% over the prior year comparable period, partially offset by a 2% decrease in the selling price per gallon sold. Ethanol revenue increased 5% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the average selling price of ethanol at our consolidated plants increased 4%, coupled with a 1% increase in gallons sold during first six months of 2025 compared to the prior year comparable period. Ethanol pricing is affected by many factors, including overall market supply and demand, as well as corn and gasoline pricing.

Previous wording

Dried distillers grains revenue decreased 27% in the first quarter of fiscal year 2025 compared to the first quarter of fiscal year 2024 as the average price per ton sold decreased 22%, coupled with a 6% decrease in tons sold. The decrease in the dried distillers grains selling price is consistent with recent quarters and reflects an extended period of lower corn pricing as dried distillers grains prices often correlate with corn pricing. The decrease in tons sold was partially offset by an increase in tons of modified distillers grains sold, but also impacted by lower production levels. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Current wording

Dried distillers grains revenue decreased 3% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the average price per ton sold decreased 13%, offset partially by an 11% increase in tons sold. Dried distillers grains revenue decreased 17% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the average price per ton sold decreased 18%, offset partially by a 2% increase in tons sold. The decrease in the dried distillers grains selling price is consistent with recent quarters and reflects an extended period of lower corn pricing as dried distillers grains prices often correlate with corn pricing. The increase in tons sold was impacted by higher production levels and uncertainty in the market regarding tariffs.

Previous wording

Distillers corn oil revenue increased approximately 1% in the first quarter of fiscal year 2025 compared to the first quarter of fiscal year 2024 as the amount of pounds sold increased 2%, offset by a 2% decrease in the average price per pound. The decrease in the distillers corn oil selling price resulted primarily from fluctuations in demand in the renewable biodiesel market which often reflects the price of soybean oil.

Current wording

Distillers corn oil revenue increased approximately 46% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the selling price per pound increased 26% and the amount of pounds sold increased 14%. Distillers corn oil revenue increased approximately 22% in the first six months of 2025 compared to the first six months of fiscal year 2024 as the selling price per pound increased 11% and the amount of pounds sold increased 8%. The increase in the distillers corn oil selling price resulted primarily from fluctuations in demand in the renewable biodiesel market which often reflects the price of soybean oil.

Previous wording

Modified distillers grains revenue increased 36% in the first quarter of fiscal year 2025 compared to the first quarter of fiscal year 2024 as the amount of pounds sold increased by 52%, offset partially by a decrease in the average selling price per ton sold of 11%. The decrease in the modified distillers grains selling price resulted primarily from an extended period of lower corn prices as prices tend to move in the same direction. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Current wording

Modified distillers grains revenue increased 11% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the amount of tons sold increased by 10%, coupled with a 1% increase in the average selling price per ton sold. Modified distillers grains revenue increased 24% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the amount of tons sold increased by 29%, offset partially by a 4% decrease in the average selling price per ton sold. The decrease in the modified distillers grains selling price in the six-month periods resulted primarily from an extended period of lower corn prices as prices tend to move in the same direction, but are also impacted on changes in local market demand. As such, the price in the three-month comparable periods saw a slight increase. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Previous wording

Cost of sales decreased 2% in the quarter ended April 30, 2025, compared to the prior year first quarter. Corn accounted for approximately 74% ($106.3 million) of our cost of sales during the first quarter of fiscal year 2025 compared to approximately 75% ($110.6 million) during the first quarter of fiscal year 2024. Natural gas accounted for approximately 6% ($8.1 million) of our cost of sales during the first quarter of fiscal year 2025 and 5% ($7.1 million) in the first quarter of fiscal year 2024.

Current wording

Cost of sales increased 12% in the quarter ended July 31, 2025, compared to the prior year second quarter. Corn accounted for approximately 74% ($106.5 million) of our cost of sales during the second quarter of fiscal year 2025 compared to approximately 77% ($98.9 million) during the second quarter of fiscal year 2024. Natural gas accounted for approximately 4% ($5.7 million) of our cost of sales during the second quarter of fiscal year 2025 and 3% ($3.9 million) in the second quarter of fiscal year 2024. Cost of sales increased 5% in the first six months of fiscal year 2025, compared to the first six months of fiscal year 2024. Corn accounted for approximately 74% ($212.9 million) of our cost of sales during the first six months of fiscal year 2025 compared to approximately 76% ($209.6 million) during the first six months of fiscal year 2024. Natural gas accounted for approximately 5% ($13.8 million) of our cost of sales during the first six months of fiscal year 2025 and 4% ($11.0 million) in the first six months of fiscal year 2024.

