Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At the close of business on ~~September 2, 2021~~May 26, 2022 the registrant had ~~5,970,938~~5,920,351 shares of Common Stock, par value $.01 per share, outstanding.

The accompanying notes are an integral part of these unaudited consolidated condensed financial ~~statements.~~statements.

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

For the Three ~~and Six~~ Months Ended ~~July 31,~~April 30, 2022 and 2021 ~~and 2020~~

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

(In Thousands)	Six Months Ended July 31,				Three Months Ended
	2021		2020		April 30,
					2022		2021
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$	18,450	$	(10,463)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Net income including noncontrolling interests					$	6,986	$	8,398
Net income from discontinued operations, net of tax						-		435
Net income from continuing operations						6,986		7,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		10,451		10,491		4,459		4,551
Amortization of operating lease right-of-use assets		2,734		2,691		1,430		1,389
(Income) loss from equity method investments		(2,414)		984
Dividends received from equity method investee		-		2,005
Income from equity method investments						(1,951)		(570)
Interest income from investments		(27)		(179)		(148)		(15)
Deferred income tax		(4,741)		(4,784)		1,161		2,303
Stock based compensation expense		567		80		218		291
Gain on sale of property and equipment – net		(3)		(22)
Loss (gain) on sale of property and equipment – net						5		(3)
Changes in assets and liabilities:
Accounts receivable		(9,808)		3,225		381		(7,844)
Inventories		(3,879)		5,251		(14,163)		11,206
Refundable income taxes		(872)		(4,591)		581		(88)
Other assets		293		(481)		(3,529)		(2,169)
Accounts payable, trade		5,457		(10,301)		(13,233)		(654)
Other liabilities		949		(2,940)		124		(1,264)
Net cash provided by (used in) operating activities		17,157		(9,034)
Net cash (used in) provided by operating activities from continuing operations						(17,679)		15,096
Net cash used in operating activities from discontinued operations						-		(1,533)
Net cash (used in) provided by operating activities						(17,679)		13,563
Cash flows from investing activities:
Capital expenditures		(2,693)		(5,692)		(1,462)		(1,267)
Purchase of short-term investments		(49,281)		(45,450)		(161,599)		(25,930)
Sale of short-term investments		52,220		39,046		20,278		26,275
Proceeds from sale of real estate and property and equipment		30		-
Other		-		(259)		-		30
Net cash provided by (used in) investing activities		276		(12,355)
Net cash used in investing activities						(142,783)		(892)
Cash flows from financing activities:
Treasury stock acquired		(1,356)		(5,590)
Payments to noncontrolling interests holders		(1,304)		(157)		(1)		(75)
Capital contributions from minority investor		139		23
Net cash used in financing activities from continuing operations						(1)		(75)
Net cash provided by financing activities from discontinued operations						-		68
Net cash used in financing activities		(2,521)		(5,724)		(1)		(7)

Net increase (decrease) in cash, cash equivalents and restricted cash		14,912		(27,113)
Net (decrease) increase in cash, cash equivalents and restricted cash						(160,463)		12,664
Cash, cash equivalents and restricted cash, beginning of period		146,158		180,771		232,068		146,158
Cash, cash equivalents and restricted cash, end of period	$	161,070	$	153,658	$	71,605	$	158,822

Non cash investing activities – Accrued capital expenditures	$	67	$	22
Non cash financing activities – Stock awards accrued	$	482	$	-
Non cash financing activities – Stock awards issued	$	100	$	240
Right-of-use assets acquired and liabilities incurred upon lease execution	$	3,267	$	1,863
Reconciliation of total cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	154,312	$	152,708
Restricted cash		6,758		950
Total cash, cash equivalents and restricted cash	$	161,070	$	153,658

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
~~July 31, 2021~~April 30, 2022

References to the Company – References to “REX” or the “Company” in the consolidated condensed financial statements and in these notes to the consolidated condensed financial statements refer to REX American Resources Corporation, a Delaware corporation, and its majority and wholly owned subsidiaries.

The consolidated condensed financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, ~~2021~~2022 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, ~~2021~~2022 (fiscal year ~~2020)~~2021). It is suggested that these unaudited consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, ~~2021.~~2022. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.

Basis of Consolidation – The consolidated condensed financial statements in this report include the operating results and financial position of the Company. All intercompany balances and transactions have been eliminated. The Company consolidates the results of its 4wholly owned and majority owned subsidiaries. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Condensed Statements of Operations on a delayed basis of one month as One Earth has a fiscal year end of December 31. On November 18, 2021, the Company ceased operation of its refined coal business as tax credits could no longer be earned on its operations. Beginning in the third quarter of fiscal year 2021, the results of the operation of the refined coal business were recognized in discontinued operations. Prior period amounts have been reclassified to conform with discontinued operations reporting.

Nature of Operations – ~~The~~Beginning in the third quarter of fiscal year 2021, the Company now has 21 reportable ~~segments: i)~~segment, ethanol and ~~by-products; and ii) refined coal.~~by-products. Within the ethanol and by-products segment, the Company has equity investments in 3 ethanol limited liability companies, 2 of which are majority ownership interests. ~~Within~~Prior period amounts have been reclassified to conform to the ~~refined coal~~current segment ~~the Company has a majority equity interest in 1 refined coal limited liability company.~~reporting.

The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the

Company’s fiscal year ~~2020~~2021 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and

the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates.

Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.

~~For ethanol and by-products segment sales, the~~The Company recognizes sales of ethanol, distillers grains and non-food grade corn oil 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 used to transport the products. For refined coal segment sales, the Company recognizes sales of refined coal when obligations under the term of the contract with its customer are satisfied; this occurs when title and control of the product transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which the processed refined coal is sold.

Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain ~~compensations~~compensation costs and general facility overhead charges.

The Company includes non-production related costs such as professional fees, outbound freight charges, selling charges and certain payroll in SG&A expenses. Outbound freight charges were approximately ~~$1,561,000~~$273,000 and ~~$839,000~~$5,596,000 in the ~~second~~first quarter of fiscal years ~~2021~~2022 and ~~2020, respectively and approximately $7,156,000 and $2,162,000 in the first six months of fiscal years~~ 2021, ~~and 2020,~~ respectively.

Certain of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business.

The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating

results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in

which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

~~The~~Prior to the third quarter of fiscal year 2021, the Company determined that small changes in estimated “ordinary” income could result in significant changes in the estimated annual effective tax rate. Thus, the Company used a discrete effective tax rate method to calculate the provision or benefit for income taxes for the three ~~and six~~ months ended ~~July~~April 30, 2021. Beginning on November 18, 2021, we were unable to earn additional tax credits related to the refined coal facility, and therefore, ceased operation of that facility. As earning these credits is what had caused the significant changes in the estimated annual effective tax rate from small changes in estimated “ordinary” income and we have now classified the refined coal segment as discontinued operations, we have returned to using the annual effective tax rate method to calculate the provision or benefit for income taxes from continuing operations beginning in the three and nine month periods ended October 31, ~~2021 and 2020.~~2021.

The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid no income taxes ~~of $1.9 million~~ and received 0no refunds of income taxes during the ~~six~~three months ended ~~July 31,~~April 30, 2022 and 2021. ~~The Company paid income taxes of approximately $0.3 million and received refunds of income taxes of approximately $0.3 million during the six months ended July 31, 2020.~~

As of ~~July 31, 2021,~~April 30, 2022, and January 31, ~~2021,~~2022, total unrecognized tax benefits were approximately ~~$8,655,000~~$16,827,000 and ~~$8,380,000,~~$16,741,000, respectively. Accrued penalties and interest were approximately ~~$30,000~~$42,000 and approximately ~~$20,000~~$40,000 at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021,~~2022, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately ~~$8.6~~$16.7 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.

Inventories are carried at the lower of cost or net realizable value on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities associated with producing ethanol and related ~~by-products and refined coal.~~by-products. Inventory is written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. The Company recorded approximately ~~$1.3 million and approximately $1.0~~$0.5 million of inventory write-downs in cost of sales at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021, respectively.~~2022. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time.

~~commodity prices at a given point in time.~~ The components of inventory are as follows as of the dates presented (amounts in thousands):

	July 31, 2021		January 31, 2021		April 30, 2022			January 31, 2022

Ethanol and other finished goods	$	15,986	$	18,346		$	22,241		$	13,158
Work in process		6,451		4,374			6,846			5,473
Grain and other raw materials		19,322		15,160			27,301			23,594
Total	$	41,759	$	37,880		$	56,388		$	42,225

Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 515 to 40 years for buildings and improvements, and 23 to 20 years for fixtures and equipment.

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable. The Company did not identify any indicators of impairment during the first ~~six~~three months of fiscal year 2022 or 2021, thus there were no impairment charges in the first ~~six~~three months of fiscal year 2022 or 2021. During fiscal year 2020, the Company concluded that the impact of the coronavirus (” COVID-19”) pandemic on the ethanol industry and the Company’s operating results was an indicator that impairment may exist related to certain of its long-lived assets. As a result, the Company performed a recoverability test and determined that there was no impairment for fiscal year 2020. There were no impairment charges in the first six months of fiscal year 2020.

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any.

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than

temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established.

Short-term investments are considered held to maturity, and therefore are carried at amortized historical cost.

On November 18, 2021, the Company ceased operation of its refined coal business as tax credits could no longer be earned on its operation. Beginning in the third quarter of fiscal year 2021, the results of the operation of the refined coal business have been recognized in discontinued operations. Prior period amounts have been reclassified to conform with discontinued operations reporting.

The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income.

