Espey Mfg. & Electronics (ESP) 10-Q 15 Nov 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2021	Nov. 11, 2021
Cover [Abstract]
Document Type	10-Q
Entity Central Index Key	0000033533
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2021
Document Quarterly Report	true
Document Transition Report	false
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity File Number	1-4383
Entity Registrant Name	ESPEY MFG. & ELECTRONICS CORP.
Entity Incorportion, State or Country Code	NY
Entity Tax Identification Number	14-1387171
Entity Address, Address Line One	233 Ballston Avenue, Saratoga Springs
Entity Address, Address Line Two	New York 12866
Entity Address, City or Town	NY
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12866
City Area Code	518
Local Phone Number	245-4400
Title of 12(b) Security	Common stock, $.33-1/3 par value
Trading Symbol	ESP
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,702,633

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2021	Jun. 30, 2021
ASSETS:
Cash and cash equivalents	$ 8,298,714	$ 6,802,712
Investment securities	3,138,000	3,092,000
Trade accounts receivable, net of allowance of $3,000	4,281,665	5,353,781
Income tax receivable	159,935	249,602
Inventories:
Raw materials	2,058,415	2,111,058
Work-in-process	274,989	326,198
Costs related to contracts in process	16,451,150	16,354,636
Total inventories	18,784,554	18,791,892
Prepaid expenses and other current assets	481,991	700,297
Total current assets	35,144,859	34,990,284
Property, plant and equipment, net	2,914,973	2,990,519
Total assets	38,059,832	37,980,803
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	2,164,254	2,718,173
Accrued expenses:
Salaries and wages	549,015	475,667
Vacation	651,934	672,611
ESOP payable	84,506
Other	206,906	126,014
Payroll and other taxes withheld	466,428	409,881
Contract liabilities	3,094,985	3,077,605
Total current liabilities	7,218,028	7,479,951
Deferred tax liabilities	150,672	168,557
Total liabilities	7,368,700	7,648,508
Commitments and contingencies (see Note 5)
Common stock, par value $.33-1/3 per share Authorized 10,000,000 shares; Issued 3,129,874 shares as of September 30, 2021 and June 30, 2021. Outstanding 2,702,633 shares as of September 30, 2021 and June 30, 2021 (includes 273,645 and 279,429 Unearned ESOP shares, respectively)	1,043,291	1,043,291
Capital in excess of par value	23,078,872	23,026,096
Accumulated other comprehensive loss	(2,361)	(2,361)
Retained earnings	17,720,791	17,414,730
Total stockholders equity before ESOP	41,840,593	41,481,756
Less: Unearned ESOP shares	(5,110,770)	(5,110,770)
Cost of 427,241 shares of common stock in treasury as of September 30, 2021 and June 30, 2021	(6,038,691)	(6,038,691)
Total stockholders' equity	30,691,132	30,332,295
Total liabilities and stockholders' equity	$ 38,059,832	$ 37,980,803

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
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	3,129,874	3,129,874
Common stock, shares outstanding	2,702,633	2,702,633
Unearned ESOP, shares	273,645	279,429
Treasury stock, shares	427,241	427,241

