Espey Mfg. & Electronics (ESP) 10-Q 16 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	ESPEY MFG & ELECTRONICS CORP
Entity Central Index Key	0000033533
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
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	Q1
Document Fiscal Year Focus	2021
Entity Common Stock, Shares Outstanding		2,402,633
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	1-4383
Entity Incorportion, State or Country Code	NY
Entity Shell Company	false

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2020	Jun. 30, 2020
ASSETS:
Cash and cash equivalents	$ 9,070,570	$ 5,402,122
Investment securities	2,828,857	5,141,520
Trade accounts receivable, net of allowance of $3,000	6,375,993	9,013,405
Income tax receivable	19,099
Inventories:
Raw materials	2,040,521	2,057,778
Work-in-process	278,422	614,521
Costs related to contracts in process	13,631,804	12,115,756
Total inventories	15,950,747	14,788,055
Prepaid expenses and other current assets	648,330	396,886
Total current assets	34,893,596	34,741,988
Property, plant and equipment, net	3,350,037	3,466,778
Total assets	38,243,633	38,208,766
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable	2,671,522	2,861,696
Accrued expenses:
Salaries and wages	484,912	469,201
Vacation	677,547	689,834
Dividends	600,658
Other	160,781	318,322
Payroll and other taxes withheld	323,525	186,970
Contract liabilities	2,247,848	2,175,235
Income taxes payable		47,707
Total current liabilities	7,166,793	6,748,965
Deferred tax liabilities	215,333	232,953
Total liabilities	7,382,126	6,981,918
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 September 30, 2020 and June 30, 2020. Outstanding 2,402,633 as of September 30, 2020 and June 30, 2020	1,009,958	1,009,958
Capital in excess of par value	19,120,380	19,073,213
Accumulated other comprehensive loss	(4,781)	(3,107)
Retained earnings	18,386,755	18,797,589
Total stockholders equity before ESOP	38,512,312	38,877,653
Less: Cost of 627,241 shares of common stock in treasury as of September 30, 2020 and June 30, 2020	(7,650,805)	(7,650,805)
Total stockholders' equity	30,861,507	31,226,848
Total liabilities and stockholders' equity	$ 38,243,633	$ 38,208,766

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
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	2,402,633	2,402,633
Treasury stock, shares	627,241	627,241

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 7,265,515	$ 5,923,819
Cost of sales	6,138,141	4,787,471
Gross profit	1,127,374	1,136,348
Selling, general and administrative expenses	914,626	1,084,212
Operating income	212,748	52,136
Other income:
Interest income	15,217	32,161
Other	3,128	15,328
Total other income	18,345	47,489
Income before provision for income taxes	231,093	99,625
Provision for income taxes	41,269	17,849
Net income	189,824	81,776
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on investment securities	(1,674)	197
Total comprehensive income	$ 188,150	$ 81,973
Net income per share:
Basic	$ 0.08	$ 0.03
Diluted	$ 0.08	$ 0.03
Weighted average number of shares outstanding:
Basic	2,402,633	2,387,408
Diluted	2,402,633	2,396,256
Dividends per share:	$ 0.25	$ 0.25

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Capital in Excess of Par Value [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Unearned ESOP Shares [Member]	Total
Balance, beginning at Jun. 30, 2019	$ 1,009,958	$ 18,731,975	$ (1,299)	$ 20,022,132	$ (7,632,556)	$ (204,706)	$ 31,925,504
Balance, beginning, shares at Jun. 30, 2019	2,401,213				628,661
Net income				81,776			81,776
Other comprehensive income (loss), net of tax			197				197
Total comprehensive income							81,973
Stock options exercised		33,780			$ 16,500		50,280
Stock options exercised, shares	2,000				(2,000)
Stock-based compensation		47,176					47,176
Dividends declared on common stock				(597,260)			(597,260)
Purchase of treasury stock					$ (8,291)		(8,291)
Purchase of treasury stock, shares	(333)				333
Balance, ending at Sep. 30, 2019	$ 1,009,958	18,812,931	(1,102)	19,506,648	$ (7,624,347)	(204,706)	31,499,382
Balance, ending, common shares at Sep. 30, 2019	2,402,880				626,994
Balance, beginning at Jun. 30, 2020	$ 1,009,958	19,073,213	(3,107)	18,797,589	$ (7,650,805)		$ 31,226,848
Balance, beginning, shares at Jun. 30, 2020	2,402,633				627,241		2,402,633
Net income				189,824			$ 189,824
Other comprehensive income (loss), net of tax			(1,674)				(1,674)
Total comprehensive income							$ 188,150
Stock options exercised, shares
Stock-based compensation		47,167					$ 47,167
Dividends declared on common stock				(600,658)			(600,658)
Balance, ending at Sep. 30, 2020	$ 1,009,958	$ 19,120,380	$ (4,781)	$ 18,386,755	$ (7,650,805)		$ 30,861,507
Balance, ending, common shares at Sep. 30, 2020	2,402,633				627,241		2,402,633

