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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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The consolidated 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, 2023 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, 2023 (fiscal year 2022). These unaudited consolidated financial statements should 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, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b>Basis of Consolidation</b> – The consolidated 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 wholly owned and majority owned subsidiaries. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Statements of Operations on a delayed basis of one month as One Earth has a fiscal year end of December 31.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b>Stock Split</b> – On June 21, 2022, the Board of Directors of the Company adopted resolutions declaring a three-for-one split of the Company’s Common Stock to be effectuated in the form of a 200% stock dividend, payable on August 5, 2022 to stockholders of record at the close of business on July 29, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b>Nature of Operations</b> – The Company has one reportable segment, ethanol and by-products. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability companies, two of which are majority ownership interests.</p> 1 3 2 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 2. <i>Accounting Policies </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Company’s fiscal year 2022 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Cash and Cash Equivalents</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><span style="font-weight: normal">Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue Recognition</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company recognizes sales of ethanol, distillers grains and distillers 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of Sales</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Cost of sales includes depreciation, costs of raw materials, third-party freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain compensation costs and general facility overhead charges.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0pt">Selling, General and Administrative (“SG&amp;A”) Expenses</p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company includes non-production related costs such as professional fees, selling charges and certain payroll in SG&amp;A expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Change in Accounting Principles</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Effective for the second quarter of fiscal year 2023, the Company changed the method of accounting for shipping and handling costs for products sold to customers from recorded within “Selling, general and administrative expenses” to recorded within “Cost of sales” on the accompanying Consolidated Statements of Operations. While both presentations are allowable under accounting principles generally accepted in the United States of America, the Company believes that this change in classification is preferable because it improves the comparability of gross margin between periods and among industry peers.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td colspan="5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Three Months Ended<br/> October 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>As Previously<br/><span style="text-decoration:underline">Reported</span></b></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>Effect of<br/><span style="text-decoration:underline">Change</span></b></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>As Currently<br/><span style="text-decoration:underline">Reported</span></b></td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 72%; font-family: Times New Roman, Times, Serif">Cost of sales</td><td style="width: 4%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$208,941</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$2,063</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$211,004</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Gross profit</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$11,336</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(2,063)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$9,273</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Selling, general and administrative</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(7,886)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$2,063</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(5,823)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td colspan="5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Nine Months Ended<br/> October 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>As Previously<br/> <span style="text-decoration:underline">Reported</span></b></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>Effect of<span style="text-decoration:underline"> <br/> Change</span></b></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>As Currently<br/> <span style="text-decoration:underline">Reported</span></b></span></td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 72%; font-family: Times New Roman, Times, Serif">Cost of sales</td><td style="width: 4%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$615,001</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$4,548</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$619,549</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Gross profit</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$39,832</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(4,548)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$35,284</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Selling, general and administrative</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(22,237)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$4,548</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(17,689)</td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Financial Instruments</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Certain of the forward corn purchase and ethanol, distillers grains and distillers corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “<i>Derivatives and Hedging</i>” (“ASC 815”) because these arrangements are for purchases of corn that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and distillers corn oil in quantities expected to be produced by the Company over a reasonable period of time in the normal course of business.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Income Taxes</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. 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 income taxes of approximately $8.7 million and $2.2 million and received no refunds during the nine months ended October 31, 2023 and 2022, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">As of October 31, 2023, and January 31, 2023, total unrecognized tax benefits were approximately $19,033,000. Accrued penalties and interest were approximately $64,000 and approximately $55,000 at October 31, 2023 and January 31, 2023, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $18.9 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Inventory</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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. 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 did not record any inventory write-downs at October 31, 2023. The Company recorded inventory write-downs of approximately $0.7 million in cost of sales at January 31, 2023. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The components of inventory are as follows as of the dates presented (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Ethanol and other finished goods</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">8,035</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">12,695</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,194</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Corn and other raw materials</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">23,783</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">25,855</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">37,515</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">48,744</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Property and Equipment </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with ASC 360-10 “<i>Impairment or Disposal of Long-Lived Assets</i>”, 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 or record any impairment charges during the first nine months of fiscal years 2023 or 2022.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">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.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Investments </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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, “<i>Investments-Equity Method and Joint Ventures</i>” 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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 Statements of Operations and a new cost basis in the investment is established.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Short-term investments, consisting of U.S. government obligations, are considered held to maturity, and therefore are carried at amortized historical cost.