Note 9 - Product Warranty

9 Months Ended

Aug. 31, 2019

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

9 ) 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

no

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

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. The accrued warranty balance is included in accrued expenses as shown in Note

7

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

three

and

nine

months ended

August 31, 2019

and

August 31, 2018

are as follows:

	For the Three Months Ended
	August 31, 2019			August 31, 2018
Balance, beginning	$	89,637		$	71,216
Settlements / adjustments		(42,691	)		(73,108	)
Warranties issued		93,889			73,155
Balance, ending	$	140,835		$	71,263

	For the Nine Months Ended
	August 31, 2019			August 31, 2018
Balance, beginning	$	96,786		$	68,452
Settlements / adjustments		(237,629	)		(214,674	)
Warranties issued		281,678			217,485
Balance, ending	$	140,835		$	71,263