Espey Mfg. & Electronics (ESP) 10-Q 13 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 13, 2019
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	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,019
Entity Common Stock, Shares Outstanding		2,399,123

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2018	Jun. 30, 2018
ASSETS:
Cash and cash equivalents	$ 3,311,856	$ 4,298,796
Investment securities	5,788,145	11,520,706
Trade accounts receivable, net of allowance of $3,000	5,647,871	4,377,726
Income tax receivable	278,056	161,975
Inventories:
Raw materials	1,687,775	1,562,581
Work-in-process	880,719	966,342
Costs related to contracts in process	13,166,474	8,880,003
Total inventories	15,734,968	11,408,926
Prepaid expenses and other current assets	170,389	1,292,575
Total current assets	30,931,285	33,060,704
Property, plant and equipment, net	3,857,384	3,758,637
Total assets	34,788,669	36,819,341
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable	2,606,801	1,822,597
Accrued expenses:
Salaries and wages	493,711	529,005
Vacation	715,691	707,612
ESOP payable	160,060
Other	152,871	104,663
Payroll and other taxes withheld	54,807	53,435
Contract liabilities	6,054	102,924
Total current liabilities	4,189,995	3,320,236
Deferred tax liabilities	108,314	17,693
Total liabilities	4,298,309	3,337,929
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 December 31, 2018 and June 30, 2018. Outstanding 2,396,323 and 2,387,124 as of December 31, 2018 and June 30, 2018, respectively (includes 21,666 and 29,166 Unearned ESOP shares, respectively)	1,009,958	1,009,958
Capital in excess of par value	18,403,798	18,201,691
Accumulated other comprehensive loss	(4,095)	(6,349)
Retained earnings	19,145,095	22,416,400
Total stockholders equity before ESOP	38,554,756	41,621,700
Less: Unearned ESOP shares	(421,453)	(421,453)
Cost of 633,551 and 642,750 shares of common stock in treasury as of December 31, 2018 and June 30, 2018, respectively	(7,642,943)	(7,718,835)
Total stockholders' equity	30,490,360	33,481,412
Total liabilities and stockholders' equity	$ 34,788,669	$ 36,819,341

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Trade accounts receivable, allowance	$ 3,000	$ 3,000
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	2,396,323	2,387,124
Unearned ESOP, shares	21,666	29,166
Treasury stock, shares	633,551	642,750

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 7,303,109	$ 11,531,105	$ 15,640,508	$ 19,027,528
Cost of sales	5,786,874	8,455,507	13,131,339	14,490,776
Gross profit	1,516,235	3,075,598	2,509,169	4,536,752
Selling, general and administrative expenses	1,295,687	982,370	2,305,231	1,861,190
Operating income	220,548	2,093,228	203,938	2,675,562
Other income
Interest income	42,376	35,653	94,775	66,877
Other	10,985	7,636	34,657	17,808
Total other income	53,361	43,289	129,432	84,685
Income before provision for income taxes	273,909	2,136,517	333,370	2,760,247
Provision for income taxes	56,151	521,646	53,940	702,612
Net income	217,758	1,614,871	279,430	2,057,635
Other comprehensive income, net of tax:
Unrealized gain (loss) on investment securities	907	(569)	2,254	(850)
Total comprehensive income	$ 218,665	$ 1,614,302	$ 281,684	$ 2,056,785
Net income per share:
Basic	$ 0.09	$ 0.69	$ 0.12	$ 0.88
Diluted	$ 0.09	$ 0.69	$ 0.12	$ 0.88
Weighted average number of shares outstanding:
Basic	2,370,948	2,327,562	2,365,220	2,326,963
Diluted	2,393,933	2,335,293	2,388,002	2,333,764
Dividends per share:	$ 0.25	$ 0.25	$ 1.5	$ 0.50

