. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	June 30,		September 30,
	2016		2015

Payroll and related	$	1,200,915	$	330,916
Deferred revenue		339,095		51,345
Warranty reserve		261,328		289,660
Accrued contract costs		98,517		197,034
Other		-		1,600
Total	$	1,899,855	$	870,555


Other liabilities - noncurrent consisted of the following:

Deferred rent	$	104,119	$	121,996
Extended warranty		52,951		25,958
Total	$	157,070	$	147,954

Payroll and related

Payroll and related consists primarily of accrued payroll, benefits and related taxes for a Separation Agreement entered into with the Company’s CEO during the quarter ended March 31, 2016, as well as vacation, sales commissions, and payroll for the two week period ended June 30, 2016.

Deferred Revenue

Deferred revenue consists primarily of prepayments from customers in advance of product shipment as well as revenue for shipments to customers that can’t be recognized due to shipping terms.

Warranty Reserve

Changes in the warranty reserve and extended warranty were as follows:

	Three month ended						Nine months ended
	June 30,						June 30,
	2016			2015			2016			2015
Beginning balance	$	317,822		$	327,236		$	315,618		$	314,311
Warranty provision		4,307			(20,954	)		30,610			19,720
Warranty settlements		(7,850	)		(5,511	)		(31,949	)		(33,260	)
Ending balance	$	314,279		$	300,771		$	314,279		$	300,771

	June 30,		September 30,		June 30,		September 30,
	2016		2015		2016		2015
Short-term warranty reserve	$	261,328	$	289,660	$	261,328	$	289,660
Long-term warranty reserve		52,951		25,958		52,951		25,958
Total warranty reserve	$	314,279	$	315,618	$	314,279	$	315,618

Accrued contract costs

We have contracted with a third party service provider to administer the required services under the terms of a repair and maintenance agreement with a foreign military. This payment is made in arrears each year.