WARRANTY ACCRUAL

6 Months Ended

Dec. 31, 2014

Notes to Financial Statements

WARRANTY ACCRUAL (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded.  The warranty period for products manufactured by the Company is one year.  The Company estimates the warranty costs based on the historical rates of warranty returns.  The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.

	Dec. 31,
	2014			June 30,
	(Unaudited)			2014
Beginning	$	60		$	61
Additions charged to cost and expenses		3			23
Recovered		(5	)		(25	)
Actual usage		(7	)		-
Currency translation effect		(2	)		1
Ending	$	49		$	60