Note 7 - Product Warranty

12 Months Ended

Nov. 30, 2014

Product Warranty Disclosure [Text Block]

(7)

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 1 year from date of purchase. The Company’s warranties require it to repair or replace defective products during the warranty period at no cost to the customer. 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 no 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.

Changes in the Company’s product warranty liability included in “accrued expenses” for the years ended November 30, 2014 and 2013 are as follows:

	November 30, 2014			November 30, 2013
Balance, beginning	$	220,719		$	578,864
Settlements / adjustments		(421,787	)		(605,281	)
Warranties issued		435,334			247,136
Balance, ending	$	234,266		$	220,719