Quarterly report pursuant to Section 13 or 15(d)

Accounting Policies (Tables)

Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2019

As of June 30, 2019 and September 30, 2018, inventory included:

	(Thousands)
	June 30, 2019			September 30, 2018
Raw Material	$	7,279		$	5,580
Work in Process		3,568			3,478
Finished Goods		258			254
Gross Inventory	$	11,105		$	9,312
Less: Inventory Reserves		(1,527	)		(1,673	)
Net Inventory	$	9,578		$	7,639

Schedule of Warranty Reserves

We believe we have made sufficient improvements to the production process to minimize the return rate on future shipments but we will continue to review and monitor the reserve balances related to our product lines against any existing warranty backlog and current trend data on an interim basis until the current warranty backlog is depleted.

	Three months ended						Nine months ended
	June 30, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Beginning balance	$	91		$	122		$	101		$	174

Incurred costs for warranties satisfied during the period		(62	)		(21	)		(89	)		(284	)

Warranty Expenses:
Warranties reserved for new product shipped during the period⁽¹⁾		2			29			54			139
Change in estimate for pre-existing warranty liabilities ⁽²⁾		10			33			(25	)		134
Warranty Expense		12			62			29			273

Ending balance	$	41		$	163		$	41		$	163

(1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate).

(2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period.