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net sales	$ 7,545,432	$ 7,265,515
Cost of sales	6,192,334	6,138,141
Gross profit	1,353,098	1,127,374
Selling, general and administrative expenses	994,822	914,626
Operating income	358,276	212,748
Other income
Interest income	1,596	15,217
Other	17,971	3,128
Total other income	19,567	18,345
Income before provision for income taxes	377,843	231,093
Provision for income taxes	71,782	41,269
Net income	306,061	189,824
Other comprehensive income, net of tax
Unrealized loss on investment securities		(1,674)
Total comprehensive income	$ 306,061	$ 188,150
Net income per share:
Basic	$ 0.13	$ 0.08
Diluted	$ 0.13	$ 0.08
Weighted average number of shares outstanding:
Basic	2,423,267	2,402,633
Diluted	2,423,267	2,402,633
Dividends per share:		$ 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 (Loss) Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Unearned ESOP Shares [Member]	Total
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
Comprehensive income:
Net income				189,824			189,824
Other comprehensive income (loss), net of tax			(1,674)				(1,674)
Total comprehensive income (loss)							188,150
Stock-based compensation		47,167					47,167
Dividends declared on common stock per share				(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
Balance, beginning at Jun. 30, 2021	$ 1,043,291	23,026,096	(2,361)	17,414,730	$ (6,038,691)	(5,110,770)	$ 30,332,295
Balance, beginning, shares at Jun. 30, 2021	2,702,633				427,241		2,702,633
Comprehensive income:
Net income				306,061			$ 306,061
Other comprehensive income (loss), net of tax
Total comprehensive income (loss)							306,061
Stock-based compensation		52,776					52,776
Balance, ending at Sep. 30, 2021	$ 1,043,291	$ 23,078,872	$ (2,361)	$ 17,720,791	$ (6,038,691)	$ (5,110,770)	$ 30,691,132
Balance, ending, common shares at Sep. 30, 2021	2,702,633				427,241		2,702,633

Statements of Changes in Stoc_2

Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stock Transactions, Parenthetical Disclosures [Abstract]
Other comprehensive income (loss), tax portion		$ (445)
Dividends declared per share		$ 0.25

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows from Operating Activities:
Net income	$ 306,061	$ 189,824
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	52,776	47,167
Depreciation	121,237	136,548
ESOP compensation expense	84,506
Deferred income tax benefit	(17,885)	(17,175)
Changes in assets and liabilities:
Decrease in trade accounts receivable	1,072,116	2,637,412
Decrease (increase) in income taxes receivable	89,667	(19,099)
Decrease (increase) in inventories	7,338	(1,162,692)
Decrease (increase) in prepaid expenses and other current assets	218,306	(251,444)
Decrease in accounts payable	(553,919)	(190,174)
Increase in accrued salaries and wages	73,348	15,711
Decrease in vacation accrual	(20,677)	(12,287)
Increase (decrease) in other accrued expenses	80,892	(157,541)
Increase in payroll and other taxes withheld	56,547	136,555
Increase in contract liabilities	17,380	72,613
Decrease in income taxes payable		(47,707)
Net cash provided by operating activities	1,587,693	1,377,711
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(45,691)	(19,807)
Purchase of investment securities	(534,000)	(292,119)
Proceeds from sale/maturity of investment securities	488,000	2,602,663
Net cash (used in) provided by investing activities	(91,691)	2,290,737
Cash Flows from Financing Activities:
Dividends on common stock
Net cash used in financing activities
Increase in cash and cash equivalents	1,496,002	3,668,448
Cash and cash equivalents, beginning of period	6,802,712	5,402,122
Cash and cash equivalents, end of period	8,298,714	9,070,570
Supplemental Schedule of Cash Flow Information:
Income taxes paid		125,250
Supplemental Schedule of Non-cash Financing Activities:
Accrual of dividends		$ 600,658

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2021
Basis of Presentation [Abstract]
Basis of Presentation	Note 1. Basis of Presentation In the opinion of management the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for such periods. The results for any interim period are not necessarily indicative of the results to be expected for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, income taxes, and stock-based compensation. Specific to inventories, including work-in-process and contracts in process, management evaluates, quarterly, those estimates used in determining the cost to complete for each contract on Espey Mfg. & Electronics Corp. (the “Company”) sales backlog. The change in estimates may affect the reported amount of inventories and gross profit in the current or a future period. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. These financial statements should be read in conjunction with the Company's most recent audited financial statements included in its report on Form 10-K for the year ended June 30, 2021. 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, 2021
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Note 2. Investment Securities Accounting Standards Codification (“ASC”) 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: ▪ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ▪ Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ▪ Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The carrying amounts of financial instruments, including cash and cash equivalents, short term investments, accounts receivable, accounts payable and accrued expenses, approximated fair value as of September 30, 2021 and June 30, 2021 because of the immediate or short-term maturity of these financial instruments. Investment securities at September 30, 2021 and June 30, 2021 consist of certificates of deposit 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, 2021 and June 30, 2021 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2021 Certificates of deposit $ 3,138,000 $ — $ — $ 3,138,000 June 30, 2021 Certificates of deposit $ 3,092,000 $ — $ — $ 3,092,000 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At September 30, 2021, the Company did not have any investments in individual securities that have been in a continuous loss position considered to be other than temporary. 6 Index As of September 30, 2021 and June 30, 2021, 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, 2021 Available-for-sale $ 3,138,000 $ — $ 3,138,000 June 30, 2021 Available-for-sale $ 3,092,000 $ — $ 3,092,000

