The Companys revenues result from the sale of goods and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 2014-09 , Revenue from Contracts with Customers (Topic 606) . For its customer contracts, typically purchase orders, the Company identifies the performance obligations (goods), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when the performance obligation is transferred to the customer. A good is transferred when the customer obtains control of that good and risk of loss transfers at that point in time. ? Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated based upon agreed percentages. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general and administrative expense (SG&amp;A). ? The Company has a limited lifetime warranty on all products. The Company does not offer the option to purchase warranties. The Company accounts for warranties under ASC Subtopic 460, Guarantees , and not as variable consideration related to revenue. ? Occasionally the Company receives deposits from customers before it has transferred control of the product to customers, resulting in contract liabilities. These contract liabilities are reported within Accounts payable - trade in the consolidated balance sheets. As of June 30, 2018, the Company had $2.2 million of customer deposits. As of March 31, 2019, the Company had $1.9 million of customer deposits. ? Upon adoption of ASC 606, the Company elected the following practical expedients and policy elections:  Costs for shipping and handling activities that occur before the customer obtains control of the product are accounted for as fulfillment activities. Accordingly, these expenses are recorded at the same time the Company recognizes revenue.  Incremental costs of obtaining a contract, specifically commissions, are recorded as an SG&amp;A expense when incurred.  All taxes imposed on and concurrent with revenue-producing transactions and collected by the Company from a customer, including sales, use, excise, and franchise taxes are excluded from the measurement of the transaction price. These accounting treatments are consistent with the Companys policies prior to adoption of ASC 606. Therefore, there will be no impact to the consolidated financial statements. ? Adoption of this standard did not result in significant changes to the Companys accounting policies, business processes, systems or controls, or have a material impact on financial position, results from operations and cash flows or related disclosures. As such, prior period financial statements were not adjusted.