Inventories and Deferred Costs of Goods Sold

3 Months Ended

Mar. 31, 2013

Inventories and Deferred Costs of Goods Sold [Abstract]

Inventory and Deferred Costs of Goods Sold [Text Block]

Inventories and Deferred Costs of Goods Sold

Inventories, net of $1.0 million and $860 thousand of reserves at March 31, 2013 and December 31, 2012, respectively, and deferred cost of goods sold consist of the following at: 

(in thousands)	March 31, 2013		December 31, 2012
Raw materials	$	1,616	$	1,784
Work in process	2,080		2,103
Finished goods	1,466		1,429
Net inventory	$	5,162	$	5,316
Deferred cost of goods sold	$	131	$	185

The Company wrote-off $29 thousand of excess and obsolete inventory for the three months ended March 31, 2012 and had no write-offs for the three months ended March 31, 2013.

Deferred cost of goods sold represents costs of equipment that has shipped to the customer and title has passed but not all revenue recognition criteria have yet been met.  The Company defers these costs until the related revenue is recognized.