Net Income per Share

Net Income per Share	3 Months Ended
	Sep. 30, 2021
Net Income per Share [Abstract]
Net (Loss) Income per Share	Note 3. Net Income per Share Basic net income per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. The computation of diluted net income per share, excluded options to purchase 344,512 shares of our common stock for the three months ended September 30, 2021 and 254,762 shares for the three months ended September 30, 2020, as the effect of including them would be anti-dilutive. As unearned shares owned by the Company’s sponsored leveraged employee stock ownership plan (the “ESOP”) are released or committed-to-be-released, the shares become outstanding for earnings-per-share computations.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Sep. 30, 2021
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, 2021 and 2020 was $52,776 and $47,167, respectively, before income taxes. The amount of this stock-based compensation expense related to non-qualified stock options (“NQSO”) for the three-month periods ended September 30, 2021 and 2020, was $7,366 and $12,988, respectively. The deferred tax benefit related to the NQSO’s as of September 30, 2021 and 2020 was approximately $1,547 and $2,727, respectively. The remaining stock option expense in each year related to incentive stock options (“ISO”) which are not deductible by the corporation when exercised, assuming a qualifying disposition and as such no deferred tax benefit was established related to these amounts. As of September 30, 2021, there was approximately $235,350 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 1.75 years, of which $220,722 relates to ISO’s and $14,628 relates to NQSO’s. The total deferred tax benefit related to these awards is expected to be $3,072. 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 7 Index ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model, which incorporates various assumptions including those for dividend yield, volatility, expected life and interest rates. The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the three months ended September 30, 2021. There were no options awarded for the three months ended September 30, 2020. September 30, 2021 Dividend yield —% Company’s expected volatility 25.50% Risk-free interest rate 0.89% Expected term 5.4 yrs Weighted average fair value per share of options granted during the period $3.73 Effective March 9, 2021, the Company suspended the payment of its regular quarterly dividend. For the three months ended September 30, 2020, the Company declared cash dividends of $0.25 per share. 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, 2021: 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, 2021 304,662 $ 23.37 6.06 Granted 68,350 $ 14.87 9.76 Exercised — — — Forfeited or expired (28,500) $ 23.84 — Outstanding at September 30, 2021 344,512 $ 21.64 6.85 $ 0 Vested or expected to vest at September 30, 2021 315,123 $ 22.06 6.63 $ 0 Exercisable at September 30, 2021 178,512 $ 25.58 4.74 $ 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, 2021 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, 2021. This amount changes based on the fair market value of the Company’s common stock. The intrinsic value of options exercised during the three months ended September 30, 2021 and 2020 was $0, resulting from no option exercise activity during those periods. 8 Index The following table summarizes changes in non-vested stock options during the three months ended September 30, 2021: Weighted Number Average of Shares Subject to Option Grant Date Fair Value (per Option) Non-vested at July 1, 2021 103,450 $ 2.22 Granted 68,350 $ 3.73 Vested — — Forfeited or expired (5,800) $ 2.36 Non-vested at September 30, 2021 166,000 $ 2.84

