EMPLOYEE BENEFITS

12 Months Ended

Jan. 31, 2023

Disclosure Text Block Supplement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

10. EMPLOYEE BENEFITS

The Company maintains the REX American Resources Corporation 2015 Incentive Plan, approved by its shareholders, which reserved 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 the current year, 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 noncash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. 1,342,842 shares remain available for issuance under the Plan at January 31, 2023.

Restricted Stock Awards

As a component of their compensation, restricted stock has been granted to directors and certain employees at the market price of REX common stock on the date of the grant. In addition, one-quarter (one-third prior to 2022) of executives’ incentive compensation is payable by an award of restricted stock based on the then market price of REX common stock. The Company’s board of directors has determined that the grant date will be June 15^th, or the next business day, for all grants of restricted stock.

At January 31, 2023 and 2022, unrecognized compensation cost related to nonvested restricted stock was approximately $450,000 and $97,000.

The following table summarizes non-vested restricted stock award activity for fiscal years 2022, 2021, and 2020:

	2022
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2022		30,167	$	773		1
Granted		70,689		2,032
Forfeited		450		13
Vested		19,142		472
Non-Vested at January 31, 2023		81,264	$	2,320		2
	2021
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2021		59,102	$	1,398		1
Granted		8,409		275
Forfeited		-		-
Vested		37,344		900
Non-Vested at January 31, 2022		30,167	$	773		1
	2020
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2020		85,970	$	2,193		2
Granted		18,474		416
Forfeited		-		-
Vested		45,342		1,211
Non-Vested at January 31, 2021		59,102	$	1,398		1

Restricted Stock Units (RSUs)

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 three-year performance period ending December 31, 2024. The number of RSUs eligible to vest ranges from zero percent to two hundred percent, depending on actual performance during the performance period. At grant date, the fair value of the RSUs was approximately $2.7 million based on a Monte-Carlo simulation model.

At January 31, 2023, unrecognized compensation cost related to nonvested RSUs was approximately $2.0 million.