Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 659

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7
Chunk 659
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 9,647   10,405 
 Inventory   1,971   1,813 
 Lease liabilities   6,067   5,166 
 Section 174 Capitalization   18,308   12,904 
 Other   -   - 
 Net operating loss and credit carry forwards   14,240   15,823 
 Total deferred tax asset  $36,473  $49,426 
         
 Less: Valuation allowance   (11,527)  (12,365)
 Net deferred tax asset (liability)  $(15,971) $1,284 

   The Company estimates the degree to which deferred tax assets, including net operating loss and credit carry forwards will result in a benefit based on expected profitability by tax jurisdiction and provides a valuation allowance for tax assets and loss carry forwards that it believes will more likely than not go unrealized.  The valuation allowance at  June 30, 2025 applies to federal capital loss, state loss, foreign loss, and state R&D credit carryforwards, which management has concluded that it is more likely than not that these tax benefits will not be realized.  The increase (decrease) in the valuation allowance from the prior year was due to the current year activity in those same federal, state and foreign jurisdictions.
    
   As of  June 30, 2025, the Company had gross state net operating loss ("NOL") and credit carry forwards of approximately $15.8 million and $5.4 million, respectively, which  may be available to offset future state income tax liabilities and expire at various dates from 2024 through 2044.In addition, the Company had federal NOL carry forwards of  approximately $2.7 million and foreign NOL carry forwards of approximately $2.7 million, all of which carry forward indefinitely.
    
   Under ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the statement of operations.  Accordingly, we recorded an income tax benefit in the consolidated statement of operation of $0.9 million during the fiscal year ended  June 30, 2025 for the windfall of tax benefits related to equity compensation.
    
   U.S. tax law allows a 100% dividend received deduction for foreign dividends and the Company has