What Pro-Dex, Inc. told the SEC could break it.

Pro-Dex is extremely customer-concentrated — one (confidential) customer was 75% of FY2025 sales and the top three 94%; repair revenue from that customer's legacy orthopedic handpiece is expected to decline as it transitions to a next-generation device.

“In fiscal 2025, we had one customer, included in both medical device and repairs revenue above, that accounted for 75% of sales with our next largest customer accounting for 12% of sales.”

Pro-Dex's surgical instrumentation is FDA-regulated (Class I, ISO 13485, FDA establishment registration); the FDA's broad recall and enforcement powers could halt sales or processes if products are found non-compliant.

“The FDA has broad enforcement powers to recall and prohibit the sale of products that do not comply with federal regulations and to order the cessation of non-compliant processes.”

Although it has no exclusive supplier arrangements, in several instances Pro-Dex uses only one supplier for certain high-value components; transitioning to an alternative would likely cause supply-chain delays.

“We have no exclusive arrangements with any of our suppliers, but in several instances only one supplier is used for certain high-value components. In most of such instances, secondary suppliers have been identified, although it is likely that any transition to a new or different supplier would result in a delay in the supply chain.”