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2021
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, 2021 and June 30, 2021. 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, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Note 6. Revenue The Company follows ASC 606 “Revenue from Contracts with Customers” to determine the recognition of revenue. This standard requires entities to assess the products or services promised in contracts with customers at contract inception to determine the appropriate unit at which to record revenues. Revenue is recognized when control of the promised products or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those products or services. Significant judgment is required in determining the satisfaction of performance obligations. Revenues from our performance obligations are satisfied over time using the output method which considers the appraisal of results achieved and milestones reached or units delivered based on contractual shipment terms, typically shipping point. Revenue is recognized when, or as, the customer takes control of the product or services. The output method best depicts the transfer of control to the customer as the output method represents work completed. Control is typically transferred to the customer at the shipping point as the Company has a present right to payment, the customer has legal title to the asset, the customer has the significant risks and rewards of ownership of the asset, and in most instances the customer has accepted the asset. Total revenue recognized for the three months ended September 30, 2021 based on units delivered was $6,492,236 compared to $5,858,706 for the same period in fiscal year 2021. Total revenue recognized for the three months ended September 30, 2021 based on milestones achieved was $1,053,196 compared to $1,406,809 for the same period in fiscal year 2021. 9 Index 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, 2021. Our payment terms are generally 30-60 days. Contract liabilities were $3,094,985 and $3,077,605 as of September 30, 2021 and June 30, 2021, respectively. The increase in contract liabilities is primarily due to the advance collection of cash on specific contracts, offset in part, by revenue recognized. 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, 2021 totaling approximately $75.2 million is projected, based on expected due dates, to be recognized in the following fiscal years: 40.5% in 2022; 34.6% in 2023; 19.5% in 2024, and 5.4% thereafter.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Sep. 30, 2021
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 7. Recently Issued Accounting Standards Recent Accounting Pronouncements Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. The Company adopted the new guidance under ASU 2019-12 in the first quarter of 2021 and removed the exception for intraperiod allocations from its interim period tax provision calculation, accordingly. The removal of the exception for intraperiod allocations did not have a material impact on the Company.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
	Sep. 30, 2021
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. Prior to December 1, 2020, the ESOP owned 469,119 shares, all of which were allocated to employees. On December 1, 2020, pursuant to a Stock Purchase Agreement dated as of such date, the Company, by selling 300,000 shares of its common stock, par value $ 0.33 1/3 The Board of Directors of the Company had approved a purchase price per share equal to the lesser of the trading value on the day of closing or the lowest price listed in the valuation established by the independent valuation firm plus $0.25. The valuation identified a range of $18.04 - $19.43 per share. In making the sale, the Company relied on the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended, because the shares sold were offered only to the ESOP. After giving effect to the transaction, the ESOP owned 769,119 shares of the Company's 2,702,633 outstanding shares of common stock as of December 1, 2020. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. Any dividends on unallocated shares received by the ESOP are used to pay debt service. Any dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the balance sheets and the statements of changes in stockholders’ equity. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation expense was $84,506 and $0 for the three-month periods ended September 30, 2021 and 2020, respectively. For the period ended September 30, 2020, the previous loan from the Company to the ESOP was paid in full and all shares were allocated to participants’ accounts. 10 Index The ESOP shares as of September 30, 2021 and 2020 were as follows: September 30, 2021 September 30, 2020 Allocated shares 483,984 469,119 Committed-to-be-released shares 5,784 — Unreleased shares 273,645 — Total shares held by the ESOP 763,413 469,119 Fair value of unreleased shares $ 3,981,535 $ — The Company may at times be required to repurchase shares at the ESOP participants’ request at the shares’ fair market value. During the three months ended September 30, 2021 and 2020, the Company did not repurchase shares previously held by the ESOP. The ESOP allows for eligible participants to take whole share distributions from the Plan on specific dates in accordance with the provision of the Plan. Share distributions from the ESOP during the three months ended September 30, 2021 and 2020 totaled 3,236 and 0 shares, respectively.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities	Investment securities at September 30, 2021 and June 30, 2021 consist of certificates of deposit 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, 2021 and June 30, 2021 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2021 Certificates of deposit $ 3,138,000 $ — $ — $ 3,138,000 June 30, 2021 Certificates of deposit $ 3,092,000 $ — $ — $ 3,092,000
Schedule of Contractual Maturities	As of September 30, 2021 and June 30, 2021, 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, 2021 Available-for-sale $ 3,138,000 $ — $ 3,138,000 June 30, 2021 Available-for-sale $ 3,092,000 $ — $ 3,092,000

