. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	March 31,		September 30,
	2017		2016

Payroll and related	$	973,438	$	382,845
Deferred revenue		412,049		637,763
Warranty reserve		409,031		285,402
Accrued contract costs		394,068		197,034
Total	$	2,188,586	$	1,503,044


Other liabilities - noncurrent consisted of the following:

Deferred rent	$	72,130	$	93,456
Extended warranty		40,110		71,582
Total	$	112,240	$	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 month ended						Six months ended
	March 31,						March 31,
	2017			2016			2017			2016
Beginning balance	$	353,938		$	292,379		$	356,984		$	315,618
Warranty provision		101,673			48,570			111,369			26,303
Warranty settlements		(6,470	)		(23,127	)		(19,212	)		(24,099	)
Ending balance	$	449,141		$	317,822		$	449,141		$	317,822

	March 31,		September 30,		March 31,		September 30,
	2017		2016		2017		2016
Short-term warranty reserve	$	409,031	$	285,402	$	409,031	$	285,402
Long-term warranty reserve		40,110		71,582		40,110		71,582
Total warranty reserve	$	449,141	$	356,984	$	449,141	$	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.