WARRANTY

6 Months Ended

Dec. 31, 2020

Product Warranties Disclosures [Abstract]

WARRANTY

NOTE 4. 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 balance sheets. As of December 31 and June 30, 2020, the warranty reserve amounted to $347,000 and $213,000, respectively. Warranty expenses are included in cost of sales in the accompanying 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. Warranty expense relating to new product sales and changes to estimates for the three months ended December 31, 2020 and 2019 was $182,000 and $44,000, respectively, and for the six months ended December 31, 2020 and 2019 was $254,000 and $56,000, respectively.

Information regarding the accrual for warranty costs for the three and six months ended December 31, 2020 and 2019 are as follows (in thousands):

	As of and for the Three Months Ended December 31,
	2020			2019
Beginning balance	$	190		$	126
Accruals during the period		175			28
Changes in estimates of prior period warranty accruals		7			16
Warranty amortization		(25	)		(29	)
Ending balance	$	347		$	141

	As of and for the Six Months Ended December 31,
	2020			2019
Beginning balance	$	213		$	136
Accruals during the period		255			53
Changes in estimates of prior period warranty accruals		(1	)		3
Warranty amortization		(120	)		(51	)
Ending balance	$	347		$	141