Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 2

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 2
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 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 nine months ended March
31, 2025, we recorded $0 and $14,000 respectively, of revenue that had been included in deferred revenue in the prior year. During the
three and nine months ended March 31, 2024, we did not record any revenue that had been included in deferred revenue in the prior year.
The revenue recognized from the contract liabilities consisted of satisfying our performance obligations during the normal course of business.

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

     Schedule of contract assets and liability 

    As
                                            of and for the  Three
                                            Months Ended March 31,  
    As
                                            of and for the Nine
                                            Months Ended March 31, 

    2025  
    2024  
    2025  
    2024 
  
    Contract assets beginning balance	 
    $152  
    $412  
    $262  
    $494 
  
         Expenses incurred during the year	 
     70  
    106  
    159  
    376 
  
         Amounts reclassified to cost of sales	 
     (81) 
     (179) 
     (274) 
     (505)
  
         Amounts allocated to discounts for standalone selling price	 
     —  
     (8) 
     (6) 
     (34)
  
    Contract assets ending balance 	 
    $141  
    $331  
    $141  
    $331 

    As
                                            of and for the  Three
                                            Months Ended March 31,  
    As
                                            of and for the Nine
                                            Months Ended March 31, 

    2025