Previous wording

As a result of the foregoing, gross profit for the first quarter of fiscal year 2025 decreased approximately $0.1 million compared to the prior year first quarter.

Current wording

As a result of the foregoing, gross profit for the second quarter of fiscal year 2025 decreased approximately $5.5 million compared to the prior year second quarter. Gross profit for the first six months of fiscal year 2025 decreased approximately $5.6 million compared to the first six months of fiscal year 2024.

Previous wording

SG&A expenses were approximately $5.9 million for the first quarter of fiscal year 2025, compared to approximately $6.1 million of expenses for the first quarter of fiscal year 2024. The decreases compared to the prior year first quarter are due primarily to a decrease in performance bonus expense of $0.2 million and a decrease in stock compensation expense of $0.3 million subsequent to the completion of the restricted stock units performance period on December 31, 2024. These decreases were partially offset by an increase in rail car lease expense due to higher rates realized upon lease renewals.

Current wording

SG&A expenses were approximately $6.2 million for the second quarter of fiscal year 2025, compared to approximately $6.4 million of expenses for the second quarter of fiscal year 2024. SG&A expenses were approximately $12.1 million for the first six months of fiscal year 2025, compared to approximately $12.6 million for the first six months of fiscal year 2024. The decreases compared to the prior year are due primarily to a decrease in performance bonus expense of $0.8 million and $1.0 million in the second quarter of fiscal year 2025 and the first six months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024. Additionally, there was a decrease in stock compensation expense of approximately $0.2 million and $0.5 million in the second quarter of fiscal year 2025 and the first six months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024 subsequent to the completion of the restricted stock units performance period on December 31, 2024. These decreases were partially offset by an increase in rail car lease expense due to higher rates realized upon lease renewals.

Previous wording

During the first quarter of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $1.0 million compared to income of approximately $1.7 million for the first quarter of fiscal year 2024. Our investment in Big River, which has interests in four ethanol production plants, represents an effective ownership of approximately 39.2 million gallons of ethanol shipped in the trailing twelve months ended April 30, 2025. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

Current wording

During the second quarter of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $0.9 million compared to income of approximately $1.7 million for the second quarter of fiscal year 2024. During the first six months of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $1.9 million compared to income of approximately $3.5 million during the first six months of fiscal year 2024. Our investment in Big River, which has interests in four ethanol production plants, represents an effective ownership of approximately 38.0 million gallons of ethanol shipped in the trailing twelve months ended July 31, 2025. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

Previous wording

Interest and other income was approximately $4.2 million for the first quarter of fiscal year 2025 versus approximately $5.9 million for the first quarter of fiscal year 2024. The decrease is primarily related to decreased interest income of $1.3 million in the current year based upon lower balances and yields on our excess cash and short-term investments in fiscal year 2025, compared to 2024. One of our consolidated ethanol plants recognized $0.5 million less in patronage income from an investment in a cooperative in the first quarter of 2025 ($0.7 million) compared to the first quarter of 2024 ($1.2 million). We do not expect patronage income from this investment in a cooperative to be significant in future periods.

Current wording

Interest and other income was approximately $3.1 million for the second quarter of fiscal year 2025 versus approximately $4.4 million for the second quarter of fiscal year 2024. Interest and other income was approximately $7.3 million for the first six months of 2025 versus approximately $10.3 million for the first six months of fiscal year 2024. The decrease is primarily related to decreased interest income of $1.2 million and $2.4 million in the second quarter and first six months of fiscal year 2025, respectively, based upon lower balances and yields on our excess cash and short-term investments in fiscal year 2025, compared to 2024. One of our consolidated ethanol plants recognized $0.5 million less in patronage income from an investment in a cooperative in the first six months of 2025 ($0.7 million) compared to the first six months of 2024 ($1.2 million). We do not expect patronage income from this investment in a cooperative to be significant in future periods.

Previous wording

As a result of the foregoing, income before income taxes was approximately $13.6 million and $16.0 million for the first quarters of fiscal year 2025 and 2024, respectively.

Current wording

As a result of the foregoing, income before income taxes was approximately $12.1 million and $19.5 million for the second quarters of fiscal year 2025 and 2024, respectively. Income before income taxes was approximately $25.7 million and $35.5 million for the first six months of fiscal year 2025 and 2024, respectively.

