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Note 4 - Warranty Reserve
9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Product Warranty Disclosure [Text Block]

Note 4. Warranty Reserve

 

The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a one- to five-year warranty for all homecare distributor, hospital and other sales. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company’s warranty reserve include the number of units shipped, historical and anticipated rates of warranty claims, the product’s useful life and cost per claim. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts as necessary.

 

Changes in the Company’s warranty reserve were as follows:

 

  

Nine Months Ended

  

Fiscal Year Ended

 
  

March 31, 2026

  

June 30, 2025

 

Warranty reserve, beginning

 $1,645,000  $1,567,000 

Accrual for products sold

  452,000   441,000 

Expenditures and costs incurred for warranty claims

  (313,000)  (363,000)

Warranty reserve, ending

 $1,784,000  $1,645,000