. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	March 31, 2016		September 30, 2015

Payroll and related	$	969,724	$	330,916
Deferred revenue		795,532		51,345
Warranty reserve		253,801		289,660
Accrued contract costs		-		197,034
Other		-		1,600
Total	$	2,019,057	$	870,555


Other liabilities - noncurrent consisted of the following:

Deferred rent	$	110,078	$	121,996
Extended warranty		64,021		25,958
Total	$	174,099	$	147,954

Payroll and related

Payroll and related consists primarily of accrued payroll, benefits and related taxes for a Separation Agreement entered into with the Company’s CEO during the quarter, as well as accrued vacation and sales commissions.

Deferred Revenue

Deferred revenue consists primarily of prepayments from customers in advance of product shipment as well as revenue for shipments to customers that can’t be recognized due to shipping terms.

Warranty Reserve

Changes in the warranty reserve and extended warranty were as follows:

	Three month ended March 31,						Six months ended March 31,
	2016			2015			2016			2015
Beginning balance	$	292,379		$	325,107		$	315,618		$	314,311
Warranty provision		48,570			21,476			26,303			40,674
Warranty settlements		(23,127	)		(19,347	)		(24,099	)		(27,749	)
Ending balance	$	317,822		$	327,236		$	317,822		$	327,236

	March 31, 2016		September 30, 2015		March 31, 2016		September 30, 2015
Short-term warranty reserve	$	253,801	$	289,660	$	253,801	$	289,660
Long-term warranty reserve		64,021		25,958		64,021		25,958
Total warranty reserve	$	317,822	$	315,618	$	317,822	$	315,618

Accrued contract costs

We have contracted with a third party service provider to administer the required services under the terms of a repair and maintenance agreement with a foreign military. This payment is made in arrears each year.