Espey Manufacturing & Electronics (ESP) 10-Q 14 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	May 10, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	ESPEY MFG & ELECTRONICS CORP
Entity Central Index Key	33,533
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Common Stock, Shares Outstanding		2,383,723

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2018	Jun. 30, 2017
ASSETS:
Cash and cash equivalents	$ 6,906,752	$ 10,058,163
Investment securities	11,402,394	9,426,968
Trade accounts receivable, net of allowance of $3,000	3,595,441	3,399,613
Income tax receivable	148,102	120,179
Inventories:
Raw materials	1,419,002	1,303,259
Work-in-process	978,550	512,014
Costs related to contracts in process, net of advance payments of $577,714 and $1,366,504 at March 31, 2018 and June 30, 2017, respectively	7,903,603	7,863,538
Total inventories	10,301,155	9,678,811
Deferred tax assets		317,559
Prepaid expenses and other current assets	776,447	227,306
Total current assets	33,130,291	33,228,599
Property, plant and equipment, net	2,579,043	2,265,096
Deferred tax assets	78,489
Total assets	35,787,823	35,493,695
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable	1,499,895	2,250,115
Accrued expenses:
Salaries and wages	391,213	172,045
Vacation	724,662	656,199
ESOP payable	245,752
Other	163,418	250,283
Payroll and other taxes withheld	58,429	46,939
Total current liabilities	3,083,369	3,375,581
Deferred tax liabilities		220,571
Total liabilities	3,083,369	3,596,152
Commitments and contingencies (see Note 5)
Common stock, par value $.33-1/3 per share Authorized 10,000,000 shares; Issued 3,029,874 shares as of March 31, 2018 and June 30, 2017. Outstanding 2,375,923 and 2,371,321 as of March 31, 2018 and June 30, 2017, respectively (includes 33,125 and 45,000 Unearned ESOP shares, respectively)	1,009,958	1,009,958
Capital in excess of par value	17,861,046	17,650,335
Accumulated other comprehensive loss	(6,592)	(3,599)
Retained earnings	22,301,533	21,670,196
Total stockholders equity before ESOP	41,165,945	40,326,890
Less: Unearned ESOP shares	(650,248)	(650,248)
Cost of 653,951 and 658,553 shares of common stock in treasury as of March 31, 2018 and June 30, 2017, respectively	(7,811,243)	(7,779,099)
Total stockholders' equity	32,704,454	31,897,543
Total liabilities and stockholders' equity	$ 35,787,823	$ 35,493,695

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Statement of Financial Position [Abstract]
Trade accounts receivable, allowance	$ 3,000	$ 3,000
Advance payments of costs related to contracts in process	$ 577,714	$ 1,366,504
Common stock, par value	$ 0.3333	$ 0.3333
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,029,874	3,029,874
Common stock, shares outstanding	2,375,923	2,371,321
Unearned ESOP, shares	33,125	45,000
Treasury stock, shares	653,951	658,553

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 5,663,161	$ 5,324,104	$ 24,690,689	$ 17,060,411
Cost of sales	4,407,957	4,195,599	18,898,733	13,508,014
Gross profit	1,255,204	1,128,505	5,791,956	3,552,397
Selling, general and administrative expenses	895,129	784,589	2,756,319	2,307,636
Operating income	360,075	343,916	3,035,637	1,244,761
Other income
Interest income	42,684	39,911	109,561	63,385
Other	13,428	7,488	31,236	21,691
Total other income	56,112	47,399	140,797	85,076
Income before provision for income taxes	416,187	391,315	3,176,434	1,329,837
Provision for income taxes	98,423	112,142	801,035	385,761
Net income	317,764	279,173	2,375,399	944,076
Other comprehensive income, net of tax:
Unrealized loss on investment securities	(2,143)	(247)	(2,993)	(1,503)
Total comprehensive income	$ 315,621	$ 278,926	$ 2,372,406	$ 942,573
Net income per share:
Basic	$ 0.14	$ 0.12	$ 1.02	$ 0.41
Diluted	$ 0.14	$ 0.12	$ 1.02	$ 0.41
Weighted average number of shares outstanding:
Basic	2,331,697	2,317,838	2,328,518	2,309,771
Diluted	2,349,428	2,327,797	2,338,909	2,323,431
Dividends per share:	$ 0.25	$ 0.25	$ 0.75	$ 0.75