Previous wording

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. Ourincome tax provision was approximately $3.0 million and $3.7 million for the three months ended April 30, 2025 and 2024, respectively.

Current wording

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. Our income tax provision was approximately $2.8 million and $4.5 million for the three months ended July 31, 2025 and 2024, respectively. Our income tax provision was approximately $5.7 million and $8.2 million for the first six months of fiscal year 2025 and 2024, respectively.

Previous wording

As a result of the foregoing, net income was approximately $10.7 million for the first quarter of fiscal year 2025 compared to approximately $12.3 million for the first quarter of fiscal year 2024.

Current wording

As a result of the foregoing, net income was approximately $9.3 million for the second quarter of fiscal year 2025 compared to approximately $15.0 million for the second quarter of fiscal year 2024. Net income was approximately $20.0 million for the first six months of fiscal year 2025 compared to approximately $27.3 million for the first six months of fiscal year 2024.

Previous wording

Net income attributable to non-controlling interests was approximately $2.0 million for the first quarter of fiscal year 2025 and $2.1 million for the first quarter of 2024. These amounts represent the other owners’ share of the income of NuGen and One Earth.

Current wording

Net income attributable to noncontrolling interests was approximately $2.2 million for the second quarter of fiscal year 2025 and $2.6 million for the second quarter of 2024. Net income attributable to noncontrolling interests was approximately $4.2 million for the first six months of fiscal year 2025 and $4.7 million for the first six months of fiscal year 2024. These amounts represent the other owners’ share of the income of NuGen and One Earth.

Previous wording

As a result of the foregoing, net income attributable to REX common shareholders for the first quarter of fiscal year 2025 wasapproximately$8.7 million, compared to net income attributable to REX common shareholders ofapproximately$10.2 million for the first quarter of fiscal year 2024.

Current wording

As a result of the foregoing, net income attributable to REX common shareholders for the second quarter of fiscal year 2025 was approximately $7.1 million, compared to net income attributable to REX common shareholders of approximately $12.4 million for the second quarter of fiscal year 2024. Net income attributable to REX common shareholders from the first six months of fiscal year 2025 was approximately $15.8 million, compared to net income attributable to REX common shareholders of approximately $22.6 million for the first six months of fiscal year 2024.

Previous wording

Net cash used in operating activities was approximately $3.5 million for the first quarter of fiscal year 2025, compared to net cash used in operating activities of approximately $2.3 million for the first quarter of fiscal year 2024. For the first quarter of fiscal year 2025, cash was provided by net income of approximately $10.7 million, adjusted upward for non-cash items of approximately $4.4 million, which consisted of depreciation, amortization of operating lease right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, and stock-based compensation expense. An increase in the balance of accounts receivable used cash of approximately $6.5 million, primarily as a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories decreased over the first quarter of fiscal year 2025, providing cash of approximately $1.2 million. A decrease in the balance of other assets of approximately $0.1 million primarily related to decreases in prepaid insurance as well as by changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value, offset by increases in spare parts inventory and other prepaid balances. An increase in the balance of refundable income taxes of approximately $0.9 million primarily relates to the accrual of the federal taxes currently payable being less than estimated federal tax payments made to date. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $8.9 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $3.8 million, which was primarily caused by a decrease in accrued payroll which used cash of approximately $5.2 million, due to the timing of annual bonus payments. Additionally, a decrease in the lease liability used cash of $1.5 million based on payments made during the quarter. These decreases are partially offset by an increase in other current liabilities of $3.0 million.

Current wording

For the first six months of fiscal year 2025, cash was provided by net income of approximately $20.0 million, adjusted upward for non-cash items of approximately $11.4 million, which consisted of depreciation, amortization of right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on disposal of property and equipment. Big River paid dividends to REX of approximately $2.5 million during the first six months of fiscal year 2025. An increase in the balance of accounts receivable used cash of approximately $3.3 million, primarily as a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories were nearly flat over the first six months of fiscal year 2025. An increase in the balance of other assets of approximately $0.6 million primarily related to increases in spare parts and in prepayments for certain fixed assets, offset by decreases in prepaid insurance and changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value. An increase in the balance of refundable income taxes of approximately $2.0 million primarily relates to the accrual of the federal taxes currently payable being less than estimated federal tax payments made to date. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $9.9 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $5.5 million, which was primarily caused by a decrease in accrued payroll which used cash of approximately $4.4 million, due to the timing of annual bonus payments. Additionally, a decrease in the lease liability used cash of $3.0 million based on payments made during the quarter. These decreases are partially offset by an increase in other current liabilities of $1.9 million.

