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Note 8 - Agreements, Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 8 - AGREEMENTS, COMMITMENTS AND CONTINGENCIES

 

Contingencies - From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.

 

Product Warranties - The Company provides a standard warranty on its systems, generally for a period of one to three years after customer acceptance. The Company estimates the costs that may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.

 

In addition, the Company sells an extended warranty for certain systems, which generally provides a warranty for up to four years from the date of commissioning. The specific terms and conditions of the warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts.

 

The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts, as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and the cost per claim.

 

Changes in the Company's current and long-term warranty obligations included in accrued expenses on the balance sheet for the fiscal years ended December 31, 2024, and 2023 were as follows:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Balance at January 1

 $629,100  $898,072 

Warranty costs charged to cost of goods sold

  100,726   115,401 

Utilization charges against reserve

  (72,736)  (408,234)

Foreign currency effect

  (36,059)  23,861 

Balance at the end of the period

 $621,031  $629,100