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ESP Espey Manufacturing & Electronics

Document and Entity Information

Document and Entity Information - USD ($)12 Months Ended
Jun. 30, 2017Sep. 12, 2017Dec. 31, 2016
Document And Entity Information
Entity Registrant NameESPEY MFG & ELECTRONICS CORP
Entity Central Index Key33533
Document Type10-K
Document Period End DateJun. 30,
2017
Amendment Flagfalse
Current Fiscal Year End Date--06-30
Is Entity a Well-known Seasoned IssuerNo
Is Entity a Voluntary FilerNo
Is Entitys Reporting Status CurrentYes
Entity Filer CategorySmaller Reporting Company
Entity Public Float $ 43,624,179
Entity Common stock, closing sale price $ 26.06
Entity Common Stock, Shares Outstanding2,371,321
Document Fiscal Period FocusFY
Document Fiscal Year Focus2017

Balance Sheets

Balance Sheets - USD ($)Jun. 30, 2017Jun. 30, 2016
ASSETS
Cash and cash equivalents $ 10,058,163 $ 10,031,644
Investment securities9,426,968 5,580,059
Trade accounts receivable, net of allowance of $3,0003,399,613 4,957,464
Income tax receivable120,179 329,298
Inventories:
Raw materials1,303,259 1,418,862
Work-in-process512,014 504,674
Costs related to contracts in process, net of advance payments of $1,366,504 and $18,313 as of June 30, 2017 and 2016, respectively7,863,538 8,810,145
Total inventories9,678,811 10,733,681
Deferred tax assets317,559 252,558
Prepaid expenses and other current assets227,306 219,688
Total current assets33,228,599 32,104,392
Property, plant and equipment, net2,265,096 2,348,525
Total assets35,493,695 34,452,917
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable2,250,115 552,787
Accrued expenses:
Salaries and wages172,045 357,910
Vacation656,199 704,761
Other250,283 196,631
Payroll and other taxes withheld46,939 49,353
Total current liabilities3,375,581 1,861,442
Deferred tax liabilities220,571 203,237
Total liabilities3,596,152 2,064,679
Commitments and Contingencies (See Note 14)
Common stock, par value $.33-1/3 per share Authorized 10,000,000 shares; Issued 3,029,874 shares as of June 30, 2017 and 2016. Outstanding 2,371,321 and 2,364,684 as of June 30, 2017 and 2016, respectively (includes 45,000 and 61,667 Unearned ESOP Shares, respectively)1,009,958 1,009,958
Capital in excess of par value17,650,335 17,253,072
Accumulated other comprehensive loss(3,599)(1,408)
Retained earnings21,670,196 22,820,938
Total stockholders equity before ESOP and treasury stock40,326,890 41,082,560
Less: Unearned ESOP shares(650,248)(891,083)
Cost of 658,553 and 665,190 shares of common stock in treasury as of June 30, 2017 and 2016, respectively(7,779,099)(7,803,239)
Total stockholders' equity31,897,543 32,388,238
Total liabilities and stockholders' equity $ 35,493,695 $ 34,452,917

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)Jun. 30, 2017Jun. 30, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts $ 3,000 $ 3,000
Advance payments $ 1,366,504 $ 18,313
Common stock, par value $ 0.3333 $ 0.3333
Common stock, shares authorized10,000,000 10,000,000
Common stock, shares issued3,029,874 3,029,874
Common stock, shares outstanding2,371,321 2,364,684
Unearned ESOP, shares45,000 61,667
Treasury stock, shares658,553 665,190

Statements of Comprehensive Inc

Statements of Comprehensive Income - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Income Statement [Abstract]
Net sales $ 22,521,012 $ 27,471,365
Cost of sales17,806,444 20,099,683
Gross profit4,714,568 7,371,682
Selling, general and administrative expenses3,188,112 3,028,449
Operating Income1,526,456 4,343,233
Other income
Interest income88,836 33,782
Other36,113 85,492
Total other income124,949 119,274
Income before provision for income taxes1,651,405 4,462,507
Provision for income taxes515,669 1,286,706
Net income1,135,736 3,175,801
Other comprehensive income, net of tax:
Unrealized (loss) gain on investment securities(2,191)2,978
Total comprehensive income $ 1,133,545 $ 3,178,779
Net income per share:
Basic $ 0.49 $ 1.39
Diluted $ 0.49 $ 1.38
Weighted average number of shares outstanding:
Basic2,312,870 2,285,686
Diluted2,324,838 2,302,034

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity - USD ($)Common Stock [Member]Capital in Excess of Par Value [Member]Accumulated Other Comprehensive Income (Loss) [Member]Retained Earnings [Member]Treasury Stock [Member]Unearned ESOP Shares [Member]Total
Balance, beginning at Jun. 30, 2015 $ 1,009,958 $ 16,785,604 $ (4,386) $ 21,865,951 $ (7,582,296) $ (1,143,957) $ 30,930,874
Balance, beginning, shares at Jun. 30, 20152,362,687 667,187 2,362,687
Net income3,175,801 $ 3,175,801
Other comprehensive income (loss), net of tax2,978 2,978
Total comprehensive income3,178,779
Stock options exercised162,488 $ 134,475 $ 296,963
Stock options exercised, shares16,300 (16,300)16,300
Stock option expense97,045 $ 97,045
Dividends paid on common stock(2,256,018)(2,256,018)
Tax effect of stock options exercised17,141 17,141
Tax effect of dividends on unallocated ESOP shares35,204 35,204
Purchase of treasury stock $ (355,418)(355,418)
Purchase of treasury stock, shares(14,303)14,303
Reduction of unearned ESOP shares190,794 252,874 443,668
Balance, ending at Jun. 30, 2016 $ 1,009,958 17,253,072 (1,408)22,820,938 $ (7,803,239)(891,083) $ 32,388,238
Balance, ending, common shares at Jun. 30, 20162,364,684 665,190 2,364,684
Net income1,135,736 $ 1,135,736
Other comprehensive income (loss), net of tax(2,191)(2,191)
Total comprehensive income1,133,545
Stock options exercised82,442 $ 68,475 $ 150,917
Stock options exercised, shares8,300 (8,300)8,300
Stock option expense129,167 $ 129,167
Dividends paid on common stock(2,307,445)(2,307,445)
Tax effect of stock options exercised9,070 9,070
Tax effect of dividends on unallocated ESOP shares20,967 20,967
Purchase of treasury stock $ (44,335)(44,335)
Purchase of treasury stock, shares(1,663)1,663
Reduction of unearned ESOP shares176,584 240,835 417,419
Balance, ending at Jun. 30, 2017 $ 1,009,958 $ 17,650,335 $ (3,599) $ 21,670,196 $ (7,779,099) $ (650,248) $ 31,897,543
Balance, ending, common shares at Jun. 30, 20172,371,321 658,553 2,371,321

Statements of Changes in Stock6

Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Other comprehensive income, tax portion $ (1,179) $ 2,874
Dividends paid per share $ 1 $ 1

Statements of Cash Flows

Statements of Cash Flows - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Cash Flows from Operating Activities:
Net income $ 1,135,736 $ 3,175,801
Adjustments to reconcile net income to net cash provided by operating activities:
Excess tax benefits from share-based compensation(9,070)(17,141)
Tax effect of dividends on unallocated ESOP shares20,967 35,204
Stock-based compensation129,167 97,045
Depreciation435,557 434,401
ESOP compensation expense417,419 443,668
Loss on disposal of assets4 147
Deferred income tax (benefit) expense(46,488)57,735
Changes in assets and liabilities:
Decrease in trade receivables, net1,557,851 1,736,937
Decrease (increase) in income tax receivable218,189 (314,874)
Decrease in inventories, net1,054,870 852,216
Increase in prepaid expenses and other current assets(7,618)(7,748)
Increase (decrease) in accounts payable1,697,328 (423,325)
(Decrease) increase in accrued salaries and wages(185,865)25,523
(Decrease) increase in vacation accrual(48,562)13,928
Increase (decrease) in other accrued expenses53,652 (352,186)
(Decrease) increase in payroll and other taxes withheld(2,414)2,271
Net cash provided by operating activities6,420,723 5,759,602
Cash Flows from Investing Activities:
Additions to property, plant and equipment(352,132)(284,210)
Purchase of investment securities(8,922,097)(4,930,146)
Proceeds from sale/maturity of investment securities5,071,818 3,514,997
Net cash used in investing activities(4,202,411)(1,699,359)
Cash Flows from Financing Activities:
Dividends paid on common stock(2,307,445)(2,846,690)
Purchase of treasury stock(44,335)(355,418)
Proceeds from exercise of stock options150,917 296,963
Excess tax benefits from share-based compensation9,070 17,141
Net cash used in financing activities(2,191,793)(2,888,004)
Increase in cash and cash equivalents26,519 1,172,239
Cash and cash equivalents, beginning of the year10,031,644 8,859,405
Cash and cash equivalents, end of the year10,058,163 10,031,644
Supplemental Schedule of Cash Flow Information:
Income taxes paid $ 323,000 $ 1,511,000

Nature of Operations

Nature of Operations12 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of OperationsNote 1.
Nature of Operations Espey Mfg. & Electronics Corp. (the
Company) is a manufacturer of electronic equipment used primarily in military and industrial applications. The principal markets
for the Company's products are companies that provide electronic support to both military and industrial applications across the
United States and at some international locations.

