Property, Plant and Equipment

9 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4. Property, Plant and Equipment

Depreciation and amortization of property, plant and equipment was $253,515 and $345,355 for the three months ended March 31, 2017 and 2016, respectively, and was $682,832 and $982,984 for the nine months ended March 31, 2017 and 2016, respectively. Inventory items included in property, plant and equipment are depreciated using the straight line method over estimated useful lives of 3 to 5 years. Depreciation of generators which are consigned to customers is expensed over a 5 year period during the nine months ended March 31, 2017 and is expensed over a 3 year period for the nine months ended March 31, 2016, and depreciation is charged to selling expenses. The impact of this change in accounting estimate was a reduction in expense of approximately $533,000 for the nine months ended March 31, 2017, compared to what the expense would have been without this change.