<html>

<head>


<title>Pro-Dex, Inc. Form 8-K by www.edgar2.com</title>



</head>

<body lang=EN-US link=blue vlink=purple>



<p><b>&nbsp;</b></p>

<p><b>&nbsp;</b></p>









<p align="center"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington,
 D.C.&nbsp; 20549</b></p>





<p align=center style='text-align:center'><b>FORM 8-K</b></p>

<p align="center"><b>CURRENT REPORT<br>
Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934</b></p>





<p align=center style='text-align:center'>Date of Report <br>
<font size="2">(Date of earliest event reported)</font><b><font size="2"> <br>
</font>January 3, 2006</b></p>





<p align=center style='text-align:center'><b>PRO-DEX, INC.<br>
</b><font size="2">(Exact name of registrant as specified in its charter)</font></p>
<div align="center">
	<table border="0" width="740" id="table1" cellspacing="0" cellpadding="0">
		<tr>
			<td width="229" align="center">





<p align=center style='text-align:center'><b>COLORADO</b></p></td>
			<td align="center" width="264"><b>0-14942</b></td>
			<td align="center"><b>84-1261240</b></td>
		</tr>
		<tr>
			<td width="229" align="center"><font size="2">(State or other<br>
			jurisdiction of<br>
			incorporation)</font></td>
			<td align="center" width="264"><font size="2">(Commission File
			Number)</font></td>
			<td align="center"><font size="2">(IRS
Employer <br>
			Identification Number)</font></td>
		</tr>
		<tr>
			<td width="229" align="center"><font size="2">&nbsp;&nbsp; </font>
			</td>
			<td align="center" width="264">&nbsp;</td>
			<td align="center">&nbsp;</td>
		</tr>
	</table>
</div>

<p align=center style='text-align:center'><b>151 East Columbine Avenue<br>
Santa Ana</b><b>, California </b><b>92707<br>
</b><font size="2">(Address of Principal Executive Offices)</font></p>

<p align=center style='text-align:center'><b>(714) 241-4411<br>
</b><font size="2">(Registrant's Telephone Number, Including Area Code)</font></p>





<p style='text-autospace:none' align="justify"><font size="2">Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions ( <i>see </i>General
Instruction A.2. below): </font> </p>



<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>
<font size="2">[&nbsp;&nbsp; ] &nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
</font> </p>

<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>
<font size="2">[&nbsp;&nbsp; ] &nbsp;Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </font> </p>

<p style='margin-left:20.0pt;text-indent:-20.0pt;text-autospace:
none; margin-top:0; margin-bottom:0.001pt'><font size="2">[&nbsp;&nbsp; ] &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b)) </font> </p>

<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>
<font size="2">[&nbsp;&nbsp; ] &nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) </font> </p>
<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>
<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<b><u><br
clear=all style='page-break-before:always'>
</u></b>













<p style='margin-left:72.0pt;text-indent:-72.0pt'><b>Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a Material Definitive
Agreement</b></p>

<p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 5, 2006, Pro-Dex Astromec, Inc., a Nevada corporation (the
&quot;Subsidiary&quot;), a wholly-owned subsidiary of Pro-Dex, Inc. (the &quot;Company&quot;),
entered into an Asset Purchase Agreement (the &quot;Asset Purchase Agreement&quot;) with
Astromec, Inc., a Nevada corporation (&quot;Astromec&quot;) whereby the Subsidiary
purchased from Astromec substantially all of the assets related to Astromec's
factional horsepower DC motor development and manufacturing business (the
&quot;Assets&quot;).&nbsp; The Subsidiary was formed under the laws of the State of Nevada on December&nbsp;27, 2005.&nbsp;
Since the Subsidiary is a wholly-owned subsidiary of the Company, the financial
investments and transactions of both companies are presented on a consolidated
basis.&nbsp; M.D. Glover, Inc., a Nevada corporation (&quot;Glover, Inc.&quot;),
and Malcolm D. Glover, Jr., as principal shareholders of Astromec, and Malcolm
D. Glover, Sr., as sole shareholder of Glover, Inc., are each party to the
Asset Purchase Agreement with respect to customary and standard representations
and warranties and indemnity obligations of Astromec.</p>