In ~~December 2019,~~November 2021, the ~~Financial Accounting Standards Board (“FASB”)~~FASB issued ~~Accounting Standards Update (“ASU”) 2019-12, “~~~~Income Taxes~~ASU 2021-10, “Government Assistance (Topic ~~740)~~832): ~~Simplifying the Accounting for Income Taxes~~”Disclosures by Business Entities about Government Assistance”, which ~~simplifies~~increases the ~~accounting~~transparency of government assistance received by businesses by expanding the disclosure requirements for ~~income taxes by removing certain exceptions to the general principles in Topic 740.~~annual reporting periods. The Company ~~adopted~~will be required to adopt this update ~~effective February 1, 2021.~~for the fiscal year ending January 31, 2023. The ~~adoption of this update did not impact~~Company will provide necessary disclosures required related to government assistance received in the ~~consolidated financial statements.~~annual reporting for the year ending January 31, 2023.

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 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, and does not intend to, enter ~~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):

~~See Note 14 for disaggregation~~¹Refined coal sales were recorded net of ~~net sales and revenue by operating segment and by product.~~the cost of coal as the Company purchased the coal feedstock from the customer to which the processed refined coal was sold.

At ~~July 31, 2021,~~April 30, 2022, the Company has lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The exercise of any lease renewal is at the Company’s sole discretion. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any

periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream. The components of lease expense, classified as SG&A expenses on the Consolidated Condensed Statement of Operations are as ~~follows:~~follows (amounts in thousands):

The following table is a summary of future minimum rentals on such leases at ~~July 31, 2021~~April 30, 2022 (amounts in thousands):

Years Ended January 31,	Minimum Rentals		Minimum Rentals

Remainder of 2022	$	3,015
2023		4,836
Remainder of 2023				$	3,839
2024		3,670			4,636
2025		2,221			3,188
2026		49			1,015
2027					951
Thereafter					510
Total		13,791			14,139
Less: present value discount		877			1,085
Operating lease liabilities	$	12,914		$	13,054

At ~~July 31, 2021,~~April 30, 2022, the weighted average remaining lease term is ~~2.7~~2.9 years, and the weighted average discount rate is ~~4.88%~~5.05% for the above leases.

The following table is a summary of future minimum rentals on such leases at January 31, ~~2021~~2022 (amounts in thousands):

At January 31, ~~2021,~~2022, the weighted average remaining lease term was ~~3.0~~2.5 years, and the weighted average discount rate was ~~5.26%~~4.85% for the above leases.

The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), which provides a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate.

To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at ~~July 31, 2021~~April 30, 2022 are summarized below (amounts in thousands):

Financial assets and liabilities measured at fair value on a recurring basis at January 31, ~~2021~~2022 are summarized below (amounts in thousands):

	Level 1		Level 2		Level 3		Fair Value		Level 1			Level 2			Level 3			Fair Value

Investment in cooperative (1)	$	-	$	-	$	354	$	354		$	-		$	-		$	354		$	354
Forward purchase contracts asset (2)		-		2,144		-		2,144
Forward purchase contracts (2)											-			993			-			993
Total assets	$	-	$	2,144	$	354	$	2,498		$	-		$	993		$	354		$	1,347

Commodity futures liability (3)	$	-	$	1,794	$	-	$	1,794		$	-		$	933		$	-		$	933

(1) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

(3) The commodity futures liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets.

The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment.

There were no assets measured at fair value on a non-recurring basis at ~~July 31, 2021~~April 30, 2022 or January 31, ~~2021.~~2022.

The components of property and equipment are as follows for the periods presented (amounts in thousands):

	July 31, 2021		January 31, 2021		April 30, 2022			January 31, 2022

Land and improvements	$	27,437	$	27,437		$	27,329		$	27,329
Buildings and improvements		23,701		23,701			23,617			23,617
Machinery, equipment and fixtures		306,514		305,640			297,210			296,243
Construction in progress		1,173		215			1,973			1,515
		358,825		356,993			350,129			348,704
Less: accumulated depreciation		(213,747)		(203,807)
Less: Accumulated depreciation							(215,554)			(211,150)
Total	$	145,078	$	153,186		$	134,575		$	137,554

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

	July 31, 2021		January 31, 2021		April 30, 2022			January 31, 2022

Accrued payroll and related items	$	1,882	$	690		$	2,770		$	5,407
Accrued utility charges		2,708		2,515			4,242			4,297
Accrued transportation related items		204		1,560			973			593
Accrued real estate taxes		1,220		1,778			2,031			1,857
Commodity futures		4,590		1,794			4,066			933
Accrued income taxes		51		55			108			95
Other		619		563			994			435
Total	$	11,274	$	8,955		$	15,184		$	13,617

The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn and natural gas) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands):

	Asset Derivatives Fair Value				Liability Derivatives Fair Value				Asset Derivatives Fair Value				Liability Derivatives Fair Value
	July 31, 2021		January 31, 2021		July 31, 2021		January 31, 2021		April 30, 2022		January 31, 2022		April 30, 2022		January 31, 2022

Commodity futures (1)	$	784	$	-	$	4,590	$	1,794	$	-	$	-	$	4,066	$	933
Forward purchase contracts (2)		673		2,144		-		-		4,432		993		-		-
Total	$	1,457	$	2,144	$	4,590	$	1,794	$	4,432	$	993	$	4,066	$	933

(1) Commodity futures liabilities are included in accrued expenses and other current liabilities. These contracts ~~are~~include short/sell positions for approximately ~~8.6~~11.8 million bushels and 7.4 million bushels of corn at ~~July 31, 2021. These contracts are short/sell positions for approximately 6.9 million bushels of corn at~~April 30, 2022 and January 31, ~~2021.~~2022, respectively. Commodity futures assets, ~~are~~had there been any at either April 30, 2022 or January 31, 2022, would be included in ~~prepaid~~“Prepaid expenses and other ~~assets. These contracts are~~

~~long/buy positions for approximately 5.8 million bushels of corn at July 31, 2021. There were 0 long/buy positions at January 31, 2021.~~current assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) Forward purchase contracts assets are included in prepaid expenses and other current assets. These contracts are for purchases of approximately ~~10.6~~20.3 million bushels and 19.2 million bushels of corn at ~~July 31, 2021~~April 30, 2022 and ~~6.4 million bushels of corn at~~ January 31, ~~2021.~~2022, respectively. Forward contract liabilities, had there been any at either April 30, 2022 or January 31, 2022, would be included in “Accrued expenses and other current liabilities” on the accompanying Consolidate Condensed Balance Sheets.

As of ~~July 31, 2021,~~April 30, 2022, and January 31, ~~2021,~~2022, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements with the counterparty. The Company’s accounting policy is to offset positions and amounts owed or owing with the same counterparty. As of ~~July 31, 2021,~~April 30, 2022, and January 31, ~~2021,~~2022, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. The Company was required to maintain collateral in the amount of approximately ~~$6,758,000~~$4,920,000 and approximately ~~$1,657,000~~$2,222,000 to secure the Company’s

derivative liability position at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021, respectively.~~2022, respectively, which is recorded as “Restricted cash” on the accompanying Consolidated Condensed Balance Sheets.

See Note 5 which contains fair value information related to derivative financial instruments.

The Company recognized ~~losses (included~~gains (losses), which are included in ~~net~~“Net sales and ~~revenue)~~revenue” in the accompanying Consolidated Condensed Statement of Operations, on derivative financial instruments of approximately ~~$1,638,000~~$322,000 and ~~$298,000~~$(1,126,000) for the ~~second~~first quarter of fiscal years ~~2021~~2022 and 2020, respectively. The Company recognized losses (included in net sales and revenue) on derivative financial instruments of approximately $2,764,000 and $298,000 for the first six months of fiscal years 2021, ~~and 2020,~~ respectively.

The Company recognized losses, ~~(included~~which are included in ~~cost~~“ Cost of ~~sales)~~sales” in the accompanying Consolidated Condensed Statement of Operations, on derivative financial instruments of approximately ~~$6,142,000~~$11,776,000 and approximately ~~$4,613,000~~$1,894,000 for the ~~second~~first quarter of fiscal years ~~2021~~2022 and 2020, respectively. The Company recognized losses (included in cost of sales) on derivative financial instruments of approximately $8,036,000 and approximately $1,758,000 for the first six months of fiscal years 2021, ~~and 2020,~~ respectively.

The following table summarizes the Company’s equity method investment at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021~~2022 (dollars in thousands):

		Carrying Amount						Carrying Amount
Entity	Ownership Percentage	July 31, 2021		January 31, 2021		Ownership Percentage		April 30, 2022		January 31, 2022

Big River	10.3%	$	31,870	$	29,456		10.3%		$32,517		$30,566

Undistributed earnings of the Company’s equity method investee totaled approximately ~~$11.8~~$12.5 million and approximately ~~$9.4~~$10.5 million at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021,~~2022, respectively. The Company did not receive any dividends from its equity method investee in the first ~~six months~~quarter of fiscal year ~~2021~~2022 and ~~received dividends of approximately $2.0 million in the first six months of fiscal year 2020.~~2021.

Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):

At ~~July~~April 30, 2022, the Company owned certificates of deposit and United States Treasury Bills that had an amortized cost, or carrying value, of approximately $167.3 million. The contractual maturity of

these investments was less than one year. The yield to maturity rate was approximately 0.7%. Unrealized gains or losses were insignificant.

At January 31, ~~2021,~~2022, the Company owned certificates of deposit that had an amortized cost, or carrying value, of approximately ~~$33,282,000.~~$25,877,000. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 0.1%. Unrealized gains or losses were insignificant.

At January 31, 2021, the Company owned certificates of deposit that had an amortized cost, or carrying value, of approximately $36,194,000. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 0.2%. Unrealized gains or losses were insignificant.

