Espey Mfg. & Electronics (ESP) 10-Q13 Nov 232024 Q1 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Nov. 09, 2023
Document Information Line Items
Entity Registrant Name	ESPEY MFG. & ELECTRONICS CORP.
Trading Symbol	ESP
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		2,706,633
Amendment Flag	false
Entity Central Index Key	0000033533
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-4383
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	14-1387171
Entity Address, Address Line One	233 Ballston Avenue
Entity Address, City or Town	Saratoga Springs
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12866
City Area Code	518
Local Phone Number	245-4400
Title of 12(b) Security	Common Stock $.33-1/3 par value
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
ASSETS
Cash and cash equivalents	$ 3,064,670	$ 2,748,755
Investment securities	13,064,736	11,964,673
Trade accounts receivable, less allowance for credit losses of $3,000	5,927,506	5,755,282
Income tax receivable		35,666
Inventories:
Raw materials	1,967,438	1,889,702
Work-in-process	609,415	681,300
Costs related to contracts in process	16,678,414	17,318,579
Total inventories	19,255,267	19,889,581
Deferred tax assets	75,986
Prepaid expenses and other current assets	4,036,747	4,282,477
Total current assets	45,424,912	44,676,434
Property, plant and equipment, net	3,965,777	2,825,089
Total assets	49,390,689	47,501,523
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	1,913,174	1,212,375
Accrued expenses:
Salaries and wages	1,090,406	890,748
Vacation	573,735	685,188
ESOP payable	54,142
Dividends payable	405,995
Other	524,304	547,747
Payroll and other taxes withheld	60,215	66,042
Contract liabilities	7,581,090	8,081,838
Income taxes payable	467,346
Total current liabilities	12,670,407	11,483,938
Deferred tax liabilities		137,827
Total liabilities	12,670,407	11,621,765
Commitments and contingencies (See Note 5)
Common stock, par value $.33-1/3 per share Authorized 10,000,000 shares; Issued 3,129,874 shares as of September 30, 2023 and June 30, 2023. Outstanding 2,706,633 and 2,702,633 shares as of September 30, 2023 and June 30, 2023, respectively (includes 228,105 and 233,645 Unearned ESOP shares, respectively)	1,043,291	1,043,291
Capital in excess of par value	23,373,388	23,283,245
Accumulated other comprehensive loss	(634)	(2,429)
Retained earnings	22,591,316	21,867,720
Total stockholders equity before ESOP	47,007,361	46,191,827
Less: Unearned ESOP shares	(4,273,378)	(4,273,378)
Cost of 423,241 and 427,241 shares of common stock in treasury as of September 30, 2023 and June 30, 2023, respectively	(6,013,701)	(6,038,691)
Total stockholders’ equity	36,720,282	35,879,758
Total liabilities and stockholders' equity	$ 49,390,689	$ 47,501,523

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Trade accounts receivable, allowance (in Dollars)	$ 3,000	$ 3,000
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,129,874	3,129,874
Common stock, shares outstanding	2,706,633	2,702,633
Unearned ESOP shares	228,105	233,645
Common stock, par value (in Dollars per share)	$ 0.33	$ 0.33
Treasury stock, shares	423,241	427,241

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
Statements of Comprehensive Income (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 8,568,214	$ 8,635,795
Cost of sales	6,322,837	6,823,653
Gross profit	2,245,377	1,812,142
Selling, general and administrative expenses	1,023,681	839,030
Operating income	1,221,696	973,112
Other income
Interest income	147,430	8,807
Other	14,143	3,767
Total other income	161,573	12,574
Income before provision for income taxes	1,383,269	985,686
Provision for income taxes	288,725	217,420
Net income	1,094,544	768,266
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on investment securities	1,795	(1,763)
Total comprehensive income	$ 1,096,339	$ 766,503
Net income per share:
Basic (in Dollars per share)	$ 0.44	$ 0.31
Diluted (in Dollars per share)	$ 0.44	$ 0.31
Weighted average number of shares outstanding:
Basic (in Shares)	2,470,092	2,446,402
Diluted (in Shares)	2,485,789	2,447,519
Dividends per share: (in Dollars per share)	$ 0.15