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 2,375,399	$ 944,076
Adjustments to reconcile net income to net cash provided by operating activities:
Excess tax benefits from share-based compensation		(9,070)
Stock-based compensation	86,675	93,293
Depreciation	318,076	323,710
ESOP compensation expense	279,502	320,835
Deferred income tax expense	19,707	50,146
Changes in assets and liabilities:
(Increase) decrease in trade receivable, net	(195,828)	1,583,208
(Increase) decrease in income taxes receivable	(27,923)	107,615
(Increase) decrease in inventories, net	(622,344)	1,891,249
Increase in prepaid expenses and other current assets	(549,141)	(123,758)
(Decrease) increase in accounts payable	(750,220)	82,715
Increase (decrease) in accrued salaries and wages	219,168	(258,947)
Increase in vacation accrual	68,463	16,874
Decrease in ESOP payable	(33,750)	(46,250)
Decrease in other accrued expenses	(86,865)	(40,020)
Increase (decrease) in payroll and other taxes withheld	11,490	(2,531)
Net cash provided by operating activities	1,112,409	4,933,145
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(632,023)	(331,686)
Purchase of investment securities	(10,101,613)	(7,606,900)
Proceeds from sale/maturity of investment securities	8,121,986	3,974,224
Net cash used in investing activities	(2,611,650)	(3,964,362)
Cash Flows from Financing Activities:
Dividends on common stock	(1,744,062)	(1,730,031)
Purchase of treasury stock	(109,694)	(44,335)
Proceeds from exercise of stock options	201,586	150,917
Excess tax benefits from share-based compensation		9,070
Net cash used in financing activities	(1,652,170)	(1,614,379)
Decrease in cash and cash equivalents	(3,151,411)	(645,596)
Cash and cash equivalents, beginning of period	10,058,163	10,031,644
Cash and cash equivalents, end of period	6,906,752	9,386,048
Supplemental Schedule of Cash Flow Information:
Income taxes paid	$ 810,000	$ 228,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2018
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 only 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. 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 values 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, 2017. Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation.

Investment Securities

Investment Securities	9 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Note 2. Investment Securities 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 investment securities, accounts receivable, accounts payable and accrued expenses, approximated fair value as of March 31, 2018 and June 30, 2017 because of the immediate or short-term maturity of these financial instruments. Investment securities at March 31, 2018 and June 30, 2017 consist of certificates of deposit and government and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at March 31, 2018 and June 30, 2017 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018 Certificates of deposit $ 10,439,000 $ — $ — $ 10,439,000 Municipal bonds 968,749 603 (5,958 ) 963,394 Total investment securities $ 11,407,749 $ 603 $ (5,958 ) $ 11,402,394 June 30, 2017 Certificates of deposit $ 8,557,000 $ — $ — $ 8,557,000 Municipal bonds 871,872 258 (2,162 ) 869,968 Total investment securities $ 9,428,872 $ 258 $ (2,162 ) $ 9,426,968 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At March 31, 2018, 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 March 31, 2018 and June 30, 2017, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total March 31, 2018 Available-for-sale $ 10,528,099 $ 874,295 $ 11,402,394 June 30, 2017 Available-for-sale $ 8,829,542 $ 597,426 $ 9,426,968