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 550,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. Since plan inception, the Company has only granted restricted stock awards. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records noncash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At ~~July 31, 2021,~~April 30, 2022, 471,027 shares remain available for issuance under the Plan. As a component of their compensation, restricted stock has been granted to directors at the closing market price of REX common stock on the grant date. In addition, one third of executives’ incentive compensation is payable by an award of restricted stock based on the then closing market price of REX common stock on the grant date. The Company’s board of directors has determined that the grant date will be June 15^th, or the next business day if June 15^th is not a business day, for all grants of restricted stock.

At ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021,~~2022, unrecognized compensation cost related to nonvested restricted stock was approximately ~~$155,000~~$190,000 and ~~$272,000,~~$97,000 respectively. The following tables summarize non-vested restricted stock award activity for the periods presented:

	Six Months Ended July 31, 2021						Three Months Ended April 30, 2022

	Non-Vested Shares		Weighted Average Grant Date Fair Value (000’s)		Weighted Average Remaining Vesting Term (in years)		Non-Vested Shares		Weighted Average Grant Date Fair Value (000’s)		Weighted Average Remaining Vesting Term (in years)

Non-Vested at January 31, 2021		19,705	$	1,398		1
Non-Vested at January 31, 2022								10,061	$	773		1
Granted		2,803		275				-		-
Forfeited		-		-				-		-
Vested		12,447		900				-		-

Non-Vested at July 31, 2021		10,061	$	773		2

	Six Months Ended July 31, 2020

	Non-Vested Shares		Weighted Average Grant Date Fair Value (000’s)		Weighted Average Remaining Vesting Term (in years)

Non-Vested at January 31, 2020		28,576	$	2,193		2
Granted		6,158		416
Forfeited		-		-
Vested		15,029		1,211

Non-Vested at July 31, 2020		19,705	$	1,398		2
Non-Vested at April 30, 2022								10,061	$	773		1

The above tables include 5,714 and 14,777 non-vested shares at ~~July 31,~~April 30, 2022 and 2021, ~~and 2020,~~ respectively, which are included in the number of weighted average shares outstanding used to determine basic and diluted earnings per share attributable to REX common shareholders. Such shares are treated, for accounting purposes, as being fully vested at the grant date as they were granted to recipients who were retirement eligible at the time of grant.

The Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate. Thus, the Company used a discrete effective tax rate method to calculate the provision or benefit for income taxes for the three and six months ended July 31, 2021 and 2020.

~~The~~ Company’s income tax ~~benefit~~provision from continuing operations was approximately ~~$3.7~~$1.8 million and approximately ~~$4.0~~$2.2 million for the three months ended ~~July 31,~~April 30, 2022 and 2021, respectively.

The Company did not have any activity classified as discontinued operations in the current fiscal year and ~~2020, respectively.~~therefore, did not have an income tax provision or benefit. The Company’s income tax benefit from discontinued operations was approximately ~~$3.6 million and approximately $9.4~~$2.2 million for the ~~six~~three months ended ~~July 31, 2021 and 2020, respectively. We had a higher benefit in the prior year periods based upon pre-tax losses for those periods versus pre-tax income in the current periods.~~April 30, 2021. The benefit is ~~also largely impacted by~~derived from the level of tax credits generated from the refined coal ~~operation.~~business and the tax benefit of the loss from operations. Through its refined coal ~~operation,~~business, the Company ~~earns~~earned production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years. In addition, the Company’s income tax benefit for the first six months of fiscal year 2020 includes approximately $1.8 million related to the lengthening of a net operating loss carryback allowed by the CARES Act.

The Company assessed all available positive and negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization of existing federal deferred tax assets. For the three year period ended July 31, 2021, the Company has a cumulative pre-tax book loss on a comprehensive basis, including the impact of an operation that has historically produced pre-tax book losses, but after tax net income. The Company ~~expects that this entity will cease operations by~~ceased operation of its refined coal business on November 18, 2021. There is sufficient objectively verifiable income for management to conclude that it is more likely than not that the Company will utilize available federal deferred tax assets prior to their expiration.

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income tax examination for the years ended January 31, 2015 through January 31, 2020.

On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a material effect on results of operations or financial position. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

	Six Months Ended July 31,				Three Months Ended April 30,
	2021		2020		2022		2021

Unrecognized tax benefits, beginning of period	$	8,400	$	7,370	$	16,781	$	8,400
Changes for prior years’ tax positions		10		(53)		88		5
Changes for current year tax positions		275		-		-		138
Unrecognized tax benefits, end of period	$	8,685	$	7,317	$	16,869	$	8,543

On November 18, 2021, the Company ceased operation of its refined coal business as tax credits could no longer be earned on its operation. Beginning in the third quarter of fiscal year 2021, the results of the operation of the refined coal business have been recognized as discontinued operations. Below is a table reflecting certain items of the Consolidated Condensed Statement of Operations that were reclassified as discontinued operations for the periods indicated (amounts in thousands):

¹Refined coal sales were recorded net of the cost of coal as the Company purchased the coal feedstock from the customer to which the processed refined coal was sold.

The Company may be involved in various legal actions arising in the normal course of business, from time to time. After taking into consideration legal counsels’ evaluations of any such action(s),

management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Condensed Financial Statements.

One Earth and NuGen have combined forward purchase contracts for approximately ~~10.6~~20.3 million bushels of corn, the principal raw material for their ethanol plants, and they have combined forward purchase contracts for approximately ~~639,000~~732,000 MmBtu (million ~~british~~British thermal ~~units)~~unit) of natural gas.

One Earth and NuGen have combined sales commitments for approximately ~~31.7~~15.8 million gallons of ethanol, approximately ~~46,000~~86,000 tons of distillers grains and approximately ~~9.6~~14.5 million pounds of non-food grade corn oil.

The refined coal entity ~~has~~had various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the Company iswas required to pay various fees. As production ceased in November 2021, there were no fees paid in fiscal year 2022. These fees totaled approximately ~~$2.2 million and approximately $1.1~~$0.9 million in the ~~second~~first quarter of fiscal ~~years 2021 and 2020, respectively. Such fees totaled approximately $3.1 million and approximately $1.4 million for the six months ended July 31, 2021 and 2020, respectively.~~year 2021.

During the ~~second quarters~~first quarter of fiscal years ~~2021~~2022 and ~~2020,~~2021, One Earth and NuGen purchased approximately ~~$20.7~~$30.7 million and approximately ~~$4.9~~$16.7 million, respectively, of corn (and other supplies) from minority equity investors and board members of those subsidiaries. ~~Such purchases totaled approximately $37.4 million and approximately $17.2 million for the six months ended July 31, 2021 and 2020, respectively.~~ The Company had amounts payable to related parties of approximately ~~$2.5 million and approximately $0.7~~$0.5 million at ~~July 31, 2021~~April 30, 2022 and January 31, ~~2021, respectively.~~2022.

During ~~each of~~ the ~~second quarters~~first quarter of fiscal ~~years~~year 2021, ~~and 2020,~~ the Company recognized commission expense of approximately ~~$0.2 million,~~$36,000, payable to the minority investor in the refined coal entity. ~~During the first six months of fiscal years 2021 and 2020, the company recognized commission expense of approximately $0.2 million and income of approximately $0.1 million, respectively.~~ The commission expense is associated with the refined coal ~~segment.~~business which is classified within discontinued operations.

On May 23, 2022, the Company’s consolidated plants received $7.8 million as part of a COVID relief bill passed by Congress in December 2020. The ~~Company had accrued liabilities~~bill specifically included biofuels producers as eligible for aid, and ~~accounts payable related~~in June of 2021, USDA announced a $700.0 million Biofuel Producer Program to distribute these funds to impacted producers of ethanol, biodiesel and other renewable fuels. Applications were due in February 2022. The USDA communicated its approval and the ~~commission expense of approximately $0.1 million at July 31, 2021 and January 31, 2021.~~amount awarded subsequent to April 30, 2022.

The Company has 2 reportable segments: i) ethanol and by-products; and ii) refined coal. The Company evaluates the performance of each reportable segment based on net income attributable to REX common shareholders. Segment profitability measures are determined using the same accounting policies used in the preparations of the consolidated condensed financial statements. The following tables summarize segment and other results and assets (amounts in thousands):

¹~~The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.~~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

At ~~July 31, 2021, investments in our ethanol business include equity~~April 30, 2022, we had investments in three ethanol limited liability companies, in two of which we have a majority ownership ~~interest in.~~interest. The following table is a summary of ethanol ~~gallons shipped~~entity ownership interests at ~~our plants:~~April 30, 2022:

Our ethanol operations and the results thereof are highly dependent on commodity prices, especially prices for corn, ethanol, distillers grains, non-food grade corn oil and natural gas, and availability of corn. As a result of price volatility for these commodities, our operating results can fluctuate substantially. The price and availability of corn is subject to significant fluctuations depending upon several factors that affect commodity prices in general, including crop conditions, the amount of corn stored on farms, weather, federal policy and foreign trade. Because the market prices of ethanol and distillers grains are not always directly related to corn prices (for example, demand for crude and other energy and related prices, the export market demand for ethanol and distillers grains, soybean meal prices, and the results of federal policy decisions and trade negotiations can impact ethanol and distillers grains prices), at times ethanol and distillers grains prices may not follow movements in corn prices and, in an environment of higher corn prices or lower ethanol or distillers grains prices, reduce the overall margin structure at the plants. As a result, at times, we may operate our plants at negative or minimally positive operating margins.

We expect our ethanol plants to produce ~~approximately~~at least 2.8 gallons of denatured ethanol for each bushel of grain processed in the production cycle. We refer to the actual gallons of denatured ethanol produced per bushel of grain processed as the realized yield. We refer to the difference between the price per gallon of ethanol and the price per bushel of grain (divided by the realized yield) as the “crush spread”. Should the crush spread decline, it is possible that our ethanol plants will generate operating results that do not provide adequate cash flows for sustained periods of time. In such cases, production at the ethanol plants may be reduced or stopped altogether in order to minimize variable costs at individual plants.

