Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 8

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 8
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     3,262  
     3,260 
  
    Basic earnings per share	 
    $1.43  
    $0.76 
  
    Diluted: 

    Net income	 
    $4,680  
    $2,466 
  
    Weighted-average shares outstanding	 
     3,262  
     3,260 
  
    Effect of dilutive securities	 
     77  
     32 
  
    Weighted-average shares used in calculation of diluted earnings per share	 
     3,339  
     3,292 
  
    Diluted earnings per share	 
    $1.40  
    $0.75 

NOTE 8. INCOME TAXES

Deferred
income taxes are provided on a liability method whereby deferred tax assets and liabilities
are recognized for temporary differences. Temporary
differences are the differences between the reported amounts of assets and liabilities and their
tax bases. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more-likely-than-not
that some portion or all of the deferred tax assets will not be realized.
Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and
rates on the date of enactment.

Significant
management judgment is required in determining our provision for income taxes and the recoverability of our
deferred tax assets. Such determination is based primarily on our historical taxable income or loss, with some consideration given to
our estimates of future taxable income or loss
by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable.
Our deferred tax asset is net of a valuation allowance in the gross amount of $90,000 as of September
30, 2025 and June 30, 2025.

    11 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

We
recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of
September 30, 2025 and 2024, we recognized accrued interest of $4,000 and $6,000, respectively, related to unrecognized tax benefits.
Our effective tax rate for the three months ended September 30, 2025 and 2024, is 25% and 26%, respectively, and is slightly less
than our combined