Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2016

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable and Accrued Expenses

NOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	December 31, 2015		September 30, 2016
			(Unaudited)
Accounts payable	$	8,026,000	$	6,871,000
Accrued warranty		614,000		508,000
Accrued compensation		418,000		289,000
Other current liabilities		115,000		54,000
	$	9,173,000	$	7,722,000

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, 2015 and September 30, 2016.

The following table summarizes warranty activity for the nine-month periods ended September 30, 2015 and 2016:

	Nine Months Ended September 30,
	2015			2016
Accrued warranty reserve, beginning of period	$	942,000		$	614,000
Accrual for product warranties issued		371,000			387,000
Product replacements and other warranty expenditures		(162,000	)		(245,000	)
Expiration of warranties		(644,000	)		(248,000	)
Accrued warranty reserve, end of period	$	507,000		$	508,000