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><span><b>Recently Issued Accounting Standards</b></span></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><span>In November 2023, the FASB issued ASU 2023-07, <i>Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures</i>, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.</span></p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Cash and Cash Equivalents</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><span style="font-weight: normal">Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.</span></p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue Recognition</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company recognizes sales of ethanol, distillers grains and distillers 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.</p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of Sales</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Cost of sales includes depreciation, costs of raw materials, third-party freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain compensation costs and general facility overhead charges.</p> <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0pt">Selling, General and Administrative (“SG&amp;A”) Expenses</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company includes non-production related costs such as professional fees, selling charges and certain payroll in SG&amp;A expenses.</p> The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td colspan="5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Nine Months Ended<br/> October 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>As Previously<br/> <span style="text-decoration:underline">Reported</span></b></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>Effect of<span style="text-decoration:underline"> <br/> Change</span></b></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>As Currently<br/> <span style="text-decoration:underline">Reported</span></b></span></td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 72%; font-family: Times New Roman, Times, Serif">Cost of sales</td><td style="width: 4%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$615,001</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$4,548</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$619,549</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Gross profit</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$39,832</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(4,548)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$35,284</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Selling, general and administrative</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(22,237)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$4,548</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(17,689)</td></tr> </table> The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"> </td> <td colspan="5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Three Months Ended<br/> October 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>As Previously<br/><span style="text-decoration:underline">Reported</span></b></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>Effect of<br/><span style="text-decoration:underline">Change</span></b></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><b>As Currently<br/><span style="text-decoration:underline">Reported</span></b></td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 72%; font-family: Times New Roman, Times, Serif">Cost of sales</td><td style="width: 4%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$208,941</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$2,063</td><td style="width: 6%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif; text-align: center">$211,004</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Gross profit</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$11,336</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(2,063)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$9,273</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Selling, general and administrative</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(7,886)</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$2,063</td><td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: center">$(5,823)</td></tr> </table> 208941000 2063000 211004000 11336000 -2063000 9273000 7886000 -2063000 5823000 615001000 4548000 619549000 39832000 -4548000 35284000 22237000 -4548000 17689000 <p style="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0">Financial Instruments</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Certain of the forward corn purchase and ethanol, distillers grains and distillers corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “<i>Derivatives and Hedging</i>” (“ASC 815”) because these arrangements are for purchases of corn that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and distillers corn oil in quantities expected to be produced by the Company over a reasonable period of time in the normal course of business.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Income Taxes</b></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. 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 income taxes of approximately $8.7 million and $2.2 million and received no refunds during the nine months ended October 31, 2023 and 2022, respectively.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">As of October 31, 2023, and January 31, 2023, total unrecognized tax benefits were approximately $19,033,000. Accrued penalties and interest were approximately $64,000 and approximately $55,000 at October 31, 2023 and January 31, 2023, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $18.9 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.</p> 8700000 2200000 19033000 19033000 64000 55000 18900000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Inventory</b></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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. 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 did not record any inventory write-downs at October 31, 2023. The Company recorded inventory write-downs of approximately $0.7 million in cost of sales at January 31, 2023. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The components of inventory are as follows as of the dates presented (amounts in thousands):</p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Ethanol and other finished goods</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">8,035</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">12,695</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,194</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Corn and other raw materials</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">23,783</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">25,855</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">37,515</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">48,744</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 700000 The components of inventory are as follows as of the dates presented (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Ethanol and other finished goods</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">8,035</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">12,695</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,194</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Corn and other raw materials</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">23,783</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">25,855</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">37,515</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">48,744</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 8035000 12695000 5697000 10194000 23783000 25855000 37515000 48744000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Property and Equipment </b></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with ASC 360-10 “<i>Impairment or Disposal of Long-Lived Assets</i>”, 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 or record any impairment charges during the first nine months of fiscal years 2023 or 2022.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">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.</p> P15Y P40Y P3Y P20Y <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Investments </b></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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, “<i>Investments-Equity Method and Joint Ventures</i>” 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.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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 Statements of Operations and a new cost basis in the investment is established.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Short-term investments, consisting of U.S. government obligations, are considered held to maturity, and therefore are carried at amortized historical cost.</p> 0.20 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><span><b>Recently Issued Accounting Standards</b></span></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><span>In November 2023, the FASB issued ASU 2023-07, <i>Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures</i>, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.