We attempt to manage the risk related to the volatility of commodity prices by utilizing forward grain purchase, forward ethanol, distillers grains and corn oil sale contracts and commodity futures

agreements, as management deems appropriate. We attempt to match quantities of these sale contracts with an appropriate quantity of grain purchase contracts over a given period of time when we can obtain an adequate gross margin resulting from the crush spread inherent in the contracts we have executed. However, the market for future ethanol sales contracts generally lags the spot market with respect to ethanol price. Consequently, we generally execute fixed price ethanol contracts for no more than four

months into the future at any given time and we may lock in our corn or ethanol price without having a corresponding locked in ethanol or corn price for short durations of time. As a result of the relatively short period of time our fixed price contracts cover, we generally cannot predict the future movements in our realized crush spread for more than four months; thus, we are unable to predict the likelihood or amounts of future income or loss from the operations of our ethanol facilities. We utilize derivative financial instruments, primarily exchange traded commodity future contracts and swap contracts, in conjunction with certain of our grain procurement activities and commodity marketing activities.

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, for approximately $12.0 million, the entire ownership interest of an entity that ~~owns~~owned a refined coal ~~facility, along with a minority partner, for approximately $12.0 million. We own 95.35% of the entity.~~facility. We began operating the refined coal facility immediately after the acquisition. ~~We expect that~~As the ~~revenues from the sale of refined coal produced in the facility will be subsidized by~~plant was no longer eligible to receive federal production tax credits ~~through~~beginning on November 18, 2021, ~~subject to meeting qualified emissions reductions~~we ceased operations on that date. We began classifying this operation as governed by Section 45 of the Internal Revenue Code. In order to maintain compliance with Section 45 of the Internal Revenue Code, we are required to test the effectiveness of our process with respect to emissions reductions every six months through an independent laboratory. Annually, the IRS publishes the amount of federal income tax credit earned per ton of refined coal produced and sold. We expect to earn credits at the rate of approximately $7.38 per ton of refined coal produced and sold during calendar year 2021. The tax credits can be earned for refined coal produced and sold by our facility through November 18, 2021. Absent the tax credits, our refined coaldiscontinued operations would not be profitable and we expect to cease operations at that time. At the conclusion of the operations we are obligated to remove the equipment from the site but do not expect the cost to be significant.

The refined coal facility is located at the site of a utility-owned electrical generating power station, which is our refined coal operation’s sole customer. Refined coal production and sales vary depending on fluctuations in demand from the site host utility, which generally changes based upon weather conditions in the ~~geographic markets, competing energy prices, lack~~third quarter of supplies and the state of the local economy. We have contracted with an experienced third party to operate and maintain the refined coal facility and to provide us with management reporting and operating data as required. We do not have any employees on site at the refined coal facility.fiscal 2021.

During fiscal year 2013, we entered into a joint venture ~~with Hytken HPGP, LLC (“Hytken”)~~ to file and defend patents for eSteam ~~technology relating to heavy oil and oil sands production methods, and to commercially exploit the technology to generate license fees, royalty income and development opportunities.~~technology. The patented technology is an enhanced method of heavy oil recovery involving zero emissions downhole steam generation. To date, we have not successfully had a field operation nor demonstrated that the technology is commercially feasible. We own 60% and ~~Hytken~~our partner owns 40% of the entity named Future Energy, LLC, ~~(“Future Energy”).~~

an Ohio limited liability company. We have ~~agreed~~no current plans to ~~fund direct patent expenses relating to patent applications~~operate this technology and defense, annual annuity fees and maintenance on a country by country basis, with the right to terminate funding and transfer related patent rights to Hytken. We have funded all costs relating to new intellectual property, consultants, research and development, pilot field tests and equipment purchases with respect to the proposed commercialization stage of the technology. To date, we have paid and expensed approximately $2.5 million cumulatively to purchase our ownership interest and fund patent and other expenses. We have not yet tested or proven the commercial feasibility of the technology.are maintaining patents in limited countries.

During the three months ended ~~July 31, 2021,~~April 30, 2022, we did not change any of our critical accounting policies as disclosed in our ~~2020~~2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on April ~~12, 2021.~~6, 2022.

All references in this report to a particular fiscal year are to REX’s fiscal year ended January 31. For example, “fiscal year ~~2021”~~2022” means the period February 1, ~~2021~~2022 to January 31, ~~2022.~~2023.

In recent years, operating results in our ethanol and by-products segment have been, at times affected by a weak margin environment including such factors as higher costs for corn, including increased basis over index pricing, lower availability of local corn, lower ethanol demand and the EPA granting small refiner waivers.

During the early months of 2020, COVID-19 spread into the United States and other countries. In an effort to contain the spread of this virus, there were various government mandated restrictions, in addition to voluntary privately implemented restrictions, including limiting public gatherings, retail store closures, restrictions on employees working and the quarantining of people who may have been exposed to the virus. This led to reduced demand for gasoline and ethanol, which consequently resulted in historically low ethanol pricing. As a result, we idled our NuGen and One Earth ethanol plants in March of 2020. In May of 2020, businesses and other activities slowly began to reopen, which led to an increase in demand for gasoline and ethanol, and in related prices. As a result, we resumed production operations at the One Earth ethanol plant in late May of 2020 and at NuGen in late June of 2020. In addition, actions by the Federal Reserve related to the COVID-19 outbreak, reduced interest rates. Given the amount of cash and short-term investments we have, this has reduced our interest income and could continue in future periods, depending on the length of time interest rates remain at these levels. The impacts of the COVID-19 outbreak on our business operations, including the recent Delta variant, cannot be reasonably estimated at this time, although a prolonged production stoppage at our plants could have a material adverse impact on our results of operations, financial condition and cash flows in future periods.

Congress passed the CARES Act in March 2020, which provided the United States department of Agriculture (“USDA”) with additional funding from the “Commodity Credit Corporation. The USDA is using this additional funding to provide direct payments to farmers, including farmers that we purchase corn from. Such direct payments to farmers could cause further delays in marketing decisions. Consequently, this could reduce the supply of available corn and could result in a price increase. In addition, China has been purchasing large quantities of corn, which has led to higher prices for corn. We have experienced an increase in the local basis price paid over Chicago Board of Trade for corn during the first six months of fiscal year 2021.

Renewable Fuel Standard II (“RFS 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 on the enforcement of RFS II. When it was originally established, ~~by Congress,~~ 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 ~~was to~~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. ~~On December 19, 2019,~~In addition, under RFS II, a small refiner that processes less than 75,000 barrels of oil per day can petition the EPA ~~announced the final 2020~~for a waiver of their requirement to submit renewable ~~volume obligation for conventional ethanol, which met the 15.0 billion gallons congressional target.~~identification numbers (“RINs”). The EPA, ~~has missed its deadline~~through consultation with the Department of Energy and ~~has not yet released~~the Department of Agriculture, can grant the refiner a ~~draft~~full or partial waiver, or deny the waiver. The EPA issued 85 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable ~~volume obligation rule for the 2021 volumes. On April 15, 2020, five state Governors sent~~fuel volumes by a ~~letter to the EPA requesting a general waiver~~total of the RFS II requirements due to the drop in demand caused by COVID-19 travel restrictions. On October 21, 2020, 15 U.S. Senators sent a letter to the EPA requesting a general waiver of the RFS II requirements to reduce the 2021 renewable volume obligation, citing the reduced demand for fuels due to COVID-19.4.0 billion gallons.

On ~~June 25,~~December 7, 2021, the ~~Supreme Court of~~EPA issued proposed volumes for 2021 and 2022 and reduced the ~~United States ruled~~previously finalized volumes for 2020 to account for challenges for that year including the COVID-19 pandemic. The proposed volumes for conventional biofuels were 13.32 billion gallons and 15.0 billion gallons for 2021 and 2022, respectively. The 2020 volumes were proposed at 12.5 billion gallons, down from the previously finalized 15.0 billion gallons. In addition, the EPA proposed denying 65 pending applications for Small Refinery Exemptions in ~~favor of small refiners and reversed a portion of~~response to the 2020 decision by the U.S. Court of Appeals for the 10th ~~Circuit on small refiner waivers (SRWs). It only reversed~~Circuit. The EPA also proposed adding 250 million gallons of “supplemental obligation” to the ~~interpretation of “extension” of a waiver but not~~2022 proposed volumes and stated its intent to add another 250 million gallons to 2023 to address the ~~economic hardship portion~~remand of the ~~decision. It remains unclear how~~2016 waiver by the ~~Supreme Court decision may impact the EPA’s handling of SRWs.~~D.C Circuit. The EPA implemented a public notice and comment process on this announcement.

~~Throughout fiscal year 2020~~Due to the Russian-Ukraine conflict, there is a concern that the corn and natural gas supplies worldwide will be adversely affected, with a potential impact on price and corn availability in the first six months of fiscal year 2021, operating results in our refined coal segment were affected by inconsistent utility plant demand (our only customer). By November 18, 2021, we expect to cease these operations and the resulting earning of production tax credits, as based upon current legislation this facility will no longer be eligible to earn additional tax credits beyond that date.United States.

Should these trends and uncertainties continue, our future operating results are likely to be negatively impacted.

