Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 9

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 9
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 up to 1,500,000 shares of our common stock in the form of incentive stock options, nonstatutory stock options,
stock appreciation rights, restricted shares, restricted stock units, performance awards, and other stock-based awards. As of December
31, 2024, performance awards for 200,000 shares of common stock, non-qualified stock options for 372,000 shares of common stock, and 18,000
restricted shares of common stock have been granted under the 2016 Equity Incentive Plan.

Performance Awards

In October 2023, the Compensation
Committee of our Board (the “Compensation Committee”) reallocated previously forfeited performance awards for 15,200 shares
of common stock, having the same remaining terms and conditions as the forfeited awards, to other employees. The weighted average fair
value of the performance awards reallocated in 2023 was $10.17, calculated using the weighted average fair market value for each award,
using a Monte Carlo simulation. During the three months ended December 31, 2024, and 2023, we recorded share-based compensation expense
of $7,000 and $30,000, respectively, related to outstanding performance awards. During the six months ended December 31, 2024, and 2023,
we recorded share-based compensation expense of $14,000 and $45,000, respectively, related to outstanding performance awards. On December
31, 2024, there was approximately $41,000 of unrecognized compensation cost related to non-vested performance awards, which is expected
to be expensed over a weighted-average period of 1.50 years.

On July 1, 2024, it was
determined by the Compensation Committee that the vesting of performance awards for 40,000 shares of common stock had been achieved. Each
participant elected a net issuance to cover their individual withholding taxes and, therefore, we issued participants 25,134 shares of
common stock and paid $273,000 of participant-related payroll tax liabilities.

    11 
    PRO-DEX, INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

Non-Qualified Stock Options

In December 2020, the Compensation
Committee granted non-qualified stock options for 310,000 shares of common stock to our directors and certain employees under the 2016
Equity Incentive