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WARRANTY

6 Months Ended

Dec. 31, 2014

Product Warranties Disclosures [Abstract]

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 consolidated balance sheets. As of December 31, 2014 and June 30, 2014, the warranty reserve related to continuing operations amounted to $332,000 and $237,000, respectively. Warranty expenses are included in cost of sales in the accompanying consolidated 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 December 31, 2014 and 2013 was $155,000 and $16,000, respectively, and for the six months ended December 31, 2014 and 2013 was $150,000 and $29,000, respectively.

Information regarding the accrual for warranty costs for the three and six months ended December 31, 2014 and 2013 are as follows (in thousands):

	As of and for the Three Months Ended December 31,
	2014			2013
Beginning balance	$	213		$	229
Accruals during the period		79			47
Changes in estimates of prior period warranty accruals		76			(31	)
Warranty amortization		(36	)		(45	)
Ending balance	$	332		$	200

	As of and for the Six Months Ended December 31,
	2014			2013
Beginning balance	$	237		$	321
Accruals during the period		150			96
Changes in estimates of prior period warranty accruals		—			(67	)
Warranty amortization		(55	)		(150	)
Ending balance	$	332		$	200