Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 28

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 28
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Net cash provided
by operating activities was $1.1 million for the six months ended December 31, 2023, primarily due to our net loss of $115,000 offset
by non-cash stock-based compensation, depreciation and amortization, and unrealized losses on marketable equity investments of $386,000,
$568,000, and $2.6 million, respectively. Although we experienced an influx of cash in the amount of $1.1 million due to a reduction in
our inventory balance during the six months ended December 31, 2023, our accounts receivable balance increased by $3.2 million due to
timing of customer payments.

Investing Activities

Net cash used in investing
activities for the six months ended December 31, 2024 was $973,000 and related mostly to equipment purchases for our machine shop, assembly,
and inspection.

Net cash used in investing
activities for the six months ended December 31, 2023, was $2.0 million and related to the exercise of our Monogram Warrant for cash in
the amount of $1,250,000 (see Note 4 to the condensed consolidated financial statements contained elsewhere in this report) as well as
equipment and improvements purchases in the amount of $759,000.

Financing Activities

Net cash provided by financing
activities for the six months ended December 31, 2024, included net borrowings on loans from MBT in the amount of $4.5 million primarily
related to the Term Loan C described in Note 10 the condensed consolidated financial statements contained elsewhere in this report, offset
by the repurchase of $3.5 million of our common stock pursuant to our share repurchase program, as well as $305,000 of employee payroll
taxes related to shares of common stock issued to employees under previously granted performance awards and nonqualified stock options.

Net cash used in financing
activities for the six months ended December 31, 2023, totaled $740,000 and related primarily to the net principal payments of $665,000
on our loans from MBT more fully described in Note 10 to the condensed consolidated financial statements contained elsewhere in this report,
as well as repurchase of 6,285 shares of our common stock pursuant to our share repurchase program in the amount of $107,000.

Financing Facilities & Liquidity Requirements for the Next
Twelve Months

As of December 31, 2024,