Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 1117

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 1A
Chunk 1117
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 and services, particularly in markets where demand for our products and services is cyclical; 

      • 
      causing delays or cancellations of orders for our products or services; 

      • 
      reducing capital spending by our customers; 

      • 
      increasing price competition in our markets; 

      • 
      increasing difficulty in collecting accounts receivable; 

      • 
      increasing the risk of excess or obsolete inventories; 

      • 
      increasing the risk of impairment to long-lived assets due to reduced use of manufacturing facilities; 

      • 
      increasing the risk of supply interruptions that would be disruptive to our manufacturing processes; and 

      • 
      reducing the availability of credit and spending power for our customers. 

We rely on our credit facility to provide us with sufficient capital to operate our businesses and to fund acquisitions.

We rely on our revolving credit facility, in part along with operating cash flow, to provide us with sufficient capital to operate our businesses and to fund acquisitions. The availability of borrowings under our revolving credit facility is dependent upon our compliance with the covenants set forth in the facility, including the maintenance of certain financial ratios. Our ability to comply with these covenants is dependent upon our future performance, which is subject to economic conditions in our markets along with factors that are beyond our control. Violation of those covenants could result in our lenders restricting or terminating our borrowing ability under our credit facility, cause us to be liable for covenant waiver fees or other obligations, or trigger an event of default under the terms of our credit facility, which could result in acceleration of the debt under the facility and require prepayment of the debt before its due date. Even if new financing is available, in the event of a default under our current credit facility, the interest rate charged on any new borrowing could be substantially higher than under the current credit facility, thus adversely affecting our overall financial condition. If our lenders reduce or terminate our access to amounts under our credit facility, we may not have sufficient capital to fund our working capital needs and/or acquisitions or we may need to secure additional capital or financing to fund our working capital requirements or to repay outstanding debt under our credit facility or to fund acquisitions.

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Our credit facility contains covenants that restrict our activities.

Our revolving credit facility contains covenants that restrict our activities, including our ability to:

      • 
      incur additional indebtedness; 

      • 
      make investments, including acquisitions; 

      • 
      create