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [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 three months ended September 30, 2021. There were no options awarded for the three months ended September 30, 2020. September 30, 2021 Dividend yield —% Company’s expected volatility 25.50% Risk-free interest rate 0.89% Expected term 5.4 yrs Weighted average fair value per share of options granted during the period $3.73
Schedule of Stock Option Activity	The following table summarizes stock option activity during the three months ended September 30, 2021: 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, 2021 304,662 $ 23.37 6.06 Granted 68,350 $ 14.87 9.76 Exercised — — — Forfeited or expired (28,500) $ 23.84 — Outstanding at September 30, 2021 344,512 $ 21.64 6.85 $ 0 Vested or expected to vest at September 30, 2021 315,123 $ 22.06 6.63 $ 0 Exercisable at September 30, 2021 178,512 $ 25.58 4.74 $ 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, 2021: Weighted Number Average of Shares Subject to Option Grant Date Fair Value (per Option) Non-vested at July 1, 2021 103,450 $ 2.22 Granted 68,350 $ 3.73 Vested — — Forfeited or expired (5,800) $ 2.36 Non-vested at September 30, 2021 166,000 $ 2.84

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
	Sep. 30, 2021
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP shares	The ESOP shares as of September 30, 2021 and 2020 were as follows: September 30, 2021 September 30, 2020 Allocated shares 483,984 469,119 Committed-to-be-released shares 5,784 — Unreleased shares 273,645 — Total shares held by the ESOP 763,413 469,119 Fair value of unreleased shares $ 3,981,535 $ —

Investment Securities (Schedule

Investment Securities (Schedule of Available-for-Sale Securities) (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 3,138,000	$ 3,092,000
Certificates of Deposit [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,138,000	3,092,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 3,138,000	$ 3,092,000

Investment Securities (Schedu_2

Investment Securities (Schedule of Contractual Maturities) (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Contractual maturities of available-for-sale securities
Less than One Year	$ 3,138,000	$ 3,092,000
One to Five Years
Fair Value	$ 3,138,000	$ 3,092,000

Net Income per Share (Details)

Net Income per Share (Details) - shares	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Net Income per Share [Abstract]
Anti-dilutive securities	344,512	254,762

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 52,776	$ 47,167
Deferred tax benefit related to stock based compensation	1,547	$ 2,727
Unrecognized compensation costs	$ 235,350
Period in which compensation cost will be recognized	1 year 9 months
Deferred tax benefit related to unrecognized compensation costs	$ 3,072
Granted	68,350
Outstanding	344,512		304,662
Cash divided paid		$ 0.25
Aggregate intrinsic value of options exercised	$ 0	$ 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
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
Non-qualified stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 7,366	$ 12,988
Unrecognized compensation costs	220,722
Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 14,628
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	294,704
Stock Option Plans [Member] | 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	98,050

Stock Based Compensation (Sched

Stock Based Compensation (Schedule of Fair Value Assumptions) (Details)	3 Months Ended
	Sep. 30, 2021$ / shares
Weighted average assumptions to calculation option fair value
Dividend yield
Company's expected volatility	25.50%
Risk-free interest rate	0.89%
Expected term	5 years 4 months 24 days
Weighted average fair value per share of options granted during the period	$ 3.73

