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Note 10 - Accrued and Other Liabilities

12 Months Ended

Sep. 30, 2022

Current and Noncurrent Accrued Liabilities [Text Block]

10. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	September 30,
	2022		2021
Payroll and related	$	3,003	$	3,726
Deferred revenue		1,827		1,120
Customer deposits		4,724		8,701
Accrued contract costs		809		416
Warranty reserve		159		146
Canadian goods and services and harmonized sales tax payable		1,556		-
Other		5		2
Total	$	12,083	$	14,111

Other liabilities - noncurrent consisted of the following:

	September 30,
	2022		2021
Deferred extended warranty revenue	$	227	$	308
Asset purchase holdback liability		680		687
Total	$	907	$	995

Payroll and related

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

Deferred revenue

Deferred revenue as of September 30, 2022 included prepayments from customers for services, including extended warranty, scheduled to be performed in the year ending September 30, 2023.

Customer deposits

Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered during the year ending September 30, 2023.

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.

Warranty reserve

Details of the estimated warranty reserve were as follows:

	September 30,
	2022			2021
Beginning balance	$	146		$	126
Warranty provision		86			56
Warranty settlements		(73	)		(36	)
Ending balance	$	159		$	146

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.

Canadian goods and services and harmonized sales tax payable

The GST/HST is a Canadian value-added tax that applies to many goods and services. This represents amounts owed to the Canadian Revenue Agency by the Company’s Canadian subsidiary.

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 to two years.

Asset purchase holdback liability

In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to potential future adjustments to assets and liabilities, misrepresentations and indemnifications against third-party claims. Adjustments of up to CAD$1,000 (USD$728) will be deducted from the asset purchase holdback liability for up to three years from the closing date. The liability is recorded at fair value in the consolidated balance sheet.