ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 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,		September 30,
	2014		2015
Accounts payable	$	7,190,000	$	8,639,000
Accrued warranty		942,000		507,000
Accrued severance		180,000		-
Accrued compensation		1,360,000		372,000
Other current liabilities		430,000		281,000
	$	10,102,000	$	9,799,000

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 September 30, 2015.

The following table summarizes warranty activity for the nine-month periods ended September 30, 2014 and 2015:

	Nine Months Ended
	September 30,
	2014		2015
Accrued warranty reserve, beginning of period	$	522,000	$	942,000
Accrual for product warranties issued		240,000		371,000
Product replacements and other warranty expenditures		(116,000)		(162,000)
Expiration of warranties		(154,000)		(644,000)
Accrued warranty reserve, end of period	$	492,000	$	507,000