Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 29

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 29
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 our working
capital was $27.2 million. We currently believe that our existing accounts receivable balances and cash flows from operations will provide
us sufficient funds to satisfy our cash requirements as our business is currently conducted for at least the next 12 months. While
our December 31, 2024, cash balance was only $66,000, it was caused largely by a $2.1 million delay in receivable collections from our
largest customer, which has since been received. Our working capital may also be supplemented by liquidating some of our marketable equity
investments, which had an estimated fair market value of $6.3 million as of December 31, 2024.

We are focused on maximizing our
working capital 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 on 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, assembly, 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. We believe that if we need to raise additional capital to fund
our operations, we can do so by borrowing against our $7.0 million Amended Revolving Loan with MBT, which had an available balance of
$3.5 million at December 31, 2024 (see Note 10 to the condensed consolidated financial statements contained elsewhere in this report).

22 

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 $6.3 million of
marketable public equity securities