Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 1172

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 1A
Chunk 1172
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 as well as depreciation, amortization, wages, benefits and other costs that are incurred directly or indirectly to support the manufacturing process. Selling, general and administrative includes expenses associated with the distribution of our products, sales effort, administration costs and other costs that are not incurred to support the manufacturing process. The Company records distribution costs associated with the sale of inventory as a component of selling, general and administrative expenses in the Consolidated Statements of Operations. These expenses include warehousing costs, outbound freight charges and costs associated with salaried distribution personnel. Our gross profit margins  may not be comparable to those of other entities due to different classifications of costs and expenses.    Our total advertising expenses, which are classified under selling, general, and administrative expenses are primarily related to trade shows, and totaled $2.6 million, $2.4 million, and $2.7 million for the years ended  June 30, 2025, 2024, and 2023, respectively.  

   Research and Development   Research and development expenditures are expensed as incurred. Total research and development costs, which are classified under selling, general, and administrative expenses, were $21.2 million, $20.5 million, and $17.2 million for the years ended  June 30, 2025, 2024, and 2023, respectively.  

   Warranties   The expected cost associated with warranty obligations on our products is recorded when the revenue is recognized. The Company’s estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Since warranty estimates are forecasts based on the best available information, claims costs  may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.   The changes in the continuing operations warranty reserve, which are recorded as accrued liabilities, during 2025, 2024, and 2023 were as follows (in thousands):  
    
        2025    2024    2023  
 Balance at beginning of year  $2,209  $2,094  $1,918 
 Acquisitions and other charges   181   92   - 
 Warranty expense   705   2,230   1,939 
 Warranty claims   (666)  (2,207)  (1,763)
 Balance at end of year  $2,