</span></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 3. <i>Net Sales and Revenue</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">Sales, value added and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically entered into sales contracts in which payment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The following tables shows disaggregated revenue by product (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; "> <td style="width: 48%">Ethanol</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">170,194</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">165,135</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">495,103</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">502,404</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Dried distillers grains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,983</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,009</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">106,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104,167</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Distillers corn oil</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,648</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,257</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,973</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Modified distillers grains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,159</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,814</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,288</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Derivative financial instrument (losses) gains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(20)</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">840</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,144)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">7</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">124</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">145</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">221,079</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">220,277</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">645,770</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">654,833</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> The following tables shows disaggregated revenue by product (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; "> <td style="width: 48%">Ethanol</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">170,194</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">165,135</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">495,103</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">502,404</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Dried distillers grains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,983</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,009</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">106,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104,167</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Distillers corn oil</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,648</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,257</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,973</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Modified distillers grains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,159</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,814</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,288</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Derivative financial instrument (losses) gains</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(20)</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">840</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,144)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">7</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">124</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">145</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">221,079</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">220,277</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">645,770</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">654,833</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 170194000 165135000 495103000 502404000 34983000 38009000 106632000 104167000 14756000 14648000 39257000 39973000 1159000 2477000 3814000 9288000 -20000 8000 840000 -1144000 7000 0 124000 145000 221079000 220277000 645770000 654833000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 4. <i>Leases</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">At October 31, 2023, the Company had 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 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The components of lease expense, classified as SG&amp;A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 39%; text-align: left">Operating lease expense</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">1,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">2,060</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">4,691</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">5,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Variable lease expense</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(26)</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">92</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">277</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">757</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Total lease expense</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,473</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,152</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">4,968</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">6,418</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-decoration: underline; text-align: left">Years Ended January 31,</td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: right"><b>Minimum <span style="text-decoration:underline">Rentals</span></b></td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 86%; text-align: left">Remainder of 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,582</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,108</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,955</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,907</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; text-align: left">Thereafter </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,154</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,183</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Less:  present value discount</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,944</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Operating lease liabilities</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">14,239</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">At October 31, 2023, the weighted average remaining lease term is 3.5 years, and the weighted average discount rate is 5.87% for the outstanding leases.<b> </b>At January 31, 2023, the weighted average remaining lease term was 3.7 years, and the weighted average discount rate was 5.51% for the outstanding leases.<b> </b></p> The components of lease expense, classified as SG&amp;A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2" style="text-align: right"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 39%; text-align: left">Operating lease expense</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">1,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">2,060</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">4,691</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">5,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Variable lease expense</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(26)</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">92</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">277</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">757</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Total lease expense</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,473</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,152</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">4,968</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">6,418</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 1499000 2060000 4691000 5661000 -26000 92000 277000 757000 1473000 2152000 4968000 6418000 The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-decoration: underline; text-align: left">Years Ended January 31,</td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: right"><b>Minimum <span style="text-decoration:underline">Rentals</span></b></td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 86%; text-align: left">Remainder of 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,582</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,108</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,955</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,907</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px; text-align: left">Thereafter </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,154</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,183</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Less:  present value discount</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,944</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Operating lease liabilities</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">14,239</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 1582000 5108000 2955000 2907000 2477000 1154000 16183000 1944000 14239000 P3Y6M 0.0587 P3Y8M12D 0.0551 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 5. <i>Fair Value</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><span style="color: black">The Company applies ASC 820, “<i>Fair Value Measurements and Disclosures”</i> (“ASC 820”), which provides a framework for measuring fair value under </span>accounting principles generally accepted in the United States of America<span style="color: black">. