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Warranty Liability
6 Months Ended
Dec. 31, 2013
Warranty Liability [Abstract]  
Warranty Liability

Note 4.

Warranty Liability

The Company provides a lifetime warranty on its products to the prescribed patient for sales within the United States and a three-year warranty for all institutional sales and sales to individuals outside the United States. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company's warranty liability include the number of units shipped, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.

Changes in the Company's warranty liability were approximately as follows:

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
December 31,
2013

 

Year Ended
June 30, 2013

 

Beginning warranty reserve

 

$

680,000

 

 

610,000

 

Accrual for products sold

 

 

103,000

 

 

232,000

 

Expenditures and costs incurred for warranty claims

 

 

(83,000

)

 

(162,000

)

Ending warranty reserve

 

$

700,000

 

 

680,000