Quarterly report pursuant to sections 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2013
Allowance for Bad Debts

The allowance for bad debts for the nine months ended September 30, 2013 is comprised of the following:

 

Allowance for doubtful accounts at January 1

    $ 56,931   

Additions

      10,547   

Write-offs

      (5,547 ) 
  

 

 

  

Allowance for doubtful accounts at September 30

    $ 61,931   
  

 

 

  
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

Leasehold improvements

    Lesser of lease term or
estimated useful life
Changes in Warranty Liability

Changes in the warranty liability for the nine months ended September 30, 2013 are as follows:

 

Warranty reserves at January 1

    $ 345,974   

Provisions for current period sales

      267,255   

Acquisition of Relume

      98,519   

Current period claims

      (111,708 ) 
  

 

 

  

Warranty reserves at September 30

    $ 600,040   
  

 

 

  
Valuation Assumptions used in Computation of Stock Option Expense

For the nine months ended September 30, 2012, the Company computed expense for each group utilizing the following assumptions:

 

     Nine Months Ended
September 30, 2012

Expected volatility

    75.8 – 115.4%

Weighted-average volatility

    76.6%

Risk-free interest rate

    0.4 – 0.9%

Expected dividend

    0%

Expected life in years

    3.5 – 8.6