Supplemental Balance Sheet Disclosures

3 Months Ended

Dec. 31, 2022

Supplemental Balance Sheet Disclosures

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:

	December 31,		September 30,
	2022		2022
Raw materials	$	4,685,109	$	4,451,045
Work-in-process		530,992		795,723
Finished goods		36,194		102,336
	$	5,252,295	$	5,349,104

Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	December 31,		September 30,
	2022		2022
Prepaid insurance	$	801,703	$	777,311
Other		247,503		365,159
	$	1,049,206	$	1,142,470

Property and equipment

Property and equipment, net consists of the following:

	December 31,		September 30,
	2022		2022
Computer equipment	$	2,269,243	$	2,307,139
Corporate airplanes		2,406,468		2,406,468
Furniture and office equipment		976,993		976,993
Manufacturing facility		5,889,491		5,889,491
Equipment		5,607,387		5,624,966
Land		1,021,245		1,021,245
		18,170,827		18,226,302
Less: accumulated depreciation and amortization		(11,931,331)		(11,934,113)
	$	6,239,496	$	6,292,189

Depreciation and amortization related to property and equipment was $85,409 and $92,372 for the three-month periods ended December 31, 2022 and 2021, respectively. The corporate airplane is utilized primarily in support of product development.

Other assets

Other assets consist of the following:

	December 31,		September 30,
	2022		2022
Intangible assets, net of accumulated amortization of $636,158 at December 31, 2022 and September 30, 2022	$	60,348	$	60,348
Operating lease right-of-use asset		25,214		28,680
Other non-current assets		75,300		75,300
	$	160,862	$	164,328

Intangible assets consist of licensing and certification rights which are amortized over a defined number of units. No impairment charges were recorded in the three-month periods ended December 31, 2022 and 2021.

Intangible asset amortization expense was $0 for the three-month periods ended December 31, 2022 and 2021, respectively. The timing of future amortization expense is not determinable because the intangible assets are being amortized over a defined number of units.

Other non-current assets as of December 31, 2022 and September 30, 2022 include the security deposit for an airplane hangar and a deposit for medical claims required under the Company’s medical plan.

Accrued expenses

Accrued expenses consist of the following:

	December 31,		September 30,
	2022		2022
Warranty	$	577,690	$	607,001
Salary, benefits and payroll taxes		381,822		1,030,628
Professional fees		275,077		364,794
Income tax		475,200		—
Operating lease		13,450		13,615
Other		785,732		956,237
	$	2,508,971	$	2,972,275

Warranty cost and accrual information for the three-month period ended December 31, 2022 is highlighted below:

	Three Months Ending
	December 31, 2022
Warranty accrual, beginning of period	$	607,001
Accrued expense		(536)
Warranty cost		(28,775)
Warranty accrual, end of period	$	577,690