Commitments and Contingencies

6 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

3.      Commitments and Contingencies

Contingencies

The Company and a co-licensor are engaged in discussions regarding the sharing of royalties received by both parties on third party sales of certain disposable bag sets.  There are no agreements in effect between the licensors related to royalty payments.  The co-licensor believes they are due a share of past royalties.  The Company does not concur and has opposed any formal claim to share past royalties received and; therefore, has not made an accrual as of December 31, 2011.  The parties have entered into discussions regarding an appropriate sharing methodology for royalties received beginning in fiscal 2012.

Warranty

We offer a warranty on all of our products of one to two years, except disposable products which we warrant through their expiration date.  We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary.

The warranty liability is included in other current liabilities in the unaudited consolidated balance sheet.  The change in the warranty liability for the six months ended December 31, 2011 is summarized in the following table:

Balance at July 1, 2011	$	608,000
Warranties issued during the period		79,000
Settlements made during the period		(301,000	)
Changes in liability for pre-existing warranties during the period, including expirations		(18,000	)
Balance at December 31, 2011	$	368,000