REX American Resources Corporation (REX) SEC Filings & Earnings Calls

Commodity price volatility

“Our ethanol operations are highly dependent on commodity prices, especially prices for corn, ethanol, distillers grains, distillers corn oil and natural gas, and availability of corn.” · word for word

Carbon sequestration project delays

“We continue to work with the various government agencies involved to obtain all required permits and approvals, with no assurance of the ultimate success or timing of the project.” · word for word

Regulatory uncertainty on tax credits

“Changes or clarifications to the proposed regulations, administrative guidance, or interpretations could result in an adjustment to management’s estimate of 45Z tax credits recognized.” · word for word

Dependence on Section 45Z tax credits; expiration or reduction could materially impact profitability

“production tax credit income of $18.4 million net of estimated monetization expenses in the second quarter of 2026” · word for word

Carbon capture project subject to regulatory approval; draft permits received but final permits and public comment period pending

“The EPA is currently accepting public comments on the draft permits.” · word for word

Ethanol volume flat YoY; revenue growth reliant on pricing which may be volatile

“Gallons of ethanol sold (in millions) 70.6 (flat YoY)”

Increased authorized shares may lead to future dilution if issued.

“Shareholders approved doubling of authorized shares.”

Carbon sequestration project permitting and legal risk

“Illinois Senate Bill 1723, enacted in 2025, prohibits carbon sequestration activities over, under, or through the aquifer as defined by the EPA. The proposed injection wells for our carbon sequestration project are located outside of these areas.” · word for word

Commodity price volatility and crush spread risk

“Because the market prices of ethanol and distillers grains are not always directly related to corn 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.” · word for word

Tariff and trade policy risk

“There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries which have been large purchasers from our industry in the United States.” · word for word

Carbon capture project permitting risk: Class VI injection well and CO2 pipeline permits still pending with EPA and Illinois Commerce Commission.

“The Company's carbon capture and sequestration project continues to await permitting for the Class VI injection well and associated carbon dioxide pipeline.” · word for word

Ethanol pricing volatility: Lower ethanol pricing partially offset by tax credits and lower corn costs, indicating sensitivity to commodity prices.

“primarily reflecting lower ethanol pricing” · word for word

Equity Dilution from Authorized Share Increase

“The proposed increase in our authorized Common Stock could also, under certain circumstances, make more difficult or discourage attempts to obtain control of the Company, thereby having an anti-takeover effect.” · word for word

Inability to Grant Equity Awards if Plan Not Approved

“If our shareholders do not approve the 2026 Incentive Plan, we may need to significantly increase the cash component of our employee and director compensation, which may not necessarily align employee and director compensation interests with the investment interests of our shareholders.” · word for word

Commodity Price Volatility

“Our ethanol operations are highly dependent on commodity prices, especially prices for corn, ethanol, distillers grains, distillers corn oil and natural gas, and availability of corn.” · word for word

Regulatory and Policy Risk

“There has been much uncertainty in the enforcement of RFS II.” · word for word

Carbon Sequestration Project Risk

“we continue to work with the various government agencies involved to obtain all required permits and approvals, with no assurance of the ultimate success or timing of the project.” · word for word

Tariff and Trade Disruption Risk

“There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries which have been large purchasers from our industry in the United States.” · word for word

Regulatory dependency: carbon capture project awaiting EPA Class VI injection well permitting; timeline uncertain.

“The Company's carbon capture and sequestration project continues to await permitting for the Class VI injection well and associated carbon dioxide pipeline.” · word for word

Commodity price exposure: ethanol and corn oil pricing volatility; crush margins can fluctuate.

“The year-over-year net sales and revenue increase primarily reflects improved ethanol and corn oil pricing.” · word for word

Tax credit dependency: 45Z tax credits significantly boosted Q4 earnings; future availability uncertain.

“During Q4 '25, the Company recognized approximately $28.1 million in 45Z tax credits as a reduction to income tax expense.” · word for word

IRS tax credit disallowance

“The approximately $58.2 million in federal production tax credits received through the ownership of this facility remain under IRS audit. We have received a Notice of Proposed Adjustments from the IRS that they intend to deny these tax credits.” · word for word

Carbon sequestration project permitting delays

“We continue to work with the various government agencies involved to obtain all required permits and approvals, with no assurance of the ultimate success or timing of the project.” · word for word

Small refinery exemption policy risk

“These and additional SREs could lead to decreased RIN values and ethanol pricing.” · word for word

Tariff and trade disruption risk

“There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restrictions involving countries which have been large purchasers from our industry in the United States, which could affect future demand for these products.” · word for word

Lower ethanol and distillers grain pricing pressuring gross profit

“The decrease in gross profit was primarily the result of lower ethanol and distillers grain pricing” · word for word

Carbon capture project permitting delay risk

“Final permitting decision for the sequestration portion of the project is expected to be completed in June 2026 according to the published EPA timeline” · word for word