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WARRANTY

9 Months Ended

Mar. 31, 2023

Guarantees and Product Warranties [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 condensed consolidated balance sheets. As of March 31, 2023 and June 30, 2022, the warranty reserve amounted to $252,000 and $340,000, respectively. Warranty expenses are included in cost of sales in the accompanying condensed consolidated 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, 2023 and 2022, was $(77,000) and $102,000, respectively, and for the nine months ended March 31, 2023 and 2022, was $46,000 and $170,000, respectively.

Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2023 and 2022, are as follows (in thousands):

Schedule of accrual warranty costs
	As of and for the Three Months Ended March 31,
	2023			2022
Beginning balance	$	344		$	255
Accruals during the period		26			52
Changes in estimates of prior period warranty accruals		(103	)		50
Warranty amortization and utilization		(15	)		(29	)
Ending balance	$	252		$	328

As of and for the
Nine Months Ended
March 31,

2023 2022

Beginning balance $ 340 $ 221

Accruals during the period 135 117

Changes in estimates of prior period warranty accruals (89 ) 53

Warranty amortization and utilization (134 ) (63 )

Ending balance $ 252 $ 328