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BASIS OF PRESENTATION | 9 Months Ended
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Mar. 31, 2024
Accounting Policies [Abstract] |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2023. Recently Adopted Accounting Pronouncements In March 2022, the FASB issued Accounting Standards Update (“ASU”) No 2022-02 (Topic 326) Financial Instruments – Credit Losses to create a new model for credit losses that reflects current expected credit losses (“CECL”) over the lifetime of the underlying accounts receivable. The CECL methodology is applicable to our trade accounts receivable and our deferred costs. We adopted ASU 2022-02 effective July 1, 2023, and the adoption did not have a material impact on our financial statements. Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No 2023-09 (Topic 740) Income Taxes – Improvements to Income Tax Disclosures to enhance disclosures for the income tax rate reconciliation as well as cash income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending June 30, 2025. While we are still evaluating the specifics of the adoption, we anticipate this guidance will have a significant impact on our annual income tax disclosures. Correction of Previously Reported Interim Condensed Consolidated Financial Statements As described in more detail in Note 2 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2023, we previously restated certain of our financial statements, including our financial statements for the three and nine months ended March 31, 2023, to correct the estimated fair value of our warrant to purchase up to five percent (5%) of the outstanding capital stock of Monogram Orthopaedics Inc. (NasdaqCM: MGRM), calculated on a fully diluted basis (the “Monogram Warrant”). The restatement recorded, for all restated periods, the Monogram Warrant at its estimated fair value, an unrealized gain on investments, and the deferred income tax expense associated with the corresponding unrealized gain on investments. Presented below are the changes to each financial statement line item for the three and nine months ended March 31, 2023 that were affected by the restatement (in thousands except per share amounts). Three months ended March 31, 2023 Unaudited Income Statement (Third Quarter Fiscal 2023)
Schedule of changes in financial statement |  |  |  |  |  |  |  |  |  |  |  |
|  | As Previously Reported |  |  | Restatement |  |  | As Restated |
Unrealized gain(loss) on investments |  | $ | (177 | ) |  | $ | 419 | (a) |  | $ | 242 |
Total other income (expense) |  |  | (297 | ) |  |  | 419 |  |  |  | 122 |
Income before income taxes |  |  | 1,768 |  |  |  | 419 |  |  |  | 2,187 |
Income tax expense |  |  | 455 |  |  |  | 115 | (b) |  |  | 570 |
Net income |  |  | 1,313 |  |  |  | 304 |  |  |  | 1,617 |
Basic income per share |  | $ | 0.37 |  |  | $ | 0.09 |  |  | $ | 0.46 |
Diluted income per share |  | $ | 0.36 |  |  | $ | 0.09 |  |  | $ | 0.45 |
| (a) | This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.
| (b) | This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.
Nine months ended March 31, 2023 Unaudited Income Statement
|  | As Previously Reported |  |  | Restatement |  |  | As Restated |
Unrealized gain(loss) on investments |  | $ | 231 |  |  | $ | 3,176 | (a) |  | $ | 3,407 |
Total other income (expense) |  |  | 84 |  |  |  | 3,176 |  |  |  | 3,260 |
Income before income taxes |  |  | 4,236 |  |  |  | 3,176 |  |  |  | 7,412 |
Income tax expense |  |  | 968 |  |  |  | 872 | (b) |  |  | 1,840 |
Net income |  |  | 3,268 |  |  |  | 2,304 |  |  |  | 5,572 |
Basic income per share |  | $ | 0.92 |  |  | $ | 0.64 |  |  | $ | 1.56 |
Diluted income per share |  | $ | 0.89 |  |  | $ | 0.63 |  |  | $ | 1.52 |
| (a) | This amount represents the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023.
| (b) | This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
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