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Capital in Excess of Par Value	Accumulated Other Comprehensive (Loss) Gain	Retained Earnings	Treasury Stock	Unearned ESOP Shares	Total
Balance at Jun. 30, 2022	$ 1,043,291	$ 23,104,693	$ (1,932)	$ 18,679,857	$ (6,038,691)	$ (4,687,604)	$ 32,099,614
Balance (in Shares) at Jun. 30, 2022	2,702,633				427,241
Comprehensive income:
Net income				768,266			768,266
Other comprehensive income, net of tax			(1,763)				(1,763)
Total comprehensive income							766,503
Stock-based compensation		61,259					61,259
Balance at Sep. 30, 2022	$ 1,043,291	23,165,952	(3,695)	19,448,123	$ (6,038,691)	(4,687,604)	32,927,376
Balance (in Shares) at Sep. 30, 2022	2,702,633				427,241
Balance at Jun. 30, 2023	$ 1,043,291	23,283,245	(2,429)	21,867,720	$ (6,038,691)	(4,273,378)	$ 35,879,758
Balance (in Shares) at Jun. 30, 2023	2,702,633				427,241		2,702,633
Comprehensive income:
Net income				1,094,544			$ 1,094,544
Other comprehensive income, net of tax			1,795				1,795
Total comprehensive income							1,096,339
Stock options exercised		34,490			$ 24,990		59,480
Stock options exercised (in Shares)	4,000				(4,000)
Stock-based compensation		55,653					55,653
Dividends paid on common stock $0.15 per share				(370,948)			(370,948)
Balance at Sep. 30, 2023	$ 1,043,291	$ 23,373,388	$ (634)	$ 22,591,316	$ (6,013,701)	$ (4,273,378)	$ 36,720,282
Balance (in Shares) at Sep. 30, 2023	2,706,633				423,241		2,706,633

Statements of Changes in Stoc_2

Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Other comprehensive income, net of tax	$ 377	$ 370
Dividends declared per share (in Dollars per share)	$ 0.15

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net income	$ 1,094,544	$ 768,266
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	55,653	61,259
Depreciation	119,392	120,950
ESOP compensation expense	89,189	78,927
Deferred income tax benefit	(213,813)	(1,697)
Changes in assets and liabilities:
Increase in trade accounts receivable	(172,224)	(888)
Decrease in income taxes receivable	35,666
Decrease (increase) in inventories	634,314	(77,755)
Decrease (increase) in prepaid expenses and other current assets	245,730	(233,166)
Increase in accounts payable	700,799	831,816
Increase in accrued salaries and wages	199,658	65,431
Decrease in vacation accrual	(111,453)	(29,527)
(Decrease) increase in other accrued expenses	(23,443)	57,022
(Decrease) increase in payroll and other taxes withheld	(5,827)	4,493
Decrease in contract liabilities	(500,748)	(740,236)
Increase in income taxes payable	467,346	68,317
Net cash provided by operating activities	2,614,783	973,212
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(2,228,802)	(50,482)
Proceeds from grant award	968,722
Purchase of investment securities	(4,758,705)	(2,826,789)
Proceeds from sale/maturity of investment securities	3,660,437	1,120,000
Net cash used in investing activities	(2,358,348)	(1,757,271)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options	59,480
Net cash provided by financing activities	59,480
Increase (decrease) in cash and short term investments	315,915	(784,059)
Cash and cash equivalents, beginning of period	2,748,755	8,104,060
Cash and cash equivalents, end of period	3,064,670	7,320,001
Supplemental Schedule of Cash Flow Information:
Income taxes paid		150,000
Supplemental Schedule of Non-cash Financing Activities:
Accrual of Dividends	$ 405,995

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Sep. 30, 2023
Basis of Presentation [Abstract]
Basis of Presentation	Note 1. Basis of Presentation In the opinion of management the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for such periods. The results for any interim period are not necessarily indicative of the results to be expected for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, income taxes, and stock-based compensation. Specific to inventories, including work-in-process and contracts in process, management evaluates, quarterly, those estimates used in determining the cost to complete for each contract on Espey Mfg. & Electronics Corp.’s (the “Company”) sales backlog. The change in estimates may affect the reported amount of inventories and gross profit in the current or a future period. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. These financial statements should be read in conjunction with the Company's most recent audited financial statements included in its report on Form 10-K for the year ended June 30, 2023. Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation.