Previous wording

Net cash used in operating activities was approximately $2.3 million for the first quarter of fiscal year 2024. For the first quarter of fiscal year 2024, cash was provided by net income of approximately $12.3 million, adjusted upward for non-cash items of approximately $5.6 million, which consisted of depreciation, amortization of operating lease right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, and stock-based compensation expense. A decrease in the balance of accounts receivable provided cash of approximately $1.7 million, primarily a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories were nearly flat over the first three months of fiscal year 2024. An increase in the balance of other assets of approximately $3.8 million primarily related to prepayments on certain executed lease agreements, offset by changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value. A decrease in the balance of refundable income taxes of approximately $1.1 million primarily relates to the accrual of the federal taxes currently payable for first quarter of 2024. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $12.7 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $6.2 million, which was primarily caused by a decrease in accrued payroll of approximately $5.4 million following the payment of fiscal year 2023 bonuses.

Current wording

For the first six months of fiscal year 2024, cash was provided by net income of approximately $27.3 million, adjusted upward for non-cash items of approximately $12.6 million, which consisted of depreciation, amortization of right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on disposal of property and equipment. An increase in the balance of accounts receivable used cash of approximately $1.1 million, primarily a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories increased over the first six months of fiscal year 2024, using cash of approximately $2.2 million. An increase in the balance of other assets of approximately $12.3 million primarily related to prepayments on certain executed lease agreements, offset by changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value, decreases to spare parts inventory, and decreases to prepaid insurance balances. A decrease in the balance of refundable income taxes of approximately $0.5 million primarily relates to the accrual of the federal taxes currently payable and the timing of estimated tax payments for the first six months of 2024. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $14.0 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $5.0 million, which was primarily caused by a decrease in accrued payroll of approximately $3.9 million following the payment of fiscal year 2023 bonuses, offset by the accrual of the first six months of the fiscal year 2024 bonuses. Additionally, a reduction in the lease and accrued utility liabilities used cash of approximately $3.0 million and $1.8 million, respectively. These reductions were offset primarily by an increase in the mark-to-market liability recorded for certain corn contracts.

Previous wording

At April 30, 2025, working capital was approximately $356.2 million, compared to $385.4 million at January 31, 2025. The ratio of current assets to current liabilities was 9.4 to 1 at April 30, 2025 and 8.6 to 1 at January 31, 2025.

Current wording

At July 31, 2025, working capital was approximately $353.4 million, compared to $385.4 million at January 31, 2025. The ratio of current assets to current liabilities was 10.5 to 1 at July 31, 2025 and 8.6 to 1 at January 31, 2025.

Previous wording

Cash of approximately $1.8 million was provided by investing activities for the first quarter of fiscal year 2025, compared to cash provided by investing activities of approximately $11.9 million during the first quarter of fiscal year 2024. During the first quarter of fiscal year 2025, the Company had capital expenditures of approximately $6.9 million, primarily for various capital projects at our consolidated ethanol plants, including $5.1 million for expansion and CI scoring reduction projects at the One Earth facility and $0.7 million for the carbon sequestration project. During the first quarter of fiscal year 2025, we purchased short-term U.S. Treasury Bills of approximately $41.4 million, while U.S. Treasury Bills of approximately $50.0 million matured. The U.S Treasury Bills had maturities of less than one year and we classified them as short-term investments. Depending on the investment options available, we may elect to retain the funds, or a portion thereof, in cash, short-term investments or long-term investments.

Current wording

Cash of approximately $67.5 million was provided by investing activities for the first six months of fiscal year 2025, compared to cash provided by investing activities of approximately $33.8 million during the first six months of fiscal year 2024. During the first six months of fiscal year 2025, the Company had capital expenditures of approximately $28.9 million, primarily for various capital projects at our consolidated ethanol plants, including $9.7 million for expansion and CI scoring reduction projects at the One Earth facility and $2.1 million for the carbon sequestration project. During the first six months of fiscal year 2025, we purchased short-term U.S. Treasury Bills of approximately $90.7 million, while U.S. Treasury Bills of approximately $187.0 million matured. The U.S Treasury Bills had maturities of less than one year and we classified them as short-term investments. Depending on the investment options available, we may elect to retain the funds, or a portion thereof, in cash, short-term investments or long-term investments.

