Sales Performance - Medical device product sales decreased by $4.1 million, or 39%, for the three months ended March 31, 2022, compared to the same period in the prior fiscal year [100]. - Total net sales for the three months ended March 31, 2022, were $9.265 million, down from $11.739 million in the same period of 2021 [99]. - Revenue from orthopedic medical devices was $3.233 million, representing 50% of total medical device sales for the three months ended March 31, 2022 [100]. - The proportion of medical device products in total sales was 70% for the three months ended March 31, 2022, down from 91% in the same period of 2021 [99]. - Sales of compact pneumatic air motors increased by $113,000, or 54%, for the three months ended March 31, 2022, compared to the same period in the prior fiscal year [101]. - Dental products and components sales increased by $179,000, or 746%, and $250,000, or 255%, for the three and nine months ended March 31, 2022, respectively, compared to the prior fiscal year [102]. - Repair revenue rose by $858,000, or 106%, and $284,000, or 7%, for the three and nine months ended March 31, 2022, respectively, due to increased repairs of orthopedic handpieces [103]. Financial Outlook - The company anticipates continued revenue growth, although it may not be consistent, with periods of incremental growth expected [95]. - As of March 31, 2022, the company had a backlog of approximately $21.2 million, with $7.9 million scheduled for delivery in the fourth quarter of fiscal 2022 [104]. Cost and Expenses - Total cost of sales for the three months ended March 31, 2022, decreased by $947,000, or 13%, compared to the prior fiscal year, driven by a 21% decrease in revenue [106]. - Gross profit decreased by approximately $1.5 million, or 35%, for the three months ended March 31, 2022, consistent with the overall decrease in revenue [107]. - Operating expenses for the three months ended March 31, 2022, decreased by $697,000, or 28%, compared to the corresponding period of the prior fiscal year [110]. - Research and development costs for the three months ended March 31, 2022, decreased by $446,000, primarily due to increased spending on billable development projects [112]. - The company has a product roadmap to develop future products, with research and development costs representing between 36% and 49% of total operating expenses [113]. Cash Flow and Liquidity - Cash and cash equivalents increased by $1.0 million to $4.8 million as of March 31, 2022, compared to $3.7 million at June 30, 2021 [122]. - Net cash provided by operating activities was $4.4 million for the nine months ended March 31, 2022, primarily due to net income of $2.4 million and a decrease in accounts receivable of $2.3 million [124]. - Net cash used in investing activities was $1.6 million for the nine months ended March 31, 2022, primarily for equipment purchases of $1.3 million related to the Franklin Property [126]. - Net cash used in financing activities totaled $1.8 million for the nine months ended March 31, 2022, primarily due to the repurchase of 52,718 shares of common stock for $1.3 million [128]. - Working capital as of March 31, 2022, was $20.4 million, indicating sufficient funds to meet cash requirements for at least the next 12 months [130]. - The company may liquidate investments or borrow against a $2.0 million Revolving Loan to enhance liquidity [130]. - The company experienced negative operating cash flow in the past due to long-lead time materials procurement [131]. Investment Activities - The Investment Committee approved investments totaling $2.9 million in marketable public equity securities as of March 31, 2022 [132].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————— FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended DECEMBER 31, 2021 OR Commission file number: 0-14942 PRO-DEX, INC. (Exact name of registrant as specified in its charter) ——————— (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) COLORADO 84-1261240 2361 McGaw Avenue, Irvine, California 92614 (Addres ...