Investment Securities

Investment Securities	3 Months Ended
Investment Securities	Sep. 30, 2023
Investment Securities [Abstract]
Investment Securities	Note 2. Investment Securities Accounting Standards Codification (“ASC”) 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: ◾ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ◾ Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ◾ Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The carrying amounts of financial instruments, including cash and cash equivalents, short term investments, accounts receivable, accounts payable and accrued expenses, approximated fair value as of September 30, 2023 and June 30, 2023 because of the immediate or short-term maturity of these financial instruments. Investment securities at September 30, 2023 and June 30, 2023 consisted of certificates of deposit, municipal bonds and U.S. treasury bills. The Company classifies investment securities as available-for-sale which have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale debt securities by major security type at September 30, 2023 and June 30, 2023 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2023 Certificates of deposit $ 12,367,000 $ — $ — $ 12,367,000 Municipal bonds $ 260,475 $ 2,559 $ (8,226 ) $ 254,808 U.S. Treasury Bills $ 440,604 $ 2,343 $ (19 ) $ 442,928 Total investment securities $ 13,068,079 $ 4,902 $ (8,245 ) $ 13,064,736 June 30, 2023 Certificates of deposit $ 11,280,000 $ — $ — $ 11,280,000 Municipal bonds $ 260,475 $ 165 $ (7,843 ) $ 252,797 U.S. Treasury Bills $ 430,952 $ 1,225 $ (301 ) $ 431,876 Total investment securities $ 11,971,427 $ 1,390 $ (8,144 ) $ 11,964,673 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At September 30, 2023, the Company did not have any investments in individual securities that have been in a continuous loss position considered to be other than temporary. As of September 30, 2023 and June 30, 2023, the remaining contractual maturities of available-for-sale debt securities were as follows: Years to Maturity Less than One to One Year Five Years Total September 30, 2023 Available-for-sale $ 13,000,737 $ 63,999 $ 13,064,736 June 30, 2023 Available-for-sale $ 11,711,876 $ 252,797 $ 11,964,673