Previous wording

Cash of approximately $11.9 million was provided by investing activities for the first quarter of fiscal year 2024. During the first quarter of fiscal year 2024, we had capital expenditures of approximately $24.8 million, primarily for various capital projects at our consolidated ethanol plants, including $10.1 million for expansion and CI scoring reduction projects at the One Earth facility and $11.0 million for the carbon sequestration project. During the first quarter of fiscal year 2024, we purchased U.S. Treasury Bills of approximately $85.0 million. During the first quarter of fiscal year 2024 U.S. Treasury Bills of approximately $121.5 million matured. The U.S Treasury Bills had maturities of less than one year and we classified them as short-term investments.

Current wording

Cash of approximately $33.8 million was provided by investing activities for the first six months of fiscal year 2024. During the first six months of fiscal year 2024, we had capital expenditures of approximately $40.2 million, primarily for various capital projects at our consolidated ethanol plants, including $15.4 million for expansion and CI scoring reduction projects at the One Earth facility and $17.4 million for the carbon sequestration project. During the first six months of fiscal year 2024, we purchased short-term U.S. Treasury Bills of approximately $156.1 million, while short-term U.S. Treasury Bills of approximately $229.7 million matured. The U.S Treasury Bills had maturities of less than one year and we classified them as short-term investments.

Previous wording

Cash of approximately $32.7 million was used in financing activities in the first quarter of fiscal year 2025 for the repurchase of the Company’s stock. There were no repurchases of Company stock in the first quarter of 2024. Additionally, $2.0 million was used in the first quarter of fiscal year 2025 for payments to non-controlling interests holders, compared to approximately $1.8 million for the first quarter of fiscal year 2024.

Current wording

Cash of approximately $33.4 million was used in financing activities in the first six months of fiscal year 2025 for the repurchase of the Company’s stock. There were no repurchases of Company stock in the first six months of 2024. Additionally, $2.3 million was used in the first six months of fiscal year 2025 for payments to noncontrolling interests holders, compared to approximately $1.8 million for the first six months of fiscal year 2024.

Previous wording

We are investigating various uses for our excess cash and short-term investments. We expect total capital expenditures related to the construction at the One Earth facilities to approximate $220 million to $230 million, inclusive of the carbon sequestration project and plant capacity expansion and ongoing efforts to reduce CI scoring, which we currently plan to pay from our available cash. This estimate is subject to further refinement as the project progresses. As of April 30, 2025, we had spent $56.3 million since inception and were contractually committed to spend an additional $0.9 million toward the carbon sequestration project. As of April 30, 2025, we had spent $66.4 million since inception and were contractually committed to spend an additional $8.3 million toward plant capacity expansion and CI scoring reduction efforts. For all projects, we plan to spend $60 million to $80 million during the remainder of fiscal year 2025.

Current wording

We are investigating various uses for our excess cash and short-term investments. We expect total capital expenditures related to the construction at the One Earth facilities to approximate $220 million to $230 million, inclusive of the carbon sequestration project and plant capacity expansion and ongoing efforts to reduce CI scoring, which we currently plan to pay from our available cash. This estimate is subject to further refinement as the project progresses. As of July 31, 2025, we had spent $57.4 million since inception and were contractually committed to spend an additional $0.1 million toward the carbon sequestration project. As of July 31, 2025, we had spent $69.3 million since inception and were contractually committed to spend an additional $45.2 million, inclusive of the $38.2 million equipment purchase and installation agreement entered into subsequent to the end of the quarter, toward plant capacity expansion and CI scoring reduction efforts. For all projects, we plan to spend $50 million to $60 million during the remainder of fiscal year 2025.

Previous wording

We have a stock buyback program with 1,181,963 shares remaining authorized at April 30, 2025. We typically repurchase our common stock when our stock price is trading at a price we deem to be a discount to the underlying value of our net assets. We continue to seek investment opportunities, including ethanol and/or energy related, carbon sequestration related, agricultural or other ventures, we believe meet our investment criteria.

Current wording

We have a stock buyback program with 1,178,593 shares remaining authorized at July 31, 2025. We typically repurchase our common stock when our stock price is trading at a price we deem to be a discount to the underlying value of our net assets. We continue to seek investment opportunities, including ethanol and/or energy related, carbon sequestration related, agricultural or other ventures, we believe meet our investment criteria.