EX-99.1 2 pdex_ex99z1.htm INVESTOR PRESENTATION SLIDESHOW
EXHIBIT 99.1
Investor Presentation Presented by Rick Van Kirk, CEO

Safe Harbor Statement Statements made during Pro-Dex’s presentation and its representative’s answers to questions that refer to Pro-Dex’s estimated or anticipated future results or other non-public historical facts are forward-looking statements, as are any statements its representatives make concerning Pro-Dex’s strategic initiatives, anticipated financial performance and product launches. Attendees are cautioned not to place undue reliance on these forward-looking statements, which reflect Pro-Dex’s current expectations and speak only as of the current date. Actual results may differ materially from Pro-Dex’s current expectations depending upon a number of factors affecting Pro-Dex’s business including, among others, adverse changes in general economic and market conditions, competitive factors, uncertainty of customer acceptance of new product offerings, risks associated with managing the growth of the business and those other risks and uncertainties that are described, from time-to-time, in the “Risk Factors” section of Pro-Dex’s annual and quarterly reports filed with the the Securities and Exchange Commission. Pro-Dex does not undertake any responsibility to revise or update any forward-looking statements made during the presentation. 2

Investment Highlights 3 High-value product pipelineStrong long term relationships with dominant and strategic orthopedic OEMsHigh value intellectual property Increasing margins and considerable operating leverageStable core cash flowManagement team that can execute on new initiatives Pro-Dex is a high-growth innovative technology company with finished device contract manufacturing Transformation of the Pro-Dex legacy business model Bringing innovations to market vs. the innovations disproportionately benefiting our customers aloneSignificant credibility with large manufacturing partnersEstablishment of opportunity funnel with surgeon and independent distributor advisory relationshipsEntry into disposable and single use marketsPre-eminence as OEM supplier of orthopedic robotic end effectors

Pro-Dex Past to Present 4 FYE: 06/2016 MRQ: 2017 Q3 Next Rpt: 09/14/17 Revenue Q1 Q2 Q3 Q4 FY FY2014 2.6 2.6 2.4 3.2 10.8 FY2015 2.6 2.8 3.9 4.1 13.4 FY2016 4.1 5.2 5.2 5.3 19.8 FY2017 5.4 4.6 6.6 5.3* 21.9* FY2018 5.5* 5.0* 5.6* 5.8* 21.9* EPS Q1 Q2 Q3 Q4 FY FY2014 0.06 -0.1 -0.12 0.01 -0.14 FY2015 -0.04 -0.05 -0.02 0.02 -0.09 FY2016 -0.03 0.09 0.09 0.05 0.2 FY2017 0.07 0.78 0.22 .04* 0.95* FY2018 .07* .06* .07* .06* 0.24* Key Figures (2017 Q3) Employees 81 Shares Outstanding 4.0mFloat : 2.3m Avg Daily Volume (3 mos): 10K Cash $4.0mDebt : $0.1 m Book Value $12.9m $22.7m Mkt Cap * Analyst Estimates

Pro-Dex Core Business 5 “The interface between surgeons and patients.” Arthroscopic ShaversSagittal Saw MechanismsCraniomaxillofacial DriversMultifunction HandpiecesRobotic End EffectorsEngineering Services Pro-Dex has deployed smart drivers in CMF with 3 major companies that account for over 60% of the CMF market. The field of surgical robotics is rapidly growing and Pro-dex has manufacturing relationships with key players High Value Customer Relationships: “Pro-Dex is a leader in powered solutions for the operating room with over 40,000 handpieces shipped to the largest orthopedic distributors in the world.”

Surical Power: Addressable Market $1.2-1.7bn 6 CMF Thoracic Shoulder Elbow Spine Hip Knee Extremities Source: KOL Opinions, Company Annual Reports, Expert Interview, Investing Publications, TMR Analysis Pro-Dex bringing solutions to market vs. reliance on customers to fund developmentsFirst Pro-Dex branded driver solution launch expected calendar Q1 ‘18 Pro-Dex has greater than 60% market share in CMF, the smallest market in the orthopedic space Opportunity to take share with differentiated solutions in strategic markets (see TorqueDrive)

