ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 Months Ended

Dec. 31, 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,		December 31,
	2012		2013
Accounts payable	$	3,833,000	$	5,303,000
Accrued warranty		520,000		522,000
Accrued severance		-		100,000
Accrued compensation		1,182,000		172,000
Other current liabilities		103,000		167,000
	$	5,638,000	$	6,264,000

Included in accounts payable and accrued expenses at December 31, 2013 is accrued severance of $100,000 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 Consolidated Balance Sheets as of December 31, 2012 and 2013.

The following table summarizes warranty activity during the years ended December 31, 2012 and 2013:

	Year Ended
	2012		2013
Accrued warranty reserve, beginning of year	$	752,000	$	520,000
Accrual for product warranties issued		289,000		403,000
Product replacements and other warranty expenditures		(386,000)		(253,000)
Expiration of warranties		(135,000)		(148,000)
Accrued warranty reserve, end of period	$	520,000	$	522,000