Product Warranty Provisions

6 Months Ended

Jun. 30, 2011

Product Warranty Provisions

Product Warranty Provisions

12. Product Warranty Provisions

The Company's standard policy is to warrant all NIOBE and ODYSSEY systems against defects in material or workmanship for one year following installation. The Company's estimate of costs to service the warranty obligations is based on historical experience and current product performance trends. A regular review of warranty obligations is performed to determine the adequacy of the reserve and adjustments are made to the estimated warranty liability as appropriate.

Accrued warranty, which is included in other accrued liabilities, consists of the following:

	June 30, 2011
Warranty accrual, December 31, 2010	$	469,837
Warranty expense incurred		487,476
Payments made		(256,015	)
Warranty accrual, June 30, 2011	$	701,298