Comparison of Three ~~and Six~~ Months Ended ~~July 31,~~April 30, 2022 and 2021 ~~and 2020~~

The following ~~sections discuss the~~table summarizes our results offrom operations for each of our business segments and corporate and other. Amounts in the corporate and other category include activities that are not separately reportable or related to a segment. We have two reportable segments: i) ethanol and by-products; and ii) refined coal. We evaluate the performance of each reportable segment using net income attributable to REX common shareholders. Segment profitability measures are determined using the same accounting policies used in the preparation of the consolidated financial statements. The following tables summarizes segment and other results (amounts in thousands):

¹~~The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.~~

The following table summarizes net sales and revenue ~~from the ethanol and by-products segment~~by product group (amounts in thousands):

									Three Months Ended
									April 30,
	Three Months Ended July 31,				Six Months Ended July 31,				2022		2021
	2021		2020		2021		2020
Ethanol	$	153,990	$	32,524	$	280,059	$	93,121	$	146,462	$	126,069
Dried distillers grains		31,573		5,480		62,691		24,398		31,897		31,119
Non-food grade corn oil		9,813		1,313		15,407		4,501		11,102		5,594
Modified distillers grains		1,934		209		4,227		666		4,355		2,293
Derivative financial instruments losses		(1,638)		(298)		(2,764)		(298)
Derivative financial instruments gains (losses)										322		(1,126)
Other		6		14		100		89		90		93
Total	$	195,678	$	39,242	$	359,720	$	122,477
Total, continuing operations									$	194,228	$	164,042

Refined coal (discontinued operations)¹									$	-	$	62

¹Refined coal sales were recorded net of the cost of coal as the Company purchased the coal feedstock from the customer to which the processed refined coal was sold.

The following table summarizes selected ~~data from the ethanol and by-products segment:~~operating data:

									Three Months Ended
									April 30,
	Three Months Ended July 31,				Six Months Ended July 31,				2022		2021
	2021		2020		2021		2020
Average selling price per gallon of ethanol (net of hedging)	$	2.21	$	1.23	$	2.02	$	1.25	$	2.28	$	1.79
Gallons of ethanol sold (in millions)		69.0		26.5		139.0		74.8		64.5		70.0
Average selling price per ton of dried distillers grains	$	206.78	$	135.54	$	207.84	$	143.24	$	218.90	$	208.92
Tons of dried distillers grains sold		152,689		40,429		301,640		170,324		145,714		148,951
Average selling price per pound of non-food grade corn oil	$	0.47	$	0.24	$	0.41	$	0.25	$	0.63	$	0.33
Pounds of non-food grade corn oil sold (in millions)		20.7		5.4		37.8		18.1		17.7		17.1
Average selling price per ton of modified distillers grains	$	90.54	$	31.87	$	79.13	$	49.32	$	118.09	$	71.54
Tons of modified distillers grains sold		21,361		6,566		53,421		13,507		36,879		32,060
Average cost per bushel of grain	$	6.45	$	3.63	$	5.86	$	3.86	$	6.55	$	5.16
Average cost of natural gas (per MmBtu)	$	3.30	$	2.92	$	3.24	$	3.60	$	5.93	$	3.18

Net sales and revenue in the quarter ended ~~July 31, 2021~~April 30, 2022 increased approximately ~~398%~~18% compared to the prior year’s ~~second~~first quarter. ~~Net sales and revenue~~A decrease in quantity sold at our consolidated plants during the first quarter of fiscal year 2022 was more than offset by stronger commodity pricing in the first ~~six months~~quarter of fiscal year 2021 increased approximately 194%. We had significantly lower production and sales volumes in our ethanol and by-products segment during the first six months of fiscal year 2020, as diminished local availability of corn at the NuGen facility, the effects of the COVID-19 outbreak and lower ethanol pricing resulted in the idling of the NuGen and One Earth ethanol plants in March of 2020. We resumed production operations at One Earth in late May of 2020 and at NuGen in late June of 2020. Both of our consolidated plants produced at or near capacity during the first six months of fiscal year 2021.2022.

Ethanol sales increased in the ~~second~~first quarter of fiscal year 2022 compared to the first quarter of fiscal year 2021 ~~compared to the second quarter of fiscal year 2020~~ as the ~~number of gallons sold increased 160% and the~~ average ~~selling~~ price per gallon ~~increased 80% over the prior year second quarter. Ethanol sales increased in the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020 as the number of gallons~~ sold increased ~~86% and the average selling price per gallon increased 62% over the prior fiscal year.~~27%, offset slightly by an 8% decrease in gallons sold. The increase in the ethanol selling price resulted primarily from ~~an increase in demand and~~ an increase in commodity prices.

Dried distillers grains sales increased in the ~~second~~first quarter of fiscal year 2022 compared to the first quarter of fiscal year 2021 ~~compared to the second quarter of fiscal year 2020~~ as the ~~number of tons sold increased 278% and the~~ average ~~selling~~ price per ton increased 53% over the prior year second quarter. Dried distillers grains sales increased in the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020 as the number of tons sold increased ~~77% and the average selling price per ton increased 45% over the prior fiscal year.~~5%, offset slightly by a 2% decrease in tons sold. The increase in the dried distillers grains selling price resulted primarily from ~~increased demand and~~ an increase in corn prices as dried distillers grains prices often correlate with corn pricing.

Non-food grade corn oil sales increased in the ~~second~~first quarter of fiscal year ~~2021~~2022 compared to the ~~second~~first quarter of fiscal year ~~2020~~2021 as the number of pounds sold increased ~~283%~~4% and the average selling price per pound increased ~~96%~~91% over the prior year ~~second~~first quarter. Non-food grade corn oil sales increased in the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020 as the number of pounds sold increased 109% and the average selling price per pound increased 64% over the prior year fiscal year. The increase in the non-food grade corn oil selling price resulted primarily from an increase in demand from the biodiesel industry.

Modified distillers grains sales increased in the ~~second~~first quarter of fiscal year ~~2021~~2022 compared to the ~~second~~first quarter of fiscal year ~~2020~~2021 as the number of tons sold increased ~~225%~~15% and the average selling price per ton increased ~~184%~~65% over the prior year ~~second~~first quarter. Modified distillers grains sales increased in the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020 as the number of tons sold increased 296% and the average selling price per ton increased 60% over the prior year fiscal year. The increase in the modified distillers grains selling price resulted primarily from an increase in corn prices and increased local demand.

~~Losses~~Gains on derivative financial instruments, included in net sales and revenue, of approximately ~~$1.6~~$0.3 million in the ~~second~~first quarter of fiscal year ~~2021~~2022 related to our risk management activities and were impacted by the increase in ~~ethanol~~corn prices during that quarter. There were losses on derivative financial instruments of approximately ~~$0.3~~$1.1 million during the ~~second~~first quarter of fiscal year 2020. Losses on derivative financial instruments, included in net sales and revenue, were approximately $2.8 million in the first six months of fiscal year 2021 compared to $0.3 million in the first six months of fiscal year 2020.2021.

Gross profit for the ~~second~~first quarter of fiscal year ~~2021 increased~~2022 decreased approximately ~~$12.4~~$7.6 million compared to the prior year’s ~~second~~first quarter. This was primarily caused by significantly ~~higher production and sales volumes in our ethanol and by-products segment~~increased corn prices during the ~~second~~first quarter of fiscal year ~~2021 compared~~2022, as well as more ethanol contracts sold net of freight according to contract terms in the ~~reduced levels during the second~~first quarter of fiscal year ~~2020 discussed above. The crush spread for the second quarter of~~2022 compared to fiscal year 2021, ~~was approximately break-even per gallon of ethanol sold compared to $(0.04) per gallon of ethanol sold during the second quarter of~~which reduced revenue in fiscal year ~~2020.~~2022. The selling price per gallon of ethanol sold increased ~~80%~~27% for the ~~second~~first quarter of fiscal year ~~2021~~2022 compared to the ~~second~~first quarter of fiscal year ~~2020, slightly outpacing the 78%~~2021. There was a 27% increase in the cost per bushel of corn during the same periods. In addition, higher sales volumes discussed above and prices of by-products contributed to the increase in gross profit during the second quarter of fiscal year 2021 compared to the second quarter of fiscal year 2020. During the second quarter of fiscal year 2020 the impact from the COVID-19 outbreak and lower gasoline pricing resulted in lower ethanol and corn pricing which severely impacted operations and resulted in the consolidated ethanol plants being idled for a portion of the quarter.

Grain accounted for approximately ~~86%~~84% ($~~156.2~~152.7 million) of our cost of sales during the ~~second~~first quarter of fiscal year ~~2021~~2022 compared to approximately ~~68%~~84% ($~~26.1~~121.8 million) during the ~~second~~first quarter of fiscal year ~~2020.~~2021. Natural gas accounted for approximately 3%6% ($~~6.2~~10.8 million) of our cost of sales during the ~~second~~first quarter of fiscal year ~~2021~~2022 compared to approximately 5%3% ($~~1.9~~3.6 million) during the ~~second~~first quarter of fiscal year ~~2020.~~2021. The grain and natural gas expenditure increases were primarily attributable to the higher costs of both corn and natural gas with stable production levels in the second quarter of fiscal year 2021 compared to the reduced production levels in the second quarter of fiscal year 2020 and the significant rise in corn prices during the second quarter of fiscal year 2021.

Gross profit for the first six months of fiscal year 2021 increased approximately $39.5 million compared to the first six months of the prior year. This was primarily the result of significantly higher production and sales volumes in our ethanol and by-products segment during the first six months of fiscal year 2021 compared to the reduced levels during the first six months of fiscal year 2020 discussed above. The crush spread for the first six months of fiscal year 2021 was approximately $0.02 per gallon of ethanol sold compared to $(0.08) per gallon of ethanol sold during the first six months of fiscal year 2020. The selling price per gallon of ethanol sold increased 62% for the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020, outpacing the 52% increase in the cost per bushel of corn during the same periods. In addition, higher sales volumes discussed above and prices of by-products contributed to the increase in gross profit during the first six months of fiscal year 2021 compared to the first six months of fiscal year 2020. During the first six months of fiscal year 2020 the impact from the COVID-19 outbreak and lower gasoline pricing resulted in lower ethanol and corn pricing which severely impacted operations and resulted in the consolidated ethanol plants being idled for a portion of the year and the large gross loss.