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 279,430	$ 2,057,635
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Bad debt expense	69,010
Stock-based compensation	77,876	50,470
Depreciation	256,186	211,193
ESOP compensation expense	203,809	179,038
Deferred income tax expense	91,220	6,565
Changes in assets and liabilities:
Increase in trade receivable, net	(1,339,155)	(2,158,887)
Increase in income taxes receivable	(116,081)
(Increase) decrease in inventories, net	(4,326,042)	736,921
Decrease (increase) in prepaid expenses and other current assets	1,122,186	(25,471)
Increase (decrease) in accounts payable	784,204	(953,181)
(Decrease) increase in accrued salaries and wages	(35,294)	232,337
Increase (decrease) in vacation accrual	8,079	(26,291)
Decrease in ESOP payable	(43,749)	(22,500)
Increase (decrease) in other accrued expenses	48,208	(129,873)
Increase in payroll and other taxes withheld	1,372	3,757
Decrease in contract liabilities	(96,870)
Increase in income tax payable		435,131
Net cash (used in) provided by operating activities	(3,015,611)	596,844
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(354,933)	(185,190)
Purchase of investment securities	(3,103,004)	(4,696,925)
Proceeds from sale/maturity of investment securities	8,837,220	2,701,431
Net cash provided by (used in) investing activities	5,379,283	(2,180,684)
Cash Flows from Financing Activities:
Dividends on common stock	(3,550,735)	(1,162,382)
Purchase of treasury stock		(109,694)
Proceeds from exercise of stock options	200,123
Net cash used in financing activities	(3,350,612)	(1,272,076)
Decrease in cash and cash equivalents	(986,940)	(2,855,916)
Cash and cash equivalents, beginning of period	4,298,796	10,058,163
Cash and cash equivalents, end of period	3,311,856	7,202,247
Supplemental Schedule of Cash Flow Information:
Income taxes paid	$ 80,000	$ 260,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 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, 2018. Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation.

Investment Securities

Investment Securities	6 Months Ended
	Dec. 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 December 31, 2018 and June 30, 2018 because of the immediate or short-term maturity of these financial instruments. Investment securities at December 31, 2018 and June 30, 2018 consist of certificates of deposit 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 December 31, 2018 and June 30, 2018 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2018 Certificates of deposit $ 5,198,627 $ — $ — $ 5,198,627 Municipal bonds 591,713 252 (2,447 ) 589,518 Total investment securities $ 5,790,340 $ 252 $ (2,447 ) $ 5,788,145 June 30, 2018 Certificates of deposit $ 10,440,000 $ — $ — $ 10,440,000 Municipal bonds 1,085,754 635 (5,683 ) 1,080,706 Total investment securities $ 11,525,754 $ 635 $ (5,683 ) $ 11,520,706 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At December 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 December 31, 2018 and June 30, 2018, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total December 31, 2018 Available-for-sale $ 5,496,025 $ 292,120 $ 5,788,145 June 30, 2018 Available-for-sale $ 10,967,300 $ 553,406 $ 11,520,706

Net Income per Share

Net Income per Share	6 Months Ended
	Dec. 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 2,500 and 150,550 shares of our common stock for the three and six months ended December 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	6 Months Ended
	Dec. 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 December 31, 2018 and 2017 was $40,504 and $29,048, respectively, before income taxes. The related total deferred tax benefits were approximately $2,246 and $1,602 for the same periods. Total stock-based compensation expense recognized in the statements of comprehensive income for the six-month periods ended December, 2018 and 2017, was $77,876 and $50,470, respectively, before income taxes. The related total deferred tax benefits were approximately $4,280 and $2,771 for the same periods. As of December 31, 2018, there was approximately $292,100 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 $16,128. 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, of which 109,804 have been granted as of December 31, 2018. While no further grants of options may be made under the Company’s 2007 Stock Option and Restricted Stock Plan, as of December 31, 2018, 161,650 options were outstanding under such plan of which are all 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 six months ended December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Dividend yield 3.68% 4.60% Company’s expected volatility 27.63% 23.97% Risk-free interest rate 2.70% 1.95% Expected term 5.2 yrs 4.7 yrs Weighted average fair value per share of options granted during the period $ 5.14 $ 2.79 The Company declares regular dividends quarterly and declared and paid regular cash dividends of $0.50 per share and a special cash dividend of $1.00 per share for the six months ended December 31, 2018. The company declared and paid regular cash dividends of $0.50 per share for the six months ended December 31, 2017. 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 six months ended December 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, 2018 222,854 $ 24.29 6.26 Granted 55,089 $ 27.20 9.94 Exercised (9,199 ) $ 21.75 — Forfeited or expired (1,555 ) $ 25.19 — Outstanding at December 31, 2018 267,189 $ 24.97 6.71 $ 282,645 Vested or expected to vest at December 31, 2018 251,262 $ 24.98 6.54 $ 260,376 Exercisable at December 31, 2018 161,650 $ 25.09 4.95 $ 132,566 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 December 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 December 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 six months ended December 31, 2018 and 2017 were $64,420 and $0, respectively. The following table summarizes changes in non-vested stock options during the six months ended December 31, 2018: Number Weighted Average of Shares Grant Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2018 87,605 $ 3.649 Granted 55,089 $ 5.133 Vested (36,350 ) $ 4.640 Forfeited or expired (805 ) $ 3.594 Non-vested at December 31, 2018 105,539 $ 4.083

