Annual report [Section 13 and 15(d), not S-K Item 405]

FIXED AND INTANGIBLE ASSETS, NET

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FIXED AND INTANGIBLE ASSETS, NET
 12 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
FIXED AND INTANGIBLE ASSETS, NET

NOTE 5 – FIXED AND INTANGIBLE ASSETS, NET

 

Fixed assets, net, consist of the following:

 

       
  June 30,  
  2026     2025  
Machinery and equipment   $ 1,611,000     $ 1,534,000  
Office equipment     457,000       447,000  
Furniture and equipment     274,000       274,000  
Leasehold improvements     168,000       149,000  
Construction in process     -       4,000  
Property, plant and equipment     2,510,000       2,408,000  
Less: accumulated depreciation     (2,034,000 )     (1,700,000 )
Total fixed assets, net   $ 476,000     $ 708,000  

 

Depreciation expense on property, plant and equipment was approximately $334,000 and $359,000 for the fiscal years ended June 30, 2026 and 2025, respectively, and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Depreciation expense is computed on a straight-line basis with useful lives between three and five years. Leasehold improvements are amortized over the expected term of the lease.

 

 

Intangible Assets, net, consist of the following:

 

  2026     2025  
  June 30,  
  2026     2025  
Software   $ 3,222,000     $ 2,815,000  
Less: accumulated amortization     (2,459,000 )     (1,969,000 )
Total intangible assets, net   $ 763,000     $ 846,000  

 

Software consisting primarily of internally developed software for resale is amortized over three years. Software amortization expense is approximately $490,000 and $490,000 for the fiscal years ended June 30, 2026 and 2025, respectively.