WARRANTY

9 Months Ended

Mar. 31, 2014

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 March 31, 2014 and June 30, 2013, the warranty reserve related to continuing operations amounted to $224,000 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 March 31, 2014 and 2013 was $53,000 and $127,000, respectively, and for the nine months ended March 31, 2014 and 2013 was $81,000 and $252,000, respectively.

Information regarding the accrual for warranty costs for the three and nine monthsended March 31,2014 and 2013 are as follows (in thousands):

	As of and for the Three Months Ended March 31,
	2014			2013
Beginning balance	$	200		$	361
Accruals during the period		70			107
Changes in estimates of prior period warranty accruals		(17	)		20
Warranty amortization		(29	)		(89	)
Ending balance	$	224		$	399

	As of and for the Nine Months Ended March 31,
	2014			2013
Beginning balance	$	321		$	526
Accruals during the period		167			261
Changes in estimates of prior period warranty accruals		(86	)		(9	)
Warranty amortization		(178	)		(379	)
Ending balance	$	224		$	399