Net Income per Share

Net Income per Share	9 Months Ended
	Mar. 31, 2018
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 weighted-average common shares outstanding, assuming dilution, excluded options to purchase 103,600 and 152,150 shares of our common stock for the three and nine months ended March 31, 2018 and 2017, respectively, as the effect of including them would be anti-dilutive. As Unearned ESOP shares are released or committed-to-be-released the shares become outstanding for earnings-per-share computations.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [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 March 31, 2018 and 2017 was $36,205 and $40,245, respectively, before income taxes. The related total deferred tax benefits were approximately $2,034 and $3,769 for the same periods. Total stock-based compensation expense recognized in the statements of comprehensive income for the nine-month periods ended March 31, 2018 and 2017, was $86,675 and $93,293, respectively, before income taxes. The related total deferred tax benefit was approximately $4,805 and $7,893 for the same periods. As of March 31, 2018, there was approximately $153,718 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 2.00 years. The total deferred tax benefit related to these awards is expected to be approximately $8,738. The Company has one employee stock option plan under which options or stock awards may be granted, the 2017 Stock Options and Restricted Stock Plan (the "2017 Plan"), approved by the Company's shareholders at the Company's Annual Meeting on December 1, 2017. 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, of which 51,715 have been granted as of March 31, 2018. While no further grants of options may be made under the Company’s 2007 Stock Option and Restricted Stock Plan, as of March 31, 2018, 185,400 options were outstanding under such plan of which 145,950 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 nine months ended March 31, 2018 and 2017. March 31, 2018 March 31, 2017 Dividend yield 4.60% 3.85% Company’s expected volatility 23.97% 29.70% Risk-free interest rate 1.95% 1.84% Expected term 4.7 yrs 4.6 yrs Weighted average fair value per share of options granted during the period $ 2.790 $ 4.640 The Company declares dividends quarterly and paid cash dividends totaling $0.75 per share for the nine months ended March 31, 2018 and 2017. Our Board of Directors assesses the Company’s dividend policy periodically. There is no assurance that the Board of Directors will maintain the amount of the regular cash dividend. Expected stock price volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options. The expected option life (in years) represents the estimated period of time until exercise and is based on actual historical experience. The following table summarizes stock option activity during the nine months ended March 31, 2018: Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic To Options Price Term Value Balance at July 1, 2017 197,800 $ 24.57 5.86 Granted 51,715 $ 21.76 9.54 Exercised (9,400 ) $ 21.45 — Forfeited or expired (4,885 ) $ 24.44 — Outstanding at March 31, 2018 235,230 $ 24.08 6.22 $ 528,162 Vested or expected to vest at March 31, 2018 221,814 $ 24.10 6.04 $ 494,369 Exercisable at March 31, 2018 145,950 $ 24.31 4.42 $ 303,756 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 MKT on March 31, 2018 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 March 31, 2018. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic values of the options exercised during the nine months ended March 31, 2018 and 2017 were $23,437 and $20,769, respectively. The following table summarizes changes in non-vested stock options during the nine months ended March 31, 2018: Number Weighted Average of Shares Grant Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2017 42,900 $ 4.586 Granted 51,715 $ 2.793 Vested (1,500 ) $ 4.149 Forfeited or expired (3,835 ) $ 3.731 Non-vested at March 31, 2018 89,280 $ 3.591

