Property, Plant and Equipment

12 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 6. Property, Plant and Equipment

Property, plant and equipment at June 30, 2023 and 2022 is as follows:

	2023			2022
Land	$	45,000		$	45,000
Building and improvements		4,811,179			4,450,399
Machinery and equipment		11,402,679			11,287,648
Furniture and fixtures		164,200			164,200
		16,423,058			15,947,247
Accumulated depreciation		(13,597,969	)		(13,149,254	)
Property, plant and equipment, net	$	2,825,089		$	2,797,993

Depreciation expense was $484,920 and $494,635 for the years ended June 30, 2023 and 2022, respectively.

The Company was awarded $7.4 million in funding during the second quarter of fiscal year 2023 in support of facility and capital equipment upgrades for testing and qualification for the United States Navy. The funding is part of the Navy’s investment to improve and sustain the Surface Combatant Industrial Base. The work will be conducted on Espey’s property in Saratoga Springs, NY, with completion slated for 2024. The Company expects to be paid within 30 days after the submission of three milestone invoices, but will not be paid for expenses incurred in excess of the specified milestone payment limits. The Company expects to have an initial cash outlay to satisfy income tax obligations arising from the value of the award. Included in building and improvements at June 30, 2023 and 2022 was $308,001 and $58,296 respectively, for facility and capital upgrades under the funding award. As of September 19, 2023, the first milestone totaling approximately $969,000 was achieved and reimbursed. The Company expects to record the receipt of milestones payments received as a reduction from the cost of the assets.