Property and Equipment

12 Months Ended

Jun. 30, 2017

NOTE 5 – Property and Equipment

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


	Depreciable Life			June 30,		June 30,
	(in years)			2017		2016
Land		—		$	1,264	$	1,264
Building and improvements	7	-	40		18,125		17,460
Machinery and equipment	3	-	12		40,715		39,350
Office furniture and equipment	3	-	10		1,280		1,050
Construction-in-process		—			2,462		1,838
Assets acquired under capital lease					7,235		5,482
					71,081		66,444
Accumulated depreciation					(27,201)		(23,018)
Accumulated amortization on capital leases					(2,350)		(1,445)
Property and equipment of discontinued operations					(181)		(337)
				$	41,349	$	41,644

Depreciation expense totaled $6.6 million and $6.2 million in the years ended June 30, 2017 and 2016, 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 was included in machinery and equipment, and made payments totaling $1.1 million on the second 3D printer, which was 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 had received approximately $1.5 million in cash advances under this financing agreement. The lease commenced upon receipt of the second 3D printer, which was in the first quarter of fiscal year 2017.