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WARRANTY

6 Months Ended

Dec. 31, 2015

Product Warranties Disclosures [Abstract]

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 consolidated balance sheets. As of December 31, 2015 and June 30, 2015, the warranty reserve amounted to $367,000 and $261,000, 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, 2015 and 2014 was $73,000 and $155,000, respectively, and for the six months ended December 31, 2015 and 2014 was $178,000 and $150,000, respectively.

Information regarding the accrual for warranty costs for the three and six months ended December 31, 2015 and 2014 are as follows (in thousands):

		As of and for the Three Months Ended December 31,
		2015				2014
Beginning balance		$	312			$	213
Accruals during the period			56				79
Changes in estimates of prior period warranty accruals			17				76
Warranty amortization			(18	)			(36	)
Ending balance		$	367			$	332

		As of and for the Six Months Ended December 31,
		2015				2014
Beginning balance		$	261			$	237
Accruals during the period			151				150
Changes in estimates of prior period warranty accruals			27				—
Warranty amortization			(72	)			(55	)
Ending balance		$	367			$	332