WARRANTY

6 Months Ended

Dec. 31, 2021

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 balance sheets. As of December 31, and June 30, 2021, the warranty reserve amounted to $255,000 and $221,000, 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, 2021 and 2020, was $44,000 and $182,000, respectively, and for the six months ended December 31, 2021 and 2020, was $68,000 and $254,000, respectively.

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

	As of and for the Three Months Ended December 31,
	2021			2020
Beginning balance	$	232		$	190
Accruals during the period		33			175
Changes in estimates of prior period warranty accruals		11			7
Warranty amortization		(21	)		(25	)
Ending balance	$	255		$	347

	As of and for the Six Months Ended December 31,
	2021			2020
Beginning balance	$	221		$	213
Accruals during the period		64			255
Changes in estimates of prior period warranty accruals		4			(1	)
Warranty amortization		(34	)		(120	)
Ending balance	$	255		$	347