Summary of Significant Accounti

Summary of Significant Accounting Policies12 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesNote 2. Summary of Significant Accounting Policies Inventory Valuation, Cost Estimation and Revenue Recognition Raw materials are valued at the lower
of weighted average cost or market. Inventoried work relating to contracts
in process and work in process is valued at actual production cost, including factory overhead incurred to date. Work in
process represents spare units; parts and other inventory items acquired or produced to service units previously sold or to meet
anticipated future orders. Provision for losses on contracts is made when the existence of such losses becomes probable and estimable.
The provision for losses on contracts is included in other accrued expenses on the Company’s balance sheet. The costs
attributed to units delivered under contracts are based on the estimated average cost of all units expected to be produced.
Certain contracts are expected to extend beyond twelve months. Revenue is recognized on contracts in
the period in which the units are delivered and billed (units-of-delivery method). A significant portion of our business
is comprised of development and production contracts. Generally, revenues on long-term fixed-price contracts are recorded
on a percentage of completion basis using units of delivery as the measurement basis for progress toward completion. Percentage of completion accounting requires
judgment relative to expected sales, estimating costs and making assumptions related to technical issues and delivery schedules.
Contract costs include material, subcontract costs, labor, and an allocation of overhead costs. The estimation of cost at
completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete
the contract. Given the significance of the estimation processes and judgments described above, it is possible that materially
different amounts of expected sales and contract costs could be recorded if different assumptions were used, based on changes in
circumstances, in the estimation process. When a change in expected sales value or estimated cost is determined, changes
are reflected in current period earnings. Depreciation Depreciation of plant and equipment is
computed on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives of depreciable
assets are as follows:
Buildings and improvements 10 – 40 years
Machinery and equipment 3 – 20 years
Furniture and fixtures 7 – 10 years Income Taxes The Company follows the provisions of
Accounting Standards Codification (“ASC”) Topic 740-10, "Accounting for Income Taxes." Under the provisions of ASC 740-10, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred taxes and liabilities of a change in tax rates is recognized in earnings
in the period that includes the enactment date. In addition, ASC 740-10 requires that the tax benefit of tax-deductible dividends
on unallocated ESOP shares be recorded as a direct addition to retained earnings rather than as a reduction of income tax expense. Cash and Cash Equivalents Cash and cash equivalents consist of
cash and money market funds. The Company considers all highly liquid investments with original maturities of three months
or less to be cash equivalents. Investment Securities The Company accounts for its investment
securities in accordance with ASC 320-10-25, “Accounting for Certain Investments in Debt and Equity Securities.”
Investment securities at June 30, 2017 and 2016 consist of certificates of deposit and municipal bonds. The Company classifies
investment securities as available-for-sale. Unrealized holding gains and losses, net of related tax effect, on available-for-sale
securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized.
Realized gains and losses for securities classified as available-for-sale are included in earnings and are determined using the
specific identification method. Interest income is recognized when earned. Fair values are based on quoted market prices
available as of the balance sheet date, and are therefore considered a Level 1 valuation. Fair Value of Financial Instruments ASC 820 establishes a fair value hierarchy
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair
value. The standard describes three levels of inputs that may be used to measure fair value: § § § The carrying amounts of financial instruments,
including cash and cash equivalents, short term investments, accounts receivable, accounts payable and accrued expenses, approximated
fair value as of June 30, 2017 and 2016 because of the immediate or short-term maturity of these financial instruments. Accounts Receivable and Allowance for
Doubtful Accounts The Company extends credit to its customers
in the normal course of business and collateral is generally not required for trade receivables. Exposure to credit risk
is controlled through the use of credit approvals, credit limits, and monitoring procedures. Accounts receivable are reported
net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances.
An account is generally considered past due after thirty (30) days from the invoice date. Interest is not charged on
past due balances. Based on these factors, there was an allowance for doubtful accounts of $3,000 at June 30, 2017 and 2016.
Changes to the allowance for doubtful accounts are charged to expense and reduced by charge-offs, net of recoveries. Per Share Amounts ASC 260-10 “Earnings Per Share”
requires the Company to calculate net income (loss) per share based on basic and diluted net income (loss) per share, as defined.
Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common
stock were exercised or converted into common stock. The dilutive effect of outstanding options issued by the Company are
reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options will only have a dilutive
effect when the average market price of common stock during the period exceeds the exercise price of the options. Comprehensive Income Comprehensive income consists of net
income and other comprehensive income. Other comprehensive income for fiscal years ended June 30, 2017 and 2016 consists
of unrealized holding gains and losses on available-for-sale securities. Use of Estimates The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Investment Tax Credits Investment tax credits are accounted
for as a reduction of income tax expense in the year taxes payable are reduced. Unused credits are reflected as a deferred tax
asset. Reclassifications Certain reclassifications may have been
made to the prior year financial statements to conform to the current year presentation. Recently Issued Accounting Standards In July 2015, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic
330): Simplifying the Measurement of Inventory.” ASU No. 2015-11 requires inventory measured using any method other
than last-in, first out or the retail inventory method to be subsequently measured at the lower of cost and net realizable value,
rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price, less the estimated
costs to complete, dispose, and transport such inventory. ASU No. 2015-11 will be effective for fiscal years and interim
periods beginning after December 15, 2016. ASU No. 2015-11 is required to be applied prospectively and early adoption is
permitted. The Company’s adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s
financial position or results of operations. In May 2014, the FASB issued ASU No.
2014-09, “Revenue from Contracts with Customers, ” In subsequent periods, the FASB issued
additional ASUs intended to clarify specific aspects related to the interpretation and implementation of ASU No. 2014-09. In March
2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations
(Reporting Revenue Gross versus Net)” to provide guidance on principal versus agent considerations by an entity as discussed
in ASU No. 2014-09. ASU No. 2016-08 provides criteria to be assessed by an entity when determining whether it is the principal
or agent in relation to the goods or services which the company is contractually obligated to provide to the customer. Among these
considerations are; identifying the unit of account at which the entity should assess whether it is a principal or an agent, identifying
the nature of the good or service provided to the customer; applying the control principle to certain types of transactions; and,
interaction of the control principle with the indicators provided to assist in the principle versus agent evaluation. In April
2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – (Topic 606): Identifying Performance
Obligations and Licensing” to provide implementation guidance related to the necessary judgements required in identifying
performance obligations of a contract and guidance related to recognition of licensing revenues. In May 2016, the FASB issued ASU
No. 2016-12, “Revenue from Contracts with Customers – (Topic 606): Narrow-Scope Improvements and Practical Expedients”
to provide guidance related to the implementation of ASU No. 2014-09 in the following areas; assessing collectability for contracts
that do not meet Step 1 of revenue recognition, presentation of sales taxes, noncash consideration, contract modifications at transition,
and completed contracts at transition. These standards are effective for annual
periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a
full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect
certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09
recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted for annual
periods beginning after December 15, 2016 and interim periods therein. We are currently evaluating the impact of our pending
adoption of ASU No. 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard
in fiscal year 2019. In November 2015, the FASB issued ASU
No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The guidance requires
the classification of deferred tax assets and liabilities as non-current in a classified balance sheet. The current requirement
that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not
affected by this update. ASU No. 2015-17 will be effective for annual periods beginning after December 15, 2016, and interim periods
within those annual periods. ASU No. 2015-17 may be applied prospectively or retrospectively, and early adoption is permitted.
Adoption of ASU No. 2015-17 would have the following
impact on the Company’s financial statements at June 30, 2017; a decrease in current assets of $317,559, a decrease in non-current
liabilities of $220,571 and an increase in non-current assets of $96,988. In January 2016, the FASB issued ASU
No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and
Financial Liabilities”. The amendments in this Update address certain aspects of recognition, measurement, presentation and
disclosure of financial instruments (primarily equity securities) in order to enhance the reporting model for financial instruments
to provide users of financial statements with more decision-useful information. ASU No. 2016-01 will be effective for annual periods
beginning after December 15, 2017, and interim periods within those annual periods. The Company is evaluating the impact that ASU
No. 2016-01 will have on the Company's financial statements. In March 2016, the FASB issued ASU No.
2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”.
The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including
the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash
flows. Additionally, this ASU allows an entity to make an accounting policy election to either estimate the number of awards that
are expected to vest (current GAAP) or account for forfeitures as they occur. ASU No. 2016-09 will be effective for annual periods
beginning after December 15, 2016, and interim periods within those annual periods. ASU No. 2016-09 may be applied prospectively
or retrospectively, and early adoption is permitted. Adoption of ASU No. 2016-09 will not have a material impact on the Company’s
financial statements. In March 2017, the FASB issued ASU No.
2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable
Debt Securities”. The amendments in this Update shorten the amortization period for certain callable debt securities held
at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. ASU No. 2017-08 will
be effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company
is evaluating the impact that ASU No. 2017-08 will have on the Company's financial statements. Impairment of Long-Lived Assets Long-lived assets, including property,
plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying
amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount
of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount
of the asset exceeds the fair value of the asset. There were no impairments of long-lived assets in fiscal years 2017 and
2016. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount
or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as
held for sale are presented separately in the appropriate asset and liability sections of the balance sheet, if applicable. Concentrations of Risk The market for our defense electronics
products is largely dependent on the availability of new contracts from the United States and foreign governments to prime contractors
to which we provide components. Any decline in expenditures by the United States or foreign governments may have an adverse
effect on our financial performance. Generally, U.S. Government contracts
are subject to procurement laws and regulations. Some of the Company’s contracts are governed by the Federal Acquisition
Regulation (FAR), which lays out uniform policies and procedures for acquiring goods and services by the U.S. Government, and agency-specific
acquisition regulations that implement or supplement the FAR. For example, the Department of Defense implements the FAR through
the Defense Federal Acquisition Regulation (DFAR). The FAR also contains guidelines and
regulations for managing a contract after award, including conditions under which contracts may be terminated, in whole or in part,
at the government’s convenience or for default. If a contract is terminated for the convenience of the government,
a contractor is entitled to receive payments for its allowable costs and, in general, the proportionate share of fees or earnings
for the work done. If a contract is terminated for default, the government generally pays for only the work it has accepted.
These regulations also subject the Company to financial audits and other reviews by the government of its costs, performance, accounting
and general business practices relating to its contracts, which may result in adjustment of the Company’s contract-related
costs and fees.

