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Warranty Reserve
 6 Months Ended
Dec. 31, 2023
Guarantees and Product Warranties [Abstract]  
Warranty Reserve

Note 4. Warranty Reserve

 

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 hospital 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 reserve 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 reserve and adjusts the amounts as necessary.

 

Changes in the Company’s warranty reserve were as follows:

 

   Six Months Ended December 31, 2023   Fiscal Year Ended June 30, 2023 
Warranty reserve, beginning  $1,378,000   $1,256,000 
Accrual for products sold   296,000    416,000 
Expenditures and costs incurred for warranty claims   (191,000)   (294,000)
Warranty reserve, ending  $1,483,000   $1,378,000