WARRANTY

3 Months Ended

Sep. 30, 2013

Product Warranties Disclosures [Abstract]

WARRANTY

NOTE 3. 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 consolidated balance sheets. As of September 30, 2013 and June 30, 2013, the warranty reserve related to continuing operations amounted to $229,000 and $321,000, respectively. Warranty expenses are included in cost of sales in the accompanying consolidated statements of operations. 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. Total warranty expense for the three months ended September 30, 2013 and 2012 was $13,000 and $108,000, respectively.

Information regarding the accrual for warranty costs for the three months ended September 30, 2013 and 2012 are as follows:

	Three Months Ended September 30,
	2013			2012
Balances, beginning of period	$	321,000		$	526,000
Accruals during the period		49,000			149,000
Changes in estimates of prior period accruals		(36,000	)		(41,000	)
Warranty expenditures		(105,000	)		(49,000	)
Balances, end of period	$	229,000		$	585,000

In 2013, we reclassified certain amounts, previously classified as warranty expenditures, to a classification as out-of-warranty repair expenditures, which reclassification had an offsetting effect on the changes in estimates of prior period accruals. The 2012 amounts appearing in the table above have been reclassified to conform to the 2013 presentation. Such reclassifications had no effect on the accompanying condensed consolidated balance sheets or statements of operations.