Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 8

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 8
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 for the remainder of fiscal 2025 and $26,000 during fiscal 2026, at which time we expect these costs to be fully
amortized.

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

NOTE 6. WARRANTY

The
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 March 31, 2025 and June 30, 2024, the warranty reserve
amounted to $326,000 and $277,000, respectively. Warranty expenses are included in cost of sales in the accompanying condensed consolidated
income statements. 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.

Information regarding the accrual
for warranty costs for the three and nine months ended March 31, 2025 and 2024, are as follows (in thousands):

     Schedule of accrual warranty costs 

    As of
    and for the Three Months Ended March 31, 

    2025  
    2024 
  
    Beginning balance	 
    $312  
    $194 
  
    Accruals during the period	 
     51  
     102 
  
    Changes in estimates of prior period warranty accruals	 
     11  
     — 
  
    Warranty amortization and utilization	 
     (48) 
     (23)
  
    Ending balance	 
    $326  
    $273 

    As of
    and for the Nine Months Ended March 31, 

    2025  
    2024 
  
    Beginning balance	 
    $277  
    $200 
  
    Accruals during the period	 
     189  
     155 
  
    Changes in estimates of prior period warranty accruals	 
     (14) 
     7 
  
    Warranty amortization and utilization	 
     (126) 
     (89)
  
    Ending balance	 
    $326  
    $273 

NOTE 7. NET INCOME PER SHARE

We calculate basic net
income per share by dividing net