Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 1

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 1
---
 income
taxes paid on an annual basis. The new disclosure requirements are effective for fiscal years beginning after December 15, 2024. Early
adoption is permitted. We are currently evaluating these new expanded disclosure requirements, but this standard will not impact our results
of operations or financial position.

NOTE 2. DESCRIPTION OF BUSINESS

We specialize in the design, development,
and manufacture of autoclavable, battery-powered, and electric, multi-function surgical drivers and shavers used primarily in the orthopedic,
thoracic, and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions that
appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries.

In
August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000
square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired in November 2020, to allow
for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company and PDEX
Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations.

    6 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

NOTE 3. NET SALES

The following table presents
the disaggregation of net sales by revenue recognition model (in thousands):

    Schedule of disaggregation of net sales  

    Three
    Months Ended March 31,  
    Nine Months
    Ended March 31, 

    2025  
    2024  
    2025  
    2024 
  
    Net Sales: 

    Over-time revenue recognition	 
    $186  
    $234  
    $274  
    $762 
  
    Point-in-time revenue recognition	 
     17,228  
     14,059  
     48,825  
     38,057 
  
    Total net sales	 
    $17,414  
    $14,293  
    $49,099  
    $38,819 

The timing of revenue recognition,
billings, and cash collections results in billed accounts receivables, unbilled