Supplemental Balance Sheet Disclosures

6 Months Ended

Mar. 31, 2023

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:

	March 31,		September 30,
	2023		2022
Raw materials	$	5,108,433	$	4,451,045
Work-in-process		745,587		795,723
Finished goods		45,815		102,336
	$	5,899,835	$	5,349,104

Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	March 31,		September 30,
	2023		2022
Prepaid insurance	$	829,421	$	777,311
Other		413,922		365,159
	$	1,243,343	$	1,142,470

Property and equipment

Property and equipment, net consists of the following:

	March 31,		September 30,
	2023		2022
Computer equipment	$	2,316,679	$	2,307,139
Corporate airplane		2,406,468		2,406,468
Furniture and office equipment		976,993		976,993
Manufacturing facility		5,889,491		5,889,491
Equipment		5,607,386		5,624,966
Land		1,021,245		1,021,245
		18,218,262		18,226,302
Less: accumulated depreciation and amortization		(12,017,311)		(11,934,113)
	$	6,200,951	$	6,292,189

Depreciation and amortization related to property and equipment was $85,981 and $88,122 for the three-month periods ended March 31, 2023 and 2022, respectively. The corporate airplane is utilized primarily in support of product development.

Depreciation and amortization related to property and equipment was approximately $171,390 and $180,494 for the six-month periods ended March 31, 2023 and 2022, respectively.

Other assets

Other assets consist of the following:

	March 31,		September 30,
	2023		2022
Intangible assets, net of accumulated amortization of $636,158 at March 31, 2023 and September 30, 2022	$	60,348	$	60,348
Operating lease right-of-use asset		21,790		28,680
Other non-current assets		182,528		75,300
	$	264,666	$	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 six-month periods ended March 31, 2023 and 2022.

Intangible asset amortization expense was $0 and $1,063 for the three-month periods ended March 31, 2023 and 2022, respectively. Intangible asset amortization expense was $0 and $1,063 for the six-month periods ended March 31, 2023 and 2022, 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 March 31, 2023 and September 30, 2022 include the security deposit for an airplane hangar, supplier credit from one of our suppliers and a deposit for medical claims required under the Company’s medical plan. In addition, other non-current assets as of March 31, 2023 and September 30, 2022 includes $47,772 and $0, respectively, of prepaid software licenses that will be earned upon the shipment of a certain product to a customer. Other non-current assets amortization expense was $0 and $3,557 for the three-month periods ended March 31, 2023 and 2022, respectively. Other non-current assets amortization expense was $0 and $6,577 for the six-month periods ended March 31, 2023 and 2022, respectively.

Accrued expenses

Accrued expenses consist of the following:

	March 31,		September 30,
	2023		2022
Warranty	$	587,650	$	607,001
Salary, benefits and payroll taxes		742,570		1,030,628
Professional fees		130,600		364,794
Operating lease		13,287		13,615
Other		388,084		956,237
	$	1,862,191	$	2,972,275

Warranty cost and accrual information for the three-and six-month periods ended March 31, 2023 is highlighted below:

	Three Months Ending		Six Months Ending
	March 31, 2023		March 31, 2023
Warranty accrual, beginning of period	$	577,690	$	607,001
Accrued expense		34,912		34,376
Warranty cost		(24,952)		(53,727)
Warranty accrual, end of period	$	587,650	$	587,650