Investment Securities

Investment Securities12 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Investment SecuritiesNote 3. Investment Securities Investment securities at June 30, 2017
and 2016 consist of certificates of deposit and municipal bonds which are classified as available-for-sale securities and have
been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale
securities by major security type at June 30, 2017 and 2016 are as follows:
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
2017
Certificates of deposit $ 8,557,000 $ — $ — $ 8,557,000
Municipal bonds 871,872 258 (2,162 ) 869,968
2017 Total investment securities $ 9,428,872 $ 258 $ (2,162 ) $ 9,426,968
2016
Certificates of deposit $ 4,871,000 $ — $ — $ 4,871,000
Municipal bonds 707,593 1,466 — 709,059
2016 Total investment securities $ 5,578,593 $ 1,466 $ — $ 5,580,059 The portfolio is diversified and highly
liquid and primarily consists of investment grade fixed income instruments. At June 30, 2017, the Company did not have any investments
in individual securities that have been in a continuous loss position considered to be other than temporary. As of June 30, 2017 and 2016, the remaining
contractual maturities of available-for-sale securities were as follows:
Years to Maturity
Less than One to
One Year Five Years Total
2017
Available-for-sale $ 8,829,542 $ 597,426 $ 9,426,968
2016
Available-for-sale $ 4,811,511 $ 768,548 $ 5,580,059

Contracts in Process

Contracts in Process12 Months Ended
Jun. 30, 2017
Contractors [Abstract]
Contracts in ProcessNote 4. Contracts in Process Contracts
in process at June 30, 2017 and 2016 are as follows:
2017 2016
Gross contract value $ 43,140,921 $ 39,061,415
Costs related to contracts in process, net of progress payments
of $1,366,504 and $18,313 at June 30, 2017 and 2016 $ 7,863,538 $ 8,810,145 Included in costs relating to contracts
in process at June 30, 2017 and 2016 are costs of $1,635,661 3,944,035

Property, Plant and Equipment

Property, Plant and Equipment12 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and EquipmentNote 5. Property, Plant and Equipment Property, plant and equipment at June
30, 2017 and 2016 is as follows:
2017 2016
Land $ 45,000 $ 45,000
Building and improvements 4,304,366 4,259,266
Machinery and equipment 9,028,835 8,735,432
Furniture and fixtures 170,120 159,951
13,548,321 13,199,649
Accumulated depreciation (11,283,225 ) (10,851,124 )
Property, plant and equipment, net $ 2,265,096 $ 2,348,525 Depreciation expense was $435,557 and
$434,401 for the years ended June 30, 2017 and 2016, respectively.

Pension Expense

Pension Expense12 Months Ended
Jun. 30, 2017
Retirement Benefits [Abstract]
Pension ExpenseNote 6.
Pension Expense Under terms of a negotiated union contract
which expires on June 30, 2018, the Company is obligated to make contributions to a union-sponsored International Brotherhood of
Electrical Workers Local 1799 defined benefit pension plan (Plan identifying number is 14-6065199) covering eligible employees.
Such contributions and expenses are based upon hours worked at a specified rate and amounted to
$89,023 in fiscal year 2017 and $97,336 in fiscal year 2016. These contributions represent more than five percent of the total
plan contributions. For the years beginning January 1, 2017 and 2016, the Plan was in the “green zone” which means
it is neither endangered nor critical status. A Funding Improvement Plan, entered into by Plan Trustees in fiscal year 2013, when
the Plan was in “critical status,” calls for an increase in contributions starting January 1, 2016 of $0.04 per hour
for each year for five years thereafter. The increase did not and will not have a material impact on the Company’s financial
statements. The Company sponsors a 401(k) plan for non-union workers
with employee and employer matching contributions. The employer match is 10% of the employee contribution and was $49,247 and $47,175,
for fiscal years 2017 and 2016, respectively.

Provision for Income Taxes

Provision for Income Taxes12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]
Provision for Income TaxesNote 7. Provision for Income Taxes A summary of the components of the provision
for income taxes for the years ended June 30, 2017 and 2016 is as follows:
2017 2016
Current tax expense - federal $ 559,171 $ 1,230,367
Current tax expense (benefit) - state 2,986 (1,396 )
Deferred tax (benefit) expense (46,488 ) 57,735
Provision for income taxes $ 515,669 $ 1,286,706 Deferred income taxes reflect the impact
of "temporary differences" between the amount of assets and liabilities for financial reporting purposes and such amounts
measured by tax laws and regulations. These "temporary differences" are determined in accordance with ASC 740-10. The combined U.S. federal and state effective
income tax rates of 31.2% and 28.8%, for 2017 and 2016 respectively, differed from the statutory U.S. federal income tax rate for
the following reasons:
2017 2016
U.S. federal statutory income tax rate 34.0 % 34.0 %
Increase (reduction) in rate resulting from:
State franchise tax, net of federal income tax benefit 0.1 —
ESOP cost versus Fair Market Value 3.6 1.5
Dividend on allocated ESOP shares (7.2 ) (3.2 )
Qualified production activities (2.8 ) (2.7 )
Stock-based
compensation 1.8 (0.2 )
Other 1.7 (0.6 )
Effective tax rate 31.2 % 28.8 % For the years ended June 30, 2017 and 2016
deferred income tax (benefit) expense of ($46,488) and $57,735, respectively, results from the changes in temporary differences
for each year. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of
June 30, 2017 and 2016 are presented as follows:
2017 2016
Deferred tax assets:
Accrued expenses $ 195,915 $ 151,210
ESOP 73,696 90,072
Stock-based compensation 81,659 74,287
Inventory - effect of uniform capitalization 36,935 27,266
Unrealized loss (gain) on investment securities 666 (513 )
Other 2,384 308
Total deferred tax assets $ 391,255 $ 342,630
Deferred tax liability:
Property, plant and equipment - principally due
to differences in depreciation methods $ 294,267 $ 293,309
Total deferred tax liability 294,267 293,309
Net deferred tax asset $ 96,988 $ 49,321 In assessing the realizability of deferred
tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be
realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities,
projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable
income and projection for future taxable income over the period in which the deferred tax assets are deductible, management believes
it is more likely than not that the Company will realize the benefits of these temporary differences without consideration of a
valuation allowance. As the result of the implementation of
the FASB interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes – An Interpretation of
FASB Statement No. 109, the Company recognized no material adjustments to unrecognized tax benefits. As of June 30, 2017 and 2016,
the Company has no unrecognized tax benefits. The Company recognizes interest and penalties
in general and administrative expense. As of June 30, 2017 and 2016, the Company has not recorded any provision for accrued interest
and penalties. By federal and state tax statue, federal
and state tax returns are subject to audit for three years from date of filing, unless the return was audited within that period.
As such, federal returns for tax years ending June 30, 2017, 2016, 2015, and 2014 remain open to examination by the IRS. State
returns for tax years ending June 30, 2017, 2016, 2015 and 2014 remain open to examination by the State of New York.

Significant Customers

Significant Customers12 Months Ended
Jun. 30, 2017
Significant Customers [Abstract]
Significant CustomersNote 8.
Significant Customers A significant portion of the Company's
business is the production of military and industrial electronic equipment for use by the U.S. and foreign governments and certain
industrial customers. Sales to two domestic customers accounted for approximately 45% of total
sales in fiscal year 2017. Sales to two domestic customers accounted for approximately 49% of total sales in fiscal year 2016.
Export sales in fiscal years 2017 and
2016 were approximately $1,730,000 and $2,125,000, respectively.