Grain accounted for approximately 85% ($278.2 million) of our cost of sales during the first six months of fiscal year 2021 compared to approximately 73% ($94.8 million) during the first six months of fiscal year 2020. Natural gas accounted for approximately 3% ($9.9 million) of our cost of sales during the first six months of fiscal year 2021 compared to approximately 6% ($7.3 million) during the first six months of fiscal year 2020. The grain increase was primarily attributable to the higher production levels in the first six months of fiscal year 2021 compared to the reduced production levels in the first six months of fiscal year 2020 and the significant rise in corn prices during the first six months of fiscal year 2021. The natural gas unit price decrease was primarily attributable to gains realized on the sales of unused natural gas during the first quarter of fiscal year ~~2021. The sales were a result of unusual and significant increases in the spot price of natural gas during portions of~~2022 compared to the first quarter of fiscal year ~~2021 which resulted in an opportunity for us to sell forward natural gas purchases at a gain.~~2021.

We attempt to match quantities of ethanol, distillers grains and non-food grade corn oil sales contracts with an appropriate quantity of grain purchase contracts over a given time period when we can obtain a satisfactory margin resulting from the crush spread inherent in the contracts we have executed. However, the market for future ethanol sales contracts generally lags the spot market with respect to ethanol price. Consequently, we generally execute fixed price sales contracts for no more than four months into the future at any given time and we may lock in our corn or ethanol price without having a corresponding locked in ethanol or corn price for short durations of time. As a result of the relatively short period of time our contracts cover, we generally cannot predict the future movements in our realized crush spread for more than four months.

SG&A expenses were approximately ~~$6.6~~$5.2 million for the ~~second~~first quarter of fiscal year ~~2021,~~2022, significantly ~~higher~~lower than the approximately $4.4 million of expenses for the second quarter of fiscal year 2020. SG&A expenses were approximately $16.6 million for the first six months of fiscal year 2021, significantly higher than the approximately $9.0$9.9 million of expenses for the first ~~six months~~quarter of fiscal year ~~2020.~~2021. A majority of the ~~increase~~decrease results from higher shipping costs in the first quarter of fiscal year 2021 as more sales contracts ~~in our ethanol and by-products segment~~ provided for shipping to be paid by us incompared to the ~~second~~first quarter of fiscal year ~~2021 compared to~~2022.

During the ~~second~~first quarter of fiscal year ~~2020. In addition, there was an increase in incentive compensation associated with higher profitability in fiscal year 2021.~~

~~During the second quarter of fiscal year 2021,~~2022, we recognized income of approximately ~~$1.8~~$2.0 million compared to ~~a loss~~income of approximately ~~$0.5~~$0.6 million for the ~~second~~first quarter of fiscal year ~~2020,~~2021, from our equity investment in Big River, which is included in our ethanol and by-products segment results. We recognized income of approximately $2.4 million during the first six months of fiscal year 2021 compared to a loss of approximately $1.0 million during the first six months of fiscal year 2020.River. Big River has interests in four ethanol production plants that shipped approximately ~~417~~428 million gallons in the trailing twelve months ended ~~July 31, 2021~~April 30, 2022 and has an effective ownership of ethanol gallons shipped for the same period of approximately ~~361~~371 million gallons. Big River’s operations also include agricultural elevators. 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.

Interest and other income was approximately ~~$39,000~~$174,000 for the ~~second~~first quarter of fiscal year ~~2021~~2022 versus approximately ~~$197,000~~$43,000 for the ~~second~~first quarter of fiscal year ~~2020. Interest and other income was approximately $82,000 for the first six months of fiscal year 2021 versus approximately $866,000 for the first six months of fiscal year 2020.~~2021. Interest income ~~decreased~~increased as yields on our excess cash ~~decreased~~increased in the first ~~six months~~quarter of fiscal year ~~2021~~2022 compared to the first ~~six months~~quarter of fiscal year ~~2020.~~2021.

As a result of the foregoing, income before income taxes was approximately ~~$6.4~~$8.8 million for the ~~second~~first quarter of fiscal year 2022 versus approximately $10.2 million for the first quarter of fiscal year 2021.

Prior to the third quarter of fiscal year 2021, ~~versus a loss of approximately $6.1 million for~~ the second quarter of fiscal year 2020. Income before income taxes was approximately $14.8 million versus a loss of approximately $19.8 million for the first six months of fiscal years 2021 and 2020, respectively.

WeCompany determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate. Thus, the Company used a discrete effective tax rate method to calculate the provision or benefit for income taxes for the three ~~and six~~ months ended ~~July~~April 30, 2021. Beginning on November 18, 2021, we are unable to earn tax credit related to the refined coal business, and as such, have ceased operation of that business. As earning these credits is what had caused the significant changes in the estimated annual effective tax rate from small changes in estimated “ordinary” income and we have now classified the refined coal business as discontinued operations, we have returned to using the annual effective tax rate method to calculate the provision or benefit for income taxes from continuing operations beginning in the three and nine month periods ending October 31, ~~2021 and 2020.~~ 2021. Our income tax ~~benefit~~provision from continuing operations was approximately ~~$3.7~~$1.8 million and approximately ~~$4.0~~$2.2 million for the three months ended ~~July 31,~~April 30, 2022 and 2021, ~~and 2020,~~ respectively ~~and~~.

As a result of the foregoing, net income from continuing operations was approximately ~~$3.6 million and approximately $9.4~~$7.0 million for the ~~six months ended July 31, 2021~~first quarter of fiscal year 2022 compared to approximately $8.0 million for the first quarter of fiscal year 2021.

Income from continuing operations related to noncontrolling interests was approximately $1.8 million for the first quarter of fiscal year 2022 compared to $0.7 million for the first quarter of fiscal year 2021. These amounts represent the other owners’ share of the income or loss of NuGen and 2020, respectively We had a higher benefit in the prior year periods based upon pre-tax losses for those periods versus pre-tax income in the current periods. The benefit is also largely impacted by the level of tax credits generated fromOne Earth. Noncontrolling interests related to the refined coal ~~operation.~~ entity is included in discontinued operations.

As a result of the foregoing, net income attributable to REX common shareholders from continuing operations for the first quarter of fiscal year 2022 was approximately $5.2 million, a decrease of approximately $2.1 million from net income attributable to REX common shareholders from continuing operations of approximately $7.3 million for the first quarter of fiscal year 2021.

The Company ceased operation of its refined coal business as tax credits could no longer be earned on its operation beginning November 18, 2021. Beginning in the third quarter of fiscal year 2021, the results of the operation of the refined coal business have been recognized as discontinued operations. The refined coal business operated at a pre-tax loss but generated tax credits that normally exceeded the operating loss. There was no activity related to discontinued operations in the first quarter of fiscal year 2022. Net income attributable to REX common shareholders from discontinued operations, net of tax, for the first quarter of fiscal year 2021 was approximately $0.5 million.

Through its refined coal operation, the Company ~~earns~~earned production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years. ~~Our~~The income ~~tax benefit for the first six months of fiscal year 2020 includes approximately $1.8 million related to the lengthening of a net operating loss carryback allowed by the CARES Act.~~

As a result of the foregoing, net income was approximately $10.1 million for the second quarter of fiscal year 2021 compared to net loss of approximately $2.0 million for the second quarter of fiscal year 2020. Net income was approximately $18.5 million for the first six months of fiscal year 2021 compared to net loss of approximately $10.5 million for the first six months of fiscal year 2020.

Income related to noncontrolling interests was approximately $2.2 million for the second quarter of fiscal year 2021 compared to a loss of $0.3 million for the second quarter of fiscal years 2020. Income related to noncontrolling interests was approximately $2.8 million for the six months of fiscal year 2021 compared to a loss of approximately $1.1 million for the first six months of fiscal years 2020. These amounts represent the other owners’ share of the income or loss of NuGen, One Earth and the refined coal entity.

~~As a result of the foregoing, net income attributable to REX common shareholders for the second quarter of fiscal year 2021~~tax benefit generated from discontinued operations was ~~approximately $7.9 million, an increase of approximately $9.6 million from net loss attributable to REX common shareholders of approximately $1.7~~$2.2 million for the ~~second quarter of fiscal year 2020. Net income attributable to REX common shareholders for the first six~~three months of fiscal year 2021 was approximately $15.7 million, an increase of approximately $25.0 million from net loss attributable to REX common shareholders of approximately $9.4 million for the first six months of fiscal year 2020.ended April 30, 2021.

Net cash used in operating activities was approximately $17.7 million for the first three months of fiscal year 2022, compared to cash provided by operating activities of approximately $13.6 million for the first three months of fiscal year 2021. For the first three months of fiscal year 2022, cash was provided by net income from continuing operations of approximately $7.0 million, adjusted for non-cash items of approximately $5.2 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 $0.4 million, primarily a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories increased by approximately $14.2 million, primarily a result of the timing of receipt of raw materials and the shipment of finished goods, as well as an increase in commodity prices. An increase in the balance of other assets of approximately $3.6 million primarily relates to changes in the carrying value of forward purchase contracts recorded at fair value. A decrease in the balance of refundable income taxes of approximately $0.6 million primarily relates to amount currently payable on income from the first three months of the fiscal year. A decrease in the balance of accounts payable used cash of approximately $13.2 million, which was primarily a result of the timing of inventory receipts and vendor payments. An increase in the balance of other liabilities provided cash of approximately $0.1 million.

