Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 5

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 5
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 Land	 
    $3,684  
    $3,684 
  
    Building	 
     2,815  
     2,815 
  
    Total	 
     6,499  
     6,499 
  
    Less: accumulated depreciation	 
     (391) 
     (344)

    $6,108  
    $6,155 

In
November 2020, we acquired the Franklin Property for a total purchase price of $6.5 million, of which we paid $1.3 million in cash and
the balance of $5.2 million we financed (the “Property Loan”) through Minnesota Bank & Trust (“MBT”) (see
Note 10) and we substantially completed the build-out of the property in the first quarter of fiscal 2022. We began operations in the
new facility during the fourth quarter of fiscal 2023. The building is being amortized on a straight-line basis over a period of 30 years.

Intangibles

Intangibles
consist of the following (in thousands): 

    Schedule of intangibles  

    December
    31, 2024  
    June 30,
    2024 
  
    Patent-related costs	 
    $208  
    $208 
  
           Less: accumulated amortization	 
     (168) 
     (154)

    $40  
    $54 

Patent-related
costs consist of legal fees incurred in connection with both patent applications and a patent issuance and will be amortized over the
estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies
the issuance of the patent. Future amortization expense is expected to be $14,000 for the remainder of fiscal 2025 and $26,000 in fiscal
2026, at which time we expect these costs will be fully amortized. 

NOTE 5. WARRANTY

Our
warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in
accrued liabilities in the accompanying condensed consolidated balance sheets. As of December 31, 2024 and June 30, 2024, the warranty
reserve amounted to $312,000 and $277,000, respectively. Warranty expenses are included in cost of sales in the accompanying condensed
consolidated