<p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
purchase price for the Assets consisted of $2,700,000 in cash payable to
Astromec, $100,000 of which shall be held back until July 5, 2006 to cover any
adjustments in the purchase price that might be required pursuant to:</p>



<ul style='margin-top:0pt' type=disc>
 <li class=MsoNormal style='text-align:justify'>a
     post-closing review of the balance sheet of Astromec as of January 5, 2005
     (which balance sheet shall be prepared on or before March 6, 2006), and/or
     </li>
 <li class=MsoNormal style='margin-top:12.0pt;text-align:justify'>any indemnity obligations of Astromec under the
     Asset Purchase Agreement that arise prior to or on July 5, 2006, if any. </li>
</ul>

<p style='margin-top:12.0pt;' align="justify">The Company paid $1,600,000 of the purchase price out
of cash on hand.&nbsp; The remaining $1,000,000 was paid with cash borrowed from
Wells Fargo Bank pursuant to the Loan Agreement and Term Note described in more
detail below.</p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 3, 2006, the Company entered into a Purchase and Sale Agreement and
Escrow Instructions (the &quot;Real Property Purchase Agreement&quot;) with Glover, Inc.,
whereby pending the close of escrow, the Company shall purchase 4.4 acres of
real property and a 20,000 square foot industrial building and related
improvements located in Carson City, Nevada.&nbsp; Glover, Inc., the majority
shareholder of Astromec, is the current owner of the property.&nbsp; The property
comprises the facilities where Astromec conducted its business prior to the
close of the Asset Purchase Agreement, and the Company currently plans to
continue factional horsepower DC motor development and manufacturing operations
at the property.&nbsp; Upon the close of escrow, the Company shall pay $2,200,000
for the property.&nbsp; The Company plans to pay $600,000 of the purchase price out
of cash on hand and anticipates that the remaining $1,600,000 will be paid for out
of proceeds from a $1,600,000 ten-year first mortgage on the property.</p>
<p style='margin-left:0pt;text-indent:0pt'>&nbsp;</p>
<p style='margin-left:0pt;text-indent:0pt' align="center">-2-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<br clear=all
style='page-break-before:always'>










<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 4, 2006, the Company entered into a Term Note and related Loan
Agreement (the Term Note and Loan Agreement collectively referred to as the
&quot;Loan Documents&quot;) with Wells Fargo Bank, National Association (the &quot;Bank&quot;),
whereby the Company borrowed the principal sum of $1,000,000 (collectively, the
&quot;Loan&quot;).&nbsp; The proceeds from the Loan were applied to the purchase price for the
Assets of Astromec described above.&nbsp; The principal balance of the Loan bears
interest either:</p>



<ul>
	<li>
	<p>at a fluctuating rate per annum equal to the Bank's Prime Rate as
in effect from time to time, or</p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">at a fixed rate per annum determined by the Bank to be 2.50%
above LIBOR in effect on the first day of the applicable fixed rate term.&nbsp;
	</p></li>
</ul>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
fixed rate term may be for a period of either 1, 2, 3 or 6 months as determined
by the Company pursuant to the terms of the Loan Documents.&nbsp; The Company has
chosen that the principal balance initially bear interest based on the 2.50%
above LIBOR rate for a fixed rate term of one month.&nbsp; The principal amount of
the Loan shall be payable on the 4<sup>th</sup> day of each month in
installments of $20,833.33 commencing February 4, 2006 and continuing up to and
including December 4, 2009, with a final installment consisting of all
remaining unpaid principal due and payable in full on January 4, 2010.&nbsp; Accrued
interest under the Loan shall be payable on the 4<sup>th</sup> day of each
month commencing February 4, 2006.</p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Loan Documents contain customary events of default provisions, which include,
without limitation, the Company's: </p>



<ul>
	<li>
	<p align="justify">failure to timely pay amounts due under the Loan or any other
agreement with the Bank, </p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">breach of its representations or warranties or otherwise violate
or breach the terms of the Loan Documents or any other agreement with the Bank,
	</p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">default of any obligation under any agreement between the Company
and any other person or entity, </p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">being subject to the filing of notice of a judgment lien against
the Company or the institution of a bankruptcy or similar proceeding by or
against the Company, </p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">suffering a material adverse change, as determined by the Bank,
in its financial condition, or </p></li>
	<li>
	<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-bottom:.0001pt;' align="justify">a change in ownership in the aggregate of 25% or more of the
common stock of the Company during the term of the Loan.&nbsp; </p></li>
</ul>

