Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 1

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 1
---
 appeal to our customers, primarily medical device distributors. Additionally, we provide engineering, quality, and regulatory
consulting services to our customers. We also manufacture and sell rotary air motors to a wide range of industries; however, these motors
comprise a de minimis portion of our business.

In
August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000
square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired on November 6, 2020, in order
to allow for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company
and PDEX Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations.

    6 
    PRO-DEX INC. AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) 

NOTE 3. NET SALES

The
following table presents the disaggregation of net sales by revenue recognition model (in thousands):

    Schedule of disaggregation of net sales 

    Three
    months ended September 30, 

    2025  
    2024 
  
    Net Sales: 

    Over-time revenue recognition	 
    $476  
    $48 
  
    Point-in-time revenue recognition	 
     18,054  
     14,844 
  
    Total net sales	 
    $18,530  
    $14,892 

The
timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented
as deferred costs on our condensed consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on
our condensed consolidated balance sheets), where applicable. Amounts are generally billed as work progresses in accordance with agreed
upon milestones. The over-time revenue recognition model consists of non-recurring engineering (“NRE”) and prototype services
and typically relates to NRE services related to the evaluation, design or customization of a medical device and is typically recognized
over time utilizing an input measure of progress based on costs incurred compared to the estimated total costs upon completion. During
the three months ended September 30, 2025 and 2024, we recorded $80,000 and $14,000 respectively, of revenue that had been