Property and Equipment

12 Months Ended

Jun. 30, 2016

NOTE 4 – Property and Equipment

Property and equipment consisted of the following (in thousands):


	Depreciable Life			June 30,		June 30,
	(in years)			2016		2015
Land		—		$	1,264	$	1,264
Building and improvements	7	-	40		17,460		17,422
Machinery and equipment	3	-	12		39,350		35,238
Office furniture and equipment	3	-	10		1,050		931
Construction-in-process		—			1,838		1,934
Assets acquired under capital lease					5,482		5,573
					66,444		62,362
Less: Accumulated depreciation					(23,018)		(17,808)
Less: Accumulated amortization on capital leases					(1,445)		(741)
				$	41,981	$	43,813

Depreciation expense totaled $6.2 million and $6.1 million in the years ended June 30, 2016 and 2015, respectively.

In June 2016, the Company entered into an agreement to purchase two 3D printers valued at $2.2 million. As of June 30, 2016, the Company received one 3D printer valued at $0.6 million, which is included in machinery and equipment, and has made payments totaling $1.1 million on the second 3D printer, which is included in construction-in-process. Also in June 2016, the Company entered into a Master Lease Agreement with Citizens Asset Finance, Inc. for $1.7 million of secured financing related to these 3D printers. As of June 30 2016, the Company has received approximately $1.5 million in cash advances under this financing agreement. The lease will commence upon receipt of the second 3D printer, which the Company anticipates will be in the first quarter of fiscal year 2017. As of June 30, 2016, the Company has recorded accounts payable of $0.2 million due to the vendor, and other current accrued liabilities of $0.5 million and other long term liabilities of $1.0 million both due to Citizens Asset Finance, Inc.