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<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.75in">Note 1.</td>
<td style="text-align: justify">Basis of Presentation</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">In the opinion of management the accompanying
unaudited financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation
of the results for such periods. The results for any interim period are not necessarily indicative of the results to be expected
for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with United States generally accepted accounting principles have been condensed or omitted. The preparation of these financial
statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses,
and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those
related to revenue recognition, inventories, income taxes, and stock-based compensation. Management bases its estimates on historical
experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or conditions. These financial statements should be
read in conjunction with the Company's most recent audited financial statements included in its report on Form 10-K for the year
ended June 30, 2016. Certain reclassifications may have been made to the prior year financial statements to conform to the current
year presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt; text-align: justify; text-indent: -0.5in">Note 2.	Investment
Securities and Fair Value of Financial Investments</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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:</p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top">
<td style="width: 22.5pt"></td><td style="width: 13.5pt"><font style="font-family: Wingdings">§</font></td><td style="text-align: justify">Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that
the entity has the ability to access as of the measurement date.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top">
<td style="width: 22.5pt"></td><td style="width: 13.5pt"><font style="font-family: Wingdings">§</font></td><td style="text-align: justify">Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top">
<td style="width: 22.3pt"></td><td style="width: 13.7pt"><font style="font-family: Wingdings">§</font></td><td style="text-align: justify">Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions
about the assumptions that market participants would use in pricing an asset or liability.</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The carrying amounts of financial instruments,
including cash and cash equivalents, short term investment securities, accounts receivable, accounts payable and accrued expenses,
approximated fair value as of December 31, 2016 and June 30, 2016 because of the immediate or short-term maturity of these financial
instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Investment securities at December 31,
2016 and June 30, 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 December 31, 2016 and June 30, 2016 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Gross</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Gross</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Amortized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Unrealized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Unrealized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Fair</td><td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Cost</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Gains</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Losses</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Value</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-decoration: underline">December 31, 2016</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="width: 52%; padding-bottom: 1pt">Certificates of deposit</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">8,889,000</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">—</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">—</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">8,889,000</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Municipal bonds</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">77,508</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(467</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left">)</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">77,041</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Total investment securities</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">8,966,508</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">(467</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left">)</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">8,966,041</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-decoration: underline">June 30, 2016</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="padding-bottom: 1pt">Certificates of deposit</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4,871,000</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4,871,000</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Municipal bonds</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">707,593</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">1,466</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">709,059</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Total investment securities</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">5,578,593</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,466</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">5,580,059</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The portfolio is diversified and highly
liquid and primarily consists of investment grade fixed income instruments. At December 31, 2016, the Company did not have any
investments in individual securities that have been in a continuous loss position considered to be other than temporary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">As of December 31, 2016 and June 30,
2016, the contractual maturities of available-for-sale securities were as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="text-align: right; border-bottom: Black 1pt solid">Years to Maturity</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right">Less than</td><td> </td><td> </td>
<td colspan="2" style="text-align: right">One to</td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">One Year</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">Five Years</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline">December 31, 2016</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 64%; padding-bottom: 1pt">Available-for-sale</td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">8,644,000</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">322,041</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">8,966,041</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline">June 30, 2016</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Available-for-sale</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">4,811,511</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">768,548</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">5,580,059</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif; margin-top: 6pt"><tr style="vertical-align: top"><td style="text-align: justify; width: 0.75in">Note 3.</td>
<td style="text-align: justify">Net Income per Share</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Basic net income per share excludes dilution
and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding
for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared
in the income of the Company. The computation of weighted-average common shares outstanding, assuming dilution, excluded options
to purchase 107,700 and 68,550 shares of our common stock for the three and six months ended December 31, 2016 and 2015, respectively,
as the effect of including them would be anti-dilutive. As Unearned ESOP shares are released or committed-to-be-released the shares
become outstanding for earnings-per-share computations.</p>
<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: top"><td style="width: 0.75in">Note 4.</td>
<td>Stock Based Compensation</td></tr>
</table>
<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><font style="font-weight: normal; font-style: normal">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. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Total stock-based compensation expense
recognized in the statements of comprehensive income for the three-month periods ended December 31, 2016 and 2015 was $29,715 and
$21,783, respectively, before income taxes. The related total deferred tax benefits were approximately $2,359 and $1,765 for the
same periods. Total stock-based compensation expense recognized in the statements of comprehensive income for the six-month periods
ended December 31, 2016 and 2015, was $53,048 and $52,249, respectively. The related total deferred tax benefit was approximately
$4,124 and $4,441 for the same periods. 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">As of December 31, 2016, there was approximately
$193,945 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the
next 2 years. The total deferred tax benefit related to these awards is approximately $16,896.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The Company has one employee stock option
plan under which options may be granted, the 2007 Stock Option and Restricted Stock Plan (the "2007 Plan"). The Board
