Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 30

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 30
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31, 2025 and 2024 was 26% and
23%, respectively, and is less than our combined expected federal and applicable state corporate income tax rates due to a tax benefit
recognized as a result of common stock awarded to employees under previously granted performance awards in the first quarter of fiscal
2025 as described more fully in Note 9 to the condensed consolidated financial statements contained elsewhere in this report, and to the
release of a valuation allowance in the prior fiscal year related to previously recognized unrealized losses on investments.

Liquidity and Capital
Resources

Cash and cash equivalents
at March 31, 2025, increased $1.9 million to $4.5 million as compared to $2.6 million at June 30, 2024. The following table includes
a summary of our condensed statements of cash flows contained elsewhere in this report.

    As of
    and For the Nine Months Ended March 31, 

    2025  
    2024 

    (in thousands) 
  
    Cash provided by (used in): 

    Operating activities 
    $(1,509) 
    $5,179 
  
    Investing activities 
    $754  
    $(2,126)
  
    Financing activities 
    $2,597  
    $(2,770)

    Cash and Working Capital: 

    Cash and cash equivalents 
    $4,473  
    $3,219 
  
    Working capital 
    $31,626  
    $25,538 

23 

Operating Activities

Net cash used in
operating activities was $1.5 million for the nine months ended March 31, 2025, primarily due to net income of $7.8 million including
realized gains on the sale of investments in the amount of $595,000 offset by an $8.2 million increase in inventory and a $2.0 million
increase in receivables. Offsetting these uses of cash, accounts payable and accrued expenses increased by $1.6 million. The increases
in these balance sheet accounts reflect our continued and expected future revenue growth.

Net cash provided
by operating activities was $5.2 million for the nine months ended March 31, 2024, primarily due to net income of $540,000, non-cash unrealized
losses on marketable equity investments of $3.8 million, depreciation and amortization of $854,