Stock Rights Plan

Stock Rights Plan12 Months Ended
Jun. 30, 2017
Stock Rights Plan [Abstract]
Stock Rights PlanNote 9. Stock Rights Plan The Company has a Shareholder Rights
Plan that expires on December 31, 2019 If a 15% or larger shareholder should
engage in certain self-dealing transactions or a merger with the Company in which the Company is the surviving corporation and
its shares of common stock are not changed or converted into equity securities of any other person, or if any person were to become
the beneficial owner of 15% or more of the Company's common stock, then each right not owned by such shareholder or related parties
of such shareholder (all of which will be void) will entitle its holder to purchase, at the right's then current exercise price,
shares of the Company's common stock having a value of twice the right's exercise price. In addition, if the Company is involved
in any other merger or consolidation with, or sells 50% or more of its assets or earning power to another person, each right will
entitle its holder to purchase, at the right's then current exercise price, shares of common stock of such other person having
a value of twice the right's exercise price. The Company generally is entitled to
redeem the rights at one cent per right at any time until the 15th day (or 25th day if extended by the Company's Board of Directors)
following public announcement that a 15% position has been acquired or the commencement of a tender or exchange offer which, if
consummated, would result in the offeror, together with all affiliates and associates thereof, being the beneficial owner of 15%
or more of the Company's common stock.

Employee Stock Ownership Plan

Employee Stock Ownership Plan12 Months Ended
Jun. 30, 2017
Employee Stock Ownership Plan [Abstract]
Employee Stock Ownership PlanNote 10.
Employee Stock Ownership Plan The Company sponsors a leveraged
employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and
are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on
unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service.
Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released
and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP
in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP Shares in the statement
of financial position. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the
current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation
expense was $417,419 and $443,668 for the years ended June 30, 2017 and 2016, respectively. The ESOP shares as of June 30, 2017
and 2016 were as follows:
2017 2016
Allocated shares 456,099 441,095
Unreleased shares 45,000 61,667
Total shares held by the ESOP 501,099 502,762
Fair value of unreleased shares $ 1,008,900 $ 1,603,959 During the twelve months ended June
30, 2017, the Company repurchased 1,663 shares previously held in the ESOP for $44,335. During the twelve months ended June 30,
2016 the Company repurchased 14,303 shares previously held by the ESOP for $355,418.

Stock Based Compensation

Stock Based Compensation12 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based CompensationNote 11. Stock-based Compensation The Company follows ASC 718 in establishing
standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services, as well
as transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the
entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires that the
cost resulting from all share-based payment transactions be recognized in the financial statements based on the fair value of the
share-based payment. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment transactions
with employees, except for equity instruments held by employee share ownership plans. Total stock-based compensation expense
recognized in the statements of comprehensive income for the fiscal years ended June 30, 2017 and 2016, was $129,167 and $97,045,
respectively, before income taxes. The related total deferred tax benefit as of June 30, 2017 and 2016 was approximately $11,606
and $7,971, respectively. ASC 718 requires the tax benefits resulting from tax deductions in excess of the compensation cost recognized
for those options to be classified and reported as both an operating cash outflow and a financing cash inflow. As of June 30, 2017, there was approximately
$117,827 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the
next 1.5 years. The total deferred tax benefit related to these awards is approximately $10,728. As of June 30, 2017, the Company had
one employee stock option plan under which options could be granted, the 2007 Stock Option and Restricted Stock Plan (the "2007
Plan"). The Board of Directors could grant options to acquire shares of common stock to employees of the Company at the fair
market value of the common stock on the date of grant. Generally, options granted have a two-year vesting period based on two years
of continuous service and have a ten-year contractual life. Option grants provide for accelerated vesting if there is a change
in control. Shares issued upon the exercise of options are from those held in Treasury. The 2007 Plan was approved by the Company's
shareholders at the Company's Annual Meeting on November 30, 2007. Options covering 400,000 shares are authorized for issuance
under the 2007 Plan, of which 278,300 have been granted and 197,800 are outstanding as of June 30, 2017. Subsequent to June 30,
2017 the 2007 Plan expired and the Board of Directors adopted the 2017 Stock Options and Restricted Stock Plan subject to shareholder
approval at the Company’s annual meeting scheduled on December 1, 2017. ASC 718 requires the use of a valuation
model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model,
which incorporates various assumptions including those for volatility, expected life, and interest rates. The table below outlines the weighted average
assumptions that the Company used to calculate the fair value of each option award for the year ended June 30, 2017 and 2016.
2017 2016
Dividend yield 3.85% 3.99%
Expected stock price volatility 29.70% 27.80%
Risk-free interest rate 1.84% 1.20%
Expected option life (in years) 4.6 yrs 4.2 yrs
Weighted average fair value per share
of options granted during the period $ 4.640 $ 3.866 The Company pays dividends quarterly
and paid cash dividends totaling $1.00 per share for the twelve months ended June 30, 2017 and 2016. Expected stock price volatility
is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available
on U.S. Treasury issues with an equivalent term approximating the expected life of the options. The expected option life (in years)
represents the estimated period of time until exercise and is based on actual historical experience. The following table summarizes stock
option activity during the twelve months ended June 30, 2017:
Employee Stock Options Plan
Weighted
Number of Weighted Average
Shares Average Remaining Aggregate
Subject Exercise Contractual Intrinsic
to Option Price Term Value
Balance at July 1, 2016 170,450 $ 23.84 5.73
Granted 41,150 $ 26.25 9.43
Exercised (8,300 ) $ 18.18 —
Forfeited or expired (5,500 ) $ 24.11 —
Outstanding at June 30, 2017 197,800 $ 24.57 5.86 $ 124,384
Vested or expected to vest at June 30, 2017 191,230 $ 24.52 5.74 $ 124,384
Exercisable at June 30, 2017 154,900 $ 24.13 4.89 $ 124,384 The aggregate intrinsic value in the
table above represents the total pretax intrinsic value (the difference between the closing sale price of the Company’s common
stock as reported on the NYSE MKT on June 30, 2017 and the exercise price, multiplied by the number of in-the-money options) that
would have been received by the option holders if all option holders had exercised their options on June 30, 2017. This amount
changes based on the fair market value of the Company’s common stock. The total intrinsic values of the options exercised
during the twelve months ended June 30, 2017 and 2016 was $20,769 and $40,981, respectively. The following table summarizes changes in non-vested stock
options during the twelve months ended June 30, 2017:
Weighted
Number of Average
Shares Grant Date
Subject Fair Value
to Option (per Option)
Non-Vested at July 1, 2016 45,800 $ 4.564
Granted 41,150 4.640
Vested (41,050 ) 4.609
Forfeited or expired (3,000 ) 4.681
Non-Vested at June 30, 2017 42,900 $ 4.586

Concentration of Credit Risk

Concentration of Credit Risk12 Months Ended
Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentration of Credit RiskNote 12. Concentration of Credit Risk Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments and
accounts receivable. The Company maintains cash and cash equivalents with various financial institutions. At times such investments
may be in excess of FDIC insurance limits. As disclosed in Note 8, a significant portion of the Company's business is the production
of military and industrial electronic equipment for use by the U.S. and foreign governments and certain industrial customers. The
related accounts receivable balance , as a percentage of the Company's total trade accounts receivable
balance, was 41% represented by two customers at June 30, 2017 and 40% represented by two customers at June 30, 2016. Although the Company's exposure to credit
risk associated with nonpayment of these concentrated balances is affected by the conditions or occurrences within the U.S. and
foreign governments, the Company believes that its trade accounts receivable credit risk exposure is limited. The Company performs
ongoing credit evaluations of its customer's financial conditions and requires collateral, such as progress payments, in certain
circumstances. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific
customers, historical trends and other information.

Related Parties

Related Parties12 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]
Related PartiesNote 13. Related Parties The administration of the shares of
common stock held by the ESOP Trust is subject to the Amended and Restated Plan and a Trust Agreement, each effective as of July
1, 2016. The Trustees’ rights with respect to the disposition of shares are governed by the terms of the Plan and the Trust
Agreement. As to shares that have been allocated to the accounts of participants in the ESOP Trust, the Plan provides that the
Trustees are required to vote such shares in accordance with instructions received from the participants. As to unallocated shares
and allocated shares for which voting instructions have not been received from participants, the Plan provides that the Trustees
are required to vote such shares in accordance with the direction of the Board of Directors of the Company under the terms of the
Plan and Trust Agreement. See Note 10 for additional information regarding the ESOP.

Commitments and Contingencies

Commitments and Contingencies12 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesNote 14.
Commitments and Contingencies The Company at certain times enters
into standby letters of credit agreements with financial institutions primarily relating to the guarantee of future performance
on certain contracts. Contingent liabilities on outstanding standby letters of credit agreements aggregated to zero at June 30,
2017 and 2016. The Company, as a U.S. Government contractor, is subject to audits, reviews, and investigations by the U.S. Government
related to its negotiation and performance of government contracts and its accounting for such contracts. Failure to comply with
applicable U.S. Government standards by a contractor may result in suspension from eligibility for award of any new government
contract and a guilty plea or conviction may result in debarment from eligibility for awards. The government may, in certain cases,
also terminate existing contracts, recover damages, and impose other sanctions and penalties. As a result of contract audits the
Company will determine a range of possible outcomes and in accordance with ASC 450 “Contingencies” the Company will
accrue amounts within a range that appears to be its best estimate of a possible outcome. Adjustments are made to accruals, if
any, periodically based on current information.

