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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Note 1. Basis of Presentation</p>
<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, 2017. 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 0; text-align: justify">Note 2. Investment Securities</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 March 31, 2018 and June 30, 2017 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 March 31, 2018
and June 30, 2017 consist of certificates of deposit and government 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 March 31, 2018 and June 30, 2017 are 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> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Gross</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Gross</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Amortized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Unrealized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Unrealized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Fair</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; vertical-align: bottom">Cost</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Gains</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Losses</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Value</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-decoration: underline; padding-left: 5.4pt">March 31, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 48%; padding-left: 5.4pt">Certificates of deposit</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">10,439,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">10,439,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Municipal bonds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">968,749</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">603</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,958</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">963,394</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total investment securities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,407,749</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">603</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(5,958</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,402,394</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline; padding-left: 5.4pt">June 30, 2017</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><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-left: 5.4pt">Certificates of deposit</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">8,557,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">8,557,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Municipal bonds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">871,872</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">258</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,162</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">869,968</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total investment securities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,428,872</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">258</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,162</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,426,968</td><td 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"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The portfolio is diversified and highly
liquid and primarily consists of investment grade fixed income instruments. At March 31, 2018, 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"> </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">As of March 31, 2018 and June 30, 2017,
the remaining 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: center; 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: center"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Less than</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">One to</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </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; vertical-align: bottom">One Year</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Five Years</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">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">March 31, 2018</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: 61%; padding-bottom: 1pt">Available-for-sale</td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">10,528,099</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">874,295</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">11,402,394</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline">June 30, 2017</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Available-for-sale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">8,829,542</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">597,426</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,426,968</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Note 3. Net Income per Share</p>
<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 103,600 and 152,150 shares of our common stock for the three and nine months ended March 31, 2018 and 2017, 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>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">Note 5. Commitments and Contingencies</p>
<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 March 31, 2018 and
June 30, 2017. 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>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Investment securities at March 31, 2018
and June 30, 2017 consist of certificates of deposit and government 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 March 31, 2018 and June 30, 2017 are 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> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Gross</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Gross</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Amortized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Unrealized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Unrealized</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Fair</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; vertical-align: bottom">Cost</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Gains</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Losses</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Value</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-decoration: underline; padding-left: 5.4pt">March 31, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 48%; padding-left: 5.4pt">Certificates of deposit</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">10,439,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">10,439,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Municipal bonds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">968,749</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">603</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,958</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">963,394</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total investment securities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,407,749</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">603</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(5,958</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,402,394</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline; padding-left: 5.4pt">June 30, 2017</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><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-left: 5.4pt">Certificates of deposit</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">8,557,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">8,557,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Municipal bonds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">871,872</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">258</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,162</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">869,968</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total investment securities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,428,872</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">258</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,162</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,426,968</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">As of March 31, 2018 and June 30, 2017,
the remaining 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: center; 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: center"> </td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">Less than</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom">One to</td><td style="text-align: right; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; vertical-align: bottom"> </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; vertical-align: bottom">One Year</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">Five Years</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">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">March 31, 2018</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: 61%; padding-bottom: 1pt">Available-for-sale</td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">10,528,099</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">874,295</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">11,402,394</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-decoration: underline">June 30, 2017</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Available-for-sale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">8,829,542</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">597,426</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,426,968</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below outlines the weighted average
assumptions that the Company used to calculate the fair value of each option award for the nine months ended March 31, 2018 and