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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 October 31, 2023 are summarized below (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 1</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 2</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 3</span></td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">Fair Value</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 54%; color: black; text-align: left">Commodity futures asset (1)</td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-0">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">172</td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">172</td><td style="width: 1%; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left">Forward purchase contracts liability (2)</td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-2">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,405</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,405</td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures liability (2)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-5">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px">Total liabilities</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-6">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">1,412</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">1,412</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2023 aresummarized below (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 1</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 2</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 3</span></td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">Fair Value</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 54%; color: black; text-align: left">Forward purchase contracts asset (1)</td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-8">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">105</td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">105</td><td style="width: 1%; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures asset (1)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">80</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">80</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 3px">Total assets</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-12">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">185</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-13">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">185</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left">Forward purchase contracts liability (2)</td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-14">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">355</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-15">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">355</td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures liability (2)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-16">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">67</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-17">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">67</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px">Total liabilities</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-18">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">422</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-19">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">422</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify">(1) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify">(2) The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.</p> Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2023 are summarized below (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 1</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 2</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 3</span></td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">Fair Value</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 54%; color: black; text-align: left">Commodity futures asset (1)</td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-0">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">172</td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">172</td><td style="width: 1%; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left">Forward purchase contracts liability (2)</td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-2">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,405</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,405</td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures liability (2)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-5">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">7</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px">Total liabilities</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-6">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">1,412</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">1,412</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 1</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 2</span></td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"><span style="text-decoration:underline">Level 3</span></td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">Fair Value</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="color: black; font-weight: bold"> </td> <td colspan="2" style="color: black; font-weight: bold; text-align: center"> </td><td style="color: black; font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 54%; color: black; text-align: left">Forward purchase contracts asset (1)</td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-8">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">105</td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">-</div></td><td style="width: 3%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td> <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 6%; color: black; text-align: right">105</td><td style="width: 1%; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures asset (1)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">80</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">80</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 3px">Total assets</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-12">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">185</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-13">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">185</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"> </td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left">Forward purchase contracts liability (2)</td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-14">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">355</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-15">-</div></td><td style="color: black; text-align: left"> </td><td style="color: black"> </td> <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">355</td><td style="color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="color: black; text-align: left; padding-bottom: 1px">Commodity futures liability (2)</td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-16">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">67</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-17">-</div></td><td style="padding-bottom: 1px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1px solid; color: black; text-align: right">67</td><td style="padding-bottom: 1px; color: black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="color: black; text-align: left; padding-bottom: 3px">Total liabilities</td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-18">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">422</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right"><div style="-sec-ix-hidden: hidden-fact-19">-</div></td><td style="padding-bottom: 3px; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; color: black; text-align: left">$</td><td style="border-bottom: Black 3px double; color: black; text-align: right">422</td><td style="padding-bottom: 3px; color: black; text-align: left"> </td></tr> </table><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify">(1) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify">(2) The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.