Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 32

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 32
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 or all of our investment portfolio or borrow further against our $11.0 million Amended Revolving
Loan with MBT (see Note 11 to condensed consolidated financial statements contained elsewhere in this report), which we amended in April
2025 in order to provide us additional borrowing capacity.

We are focused on preserving
our cash balances by monitoring expenses, identifying cost savings, and investing only in those development programs and products that
we believe will most likely contribute to our profitability. As we execute our current strategy, however, we may require debt and/or
equity capital to fund our working capital needs and requirements for capital equipment to support our manufacturing and inspection processes.
In particular, we have experienced negative operating cash flow in the past, especially as we procure long-lead time materials to satisfy
our backlog, which can be subject to extensive variability. 

24 

Investment Strategy

We invest surplus cash from time
to time through our Investment Committee, which is comprised of one management director, Richard Van Kirk, and two non-management directors,
Raymond Cabillot and Nicholas Swenson, who chairs the committee. Both Messrs. Cabillot and Swenson are active investors with extensive
portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment
of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that
either Messrs. Cabillot or Swenson or both may own from time to time either individually or through the investment funds that they manage,
or other companies whose boards they sit on. The Investment Committee approved each of the investments comprising the $5.5 million of
marketable public equity securities held at March 31, 2025.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES
                                            ABOUT MARKET RISK

Not
applicable.

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls
and Procedures

Our
Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our
principal financial officer and principal accounting officer) have concluded based on their evaluation as of March 31, 2025, that our
“disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934,
as amended (“Exchange Act”)) are not effective due to a material weakness. The term “disclosure
controls and procedures,” as