Stockholders' Equity

Stockholders' Equity12 Months Ended
Jun. 30, 2017
Equity [Abstract]
Stockholders' EquityNote 15. Stockholders' Equity Reservation of Shares The Company has reserved common shares
for future issuance as follows as of June 30, 2017:
Stock options outstanding 197,800
Stock options available for issuance 156,550
Number of common shares reserved 354,350 The following table sets forth the reconciliation
of the numerators and denominators of the basic and diluted earnings per share computations for continuing operations for the years
ended June 30:
2017 2016
Numerator:
Net income $ 1,135,736 $ 3,175,801
Denominator:
Basic EPS:
Common shares outstanding, beginning of period 2,364,684 2,362,687
Unearned ESOP shares (61,667 ) (79,167 )
Weighted average common shares issued during the period 4,465 5,975
Weighted average common shares purchased during the period (879 ) (10,395 )
Weighted average ESOP shares earned during the period 6,267 6,586
Denominator for basic earnings per common shares –
Weighted average common shares 2,312,870 2,285,686
Diluted EPS:
Common shares outstanding, beginning of period 2,364,684 2,362,687
Unearned ESOP shares (61,667 ) (79,167 )
Weighted average common shares issued during the period 4,465 5,975
Weighted average common shares purchased during the period (879 ) (10,395 )
Weighted average ESOP shares earned during the period 6,267 6,586
Weighted average dilutive effect of stock options 11,968 16,348
Denominator for diluted earnings per common shares –
Weighted average common shares 2,324,838 2,302,034 Not included in this computation of earnings
per share for the year ended June 30, 2017 and 2016 were options to purchase 151,800 and 113,250 shares, respectively, of the Company’s
common stock. These options were excluded because their inclusion would have been anti-dilutive due to the average strike price
exceeding the average market price of those shares. The Company paid cash dividends on common
stock of $1.00 per share for the fiscal year ended June 30, 2017 and 2016. Subsequent to June 30, 2017, the Board of Directors
has authorized the payment of a fiscal year 2018 first quarter dividend of $0.25 payable September 29, 2017 to shareholders of
record on September 25, 2017. Our Board of Directors assesses the Company’s dividend policy periodically. There is no assurance
that the Board of Directors will maintain the amount of the regular cash dividend during any future years.

Line of Credit

Line of Credit12 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]
Line of CreditNote 16. Line of Credit At June 30, 2017, the Company has an
uncommitted and unused Line of Credit with a financial institution. The agreement provides that the Company may borrow up to $3,000,000.
The line provides for interest payments equal to the LIBOR Daily Floating Rate plus 2.00%. Any borrowing under the line of credit
will be collateralized by accounts receivable. The line will be reviewed annually for renewal. All outstanding balances are payable
no later than the expiration date of the agreement, unless other terms are agreed to by the lender.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)12 Months Ended
Jun. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)Note 17.
Quarterly Financial Information (Unaudited)
First Second Third Fourth
2017 Quarter Quarter Quarter Quarter
Net sales $ 6,068,684 $ 5,667,624 $ 5,324,104 $ 5,460,600
Gross profit 1,343,748 1,080,145 1,128,505 1,162,170
Net income 420,825 244,079 279,173 191,659
Net income per share -
Basic 0.18 0.11 0.12 0.08
Diluted 0.18 0.11 0.12 0.08
2016
Net sales $ 6,279,436 $ 7,242,020 $ 7,217,922 $ 6,731,987
Gross profit 1,968,320 1,588,043 2,148,223 1,667,096
Net income 878,530 614,427 972,468 710,376
Net income per share -
Basic 0.38 0.27 0.43 0.31
Diluted 0.38 0.27 0.43 0.30

