Commitments and Contingencies

9 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

4.      Commitments and Contingencies

Contingencies

The Company and a co-licensor were engaged in discussions regarding the sharing of royalties received by both parties on third party sales of certain disposable bag sets.  During the quarter ended March 31, 2012, the parties reached an agreement which provides for the equal sharing of royalties between the two parties effective July 1, 2011, except for calendar 2012, in which the co-licensor shall receive 75% and the Company 25%.

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 nine months ended March 31, 2012 is summarized in the following table:

Balance at July 1, 2011	$	608,000
Warranties issued during the period		111,000
Settlements made during the period		(385,000	)
Changes in liability for pre-existing warranties during the period, including expirations		98,000
Balance at March 31, 2012	$	432,000