of Directors may 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 and supersedes the Company's 2000 Stock Option Plan (the "2000 Plan"). Options covering
400,000 shares are authorized for issuance under the 2007 Plan, of which 278,300 have been granted and 200,900 are outstanding
as of December 31, 2016. While no further grants of options may be made under the 2000 Plan, as of December 31, 2016, 2,200 options
remain outstanding, vested and exercisable from the 2000 Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The table below outlines the weighted
average assumptions that the Company used to calculate the fair value of the option award for the six months ended December 31,
2016 and 2015, respectively.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2016</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2015</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 76%; text-align: justify">Dividend yield</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">3.85%</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">3.72%</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">Expected stock price volatility</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">29.70%</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">28.06%</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify">Risk-free interest rate</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">1.84%</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">1.60%</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">Expected option life (in years)</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">4.6 yrs</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">4.1 yrs</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify">Weighted average fair value per share</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.640</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.431</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">  of options granted during the period</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The Company declares dividends quarterly
and paid cash dividends totaling $0.50 for the six months ended December 31, 2016 and 2015. 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. 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The following table summarizes stock
option activity during the six months ended December 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="15" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Employee Stock Options Plan</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Number of</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Shares</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Remaining</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Aggregate</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Subject</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Exercise</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Contractual</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Intrinsic</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">To Options</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Price</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Term</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 64%">Balance at July 1, 2016</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">170,450</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 6%; text-align: right">23.84</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">5.73</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right"> </td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap">Granted</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">41,150</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">26.25</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">9.93</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap">Exercised</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">(7,500</td><td nowrap="nowrap" style="text-align: left">)</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">18.17</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(1,000</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">)</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">26.09</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Outstanding at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">203,100</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">24.53</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">6.32</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">353,212</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Vested or expected to vest at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">190,360</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">24.42</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">6.13</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">352,610</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Exercisable at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">117,150</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">23.31</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">4.25</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">353,212</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><font style="text-underline-style: double"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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 December 31, 2016 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 December 31, 2016. 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 six months ended December 31, 2016 and 2015 were $15,189 and $6,512, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">The following table summarizes changes in non-vested stock
options during the three months ended December 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted Number</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average Grant</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">of Shares</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Date Fair</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Subject to Option</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Value (per Option)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 82%">Non-vested at July 1, 2016</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">45,800</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 6%; text-align: right">4.564</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap">Granted</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">41,150</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.640</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap">Vested</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(1,000</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">)</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">4.710</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Non-vested at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">85,950</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">4.599</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: top"><td style="width: 0.75in">Note 5.</td>
<td>Commitments and Contingencies</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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 December 31, 2016 and
2015. 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.</p>
<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: top"><td style="text-align: justify; width: 0.75in">Note 6.</td>
<td style="text-align: justify">Recently Issued Accounting Standards</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">In May 2014, the FASB issued ASU No.
2014-09, “Revenue from Contracts with Customers,<i>” </i>which supersedes nearly all existing revenue recognition guidance
under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred
to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.
ASU No. 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be
required within the revenue recognition process than are required under existing U.S. GAAP.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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
2019 beginning July 1, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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 noncurrent in a classified balance sheet. The current requirement that
deferred tax assets and liabilities of a taxpaying 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 December 31, 2016; a decrease
in current assets of $217,764, a decrease in noncurrent liabilities of $202,248 and an increase in noncurrent assets of $15,516.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">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. The Company is evaluating the impact that ASU No. 2016-09 will have on the
Company's financial statements.</p>
<table cellpadding="0" cellspacing="0" border="0" style="width: 100%; margin-bottom: 6pt; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: top"><td style="text-align: justify; width: 0.75in">Note 7.</td>
<td style="text-align: justify">Employee Stock Ownership Plan</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0in">The Company sponsors
a leveraged employee stock ownership plan (the "ESOP") that covers all non-union 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 $108,167 and $111,081 for the three-month periods ended December 31, 2016 and 2015, respectively.
