SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2015

Summary Of Significant Accounting Policies Tables

Credit and Concentration Risks

There were four customers that represented 62.1% and three customers that represented 68.3% of total sales for the three months ended September 30, 2015 and 2014, respectively. This is set forth in the table below.

Customer		Percentage of Sales
		2015		2014
		(unaudited)		(unaudited)
	1		17.3		**
	2		17.0		27.6
	3		14.9		30.1
	4		12.9		**
	5		*		10.6

* Customer was less than 10% of sales for the three months ended September 30, 2015

** Customer was less than 10% of sales for the three months ended September 30, 2014

There were four customers that represented 55.3% and two customers that represented 48.8% of total sales for the nine months ended September 30, 2015 and 2014, respectively. This is set forth in the table below.

Customer		Percentage of Sales
		2015		2014
		(unaudited)		(unaudited)
	1		18.8		30.0
	2		15.3		18.8
	3		11.1		**
	4		10.1		**

** Customer was less than 10% of sales for the nine months ended September 30, 2014

There were two customers that represented 43.6% of gross accounts receivable and three customers that represented 50.4% of gross accounts receivable at September 30, 2015 and December 31, 2014, respectively. This is set forth in the table below.

Customer		Percentage of Receivables
		September		December
		2015		2014
		(unaudited)
	1		22.8		11.4
	2		20.8		29.0
	3		*		10.0

* Customer was less than 10% of Gross Accounts Receivable at September 30, 2015

Earnings per share

The following is a reconciliation of the denominators of basic and diluted earnings per share computations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		7,559,501		7,092,655		7,450,707		6,415,402
Effect of dilutive stock options and warrants		126,786		296,031		-		296,340
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		7,686,287		7,388,686		7,450,707		6,711,742

The following table sets forth options and warrants which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares:

	Three and Nine Months Ended
	September 30,		September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Stock Options		258,391		17,048
Warrants		46,800		46,800
		305,191		63,848

The following table sets forth options and warrants which were excluded from the diluted per share calculation for the nine months ended September 30, 2015 even though the exercise price was less than the average market price of the common shares because the effect of including these potential shares was anti-dilutive due to the net loss incurred during that period:

Stock Options	322,675
Warrants	117,785
	440,460