Annual report pursuant to Section 13 and 15(d)

Accounting Policies (Tables)

Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2018

Cost is determined using the first-in first-out method. As of September 30, 2018 and October 1, 2017 inventory included:

	(Thousands)
	As of September 30, 2018			As of October 1, 2017
Raw Materials	$	5,580		$	5,931
Work in Process		3,478			2,859
Finished Goods		254			441
Gross Inventory		9,312			9,231
Less: Inventory Reserves		(1,673	)		(1,617	)
Net Inventory	$	7,639		$	7,614

Schedule of warranty reserves

The table below summarizes the warranty expenses and incurred warranty costs for the twelve months ended September 30, 2018 and October 1, 2017.

	(Thousands)
	Year ended
Warranty Reserves	2018			2017

Beginning Balance	$	174		$	28
Incurred Warranty Costs		(346	)		(182	)
Expensed to Cost of Sales ⁽¹⁾		273			328
Ending Balance	$	101		$	174

(1) Includes $98 thousand in expenses related to a change in estimated cost for repairs on 2017 accrued warranty returns due supplier quality issues on warranty replacement materials.