Stock Based Compensation (Sch_2

Stock Based Compensation (Schedule of Stock Option Activity) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Number of Shares Subject To Option
Balance at July 1, 2021	304,662
Granted	68,350
Exercised
Forfeited or expired	(28,500)
Outstanding at September 30, 2021	344,512	304,662
Vested or expected to vest at September 30, 2021	315,123
Exercisable at September 30, 2021	178,512
Weighted Average Exercise Price
Balance at July 1, 2021	$ 23.37
Granted	14.87
Exercised
Forfeited or expired	23.84
Outstanding at September 30, 2021	21.64	$ 23.37
Vested or expected to vest at September 30, 2021	22.06
Exercisable at September 30, 2021	$ 25.58
Weighted Average Remaining Contractual Term
Outstanding	6 years 10 months 6 days	6 years 21 days
Granted	9 years 9 months 3 days
Vested or expected to vest at September 30, 2021	6 years 7 months 17 days
Exercisable at September 30, 2021	4 years 8 months 26 days
Aggregate Intrinsic Value
Outstanding at September 30, 2021	$ 0
Vested or expected to vest at September 30, 2021	0
Exercisable at September 30, 2021	$ 0

Stock Based Compensation (Sch_3

Stock Based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details)	3 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of Shares Subject to Option
Non-vested at July 1, 2021 | shares	103,450
Granted | shares	68,350
Vested | shares
Forfeited or expired | shares	(5,800)
Non-vested at September 30, 2021 | shares	166,000
Weighted Average Grant Date Fair Value (per Option)
Non-vested at July 1, 2021 | $ / shares	$ 2.22
Granted | $ / shares	3.73
Vested | $ / shares
Forfeited or expired | $ / shares	2.36
Non-vested at September 30, 2021 | $ / shares	$ 2.84

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Standby Letters of Credit [Member]
Contingent liabilities	$ 0	$ 0

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 7,545,432	$ 7,265,515
ASC 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities	3,094,985		$ 3,077,605
ASC 606 [Member] | Units Delivered [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	6,492,236	5,858,706
ASC 606 [Member] | Milestones Achieved [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	1,053,196	$ 1,406,809
ASC 606 [Member] | Backlog [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Intangible assets	$ 75,200,000
Percentage of estimated shipments	40.5% in 2022; 34.6% in 2023; 19.5% in 2024, and 5.4% thereafter.

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan (Narrative) (Details)	Dec. 01, 2020$ / sharesshares	Sep. 30, 2021USD ($)h$ / sharesshares	Sep. 30, 2020USD ($)shares	Jun. 30, 2021shares	Jun. 30, 2020shares
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of shares allocated to employees		483,984	469,119
Number of shares owned		763,413	469,119
Common stock, shares outstanding		2,702,633		2,702,633
ESOP compensation expense | $		$ 84,506
Common Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Common stock, shares outstanding		2,702,633	2,402,633	2,702,633	2,402,633
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
Number of shares allocated to employees	469,119
Period of services rendered		15 years
Price per share | $ / shares		$ 18.29
Aggregate purchase price | $		$ 5,487,000
Loan, frequency of periodic payment		annual
Number of loan repayment annual installments		15
Interest rate on loan		3.00%
Purchase price per share, lower range limit | $ / shares		$ 18.04
Purchase price per share, upper range limit | $ / shares		$ 19.43
Number of shares owned	769,119
Common stock, shares outstanding	2,702,633
Shares distributed		3,236	0
Employee Stock Ownership Plan [Member] | Common Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of shares sold	300,000
Sale of stock, price per share | $ / shares	$ 0.3333

Employee Stock Ownership Plan_3

Employee Stock Ownership Plan (Schedule of ESOP shares) (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Employee Stock Ownership Plan [Abstract]
Allocated shares	483,984	469,119
Committed-to-be-released shares	5,784
Unreleased shares	273,645
Total shares held by the ESOP	763,413	469,119
Fair value of unreleased shares	$ 3,981,535