Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 29

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 29
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273,000 of employee payroll taxes related to the award of 40,000 shares of common stock to employees under previously granted
performance awards.

23 

Financing Facilities & Liquidity Requirements for the Next
Twelve Months

As of September 30, 2025,
our working capital was $37.1 million. We currently believe that our existing cash and cash equivalent balances together with our
accounts receivable balances will provide us sufficient funds to satisfy our cash requirements as our business is currently conducted
for at least the next 12 months. In addition, we expect to derive a portion of our liquidity from our cash flows from operations
and, as described in Note 4 to the condensed consolidated financial statements contained elsewhere in this report, we received $8.9 million
in cash in October 2025 upon the consummation of Zimmer Biomet’s acquisition of Monogram.

We are focused on preserving
our cash balances by monitoring expenses, identifying cost savings, and investing only in those development programs and products that
we believe will most likely contribute to our profitability. As we execute on our current strategy, however, we may require debt and/or
equity capital to fund our working capital needs and requirements for capital equipment to support our manufacturing and inspection processes.
In particular, we have experienced negative operating cash flow in the past, especially as we procure long-lead time materials to satisfy
our backlog, which can be subject to extensive variability. We believe that if we need additional capital to fund our operations, we can
borrow against our revolving loan with UMB which has an available balance of $8.8 million as of September 30, 2025.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not
applicable.

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls
and Procedures

Our
Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our principal
financial officer and principal accounting officer) conducted an evaluation of the design and operation of our “disclosure controls
and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange
Act”)). The term “disclosure controls and procedures,” as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act means controls and other procedures
of a company that