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Warranty Liability
 9 Months Ended
Mar. 31, 2021
Product Warranties Disclosures [Abstract]  
Warranty Liability

Note 5. Warranty Liability

 

The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a three-year warranty for all institutional sales and sales to individuals outside the U.S. 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, the product’s useful life 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:

 

   Nine Months Ended March 31, 2021   Fiscal Year Ended June 30, 2020 
Warranty reserve, beginning   $740,000   $810,000 
Accrual for products sold   127,500    79,000 
Expenditures and costs incurred for warranty claims   (127,500)   (149,000)
Warranty reserve, ending   $740,000   $740,000