12. Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

12. COMMITMENTS AND CONTINGENCIES

The Company leases its operating facility through February 2018. Rent expense was approximately $0.3 million and $0.2 million for the years ended December 31, 2012 and 2011, respectively, under the terms of this and previous lease agreements.

Minimum future lease payments are as follows at December 31, 2012:

2013	$	209,751
2014		177,410
2015		180,872
2016		184,403
2017		188,005
2018		15,692
Thereafter		—
	$	956,133

Changes in the product warranty accrual for the year ended December 31, 2012 and 2011 were as follows:

	Year Ended December 31,
	2012			2011
Product warranty liability at beginning of period	$	140,000			25,000
Additions to warranty accrual (including changes in estimates)		385,625			251,885
Warranty expenses during the period		(262,625	)		(136,885	)
Product warranty liability at end of period	$	263,000			140,000

The Company is not currently subject to any material legal proceedings, nor, to its knowledge, is any material legal proceeding threatened against it. From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of business. While the outcome of these legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon its financial condition or results of operations.