ACCOUNTS PAYABLE AND ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2015

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,		March 31,
	2014		2015
Accounts payable	$	7,190,000	$	10,025,000
Accrued warranty		942,000		854,000
Accrued severance		180,000		120,000
Accrued compensation		1,360,000		409,000
Other current liabilities		430,000		200,000
	$	10,102,000	$	11,608,000

Included in accounts payable and accrued expenses at March 31, 2015 is accrued severance of $120,000, in the aggregate, to the Company’s Former Chief Executive Officer. The accrued severance is payable in equal monthly installments of approximately $20,000.

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, 2014 and March 31, 2015.

The following table summarizes warranty activity for the three-month periods ended March 31, 2014 and 2015:

	Three Months Ended March 31,
	2014		2015
Accrued warranty reserve, beginning of period	$	522,000	$	942,000
Accrual for product warranties issued		19,000		152,000
Product replacements and other warranty expenditures		(17,000)		(22,000)
Expiration of warranties		(57,000)		(218,000)
Accrued warranty reserve, end of period	$	467,000	$	854,000