v3.26.1
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS
 12 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

6. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

 

Inventory

 

Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): 

           
   June 30, 
   2026   2025 
Raw materials /purchased components   $9,219   $10,397 
Work in process    7,699    7,422 
Sub-assemblies /finished components    2,668    2,874 
Finished goods    1,872    1,520 
Total inventory   $21,458   $22,213 
           

 

Land and Building

 

Land and building consist of the following (in thousands):

         
   June 30, 
   2026   2025 
Land   $3,684   $3,684 
Building    2,815    2,815 
Total    6,499    6,499 
Less: accumulated depreciation    (532)   (438)
   $5,967   $6,061 

 

On November 6, 2020, we acquired the Franklin Property in order to increase our operational capacity for a total purchase price of $6.5 million, of which we paid $1.3 million in cash and the balance of $5.2 million we financed (the “Property Loan”) through UMB Bank N.A. (formerly Minnesota Bank & Trust or MBT) (See Note 9). Depreciation expense for both fiscal years ended June 30, 2026 and 2025 totaled $94,000. The building is being amortized on a straight-line basis over a period of 30 years.

 

Equipment and Improvements

 

Equipment and improvements consist of the following (in thousands):

         
   June 30, 
   2026   2025 
Office furnishings and fixtures   $2,262   $2,078 
Machinery and equipment    9,322    8,198 
Automobiles    21    21 
Improvements    5,354    5,205 
Total    16,959    15,502 
Less: accumulated depreciation and amortization    (11,586)   (10,349)
   $5,373   $5,153 

 

Depreciation expense for the years ended June 30, 2026 and 2025 amounted to $1.2 million and $1.1 million, respectively.

 

Intangibles

 

Intangibles consist of the following (in thousands):

        
   June 30, 
   2026   2025 
Patent-related costs   $208   $208 
Customer relationships    510    — 
Tradename    210    — 
Total Intangibles    928    208 
Less accumulated amortization    (242)   (182)
   $686   $26 

 

Patent-related costs consist of legal fees incurred in connection with both patent applications and patent issuances, and were amortized over the estimated life of the product(s) that is utilizing the technology, and these costs were fully amortized in fiscal 2026. Amortization expense for the years ended June 30, 2026 and 2025 totaled $60,000 and $28,000, respectively. Of the total fiscal 2026 amortization expense, $26,000 was recorded to research and development and $34,000 was recorded in selling, general and administrative expenses. The fiscal 2025 amortization expense was recorded in research and development costs.

 

Both the customer relationships and the tradename relate to our acquisition of APM described in Note 3 and will be amortized on a straight-line basis over ten and seven years, respectively.

 

As of June 30, 2026, the expected future amortization expense of our intangible assets is as follows (in thousands):

      
    Amortization Expense 
 Fiscal Year:      
 2027   $81 
 2028    81 
 2029    81 
 2030    81 
 2031    81 
        Thereafter     281 
 Total    $686 

 

Accrued Liabilities

 

Accrued liabilities consist of the following (in thousands):

         
   June 30, 
   2026   2025 
Payroll and related items   $1,093   $850 
Accrued inventory in transit    895    87 
Accrued legal and professional fees    209    267 
Accrued bonuses    780    501 
Current portion of lease liability    844    498 
Warranty    260    357 
Accrued interest expense    102    64 
Accrued customer rebate    —    690 
Other    183    165 
   $4,366   $3,479