Net Income Per Share

Net Income Per Share	3 Months Ended
Net Income Per Share	Sep. 30, 2023
Net Income Per Share [Abstract]
Net Income per Share	Note 3. Net Income per Share Basic net income per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. The computation of diluted net income per share, excluded options to purchase 229,731 shares of our common stock for the three months ended September 30, 2023 and 241,773 shares for the three months ended September 30, 2022, as the effect of including them would be anti-dilutive. As unearned shares owned by the Company’s sponsored leveraged employee stock ownership plan (the “ESOP”) are released or committed-to-be-released, the shares become outstanding for earnings-per-share computations.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
Stock Based Compensation	Sep. 30, 2023
Stock Based Compensation [Abstract]
Stock Based Compensation	Note 4. Stock Based Compensation The Company follows ASC 718 in establishing standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services, as well as transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements based on the fair value of the share-based payment. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment transactions with employees, except for equity instruments held by employee share ownership plans. Total stock-based compensation expense recognized in the statements of comprehensive income for the three-month periods ended September 30, 2023 and 2022 was $55,653 and $61,259, respectively, before income taxes. The amount of this stock-based compensation expense related to non-qualified stock options (“NQSOs”) for the three-month periods ended September 30, 2023 and 2022, was $8,255 and $9,604, respectively. The deferred tax benefit related to the NQSOs as of September 30, 2023 and 2022 was approximately $1,734 and $2,017, respectively. The remaining stock option expense in each year related to incentive stock options (“ISOs”) which are not deductible by the corporation when exercised, assuming a qualifying disposition and as such no deferred tax benefit was established related to these amounts. As of September 30, 2023, there was approximately $420,399 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 2 years, of which $367,056 relates to ISOs and $53,343 relates to NQSOs. The total deferred tax benefit related to these awards is expected to be $11,202. The Company has one employee stock option plan under which options or stock awards may be granted, the 2017 Stock Option and Restricted Stock Plan (the "2017 Plan"). The Board of Directors may grant options to acquire shares of common stock to employees and non-employee directors of the Company at the fair market value of the common stock on the date of grant. The maximum aggregate number of shares of Common Stock subject to options or awards to non-employee directors is 133,000 and the maximum aggregate number of shares of Common Stock subject to options or awards granted to non-employee directors during any single fiscal year is the lesser of 13,300 and 33 1/3% of the total number of shares subject to options or awards granted in such fiscal year. The maximum number of shares subject to options or awards granted to any individual employee may not exceed 15,000 in a fiscal year. Generally, options granted have a two-year vesting period based on two years of continuous service and have a ten-year contractual life. Option grants provide for accelerated vesting if there is a change in control. Shares issued upon the exercise of options are from those held in Treasury. Options covering 400,000 shares are authorized for issuance under the 2017 Plan. The plan allows for options which are issued, which become subsequently cancelled, to be re-granted at a later date. As of September 30, 2023, options covering 320,231 shares are outstanding under the 2017 Plan. As of September 30, 2023, options covering 75,769 shares remain available for grant after factoring in the exercised options and the cancelled options, which are eligible to be re-granted. While no further grants of options may be made under the Company’s 2007 Stock Option and Restricted Stock Plan, as of September 30, 2023, 35,100 options were outstanding under such plan of which all are vested and exercisable. ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model, which incorporates various assumptions including those for dividend yield, volatility, expected life and interest rates. The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the three months ended September 30, 2023 and 2022. September 30, 2023 September 30, 2022 Dividend yield 3.63% — Company’s expected volatility 31.20% 27.10% Risk-free interest rate 4.39% 2.66% Expected term 5.3 yrs 5.4 yrs Weighted average fair value per share of options granted during the period $ 4.03 $ 4.11 The Company declares regular dividends quarterly and declared a first quarter regular cash dividend of $0.15 per share for the three months ended September 30, 2023 and paid no The following table summarizes stock option activity during the three months ended September 30, 2023: Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic to Option Price Term Value Balance at July 1, 2023 296,331 $ 19.15 6.49 Granted 78,400 $ 16.54 9.95 Exercised (4,000 ) $ 14.87 — Forfeited or expired (15,400 ) $ 27.22 — Outstanding at September 30, 2023 355,331 $ 18.27 7.32 $ 255,363 Vested or expected to vest at September 30, 2023 328,697 $ 18.53 7.14 $ 196,739 Exercisable at September 30, 2023 196,131 $ 20.79 5.65 $ 62,224 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing sale price of the Company’s common stock as reported on the NYSE American on September 30, 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders had exercised their options on September 30, 2023. This amount changes based on the fair market value of the Company’s common stock. The intrinsic value of options exercised during the three months ended September 30, 2023 and 2022 was $9,482, and $0, respectively. The following table summarizes changes in non-vested stock options during the three months ended September 30, 2023: Weighted Number Average of Shares Grant Date Subject Fair Value to Option (per Option) Non-vested at July 1, 2023 132,600 $ 3.98 Granted 78,400 $ 4.03 Vested (51,800 ) $ 3.73 Forfeited or expired — — Non-vested at September 30, 2023 159,200 $ 4.09