<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Among
other remedies afforded to the Bank upon an event of default under the Loan
Documents, the Bank may, at its option, cause the entire balance of principal,
interest, fees and other charges under the Loan or any other agreement between
the Company and the Bank to become immediately due and payable.&nbsp; Pursuant to
the terms of the Loan Agreement, the above referenced events of default, as
well as all other provisions of the Loan Agreement, shall apply to all of the
Company's commercial credit accommodations from the Bank, whether now existing
or hereafter established.</p>
<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt' align="center">-3-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<br clear=all
style='page-break-before:always'>










<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
foregoing descriptions of the agreements set forth above do not purport to be a
complete description of all of the terms of such agreements, and are qualified
in their entirety by reference to the full terms of the Asset Purchase
Agreement, the Real Property Purchase Agreement, the Term Note and the Loan
Agreement, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3 and
10.4, respectively, and incorporated herein by reference.</p>



<p style='margin-left:72.0pt;text-indent:-72.0pt'><b>Item 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion of Acquisition or
Disposition of Assets</b></p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As
stated above in Item 1.01, on January 5, 2006, the Subsidiary entered into an
Asset Purchase Agreement with Astromec, whereby the Subsidiary purchased
substantially all of the assets related to Astromec's factional horsepower DC
motor development and manufacturing business.&nbsp; Also as stated above in Item
1.01, on January 3, 2006, the Company entered into a Purchase and Sale
Agreement and Escrow Instructions with Glover, Inc., whereby pending the close
of escrow, the Company shall purchase real property and an industrial building
and related improvements located in Carson City, Nevada.&nbsp; The details of the
acquisition of these assets are described in Item 1.01, which is incorporated
in its entirety by this reference into this Item 2.01.</p>



<p align=left style='margin-left:0pt;text-align:left;
text-indent:0pt'><b>Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial
Conditions</b></p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 5, 2006, the Company issued a press release announcing, in addition to
the matters disclosed under Item 1.01, certain non-public information regarding
the Company's results of operations for its second quarter ended December 31,
2005.&nbsp; </p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">The Company
disclosed that its open order backlog, defined as orders or purchase commitments
that have been received in writing from one or more customers, was
approximately $7.0 million.&nbsp; The Company has previously indicated that it uses
open order backlog as a key financial performance indicator, as it quantifies a
large portion of shipments expected in the next 12 months.&nbsp; The company
included the non-GAAP measure in the press release for both Pro-Dex, Inc. and
Astromec, Inc. as of December 31, 2005. &nbsp;A copy of the press release is
attached hereto as Exhibit 99.1 and incorporated herein by reference.</p>



<p align=left style='margin-left:0pt;text-align:left;
text-indent:0pt'><b>Item 2.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</b></p>



<p style='margin-left:0pt;text-indent:0pt' align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As
stated above in Item 1.01, on January 4, 2006, the Company entered into a Term
Note and related Loan Agreement with Wells Fargo Bank, National Association,
whereby the Company borrowed the principal sum of $1,000,000.&nbsp; The details of
this financial obligation are described in Item 1.01, which is incorporated in
its entirety by this reference into this Item 2.03.</p>
<p style='margin-left:0pt;text-indent:0pt'>&nbsp;</p>
<p style='margin-left:0pt;text-indent:0pt' align="center">-4-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<br clear=all
style='page-break-before:always'>










<p><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial
Statements and Exhibits</b></p>

<p>&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial
Statements of Businesses Acquired</u>.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To be filed under cover of Form 8-K/A on or before
March 21, 2006.</p>



<p>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Pro Forma
Financial Information</u>.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To be filed under cover of Form 8-K/A on or before
March 21, 2006.</p>



<p>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Shell Company
Transactions</u>.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</p>



