Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 2

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 2
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 accounts receivables, unbilled receivables (presented as deferred costs on our condensed consolidated balance sheets),
and customer advances and deposits (presented as deferred revenue on our condensed consolidated balance sheets), where applicable. Amounts
are generally billed as work progresses in accordance with agreed upon milestones. The over-time revenue recognition model consists of
non-recurring engineering (“NRE”) and prototype services and typically relates to NRE services related to the evaluation,
design, or customization of a medical device and is typically recognized over time utilizing an input measure of progress based on costs
incurred compared to the estimated total costs upon completion. During the three and six months ended December 31, 2024 we recorded $0
and $14,000, respectively, of revenue that had been included in deferred revenue in the prior year. During the three and six months ended
December 31, 2023, we did not record any revenue that had been included in deferred revenue in the prior year. The revenue recognized
from contract liabilities consisted of satisfying our performance obligations during the normal course of business. As of December 31,
2024 and 2023, we did not have any deferred revenue.

The following tables summarize our contract
assets (in thousands):

    Schedule of contract assets and liability 

    As
                                            of and for the  Three
                                            Months Ended December 31,  
    As
                                            of and for the Six
                                            Months Ended December 31, 

    2024  
    2023  
    2024  
    2023 
  
    Contract assets beginning balance	 
    $211  
    $591  
    $262  
    $494 
  
         Expenses incurred during the year	 
     40  
    $107  
    $97  
    $326 
  
         Amounts reclassified to cost of sales	 
     (99) 
     (277) 
     (201) 
     (382)
  
         Amounts
    allocated to discounts for standalone selling price	 
     —  
     (9) 
     (6) 
     (26)
  
    Contract assets ending balance 	 
    $152  
    $412  
    $152  
    $412 

    7 
    PRO-DEX, INC. AND SUBSIDIARYNOTES TO CONDENSED CONS