)

Product Warranty

The Company offers warranties of various lengths to its customers depending on the specific product and terms of the customer purchase agreement. The average length of the warranty period is

one

year from the date of purchase. The Company's warranties require it to repair or replace defective products during the warranty period at

cost to the customer. Product warranty is included in the price of the product and provides assurance that the product will function in accordance with agreed-upon specifications. It does

not

represent a separate performance obligation under ASC

606.

The Company records a liability for estimated costs that

may

be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. Although historical warranty costs have been within expectations, there can be

assurance that future warranty costs will

not

exceed historical amounts. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. The accrued warranty balance is included in accrued expenses as shown in Note

“Accrued Expenses.” Changes in the Company's product warranty liability for the

three

and

six

months ended

May 31, 2021

and

May 31, 2020

are as follows:

	For the Three Months Ended
	May 31, 2021			May 31, 2020
Balance, beginning	$	295,581		$	239,233
Settlements / adjustments		(72,888	)		(37,146	)
Warranties issued		44,807			66,146
Balance, ending	$	267,500		$	268,233

	For the Six Months Ended
	May 31, 2021			May 31, 2020
Balance, beginning	$	291,454		$	203,185
Settlements / adjustments		(102,267	)		(65,722	)
Warranties issued		78,313			130,770
Balance, ending	$	267,500		$	268,233