Warranty Liability

3 Months Ended

Sep. 30, 2020

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:

	Three Months Ended			Fiscal Year Ended
	September 30, 2020			June 30, 2020
Beginning warranty reserve	$	740,000		$	810,000
Accrual for products sold		54,000			79,000
Expenditures and costs incurred for warranty claims		(44,000	)		(149,000	)
Ending warranty reserve	$	750,000		$	740,000