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PRO-DEX, INC. and SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
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| 30-Jun-08 | 30-Jun-07 | ||
ASSETS |
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Current assets: |
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Cash and cash equivalents | $ | 517,000 | $ | 403,000 |
Accounts receivable, net of allowance for doubtful accounts |
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of $144,000 at June 30, 2008 and $153,000 at June 30, 2007 | 2,842,000 | 3,436,000 | ||
Other Current Receivables | 205,000 | - | ||
Inventories, net | 5,101,000 | 4,622,000 | ||
Prepaid expenses | 214,000 | 205,000 | ||
Prepaid income taxes | 860,000 | - | ||
Deferred income taxes | 1,176,000 | 1,091,000 | ||
Total current assets | 10,915,000 | 9,757,000 | ||
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Property, plant, equipment and leasehold improvements, net | 6,470,000 | 3,778,000 | ||
Other assets: |
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Goodwill | 2,997,000 | 2,997,000 | ||
Intangibles - Patents, net | 1,221,000 | 1,321,000 | ||
Deferred income taxes | - | 229,000 | ||
Other | 68,000 | 25,000 | ||
Total other assets | 4,286,000 | 4,572,000 | ||
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Total assets | $ | 21,671,000 | $ | 18,107,000 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Line of credit | $ | 2,000,000 | $ | 300,000 |
Accounts payable | 1,736,000 | 1,110,000 | ||
Accrued expenses | 2,053,000 | 1,183,000 | ||
Income taxes payable | 114,000 | 158,000 | ||
Current portion of term note | 396,000 | 250,000 | ||
Current portion of real estate loan | 30,000 | 26,000 | ||
Current portion of patent deferred payable | - | 82,000 | ||
Total current liabilities | 6,329,000 | 3,109,000 | ||
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Long-term liabilities: |
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Term note | - | 396,000 | ||
Real estate loan | 1,560,000 | 1,593,000 | ||
Patent deferred payable | 44,000 | 158,000 | ||
Deferred income taxes | 290,000 | - | ||
Deferred rent | 150,000 | - | ||
Total long-term liabilities | 2,044,000 | 2,147,000 | ||
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Total liabilities | 8,373,000 | 5,256,000 | ||
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Commitments and contingencies |
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Shareholders' equity: |
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Common shares; no par value; 50,000,000 shares authorized; |
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9,803,366 shares issued and outstanding June 30, 2008 |
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9,718,366 shares issued and outstanding June 30, 2007 | 16,545,000 | 16,340,000 | ||
Accumulated deficit | (3,247,000) | (3,489,000) | ||
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Total shareholders' equity | 13,298,000 | 12,851,000 | ||
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Total liabilities and shareholders' equity | $ | 21,671,000 | $ | 18,107,000 |
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PRO-DEX, INC. and SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Years ended June 30 | ||||
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| 2008 | 2007 | ||
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Net sales | $ | 25,126,000 | $ | 21,563,000 |
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Cost of sales | 16,917,000 | 14,196,000 | ||
Gross profit | 8,209,000 | 7,367,000 | ||
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Operating expenses: |
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Selling | 1,482,000 | 1,353,000 | ||
General and administrative expenses | 3,265,000 | 2,698,000 | ||
Irvine facility move related general and administrative expenses | 274,000 | - | ||
Research and development costs | 2,732,000 | 2,474,000 | ||
Total operating expenses | 7,753,000 | 6,525,000 | ||
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Income from operations | 456,000 | 842,000 | ||
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Other: |
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Other (expense), net | (9,000) | (4,000) | ||
Royalty income | 35,000 | 38,000 | ||
Interest income | 17,000 | 18,000 | ||
Interest (expense) | (181,000) | (319,000) | ||
Total | (138,000) | (267,000) | ||
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Income before provision for income taxes | 318,000 | 575,000 | ||
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Provision for Income taxes | (1,000) | (69,000) | ||
Net income | $ | 317,000 | $ | 506,000 |
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Net Income per share: |
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Basic | $ | 0.03 | $ | 0.05 |
Diluted | $ | 0.03 | $ | 0.05 |
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Weighted average shares outstanding - basic | 9,736,249 | 9,579,055 | ||
Weighted average shares outstanding - diluted | 9,924,350 | 9,739,041 |
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PRO-DEX, INC. and SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Years ended June 30 | ||||
| 2008 | 2007 | ||
Cash Flows from Operating Activities: |
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Net Income | $ | 317,000 | $ | 506,000 |
Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization | 538,000 | 487,000 | ||
Loss on disposal | - | 4,000 | ||
(Recovery of) Provision for doubtful accounts | (9,000) | 113,000 | ||
Reserve for obsolete inventory | (18,000) | 198,000 | ||
Stock based compensation | 204,000 | 242,000 | ||
Retained earnings adjustment for prior years due to accounting standard change | (75,000) | - | ||
Deferred taxes | 434,000 | (177,000) | ||
Changes in: |
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Decrease in accounts receivable | 397,000 | 292,000 | ||
(Increase) in inventories | (460,000) | (840,000) | ||
(Increase) in prepaid expenses | (9,000) | (114,000) | ||
(Increase) Decrease in other assets | (43,000) | 19,000 | ||
Increase in accounts payable and accrued expenses | 1,645,000 | 371,000 | ||
Increase (Decrease) in income taxes payable | (903,000) | 379,000 | ||
Net Cash provided by Operating Activities | 2,018,000 | 1,480,000 | ||
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Cash Flows From Investing Activities: |
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Acquisition of Astromec, net of cash acquired | - | (66,000) | ||
Purchase of equipment and leasehold improvements | (3,130,000) | (447,000) | ||
Purchase of Intangible Assets - Patents related to Intraflow | - | (2,000) | ||
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Net Cash used in Investing Activities | (3,130,000) | (515,000) | ||
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Cash Flows from Financing Activities: |
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Principal payments of patent deferred payable | (196,000) | (76,000) | ||
Net (Payments) Borrowing on Line of Credit | 1,700,000 | (600,000) | ||
Principal payments on Term Note | (250,000) | (250,000) | ||
Principal payments on Real Estate Loan | (28,000) | (27,000) | ||
Proceeds from option and warrant exercise | - | 33,000 | ||
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Net Cash provided by (used in) Financing Activities | 1,226,000 | (920,000) | ||
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Net (decrease) increase in Cash and Cash Equivalents | 114,000 | 45,000 | ||
Cash and Cash Equivalents, beginning of year | 403,000 | 358,000 | ||
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Cash and Cash Equivalents, end of year | $ | 517,000 | $ | 403,000 |
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Supplemental Information | ||||
Cash paid for interest | $ | 181,000 | $ | 229,000 |
Cash paid for income taxes | $ | 560,000 | $ | - |
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