Accounts Receivable

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Accounts Receivable [Text Block]

2.  Accounts Receivable –

Accounts receivable consisted of the following at March 31, 2013 and December 31, 2012:

	March 31, 2013			December 31, 2012
Accounts receivable under normal 30 day terms	$	344,491		$	2,047,563
Financed contracts:
Short-term		585,110			266,375
Current portion of long-term		1,936,916			1,296,041
Long-term, net of current portion		384,288			732,376
Total accounts receivable		3,250,805			4,342,355
Less allowance for doubtful accounts		(663,511	)		(663,511	)
Accounts receivable, net	$	2,587,294		$	3,678,844

The allowance for financed and trade receivable represents management’s estimate of probable losses in our trade and financed receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent of the trade and financed receivables but have not been specifically identified.

Included in Accounts receivable – Financed contracts at March 31, 2013 and December 31, 2012 is $2,321,205 and $2,294,792 with an offset to deferred revenues on the balance sheet of $1,272,196 and $1,457,793 at March 31, 2013 and December 31, 2012.

A roll-forward of the Company’s allowance for doubtful accounts is as follows:

	March 31, 2013		December 31, 2012
Accounts receivable allowance, beginning of period	$	663,511	$	237,844
Provision adjustment during period		0		425,667
Accounts receivable allowance, end of period	$	663,511	$	663,511

The allowance for doubtful accounts is $339,308 for the trade receivables and $324,203 for the financed contracts at both March 31, 2013 and December 31, 2012.