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

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 10
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 of common stock, non-qualified stock options for 372,000 shares of common
stock and 18,000 restricted shares of common stock have been granted under the 2016 Equity Incentive Plan.

Performance Awards

We have recorded share-based
compensation expense of $7,000 for the three months ended September 30, 2025 and 2024, related to our outstanding unvested performance
awards. On September 30, 2025, there was approximately $21,000 of unrecognized compensation cost related to these non-vested performance
awards, which is expected to be expensed over the weighted-average period of nine 9 months.

On July 1, 2024, it was determined
by the Compensation Committee of our Board of Directors that the vesting of performance awards for 40,000 shares of common stock had been
achieved. Each participant elected a net issuance to cover their individual withholding taxes and therefore we issued 25,134 shares and
paid $273,000 of participant-related payroll tax liabilities.

Non-Qualified Stock Options

In December 2020, the Compensation
Committee of our Board of Directors granted 310,000 non-qualified stock options to our directors and certain employees under the 2016
Equity Incentive Plan. The vesting of these stock options was tied to the completion of service periods that ranged from 18 months to
10.5 years from inception and the achievement of our common stock trading at certain pre-determined prices. We recorded compensation expense
of $104,000 for both the three months ended September 30, 2025 and 2024, related to these stock options. The weighted-average fair value
of the stock option awards granted was $16.72, calculated using a Monte Carlo simulation. As of September 30, 2025, 26,250 of these stock
options have vested, 126,250 have been forfeited either due to termination or our stock price not attaining the pre-determined price,
and 157,500 remain outstanding and unvested and there was approximately $1.0 million of unrecognized compensation cost related to the
non-vested stock options.

    12 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

Restricted Shares

In November 2024, the Compensation
Committee awarded 18,000 restricted