Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

NOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	December 31,
	2017		2018
Accounts payable	$	6,233,000	$	6,644,000
Accrued warranty		535,000		422,000
Accrued severance		100,000		-
Accrued compensation		507,000		870,000
Other current liabilities		65,000		91,000
	$	7,440,000	$	8,027,000

Included in accounts payable and accrued expenses at December 31, 2017 is accrued severance of $100,000 to Kenneth Ehrman, the former Chief Executive Officer of the Company.

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, 2017 and 2018.

The following table summarizes warranty activity during the years ended December 31, 2017 and 2018:

	Year Ended
	2017			2018
Accrued warranty reserve, beginning of year	$	472,000		$	535,000
Accrual for product warranties issued		253,000			192,000
Product replacements and other warranty expenditures		(68,000	)		(182,000	)
Expiration of warranties		(122,000	)		(123,000	)
Accrued warranty reserve, end of period	$	535,000		$	422,000