COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

9 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 5. 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):

	March 31, 2025		June 30, 2024
Raw materials /purchased components	$	10,065	$	6,703
Work in process		9,332		5,103
Sub-assemblies/finished components		2,856		2,342
Finished goods		1,179		1,121
Total inventory	$	23,432	$	15,269

Land and building

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

	March 31, 2025			June 30, 2024
Land	$	3,684		$	3,684
Building		2,815			2,815
Total		6,499			6,499
Less: accumulated depreciation		(414	)		(344	)
	$	6,085		$	6,155

On November 6, 2020, we acquired the Franklin Property 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 Minnesota Bank & Trust (“MBT”) (See Note 11). We substantially completed the build-out of the property in the first quarter of fiscal 2022. We began operations in the new facility during the fourth quarter of fiscal 2023. For each of the three months ended March 31, 2025, and 2024 we recorded $23,000 of depreciation expense and for each of the nine months ended March 31, 2025 and 2024 we recorded $70,000 of depreciation expense. The building is being amortized on a straight-line basis over a period of 30 years

Intangibles

Intangibles consist of the following (in thousands):

	March 31, 2025			June 30, 2024
Patent-related costs	$	208		$	208
Less: accumulated amortization		(175	)		(154	)
	$	33		$	54

Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology or expensed immediately in the event the patent office denies the issuance of the patent. For each of the three months ended March 31, 2025 and 2024, we recorded $7,000 of amortization expense and for each of the nine months ended March 31, 2025 and 2024, we recorded $21,000 of amortization expense. Future amortization expense is expected to be $7,000 for the remainder of fiscal 2025 and $26,000 during fiscal 2026, at which time we expect these costs to be fully amortized.