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies The Company from time to time, enters into standby letters of credit agreements with financial institutions primarily relating to the guarantee of future performance on certain contracts. Contingent liabilities on outstanding standby letters of credit agreements aggregated to zero at September 30, 2023 and June 30, 2023. The Company, as a U.S. Government contractor, is subject to audits, reviews, and investigations by the U.S. Government related to its negotiation and performance of government contracts and its accounting for such contracts. Failure to comply with applicable U.S. Government standards by a contractor may result in suspension from eligibility for award of any new government contract and a guilty plea or conviction may result in debarment from eligibility for awards. The government may, in certain cases, also terminate existing contracts, recover damages, and impose other sanctions and penalties. As a result of contract audits the Company will determine a range of possible outcomes and in accordance with ASC 450 “Contingencies” the Company will accrue amounts within a range that appears to be its best estimate of a possible outcome. Adjustments are made to accruals, if any, periodically based on current information. We are party to various litigation matters and claims arising from time to time in the ordinary course of business. There are no such pending matters which we believe will have a material adverse effect on our business, financial condition, results of operations or cash flows. The Company was awarded $7.4 million in funding during the second quarter of fiscal year 2023 in support of facility and capital equipment upgrades for testing and qualification for the United States Navy. The funding is part of the Navy’s investment to improve and sustain the Surface Combatant Industrial Base. The work will be conducted on the Company’s property in Saratoga Springs, NY, with completion slated for calendar year 2024. The Company expects to be paid within 30 days after the submission of three milestone invoices, but will not be paid for expenses incurred in excess of the specified milestone payment limits. The Company will record the receipt of milestones payments received as a reduction from the cost of the assets. The Company will have an initial cash outlay to satisfy income tax obligations arising from the value of the milestones payments received. The cash outlay arising from federal income tax obligations is expected to be recaptured in future periods. Tax obligations associated with the receipt of milestone payments are recorded on the balance sheet and included in deferred tax assets. Included in property, plant, and equipment at September 30, 2023 was $1,488,439, net of milestone award reimbursements totaling $968,722, for facility and capital upgrades under the funding award compared to $308,001 included in property, plant, and equipment at June 30, 2023.

Revenue

Revenue	3 Months Ended
Revenue	Sep. 30, 2023
Revenue [Abstract]
Revenue	Note 6. Revenue The Company follows ASC 606 “Revenue from Contracts with Customers” to determine the recognition of revenue. This standard requires entities to assess the products or services promised in contracts with customers at contract inception to determine the appropriate unit at which to record revenues. Revenue is recognized when control of the promised products or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those products or services. Significant judgment is required in determining the satisfaction of performance obligations. Revenues from our performance obligations are satisfied over time using the output method which considers the appraisal of results achieved and milestones reached or units delivered based on contractual shipment terms, typically shipping point. Revenue is recognized when, or as, the customer takes control of the product or services. The output method best depicts the transfer of control to the customer as the output method represents work completed. Control is typically transferred to the customer at the shipping point as the Company has a present right to payment, the customer has legal title to the asset, the customer has the significant risks and rewards of ownership of the asset, and in most instances the customer has accepted the asset. Total revenue recognized for the three months ended September 30, 2023 based on units delivered was $6,405,538 compared to $6,959,789 for the same period in fiscal year 2023. Total revenue recognized for the three months ended September 30, 2023 based on milestones achieved was $2,162,676 compared to $1,676,006 for the same period in fiscal year 2023. The Company offers a standard one-year product warranty. Product warranties offered by the Company are classified as assurance-type warranties, which means, the warranty only guarantees that the good or service functions as promised. Based on this, the provided warranty is not considered to be a distinct performance obligation. The impact of variable consideration has been considered but none identified which would be required to be allocated to the transaction price as of September 30, 2023. Our payment terms are generally 30-60 days. Contract liabilities were $7,581,090 and $8,081,838 as of September 30, 2023 and June 30, 2023, respectively. The decrease in contract liabilities is primarily due to revenue recognized, offset in part by, the advance collection of cash on specific contracts. Revenue recognized, that was in contract liabilities in the beginning of the fiscal year, was $536,223 for the three months ended September 30, 2023. The Company used the practical expedient to expense incremental costs incurred to obtain a contract when the contract term is less than one year. The Company’s backlog at September 30, 2023 totaling approximately $87.1 million is projected, based on expected due dates, to be recognized in the following fiscal years: 36% in 2024; 49% in 2025; 11% in 2026, and 4% thereafter.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
Recently Issued Accounting Standards	Sep. 30, 2023
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 7. Recently Issued Accounting Standards Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
Employee Stock Ownership Plan	Sep. 30, 2023
Employee Stock Ownership Plan [Abstract]
Employee Stock Ownership Plan	Note 8. Employee Stock Ownership Plan The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the balance sheets and the statements of changes in stockholders’ equity. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation expense was $89,189 and $78,927 for the three-month periods ended September 30, 2023 and 2022, respectively. The ESOP shares as of September 30, 2023 and 2022 were as follows: September 30, 2023 September 30, 2022 Allocated shares 484,958 496,091 Committed-to-be-released shares 5,540 5,622 Unreleased shares 228,105 250,671 Total shares held by the ESOP 718,603 752,384 Fair value of unreleased shares $ 3,683,896 $ 3,456,753 The Company may at times be required to repurchase shares at the ESOP participants’ request at the shares’ fair market value. During the three months ended September 30, 2023 and 2022, the Company did not repurchase shares previously held by the ESOP. The ESOP allows for eligible participants to take whole share distributions from the Plan on specific dates in accordance with the provisions of the Plan. There were no