</p> 172000 172000 1405000 1405000 7000 7000 1412000 1412000 105000 105000 80000 80000 185000 185000 355000 355000 67000 67000 422000 422000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 6. <i>Property and Equipment</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The components of property and equipment are as follows for the periods presented (amounts in thousands):</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Land and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">31,205</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,194</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Buildings and improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,796</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,707</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Machinery, equipment, and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">305,310</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">299,665</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Construction in progress</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">25,367</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">10,255</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">385,678</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">363,821</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Less: Accumulated depreciation</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(241,111)</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(228,324)</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">144,567</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">135,497</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> The components of property and equipment are as follows for the periods presented (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Land and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">31,205</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,194</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Buildings and improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,796</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,707</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Machinery, equipment, and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">305,310</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">299,665</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Construction in progress</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">25,367</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">10,255</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">385,678</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">363,821</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Less: Accumulated depreciation</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(241,111)</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(228,324)</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">144,567</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">135,497</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 31205000 30194000 23796000 23707000 305310000 299665000 25367000 10255000 385678000 363821000 241111000 228324000 144567000 135497000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 7. Other Assets</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The components of other assets are as follows for the periods presented (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31, <span style="text-decoration:underline"><br/> 2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-size: 8pt; font-weight: bold"> </td> <td colspan="2" style="font-size: 8pt; font-weight: bold; text-align: center"><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>January 31,</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="text-decoration:underline">2023</span></b></p> </td><td style="font-size: 8pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Deferred taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,916</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">21,964</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,673</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,215</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">13,589</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">23,179</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> The components of other assets are as follows for the periods presented (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31, <span style="text-decoration:underline"><br/> 2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-size: 8pt; font-weight: bold"> </td> <td colspan="2" style="font-size: 8pt; font-weight: bold; text-align: center"><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>January 31,</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="text-decoration:underline">2023</span></b></p> </td><td style="font-size: 8pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Deferred taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,916</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">21,964</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,673</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,215</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">13,589</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">23,179</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 11916000 21964000 1673000 1215000 13589000 23179000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 8. <i>Accrued Expenses and Other Current Liabilities </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Accrued payroll and related items</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,943</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,428</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued utility charges</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,749</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,116</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Accrued transportation related items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,311</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued real estate taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,387</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,850</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Commodity futures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">67</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Forward purchase contracts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">355</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Accrued income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,303</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,152</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">14,842</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">15,328</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 73%; text-align: left">Accrued payroll and related items</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,943</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,428</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued utility charges</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,749</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,116</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Accrued transportation related items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,311</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued real estate taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,387</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,850</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Commodity futures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">67</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Forward purchase contracts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">355</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Accrued income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,303</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,152</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">14,842</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">15,328</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 6943000 4428000 2749000 4116000 918000 1311000 1387000 1850000 7000 67000 -1405000 -355000 130000 2049000 1303000 1152000 14842000 15328000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 9. <i>Derivative Financial Instruments </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 distillers 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.