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Property, Plant and Equipment
 12 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 6. Property, Plant and Equipment

 

Property, plant and equipment at June 30, 2025 and 2024 is as follows:

 

   2025   2024 
Land  $45,000   $45,000 
Building and improvements   6,137,629    5,472,156 
Machinery and equipment   11,887,737    11,509,018 
Furniture and fixtures   165,651    165,651 
    18,236,017    17,191,825 
Accumulated depreciation   (14,275,861)   (13,885,550)
Property, plant and equipment, net  $3,960,156   $3,306,275 

 

Depreciation expense was $451,523 and $453,517 for the years ended June 30, 2025 and 2024, respectively.

 

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 is being conducted on the Company’s property in Saratoga Springs, NY, which was completed in April 2025. The Company received payment related to the third and final submission of milestone invoices. The Company recorded the receipt of milestone payments received as a reduction from the cost of the assets. The Company incurred an initial cash outlay to satisfy income tax obligations arising from the value of the milestone payments received. The cash outlay arising from federal income tax obligations is expected to be recaptured in future periods. Until recaptured, estimated tax obligations associated with the receipt of milestone payments are recorded on the balance sheet and included in deferred tax assets. As of June 30, 2025, net deferred tax asset includes a deferred tax asset of $1,298,291 associated with milestone reimbursements received totaling $7,488,722. As of June 30, 2025 no portion of the property, plant, and equipment balance was related to facility and capital upgrades pending reimbursement under the funding award, compared to $965,392 in spending that was not yet reimbursed and included in property, plant, and equipment at June 30, 2024. As of June 30, 2025 no portion of the accounts payable balance was related to capital upgrades eligible for reimbursement under this funding award compared to approximately $272,560 included in accounts payable at June 30, 2024. All assets related to this award were placed in service at June 30, 2025.

 

The Company received an additional award for $3.4 million in funding during the second quarter of fiscal year 2025 in support of continued 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. Work is being conducted on the Company’s property in Saratoga Springs, NY, which is anticipated to be completed by the end of fiscal year 2026. The Company will receive payment related to submission of milestones. The first two milestones are achieved upon placement of all purchase orders and subsequently submitted for reimbursement. The final milestone and final reimbursement is dependent on completion of all work to be performed and assets purchased to be placed in service. To receive full reimbursement for the $3.4 million award, the Company must invest approximately 15% or $508,000 in relation to these facility improvements and capital equipment upgrades. The Company will record the receipt of milestone payments 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 milestone payments received. The cash outlay arising from federal income tax obligations is expected to be recaptured in future periods. Until recaptured, estimated tax obligations associated with the receipt of milestone payments are recorded on the balance sheet and included in deferred tax assets. As of June 30, 2025, net deferred tax asset includes a deferred tax asset of $386,808 associated with items that will be reimbursed under this grant. As of June 30, 2025 the Company has received $0 in milestone reimbursements. Included in property, plant, and equipment at June 30, 2025 was approximately $1,731,042 not yet reimbursed for facility and capital upgrades under this funding award, which includes $63,029 related to assets that have been placed in service. Included in accounts payable at June 30, 2025 was approximately $108,306 for facility and capital upgrades eligible to be reimbursed under this funding award.