Acquisitions (Tables)
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9 Months Ended |
Jun. 30, 2026 |
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| Acquisition |
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| Summary of unaudited pro forma consolidated information |
| | | | | | | | | Nine Months Ended June 30, | | Nine Months Ended June 30, | | | 2026 | | 2025 | Net sales | | $ | 71,010,096 | | $ | 76,962,638 | Net income | | $ | 10,299,398 | | $ | 12,839,992 |
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| MOOG Inc. |
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| Acquisition |
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| Schedule of preliminary allocation of the purchase consideration |
| | | | Preliminary | | Purchase Price | | Allocation | Total consideration | $ | 3,500,000 | | | | Intangible assets (a) | | 1,890,000 | Goodwill (b) | | 1,610,000 | Net assets acquired | $ | 3,500,000 |
| (a) | Intangible assets consists of backlog ($30,000), customer relationships ($170,000), trade name ($260,000) and license agreements ($1,430,000) related to the license rights to use certain intellectual property and are recorded at estimated fair values. Backlog assets are amortized according to the timing of order fulfillment. The customer relationships are amortized over 3 years. The trade name is amortized over 15 years. The license agreements have an indefinite life and is not subject to amortization. The estimated fair value of these license agreements and trade name are based on a variation of the income valuation approach and are determined using the relief from royalty method. The estimated fair value of the backlog and customer relationships are based on a variation of the income valuation approach known as the multi-period excess earnings method. Refer to Note 2, “Supplemental Balance Sheet Disclosures” for further details. |
| (b) | Goodwill represents the excess of the purchase consideration over the preliminary fair value of the net assets acquired. During the measurement period, there may be value ascribed to the fair market value of any equipment expected to be received which will reduce goodwill. The goodwill recognized is primarily attributable to the expected synergies from the Moog S-TEC® Agreement. Goodwill resulting from the Moog S-TEC® Agreement has been assigned to the Company’s one reporting unit and is fully deductible for U.S. income tax purposes. |
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| Autopilot Agreement |
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| Acquisition |
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| Schedule of preliminary allocation of the purchase consideration |
| | | | Preliminary | | Purchase Price | | Allocation | Total consideration | $ | 22,000,000 | | | | Intangible assets (a) | | 18,190,000 | Goodwill (b) | | 3,810,000 | Net assets acquired | $ | 22,000,000 |
| (a) | Intangible assets consists of backlog ($1,420,000), customer relationships ($8,360,000), and license agreements ($8,410,000) related to the license rights to use certain Honeywell intellectual property and are recorded at estimated fair values. Backlog assets are amortized according to the timing of order fulfillment. The customer relationships are amortized over 10 years. The license agreements have an indefinite life and is not subject to amortization. The estimated fair value of these license agreements are based on a variation of the income valuation approach and are determined using the relief from royalty method. The estimated fair value of the backlog and customer relationships are based on a variation of the income valuation approach known as the multi-period excess earnings method. Refer to Note 2, “Supplemental Balance Sheet Disclosures” for further details. |
| (b) | Goodwill represents the excess of the purchase consideration over the preliminary fair value of the net assets acquired. During the measurement period, there may be value ascribed to the fair market value of any inventory and equipment expected to be received which will reduce goodwill. The goodwill recognized is primarily attributable to the expected synergies from the Honeywell Autopilot Agreement. Goodwill resulting from the Honeywell Autopilot Agreement has been assigned to the Company’s one reporting unit and is fully deductible for U.S. income tax purposes. |
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| Generators Agreement |
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| Acquisition |
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| Schedule of preliminary allocation of the purchase consideration |
| | | | Preliminary | | Purchase Price | | Allocation | Total consideration | $ | 8,000,000 | | | | Intangible assets (a) | | 4,350,000 | Goodwill (b) | | 3,650,000 | Net assets acquired | $ | 8,000,000 |
| (a) | Intangible assets consists of backlog ($1,890,000), customer relationships ($800,000), and license agreements ($1,660,000) related to the license rights to use certain Honeywell intellectual property and are recorded at estimated fair values. Backlog assets are amortized according to the timing of order fulfillment. The customer relationships are amortized over 8 years. The license agreements have an indefinite life and is not subject to amortization. The estimated fair value of these license agreements are based on a variation of the income valuation approach and are determined using the relief from royalty method. The estimated fair value of the backlog and customer relationships are based on a variation of the income valuation approach known as the multi-period excess earnings method. Refer to Note 2, “Supplemental Balance Sheet Disclosures” for further details. |
| (b) | Goodwill represents the excess of the purchase consideration over the preliminary fair value of the net assets acquired. During the measurement period, there may be value ascribed to the fair market value of any inventory and equipment expected to be received which will reduce goodwill. The goodwill recognized is primarily attributable to the expected synergies from the Honeywell Generators Agreement. Goodwill resulting from the Honeywell Generators Agreement has been assigned to the Company’s one reporting unit and is fully deductible for U.S. income tax purposes. |
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