. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	December 31,		September 30,
	2016		2016

Payroll and related	$	563,611	$	382,845
Deferred revenue		373,028		637,763
Warranty reserve		297,576		285,402
Accrued contract costs		295,551		197,034
Total	$	1,529,766	$	1,503,044


Other liabilities - noncurrent consisted of the following:

Deferred rent	$	82,793	$	93,456
Extended warranty		56,362		71,582
Total	$	139,155	$	165,038

Payroll and related

Payroll and related consists primarily of accrued vacation, bonus, sales commissions, and benefits.

Deferred Revenue

Deferred revenue consists primarily of prepayments from customers in advance of product shipment.

Warranty Reserve

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

	Three months ended
	December 31,
	2016			2015
Beginning balance	$	356,984		$	315,618
Warranty provision		9,696			(22,267	)
Warranty settlements		(12,742	)		(972	)
Ending balance	$	353,938		$	292,379

	December 31,		September 30,
	2016		2016
Short-term warranty reserve	$	297,576	$	285,402
Long-term warranty reserve		56,362		71,582
Total warranty reserve	$	353,938	$	356,984

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 for each contract year ended

March

26.