. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	September 30,
	2020		2019
Payroll and related	$	2,545	$	2,050
Deferred revenue		731		509
Customer deposits		3,683		5,063
Foreign currency forward contract liability		5,281		-
Accrued contract costs		719		253
Warranty reserve		126		150
Deferred rent		-		109
Total	$	13,085	$	8,134

Other liabilities - noncurrent consisted of the following:

	September 30,
	2020		2019
Deferred rent	$	-	$	1,881
Deferred extended warranty revenue		293		551
Total	$	293	$	2,432

Payroll and related

Accrued payroll and related consisted primarily of accrued bonus, accrued vacation, accrued sales commissions and benefits at

September

30,

2020

and

2019.

Deferred Revenue

Deferred revenue at

September 30, 2020

included prepayments from customers for services, including extended warranty, scheduled to be performed in the year ended

September 30, 2021.

Customer Deposits

Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered during the year ended

September 30, 2021.

Foreign currency forward contract liability

August 2020,

in connection with the acquisition of Amika Mobile (see Note

Basis of Presentation and Significant Accounting Policies ), the Company entered into a foreign currency forward contract to mitigate the foreign currency exchange risk associated with the purchase price that was denominated in Canadian dollars. The forward contract liability represents the fixed value required to settle the forward contract. The foreign currency forward contract is classified under Level

of the fair value hierarchy (see Note

Fair Value Measurements).

Accrued contract costs

Accrued contract costs consist of accrued expenses for contracting a

third

-party service provider to fulfill repair and maintenance obligations required under a contract with a foreign military for units sold in the year ended

September 30, 2011.

Payments to the service provider will be made annually upon completion of each year of service. A new contract was signed with the customer in

May 2019

to continue repair and maintenance services through

May 2024.

These services are being recorded in cost of revenues to correspond with the revenues for these services.

Deferred Rent

Deferred rent liability as of

September 30, 2019

consists of the difference between the average rental amount charged to expense and amounts payable under the lease for the Company's operating facility. Deferred rent also included cash and leasehold incentives from the landlord in the aggregate amount of

$1,991

as of

September 30, 2019

to compensate for costs incurred by the Company to make the office space ready for operation (leasehold incentives). Prior to the adoption of Topic

842,

leasehold incentives received from a landlord are deferred and recognized on a straight-line basis as a reduction to rent expense over the lease term. Upon adoption of Topic

842,

the leasehold incentives were a reduction to the measurement of the operating lease ROU asset. Refer to Note

Recent Accounting Pronouncements and Note

12,

Leases for further detail on the adoption of Topic

842.

Warranty Reserve

Details of the estimated warranty reserve were as follows:

	September 30,
	2020			2019
Beginning balance	$	150		$	99
Warranty provision		16			85
Warranty settlements		(40	)		(34	)
Ending balance	$	126		$	150

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period and adjusts the accrued warranty liability to an amount equal to estimated warranty expense for products currently under warranty.

Deferred extended warranty revenue

Deferred extended warranty revenue consists of warranties purchased in excess of the Company's standard warranty. Extended warranties typically range from

one

two

years.