<p>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibits</u>.</p>

<table border="0" width="100%" id="table2" cellspacing="3" cellpadding="3">
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top"><u>Exhibit
No.</u></td>
		<td width="904" valign="top"><u>Description</u></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.1</td>
		<td width="904" valign="top">
		<p align="justify">Asset Purchase Agreement, dated January 5, 2006, between Pro-Dex
Astromec, Inc., Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and
Malcolm D. Glover, Sr.</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.2</td>
		<td width="904" valign="top">
		<p align="justify">Purchase and Sale Agreement and Escrow Instructions, dated January 3,
2006, between Pro-Dex, Inc. and M.D. Glover, Inc.</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.3</td>
		<td width="904" valign="top">
		<p align="justify">Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells
Fargo Bank, National Association</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.4</td>
		<td width="904" valign="top">
		<p align="justify">Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and
Wells Fargo Bank, National Association</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 99.1</td>
		<td width="904" valign="top">
		<p align="justify">Press Release dated January 5, 2006</p></td>
	</tr>
</table>
<p style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-left:36.0pt;margin-bottom:.0001pt;text-indent:36.0pt'>&nbsp;</p>
<p style='margin-right:0pt;
' align="center">-5-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<br clear=all
style='page-break-before:always'>










<p align=center style='text-align:center'><b>SIGNATURES</b></p>





<p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</p>





<p>Date:&nbsp; January 6, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>PRO-DEX, INC.</b></p>





<p style='margin-left:234.0pt'>By:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/&nbsp; Patrick Johnson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Patrick Johnson<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">-6-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<br clear=all
style='page-break-before:always'>










<p align=center style='text-align:center'><b>INDEX TO EXHIBITS</b></p>

<p><b>&nbsp;</b></p>

<table border="0" width="100%" id="table3" cellspacing="3" cellpadding="3">
	<tr>
		<td valign="bottom">&nbsp;</td>
		<td width="131" valign="bottom" style="border-bottom: 1px solid #000000">
		<b>Exhibit
<br>
		Number</b></td>
		<td width="904" valign="bottom" style="border-bottom: 1px solid #000000">
		<b>Description</b></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.1</td>
		<td width="904" valign="top">
		<p align="justify">Asset Purchase Agreement, dated January 5, 2006, between Pro-Dex
Astromec, Inc., Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and
Malcolm D. Glover, Sr.</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.2</td>
		<td width="904" valign="top">
		<p align="justify">Purchase and Sale Agreement and Escrow Instructions, dated January 3,
2006, between Pro-Dex, Inc. and M.D. Glover, Inc.</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.3</td>
		<td width="904" valign="top">
		<p align="justify">Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells
Fargo Bank, National Association</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 10.4</td>
		<td width="904" valign="top">
		<p align="justify">Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and
Wells Fargo Bank, National Association</p></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="131" valign="top">Exhibit 99.1</td>
		<td width="904" valign="top">
		<p align="justify">Press Release dated January 5, 2006</p></td>
	</tr>
</table>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-54.0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-54.0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-54.0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-54.0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-54.0pt'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-bottom:.0001pt;' align="center">-7-</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>