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)12 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]
Inventory Valuation, Cost Estimation and Revenue RecognitionInventory Valuation, Cost Estimation and Revenue Recognition Raw materials are valued at the lower
of weighted average cost or market. Inventoried work relating to contracts
in process and work in process is valued at actual production cost, including factory overhead incurred to date. Work in
process represents spare units; parts and other inventory items acquired or produced to service units previously sold or to meet
anticipated future orders. Provision for losses on contracts is made when the existence of such losses becomes probable and estimable.
The provision for losses on contracts is included in other accrued expenses on the Company’s balance sheet. The costs
attributed to units delivered under contracts are based on the estimated average cost of all units expected to be produced.
Certain contracts are expected to extend beyond twelve months. Revenue is recognized on contracts in
the period in which the units are delivered and billed (units-of-delivery method). A significant portion of our business
is comprised of development and production contracts. Generally, revenues on long-term fixed-price contracts are recorded
on a percentage of completion basis using units of delivery as the measurement basis for progress toward completion. Percentage of completion accounting requires
judgment relative to expected sales, estimating costs and making assumptions related to technical issues and delivery schedules.
Contract costs include material, subcontract costs, labor, and an allocation of overhead costs. The estimation of cost at
completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete
the contract. Given the significance of the estimation processes and judgments described above, it is possible that materially
different amounts of expected sales and contract costs could be recorded if different assumptions were used, based on changes in
circumstances, in the estimation process. When a change in expected sales value or estimated cost is determined, changes
are reflected in current period earnings.
DepreciationDepreciation Depreciation of plant and equipment is
computed on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives of depreciable
assets are as follows:
Buildings and improvements 10 – 40 years
Machinery and equipment 3 – 20 years
Furniture and fixtures 7 – 10 years
Income TaxesIncome Taxes The Company follows the provisions of
Accounting Standards Codification (“ASC”) Topic 740-10, "Accounting for Income Taxes." Under the provisions of ASC 740-10, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred taxes and liabilities of a change in tax rates is recognized in earnings
in the period that includes the enactment date. In addition, ASC 740-10 requires that the tax benefit of tax-deductible dividends
on unallocated ESOP shares be recorded as a direct addition to retained earnings rather than as a reduction of income tax expense.
Cash and Cash EquivalentsCash and Cash Equivalents Cash and cash equivalents consist of
cash and money market funds. The Company considers all highly liquid investments with original maturities of three months
or less to be cash equivalents.
Investment SecuritiesInvestment Securities The Company accounts for its investment
securities in accordance with ASC 320-10-25, “Accounting for Certain Investments in Debt and Equity Securities.”
Investment securities at June 30, 2017 and 2016 consist of certificates of deposit and municipal bonds. The Company classifies
investment securities as available-for-sale. Unrealized holding gains and losses, net of related tax effect, on available-for-sale
securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized.
Realized gains and losses for securities classified as available-for-sale are included in earnings and are determined using the
specific identification method. Interest income is recognized when earned. Fair values are based on quoted market prices
available as of the balance sheet date, and are therefore considered a Level 1 valuation.
Fair Value of Financial InstrumentsFair Value of Financial Instruments ASC 820 establishes a fair value hierarchy
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair
value. The standard describes three levels of inputs that may be used to measure fair value: § § § The carrying amounts of financial instruments,
including cash and cash equivalents, short term investments, accounts receivable, accounts payable and accrued expenses, approximated
fair value as of June 30, 2017 and 2016 because of the immediate or short-term maturity of these financial instruments.
Accounts receivable and allowance for doubtful accountsAccounts Receivable and Allowance for
Doubtful Accounts The Company extends credit to its customers
in the normal course of business and collateral is generally not required for trade receivables. Exposure to credit risk
is controlled through the use of credit approvals, credit limits, and monitoring procedures. Accounts receivable are reported
net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances.
An account is generally considered past due after thirty (30) days from the invoice date. Interest is not charged on
past due balances. Based on these factors, there was an allowance for doubtful accounts of $3,000 at June 30, 2017 and 2016.
Changes to the allowance for doubtful accounts are charged to expense and reduced by charge-offs, net of recoveries.
Per Share AmountsPer Share Amounts ASC 260-10 “Earnings Per Share”
requires the Company to calculate net income (loss) per share based on basic and diluted net income (loss) per share, as defined.
Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common
stock were exercised or converted into common stock. The dilutive effect of outstanding options issued by the Company are
reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options will only have a dilutive
effect when the average market price of common stock during the period exceeds the exercise price of the options.
Comprehensive IncomeComprehensive Income Comprehensive income consists of net
income and other comprehensive income. Other comprehensive income for fiscal years ended June 30, 2017 and 2016 consists
of unrealized holding gains and losses on available-for-sale securities.
Use of EstimatesUse of Estimates The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Investment Tax CreditsInvestment Tax Credits Investment tax credits are accounted
for as a reduction of income tax expense in the year taxes payable are reduced. Unused credits are reflected as a deferred tax
asset.
ReclassificationsReclassifications Certain reclassifications may have been
made to the prior year financial statements to conform to the current year presentation.
Recently Issued Accounting StandardsRecently Issued Accounting Standards In July 2015, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic
330): Simplifying the Measurement of Inventory.” ASU No. 2015-11 requires inventory measured using any method other
than last-in, first out or the retail inventory method to be subsequently measured at the lower of cost and net realizable value,
rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price, less the estimated
costs to complete, dispose, and transport such inventory. ASU No. 2015-11 will be effective for fiscal years and interim
periods beginning after December 15, 2016. ASU No. 2015-11 is required to be applied prospectively and early adoption is
permitted. The Company’s adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s
financial position or results of operations. In May 2014, the FASB issued ASU No.
2014-09, “Revenue from Contracts with Customers, ” In subsequent periods, the FASB issued
additional ASUs intended to clarify specific aspects related to the interpretation and implementation of ASU No. 2014-09. In March
2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations
(Reporting Revenue Gross versus Net)” to provide guidance on principal versus agent considerations by an entity as discussed
in ASU No. 2014-09. ASU No. 2016-08 provides criteria to be assessed by an entity when determining whether it is the principal
or agent in relation to the goods or services which the company is contractually obligated to provide to the customer. Among these
considerations are; identifying the unit of account at which the entity should assess whether it is a principal or an agent, identifying
the nature of the good or service provided to the customer; applying the control principle to certain types of transactions; and,
interaction of the control principle with the indicators provided to assist in the principle versus agent evaluation. In April
2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – (Topic 606): Identifying Performance
Obligations and Licensing” to provide implementation guidance related to the necessary judgements required in identifying
performance obligations of a contract and guidance related to recognition of licensing revenues. In May 2016, the FASB issued ASU
No. 2016-12, “Revenue from Contracts with Customers – (Topic 606): Narrow-Scope Improvements and Practical Expedients”
to provide guidance related to the implementation of ASU No. 2014-09 in the following areas; assessing collectability for contracts
that do not meet Step 1 of revenue recognition, presentation of sales taxes, noncash consideration, contract modifications at transition,
and completed contracts at transition. These standards are effective for annual
periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a
full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect
certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09
recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted for annual
periods beginning after December 15, 2016 and interim periods therein. We are currently evaluating the impact of our pending
adoption of ASU No. 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard
in fiscal year 2019. In November 2015, the FASB issued ASU
No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The guidance requires
the classification of deferred tax assets and liabilities as non-current in a classified balance sheet. The current requirement
that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not
affected by this update. ASU No. 2015-17 will be effective for annual periods beginning after December 15, 2016, and interim periods
within those annual periods. ASU No. 2015-17 may be applied prospectively or retrospectively, and early adoption is permitted.
Adoption of ASU No. 2015-17 would have the following
impact on the Company’s financial statements at June 30, 2017; a decrease in current assets of $317,559, a decrease in non-current
liabilities of $220,571 and an increase in non-current assets of $96,988. In January 2016, the FASB issued ASU
No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and
Financial Liabilities”. The amendments in this Update address certain aspects of recognition, measurement, presentation and
disclosure of financial instruments (primarily equity securities) in order to enhance the reporting model for financial instruments
to provide users of financial statements with more decision-useful information. ASU No. 2016-01 will be effective for annual periods
beginning after December 15, 2017, and interim periods within those annual periods. The Company is evaluating the impact that ASU
No. 2016-01 will have on the Company's financial statements. In March 2016, the FASB issued ASU No.
2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”.
The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including
the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash
flows. Additionally, this ASU allows an entity to make an accounting policy election to either estimate the number of awards that
are expected to vest (current GAAP) or account for forfeitures as they occur. ASU No. 2016-09 will be effective for annual periods
beginning after December 15, 2016, and interim periods within those annual periods. ASU No. 2016-09 may be applied prospectively
or retrospectively, and early adoption is permitted. Adoption of ASU No. 2016-09 will not have a material impact on the Company’s
financial statements. In March 2017, the FASB issued ASU No.
2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable
Debt Securities”. The amendments in this Update shorten the amortization period for certain callable debt securities held
at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. ASU No. 2017-08 will
be effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company
is evaluating the impact that ASU No. 2017-08 will have on the Company's financial statements.
Impairment of Long-Lived AssetsImpairment of Long-Lived Assets Long-lived assets, including property,
plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying
amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount
of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount
of the asset exceeds the fair value of the asset. There were no impairments of long-lived assets in fiscal years 2017 and
2016. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount
or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as
held for sale are presented separately in the appropriate asset and liability sections of the balance sheet, if applicable.
Concentrations of RiskConcentrations of Risk The market for our defense electronics
products is largely dependent on the availability of new contracts from the United States and foreign governments to prime contractors
to which we provide components. Any decline in expenditures by the United States or foreign governments may have an adverse
effect on our financial performance. Generally, U.S. Government contracts
are subject to procurement laws and regulations. Some of the Company’s contracts are governed by the Federal Acquisition
Regulation (FAR), which lays out uniform policies and procedures for acquiring goods and services by the U.S. Government, and agency-specific
acquisition regulations that implement or supplement the FAR. For example, the Department of Defense implements the FAR through
the Defense Federal Acquisition Regulation (DFAR). The FAR also contains guidelines and
regulations for managing a contract after award, including conditions under which contracts may be terminated, in whole or in part,
at the government’s convenience or for default. If a contract is terminated for the convenience of the government,
a contractor is entitled to receive payments for its allowable costs and, in general, the proportionate share of fees or earnings
for the work done. If a contract is terminated for default, the government generally pays for only the work it has accepted.
These regulations also subject the Company to financial audits and other reviews by the government of its costs, performance, accounting
and general business practices relating to its contracts, which may result in adjustment of the Company’s contract-related
costs and fees.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)12 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]
Schedule of Estimated useful lives of depreciable assetsBuildings and improvements 10 – 40 years
Machinery and equipment 3 – 20 years
Furniture and fixtures 7 – 10 years

Investment Securities (Tables)

Investment Securities (Tables)12 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
2017
Certificates of deposit $ 8,557,000 $ — $ — $ 8,557,000
Municipal bonds 871,872 258 (2,162 ) 869,968
2017 Total investment securities $ 9,428,872 $ 258 $ (2,162 ) $ 9,426,968
2016
Certificates of deposit $ 4,871,000 $ — $ — $ 4,871,000
Municipal bonds 707,593 1,466 — 709,059
2016 Total investment securities $ 5,578,593 $ 1,466 $ — $ 5,580,059
Schedule of contractual maturities of available-for-sale securities Years to Maturity
Less than One to
One Year Five Years Total
2017
Available-for-sale $ 8,829,542 $ 597,426 $ 9,426,968
2016
Available-for-sale $ 4,811,511 $ 768,548 $ 5,580,059

Contracts in Process (Tables)

Contracts in Process (Tables)12 Months Ended
Jun. 30, 2017
Contractors [Abstract]
Schedule of contracts in process2017 2016
Gross contract value $ 43,140,921 $ 39,061,415
Costs related to contracts in process, net of progress payments
of $1,366,504 and $18,313 at June 30, 2017 and 2016 $ 7,863,538 $ 8,810,145

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)12 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Summary of the original cost of property, plant and equipment2017 2016
Land $ 45,000 $ 45,000
Building and improvements 4,304,366 4,259,266
Machinery and equipment 9,028,835 8,735,432
Furniture and fixtures 170,120 159,951
13,548,321 13,199,649
Accumulated depreciation (11,283,225 ) (10,851,124 )
Property, plant and equipment, net $ 2,265,096 $ 2,348,525

Provision for Income Taxes (Tab

Provision for Income Taxes (Tables)12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]
Schedule of components of the provision for income taxes2017 2016
Current tax expense - federal $ 559,171 $ 1,230,367
Current tax expense (benefit) - state 2,986 (1,396 )
Deferred tax (benefit) expense (46,488 ) 57,735
Provision for income taxes $ 515,669 $ 1,286,706
Schedule of effective income tax rates2017 2016
U.S. federal statutory income tax rate 34.0 % 34.0 %
Increase (reduction) in rate resulting from:
State franchise tax, net of federal income tax benefit 0.1 —
ESOP cost versus Fair Market Value 3.6 1.5
Dividend on allocated ESOP shares (7.2 ) (3.2 )
Qualified production activities (2.8 ) (2.7 )
Stock-based
compensation 1.8 (0.2 )
Other 1.7 (0.6 )
Effective tax rate 31.2 % 28.8 %
Schedule of deferred tax assets and liabilities2017 2016
Deferred tax assets:
Accrued expenses $ 195,915 $ 151,210
ESOP 73,696 90,072
Stock-based compensation 81,659 74,287
Inventory - effect of uniform capitalization 36,935 27,266
Unrealized loss (gain) on investment securities 666 (513 )
Other 2,384 308
Total deferred tax assets $ 391,255 $ 342,630
Deferred tax liability:
Property, plant and equipment - principally due
to differences in depreciation methods $ 294,267 $ 293,309
Total deferred tax liability 294,267 293,309
Net deferred tax asset $ 96,988 $ 49,321

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)12 Months Ended
Jun. 30, 2017
Employee Stock Ownership Plan [Abstract]
Schedule of ESOP shares2017 2016
Allocated shares 456,099 441,095
Unreleased shares 45,000 61,667
Total shares held by the ESOP 501,099 502,762
Fair value of unreleased shares $ 1,008,900 $ 1,603,959

