Warranty Liability

6 Months Ended

Dec. 31, 2019

Product Warranties Disclosures [Abstract]

Warranty Liability

Note 5. Warranty Liability

The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a three-year warranty for all institutional sales and sales to individuals outside the U.S. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company’s warranty liability include the number of units shipped, historical and anticipated rates of warranty claims, the product’s useful life and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.

Changes in the Company’s warranty liability were approximately as follows:

	Six Months Ended December 31, 2019			Fiscal Year Ended June 30, 2019
Beginning warranty reserve	$	810,000		$	760,000
Accrual for products sold		28,000			201,000
Expenditures and costs incurred for warranty claims		(68,000	)		(151,000	)
Ending warranty reserve	$	770,000		$	810,000