</body>

</html>
[{"type": "8-K", "sequence": "1", "filename": "pdex8k1.htm", "secsgml_size_bytes": 23121}]
{"company-data": {"conformed-name": "PRO DEX INC", "cik": "0000788920", "assigned-sic": "3841", "irs-number": "841261240", "state-of-incorporation": "CO", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-14942", "film-number": "06516629"}, "business-address": {"street1": "MICRO MOTORS, INC.", "street2": "151 EAST COLUMBINE", "city": "SANTA ANA", "state": "CA", "zip": "92707", "phone": "714-241-4411"}, "mail-address": {"street1": "MICRO MOTORS INC.", "street2": "151 EAST COLUMBINE", "city": "SANTA ANA", "state": "CA", "zip": "92707"}}
Pro-Dex, Inc. Form 8-K by www.edgar2.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
 D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
January 3, 2006
PRO-DEX, INC.
(Exact name of registrant as specified in its charter)
COLORADO
0-14942
84-1261240
(State or other
jurisdiction of
incorporation)
(Commission File
			Number)
(IRS
Employer
Identification Number)
151 East Columbine Avenue
Santa Ana
, California
92707
(Address of Principal Executive Offices)
(714) 241-4411
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (
see
General
Instruction A.2. below):
[   ]  Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ]  Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ]  Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[   ]  Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 1.01        Entry into a Material Definitive
Agreement
On
January 5, 2006, Pro-Dex Astromec, Inc., a Nevada corporation (the
"Subsidiary"), a wholly-owned subsidiary of Pro-Dex, Inc. (the "Company"),
entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") with
Astromec, Inc., a Nevada corporation ("Astromec") whereby the Subsidiary
purchased from Astromec substantially all of the assets related to Astromec's
factional horsepower DC motor development and manufacturing business (the
"Assets").  The Subsidiary was formed under the laws of the State of Nevada on December 27, 2005. 
Since the Subsidiary is a wholly-owned subsidiary of the Company, the financial
investments and transactions of both companies are presented on a consolidated
basis.  M.D. Glover, Inc., a Nevada corporation ("Glover, Inc."),
and Malcolm D. Glover, Jr., as principal shareholders of Astromec, and Malcolm
D. Glover, Sr., as sole shareholder of Glover, Inc., are each party to the
Asset Purchase Agreement with respect to customary and standard representations
and warranties and indemnity obligations of Astromec.
The
purchase price for the Assets consisted of $2,700,000 in cash payable to
Astromec, $100,000 of which shall be held back until July 5, 2006 to cover any
adjustments in the purchase price that might be required pursuant to:
a
     post-closing review of the balance sheet of Astromec as of January 5, 2005
     (which balance sheet shall be prepared on or before March 6, 2006), and/or
any indemnity obligations of Astromec under the
     Asset Purchase Agreement that arise prior to or on July 5, 2006, if any.
The Company paid $1,600,000 of the purchase price out
of cash on hand.  The remaining $1,000,000 was paid with cash borrowed from
Wells Fargo Bank pursuant to the Loan Agreement and Term Note described in more
detail below.
On
January 3, 2006, the Company entered into a Purchase and Sale Agreement and
Escrow Instructions (the "Real Property Purchase Agreement") with Glover, Inc.,
whereby pending the close of escrow, the Company shall purchase 4.4 acres of
real property and a 20,000 square foot industrial building and related
improvements located in Carson City, Nevada.  Glover, Inc., the majority
shareholder of Astromec, is the current owner of the property.  The property
comprises the facilities where Astromec conducted its business prior to the
close of the Asset Purchase Agreement, and the Company currently plans to
continue factional horsepower DC motor development and manufacturing operations
at the property.  Upon the close of escrow, the Company shall pay $2,200,000
for the property.  The Company plans to pay $600,000 of the purchase price out
of cash on hand and anticipates that the remaining $1,600,000 will be paid for out
of proceeds from a $1,600,000 ten-year first mortgage on the property.
-2-
On
January 4, 2006, the Company entered into a Term Note and related Loan
Agreement (the Term Note and Loan Agreement collectively referred to as the
"Loan Documents") with Wells Fargo Bank, National Association (the "Bank"),
whereby the Company borrowed the principal sum of $1,000,000 (collectively, the
"Loan").  The proceeds from the Loan were applied to the purchase price for the
Assets of Astromec described above.  The principal balance of the Loan bears
interest either:
at a fluctuating rate per annum equal to the Bank's Prime Rate as
in effect from time to time, or
at a fixed rate per annum determined by the Bank to be 2.50%
above LIBOR in effect on the first day of the applicable fixed rate term.
The
fixed rate term may be for a period of either 1, 2, 3 or 6 months as determined
by the Company pursuant to the terms of the Loan Documents.  The Company has
chosen that the principal balance initially bear interest based on the 2.50%
above LIBOR rate for a fixed rate term of one month.  The principal amount of
the Loan shall be payable on the 4
th
day of each month in
installments of $20,833.33 commencing February 4, 2006 and continuing up to and
including December 4, 2009, with a final installment consisting of all
remaining unpaid principal due and payable in full on January 4, 2010.  Accrued
interest under the Loan shall be payable on the 4
th
day of each
month commencing February 4, 2006.