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
Investment Securities (Tables)	Sep. 30, 2023
Investment Securities [Abstract]
Schedule of Classifies Investment Securities as Available-for-Sale	The Company classifies investment securities as available-for-sale which have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale debt securities by major security type at September 30, 2023 and June 30, 2023 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2023 Certificates of deposit $ 12,367,000 $ — $ — $ 12,367,000 Municipal bonds $ 260,475 $ 2,559 $ (8,226 ) $ 254,808 U.S. Treasury Bills $ 440,604 $ 2,343 $ (19 ) $ 442,928 Total investment securities $ 13,068,079 $ 4,902 $ (8,245 ) $ 13,064,736 June 30, 2023 Certificates of deposit $ 11,280,000 $ — $ — $ 11,280,000 Municipal bonds $ 260,475 $ 165 $ (7,843 ) $ 252,797 U.S. Treasury Bills $ 430,952 $ 1,225 $ (301 ) $ 431,876 Total investment securities $ 11,971,427 $ 1,390 $ (8,144 ) $ 11,964,673
Schedule of Contractual Maturities of Available-for-Sale Debt Securities	As of September 30, 2023 and June 30, 2023, the remaining contractual maturities of available-for-sale debt securities were as follows: Years to Maturity Less than One to One Year Five Years Total September 30, 2023 Available-for-sale $ 13,000,737 $ 63,999 $ 13,064,736 June 30, 2023 Available-for-sale $ 11,711,876 $ 252,797 $ 11,964,673

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
Stock Based Compensation (Tables)	Sep. 30, 2023
Stock Based Compensation [Abstract]
Schedule of Outlines the Weighted Average Assumptions	The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the three months ended September 30, 2023 and 2022. September 30, 2023 September 30, 2022 Dividend yield 3.63% — Company’s expected volatility 31.20% 27.10% Risk-free interest rate 4.39% 2.66% Expected term 5.3 yrs 5.4 yrs Weighted average fair value per share of options granted during the period $ 4.03 $ 4.11
Schedule of Stock Option Activity	The following table summarizes stock option activity during the three months ended September 30, 2023: Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic to Option Price Term Value Balance at July 1, 2023 296,331 $ 19.15 6.49 Granted 78,400 $ 16.54 9.95 Exercised (4,000 ) $ 14.87 — Forfeited or expired (15,400 ) $ 27.22 — Outstanding at September 30, 2023 355,331 $ 18.27 7.32 $ 255,363 Vested or expected to vest at September 30, 2023 328,697 $ 18.53 7.14 $ 196,739 Exercisable at September 30, 2023 196,131 $ 20.79 5.65 $ 62,224
Schedule of Changes in Non-Vested Stock Options	The following table summarizes changes in non-vested stock options during the three months ended September 30, 2023: Weighted Number Average of Shares Grant Date Subject Fair Value to Option (per Option) Non-vested at July 1, 2023 132,600 $ 3.98 Granted 78,400 $ 4.03 Vested (51,800 ) $ 3.73 Forfeited or expired — — Non-vested at September 30, 2023 159,200 $ 4.09

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
Employee Stock Ownership Plan (Tables)	Sep. 30, 2023
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP Shares	The ESOP shares as of September 30, 2023 and 2022 were as follows: September 30, 2023 September 30, 2022 Allocated shares 484,958 496,091 Committed-to-be-released shares 5,540 5,622 Unreleased shares 228,105 250,671 Total shares held by the ESOP 718,603 752,384 Fair value of unreleased shares $ 3,683,896 $ 3,456,753

Investment Securities (Details)