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies The Company at certain times 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 March 31, 2018 and June 30, 2017. 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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Mar. 31, 2018
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 6. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers, ” In subsequent periods, the FASB issued additional ASUs intended to clarify specific aspects related to the interpretation and implementation of ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” to provide guidance on principal versus agent considerations by an entity as discussed in ASU No. 2014-09. ASU No. 2016-08 provides criteria to be assessed by an entity when determining whether it is the principal or agent in relation to the goods or services which the company is contractually obligated to provide to the customer. Among these considerations are: identifying the unit of account at which the entity should assess whether it is a principal or an agent; identifying the nature of the good or service provided to the customer; applying the control principle to certain types of transactions; and, interaction of the control principle with the indicators provided to assist in the principle versus agent evaluation. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – (Topic 606): Identifying Performance Obligations and Licensing” to provide implementation guidance related to the necessary judgements required in identifying performance obligations of a contract and guidance related to recognition of licensing revenues. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers – (Topic 606): Narrow-Scope Improvements and Practical Expedients” to provide guidance related to the implementation of ASU No. 2014-09 in the following areas; assessing collectability for contracts that do not meet Step 1 of revenue recognition, presentation of sales taxes, noncash consideration, contract modifications at transition, and completed contracts at transition. These standards are effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods therein. We are continuing to evaluate the impact of our pending adoption of ASU No. 2014-09, which we do not expect to have a material impact on the Company’s financial statements upon adoption. The company expects to use the modified retrospective method when adopting the standard beginning July 1, 2018. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The guidance requires the classification of deferred tax assets and liabilities as non-current in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. We adopted ASU 2015-17 during the first quarter of fiscal year 2018 on a prospective basis. Prior periods were not retrospectively adjusted. Accordingly, for the nine-month period ended March 31, 2018 we decreased current deferred tax assets by $268,371 and decreased noncurrent deferred tax liabilities by $189,882; the net reclassification of which increased noncurrent deferred tax assets by $78,849. Adoption of ASU No. 2015-17 for the prior period presented would have the following impact on the Company’s financial statements for June 30, 2017; a decrease in current assets of $317,559, a decrease in non-current liabilities of $220,571 and an increase in non-current assets of $96,988. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted ASU 2016-09 during the first quarter of fiscal year 2018 on a prospective basis. We have elected to follow an accounting policy to estimate the number of awards that are expected to vest (consistent with ASU and prior GAAP). Adoption of ASU No. 2016-09 did not have a material impact on the Company’s financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. Under current accounting guidance, the income tax effects for changes in income tax rates and certain other transactions are recognized in income from continuing operations resulting in income tax effects recognized in Accumulated Other Comprehensive Income that do not reflect the current tax rate of the entity (“stranded tax effects”). The new guidance allows the Company the option to reclassify these stranded tax effects to retained earnings that relate to the change in the federal tax rate resulting from the passage of the Tax Cuts and Jobs Act (the “Tax Act”). This update is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted. The Company is evaluating the impact that ASU No. 2018-02 will have on the Company's financial statements.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	9 Months Ended
	Mar. 31, 2018
Employee Stock Ownership Plan [Abstract]
Employee Stock Ownership Plan	Note 7. Employee Stock Ownership Plan The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all non-union 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 statement of financial position. 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 $100,464 and $103,959 for the three-month periods ended March 31, 2018 and 2017, respectively. ESOP compensation expense was $279,502 and $320,835 for the nine-month periods ended March 31, 2018 and 2017, respectively. The ESOP shares as of March 31, 2018 and 2017 were as follows: March 31, 2018 March 31, 2017 Allocated shares 443,198 439,432 Committed-to-be-released shares 11,875 12,500 Unreleased shares 33,125 49,167 Total shares held by the ESOP 488,198 501,099 Fair value of unreleased shares $ 867,875 $ 1,130,841 During the three and nine months ended March 31, 2018 the Company repurchased 0 and 4,798 shares previously held in the ESOP for $0 and $109,694. During the three and nine months ended March 31, 2017 the Company repurchased 0 and 1,663 shares previously held in the ESOP for $0 and $44,335. The ESOP allows for eligible participants to take whole share distributions from the plan on specific dates in accordance with the provision of the plan. Share distributions from the ESOP during the three and nine months ended March 31, 2018 totaled 0 and 8,103 shares, respectively. During the three and nine month period ended March 31, 2017 the ESOP did not distribute any shares from the plan.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities	Investment securities at March 31, 2018 and June 30, 2017 consist of certificates of deposit and government and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at March 31, 2018 and June 30, 2017 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018 Certificates of deposit $ 10,439,000 $ — $ — $ 10,439,000 Municipal bonds 968,749 603 (5,958 ) 963,394 Total investment securities $ 11,407,749 $ 603 $ (5,958 ) $ 11,402,394 June 30, 2017 Certificates of deposit $ 8,557,000 $ — $ — $ 8,557,000 Municipal bonds 871,872 258 (2,162 ) 869,968 Total investment securities $ 9,428,872 $ 258 $ (2,162 ) $ 9,426,968
Schedule of Contractual Maturities	As of March 31, 2018 and June 30, 2017, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total March 31, 2018 Available-for-sale $ 10,528,099 $ 874,295 $ 11,402,394 June 30, 2017 Available-for-sale $ 8,829,542 $ 597,426 $ 9,426,968

