Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 7

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 7
---
warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included
in accrued expenses in the accompanying condensed consolidated balance sheets. As of September 30, 2025 and June 30, 2025, the warranty
reserve amounted to $379,000 and $357,000, respectively. Warranty expenses are included in cost of sales in the accompanying condensed
consolidated statements of operations. Changes in estimates to previously established warranty accruals result from current period updates
to assumptions regarding repair costs and warranty return rates and are included in current period warranty expense.

    10 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

Information
regarding the accrual for warranty costs for the three months ended September 30, 2025 and 2024 are as follows (in thousands):

    Schedule of accrual warranty costs 

    As of
    and for the Three Months Ended September 30, 

    2025  
    2024 
  
    Beginning balance	 
    $357  
    $277 
  
    Accruals during the period	 
     84  
     90 
  
    Changes in estimates of prior period warranty accruals	 
     (28) 
     (18)
  
    Warranty amortization/utilization	 
     (34) 
     (49)
  
    Ending balance	 
    $379  
    $300 

NOTE 7. NET INCOME PER SHARE

We
calculate basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the reporting
period. Diluted income per share reflects the effects of potentially dilutive securities, which consist entirely of outstanding stock
options, restricted shares and performance awards.

The
following table presents reconciliations of the numerators and denominators of the basic and diluted income per share computations. In
the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share
amounts): 

    Schedule of net income per share 

    Three
    Months Ended September 30, 

    2025  
    2024 
  
    Basic: 

    Net income	 
    $4,680  
    $2,466 
  
    Weighted-average shares outstanding