Net cash provided by operating activities was approximately ~~$17.2~~$13.6 million for the first ~~six months~~quarter of fiscal year ~~2021, compared to cash used of approximately $9.0 million for the first six months of fiscal year 2020.~~2021. For the first ~~six months~~quarter of fiscal year 2021, cash was provided by net income from continuing operations of approximately ~~$18.5~~$8.0 million, adjusted for non-cash items of approximately ~~$6.6~~$7.9 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 ~~$9.8~~$7.8 million, primarily a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen in addition to higher ~~sales and pricing.~~sales. Inventories ~~increased~~decreased by approximately ~~$3.9~~$11.2 million, primarily a result of the timing of receipt of raw materials and the shipment of finished ~~goods, as well as an~~goods. An increase ~~in the pricing of raw materials. A decrease~~ in the balance of other assets of approximately ~~$0.3~~$2.2 million primarily relates to ~~changes~~increases in the carrying value of forward purchase contracts recorded at fair ~~value. An increase in~~value as commodity price increased significantly during the ~~balance~~first quarter of ~~refundable income taxes of approximately $0.9 million primarily relates to estimated federal and state income tax payments made during~~ fiscal year 2021. An increase in the balance of accounts payable provided cash of approximately $5.5 million, which was primarily a result of the timing of inventory receipts and vendor payments. An increase in the balance of other liabilities provided cash of approximately $0.9 million, which was primarily a result of operating lease payments.

Net cash used in operating activities was approximately $9.0 million for the first six months of fiscal year 2020. For the first six months of fiscal year 2020, cash was used by a net loss of approximately $10.5 million, adjusted for non-cash items of approximately $9.3 million, which consisted of depreciation, amortization of operating lease right-of-use assets, loss from equity method investments, interest income from short-term investments, the deferred income tax provision and stock based compensation expense. We received dividends from Big River of approximately $2.0 million during the first six months of fiscal year 2020. A decrease in the balance of accounts receivable provided cash of approximately $3.2 million, which was primarily a result of the timing of customer shipments and payments as well as lower commodity prices. Inventories decreased by approximately $5.3 million, which was primarily a result of the timing of receipt of raw materials, shipments of finished goods and lower commodity prices. An increase in the balance of refundable income taxes of approximately $4.6 million primarily relates to a net operating loss we intend to carry back for federal income tax purposes. A decrease in the balance of accounts payable used cash of approximately ~~$10.3~~$0.7 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 ~~$2.9~~$1.3 million, which was primarily a result of ~~payments~~operating lease payments. Discontinued operations used cash of ~~operating leases~~$1.5 million during the first quarter of 2021.

At April 30, 2022, working capital was approximately $304.0 million, compared to approximately $294.7 million at January 31, 2022. The ratio of current assets to current liabilities was 8.8 to 1 at April 30, 2022 and ~~incentive compensation.~~6.8 to 1 at January 31, 2022.

Cash of approximately $142.8 million was used in investing activities for the first three months of fiscal year 2022, compared to approximately $0.9 million used during the first three months of fiscal year

~~At July 31, 2021, working capital was approximately $246.0 million, compared to approximately $228.0 million at January 31,~~ 2021. ~~The ratio of current assets to current liabilities was 7.4 to 1 at July 1, 2021 and 8.4 to 1 at January 31, 2021.~~

~~Cash of approximately $0.3 million was provided by investing activities for~~During the first ~~six~~three months of fiscal year ~~2021, compared to approximately $12.4 million used during the first six months of fiscal year 2020. During the first six months of fiscal year 2021,~~2022, we had capital expenditures of approximately ~~$2.7~~$1.5 million, primarily for improvements at the One Earth and NuGen facilities. We expect capital expenditures to be in the range of approximately ~~$3.0~~$15.0 million to ~~$5.0~~$20.0 million for the remainder of fiscal year ~~2021.~~2022. During the first ~~six~~three months of fiscal year ~~2021,~~2022, we purchased U.S. Treasury bonds short-term of approximately $161.6 million and certificates of deposit ~~(classified as short-term investments)~~ of approximately ~~$49.3 million. During the first six months of fiscal year 2021, certificates of deposit (classified as short-term investments) of approximately $52.2~~$20.3 million matured. The certificates of deposit and U.S Treasury bonds had maturities of less than one ~~year.~~year and we classified as short-term investments. Depending on investment options available, we may elect to retain the funds, or a portion thereof, in cash investments, short-term investments or long-term investments.

Cash of approximately ~~$12.4~~$0.9 million was used in investing activities for the first ~~six~~three months of fiscal year ~~2020.~~2021. During the first ~~six~~three months of fiscal year ~~2020,~~2021, we had capital expenditures of approximately ~~$5.7~~$1.3 million, primarily for improvements at the ~~purchase of land at~~ One Earth ~~Energy.~~and NuGen facilities. During the first ~~six~~three months of fiscal year ~~2020,~~2021, we purchased certificates of deposit (classified as short-term investments) of approximately ~~$45.5~~$25.9 million. During the first ~~six~~three months of fiscal year ~~2020,~~2021, certificates of deposit (classified as short-term investments) of approximately ~~$39.0~~$26.3 million matured.

Cash ~~of approximately $2.5 million was used in~~from financing activities ~~for~~was insignificant in both the first ~~six~~three months of fiscal year 2022 and 2021 ~~compared to approximately $5.7 million for~~from shares repurchased from noncontrolling interests holders. In addition, $68,000 was provided from discontinued operations in the first ~~six~~three months of ~~fiscal year 2020. During~~2021 from capital contributions from the first six months of fiscal year 2021, we used cash of approximately $1.4 million to purchase approximately 17,000 shares of our common stock in open market transactions. We also made payments of approximately $1.3 million to noncontrolling interests holders.

Cash of approximately $5.7 million was used in financing activities for the first six months of fiscal year 2020 as we used cash of approximately $5.6 million to purchase approximately 109,000 shares of our common stock in open market transactions.minority investor.

We are investigating various uses for our excess cash and short-term investments. We have ~~historically had~~ a stock buyback program, and ~~subsequent~~given our current authorization level, can repurchase a total of approximately 449,000 shares at April 30, 2022. We typically repurchase our common stock when our stock price is trading at a price we deem to be a discount to the ~~end~~underlying value of ~~the fiscal 2021 second quarter completed a 500,000 share buyback authorization from the Board of Directors and obtained authorization to repurchase an additional 500,000 shares.~~our net assets. We ~~also~~ plan to seek and evaluate various investment opportunities including ethanol and/or energy related, carbon ~~dioxide~~sequestration related, agricultural or other ventures we believe fit our investment ~~criteria in addition to investing in highly liquid short-term securities.~~criteria.

~~We are~~The Company is working with the University of Illinois ~~to explore~~and is in the ~~development~~exploratory stage of a carbon sequestration project ~~to be located~~ near the One Earth Energy ethanol plant. ~~The University of Illinois has received a United States Department of Energy award through the CarbonSAFE program, and, will evaluate the greenhouse gas storage potential by drilling a~~A test well has been drilled and ~~performing~~three-dimensional seismic ~~surveys. The seismic survey~~testing has been performed. We are working on simulation models to predict the movement of carbon dioxide injection into the subsurface, additional testing and completion of a class VI permit application. A front-end engineering design study has been completed for a carbon dioxide liquification facility for the One Earth Energy plant, and we plan to begin seeking bids once we have completed additional engineering work. At this time we do not know total cost to complete or the ~~data is being sent for processing. Further work and research is needed to determine if this will be a feasible location for carbon sequestration and storage.~~feasibility of the project.

This Form 10-Q contains or may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to

time in the Company’s filings with the Securities and Exchange Commission and include among other things: the effect of pandemics such as COVID-19 on the Company’s business operations, including impacts on supplies, demand, personnel and other factors, the impact of legislative and regulatory changes, the price volatility and availability of corn, distillers grains, ethanol, non-food grade corn oil, gasoline and natural gas, ~~logistical delays, our~~commodity market risk, ethanol ~~and refined coal~~ plants operating efficiently and according to forecasts and projections, logistical interruptions, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy, changes in foreign currency exchange rates and the effects of terrorism or acts of war. The Company does not intend to update publicly any forward-looking statements except as required by law. Other factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, ~~2021~~2022 (File No. 001-09097).

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below.

We manage a portion of our risk with respect to the volatility of commodity prices inherent in the ethanol industry by using forward purchase and sale contracts and exchange traded commodity futures contracts. Our exposure to market risk, which includes the impact of our risk management activities, is based on the estimated effect on pre-tax income starting on ~~July 31, 2021~~April 30, 2022 is as follows, assuming normal operating capacity (amounts in thousands):

Commodity	Estimated Total Volume for 12 Months		Unit of Measure	Decrease in Pre-tax Income From a 10% Adverse Change in Price		Estimated Total Volume for 12 Months		Unit of Measure	Decrease in Pre-tax Income From a 10% Adverse Change in Price

Ethanol		280,000	Gallons	$	62,678		280,000	Gallons		$	68,735
Corn		100,000	Bushels	$	57,302		100,000	Bushels		$	69,667
Distillers Grains		770	Tons	$	12,548		790	Tons		$	16,360
Non-food grade Corn Oil		77,750	Pounds	$	3,905		79,000	Pounds		$	4,566
Natural Gas		7,400	MmBtu	$	800		7,400	MmBtu		$	4,014

Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We are not party to any legal proceedings that we believe would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows.

