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

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 10
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 Plan. The vesting of these stock options is tied to the completion of service periods that range from 18 months to 10.5
years from the date of grant and the achievement of our common stock trading at certain pre-determined prices. The weighted average fair
value of the stock option awards granted in fiscal 2021 was $16.72, calculated using a Monte Carlo simulation. During the three months
ended December 31, 2024 and 2023, we recorded compensation expense of $104,000 and $168,000, respectively, related to these options. During
the six months ended December 31, 2024 and 2023, we recorded compensation expense of $208,000 and $335,000, respectively, related to these
options. As of December 31, 2024, none of these stock options had vested and there was approximately $1.4 million of unrecognized compensation
cost related to these stock options.

Restricted Shares

In November 2024, the Compensation
Committee awarded 18,000 restricted 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 December 31, 2024, we recorded $19,000
of compensation expense related to these restricted shares. As of December 31, 2024, there was approximately $838,000 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”) and reserved 704,715 shares of our common stock
for issuance pursuant to 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 the end of the purchase period.
The ESPP was approved by our shareholders at our 2014 Annual Meeting. An amendment to the ESPP to extend its term for an additional ten
years (through