Note 7 - Other Liabilities

6 Months Ended

Dec. 31, 2011

Note 7 - Other Liabilities Disclosure

Note 7 - Other Liabilities

(7) Other Liabilities

Other liabilities consist of the following:

(amounts in thousands)	December 31, 2011			June 30, 2011
Deferred compensation	$	379		$	385
Supplemental retirement plan		818			759
Accrued lease		1,068			1,247
Warranty accrual		176			277
Income tax liability		261			404
Deferred grant income		375			375
Other		254			381
		3,331			3,828
Less current portion		(1,969	)		(2,290	)
	$	1,362		$	1,538

The Company provides warranty policies on its products. In addition, the Company incurs costs to service our products in connection with specific product performance issues. Liabilities for product warranties are based upon expected future product performance and durability, and is estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant.

The changes in product warranty reserves for the six months ended December 31, 2011, is as follows:

(amounts in thousands)
Balance as of July 1, 2011	$	277
Additions		143
Costs incurred		(75	)
Adjustments		(169	)
Balance as of December 31, 2011	$	176