Statements of Changes in Stoc_2

Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Other comprehensive income, tax portion	$ (445)	$ 52
Dividends paid per share	$ 0.25	$ 0.25

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net income	$ 189,824	$ 81,776
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	47,167	47,176
Depreciation	136,548	142,798
ESOP compensation expense		87,833
Deferred income tax benefit	(17,175)	(8,688)
Changes in assets and liabilities:
Decrease in trade accounts receivable, net	2,637,412	4,346,797
Increase in income tax receivable	(19,099)	(93,981)
Increase in inventories, net	(1,162,692)	(1,612,900)
(Increase) decrease in prepaid expenses and other current assets	(251,444)	230,260
Decrease in accounts payable	(190,174)	(83,979)
Increase in accrued salaries and wages	15,711	102,634
Decrease in vacation accrual	(12,287)	(111,016)
Decrease in ESOP payable		(3,542)
Decrease in other accrued expenses	(157,541)	(25,245)
Increase (decrease) in payroll and other taxes withheld	136,555	(651)
Increase in contract liabilities	72,613	660,780
Decrease in income taxes payable	(47,707)	(30,481)
Net cash provided by operating activities	1,377,711	3,729,571
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(19,807)	(94,070)
Purchase of investment securities	(292,119)	(2,468,751)
Proceeds from sale/maturity of investment securities	2,602,663	2,581,496
Net cash provided by investing activities	2,290,737	18,675
Cash Flows from Financing Activities:
Dividends on common stock		(597,260)
Purchase of treasury stock		(8,291)
Proceeds from exercise of stock options		50,280
Net cash used in financing activities		(555,271)
Increase in cash and cash equivalents	3,668,448	3,192,975
Cash and cash equivalents, beginning of period	5,402,122	1,462,761
Cash and cash equivalents, end of period	9,070,570	4,655,736
Supplemental Schedule of Cash Flow Information:
Income taxes paid	125,250	151,000
Supplemental Schedule of Non-cash Financing Activities
Accrual of dividends	$ 600,658

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2020
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. 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. (the Company's) 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 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, 2020. 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
	Sep. 30, 2020
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 September 30, 2020 and June 30, 2020 because of the immediate or short-term maturity of these financial instruments. Investment securities at September 30, 2020 and June 30, 2020 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 September 30, 2020 and June 30, 2020 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020 Certificates of deposit $ 2,451,000 $ — $ — $ 2,451,000 Municipal bonds 380,921 780 (3,844 ) 377,857 Total investment securities $ 2,831,921 $ 780 $ (3,844 ) $ 2,828,857 June 30, 2020 Certificates of deposit $ 4,679,847 $ — $ — $ 4,679,847 Municipal bonds 462,618 1,243 (2,188 ) 461,673 Total investment securities $ 5,142,465 $ 1,243 $ (2,188 ) $ 5,141,520 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At September 30, 2020, 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, 2020 and June 30, 2020, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total September 30, 2020 Available-for-sale $ 2,828,857 $ — $ 2,828,857 June 30, 2020 Available-for-sale $ 5,141,520 $ — $ 5,141,520

Net Income per Share

Net Income per Share	3 Months Ended
	Sep. 30, 2020
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 254,762 and 190,639 shares of our common stock for the three months ended September 30, 2020 and 2019, 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	3 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [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, 2020 and 2019 was $47,167 and $47,176, respectively, before income taxes. The related total deferred tax benefits were $2,727 and $2,578 for the same periods. As of September 30, 2020, there was $100,157 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 1.25 years. The total deferred tax benefit related to these awards is expected to be $5,876. 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 164,329 have been granted as of September 30, 2020. While no further grants of options may be made under the Company’s 2007 Stock Option and Restricted Stock Plan, as of September 30, 2020, 119,750 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. There were no options awarded for the three months ended September 30, 2020 and 2019. The Company declares regular dividends quarterly and declared a first quarter regular cash dividends of $0.25 per share for the three months ended September 30, 2020. The Company declared and paid a first quarter regular cash dividends of $0.25 per share for the three months ended September 30, 2019. 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 term (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 three months ended September 30, 2020: 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, 2020 276,712 $ 24.30 6.10 Granted — — — Exercised — — — Forfeited or expired (21,950 ) $ 21.02 — Outstanding at September 30, 2020 254,762 $ 24.58 6.08 $ 0 Vested or expected to vest at September 30, 2020 240,227 $ 24.64 5.92 $ 0 Exercisable at September 30, 2020 160,620 $ 25.07 4.54 $ 0 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, 2020 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, 2020. 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 three months ended September 30, 2020 and 2019 were $0 and $263, respectively. The following table summarizes changes in non-vested stock options during the three months ended September 30, 2020: Number Weighted Average of Shares Grant Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2020 97,192 $ 4.034 Granted — — Vested — — Forfeited or expired (3,050 ) $ 3.618 Non-vested at September 30, 2020 94,142 $ 4.048

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2020
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 September 30, 2020 and June 30, 2020. 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. Currently, there are no matters pending.