Investment Securities (Details) - Schedule of Classifies Investment Securities as Available-for-Sale - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	$ 13,068,079	$ 11,971,427
Gross Unrealized Gains	4,902	1,390
Gross Unrealized Losses	(8,245)	(8,144)
Fair Value	13,064,736	11,964,673
Certificates of deposit [Member]
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	12,367,000	11,280,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	12,367,000	11,280,000
Municipal bonds [Member]
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	260,475	260,475
Gross Unrealized Gains	2,559	165
Gross Unrealized Losses	(8,226)	(7,843)
Fair Value	254,808	252,797
U.S. Treasury Bills [Member]
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	440,604	430,952
Gross Unrealized Gains	2,343	1,225
Gross Unrealized Losses	(19)	(301)
Fair Value	$ 442,928	$ 431,876

Investment Securities (Detail_2

Investment Securities (Details) - Schedule of Contractual Maturities of Available-for-Sale Debt Securities - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Schedule of Contractual Maturities [Abstract]
Less than One Year	$ 13,000,737	$ 11,711,876
One to Five Years	63,999	252,797
Fair Value	$ 13,064,736	$ 11,964,673

Net Income Per Share (Details)

Net Income Per Share (Details) - shares	3 Months Ended
Net Income Per Share (Details) - shares	Sep. 30, 2023	Sep. 30, 2022
Net Income Per Share [Abstract]
Anti-dilutive securities	229,731	241,773

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended
Stock Based Compensation (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Stock Based Compensation [Line Item]
Stock based compensation expense	$ 55,653	$ 61,259
Deferred tax benefit related to stock based compensation	1,734	$ 2,017
Unrecognized compensation costs	420,399
Period in which compensation cost will be recognized		2 years
Deferred tax benefit related to unrecognized compensation costs	$ 11,202
Shares remain available for grant (in Shares)	75,769
Common stock per share (in Dollars per share)	$ 0.15
Aggregate intrinsic value of options exercised	$ 9,482	$ 0
Non employee directors [Member] \| Maximum [Member] \| 2017 Plan [Member]
Stock Based Compensation [Line Item]
Authorized shares under plan (in Shares)	133,000
Vesting period (in Shares)	13,300
Percentage of total number of shares subject to options or awards, single fiscal year	33 1/3%
Individual Employee [Member] \| Maximum [Member] \| 2017 Plan [Member]
Stock Based Compensation [Line Item]
Vesting period (in Shares)	15,000
Non-qualified stock options [Member]
Stock Based Compensation [Line Item]
Stock based compensation expense	$ 8,255	$ 9,604
Unrecognized compensation costs	$ 53,343
Common stock per share (in Dollars per share)	$ 0.15
Incentive Stock Options [Member]
Stock Based Compensation [Line Item]
Unrecognized compensation costs	$ 367,056
Share-Based Payment Arrangement, Option [Member] \| 2017 Plan [Member]
Stock Based Compensation [Line Item]
Authorized shares under plan (in Shares)	400,000
Vesting period	2 years
Shares remain available for grant (in Shares)	320,231
Restricted Stock Plan [Member] \| 2007 Plan [Member]
Stock Based Compensation [Line Item]
Outstanding shares (in Shares)	35,100

Stock Based Compensation (Det_2

Stock Based Compensation (Details) - Schedule of Outlines the Weighted Average Assumptions - $ / shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Schedule of Outlines the Weighted Average Assumptions [Abstract]
Dividend yield	3.63%
Company’s expected volatility	31.20%	27.10%
Risk-free interest rate	4.39%	2.66%
Expected term	5 years 3 months 18 days	5 years 4 months 24 days
Weighted average fair value per share of options granted during the period (in Dollars per share)	$ 4.03	$ 4.11

