WARRANTY

9 Months Ended

Mar. 31, 2021

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 March 31, 2021 and June 30, 2020, the warranty reserve amounted to $308,000 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 March 31, 2021 and 2020, was $77,000 and $69,000, respectively, and for the nine months ended March 31, 2021 and 2020, was $330,000 and $125,000, respectively.

Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2021 and 2020, are as follows (in thousands):

	As of and for the Three Months Ended March 31,
	2021			2020
Beginning balance	$	347		$	141
Accruals during the period		57			77
Changes in estimates of prior period warranty accruals		20			(8	)
Warranty amortization and utilization		(116	)		(37	)
Ending balance	$	308		$	173

	As of and for the Nine Months Ended March 31,
	2021			2020
Beginning balance	$	213		$	136
Accruals during the period		311			130
Changes in estimates of prior period warranty accruals		19			(5	)
Warranty amortization and utilization		(235	)		(88	)
Ending balance	$	308		$	173