Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 27

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 27
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of sustaining engineering activities include, but are not limited to, end-of-life component replacement, especially in electronic components
found in our printed circuit board assemblies, analysis of customer complaint data to improve process and design, replacement and enhancement
of tooling and fixtures used in the machine shop, assembly operations, and inspection areas to improve efficiency and through-put.

Other Income (Expense), Net

Interest and Dividend Income

The
interest and dividend income recorded during the three months ended September 30, 2025 and 2024, consists primarily of interest and dividends
from our investments and money market accounts.

Unrealized Gain on Investments

The
unrealized gain on marketable securities for the quarters ended September 30, 2025 and 2024, relates to our portfolio of investments
described more fully in Note 4 to the condensed consolidated financial statements contained elsewhere in this report.

Interest Expense

The
interest expense recorded during the three months ended September 30, 2025 and 2024, relates to our UMB Bank (“UMB”) loans
described more fully in Note 11 to the condensed consolidated financial statements contained elsewhere in this report.

Income Tax Expense

The effective tax rate for
the three months ended September 30, 2025 and 2024, was 25% and 26%, respectively, and is slightly less than our combined expected federal
and applicable state corporate income tax rates due primarily to federal and state research credits.

22 

Liquidity and Capital Resources

Cash and cash equivalents
at September 30, 2025, increased $95,000 to $514,000 as compared to $419,000 million at June 30, 2025. The following table includes a
summary of our condensed consolidated statements of cash flows contained elsewhere in this report.

    As of
    and For the Three Months Ended September 30, 

    2025  
    2024 

    (in thousands) 
  
    Cash provided by (used in): 

    Operating activities 
    $2,310  
    $1,887 
  
    Investing activities 
    $(98) 
    $(431)
  
    Financing activities 
    $(2,117) 
    $(1,006)

    Cash and working capital: 

    Cash and cash equivalents	 
    $514  
    $3,081 
  
    Working capital	 
    $37,121  
    $27,