Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 523

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 5
Chunk 523
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, 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  $2,429  $2,209  $2,094 

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   Stock-Based Compensation Plans   Restricted stock awards, including performance-based awards, generally vest over terms from one to three years. Compensation expense associated with these awards is recorded based on their grant-date fair value and is generally recognized on a straight-line basis over the vesting period. Compensation cost for an award with a performance condition is based on the probable outcome of that performance condition. The stated vesting period is considered non-substantive for retirement eligible participants. Accordingly, the Company recognizes any remaining unrecognized compensation expense upon participant reaching retirement eligibility.  

   Stockholders' Equity  
    
      The Company has authorized a single