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value Assumptions	The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the nine months ended March 31, 2018 and 2017. March 31, 2018 March 31, 2017 Dividend yield 4.60% 3.85% Company’s expected volatility 23.97% 29.70% Risk-free interest rate 1.95% 1.84% Expected term 4.7 yrs 4.6 yrs Weighted average fair value per share of options granted during the period $ 2.790 $ 4.640
Schedule of Stock Option Activity	The following table summarizes stock option activity during the nine months ended March 31, 2018: Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic To Options Price Term Value Balance at July 1, 2017 197,800 $ 24.57 5.86 Granted 51,715 $ 21.76 9.54 Exercised (9,400 ) $ 21.45 — Forfeited or expired (4,885 ) $ 24.44 — Outstanding at March 31, 2018 235,230 $ 24.08 6.22 $ 528,162 Vested or expected to vest at March 31, 2018 221,814 $ 24.10 6.04 $ 494,369 Exercisable at March 31, 2018 145,950 $ 24.31 4.42 $ 303,756
Schedule of Changes in Non-Vested Stock Options	The following table summarizes changes in non-vested stock options during the nine months ended March 31, 2018: Number Weighted Average of Shares Grant Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2017 42,900 $ 4.586 Granted 51,715 $ 2.793 Vested (1,500 ) $ 4.149 Forfeited or expired (3,835 ) $ 3.731 Non-vested at March 31, 2018 89,280 $ 3.591

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	9 Months Ended
	Mar. 31, 2018
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP shares	The ESOP shares as of March 31, 2018 and 2017 were as follows: March 31, 2018 March 31, 2017 Allocated shares 443,198 439,432 Committed-to-be-released shares 11,875 12,500 Unreleased shares 33,125 49,167 Total shares held by the ESOP 488,198 501,099 Fair value of unreleased shares $ 867,875 $ 1,130,841

Investment Securities (Schedule

Investment Securities (Schedule of Available-for-Sale Securities) (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 11,407,749	$ 9,428,872
Gross Unrealized Gains	603	258
Gross Unrealized Losses	(5,958)	(2,162)
Fair Value	11,402,394	9,426,968
Certificates of Deposit [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,439,000	8,557,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	10,439,000	8,557,000
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	968,749	871,872
Gross Unrealized Gains	603	258
Gross Unrealized Losses	(5,958)	(2,162)
Fair Value	$ 963,394	$ 869,968

Investment Securities (Schedu17

Investment Securities (Schedule of Contractual Maturities) (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Contractual maturities of available-for-sale securities
Less than One Year	$ 10,528,099	$ 8,829,542
One to Five Years	874,295	597,426
Fair Value	$ 11,402,394	$ 9,426,968

Net Income per Share (Details)

Net Income per Share (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net Income per Share [Abstract]
Anti-dilutive securities	103,600	152,150	103,600	152,150

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 36,205	$ 40,245		$ 86,675	$ 93,293
Deferred tax benefit related to stock based compensation	2,034	$ 3,769		4,805	$ 7,893
Unrecognized compensation costs	153,718			$ 153,718
Period in which compensation cost will be recognized				2 years
Deferred tax benefit related to unrecognized compensation costs	$ 8,738			$ 8,738
Granted				51,715
Outstanding	235,230			235,230		197,800
Cash divided paid				$ 0.75	$ 0.75
Total intrinsic values of the options exercised				$ 23,437	$ 20,769
2017 Plan [Member] | Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Expiration period			10 years
Authorized shares under plan			400,000
Granted	51,715
2017 Plan [Member] | Non employee directors [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized shares under plan			133,000
Percentage of total number of shares subject to options or awards, single fiscal year			33.33%
Number of shares subject to option or award, single fiscal year			13,300
2017 Plan [Member] | Individual Employee [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares subject to option or award, single fiscal year			15,000
2007 Plan [Member] | Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	185,400			185,400
Vested and exercisable shares	145,950			145,950

