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WARRANTY

9 Months Ended

Mar. 31, 2016

Product Warranties Disclosures [Abstract]

NOTE 6. 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 March 31, 2016 and June 30, 2015, the warranty reserve amounted to $410,000 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 March 31, 2016 and 2015 was $49,000 and $103,000, respectively, and for the nine months ended March 31, 2016 and 2015 was $226,000 and $253,000, respectively.

Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2016 and 2015 are as follows (in thousands):

		As of and for the Three Months Ended March 31,
		2016				2015
Beginning balance		$	367			$	332
Accruals during the period			107				114
Changes in estimates of prior period warranty accruals			(58	)			(11	)
Warranty amortization			(6	)			(42	)
Ending balance		$	410			$	393

		As of and for the Nine Months Ended March 31,
		2016				2015
Beginning balance		$	261			$	237
Accruals during the period			306				263
Changes in estimates of prior period warranty accruals			(80	)			(10	)
Warranty amortization			(77	)			(97	)
Ending balance		$	410			$	393