The Company (Tables)

3 Months Ended

Mar. 31, 2014

The Company offers a standard warranty on product sales generally for a one to two-year period. In the case of domestic sales of XTRAC lasers, however, the Company has offered longer warranty periods, ranging from three to four years, in order to meet competition or meet customer demands. The Company provides for the estimated cost of the future warranty claims on the date the product is sold. Total accrued warranty is included in Other Accrued Liabilities on the balance sheet. The activity in the warranty accrual during the three months ended March 31, 2014 and 2013 is summarized as follows:

	March 31,
	2014			2013
	(unaudited)			(unaudited)
Accrual at beginning of year	$	1,151		$	1,440
Additions charged to warranty expense		256			337
Expiring warranties		(69	)		(152	)
Claims satisfied		(247	)		(314	)
Total		1,091			1,311
Less: current portion		(1,021	)		(1,190	)
Accrued extended warranty	$	70		$	121

Calculation of Basic and Diluted Earnings per Common Share

Basic and diluted earnings per common share were calculated using the following weighted-average shares outstanding:

	For the Three Months Ended March 31,
	2014		2013
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding		18,719,419		20,678,023
Dilutive effect of stock options and warrants		-		469,560
Diluted number of common and common stock equivalent shares outstanding		18,719,419		21,147,583