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WARRANTY

9 Months Ended

Mar. 31, 2022

Guarantees and Product Warranties [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 balance sheets. As of March 31, 2022 and June 30, 2021, the warranty reserve amounted to $328,000 and $221,000, respectively. Warranty expenses are included in cost of sales in the accompanying income statements. 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, 2022 and 2021, was $102,000 and $77,000, respectively, and for the nine months ended March 31, 2022 and 2021, was $170,000 and $330,000, respectively.

Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2022 and 2021, are as follows (in thousands):

Schedule of Product Warranty Liability
	As of and for the Three Months Ended March 31,
	2022			2021
Beginning balance	$	255		$	347
Accruals during the period		52			57
Changes in estimates of prior period warranty accruals		50			20
Warranty amortization and utilization		(29	)		(116	)
Ending balance	$	328		$	308

	As of and for the Nine Months Ended March 31,
	2022			2021
Beginning balance	$	221		$	213
Accruals during the period		117			311
Changes in estimates of prior period warranty accruals		53			19
Warranty amortization and utilization		(63	)		(235	)
Ending balance	$	328		$	308