WARRANTY

6 Months Ended

Dec. 31, 2023

Guarantees and Product Warranties [Abstract]

WARRANTY

NOTE 5. WARRANTY

The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying condensed consolidated balance sheets. As of December 31, 2023 and June 30, 2023, the warranty reserve amounted to $194,000 and $200,000, respectively. Warranty expenses are included in cost of sales in the accompanying condensed consolidated statements of income. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates and are included in current period warranty expense. Warranty expense relating to new product sales and changes to estimates for the three months ended December 31, 2023 and 2022 was $37,000 and $56,000, respectively, and for the six months ended December 31, 2023 and 2022 was $60,000 and $123,000, respectively.

Information regarding the accrual for warranty costs for the three and six months ended December 31, 2023 and 2022, are as follows (in thousands):

	As of and for the Three Months Ended December 31,						As of and for the Six Months Ended December 31,
	2023			2022			2023			2022
Beginning balance	$	189		$	365		$	200		$	340
Accruals during the period		29		$	55		$	53		$	109
Changes in estimates of prior period warranty accruals		8			1			7			14
Warranty amortization		(32	)		(77	)		(66	)		(119	)
Ending balance	$	194		$	344		$	194		$	344