Note 9 - Product Warranty

9 Months Ended

Aug. 31, 2021

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, 2021 and August 31, 2020 are as follows:

	For the Three Months Ended
	August 31, 2021			August 31, 2020
Balance, beginning	$	267,500		$	239,233
Settlements / adjustments		(75,204	)		(37,146	)
Warranties issued		53,384			66,146
Balance, ending	$	245,680		$	268,233

	For the Nine Months Ended
	August 31, 2021			August 31, 2020
Balance, beginning	$	291,453		$	203,185
Settlements / adjustments		(177,470	)		(65,722	)
Warranties issued		131,697			130,770
Balance, ending	$	245,680		$	268,233