Financial Performance - Net sales for the three months ended September 30, 2021, were $9,988,000, a 16% increase from $8,590,000 in the same period of 2020[92] - Gross profit decreased to $3,428,000 (34% of net sales) in Q1 2022 from $3,475,000 (40% of net sales) in Q1 2021[92] - Medical device sales increased by $1,544,000 (23%) to $8,284,000 in Q1 2022 compared to $6,740,000 in Q1 2021[94] - Orthopedic sales rose by $2,017,000 (55%) to $5,706,000, while CMF sales increased by $862,000 (57%) to $2,387,000[94] - For the three months ended September 30, 2021, total cost of sales increased by $1.4 million, or 28%, compared to the same period in the prior fiscal year, while gross profit decreased by approximately $47,000, or 1%[99][100] Research and Development - Research and development costs were $980,000 (10% of net sales) in Q1 2022, down from $1,091,000 (13% of net sales) in Q1 2021[92] - Research and development costs for the quarter ended September 30, 2021, totaled $980,000, a decrease of $111,000, or 10%, compared to the prior year[104][107] - The company expects to launch the ENT Shaver and VITAL Ventilator in Q4 2021 and Q1 2022, respectively, with estimated annual revenues of $1 million and $1.5 million[107] Customer and Revenue Agreements - The largest customer has extended the supply agreement for surgical handpieces through calendar 2025, ensuring continued revenue[84] - Non-recurring engineering and prototype revenue surged by 1,860% to $196,000 in Q1 2022, compared to $10,000 in Q1 2021[94] - Repair revenue decreased by $168,000 due to fewer repairs of the orthopedic handpiece sold to the largest customer[96] - Discounts and other increased by $216,000 due to volume rebates negotiated with the largest customer[97] Operational Capacity and Backlog - The company expects to begin operations in a new facility in Tustin, California, during the second quarter, aimed at expanding manufacturing capacity[86] - As of September 30, 2021, the company had a backlog of approximately $12.8 million, with $12.6 million scheduled for delivery during the remainder of fiscal 2022[98] Cash Flow and Financial Position - Cash and cash equivalents increased by $1.5 million to $5.2 million as of September 30, 2021, compared to $3.7 million at June 30, 2021[113] - Net cash provided by operating activities for the three months ended September 30, 2021, totaled $2.7 million, primarily driven by a net income of $1.1 million[115] - The company’s working capital as of September 30, 2021, was $19.8 million, indicating sufficient funds to meet cash requirements for at least the next 12 months[120] Expenses - Selling expenses decreased by $93,000, or 72%, for the three months ended September 30, 2021, primarily due to reduced personnel-related expenses[102] - General and administrative expenses increased by $388,000, or 55%, for the three months ended September 30, 2021, mainly due to non-cash compensation expenses[103] Taxation - The effective tax rate for the three months ended September 30, 2021, was 22%, compared to 20% for the same period in 2020[111]

Financial Performance - Net sales for the fiscal year ended June 30, 2021, increased by $3.2 million, or 9%, to $38.0 million compared to $34.8 million in fiscal 2020[134] - Medical device sales accounted for 85% of total net sales in fiscal 2021, with a 21% increase from $26.6 million in fiscal 2020 to $32.1 million[135] - Sales to the second largest customer increased by $4.2 million to $10.1 million, primarily due to increased sales of the thoracic driver[136] - The company reported a gross profit of $13.6 million, representing 36% of net sales, down from 38% in the previous year[134] - Operating income decreased to $4.5 million, or 12% of net sales, from $7.1 million, or 20% of net sales, in the prior year[134] Research and Development - Research and development costs rose to $4.4 million, or 11% of net sales, compared to $2.3 million, or 7% of net sales, in fiscal 2020[134] - Research and development costs surged by $2.1 million, or 89%, from fiscal 2020 to 2021, totaling $4.38 million[144] - The company recognized an expected loss on product development services of $71,000 in fiscal 2021, compared to $370,000 in fiscal 2020[121] - The proportion of NRE and Prototype services revenue decreased by 61% from $834,000 in fiscal 2020 to $324,000 in fiscal 2021[135] Operating Expenses - Total operating expenses rose to $9.05 million in fiscal 2021, a 49% increase from $6.08 million in fiscal 2020[142] - Cost of sales increased by $2.8 million, or 13%, from fiscal 2020 to 2021, primarily due to a 9% increase in net sales[141] - Repair revenue decreased by approximately $1.4 million, or 22%, to $5.0 million due to reduced repairs of orthopedic handpieces[138] Cash Flow and Financing - Cash used in operating activities during fiscal 2021 was $2.08 million, with a net income of $4.5 million[155] - Cash provided by financing activities totaled $3.1 million in fiscal 2021, including $9.1 million in loans from Minnesota Bank and Trust[159] - The company repurchased 216,171 shares at a cost of $5.5 million during fiscal 2021, compared to 231,274 shares for $3.4 million in fiscal 2020[165] Assets and Liabilities - The company had a backlog of $9.7 million at June 30, 2021, up from $7.0 million at June 30, 2020[139] - As of June 30, 2021, working capital was $19.1 million, indicating sufficient funds for operations for at least the next 12 months[161] - Inventory and warranty charges increased by $372,000 in fiscal 2021 compared to fiscal 2020, reflecting higher volume sales and product development activity[141] - Adoption of ASU 2016-02 (Topic 842) resulted in an increase of approximately $3.3 million in long-term assets and total liabilities as of July 1, 2019[166] Tax and Investment - The effective tax rate decreased from 23% in fiscal 2020 to 21% in fiscal 2021 due to increased research and development credits[153] - The company generated $4.6 million from the sale of marketable equity securities in fiscal 2021, recording a gain of $1.3 million[151] - No new accounting pronouncements are expected to have a material impact on the consolidated financial statements during the fiscal year[167] - The company has established an Investment Committee responsible for implementing investment policies[167]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————— FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-14942 PRO-DEX, INC. (Exact name of registrant as specified in its charter) ——————— COLORADO 84-1261240 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————— FORM 10-Q (Exact name of registrant as specified in its charter) ——————— COLORADO 84-1261240 þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended DECEMBER 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-14942 PRO-DEX, INC. (Sta ...