ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2012

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 14 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	December 31, 2011		September 30, 2012
Accounts payable	$	7,160,000	$	6,660,000
Accrued warranty		752,000		706,000
Accrued compensation		1,388,000		673,000
Other current liabilities		182,000		86,000
	$	9,482,000	$	8,125,000

The Company’s products are warranted against defects in materials and workmanship for a period of 12 months from the date of acceptance of the product by the customer. The customers may purchase an extended warranty providing coverage up to a maximum of 60 months. A provision for estimated future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2011 and September 30, 2012.

The following table summarizes warranty activity for the nine-month periods ended September 30, 2011 and 2012:

	Nine Months Ended September 30,
	2011			2012
Accrued warranty reserve, beginning of period	$	2,069,000		$	752,000
Accrual for product warranties issued		356,000			313,000
Product replacements and other warranty expenditures		(438,000	)		(107,000	)
Expiration of warranties		(171,000	)		(252,000	)
Accrued warranty reserve, end of period	$	1,816,000		$	706,000