Revenue

Revenue	3 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Note 6. Revenue The company follows Accounting Standards Codification (“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 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 months ended September 30, 2020 based on units delivered was $5,858,706 compared to $5,118,314 for the same period in fiscal year 2020. Total revenue recognized for the three months ended September 30, 2020 based on milestones achieved was $1,406,809 compared to $805,505 for the same periods in fiscal year 2020. 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, 2020. Our payment terms are generally 30-60 days. Contract liabilities were $2,247,848 and $ 2,175,235 as of September 30, 2020 and June 30, 2020, respectively. The increase in contract liabilities is primarily due to cash collected from a progress payment related to a specific contract. 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, 2020 totaling $62 million is expected to be recognized in the following fiscal years: 43% in 2021; 40% in 2022; 11% in 2023, and 6% thereafter.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Sep. 30, 2020
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 7. Recently Issued Accounting Standards Recent Accounting Pronouncements Adopted 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 does not have a material effect on the Company’s financial position, results of operations, and cash flows as our investments are currently Level 1. We will, however, continue to evaluate going forward should we obtain any Level 3 investments. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued guidance (ASU 2019-12) intended to simplify the accounting for income taxes. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 (the Company’s fiscal 2022), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
	Sep. 30, 2020
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 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. Effective June 30, 2020, the loan from the Company to the ESOP was paid in full and all shares have been allocated to participants accounts. ESOP compensation expense was $0 for the three months ended September 30, 2020 and $87,833 for the three month periods ended September 30, 2019. It is the Company’s intention to continue the program with an additional purchase of shares by the ESOP from the Company during fiscal 2021. The ESOP shares as of September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Allocated shares 469,119 454,610 Committed-to-be-released shares — 3,542 Unreleased shares — 10,624 Total shares held by the ESOP 469,119 468,776 Fair value of unreleased shares $ — $ 252,001 The Company may at times be required to repurchase shares at the ESOP participants’ request at the fair market value. During the three months ended September 30, 2020, the Company did not repurchase any shares. During the three months ended September 30, 2019, the Company repurchased 333 shares previously held in the ESOP for $8,291. 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. There were no share distributions from the ESOP during the three months ended September 30, 2020 and 2019.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020 Certificates of deposit $ 2,451,000 $ — $ — $ 2,451,000 Municipal bonds 380,921 780 (3,844 ) 377,857 Total investment securities $ 2,831,921 $ 780 $ (3,844 ) $ 2,828,857 June 30, 2020 Certificates of deposit $ 4,679,847 $ — $ — $ 4,679,847 Municipal bonds 462,618 1,243 (2,188 ) 461,673 Total investment securities $ 5,142,465 $ 1,243 $ (2,188 ) $ 5,141,520
Schedule of Contractual Maturities	As of September 30, 2020 and June 30, 2020, the remaining contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total September 30, 2020 Available-for-sale $ 2,828,857 $ — $ 2,828,857 June 30, 2020 Available-for-sale $ 5,141,520 $ — $ 5,141,520 Note 3. Net Income per Share

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	The following table summarizes stock option activity during the three months ended September 30, 2020: 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, 2020 276,712 $ 24.30 6.10 Granted — — — Exercised — — — Forfeited or expired (21,950 ) $ 21.02 — Outstanding at September 30, 2020 254,762 $ 24.58 6.08 $ 0 Vested or expected to vest at September 30, 2020 240,227 $ 24.64 5.92 $ 0 Exercisable at September 30, 2020 160,620 $ 25.07 4.54 $ 0
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, 2020: Number Weighted Average of Shares Grant Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2020 97,192 $ 4.034 Granted — — Vested — — Forfeited or expired (3,050 ) $ 3.618 Non-vested at September 30, 2020 94,142 $ 4.048

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
	Sep. 30, 2020
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP shares	The ESOP shares as of September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Allocated shares 469,119 454,610 Committed-to-be-released shares — 3,542 Unreleased shares — 10,624 Total shares held by the ESOP 469,119 468,776 Fair value of unreleased shares $ — $ 252,001