There have been no material changes to the risk factors discussed in our Annual Report on Form 10-K for the year ended January 31, ~~2021.~~2022.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

☒		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended ~~July 31, 2021~~April 30, 2022
		OR
☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the transition period from _________ to _________

	Delaware	31-1095548
	(State or other jurisdiction of ~~incorporation or organization)~~	(I.R.S. Employer ~~Identification Number)~~
	incorporation or organization)	Identification Number)

	7720 Paragon Road, Dayton, Ohio	45459
	~~7720 Paragon Road, Dayton, Ohio~~ (Address of principal executive offices)	~~45459~~ (Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	REX	New York Stock Exchange

Large accelerated filer ☐		Accelerated filer ☒
Non-accelerated filer ☐ (Do not check if a smaller reporting company)		Smaller reporting company ☐
		Emerging growth company ☐

		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Condensed Balance Sheets	3
	Consolidated Condensed Statements of Operations	4
	Consolidated Condensed Statements of Equity	5
	Consolidated Condensed Statements of Cash Flows	76
	Notes to Consolidated Condensed Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2423

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3733

Item 4.	Controls and Procedures	3733

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	3834

Item 1A.	Risk Factors	3834

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3834

Item 3.	Defaults upon Senior Securities	3834

Item 4.	Mine Safety Disclosures	3834

Item 5.	Other Information	3834

Item 6.	Exhibits	3834

Unaudited

(In Thousands)	April 30,		January 31,
	2022		2022
Assets:
Current assets:
Cash and cash equivalents	$	66,685	$	229,846
Short-term investments		167,347		25,877
Restricted cash		4,920		2,222
Accounts receivable		25,440		25,821
Inventory		56,388		42,225
Refundable income taxes		6,096		6,677
Prepaid expenses and other		16,006		12,499
Total current assets		342,882		345,167
Property and equipment, net		134,575		137,554
Operating lease right-of-use assets		13,250		11,221
Deferred taxes and other assets		24,817		25,853
Equity method investment		32,517		30,566
Total assets	$	548,041	$	550,361

Liabilities and equity: Current liabilities:
Accounts payable, trade (includes $0.5 million with related parties at April 30, 2022 and January 31, 2022)	$	19,160	$	32,266
Current operating lease liabilities		4,515		4,600
Accrued expenses and other current liabilities		15,184		13,617
Total current liabilities		38,859		50,483
Long-term liabilities:
Deferred taxes		3,132		3,132
Long-term operating lease liabilities		8,539		6,390
Other long-term liabilities		2,920		2,794
Total long-term liabilities		14,591		12,316
Equity:
REX shareholders’ equity:
Common stock		299		299
Paid-in capital		149,370		149,334
Retained earnings		647,532		642,350
Treasury stock		(361,183)		(361,191)
Total REX shareholders’ equity		436,018		430,792
Noncontrolling interests		58,573		56,770
Total equity		494,591		487,562
Total liabilities and equity	$	548,041	$	550,361

(In Thousands, Except Per Share Amounts)	Three Months Ended July 31,				Six Months Ended July 31,
	2021		2020		2021		2020

Net sales and revenue	$	195,843	$	39,327	$	359,947	$	122,577
Cost of sales (includes $20,650 and $4,887 with related parties for the quarters ended July 31, 2021 and 2020, respectively, and $37,383 and $17,159 with related parties for the six months ended July 31, 2021 and 2020, respectively)		184,769		40,658		331,071		133,238

Gross profit (loss)		11,074		(1,331)		28,876		(10,661)
Selling, general and administrative expenses (includes $154 and $152 with related parties for the quarters ended July 31, 2021 and 2020, respectively, and $191 and $(145) with related parties for the six months ended July 31, 2021 and 2020, respectively)		(6,582)		(4,438)		(16,570)		(9,043)
Equity in income (loss) of unconsolidated affiliates		1,844		(507)		2,414		(984)
Interest and other income, net		39		197		82		866

Income (loss) before income taxes		6,375		(6,079)		14,802		(19,822)
Benefit for income taxes		3,677		4,046		3,648		9,359

Net income (loss)		10,052		(2,033)		18,450		(10,463)
Net (income) loss attributable to noncontrolling interests		(2,176)		285		(2,790)		1,080

Net income (loss) attributable to REX common shareholders	$	7,876	$	(1,748)	$	15,660	$	(9,383)

Weighted average shares outstanding – basic and diluted		6,011		6,216		6,010		6,261

Basic and diluted net income (loss) per share attributable to REX common shareholders	$	1.31	$	(0.28)	$	2.61	$	(1.50)

	REX Shareholders

	Common Shares Issued				Treasury				Paid-in		Retained		Noncontrolling		Total
	Shares		Amount		Shares		Amount		Capital		Earnings		Interests		Equity

Balance at January 31, 2021		29,853	$	299		23,861	$	(354,612)	$	149,110	$	589,986	$	52,400	$	437,183

Net income												7,784		614		8,398

Noncontrolling interests distribution and other														(75)		(75)

Capital contributions														68		68

Issuance of equity awards and stock based compensation expense		-		-		-		8		34		-		-		42

Balance at April 30, 2021		29,853		299		23,861		(354,604)		149,144		597,770		53,007		445,616

Net income												7,876		2,176		10,052

Treasury stock acquired						17		(1,356)								(1,356)

Noncontrolling interests distribution and other														(1,229)		(1,229)

Capital contributions														71		71

Issuance of equity awards and stock based compensation expense		-		-		(12)		24		119		-		-		143

Balance at July 31, 2021		29,853	$	299		23,866	$	(355,936)	$	149,263	$	605,646	$	54,025	$	453,297

	REX Shareholders

	Common Shares
	Issued						Treasury						Paid-in			Retained			Noncontrolling			Total
	Shares			Amount			Shares		Amount				Capital			Earnings			Interests			Equity

Balance at January 31, 2022		29,853			$	299		23,933		$	(361,191	)		$	149,334		$	642,350		$	56,770		$	487,562

Net income																		5,182			1,804			6,986

Noncontrolling interests distribution and other																					(1)			(1)

Issuance of equity awards and stock based compensation expense		-				-		-			8				36			-			-			44

Balance at April 30, 2022		29,853			$	299		23,933		$	(361,183)			$	149,370		$	647,532		$	58,573		$	494,591

Balance at January 31, 2021		29,853			$	299		23,861		$	(354,612	)		$	149,110		$	589,986		$	52,400		$	437,183

Net income																		7,784			614			8,398

Noncontrolling interests distribution and other																					(75)			(75)

Capital contributions																					68			68

Issuance of equity awards and stock based compensation expense		-				-		-			8				34			-			-			42
			��
Balance at April 30, 2021		29,853			$	299		23,861		$	(354,604)			$	149,144		$	597,770		$	53,007		$	445,616

	Three Months Ended				Six Months Ended
	July 31, 2021		July 31, 2020		July 31, 2021		July 31, 2020

Operating lease expense	$	1,565	$	1,548	$	3,115	$	3,234
Variable lease expense		520		207		564		338
Total lease expense	$	2,085	$	1,755	$	3,679	$	3,572

	Three Months Ended April 30, 2021

	Non-Vested Shares		Weighted Average Grant Date Fair Value (000’s)		Weighted Average Remaining Vesting Term (in years)

Non-Vested at January 31, 2021		19,705	$	1,398		1
Granted		-		-
Forfeited		-		-
Vested		-		-

Non-Vested at April 30, 2021		19,705	$	1,398		1

	Three Months Ended April 30,
	2021

Net sales and revenue¹		$	62
Cost of Sales			1,737
Gross loss			(1,675)
Selling, general and administrative			(85)
Loss before income taxes			(1,760)
Benefit for income taxes			2,195
Net income from discontinued operations, net of tax			435
Net loss attributable to noncontrolling interests			80
Net income attributable to REX common shareholders		$	515

	Three Months Ended July 31,				Six Months Ended July 31,
Sales of products, ethanol and by-products segment:	2021		2020		2021		2020
Ethanol	$	153,990	$	32,524	$	280,059	$	93,121
Dried distillers grains		31,573		5,480		62,691		24,398
Non-food grade corn oil		9,813		1,313		15,407		4,501
Modified distillers grains		1,934		209		4,227		666
Derivative financial instruments losses		(1,638)		(298)		(2,764)		(298)
Other		6		14		100		89
Total	$	195,678	$	39,242	$	359,720	$	122,477
Sales of products, refined coal segment:
Refined coal	$	165	$	85	$	227	$	100

Entity	Trailing 12 Months Ethanol Gallons Shipped	REX’s Current ~~Effective~~ Ownership Interest	Current Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped
One Earth Energy, LLC	~~143.9 M~~	~~75.6%~~	~~108.8 M~~75.8%
NuGen Energy, LLC	~~137.4 M~~	99.7%	~~137.0 M~~
Big River Resources, LLC:
Big River Resources W Burlington, LLC	~~108.5 M~~	10.3%	~~11.2 M~~
Big River Resources Galva, LLC	~~119.6 M~~	10.3%	~~12.3 M~~
Big River United Energy, LLC	~~126.4 M~~	5.7%	~~7.2 M~~
Big River Resources Boyceville, LLC	~~62.6 M~~	10.3%	~~6.5 M~~
~~Total~~	~~698.4 M~~		~~283.0 M~~

	31		Rule 13a-14(a)/15d-14(a) Certifications

	32		Section 1350 Certifications

	101		The following information from REX American Resources Corporation Quarterly Report on Form 10-Q for the quarter ended ~~July 31, 2021,~~April 30, 2022, formatted in iXBRL: (i) Consolidated Condensed Balance Sheets, (ii) Consolidated Condensed Statements of Operations, (iii) Consolidated Condensed Statements of Equity, (iv) Consolidated Condensed Statements of Cash Flows and (v) Notes to Consolidated Condensed Financial Statements.

Signature	Title	Date

/s/ Zafar A. Rizvi (Zafar A. Rizvi)	Chief Executive Officer and President (Chief Executive Officer)	May 27, 2022

~~/s/ Zafar Rizvi~~	~~Chief Executive Officer and President~~
~~(Zafar Rizvi)~~	~~(Chief Executive Officer)~~	~~September 3, 2021~~

/s/ Douglas L. Bruggeman (Douglas L. Bruggeman)	Vice President, Finance and Treasurer (Chief Financial Officer)
~~(Douglas L. Bruggeman)~~	~~(Chief Financial Officer)~~	~~September 3, 2021~~May 27, 2022