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

Balance Sheet Data:


	October 1, 2016			December 31, 2015
Accounts receivable:
Accounts receivable-trade	$	10,000		$	43,000
Less: allowance for doubtful accounts		(5,000	)		(5,000	)

	$	5,000		$	38,000


	October 1, 2016			December 31, 2015
Inventories:
Raw materials	$	64,000		$	651,000
Less: Raw material reserves		—			(578,000	)
Work-in-process		—			28,000
Less: Work-in-process reserves		—			(28,000	)
Finished goods		—			216,000
Less: Finished goods reserves		—			(168,000	)

	$	64,000		$	121,000


	October 1, 2016			December 31, 2015
Property and Equipment:
Equipment	$	11,571,000		$	11,571,000
Leasehold improvements		1,065,000			1,065,000
Furniture and fixtures		205,000			205,000

		12,841,000			12,841,000
Less: accumulated depreciation and amortization		(8,966,000	)		(7,290,000	)

	$	3,875,000		$	5,551,000

Depreciation expense amounted to $556,000 and $1.7 million, respectively, for the three and nine months ended October 1, 2016 and $629,000 and $1.9 million, respectively, for the three and nine months ended September 26, 2015.


	October 1, 2016			December 31, 2015
Patents and Licenses:
Patents pending	$	566,000		$	555,000

Patents issued		1,372,000			1,252,000
Less: accumulated amortization		(927,000	)		(869,000	)

Net patents issued		445,000			383,000

	$	1,011,000		$	938,000

Amortization expense related to these items totaled $20,000 and $58,000, respectively, for the three and nine months ended October 1, 2016, and $18,000 and $56,000, respectively, for the three and nine months ended September 26, 2015. Amortization expenses are expected to total $19,000 for the remainder of 2016 and $74,000 for each of 2017 and 2018.


	October 1, 2016			December 31, 2015
Accrued Expenses and Other Long Term Liabilities:
Salaries payable	$	55,000		$	98,000
Compensated absences		178,000			197,000
Compensation related		42,000			38,000
Warranty reserve		8,000			23,000
Deferred rent		55,000			132,000
Santa Barbara facility closure		148,000			—
Other		272,000			78,000
Fair value of warrant derivatives		254,000			245,000

		1,012,000			811,000
Less: current portion		(750,000	)		(418,000	)

Long term portion	$	262,000		$	393,000


	For the Nine months ended,
	October 1, 2016			September 26, 2015
Warranty Reserve Activity:
Beginning balance	$	23,000		$	38,000
Additions		—			—
Deductions		(15,000	)		(10,000	)

Ending balance	$	8,000		$	28,000