Stock Based Compensation (Sched

Stock Based Compensation (Schedule of weighted average assumptions for option awards) (Details) - $ / shares	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Weighted Average Assumptions
Dividend yield	4.60%	3.85%
Company's expected volatility	23.97%	29.70%
Risk-free interest rate	1.95%	1.84%
Expected term	4 years 8 months 12 days	4 years 7 months 6 days
Weighted average fair value per share of options granted during the period	$ 2.790	$ 4.640

Stock Based Compensation (Sch21

Stock Based Compensation (Schedule of Stock Option Activity) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Number of Shares Subject To Options
Balance at July 1, 2017	197,800
Granted	51,715
Exercised	(9,400)
Forfeited or expired	(4,885)
Outstanding at March 31, 2018	235,230	197,800
Vested or expected to vest at March 31, 2018	221,814
Exercisable at March 31, 2018	145,950
Weighted Average Exercise Price
Balance at July 1, 2017	$ 24.57
Granted	21.76
Exercised	21.45
Forfeited or expired	24.44
Outstanding at March 31, 2018	24.08	$ 24.57
Vested or expected to vest at March 31, 2018	24.10
Exercisable at March 31, 2018	$ 24.31
Weighted Average Remaining Contractual Term
Outstanding	6 years 2 months 19 days	5 years 10 months 10 days
Granted	9 years 6 months 14 days
Vested or expected to vest at March 31, 2018	6 years 15 days
Exercisable at March 31, 2018	4 years 5 months 1 day
Aggregate Intrinsic Value
Outstanding at March 31, 2018	$ 528,162
Vested or expected to vest at March 31, 2018	494,369
Exercisable at March 31, 2018	$ 303,756

Stock Based Compensation (Sch22

Stock Based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details)	9 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Shares Subject to Option
Non-vested at July 1, 2017 | shares	42,900
Granted | shares	51,715
Vested | shares	(1,500)
Forfeited or expired | shares	(3,835)
Non-vested at March 31, 2018 | shares	89,280
Weighted Average Grant Date Fair Value (per Option)
Non-vested at July 1, 2017 | $ / shares	$ 4.586
Granted | $ / shares	2.793
Vested | $ / shares	4.149
Forfeited or expired | $ / shares	3.731
Non-vested at March 31, 2018 | $ / shares	$ 3.591

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Standby Letters of Credit [Member]
Contingent liabilities	$ 0	$ 0

Recently Issued Accounting St24

Recently Issued Accounting Standards (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Item Effected [Line Items]
Change in current assets	$ (268,371)
Change in noncurrent liabilities	(189,882)
Change in noncurrent assets	$ 78,849
Adjustments for New Accounting Pronouncement [Member]
Item Effected [Line Items]
Change in current assets		$ 317,559
Change in noncurrent liabilities		220,571
Change in noncurrent assets		$ 96,988

Employee Stock Ownership Plan25

Employee Stock Ownership Plan (Narrative) (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2018USD ($)shares	Mar. 31, 2017USD ($)shares	Mar. 31, 2018USD ($)hshares	Mar. 31, 2017USD ($)shares
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
ESOP compensation expense | $	$ 100,464	$ 103,959	$ 279,502	$ 320,835
Employee Stock Ownership Plan [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of hours worked per year to quality for the plan | h			1,000
Shares repurchased | shares	0	0	4,798	1,663
Value of shares repurchased | $	$ 0	$ 0	$ 109,694	$ 44,335
Shares distributed | shares	0		8,103

Employee Stock Ownership Plan26

Employee Stock Ownership Plan (Schedule of ESOP shares) (Details) - USD ($)	Mar. 31, 2018	Mar. 31, 2017
Employee Stock Ownership Plan [Abstract]
Allocated shares	443,198	439,432
Committed-to-be-released shares	11,875	12,500
Unreleased shares	33,125	49,167
Total shares held by the ESOP	488,198	501,099
Fair value of unreleased shares	$ 867,875	$ 1,130,841