Property and Equipment

12 Months Ended

Sep. 30, 2024

Property and Equipment

Property and Equipment

9.  Property and Equipment

Property and equipment, net consists of the following balances:

	September 30,		September 30,
	2024		2023
Computer equipment	$	2,416,795	$	2,343,996
Furniture and office equipment		984,205		970,230
Buildings and improvements		6,198,690		5,926,584
Equipment other		15,161,225		9,554,197
Land		1,021,245		1,021,245
		25,782,160		19,816,252
Less accumulated depreciation and amortization		(12,409,862)		(11,923,825)
	$	13,372,298	$	7,892,427

Depreciation related to property and equipment was $906,581, $427,317 and $358,837 in fiscal years 2024, 2023 and 2022, respectively.

During the fiscal year ended September 30, 2024, the Company sold its King Air aircraft and recorded a gain on the sale of approximately $161 thousand. During the fiscal year ended September 30, 2022, the Company sold its Pilatus PC-12 airplane and recognized a gain on the sale of approximately $1.2 million.

Non-cash investing activities involving property, plant and equipment comprise the abandonment of fully depreciated assets with an original cost and accumulated amortization of $420,544, $94,954 and $34,656 in fiscal years 2024, 2023 and 2022, respectively.

Effective April 1, 2024, the Company changed its method of computing depreciation from accelerated methods to the straight-line method for the Company’s property and equipment, except for the manufacturing facility which was already being depreciated using the straight-line method. Based on ASC 250, “Accounting Changes and Error Corrections”, the Company determined that the change in depreciation method from an accelerated method to a straight-line method is a change in accounting estimate affected by a change in accounting principle. Per the guidance, a change in accounting estimate affected by a change in accounting principle is to be applied prospectively. The change is considered preferable because the straight-line method will more accurately reflect the pattern of usage and the expected benefits of such assets and provide greater consistency with the depreciation methods used by other companies in the Company’s industry. The net book value of assets acquired with useful lives remaining will be depreciated using the straight-line method prospectively. As a result of the change to the straight-line method of depreciating the assets, accumulated depreciation and depreciation expense decreased by $113,000 for the fiscal year ended September 30, 2024.