Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 12

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 12
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 the date of grant and the achievement of our common stock trading at certain pre-determined prices. The weighted average fair
value of the stock options granted was $16.72, calculated using a Monte Carlo simulation. In December 2021, the Compensation Committee
reallocated 5,000 previously forfeited non-qualified stock options, having the same remaining terms and conditions, to another employee
at a weighted average fair value of $6.69 calculated using a Monte Carlo simulation. During the three months ended March 31, 2025 and
2024, we recorded compensation expense of $104,000 and $168,000, respectively, related to these stock options. During the nine months
ended March 31, 2025 and 2024, we recorded compensation expense of $312,000 and $503,000, respectively, related to these stock options.
As of March 31, 2025, 26,250 of these stock options have vested and there was approximately $1.2 million of unrecognized compensation
cost related to the non-vested non-qualified stock options.

Restricted Shares

In November 2024, the Compensation
Committee awarded 18,000 restricted shares of common stock to our directors and certain employees under the 2016 Equity Incentive Plan.
The shares vest ratably over five years from the date of grant. The fair value of the restricted shares on the date of grant was $857,000,
based upon the closing price of our common stock on the date of grant. During the three and nine months ended March 31, 2025, we recorded
$43,000 and $62,000, respectively, of compensation expense related to these restricted shares. As of March 31, 2025, there was approximately
$795,000 of unrecognized compensation cost related to these restricted shares.

Employee Stock Purchase Plan

In September 2014, our Board
approved the establishment of an Employee Stock Purchase Plan (the “ESPP”), which was approved by our shareholders at our
2014 Annual Meeting. The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase
periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase
price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. Our Board