Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
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Company: PRO DEX INC
Filing Date: 2025-05-01
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 the instructions to Form 10-Q and applicable provisions of 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, 2024. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. 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, 2024.

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 the 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, SG&A, 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.

In
December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures (Topic 740). ASU 2023-09 expands
the existing rules on income tax disclosures. This update requires entities to disclose specific categories in the tax rate reconciliation,
provide additional information for reconciling items that meet a quantitative threshold and disclose additional information about