INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Loss before income taxes consists of the following:

	Year Ended December 31,
	2011		2012		2013

U.S. operations	$	(4,198,000)	$	(2,736,000)	$	(7,140,000)
Foreign operations		(232,000)		(518,000)		(422,000)

	$	(4,430,000)	$	(3,254,000)	$	(7,562,000)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following:

	Year Ended December 31,
	2011		2012		2013

Income tax benefit at the federal statutory rate	$	(1,499,000)	$	(1,106,000)	$	(2,550,000)
State and local income taxes, net of effect on federal taxes		(294,000)		(256,000)		(646,000)
Increase (decrease) in valuation allowance		1,328,000		(580,000)		2,440,000
ISO grants and restricted shares		276,000		224,000		223,000
Expiration and adjustment on sale of state net operating loss		-		428,000		452,000
Sale of NJ net operating loss carryforwards		(390,000)		-		-
Permanent differences and other		189,000		628,000		18,000

	$	(390,000)	$	(662,000)	$	(63,000)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2013 are presented below:

	December 31,
	2012		2013

Deferred tax assets:
Net operating loss carryforwards	$	13,928,000	$	15,065,000
Stock-based compensation		1,357,000		1,386,000
Deferred revenue		4,058,000		4,048,000
Intangibles, amortization		642,000		1,058,000
Inventories		461,000		1,076,000
Acquisition related expenses		433,000		418,000
Other deductible temporary differences		670,000		814,000

Total gross deferred tax assets		21,549,000		23,865,000
Less: Valuation allowance		(18,530,000)		(21,473,000)

		3,019,000		2,392,000
Deferred tax liabilities:
Deferred expenses		(1,996,000)		(2,093,000)
Fixed assets, depreciation		(361,000)		(236,000)

		(2,357,000)		(2,329,000)

Net deferred tax assets	$	662,000	$	63,000