Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 3

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 3
---
2024  
    2025  
    2024 
  
    Contract liabilities
    beginning balance	 
    $—  
    $—  
    $14  
    $— 
  
         Payments
    received from customers	 
     —  
    225  
    —  
    267 
  
         Amounts
    reclassified to revenue	 
     —  
     (190) 
     (14) 
     (232)
  
    Contract
    liabilities ending balance 	 
    $—  
    $35  
    $—  
    $35 

    7 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

NOTE 4. FAIR VALUE MEASUREMENTS

Fair
value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the “exit price”)
in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation
methodologies, including market, income, and cost approaches is permissible. We consider the principal or most advantageous market in
which it would transact and assumptions that market participants would use when pricing the asset or liability.

Fair
Value Hierarchy. The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to
maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of
inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within
the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of a
particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels.

We
have categorized our cash equivalents and investments within the fair value hierarchy as follows:

Level
1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
These Level 1 assets include our money market accounts, which are classified as cash equivalents. We have categorized our cash equivalents
as Level 1 assets as there are quoted prices in active markets for identical assets or liabilities.

Level
2 – applies to assets or liabilities for which there are inputs other than quoted prices