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DEFERRED COSTS AND DEFERRED REVENUE
 6 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
DEFERRED COSTS AND DEFERRED REVENUE

NOTE 7. DEFERRED COSTS AND DEFERRED REVENUE

 

As of December 31 and June 30, 2025, deferred costs totaling $561,563 and $48,971, respectively, consists of costs deferred under contracts not completed and recognized at a point in time ($51,777 and $48,971, respectively), and costs in excess of billings under contracts not completed and recognized over time ($509,786 and $0, respectively). As of December 31 and June 30, 2025, deferred revenue, totaling $242,977 and $52,576, respectively, consists of revenue deferred under contracts not completed and recognized at a point in time ($82,735 and $52,576, respectively), and billings in excess of costs under contracts not completed and recognized over time ($160,242 and $0, respectively).

 

 

The following table shows the net activity of deferred cost and deferred revenue for the six months ended December 31, 2025 and the year ended June 30, 2025:

   

  

As of and for the

six months ended

December 31, 2025

  

As of and for the

year ended

June 30, 2025

 
         
Deferred costs - beginning of period  $48,971   $170,781 
Deferred cost recognized as cost of goods sold during period   (7,087)   (170,781)
Costs in excess of billings   509,786    - 
Costs incurred and not yet recognized as cost of goods sold   9,893    48,971 
Deferred cost - end of period  $561,563   $48,971 
           
Deferred revenue - beginning of period  $52,576   $72,788 
Deferred revenue recognized as revenue during period   (52,576)   (72,788)
Billing in excess of costs   160,242    - 
Payments received and not yet recognized as revenue   82,735    52,576 
Deferred revenue - end of period  $242,977   $52,576