Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 26

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 26
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2,258  
     12% 
    $2,137  
     14% 
     6%

21 

Selling
expenses consist of salaries and other personnel-related expenses in support of business development, as well as trade show attendance,
advertising and marketing expenses, and travel and related costs incurred in generating and maintaining our customer relationships. Selling
expenses for the three months ended September 30, 2025, increased $25,000, or 52%, compared to the corresponding period of the prior
fiscal year. The increase relates to personnel costs related to our former Director of Business Development hired in the second quarter
of the prior fiscal year whose employment with us ended in the second quarter of fiscal 2026.

General
and administrative expenses (“G&A”) consist of salaries and other personnel-related expenses of our accounting, finance,
facilities, information technology and human resources personnel, as well as costs for outsourced information technology services, professional
fees, directors’ fees, and other costs and expenses attributable to being a public company. G&A expenses increased by $171,000,
or 14%, for the three months ended September 30, 2025, when compared to the corresponding period of the prior fiscal year. The increase
in total G&A expenses relates to higher payroll and personnel expenses due to new hires in human resources, information technology
and facilities.

Research
and development costs generally consist of compensation and other personnel-related costs of our engineering and support personnel, related
professional and consulting fees, patent-related fees, lab costs, materials, and travel and related costs incurred in the development
and support of our products. Research and development costs decreased $75,000, or 9%, for the three months ended September 30, 2025 compared
to the corresponding period of the prior fiscal year. The decrease is due primarily to a decrease in internal project spending and a
reduction in recruiting fees, partially offset by an increase in personnel expenses. Although internal project spending is lower in the
first quarter of fiscal 2026 compared to the same period in fiscal 2025, we expect to release an internally developed project, our Helios
branded CMF driver, for production in the second quarter of fiscal 2026.

The
majority of our research and development costs relate to sustaining activities related to products we currently manufacture and sell.
As we introduce new products into the market, we expect to see an increase in sustaining and other engineering expenses. Typical examples