Annual report pursuant to section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2012
Warranty Liability

Changes in the Company’s warranty liability for the years ended December 31, 2012 and 2011 are as follows:

 

     Year Ended December 31,  
     2012     2011  

Warranty reserves at January 1,

    $ 42,611      $ 46,866   

Assumed warranty liability from acquisition of Seesmart

      301,955        —     

Provisions for current year sales

      7,358        16,076   

Current year claims

      (5,950 )      (20,331 ) 
  

 

 

    

 

 

  

Warranty reserves at December 31,

    $ 345,974      $ 42,611   
  

 

 

    

 

 

  
Records of Allowance for Doubtful Accounts
     Year Ended December 31,  
     2012     2011  

Allowance for doubtful accounts at January 1,

    $ 52,912      $ 35,899   

Additions

      17,219        18,521   

Write-offs

      (13,200 )      (1,508 ) 
  

 

 

    

 

 

  

Allowance for doubtful accounts at December 31,

    $ 56,931      $ 52,912   
  

 

 

    

 

 

  
Estimated Useful Lives of Property and Equipment

The estimated useful lives of property and equipment are as follows:

 

     Estimated useful lives

Machinery and equipment

    3-20 years

Furniture and fixtures

    5-7 years

Computers and software

    3-7 years

Motor vehicles

    5 years

Leasehold improvements

    Lesser of lease term or

estimated useful life
Valuation Assumptions used in Computation of Stock Option Expense

The Company then computes the expense for each group utilizing these assumptions.

 

    

Years Ended December 31,
    

2012

   

2011

Expected volatility

    75.8% - 118.6%    0% - 84.7%

Weighted-average volatility

    78.1 %    81.0%

Risk-free interest rate

    0.3% - 0.9 %    0.4% - 2.2%

Expected dividend yield

    0%    0%

Expected life in years

    3.5 - 8.6    3.5 - 8.6