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [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 December 31, 2018 and June 30, 2018. 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. While the results of such matters cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse effect on our business, financial condition, results of operations or cash flows.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Dec. 31, 2018
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 6. Recently Issued Accounting Standards Recent Accounting Pronouncements Adopted Effective July 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC) 606 “Revenue from Contracts with Customers”, which 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. We adopted ASC 606 using the modified retrospective method, which means, using the allowed practical expedient, we applied the new standard to open contracts at June 30, 2018. We reviewed remaining obligations as of the effective date and determined no adjustment was required to the opening balance of retained earnings. Under the modified retrospective method, prior period revenue is not restated for comparative periods. As a result of the adoption, we reclassified customer advance payments from inventory to contract liabilities. Contract liabilities were $6,054 and $102,924 as of December 31, 2018 and June 30, 2018, respectively. The decrease in contract liabilities is due to the recognition of revenue related to certain amounts previously collected and included in contract liabilities. The company used the practical expedient to expense incremental costs incurred to obtain a contract when the contract term is less than one year. 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 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 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 and six months ended December 31, 2018 based on units delivered totaled $6,020,415 and $12,873,185, respectively, compared to $10,403,395 and $17,470,048 for the same periods in 2017. Total revenue recognized for the three and six months ended December 31, 2018 based on milestones achieved totaled $1,282,694 and $2,767,323, respectively, compared to $1,127,710 and $1,557,480 for the same periods in 2017. 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 December 31, 2018. Our payment terms are generally 30-60 days. The company estimates that approximately $11.5 million of the company’s backlog at December 31, 2018 will be recognized after December 31, 2019. Estimated shipments of this backlog are expected in the following fiscal years: 40% in 2020; 38% in 2021, and 22% in 2022. Prior to the adoption of ASC 606, we recognized the majority of our revenues in accordance with ASC Topic 605 “Revenue Recognition ” Recent Accounting Pronouncements Not Yet Adopted 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. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU is part of the FASB’s larger disclosure framework project intended to improve the effectiveness of financial statement footnote disclosure. ASU 2018-13 modifies required fair value disclosures related primarily to level 3 investments. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The adoption of ASU 2018-13 is not expected to have a material effect on the Company’s consolidated financial position, results of operations, and cash flows.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	6 Months Ended
	Dec. 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 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 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 $102,448 and $89,578 for the three-month periods ended December 31, 2018 and 2017, respectively. ESOP compensation expense was $203,809 and $179,038 for the six-month periods ended December 31, 2018 and 2017, respectively The ESOP shares as of December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Allocated shares 441,753 443,198 Committed-to-be-released shares 7,500 7,917 Unreleased shares 21,666 37,083 Total shares held by the ESOP 470,919 488,198 Fair value of unreleased shares $ 539,917 $ 888,509 The Company may at times be required to repurchase shares at the ESOP participants’ request at the fair market value. During the three and six months ended December 31, 2018 the Company did not repurchase any shares held by the ESOP. During the three and six months ended December 31, 2017 the Company repurchased 4,798 shares previously held in the ESOP for $109,694. 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 six months ended December 31, 2018 and 2017 totaled 17,279 and 8,103, respectively.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities	Investment securities at December 31, 2018 and June 30, 2018 consist of certificates of deposit 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 December 31, 2018 and June 30, 2018 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2018 Certificates of deposit $ 5,198,627 $ — $ — $ 5,198,627 Municipal bonds 591,713 252 (2,447 ) 589,518 Total investment securities $ 5,790,340 $ 252 $ (2,447 ) $ 5,788,145 June 30, 2018 Certificates of deposit $ 10,440,000 $ — $ — $ 10,440,000 Municipal bonds 1,085,754 635 (5,683 ) 1,080,706 Total investment securities $ 11,525,754 $ 635 $ (5,683 ) $ 11,520,706
Schedule of Contractual Maturities	As of December 31, 2018 and June 30, 2018, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total December 31, 2018 Available-for-sale $ 5,496,025 $ 292,120 $ 5,788,145 June 30, 2018 Available-for-sale $ 10,967,300 $ 553,406 $ 11,520,706

