| Supplemental Balance Sheet Disclosures |
2. Supplemental Balance Sheet Disclosures Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, net of write-downs for excess and obsolete inventory and consist of the following: | | | | | | | | | June 30, | | September 30, | | | 2026 | | 2025 | Raw materials | | $ | 25,672,948 | | $ | 22,445,837 | Work-in-process | | | 5,517,951 | | | 2,295,587 | Finished goods | | | 893,395 | | | 1,060,757 | | | $ | 32,084,294 | | $ | 25,802,181 |
Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: | | | | | | | | | June 30, | | September 30, | | | 2026 | | 2025 | Supplier deposits | | | 649,416 | | | 486,763 | Prepaid insurance and services | | | 520,719 | | | 418,406 | Prepaid income tax | | | 1,653,389 | | | — | Deferred engineering | | | 279,527 | | | — | Other receivable | | | 357,230 | | | — | Unamortized debt issuance costs | | | 147,527 | | | 147,527 | Other | | | 324,123 | | | 339,702 | | | $ | 3,931,931 | | $ | 1,392,398 |
Intangible assets and Goodwill The Company’s intangible assets other than goodwill are as follows: | | | | | | | | | | | | | | | As of June 30, 2026 | | | Gross Carrying | | Accumulated | | Accumulated | | Net Carrying | | | Value | | Impairment | | Amortization | | Value | License agreements (a) | | $ | 21,290,000 | | $ | — | | $ | — | | $ | 21,290,000 | Customer relationships (a) | | | 21,934,327 | | | — | | | (3,650,470) | | | 18,283,857 | Backlog (b) | | | 8,190,000 | | | — | | | (2,000,973) | | | 6,189,027 | Trade name (c) | | | 260,000 | | | — | | | (4,333) | | | 255,667 | Licensing and certification rights (d) | | | 696,506 | | | (44,400) | | | (638,285) | | | 13,821 | Total | | $ | 52,370,833 | | $ | (44,400) | | $ | (6,294,061) | | $ | 46,032,372 |
| | | | | | | | | | | | | | | As of September 30, 2025 | | | Gross Carrying | | Accumulated | | Accumulated | | Net Carrying | | | Value | | Impairment | | Amortization | | Value | License agreements (a) | | $ | 9,790,000 | | $ | — | | $ | — | | $ | 9,790,000 | Customer relationships (a) | | | 12,604,327 | | | — | | | (2,705,533) | | | 9,898,794 | Backlog (b) | | | 4,850,000 | | | — | | | (970,000) | | | 3,880,000 | Licensing and certification rights (d) | | | 696,506 | | | (44,400) | | | (638,285) | | | 13,821 | Total | | $ | 27,940,833 | | $ | (44,400) | | $ | (4,313,818) | | $ | 23,582,615 |
| (a) | The license agreements have an indefinite life and are not subject to amortization; the customer relationships have an estimated weighted average life of ten years. |
| (b) | Backlog assets are amortized according to the timing of order fulfillment. |
| (c) | The trade name is amortized over 15 years. |
| (d) | The licensing and certification rights are amortized over a defined number of units. |
Intangible asset amortization expense is amortized as a component of selling, general and administrative expense and was $911,678 and $552,757 for the three months ended June 30, 2026 and 2025, respectively. Intangible asset amortization expense was $1,980,243 and $1,662,915 for the nine months ended June 30, 2026 and 2025, respectively. The timing of future amortization expense is not determinable for the licensing and certification rights because they are amortized over a defined number of units. The expected future amortization expense related to the customer relationships, backlog and trade name as of June 30, 2026 is as follows: | | | | Amortization Expense | 2026 (three months remaining) | $ | 1,392,158 | 2027 | | 5,935,555 | 2028 | | 3,459,201 | 2029 | | 2,714,618 | 2030 | | 2,194,361 | Thereafter | | 9,032,658 | Total | $ | 24,728,551 |
Goodwill activity | | | | Goodwill | Balance at September 30, 2025 | $ | 6,703,104 | Fiscal 2026 Activity: | | | Business Combination - Honeywell Autopilot Agreement | | 3,810,000 | Business Combination - Honeywell Generators Agreement | | 3,650,000 | Business Combination - Other | | 1,610,000 | Balance at June 30, 2026 | $ | 15,773,104 |
Property and equipment Property and equipment, net consists of the following: | | | | | | | | | June 30, | | September 30, | | | 2026 | | 2025 | Computer equipment | | $ | 3,555,949 | | $ | 3,169,835 | Corporate R&D airplane | | | 1,187,911 | | | - | Furniture and office equipment | | | 1,042,096 | | | 984,205 | Buildings and improvements | | | 12,527,693 | | | 11,598,890 | Equipment other | | | 16,496,658 | | | 15,958,271 | Land | | | 1,021,246 | | | 1,021,245 | | | | 35,831,553 | | | 32,732,446 | Less accumulated depreciation and amortization | | | (15,148,878) | | | (13,927,910) | | | $ | 20,682,675 | | $ | 18,804,536 |
Depreciation and amortization related to property and equipment was $441,491 and $267,653 for the three months ended June 30, 2026 and 2025, respectively. Depreciation and amortization related to property and equipment was $1,258,042 and $1,162,136 for the nine months ended June 30, 2026 and 2025, respectively. Other assets Other assets consist of the following: | | | | | | | | | June 30, | | September 30, | | | 2026 | | 2025 | Unamortized debt issuance costs | | $ | 449,048 | | $ | 560,603 | Other non-current assets | | | 137,200 | | | 157,863 | | | $ | 586,248 | | $ | 718,466 |
Other non-current assets as of June 30, 2026 and September 30, 2025 consists primarily of deposits for medical claims required under the Company’s medical plan. Accrued expenses Accrued expenses consist of the following: | | | | | | | | | June 30, | | | September 30, | | | 2026 | | | 2025 | Warranty | | $ | 1,008,343 | | $ | 730,498 | Salary, benefits and payroll taxes | | | 967,766 | | | 1,234,246 | Inventory in transit | | | — | | | 1,097,222 | Income tax payable | | | — | | | 2,045,123 | ERC related expenses | | | — | | | 378,846 | Bonus accruals | | | 1,577,776 | | | 1,972,221 | Other | | | 1,309,234 | | | 703,811 | | | $ | 4,863,119 | | $ | 8,161,967 |
Warranty cost and accrual information for the three and nine months ended June 30, 2026 is highlighted below: | | | | | | | | | | | Three Months Ending | | | Nine Months Ending | | | | | June 30, 2026 | | | June 30, 2026 | | Warranty accrual, beginning of period | | $ | 953,488 | | $ | 730,498 | | Accrued expense (adjustment) | | | 137,000 | | | 603,000 | | Warranty cost | | | (82,145) | | | (325,155) | | Warranty accrual, end of period | | $ | 1,008,343 | | $ | 1,008,343 | |
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