Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 28

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 28
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Operating Activities

Net cash provided by operating
activities during the three months ended September 30, 2025 totaled $2.3 million. Our net income was $4.7 million, which includes $3.3
million of unrealized gains, primarily related to our investment in Monogram, which is more fully described in Note 4 to the condensed
consolidated financial statements contained elsewhere in this report as well as non-cash depreciation and amortization and stock-based
compensation in the amount of $311,000 and $161,000, respectively. Proceeds of cash arose from income taxes of $1.5 million due to tax
expense incurred in the first quarter of fiscal 2026 having been previously paid and a decrease in inventory of $649,000. Offsetting these
inflows of cash, our accounts receivable increased by $1.8 million due to an increase in revenue in the first quarter of fiscal 2026.

Net cash provided by operating
activities during the three months ended September 30, 2024, totaled $1.9 million. Our net income was $2.5 million, which includes $433,000
of unrealized gains on our marketable securities as well as non-cash depreciation and amortization and stock-based compensation in the
amount of $302,000 and $113,000, respectively. Additionally, our inventory and income taxes payable increased by $1.3 million and $209,000,
respectively. Offsetting these outflows of cash, our accounts receivable decreased by $428,000 and accounts payable and accrued expenses
increased by $579,000.

Investing Activities

Net cash used in investing
activities for the three months ended September 30, 2025, and 2024 was $98,000 and $431,000, respectively, related to the purchase of
equipment and improvements.

Financing Activities

Net cash used in financing
activities for the three months ended September 30, 2025, included net principal payments of $2.2 million on our loans from UMB (formerly
MBT).

Net cash used in financing
activities for the three months ended September 30, 2024, included the repurchase of $2.3 million of common stock pursuant to our share
repurchase program, and proceeds of $5.0 million from a new term loan from UMB, offset by principal payments totaling $3.4 million. Additionally,
we paid $