. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	June 30,		September 30,
	2017		2016

Payroll and related	$	1,167,742	$	382,845
Warranty reserve		400,179		285,402
Accrued contract costs		255,460		197,034
Deferred revenue		65,990		637,763
Customer deposits		8,968		-
Total	$	1,898,339	$	1,503,044

Other liabilities - noncurrent consisted of the following:

Deferred rent	$	61,468	$	93,456
Extended warranty		-		71,582
Total	$	61,468	$	165,038

Payroll and related

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

Warranty Reserve

Changes in the warranty reserve were as follows:

	Three month ended						Nine months ended
	June 30,						June 30,
	2017			2016			2017			2016
Beginning balance	$	449,141		$	317,822		$	356,984		$	315,618
Warranty provision		(2,761	)		4,307			108,608			30,610
Warranty settlements		(46,201	)		(7,850	)		(65,413	)		(31,949	)
Ending balance	$	400,179		$	314,279		$	400,179		$	314,279

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.

Deferred Revenue

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