Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 11

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 11
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 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 months ended September 30, 2025, we recorded $43,000
of compensation expense related to these restricted shares. As of September 30, 2025, there was approximately $710,000 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”). 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 either the beginning or end of the purchase period, whichever is lower. Our Board of Directors also
approved the provision that shares formerly reserved for issuance under former stock option plans in excess of shares issuable pursuant
to outstanding options, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. The ESPP was approved by our shareholders
at our 2014 Annual Meeting.

In October 2023, our Board
approved an amendment to the ESPP (the “ESPP Amendment”), which extended the term of the ESPP for an additional ten years
from January 2025 to January 2035. The ESPP Amendment was approved by our shareholders at our 2023 Annual Meeting. In July 2025, the Compensation
Committee of our Board of Directors amended the specific provisions of the ESPP to provide for a more favorable discount calculation for
employees participating in the ESPP, as described above.

During the three months ended
September 30, 2025 and 2024, 961 and 940 shares were purchased, respectively, under the ESPP and allocated to employees based upon their
contributions at discount prices of $42.34 and $16.22, respectively, per share. As of September 30, 2025, on a cumulative basis, since
the inception of the ESPP, employees have purchased