ESOP compensation expense was $216,876 and $224,175 for the six-month periods ended December 31, 2016 and 2015, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0in">The ESOP shares as
of December 31, 2016 and 2015 were as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2016</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2015</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 76%; text-align: justify; text-indent: 0in">     Allocated shares</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">439,432</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">423,568</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">     Committed-to-be-released shares</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">8,333</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">8,750</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify; padding-bottom: 1pt">     Unreleased shares</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">53,334</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">70,417</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify; padding-bottom: 2.5pt">     Total shares held by the ESOP</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">501,099</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">502,735</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">     Fair value of unreleased shares</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,389,884</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,813,238</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">During the three and six months ended
December 31, 2016 the Company repurchased 1,663 shares previously held in the ESOP for $44,335. During the three and six months
ended December 31, 2015 the company repurchased 14,303 shares previously held in the ESOP for $355,418.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale
securities by major security type at December 31, 2016 and June 30, 2016 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Gross</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Gross</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Amortized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Unrealized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Unrealized</td><td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right">Fair</td><td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Cost</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Gains</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Losses</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">Value</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-decoration: underline">December 31, 2016</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="width: 52%; padding-bottom: 1pt">Certificates of deposit</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">8,889,000</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">—</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">—</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 9%; text-align: right">8,889,000</td><td nowrap="nowrap" style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Municipal bonds</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">77,508</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(467</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left">)</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">77,041</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Total investment securities</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">8,966,508</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">(467</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left">)</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">8,966,041</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-decoration: underline">June 30, 2016</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="padding-bottom: 1pt">Certificates of deposit</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4,871,000</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4,871,000</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Municipal bonds</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">707,593</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">1,466</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">709,059</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Total investment securities</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">5,578,593</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,466</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">—</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">5,580,059</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">As of December 31, 2016 and June 30,
2016, the contractual maturities of available-for-sale securities were as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="text-align: right; border-bottom: Black 1pt solid">Years to Maturity</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right">Less than</td><td> </td><td> </td>
<td colspan="2" style="text-align: right">One to</td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">One Year</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">Five Years</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline">December 31, 2016</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 64%; padding-bottom: 1pt">Available-for-sale</td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">8,644,000</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">322,041</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</td><td style="width: 9%; text-align: right; border-bottom: Black 1pt solid">8,966,041</td><td style="width: 1%; text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline">June 30, 2016</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Available-for-sale</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">4,811,511</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">768,548</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid">$</td><td style="text-align: right; border-bottom: Black 1pt solid">5,580,059</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">The following table summarizes changes in non-vested stock
options during the three months ended December 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted Number</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average Grant</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">of Shares</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Date Fair</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Subject to Option</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Value (per Option)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 82%">Non-vested at July 1, 2016</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">45,800</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 6%; text-align: right">4.564</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap">Granted</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">41,150</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.640</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap">Vested</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(1,000</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">)</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">4.710</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Non-vested at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">85,950</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">4.599</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0in">The ESOP shares as
of December 31, 2016 and 2015 were as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2016</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2015</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 76%; text-align: justify; text-indent: 0in">     Allocated shares</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">439,432</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">423,568</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">     Committed-to-be-released shares</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">8,333</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">8,750</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify; padding-bottom: 1pt">     Unreleased shares</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">53,334</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">70,417</td><td nowrap="nowrap" style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify; padding-bottom: 2.5pt">     Total shares held by the ESOP</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">501,099</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">502,735</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">     Fair value of unreleased shares</td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,389,884</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td><td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">1,813,238</td><td nowrap="nowrap" style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
4124
4441
1765
2359
4.640
400000
44335
355418
0.0385
0.0372
0.2970
0.2806
0.0184
0.0160
P4Y7M6D
P4Y1M6D
4.640
4.431
P9Y11M5D
0.33
0.33
1000
1663
1663
14303
14303
44335
44335
355418
355418
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The table below outlines the weighted
average assumptions that the Company used to calculate the fair value of the option award for the six months ended December 31,
2016 and 2015, respectively.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2016</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td colspan="2" nowrap="nowrap" style="text-align: right; border-bottom: Black 1pt solid">December 31, 2015</td><td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 76%; text-align: justify">Dividend yield</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">3.85%</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 9%; text-align: right">3.72%</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">Expected stock price volatility</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">29.70%</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">28.06%</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify">Risk-free interest rate</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">1.84%</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">1.60%</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">Expected option life (in years)</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">4.6 yrs</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">4.1 yrs</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="text-align: justify">Weighted average fair value per share</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.640</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">4.431</td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: justify">  of options granted during the period</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The following table summarizes stock
option activity during the six months ended December 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="text-align: justify"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="15" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Employee Stock Options Plan</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Number of</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Weighted</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Shares</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Average</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Remaining</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Aggregate</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Subject</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Exercise</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Contractual</td><td nowrap="nowrap"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center">Intrinsic</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">To Options</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Price</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Term</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td colspan="3" nowrap="nowrap" style="text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="width: 64%">Balance at July 1, 2016</td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">170,450</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left">$</td><td nowrap="nowrap" style="width: 6%; text-align: right">23.84</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right">5.73</td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 1%"> </td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td><td nowrap="nowrap" style="width: 6%; text-align: right"> </td><td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap">Granted</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">41,150</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">26.25</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">9.93</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap">Exercised</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">(7,500</td><td nowrap="nowrap" style="text-align: left">)</td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left">$</td><td nowrap="nowrap" style="text-align: right">18.17</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right">—</td><td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: left"> </td><td nowrap="nowrap" style="text-align: right"> </td><td nowrap="nowrap" style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">(1,000</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">)</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">26.09</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right">—</td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid"> </td>
<td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: right"> </td><td nowrap="nowrap" style="border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Outstanding at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">203,100</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">24.53</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">6.32</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">353,212</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2.5pt">Vested or expected to vest at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">190,360</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">24.42</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">6.13</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">352,610</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="padding-bottom: 2.5pt">Exercisable at December 31, 2016</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">117,150</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">23.31</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">4.25</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left">$</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: right">353,212</td><td nowrap="nowrap" style="border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><font style="text-underline-style: double"> </font></p>