Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
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Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
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(UNAUDITED)

NOTE 1. BASIS OF PRESENTATION

The
accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,”
“Pro-Dex,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in
the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-K.
Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These
financial statements should be read in conjunction with the financial statements presented in our Annual Report on Form 10-K for the
fiscal year ended June 30, 2025. In the opinion of management, all adjustments considered necessary for a fair presentation have been
included and consist of a normal recurring nature. The results of operations for such interim periods are not necessarily indicative
of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto
included in our Annual Report on Form 10-K for the year ended June 30, 2025.

Recently Issued and Not Yet Adopted Accounting
Pronouncements

In
November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2024-03, Disaggregation of Income Statement Expenses. The ASU’s purpose is to improve disclosures about a public
business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including
purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such
as cost of sales, selling, general and administrative, and research and development). This ASU is effective for fiscal years beginning
after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently
evaluating these new expanded disclosure requirements, but this standard will not impact our results of operations or financial position.

NOTE 2. DESCRIPTION OF BUSINESS

We specialize in the design,
development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily
in the orthopedic, thoracic, and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing
solutions which