2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2018</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2017</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 74%; text-align: justify">Dividend yield</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4.60%</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">3.85%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Company’s expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23.97%</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29.70%</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Risk-free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.95%</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.84%</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Expected term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.7 yrs</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.6 yrs</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Weighted average fair value per share</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-align: justify">    of options granted during the period</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2.790</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">4.640</td><td style="text-align: left"> </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 nine months ended March 31, 2018:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"> </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 style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Number</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted Average</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">of Shares</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Grant Date Fair</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Subject to Option</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; 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 style="white-space: nowrap; width: 74%">Non-vested at July 1, 2017</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">42,900</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">$</td><td style="white-space: nowrap; width: 10%; text-align: right">4.586</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap">Granted</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">51,715</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">2.793</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap">Vested</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">(1,500</td><td style="white-space: nowrap; text-align: left">)</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">4.149</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">(3,835</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">)</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">3.731</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Non-vested at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">89,280</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">3.591</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">The ESOP shares as
of March 31, 2018 and 2017 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0in"> </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 style="white-space: nowrap"> </td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td colspan="2" style="white-space: nowrap; text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2018</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="white-space: nowrap; text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2017</td><td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; width: 74%; text-align: justify; text-indent: 0in">     Allocated shares</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">443,198</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">439,432</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify">     Committed-to-be-released shares</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">11,875</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">12,500</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">     Unreleased shares</td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">33,125</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">49,167</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; text-align: justify; padding-bottom: 2.5pt">     Total shares held by the ESOP</td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">488,198</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">501,099</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">     Fair value of unreleased shares</td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">867,875</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">1,130,841</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td></tr></table>
P2Y
24690689
5324104
17060411
5663161
18898733
4195599
13508014
4407957
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">Note 4. Stock Based Compensation</p>
<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 March 31, 2018 and 2017 was $36,205 and
$40,245, respectively, before income taxes. The related total deferred tax benefits were approximately $2,034 and $3,769 for the
same periods. Total stock-based compensation expense recognized in the statements of comprehensive income for the nine-month periods
ended March 31, 2018 and 2017, was $86,675 and $93,293, respectively, before income taxes. The related total deferred tax benefit
was approximately $4,805 and $7,893 for the same periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">As of March 31, 2018, there was approximately
$153,718 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the
next 2.00 years. The total deferred tax benefit related to these awards is expected to be approximately $8,738.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one employee stock option plan
under which options or stock awards may be granted, the 2017 Stock Options and Restricted Stock Plan (the "2017 Plan"),
approved by the Company's shareholders at the Company's Annual Meeting on December 1, 2017. The Board of Directors may grant options
to acquire shares of common stock to employees and non-employee directors of the Company at the fair market value of the common
stock on the date of grant. The maximum aggregate number of shares of Common Stock subject to options or awards to non-employee
directors is 133,000 and the maximum aggregate number of shares of Common Stock subject to options or awards granted to non-employee
directors during any single fiscal year is the lesser of 13,300 and 33 1/3% of the total number of shares subject to options or
awards granted in such fiscal year. The maximum number of shares subject to options or awards granted to any individual employee
may not exceed 15,000 in a fiscal year. 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. Options covering 400,000 shares are authorized for issuance
under the 2017 plan, of which 51,715 have been granted as of March 31, 2018. While no further grants of options may be made under
the Company’s 2007 Stock Option and Restricted Stock Plan, as of March 31, 2018, 185,400 options were outstanding under such
plan of which 145,950 are vested and exercisable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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 dividend yield, volatility, expected life and interest rates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below outlines the weighted average
assumptions that the Company used to calculate the fair value of each option award for the nine months ended March 31, 2018 and
2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2018</td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2017</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 74%; text-align: justify">Dividend yield</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4.60%</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">3.85%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Company’s expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23.97%</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29.70%</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Risk-free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.95%</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.84%</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Expected term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.7 yrs</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.6 yrs</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Weighted average fair value per share</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-align: justify">    of options granted during the period</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2.790</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">4.640</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company declares dividends quarterly and
paid cash dividends totaling $0.75 per share for the nine months ended March 31, 2018 and 2017. Our Board of Directors assesses
the Company’s dividend policy periodically. There is no assurance that the Board of Directors will maintain the amount of
the regular cash dividend. 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; text-align: justify"> </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 nine months ended March 31, 2018:</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 style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Employee Stock Options Plan</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Number of</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Average</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Shares</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Average</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Remaining</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Aggregate</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Subject</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Exercise</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Contractual</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Intrinsic</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">To Options</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Price</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Term</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; width: 48%">Balance at July 1, 2017</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">197,800</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">$</td><td style="white-space: nowrap; width: 10%; text-align: right">24.57</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">5.86</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right"> </td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap">Granted</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">51,715</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">21.76</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">9.54</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap">Exercised</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">(9,400</td><td style="white-space: nowrap; text-align: left">)</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">21.45</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">—</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">(4,885</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">)</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">24.44</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">—</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Outstanding at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">235,230</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.08</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">6.22</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">528,162</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 2.5pt">Vested or expected to vest at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">221,814</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.10</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">6.04</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">494,369</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Exercisable at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">145,950</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.31</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">4.42</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">303,756</td><td style="white-space: nowrap; 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 March 31, 2018 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 March 31, 2018. 