Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 11

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 11
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 common stock in the form of incentive stock options, nonstatutory stock options,
stock appreciation rights, restricted shares, restricted stock units, performance awards, and other stock-based awards. As of March 31,
2025, performance awards for 200,000 shares of common stock, non-qualified stock options for 372,000 shares of common stock, and 18,000
restricted shares of common stock have been granted under the 2016 Equity Incentive Plan.

    12 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

Performance Awards

In October 2023, the Compensation
Committee reallocated previously forfeited performance awards for 15,200 shares of common stock, having the same remaining terms and conditions,
to other employees. The weighted average fair value of the performance awards reallocated in 2023 was $10.17, calculated using the weighted
average fair market value for each award, using a Monte Carlo simulation. During the three months ended March 31, 2025 and 2024, we recorded
share-based compensation expense of $7,000 and $31,000, respectively, related to outstanding performance awards. During the nine months
ended March 31, 2025 and 2024, we recorded share-based compensation expense of $20,000 and $76,000, respectively, related to outstanding
performance awards. On March 31, 2025, there was approximately $34,000 of unrecognized compensation cost related to non-vested performance
awards expected to be expensed over the weighted-average period of 1.27 years.

On July 1, 2024, it was
determined by the Compensation Committee that the vesting of performance awards for 40,000 shares of common stock had been achieved. Each
participant elected a net issuance to cover their individual withholding taxes and, therefore, we issued participants 25,134 shares of
common stock and paid $273,000 of participant-related payroll tax liabilities.

Non-Qualified Stock Options

In December 2020, the Compensation
Committee of our Board of Directors granted 310,000 non-qualified stock options to our directors and certain employees under the 2016
Equity Incentive Plan. The vesting of these stock options is tied to the completion of service periods that range from 18 months to 10.5
years from