Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 19

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 19
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Business Strategy and Future Plans

Our business today is almost entirely
driven by sales of our medical devices. Many of our significant customers place purchase orders for specific products that were developed
under various development and/or supply agreements. Our customers may request that we design and manufacture a custom surgical device
or they may hire us as a contract manufacturer to manufacture a product of their own design. In either case, we have extensive experience
with autoclavable, battery-powered, and electric, multi-function surgical drivers and shavers. We continue to focus a significant percentage
of our time and resources on providing outstanding products and service to our valued principal customers. During the first quarter of
fiscal 2021, our largest customer executed an amendment to our existing supply agreement such that we shall continue to supply their surgical
handpieces to them through calendar 2025 and we are currently in discussions with them to renew the agreement.

Simultaneously, we are working
to build top-line sales through active proposals of new medical device products with new and existing customers. Our patented adaptive
torque-limiting software has been very well received in the CMF and thoracic markets.

In November 2020, we purchased
an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin
Property”). This building is located approximately four miles from our Irvine, California headquarters and was acquired to provide
us additional capacity for our expected continued future growth, including anticipated expanded capacity for the manufacture of batteries
and new products. We began operations in the new facility during the fourth quarter of fiscal 2023 and believe that the additional capacity
will allow for our continued expected growth.

Our current objectives are focused
primarily on maintaining our relationships with our current medical device customers, investing in research and development activities
to design unique medical devices as well as Pro-Dex branded drivers to leverage our torque-limiting software, expanding our manufacturing
capacity through the continuation of operations at the Franklin Property, and promoting active product development proposals to new and
existing customers for both orthopedic shavers and screw drivers for a multitude of surgical applications, while monitoring closely the
progress of all these individual endeavors. While we expect revenue growth in the future, it may not be a consistent trajectory but rather
periods of incremental growth that current expenditures are helping to create. However, there can be no assurance that we will be successful
in any of these objectives.

17 

Description of Business Operations

Revenue

The
majority of our revenue