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 nine months ended March 31, 2018 and 2017 were $23,437 and $20,769, 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 nine months ended March 31, 2018:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"> </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 style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Number</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted Average</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">of Shares</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Grant Date Fair</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Subject to Option</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; 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 style="white-space: nowrap; width: 74%">Non-vested at July 1, 2017</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">42,900</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">$</td><td style="white-space: nowrap; width: 10%; text-align: right">4.586</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap">Granted</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">51,715</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">2.793</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap">Vested</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">(1,500</td><td style="white-space: nowrap; text-align: left">)</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">4.149</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">(3,835</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">)</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">3.731</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Non-vested at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">89,280</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">3.591</td><td style="white-space: nowrap; 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"> </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 nine months ended March 31, 2018:</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 style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Employee Stock Options Plan</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Number of</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Weighted</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Average</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Shares</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Average</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Remaining</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Aggregate</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Subject</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Exercise</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Contractual</td><td style="white-space: nowrap"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center">Intrinsic</td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">To Options</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Price</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Term</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; width: 48%">Balance at July 1, 2017</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">197,800</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">$</td><td style="white-space: nowrap; width: 10%; text-align: right">24.57</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">5.86</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right"> </td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap">Granted</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">51,715</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">21.76</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">9.54</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap">Exercised</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">(9,400</td><td style="white-space: nowrap; text-align: left">)</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left">$</td><td style="white-space: nowrap; text-align: right">21.45</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">—</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 1pt">Forfeited or expired</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">(4,885</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">)</td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">24.44</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">—</td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid"> </td>
<td style="white-space: nowrap; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Outstanding at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">235,230</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.08</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">6.22</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">528,162</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: left; padding-bottom: 2.5pt">Vested or expected to vest at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">221,814</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.10</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">6.04</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">494,369</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">Exercisable at March 31, 2018</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">145,950</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">24.31</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">4.42</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">303,756</td><td style="white-space: nowrap; 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">Note 6. Recently Issued Accounting Standards</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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 continuing to evaluate the impact of our pending adoption of ASU No. 2014-09, which
we do not expect to have a material impact on the Company’s financial statements upon adoption. The company expects to use
the modified retrospective method when adopting the standard beginning July 1, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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 non-current in a classified balance sheet. The current requirement that
deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected
by this update. We adopted ASU 2015-17 during the first quarter of fiscal year 2018 on a prospective basis. Prior periods were
not retrospectively adjusted. Accordingly, for the nine-month period ended March 31, 2018 we decreased current deferred tax assets
by $268,371 and decreased noncurrent deferred tax liabilities by $189,882; the net reclassification of which increased noncurrent
deferred tax assets by $78,849. Adoption of ASU No. 2015-17 for the prior period presented would have the following impact on
the Company’s financial statements for June 30, 2017; a decrease in current assets of $317,559, a decrease in non-current
liabilities of $220,571 and an increase in non-current assets of $96,988.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; 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. We adopted ASU 2016-09 during the first quarter of fiscal year 2018 on a prospective basis. We have elected to follow
an accounting policy to estimate the number of awards that are expected to vest (consistent with ASU and prior GAAP). Adoption
of ASU No. 2016-09 did not have a material impact on the Company’s financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">In February 2018, the FASB issued ASU
No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects
from Accumulated Other Comprehensive Income”. Under current accounting guidance, the income tax effects for changes in income
tax rates and certain other transactions are recognized in income from continuing operations resulting in income tax effects recognized
in Accumulated Other Comprehensive Income that do not reflect the current tax rate of the entity (“stranded tax effects”).
The new guidance allows the Company the option to reclassify these stranded tax effects to retained earnings that relate to the
change in the federal tax rate resulting from the passage of the Tax Cuts and Jobs Act (the “Tax Act”). This update
is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted.
The Company is evaluating the impact that ASU No. 2018-02 will have on the Company's financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.75in; text-align: justify; text-indent: -0.75in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.75in; text-align: justify; text-indent: -0.75in">Note 7.
Employee Stock Ownership Plan</p>
<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 $100,464 and $103,959 for the three-month periods ended March 31, 2018 and 2017, respectively. ESOP
compensation expense was $279,502 and $320,835 for the nine-month periods ended March 31, 2018 and 2017, respectively.</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; text-align: justify; text-indent: 0in">The ESOP shares as
of March 31, 2018 and 2017 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0in"> </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 style="white-space: nowrap"> </td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td colspan="2" style="white-space: nowrap; text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2018</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: right; vertical-align: bottom"> </td>
<td colspan="2" style="white-space: nowrap; text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2017</td><td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; width: 74%; text-align: justify; text-indent: 0in">     Allocated shares</td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">443,198</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="white-space: nowrap; width: 10%; text-align: right">439,432</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify">     Committed-to-be-released shares</td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">11,875</td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right">12,500</td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">     Unreleased shares</td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">33,125</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 1pt solid; text-align: right">49,167</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; text-align: justify; padding-bottom: 2.5pt">     Total shares held by the ESOP</td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">488,198</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left"> </td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">501,099</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="white-space: nowrap; padding-bottom: 2.5pt">     Fair value of unreleased shares</td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">867,875</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="white-space: nowrap; border-bottom: Black 2.5pt double; text-align: right">1,130,841</td><td style="white-space: nowrap; 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 nine months ended
March 31, 2018 the Company repurchased 0 and 4,798 shares previously held in the ESOP for $0 and $109,694. During the three and
nine months ended March 31, 2017 the Company repurchased 0 and 1,663 shares previously held in the ESOP for $0 and $44,335.</p>
<p>The ESOP allows for eligible participants to take whole share distributions from the plan on specific dates in
accordance with the provision of the plan. Share distributions from the ESOP during the three and nine months ended March 31,
2018 totaled 0 and 8,103 shares, respectively. During the three and nine month period ended March 31, 2017 the ESOP did not
distribute any shares from the plan.</p>
0
8103