Stock Based Compensation (Table

Stock Based Compensation (Tables)12 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of weighted average assumptions for option awards2017 2016
Dividend yield 3.85% 3.99%
Expected stock price volatility 29.70% 27.80%
Risk-free interest rate 1.84% 1.20%
Expected option life (in years) 4.6 yrs 4.2 yrs
Weighted average fair value per share
of options granted during the period $ 4.640 $ 3.866
Schedule of stock option activityEmployee Stock Options Plan
Weighted
Number of Weighted Average
Shares Average Remaining Aggregate
Subject Exercise Contractual Intrinsic
to Option Price Term Value
Balance at July 1, 2016 170,450 $ 23.84 5.73
Granted 41,150 $ 26.25 9.43
Exercised (8,300 ) $ 18.18 —
Forfeited or expired (5,500 ) $ 24.11 —
Outstanding at June 30, 2017 197,800 $ 24.57 5.86 $ 124,384
Vested or expected to vest at June 30, 2017 191,230 $ 24.52 5.74 $ 124,384
Exercisable at June 30, 2017 154,900 $ 24.13 4.89 $ 124,384
Schedule of changes in non-vested stock optionsWeighted
Number of Average
Shares Grant Date
Subject Fair Value
to Option (per Option)
Non-Vested at July 1, 2016 45,800 $ 4.564
Granted 41,150 4.640
Vested (41,050 ) 4.609
Forfeited or expired (3,000 ) 4.681
Non-Vested at June 30, 2017 42,900 $ 4.586

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)12 Months Ended
Jun. 30, 2017
Equity [Abstract]
Schedule of reserved common shares for future issuanceStock options outstanding 197,800
Stock options available for issuance 156,550
Number of common shares reserved 354,350
Schedule of reconciliation of the numerators and denominators of basic and diluted per share computations2017 2016
Numerator:
Net income $ 1,135,736 $ 3,175,801
Denominator:
Basic EPS:
Common shares outstanding, beginning of period 2,364,684 2,362,687
Unearned ESOP shares (61,667 ) (79,167 )
Weighted average common shares issued during the period 4,465 5,975
Weighted average common shares purchased during the period (879 ) (10,395 )
Weighted average ESOP shares earned during the period 6,267 6,586
Denominator for basic earnings per common shares –
Weighted average common shares 2,312,870 2,285,686
Diluted EPS:
Common shares outstanding, beginning of period 2,364,684 2,362,687
Unearned ESOP shares (61,667 ) (79,167 )
Weighted average common shares issued during the period 4,465 5,975
Weighted average common shares purchased during the period (879 ) (10,395 )
Weighted average ESOP shares earned during the period 6,267 6,586
Weighted average dilutive effect of stock options 11,968 16,348
Denominator for diluted earnings per common shares –
Weighted average common shares 2,324,838 2,302,034

Quarterly Financial Informati34

Quarterly Financial Information (Unaudited) (Tables)12 Months Ended
Jun. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial informationFirst Second Third Fourth
2017 Quarter Quarter Quarter Quarter
Net sales $ 6,068,684 $ 5,667,624 $ 5,324,104 $ 5,460,600
Gross profit 1,343,748 1,080,145 1,128,505 1,162,170
Net income 420,825 244,079 279,173 191,659
Net income per share -
Basic 0.18 0.11 0.12 0.08
Diluted 0.18 0.11 0.12 0.08
2016
Net sales $ 6,279,436 $ 7,242,020 $ 7,217,922 $ 6,731,987
Gross profit 1,968,320 1,588,043 2,148,223 1,667,096
Net income 878,530 614,427 972,468 710,376
Net income per share -
Basic 0.38 0.27 0.43 0.31
Diluted 0.38 0.27 0.43 0.30

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Allowance for doubtful accounts $ 3,000 $ 3,000
Adjustments for New Accounting Principle, Early Adoption [Member] | Other Current Assets [Member]
Effect of early adoption of new accounting standard, amount317,559
Adjustments for New Accounting Principle, Early Adoption [Member] | Other Noncurrent Liabilities [Member]
Effect of early adoption of new accounting standard, amount220,571
Adjustments for New Accounting Principle, Early Adoption [Member] | Other Noncurrent Assets [Member]
Effect of early adoption of new accounting standard, amount $ 96,988
Buildings and improvements [Member] | Lower Range [Member]
Estimated useful lives of depreciated assets10 years
Buildings and improvements [Member] | Upper Range [Member]
Estimated useful lives of depreciated assets40 years
Machinery and equipment [Member] | Lower Range [Member]
Estimated useful lives of depreciated assets3 years
Machinery and equipment [Member] | Upper Range [Member]
Estimated useful lives of depreciated assets20 years
Furniture and fixtures [Member] | Lower Range [Member]
Estimated useful lives of depreciated assets7 years
Furniture and fixtures [Member] | Upper Range [Member]
Estimated useful lives of depreciated assets10 years

Investment Securities (Schedule

Investment Securities (Schedule of Investment Securities) (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Amortized Cost $ 9,428,872 $ 5,578,593
Gross Unrealized Gains258 1,466
Gross Unrealized Losses(2,162)
Fair Value9,426,968 5,580,059
Certificates of deposit [Member]
Amortized Cost8,557,000 4,871,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value8,557,000 4,871,000
Municipal bonds [Member]
Amortized Cost871,872 707,593
Gross Unrealized Gains258 1,466
Gross Unrealized Losses(2,162)
Fair Value $ 869,968 $ 709,059

Investment Securities (Schedu37

Investment Securities (Schedule of Contractual Maturities of Available-For-Sale Securities) (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Years to maturity of Available-for-sale securities:
Less than One Year $ 8,829,542 $ 4,811,511
One to Five Years597,426 768,548
Total $ 9,426,968 $ 5,580,059

Contracts in Process (Narrative

Contracts in Process (Narrative) (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Contractors [Abstract]
Progress payments $ 1,366,504 $ 18,313
Costs relating to contracts that may not be completed within the next year $ 1,635,661 $ 3,944,035

Contracts in Process (Schedule

Contracts in Process (Schedule of Contracts in Process) (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Contractors [Abstract]
Gross contract value $ 43,140,921 $ 39,061,415
Costs related to contracts in process, net of progress payments of $1,366,504 and $18,313 at June 30, 2017 and 2016 $ 7,863,538 $ 8,810,145

Property, Plant and Equipment40

Property, Plant and Equipment (Narrative) (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation $ 435,557 $ 434,401

Property, Plant and Equipment41

Property, Plant and Equipment (Summary of Original Cost of Property, Plant and Equipment) (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Property, plant and equipment, gross $ 13,548,321 $ 13,199,649
Accumulated depreciation(11,283,225)(10,851,124)
Property, plant and equipment, net2,265,096 2,348,525
Land [Member]
Property, plant and equipment, gross45,000 45,000
Buildings and improvements [Member]
Property, plant and equipment, gross4,304,366 4,259,266
Machinery and equipment [Member]
Property, plant and equipment, gross9,028,835 8,735,432
Furniture and fixtures [Member]
Property, plant and equipment, gross $ 170,120 $ 159,951

Pension Expense (Details)

Pension Expense (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Retirement Benefits [Abstract]
Defined benefit contributions and expenses $ 89,023 $ 97,336
Increase in contribution, hourly rate0.04
Employer matching contibutions of 401(k) plan (percentage)10.00%10.00%
Employer matching contributions to 401(k) plan $ 49,247 $ 47,175

Provision for Income Taxes (Sch

Provision for Income Taxes (Schedule of Components of Provision for Income Taxes) (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Components of the provision for income taxes
Current tax expense - federal $ 559,171 $ 1,230,367
Current tax (benefit) - state2,986 (1,396)
Deferred tax expense (benefit)(46,488)57,735
Provision for income taxes $ 515,669 $ 1,286,706

Provision for Income Taxes (S44

Provision for Income Taxes (Schedule of Effective Income Tax Rates) (Details)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Income tax rate reconciliation
U.S. federal statutory income tax rate34.00%34.00%
Increase (reduction) in rate resulting from:
State franchise tax, net of federal income tax benefit0.10%
ESOP cost versus Fair Market Value3.60%1.50%
Dividend on allocated ESOP shares(7.20%)(3.20%)
Qualified production activities(2.80%)(2.70%)
Stock-based compensation1.80%(0.20%)
Other1.70%(0.60%)
Effective tax rate31.20%28.80%

Provision for Income Taxes (S45

Provision for Income Taxes (Schedule of Deferred Tax Assets And Liabilities) (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Deferred tax assets:
Accrued expenses $ 195,915 $ 151,210
ESOP73,696 90,072
Stock-based compensation81,659 74,287
Inventory - effect on uniform capitalization36,935 27,266
Unrealized loss (gain) on investment securities666 (513)
Other2,384 308
Total deferred tax assets391,255 342,630
Deferred tax liability:
Property, plant and equipment - principally due to differences in depreciation methods294,267 293,309
Total deferred tax liability294,267 293,309
Net deferred tax asset96,988 49,321
Deferred tax expense (benefit) $ (46,488) $ 57,735