Stock Based Compensation (Table

Stock Based Compensation (Tables)	6 Months Ended
	Dec. 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 six months ended December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Dividend yield 3.68% 4.60% Company’s expected volatility 27.63% 23.97% Risk-free interest rate 2.70% 1.95% Expected term 5.2 yrs 4.7 yrs Weighted average fair value per share of options granted during the period $ 5.14 $ 2.79
Schedule of Stock Option Activity	The following table summarizes stock option activity during the six months ended December 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, 2018 222,854 $ 24.29 6.26 Granted 55,089 $ 27.20 9.94 Exercised (9,199 ) $ 21.75 — Forfeited or expired (1,555 ) $ 25.19 — Outstanding at December 31, 2018 267,189 $ 24.97 6.71 $ 282,645 Vested or expected to vest at December 31, 2018 251,262 $ 24.98 6.54 $ 260,376 Exercisable at December 31, 2018 161,650 $ 25.09 4.95 $ 132,566

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	6 Months Ended
	Dec. 31, 2018
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP shares	The ESOP shares as of December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Allocated shares 441,753 443,198 Committed-to-be-released shares 7,500 7,917 Unreleased shares 21,666 37,083 Total shares held by the ESOP 470,919 488,198 Fair value of unreleased shares $ 539,917 $ 888,509

Investment Securities (Schedule

Investment Securities (Schedule of Available-for-Sale Securities) (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 5,790,340	$ 11,525,754
Gross Unrealized Gains	252	635
Gross Unrealized Losses	(2,447)	(5,683)
Fair Value	5,788,145	11,520,706
Certificates of Deposit [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,198,627	10,440,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	5,198,627	10,440,000
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	591,713	1,085,754
Gross Unrealized Gains	252	635
Gross Unrealized Losses	(2,447)	(5,683)
Fair Value	$ 589,518	$ 1,080,706

Investment Securities (Schedu_2

Investment Securities (Schedule of Contractual Maturities) (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Contractual maturities of available-for-sale securities
Less than One Year	$ 5,496,025	$ 10,967,300
One to Five Years	292,120	553,406
Fair Value	$ 5,788,145	$ 11,520,706

Net Income per Share (Details)

Net Income per Share (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Net Income per Share [Abstract]
Anti-dilutive securities	2,500	150,550	2,500	150,550

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 40,504	$ 29,048	$ 77,876	$ 50,470
Deferred tax benefit related to stock based compensation	2,246	$ 1,602	4,280	$ 2,771
Unrecognized compensation costs	292,100		$ 292,100
Period in which compensation cost will be recognized			2 years
Deferred tax benefit related to unrecognized compensation costs	$ 16,128		$ 16,128
Granted			55,089
Outstanding	267,189		267,189		222,854
Cash divided paid			$ 0.50	$ 0.50
Special cash divided paid			$ 1
Total intrinsic values of the options exercised			$ 64,420	$ 0
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		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		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		15,000
Stock Option Plans [Member] | 2017 Plan [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		400,000
Granted			109,804
Stock Option Plans [Member] | 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	161,650		161,650

