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WARRANTY

6 Months Ended

Dec. 31, 2017

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, 2017 and June 30, 2017, the warranty reserve amounted to $150,000 and $159,000, 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, 2017 and 2016 was $28,000 and $144,000, respectively, and for the six months ended December 31, 2017 and 2016 was $28,000 and $214,000, respectively.

Information regarding the accrual for warranty costs for the three and six months ended December 31, 2017 and 2016 are as follows (in thousands):


	As of and for the Three Months Ended December 31,
	2017			2016
Beginning balance	$	146		$	349
Accruals during the period		32			126
Changes in estimates of prior period warranty accruals		(4	)		18
Warranty amortization		(24	)		(75	)
Ending balance	$	150		$	418


	As of and for the Six Months Ended December 31,
	2017			2016
Beginning balance	$	159		$	365
Accruals during the period		52			227
Changes in estimates of prior period warranty accruals		(24	)		(13	)
Warranty amortization		(37	)		(161	)
Ending balance	$	150		$	418