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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 Balance Sheets in which the fair values are reflected (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif; margin-left: 0pt"> <tr style="vertical-align: bottom"> <td><b> </b></td><td style="font-weight: bold"><b> </b></td> <td colspan="8" style="text-align: center"><b>Asset Derivatives <br/> Fair Value</b></td><td style="font-weight: bold"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td colspan="8" style="text-align: center"><b>Liability Derivatives <br/> Fair Value</b></td><td style="font-weight: bold"><b> </b></td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 68%; text-align: left">Commodity futures (1)</td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">172</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">80</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">7</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">67</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Forward purchase contracts (2)</td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">105</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,405</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">355</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">172</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">185</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,412</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">422</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">(1) Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">(2) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">As of October 31, 2023, and January 31, 2023, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements with the counterparties. The Company’s accounting policy is to offset positions and amounts owed with the same counterparties. As of October 31, 2023, and January 31, 2023, the gross positions of the enforceable master netting agreements</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">were 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 counterparties may require collateral to secure the Company’s derivative contract position. The Company was required to maintain collateral in the amount of approximately $1.7 million to secure the Company’s derivative liability positions at both October 31, 2023 and January 31, 2023, which is recorded as “Restricted cash” on the accompanying Consolidated Balance Sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">See Note 5 which contains fair value information related to derivative financial instruments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company recognized (losses) and gains, which are included in “Net sales and revenue” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to ethanol sales contracts of approximately $(20,000) and $8,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains and (losses) on derivative financial instruments related to ethanol sales contracts of approximately $0.8 million and $(1.1) million for the first nine months of fiscal years 2023 and 2022, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company recognized gains, which are included in “Cost of sales” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to corn purchase contracts of approximately $10.6 million and of $9,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains (losses) on derivative financial instruments related to corn purchase contracts of approximately $15.7 million and $(12.9) million for the first nine months of fiscal years 2023 and 2022, respectively.</p> 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 Balance Sheets in which the fair values are reflected (in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif; margin-left: 0pt"> <tr style="vertical-align: bottom"> <td><b> </b></td><td style="font-weight: bold"><b> </b></td> <td colspan="8" style="text-align: center"><b>Asset Derivatives <br/> Fair Value</b></td><td style="font-weight: bold"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td colspan="8" style="text-align: center"><b>Liability Derivatives <br/> Fair Value</b></td><td style="font-weight: bold"><b> </b></td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>October 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>January 31,<br/> <span style="text-decoration:underline">2023</span></b></span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td></td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 68%; text-align: left">Commodity futures (1)</td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">172</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">80</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">7</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 0%"></td> <td style="width: 1%; text-align: left">$</td><td style="width: 3%; text-align: right">67</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Forward purchase contracts (2)</td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">105</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">1,405</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td></td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">355</td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">172</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">185</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,412</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td></td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">422</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">(1) Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">(2) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.</p> 172000 80000 7000 67000 0 105000 1405000 355000 172000 185000 1412000 422000 500000 4700000 3200000 725000 45000 1300000 1400000 5200000 13800000 12800000 1700000 1700000 -20000 8000 $0.8 (1.1) 10600000 9000 $15.7 (12.9) <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 10. <i>Investments </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt"><b>Equity Method Investment in Big River</b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The following table summarizes the Company’s equity method investment at October 31, 2023 and January 31, 2023 (dollars in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b> </b></span></td> <td> </td> <td colspan="3" style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>Carrying Amount</b></span></td></tr> <tr style="vertical-align: top"> <td style="width: 23%; layout-grid-mode: line; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">Entity</span></b></span></td> <td style="width: 20%; white-space: nowrap;"> </td> <td style="width: 22%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">Ownership Percentage</span></b></span></td> <td style="width: 20%; white-space: nowrap;"> </td> <td style="width: 1%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">October 31, 2023</span></b></span></td> <td style="width: 13%; white-space: nowrap;"> </td> <td style="width: 1%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">January 31, 2023</span></b></span></td></tr> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"><span style="font-family: Times New Roman, Times, Serif">Big River </span></td> <td> </td> <td style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif">10.3%</span></td> <td> </td> <td style="layout-grid-mode: line; text-align: right"><span style="font-family: Times New Roman, Times, Serif">$36,807</span></td> <td> </td> <td style="layout-grid-mode: line; text-align: right"><span style="font-family: Times New Roman, Times, Serif">$ 33,045</span></td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Undistributed earnings of the Company’s equity method investee totaled approximately $16.8 million and approximately $13.0 million at October 31, 2023 and January 31, 2023, respectively. The Company received dividends from its equity method investee of approximately $5.5 million and $3.0 million in the first nine months of fiscal year 2023 and 2022, respectively.</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 52%; text-align: left">Net sales and revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">351,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">398,838</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">1,128,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">1,200,980</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,869</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,432</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">107,395</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,593</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Income from continuing operations</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">45,955</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,415</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">89,954</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Net income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">45,955</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,415</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">89,954</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,230</td><td style="text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt"><b>Short-term Investments</b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">At October 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $259.2 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 5.5%. Unrealized gains or losses were insignificant.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">At January 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $211.3 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 3.9%. Unrealized gains or losses were insignificant.