Stock Based Compensation (Sched

Stock Based Compensation (Schedule of weighted average assumptions for option awards) (Details) - $ / shares	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted Average Assumptions
Dividend yield	3.68%	4.60%
Company's expected volatility	27.63%	23.97%
Risk-free interest rate	2.70%	1.95%
Expected term	5 years 2 months 12 days	4 years 8 months 12 days
Weighted average fair value per share of options granted during the period	$ 5.14	$ 2.79

Stock Based Compensation (Sch_2

Stock Based Compensation (Schedule of Stock Option Activity) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Number of Shares Subject To Options
Balance at July 1, 2018	222,854
Granted	55,089
Exercised	(9,199)
Forfeited or expired	(1,555)
Outstanding at December 31, 2018	267,189	222,854
Vested or expected to vest at December 31, 2018	251,262
Exercisable at December 31, 2018	161,650
Weighted Average Exercise Price
Balance at July 1, 2018	$ 24.29
Granted	27.20
Exercised	21.75
Forfeited or expired	25.19
Outstanding at December 31, 2018	24.97	$ 24.29
Vested or expected to vest at December 31, 2018	24.98
Exercisable at December 31, 2018	$ 25.09
Weighted Average Remaining Contractual Term
Outstanding	6 years 8 months 16 days	6 years 3 months 4 days
Granted	9 years 11 months 8 days
Vested or expected to vest at December 31, 2018	6 years 6 months 14 days
Exercisable at December 31, 2018	4 years 11 months 12 days
Aggregate Intrinsic Value
Outstanding at December 31, 2018	$ 282,645
Vested or expected to vest at December 31, 2018	260,376
Exercisable at December 31, 2018	$ 132,566

Stock Based Compensation (Sch_3

Stock Based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details)	6 Months Ended
	Dec. 31, 2018$ / sharesshares
Number of Shares Subject to Option
Non-vested at July 1, 2018 | shares	87,605
Granted | shares	55,089
Vested | shares	(36,350)
Forfeited or expired | shares	(805)
Non-vested at December 31, 2018 | shares	105,539
Weighted Average Grant Date Fair Value (per Option)
Non-vested at July 1, 2018 | $ / shares	$ 3.649
Granted | $ / shares	5.133
Vested | $ / shares	4.640
Forfeited or expired | $ / shares	3.594
Non-vested at December 31, 2018 | $ / shares	$ 4.083

Commitments and Contingencies (

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

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Jun. 30, 2018
Item Effected [Line Items]
Revenue	$ 7,303,109	$ 11,531,105	$ 15,640,508	$ 19,027,528
ASC 606 [Member]
Item Effected [Line Items]
Contract liabilities	6,054		$ 6,054			$ 102,924
ASC 606 [Member] | Backlog [Member]
Item Effected [Line Items]
Percentage of estimated shipments			40% in 2020; 38% in 2021, and 22% in 2022.
ASC 606 [Member] | Units Delivered [Member]
Item Effected [Line Items]
Revenue	6,020,415	10,403,395	$ 12,873,185	17,470,048
ASC 606 [Member] | Milestones Achieved [Member]
Item Effected [Line Items]
Revenue	$ 1,282,694	$ 1,127,710	$ 2,767,323	$ 1,557,480
ASC 606 [Member] | Forecast [Member] | Backlog [Member]
Item Effected [Line Items]
Intangible assets					$ 11,500,000

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan (Narrative) (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)shares	Dec. 31, 2018USD ($)hshares	Dec. 31, 2017USD ($)shares
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
ESOP compensation expense | $	$ 102,448	$ 89,578	$ 203,809	$ 179,038
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 distributed | shares			17,279	8,103
Shares repurchased | shares		4,798		4,798
Value of shares repurchased | $		$ 109,694		$ 109,694

Employee Stock Ownership Plan_3

Employee Stock Ownership Plan (Schedule of ESOP shares) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Employee Stock Ownership Plan [Abstract]
Allocated shares	441,753	443,198
Committed-to-be-released shares	7,500	7,917
Unreleased shares	21,666	37,083
Total shares held by the ESOP	470,919	488,198
Fair value of unreleased shares	$ 539,917	$ 888,509