Significant Customers (Details)

Significant Customers (Details) - USD ($)3 Months Ended12 Months Ended
Jun. 30, 2017Mar. 31, 2017Dec. 31, 2016Sep. 30, 2016Jun. 30, 2016Mar. 31, 2016Dec. 31, 2015Sep. 30, 2015Jun. 30, 2017Jun. 30, 2016
Sales $ 5,460,600 $ 5,324,104 $ 5,667,624 $ 6,068,684 $ 6,731,987 $ 7,217,922 $ 7,242,020 $ 6,279,436 $ 22,521,012 $ 27,471,365
Sales Revenue [Member] | Domestic U.S. Customers [Member]
Concentration Risk percentage45.00%49.00%
Number of customers2 2
Sales Revenue [Member] | Foreign Customers [Member]
Sales $ 1,730,000 $ 2,125,000

Stock Rights Plan (Details)

Stock Rights Plan (Details)12 Months Ended
Jun. 30, 2017$ / sharesshares
Stock Rights Plan [Abstract]
Expiration date of the planDec. 31,
2019
Number of rights distributed as a dividend, per share of common stock1
Date purchased rights distributedApr. 14,
1989
Number of shares that can be purchased by exercising each stock right0.50
Exercise price (per share) | $ / shares $ 25
Beneficial ownership percentage that causes rights to be exercisable15.00%
Percentage sale of assets or earning power to another person where rights become exercisable50.00%

Employee Stock Ownership Plan48

Employee Stock Ownership Plan (Narrative) (Details)12 Months Ended
Jun. 30, 2017USD ($)hsharesJun. 30, 2016USD ($)shares
ESOP compensation expense $ 417,419 $ 443,668
Value of shares repurchased $ 44,335 $ 355,418
Employee Stock Ownership Plan [Member]
Number of hours worked per year to quality for the plan | h1,000
Shares repurchased | shares1,663 14,303
Value of shares repurchased $ 44,335 $ 355,418

Employee Stock Ownership Plan49

Employee Stock Ownership Plan (Schedule of ESOP Shares) (Details) - Employee Stock Ownership Plan [Member] - USD ($)Jun. 30, 2017Jun. 30, 2016
ESOP share allocation
Allocated shares456,099 441,095
Unreleased shares45,000 61,667
Total shares held by the ESOP501,099 502,762
Fair value of unreleased shares $ 1,008,900 $ 1,603,959

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($)1 Months Ended12 Months Ended
Nov. 30, 2007Jun. 30, 2017Jun. 30, 2016
Stock based compensation expense $ 129,167 $ 97,045
Deferred tax benefit related to stock based compensation11,606 $ 7,971
Unrecognized compensation costs $ 117,827
Period in which compensation cost will be recognized1 year 6 months
Deferred tax benefit related to unrecognized compensation costs $ 10,728
Options granted41,150
Options outstanding197,800 170,450
Dividends paid per share $ 1 $ 1
Aggregate intrinsic value of options exercised $ 20,769 $ 40,981
2007 Plan [Member] | Stock Options [Member]
Authorized shares under plan400,000
Vesting period2 years
Contractual life10 years
Options granted278,300
Options outstanding197,800

Stock-based Compensation (Sched

Stock-based Compensation (Schedule of Weighted Average Assumptions for Option Awards) (Details) - $ / shares12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Weighted average assumptions to calculation option fair value
Dividend yield3.85%3.99%
Expected stock price volatility29.70%27.80%
Risk-free interest rate1.84%1.20%
Expected option life (in years)4 years 7 months 6 days4 years 2 months 12 days
Weighted average fair value per share of options granted during the period $ 4.640 $ 3.866

Stock-based Compensation (Sch52

Stock-based Compensation (Schedule of Stock Option Activity) (Details) - USD ($)12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Number of Shares Subject to Option
Balance, beginning170,450
Granted41,150
Exercised(8,300)(16,300)
Forfeited or expired(5,500)
Outstanding, ending197,800 170,450
Vested or expected to vest, end of period191,230
Exercisable, end of period154,900
Weight Average Exercise Price
Balance, beginning $ 23.84
Granted26.25
Exercised18.18
Forfeited or expired24.11
Outstanding, ending24.57 $ 23.84
Vested or expected to vest, end of period24.52
Exercisable, end of period $ 24.13
Weighted Average Remaining Contractual Term
Outstanding5 years 10 months 10 days5 years 8 months 23 days
Granted9 years 5 months 5 days
Vested or expected to vest, end of period5 years 8 months 26 days
Exercisable, end of period4 years 10 months 21 days
Aggregate Intrinsic Value
Outstanding end of period $ 124,384
Vested or expected to vest, end of period124,384
Exercisable, end of period $ 124,384

Stock-based Compensation (Sch53

Stock-based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details)12 Months Ended
Jun. 30, 2017$ / sharesshares
Weighted Average Number of Shares Subject to Option
Non-vested, beginning balance | shares45,800
Granted | shares41,150
Vested | shares(41,050)
Forfeited or expired | shares(3,000)
Non-vested, ending balance | shares42,900
Average Grant Date Fair Value
Balance, beginning | $ / shares $ 4.564
Granted | $ / shares4.640
Vested | $ / shares4.609
Forfeited or expired | $ / shares4.681
Outstanding, ending | $ / shares $ 4.586

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - Accounts receivable [Member] - Customers12 Months Ended
Jun. 30, 2017Jun. 30, 2016
Concentration Risk percentage41.00%40.00%
Number of customers2 2

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)Jun. 30, 2017Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingent liability on outstanding letters of credit $ 0 $ 0

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - $ / shares3 Months Ended12 Months Ended
Sep. 30, 2017Jun. 30, 2017Jun. 30, 2016
Dividends Payable [Line Items]
Cash dividends on common stock (in dollars per share) $ 1 $ 1
Anti-dilutive options excluded from calculation of EPS151,800 113,250
Forecast [Member]
Dividends Payable [Line Items]
Dividend payable, amount per share $ 0.25
Dividend payable, date to be paid2017-09
Dividend payable, date of recordSep. 25,
2017

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Reserved Common Shares for Future Issuance) (Details) - sharesJun. 30, 2017Jun. 30, 2016
Shares reserved for future issuance
Stock options outstanding197,800 170,450
Stock options available for issuance156,550
Number of common shares reserved354,350

Stockholders' Equity (Schedul58

Stockholders' Equity (Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Per Share Computations) (Details) - USD ($)3 Months Ended12 Months Ended
Jun. 30, 2017Mar. 31, 2017Dec. 31, 2016Sep. 30, 2016Jun. 30, 2016Mar. 31, 2016Dec. 31, 2015Sep. 30, 2015Jun. 30, 2017Jun. 30, 2016
Numerator:
Net Income $ 191,659 $ 279,173 $ 244,079 $ 420,825 $ 710,376 $ 972,468 $ 614,427 $ 878,530 $ 1,135,736 $ 3,175,801
Basic EPS:
Balance, beginning, shares2,364,684 2,362,687 2,364,684 2,362,687
Unearned ESOP shares(61,667)(79,167)
Weighted average common shares issued during the period4,465 5,975
Weighted average common shares purchased during the period(879)(10,395)
Weighted average ESOP shares earned during the period6,267 6,586
Denominator for basic earnings per common shares - Weighted average common shares2,312,870 2,285,686
Diluted EPS:
Weighted average dilutive effect of stock options11,968 16,348
Denominator for diluted earnings per common shares - Weighted average common shares2,324,838 2,302,034

Line of Credit (Details)

Line of Credit (Details)12 Months Ended
Jun. 30, 2017USD ($)
Maximum amount of Line of Credit $ 3,000,000
LIBOR [Member]
Spread on variable interest rate2.00%

Quarterly Financial Informati60

Quarterly Financial Information (Unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($)3 Months Ended12 Months Ended
Jun. 30, 2017Mar. 31, 2017Dec. 31, 2016Sep. 30, 2016Jun. 30, 2016Mar. 31, 2016Dec. 31, 2015Sep. 30, 2015Jun. 30, 2017Jun. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Net sales $ 5,460,600 $ 5,324,104 $ 5,667,624 $ 6,068,684 $ 6,731,987 $ 7,217,922 $ 7,242,020 $ 6,279,436 $ 22,521,012 $ 27,471,365
Gross profit1,162,170 1,128,505 1,080,145 1,343,748 1,667,096 2,148,223 1,588,043 1,968,320 4,714,568 7,371,682
Net income $ 191,659 $ 279,173 $ 244,079 $ 420,825 $ 710,376 $ 972,468 $ 614,427 $ 878,530 $ 1,135,736 $ 3,175,801
Net income per share:
Basic $ 0.08 $ 0.12 $ 0.11 $ 0.18 $ 0.31 $ 0.43 $ 0.27 $ 0.38 $ 0.49 $ 1.39
Diluted $ 0.08 $ 0.12 $ 0.11 $ 0.18 $ 0.30 $ 0.43 $ 0.27 $ 0.38 $ 0.49 $ 1.38