Stock Based Compensation (Det_3

Stock Based Compensation (Details) - Schedule of Stock Option Activity	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Schedule of Stock Option Activity [Abstract]
Number of Shares Subject to Option, Beginning \| shares	296,331
Weighted Average Exercise Price, Beginning \| $ / shares	$ 19.15
Weighted Average Remaining Contractual Term, Beginning	6 years 5 months 26 days
Number of Shares Subject to Option, Granted \| shares	78,400
Weighted Average Exercise Price, Granted \| $ / shares	$ 16.54
Weighted Average Remaining Contractual Term, Granted	9 years 11 months 12 days
Number of Shares Subject to Option, Exercised \| shares	(4,000)
Weighted Average Exercise Price, Exercised \| $ / shares	$ 14.87
Weighted Average Remaining Contractual Term, Exercised
Number of Shares Subject to Option, Forfeited or expired \| shares	(15,400)
Weighted Average Exercise Price, Forfeited or expired \| $ / shares	$ 27.22
Weighted Average Remaining Contractual Term, Forfeited or expired
Number of Shares Subject to Option, Ending \| shares	355,331
Weighted Average Exercise Price, Ending \| $ / shares	$ 18.27
Weighted Average Remaining Contractual Term, Ending	7 years 3 months 25 days
Aggregate Intrinsic Value, Ending \| $	$ 255,363
Number of Shares Subject to Option, Vested or expected to vest \| shares	328,697
Weighted Average Exercise Price, Vested or expected to vest \| $ / shares	$ 18.53
Weighted Average Remaining Contractual Term, Vested or expected to vest	7 years 1 month 20 days
Aggregate Intrinsic Value, Vested or expected to vest \| $	$ 196,739
Number of Shares Subject to Option, Exercisable \| shares	196,131
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 20.79
Weighted Average Remaining Contractual Term, Exercisable	5 years 7 months 24 days
Aggregate Intrinsic Value, Exercisable \| $	$ 62,224

Stock Based Compensation (Det_4

Stock Based Compensation (Details) - Schedule of Changes in Non-Vested Stock Options	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Schedule of Changes in Non-Vested Stock Options [Abstract]
Weighted Number of Shares Subject to Option, Non-vested Beginning \| shares	132,600
Average Grant Date Fair Value (per Option), Non-vested Beginning \| $ / shares	$ 3.98
Weighted Number of Shares Subject to Option, Granted \| shares	78,400
Average Grant Date Fair Value (per Option), Granted \| $ / shares	$ 4.03
Weighted Number of Shares Subject to Option, Vested \| shares	(51,800)
Average Grant Date Fair Value (per Option), Vested \| $ / shares	$ 3.73
Weighted Number of Shares Subject to Option, Forfeited or expired \| shares
Average Grant Date Fair Value (per Option), Forfeited or expired \| $ / shares
Weighted Number of Shares Subject to Option, Non-vested Ending \| shares	159,200
Average Grant Date Fair Value (per Option), Non-vested Ending \| $ / shares	$ 4.09

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies [Line Item]
Funding amount			$ 7,400,000
Property, plant, and equipment amount	$ 1,488,439	$ 308,001
Reimbursement amount	968,722
Standby Letters of Credit [Member]
Commitments and Contingencies [Line Item]
Contingent liabilities	$ 0	$ 0

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended
Revenue (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Revenue [Line Items]
Revenue	$ 8,568,214	$ 8,635,795
Contract liabilities	536,223
ASC 606 [Member]
Revenue [Line Items]
Contract liabilities	7,581,090		$ 8,081,838
Units Delivered [Member] \| ASC 606 [Member]
Revenue [Line Items]
Revenue	6,405,538	6,959,789
Milestones Achieved [Member] \| ASC 606 [Member]
Revenue [Line Items]
Revenue	2,162,676	$ 1,676,006
Order or Production Backlog [Member] \| ASC 606 [Member]
Revenue [Line Items]
Intangible assets	$ 87,100,000
Backlog amount to be recognized, 2024	36%
Backlog amount to be recognized, 2025	49%
Backlog amount to be recognized, 2026	11%
Backlog amount to be recognized	4%

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan (Details) - Employee Stock Ownership Plan [Member]	3 Months Ended
	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 USD ($) shares
Employee Stock Ownership Plan [Line Items]
Number of hours worked per year to quality for the plan	1,000
ESOP compensation expense \| $	$ 89,189	$ 78,927
Shares distributed \| shares

Employee Stock Ownership Plan_3

Employee Stock Ownership Plan (Details) - Schedule of ESOP Shares - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Schedule of ESOP Shares [Abstract]
Allocated shares	484,958	496,091
Committed-to-be-released shares	5,540	5,622
Unreleased shares	228,105	250,671
Total shares held by the ESOP	718,603	752,384
Fair value of unreleased shares (in Dollars)	$ 3,683,896	$ 3,456,753