10. ACCRUED WARRANTY COSTS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Product Warranty Liability [Table Text Block]

The Company warranties its products for up to two years and estimated warranty costs are based upon management’s best estimate of the amounts necessary to settle future and existing claims on equipment sold as of the balance sheet date. Factors considered include actual past experience of product returns and the related estimated cost of labor and material to make the necessary repairs as well as technological advances and enhanced design and manufacturing processes. If actual future product return rates or the actual costs of material and labor differ from the estimates, adjustments to the accrued warranty liability are made. Changes to the product warranty reserve are identified below and represent adjustments to the reserve based on management estimates and other factors as noted above:

Balance as of December 31, 2009	$	304,000
Reserve adjustment		7,000
Balance as of December 31, 2010		311,000
Reserve adjustment		(41,000	)
Balance as of December 31, 2011		270,000
Reserve adjustment		29,000
Balance as of December 31, 2012	$	299,000