Investment Securities (Schedule

Investment Securities (Schedule of Available-for-Sale Securities) (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,831,921	$ 5,142,465
Gross Unrealized Gains	780	1,243
Gross Unrealized Losses	(3,844)	(2,188)
Fair Value	2,828,857	5,141,520
Certificates of Deposit [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,451,000	4,679,847
Fair Value	2,451,000	4,679,847
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	380,921	462,618
Gross Unrealized Gains	780	1,243
Gross Unrealized Losses	(3,844)	(2,188)
Fair Value	$ 377,857	$ 461,673

Investment Securities (Schedu_2

Investment Securities (Schedule of Contractual Maturities) (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Contractual maturities of available-for-sale securities
Less than One Year	$ 2,828,857	$ 5,141,520
One to Five Years
Fair Value	$ 2,828,857	$ 5,141,520

Net Income per Share (Details)

Net Income per Share (Details) - shares	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Net Income per Share [Abstract]
Anti-dilutive securities	254,762	190,639

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 47,167	$ 47,176
Deferred tax benefit related to stock based compensation	2,727	$ 2,578
Unrecognized compensation costs	$ 100,157
Period in which compensation cost will be recognized	1 year 2 months 30 days
Deferred tax benefit related to unrecognized compensation costs	$ 5,876
Granted
Outstanding	254,762		276,712
Cash divided paid	$ 0.25	$ 0.25
Total intrinsic values of the options exercised	$ 0	$ 263
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
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
Granted	164,329
Stock Option Plans [Member] | 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	119,750

Stock Based Compensation (Sched

Stock Based Compensation (Schedule of Stock Option Activity) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020
Number of Shares Subject To Options
Balance at July 1, 2020	276,712
Granted
Exercised
Forfeited or expired	(21,950)
Outstanding at September 30, 2020	254,762	276,712
Vested or expected to vest at September 30, 2020	240,227
Exercisable at September 30, 2020	160,620
Weighted Average Exercise Price
Balance at July 1, 2020	$ 24.30
Granted
Exercised
Forfeited or expired	21.02
Outstanding at September 30, 2020	24.58	$ 24.30
Vested or expected to vest at September 30, 2020	24.64
Exercisable at September 30, 2020	$ 25.07
Weighted Average Remaining Contractual Term
Outstanding	6 years 29 days	6 years 1 month 6 days
Vested or expected to vest at September 30, 2020	5 years 11 months 1 day
Exercisable at September 30, 2020	4 years 6 months 14 days
Aggregate Intrinsic Value
Outstanding at September 30, 2020	$ 0
Vested or expected to vest at September 30, 2020	0
Exercisable at September 30, 2020	$ 0

Stock Based Compensation (Sch_2

Stock Based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details)	3 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of Shares Subject to Option
Non-vested at July 1, 2020 | shares	97,192
Granted | shares
Vested | shares
Forfeited or expired | shares	(3,050)
Non-vested at September 30, 2020 | shares	94,142
Weighted Average Grant Date Fair Value (per Option)
Non-vested at July 1, 2020 | $ / shares	$ 4.034
Granted | $ / shares
Vested | $ / shares
Forfeited or expired | $ / shares	3.618
Non-vested at September 30, 2020 | $ / shares	$ 4.048

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Standby Letters of Credit [Member]
Contingent liabilities	$ 0	$ 0

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Item Effected [Line Items]
Revenue	$ 7,265,515	$ 5,923,819
ASC 606 [Member]
Item Effected [Line Items]
Contract liabilities	2,247,848		$ 2,175,235
ASC 606 [Member] | Backlog [Member]
Item Effected [Line Items]
Intangible assets	$ 62,000,000
Percentage of estimated shipments	43% in 2021; 40% in 2022; 11% in 2023, and 6% thereafter.
ASC 606 [Member] | Units Delivered [Member]
Item Effected [Line Items]
Revenue	$ 5,858,706	5,118,314
ASC 606 [Member] | Milestones Achieved [Member]
Item Effected [Line Items]
Revenue	$ 1,406,809	$ 805,505

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan (Narrative) (Details)	3 Months Ended
	Sep. 30, 2020USD ($)h	Sep. 30, 2019USD ($)shares
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
ESOP compensation expense		$ 87,833
Value of shares repurchased		$ 8,291
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		333
Value of shares repurchased		$ 8,291

Employee Stock Ownership Plan_3

Employee Stock Ownership Plan (Schedule of ESOP shares) (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019
Employee Stock Ownership Plan [Abstract]
Allocated shares	469,119	454,610
Committed-to-be-released shares		3,542
Unreleased shares		10,624
Total shares held by the ESOP	469,119	468,776
Fair value of unreleased shares		$ 252,001