Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 31

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 31
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are designed to do, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

25 

PART II — OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

See
Note 14 to condensed consolidated financial statements contained elsewhere in this report.

ITEM 1A.RISK FACTORS

Our
business, future financial condition, and results of operations are subject to a number of factors, risks, and uncertainties, which are
disclosed in Item 1A, entitled “Risk Factors,” in Part I of our Annual Report on Form 10-K for our fiscal year ended June
30, 2025, as well as any amendments thereto or additions and changes thereto contained in this quarterly report on Form 10-Q for the
quarter ended September 30, 2025. Additional information regarding some of those risks and uncertainties is contained in the notes to
the condensed consolidated financial statements included elsewhere in this report and in Part I, Item 2, of this report entitled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.” The risks and uncertainties disclosed in our Form 10-K,
our quarterly reports on Form 10-Q, and other reports filed with the SEC are not necessarily all of the risks and uncertainties that
may affect our business, financial condition, and results of operations in the future. There have been no material changes to the risk
factors as disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, except those set forth below.

Artificial
intelligence (“AI”) may be generating information that is used incorrectly and may lead to an adverse effect on our business.

In
August 2025, a law firm that practices securities litigation posted a press release and had a link on its website inviting our shareholders
to request an investigation into Pro-Dex. The press release erroneously attributed a Form 8-K that we had filed nearly two years earlier,
as well as other stale information, to a 20 percent decline in our stock price that occurred in August 2025. This law firm quickly removed
these items from the internet, including