7. Details of Certain Financial Statement Components and Supplemental Disclosures of Cash Flow Information and Non-Cash Activities

Balance Sheet Data:


	June 29, 2013			December 31, 2012
Accounts receivable:
Accounts receivable-trade	$	234,000		$	57,000
U.S. government accounts receivable-billed		—			67,000
Less: allowance for doubtful accounts		(2,000	)		(2,000	)

	$	232,000		$	122,000


	June 29, 2013			December 31, 2012
Inventories:
Raw materials	$	1,062,000		$	1,031,000
Reserve for raw materials		(1,028,000	)		(1,031,000	)
Work-in-process		336,000			335,000
Reserve for work-in process		(328,000	)		(314,000	)
Finished goods		261,000			676,000
Reserve for finished goods		(196,000	)		(646,000	)

	$	107,000		$	51,000


	June 29, 2013			December 31, 2012
Property and Equipment:
Equipment	$	18,078,000		$	18,625,000
Leasehold improvements		7,397,000			6,675,000
Furniture and fixtures		387,000			387,000

		25,862,000			25,687,000
Less: accumulated depreciation and amortization		(19,994,000	)		(19,445,000	)

	$	5,868,000		$	6,242,000

Depreciation expense amounted to $337,000 and $555,000, respectively, for the three and six month periods ended June 29, 2013 and $39,000 and $73,000, respectively, for the three and six month periods ended June 30, 2012.


	June 29, 2013			December 31, 2012
Patents and Licenses:
Patents pending	$	403,000		$	517,000

Patents issued		1,097,000			1,033,000
Less accumulated amortization		(694,000	)		(661,000	)

Net patents issued		403,000			372,000

Purchased technology		1,706,000			1,706,000
Less accumulated amortization		(1,706,000	)		(1,706,000	)

Net purchased technology		—			—

	$	806,000		$	889,000

Amortization expense related to these items totaled $17,000 and $34,000, respectively, for the three and six month periods ended June 29, 2013 and $28,000 and $57,000, respectively, for the three and six month periods ended June 30, 2012. Amortization expenses are expected to total $34,000 for the remainder of 2013 and $65,000 in each of 2014 and 2015.


	June 29, 2013			December 31, 2012
Accrued Expenses and Other Long Term Liabilities:
Salaries payable	$	77,000		$	81,000
Compensated absences		250,000			215,000
Compensation related		48,000			47,000
Warranty reserve		185,000			227,000
Deferred rent		460,000			470,000
Other		214,000			94,000

		1,234,000			1,134,000
Less current portion		(687,000	)		(460,000	)

Long term portion	$	547,000		$	674,000



	For the six months ended,
	June 29, 2013			June 30, 2012
Warranty Reserve Activity:
Beginning balance	$	227,000		$	225,000
Additions		2,000			19,000
Deductions		(44,000	)		(50,000	)

Ending balance	$	185,000		$	194,000