</p> The following table summarizes the Company’s equity method investment at October 31, 2023 and January 31, 2023 (dollars in thousands):<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b> </b></span></td> <td> </td> <td colspan="3" style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>Carrying Amount</b></span></td></tr> <tr style="vertical-align: top"> <td style="width: 23%; layout-grid-mode: line; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">Entity</span></b></span></td> <td style="width: 20%; white-space: nowrap;"> </td> <td style="width: 22%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">Ownership Percentage</span></b></span></td> <td style="width: 20%; white-space: nowrap;"> </td> <td style="width: 1%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">October 31, 2023</span></b></span></td> <td style="width: 13%; white-space: nowrap;"> </td> <td style="width: 1%; layout-grid-mode: line; text-align: center; white-space: nowrap;"><span style="font-family: Times New Roman, Times, Serif"><b><span style="text-decoration:underline">January 31, 2023</span></b></span></td></tr> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td> <td> </td> <td style="layout-grid-mode: line; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="layout-grid-mode: line"><span style="font-family: Times New Roman, Times, Serif">Big River </span></td> <td> </td> <td style="layout-grid-mode: line; text-align: center"><span style="font-family: Times New Roman, Times, Serif">10.3%</span></td> <td> </td> <td style="layout-grid-mode: line; text-align: right"><span style="font-family: Times New Roman, Times, Serif">$36,807</span></td> <td> </td> <td style="layout-grid-mode: line; text-align: right"><span style="font-family: Times New Roman, Times, Serif">$ 33,045</span></td></tr> </table> 0.103 36807000 33045000 16800000 13000000 5500000 3000000 Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended<br/> October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2023</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1px"><span style="text-decoration:underline">2022</span></td><td style="padding-bottom: 1px; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 52%; text-align: left">Net sales and revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">351,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">398,838</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">1,128,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">1,200,980</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,869</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,432</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">107,395</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,593</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Income from continuing operations</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">45,955</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,415</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">89,954</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Net income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">45,955</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,415</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">89,954</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,230</td><td style="text-align: left"> </td></tr> </table> 351390000 398838000 1128012000 1200980000 52869000 11432000 107395000 60593000 45955000 6415000 89954000 60230000 45955000 6415000 89954000 60230000 259200000 0.055 211300000 0.039 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 11. <i>Employee Benefits</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 1,650,000 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. Until 2022, the Company had only granted restricted stock awards. In May 2022, the Company issued restricted stock units to certain officers of the Company which vest based on the Company’s Total Shareholder Return (“TSR”) compared to the TSRs of companies that comprise the Russell 2000 Index over a three-year performance period. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At October 31, 2023, 1,229,116 shares remain available for issuance under the Plan, excluding the impact of the 67,500 restricted stock units that may vest between zero and 135,000 shares of stock depending on certain performance metrics being achieved.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0pt"><b>Restricted Stock Awards</b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">As a component of their compensation, restricted stock has been granted to directors and certain employees at the closing market price of REX common stock on the grant date. In addition, one quarter 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</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0">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.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">At October 31, 2023 and January 31, 2023, unrecognized compensation cost related to nonvested restricted stock awards was approximately $545,000 and $450,000 respectively. The following tables summarize non-vested restricted stock award activity for the periods presented:</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="text-align: center"><b>Nine Months Ended October 31, 2023</b></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; white-space: nowrap;"><b>Non-Vested <br/> <span style="text-decoration:underline">Shares</span></b></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Grant<br/> Date Fair Value <br/> <span style="text-decoration:underline">(000’s)</span></b></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Remaining <br/> Vesting Term<br/> <span style="text-decoration:underline">(in years)</span></b></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 57%">Non-Vested at January 31, 2023</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">81,264</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">2,320</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td> <td style="width: 4%; text-align: left">  </td><td style="width: 6%; text-align: right">2</td><td style="width: 2%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">113,726</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,945</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Vested</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">32,135</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">896</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px; text-align: right"> </td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Non-Vested at October 31, 2023</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">162,855</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">5,369</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px; text-align: right">2</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="11" style="text-align: center"><b>Nine Months Ended October 31, 2022</b></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap;"><b>Non-Vested<br/> <span style="text-decoration:underline">Shares</span></b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Grant<br/> Date Fair Value<br/><span style="text-decoration:underline">(000’s)</span></b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Remaining <br/> Vesting Term<br/><span style="text-decoration:underline">(in years)</span></b></td></tr> <tr style="vertical-align: bottom"> <td style="width: 57%"> </td><td style="width: 5%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 6%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 4%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 8%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 4%"> </td> <td style="text-align: left; width: 4%"> </td><td style="text-align: right; width: 6%"> </td><td style="text-align: left; width: 2%"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Non-Vested at January 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,167</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">773</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">70,689</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Vested</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">18,403</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">451</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px; text-align: right"> </td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Non-Vested at October 31, 2022</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">82,453</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,354</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px; text-align: right">2</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0pt"><b>Restricted Stock Units (“RSUs”)</b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">In May 2022, the Company issued a total of 67,500 RSUs to certain officers. The number of RSUs eligible to vest will be determined based on how the Company’s TSR compares to the TSR of companies that comprise the Russell 2000 Index during the performance period ending December 31, 2024. The number of RSUs eligible to vest ranges from zero percent to two hundred percent, depending on actual</p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0pt">performance during the performance period. While dilutive, the impact to earnings per share is not material to the financial statements.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 36pt">For the three and nine-month periods ended October 31, 2023, the Company recognized compensation cost of approximately $265,000 and $794,000, respectively, related to the RSUs. For the three and nine-month periods ended October 31, 2022, the Company recognized compensation cost of approximately $253,000 and $441,100, respectively, related to the RSUs. Unrecognized compensation cost related to the RSUs at October 31, 2023 and January 31, 2023, was approximately $1.2 million and $2.0 million, respectively.