Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 1

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 1
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 fiscal
years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is
permitted. Although our business, as currently operated, has only one segment, we are evaluating the new disclosure requirements to ensure
compliance.  

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 that
appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries.

In
August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000
square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired in November 2020, to allow
for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company and PDEX
Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations.

    6 
    PRO-DEX, INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

NOTE 3. NET SALES

The following table presents
the disaggregation of net sales by revenue recognition model (in thousands): 

    Schedule of disaggregation of net sales 

    Three
    Months Ended December 31,  
    Six Months
    Ended December 31, 

    2024  
    2023  
    2024  
    2023 
  
    Net Sales: 

    Over-time revenue recognition	 
    $41  
    $338  
    $89  
    $528 
  
    Point-in-time revenue recognition	 
     16,752  
     12,250  
     31,597  
     23,998 
  
    Total net sales	 
    $16,793  
    $12,588  
    $31,686  
    $24,526 

The timing of revenue recognition, billings, and cash collections
results in billed