ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2013

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 13- ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	December 31, 2012		September 30, 2013
Accounts payable	$	3,833,000	$	5,292,000
Accrued warranty		520,000		462,000
Accrued severance				150,000
Accrued compensation		1,182,000		252,000
Other current liabilities		103,000		129,000
	$	5,638,000	$	6,285,000

Included in accounts payable and accrued expenses at September 30, 2013 is accrued severance of $150,000 to the Company’s former Chief Operating Officer. The accrued severance is payable in equal monthly installments of approximately $17,000.

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, 2012 and September 30, 2013.

The following table summarizes warranty activity for the nine-month periods ended September 30, 2012 and 2013:

	Nine Months Ended September 30,
	2012		2013
Accrued warranty reserve, beginning of period	$	752,000	$	520,000
Accrual for product warranties issued		313,000		337,000
Product replacements and other warranty expenditures		(107,000)		(222,000)
Expiration of warranties		(252,000)		(173,000)
Accrued warranty reserve, end of period	$	706,000	$	462,000