Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 5

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 5
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 Inc. Our Chairman, one of the two Board members aforementioned, also serves as
the Chief Executive Officer and Chairman of Air T, Inc. Another of our Board members is employed by Air T, Inc. as its Chief of Staff.
The shares were purchased through 10b5-1 Plans, that, in accordance with our internal policies regarding the approval of related-party
transactions, were approved by our then three Board members that are not affiliated with Air T, Inc.

On
October 7, 2025, Zimmer Biomet announced that it had completed its acquisition of Monogram and soon after the announcement we received
$4.04 per share in cash for each of the 2,212,378 common shares we owned of Monogram prior to the close of the acquisition, for total
proceeds of $8.9 million. Accordingly, in our second quarter of fiscal 2026, we will record a realized gain in the amount of $6.8 million.
In addition, we received 2,212,378 non-tradeable contingent value rights (“CVR’s”) payable in cash if Monogram completes
five milestones related to proof-of concept, FDA 510(k) approval, and specific revenue milestones. The CVR payments, if made, range in
value from $1.04 to $3.43 per CVR for a total amount of $12.37 should all milestones be attained. There is no guarantee or assurance
that any milestones will be achieved. As disclosed previously, in conjunction with making our original investment in Monogram during
fiscal 2017, we were granted the exclusive right to develop, engineer, manufacture and supply certain products on its behalf. Those rights
were transferred to Zimmer Biomet and remain in effect post-acquisition. We made this investment in the hope that it could generate meaningful
additional revenue which has yet to occur but may be more likely to occur in the future because Zimmer Biomet has more financial resources
to assist with commercialization of Monogram’s products. However, there is no guarantee or assurance as to the amount of revenue,
if any, that we may ultimately recognize from our exclusive right to develop, engineer, manufacture and supply certain products for Monogram.

We
invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk,
and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Messrs. Cabillot and