TORQUEDRIVE 7 The software algorithm can be integrated across a family of products from small bone and CMF (MatrixPro) to large bone and trauma Our algorithms do not affect the operation of non drill/drive ancillary operations; for example sagittal saws, burrs, etc. Screws mapped and optimized to the hardware making piggybacking difficult High product differentiation and a significant driver of sales conversions

Technology Overview 8 Pro-Dex utilizes algorithmic methods to characterize certain unchanging features of a torque curve.For example: A screw seating has universal features regardless of the screw type or the substrate density (osteoporotic or healthy) Variable Density Has Limited Affect on Screw Characterization Variable density doesn’t matter Differing bone densities represent a vertical shift (y-axis) of the torque curves. The torque characteristics of the screw path remain the same. Osteoporosis | 10 PCF Density By characterizing the torque curves themselves and not the absolute torque levels the behavior of variable density bones is captured. Normal | 50 PCF Density

Small Bone: CMF, Thoracic, Extremities 9 Modular quick-swap capabilities for attachmentsPatent filed on thoracic non-invasive attachment for anterior rib fixation with posterior approachEarly adopters have taken significant share Pro-Dex serves > 60% of the market (3 major customers) Positive surgeon feedback Adaptive torque limiting for rapid-driving screws and perfect seating of screwsScrew stripping preventionDrill and Drive Mode CapabilitiesRechargeable battery optionsHigh Precision discrete digital torque limitingExcellent ergonomics, balance and weightAdaptive torque limiting works with an assortment of attachments and offset geometries Key Capabilities: Extremely high accuracy locking screws and plates within manufacturer recommended specifications

Spine 10 Cortical Bone Cancellous Bone Cortical Bone Prevention of cortical breach via tissue differentiation Well placed screw path Cortical Bone Cancellous Bone Misplaced screw path The screw path for a well placed screw is very clearly defined; after penetration of the lateral cortical layer (1.3-1.6mm) the entirety of the remaining travel is cancellous bone. After penetration of the lateral cortical layer and penetration into the cancellous bone near the pedicle channel a second impact of cortical bone (medial or lateral) occurs. In discussions for Virtual Reality application specific integration Filed several patents on the execution of torque limiting in this application Should have a prototype ready to demonstrate that if cortical contact occurs the device terminates driving actionAdvancing and perfectly tightening set screws including rod reductionHigh Precision discrete digital torque limitingSpeed and torque optimized driver

Trauma, Large Bone, Reconstructive 11 Prevention of cortical breach via tissue differentiation Screw seating torques significantly higher than Tissue Removal Torques Adaptive Torque limiting does not affect application of non-driving applicationsRapid driving and seating of screws regardless of screw type or patient bone qualityPromising R&D with plunge prevention Non Driving application torques (Burr, Saw, Sagital Saw) orders of magnitude below seating torques Extremely high accuracy locking screws and plates within manufacturer recommended tightening specificationHigh Precision discrete digital torque limiting Drill and Drive Modes

High Potential Future Product Portfolio 12 Negotiating potential JV for high value differentiated blade IP Promising R&D developments and several provisional patents filedPossible 3D VR third party application specific integration Negotiating potential JVDifferentiated IP & synergistic with power portfolio First Pro-Dex branded product release in several years; expected release calendar Q4 ‘17Materially downsized design vs. competition First Pro-Dex branded driver release in several years; expected release calendar Q1 ‘18Adaptive torque limiting, modular attachmentsProvisional patent application on some application specific attachments Arthroscopic System with Proprietary Blade Design Spinal Drill/Driver Acetabular Cup Revision Tool ATLAS Pro-driver Adjustable Torque Wrench

Management Team 13 Ben Sexson, CFA, Director of Business Development Rick Van Kirk, MBA, President & CEO35 years experience – Pro-Dex, Unisys, Dynacast International, Comarco Angel Domingo, Director QARA20 years experience – Pro-Dex,Spectrum, Chemicon, Watson Rick Boyd, Director of Operations18 years experiencePro-Dex Alisha Charlton, CFO26 years experience – Pro-Dex,Comarco, CKE Restaurants, KPMG Rosie Hokanson, HR Manager25 +years experience – Pro-Dex,Comarco, Graypoint Auto, Onyx 11 years experiencePro-Dex, MUFG, First Wilshire