Company: KEQU
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0000055529-25-000054
Chunk: 57

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-12-12
Form: 10-Q
Item: Part I, Item 8
Chunk 57
---
 total number of shares reserved for issuance under the Company's equity compensation plans by 310,000, for a total of 374,633 shares initially reserved for issuance under the 2023 Plan. At October 31, 2025, there were 290,636 shares available for future issuance under the 2023 Plan.In June 2025, the Company granted 72,728 RSUs under the 2023 Plan. These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense of $454,000 and $885,000 during the three and six months ended October 31, 2025, respectively, with the remaining estimated stock-based compensation expense of $3,290,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense of $373,000 and $691,000 during the three and six months ended October 31, 2024, respectively. Director's fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $218,000 for the six months ended October 31, 2025, of which $197,000 was included in stock-based compensation.

N. Income Taxes

Income tax expense of $915,000 and $1,676,000 was recorded for the three and six months ended October 31, 2025, respectively. Income tax expense of $916,000 and $1,108,000 was recorded for the three and six months ended October 31, 2024, respectively. The effective tax rate was 26.5% and 22.7% for the three and six months ended October 31, 2025, respectively. The effective tax rate was 23.3%  and 17.4% for the three and six months ended October 31, 2024, respectively. The effective tax rate for the current three-month period reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations. In addition, the income tax expense recorded for the six months ended October 31, 2025 was favorably impacted by a discrete