The
Loan Documents contain customary events of default provisions, which include,
without limitation, the Company's:
failure to timely pay amounts due under the Loan or any other
agreement with the Bank,
breach of its representations or warranties or otherwise violate
or breach the terms of the Loan Documents or any other agreement with the Bank,
default of any obligation under any agreement between the Company
and any other person or entity,
being subject to the filing of notice of a judgment lien against
the Company or the institution of a bankruptcy or similar proceeding by or
against the Company,
suffering a material adverse change, as determined by the Bank,
in its financial condition, or
a change in ownership in the aggregate of 25% or more of the
common stock of the Company during the term of the Loan.
Among
other remedies afforded to the Bank upon an event of default under the Loan
Documents, the Bank may, at its option, cause the entire balance of principal,
interest, fees and other charges under the Loan or any other agreement between
the Company and the Bank to become immediately due and payable.  Pursuant to
the terms of the Loan Agreement, the above referenced events of default, as
well as all other provisions of the Loan Agreement, shall apply to all of the
Company's commercial credit accommodations from the Bank, whether now existing
or hereafter established.
-3-
The
foregoing descriptions of the agreements set forth above do not purport to be a
complete description of all of the terms of such agreements, and are qualified
in their entirety by reference to the full terms of the Asset Purchase
Agreement, the Real Property Purchase Agreement, the Term Note and the Loan
Agreement, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3 and
10.4, respectively, and incorporated herein by reference.
Item 2.01        Completion of Acquisition or
Disposition of Assets
As
stated above in Item 1.01, on January 5, 2006, the Subsidiary entered into an
Asset Purchase Agreement with Astromec, whereby the Subsidiary purchased
substantially all of the assets related to Astromec's factional horsepower DC
motor development and manufacturing business.  Also as stated above in Item
1.01, on January 3, 2006, the Company entered into a Purchase and Sale
Agreement and Escrow Instructions with Glover, Inc., whereby pending the close
of escrow, the Company shall purchase real property and an industrial building
and related improvements located in Carson City, Nevada.  The details of the
acquisition of these assets are described in Item 1.01, which is incorporated
in its entirety by this reference into this Item 2.01.
Item 2.02        Results of Operations and Financial
Conditions
On
January 5, 2006, the Company issued a press release announcing, in addition to
the matters disclosed under Item 1.01, certain non-public information regarding
the Company's results of operations for its second quarter ended December 31,
2005.
The Company
disclosed that its open order backlog, defined as orders or purchase commitments
that have been received in writing from one or more customers, was
approximately $7.0 million.  The Company has previously indicated that it uses
open order backlog as a key financial performance indicator, as it quantifies a
large portion of shipments expected in the next 12 months.  The company
included the non-GAAP measure in the press release for both Pro-Dex, Inc. and
Astromec, Inc. as of December 31, 2005.  A copy of the press release is
attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 2.03        Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
As
stated above in Item 1.01, on January 4, 2006, the Company entered into a Term
Note and related Loan Agreement with Wells Fargo Bank, National Association,
whereby the Company borrowed the principal sum of $1,000,000.  The details of
this financial obligation are described in Item 1.01, which is incorporated in
its entirety by this reference into this Item 2.03.
-4-
Item 9.01        Financial
Statements and Exhibits
(a)
Financial
Statements of Businesses Acquired
.
To be filed under cover of Form 8-K/A on or before
March 21, 2006.
(b)
Pro Forma
Financial Information
.
To be filed under cover of Form 8-K/A on or before
March 21, 2006.
(c)
Shell Company
Transactions
.
Not applicable.
(d)
Exhibits
.
Exhibit
No.
Description
Exhibit 10.1
Asset Purchase Agreement, dated January 5, 2006, between Pro-Dex
Astromec, Inc., Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and
Malcolm D. Glover, Sr.
Exhibit 10.2
Purchase and Sale Agreement and Escrow Instructions, dated January 3,
2006, between Pro-Dex, Inc. and M.D. Glover, Inc.
Exhibit 10.3
Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells
Fargo Bank, National Association
Exhibit 10.4
Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and
Wells Fargo Bank, National Association
Exhibit 99.1
Press Release dated January 5, 2006
-5-
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Date:  January 6, 2006
PRO-DEX, INC.
By:
/s/  Patrick Johnson
Patrick Johnson
Chief Executive Officer
-6-
INDEX TO EXHIBITS
Exhibit
Number
Description
Exhibit 10.1
Asset Purchase Agreement, dated January 5, 2006, between Pro-Dex
Astromec, Inc., Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and
Malcolm D. Glover, Sr.
Exhibit 10.2
Purchase and Sale Agreement and Escrow Instructions, dated January 3,
2006, between Pro-Dex, Inc. and M.D. Glover, Inc.
Exhibit 10.3
Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells
Fargo Bank, National Association
Exhibit 10.4
Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and
Wells Fargo Bank, National Association
Exhibit 99.1
Press Release dated January 5, 2006
-7-