</p> 1650000 1229116 545000 450000 The following tables summarize non-vested restricted stock award activity for the periods presented:<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="text-align: center"><b>Nine Months Ended October 31, 2023</b></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; white-space: nowrap;"><b>Non-Vested <br/> <span style="text-decoration:underline">Shares</span></b></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Grant<br/> Date Fair Value <br/> <span style="text-decoration:underline">(000’s)</span></b></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Remaining <br/> Vesting Term<br/> <span style="text-decoration:underline">(in years)</span></b></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 57%">Non-Vested at January 31, 2023</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">81,264</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">2,320</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td> <td style="width: 4%; text-align: left">  </td><td style="width: 6%; text-align: right">2</td><td style="width: 2%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">113,726</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,945</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Vested</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">32,135</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">896</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px; text-align: right"> </td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Non-Vested at October 31, 2023</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">162,855</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">5,369</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px; text-align: right">2</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="11" style="text-align: center"><b>Nine Months Ended October 31, 2022</b></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td colspan="2"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap;"><b>Non-Vested<br/> <span style="text-decoration:underline">Shares</span></b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Grant<br/> Date Fair Value<br/><span style="text-decoration:underline">(000’s)</span></b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center"><b>Weighted<br/> Average Remaining <br/> Vesting Term<br/><span style="text-decoration:underline">(in years)</span></b></td></tr> <tr style="vertical-align: bottom"> <td style="width: 57%"> </td><td style="width: 5%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 6%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 4%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 8%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 4%"> </td> <td style="text-align: left; width: 4%"> </td><td style="text-align: right; width: 6%"> </td><td style="text-align: left; width: 2%"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Non-Vested at January 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,167</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">773</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">70,689</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Vested</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">18,403</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">451</td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px; text-align: right"> </td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Non-Vested at October 31, 2022</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">82,453</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,354</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px; text-align: right">2</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 81264 2320000 P2Y 113726 3945 0 0 32135 896000 162855 5369000 P2Y 30167 773000 P1Y 70689 2032 0 0 18403 451000 82453 2354000 P2Y 265000 794000 253000 441100 1200000 2000000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 12<i>. Income Taxes </i></b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Company’s income tax provision was approximately $9.6 million and $1.2 million for the three months ended October 31, 2023 and 2022, respectively. The Company’s income tax provision was approximately $15.4 and $7.4 million for the nine months ended October 31, 2023 and 2022, respectively.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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. 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.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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):</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended <br/>October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 56%; text-align: left">Unrecognized tax benefits, beginning of period</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">19,088</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">16,781</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Changes for prior years’ tax positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Changes for current year tax positions</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-20">-</div></td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-21">-</div></td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Unrecognized tax benefits, end of period</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">19,097</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">16,875</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 9600000 1200000 15400000 7400000 A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Nine Months Ended <br/>October 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2023</span></td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="text-decoration:underline">2022</span></td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td><td><span style="font-size: 10pt"> </span></td> <td style="text-align: left"><span style="font-size: 10pt"> </span></td><td style="text-align: right"><span style="font-size: 10pt"> </span></td><td style="text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 56%; text-align: left">Unrecognized tax benefits, beginning of period</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">19,088</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">16,781</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Changes for prior years’ tax positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Changes for current year tax positions</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-20">-</div></td><td style="padding-bottom: 1px; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-21">-</div></td><td style="padding-bottom: 1px; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Unrecognized tax benefits, end of period</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">19,097</td><td style="padding-bottom: 3px; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">16,875</td><td style="padding-bottom: 3px; text-align: left"> </td></tr> </table> 19088000 16781000 9000 94000 19097000 16875000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 13. <i>Commitments and Contingencies</i></b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="text-indent: 36pt; font: 12pt Times New Roman, Times, Serif; margin: 0pt">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 counsel’s 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 Financial Statements. The Company maintained a liability of $250,000 at October 31, 2023 and January 31, 2023, as a probable and reasonably estimable loss associated with a legal contingency for a patent infringement case involving our refined coal facility which is no longer in operation. </p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At October 31, 2023, One Earth and NuGen had combined forward purchase contracts for approximately 13.8 million bushels of corn, the principal raw material for their ethanol plants, and they have combined forward purchase contracts for approximately 1.6 million MmBtu (million British thermal unit) of natural gas.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 36pt">At October 31, 2023, One Earth and NuGen had combined sales commitments for approximately 53.8 million gallons of ethanol, approximately 111,000 tons of distillers grains and approximately 14.2 million pounds of distillers corn oil.</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 36pt">At October 31, 2023, One Earth had signed non-cancelable contracts for capital projects with approximately $38.1 million remaining in future payments, of which $31.2 million is related to One Earth’s carbon sequestration project and $6.9 million relates to planned plant expansion.</p> 250000 250000 13800000 1.6 53800000 111000 14200000 38100000 31200000 6900000 <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 14. <i>Related-Party Transactions</i></b></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 36pt">During the third quarters of fiscal years 2023 and 2022, One Earth and NuGen purchased approximately $32.7 million and $35.2 million, respectively, of corn (and other supplies) from minority equity investors and board members of those affiliates. Such purchases totaled approximately $92.6 million and $101.2 million for the nine months ended October 31, 2023 and 2022, respectively. The Company had amounts payable to related parties of approximately $1.9 million and $1.5 million at October 31, 2023 and January 31, 2023, respectively.</p> 32700000 35200000 92600000 101200000 1900000 1500000 false --01-31 Q3 2023 0000744187 The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023. Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.