Note 3 - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2015

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

. VALUATION

AND QUALIFYING ACCOUNTS

●	Allowance for uncollectible accounts

We maintain allowances for bad debts based on factors such as the composition of accounts receivable, the age of the accounts, historical bad debt experience, and our evaluation of the financial condition and past collection history of each customer. Accounts are written off as they are deemed uncollectible based on a periodic review of accounts. Our allowance for doubtful accounts was approximately $1,700 and $400 at December 31, 2015 and 2014, respectively. The following is a roll forward of the allowance for doubtful accounts:

Year ended:	Balance at beginning of year		Reserve "purchased" during year		Additions (reductions) charged to costs and expenses			Foreign exchange gain/loss			Write-offs			B alance at end of year
December 31, 2015	$	395		-	$	1,449		$	(98	)		-		$	1,746
December 31, 2014	$	1,171		-	$	854		$	(25	)	$	(1,605	)	$	395
December 31, 2013	$	111,996		-	$	(106,504	)	$	(727	)	$	(3,594	)	$	1,171

●	Sales returns and defective merchandise

Product returns are generally recorded directly against sales as those returns occur. Historically, the amount of returns is immaterial and as a result, no reserve is recorded in the financial statements.

●	Slow-moving and obsolete inventory

The majority of inventory items maintained by us have no restrictive shelf life. We review all inventory items annually to determine what items should be eliminated from the product line. Items are selected for several reasons: (1) the item is slow-moving; (2) the supplier is unable to provide an acceptable quality or quantity; or (3) to maintain a freshness in the product line. Reductions in inventory for slow-moving and obsolete inventory are recorded directly against inventory.