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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="vertical-align: top;"><td style="width: 27pt; vertical-align: top; align: right;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">3.</div></td><td style="width: auto; vertical-align: top; align: left;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">Net Loss Per Share</div></td></tr></table></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):</div><div style="text-align: left;"><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="6" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">Three Months Ended </div><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="width: 66%; vertical-align: top;"></td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(restated)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Net loss</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(3,874</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(1,421</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Basic and diluted:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 14.4pt; font-size: 10pt;">Weighted-average shares of common stock oustanding used in computing basic and diluted net loss per share</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">20,574</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">19,225</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Basic and diluted net loss per share</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(0.19</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(0.07</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr></table><div style="clear: both;"><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;"><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">The calculation of diluted loss per share excludes 2,673,364 and 2,315,899 </font><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">shares of common stock issuable upon exercise of employee stock options </font><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">as of March 31, 2014 and 2013, respectively, and non-vested shares of common stock issuable upon exercise of 42,923 and 178,638 restricted stock units as of March 31, 2014 and 2013, respectively, because their inclusion would be anti-dilutive.</font></div></div>
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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">4.</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Fair Value of Financial Instruments</td></tr></table></div><div style="text-align: left; text-indent: 27pt;"><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, fair value is established, which categorizes the inputs used in measuring fair value as follows:</div><div> </div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Level 1—Quoted prices in active markets for identical assets or liabilities.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;"><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Level 2—</font>Significant observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Level 3—One or more significant inputs that are unobservable and supported by little or no market data.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and our revolving line of credit. We believe all of these financial instruments are recorded at amounts that approximate their current market values.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Our Level 1 assets consist of cash equivalents, which are primarily invested in money-market funds. These assets are classified as Level 1 because they are valued using quoted prices in active markets and other relevant information generated by market transactions involving identical assets and liabilities.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Our cash and cash equivalents include money-market funds for which the fair value was determined using Level 1 inputs and was $3.1 million as of March 31, 2014 and December 31, 2013. For cash and cash equivalents, accounts receivable, and accounts payable, the carrying amount approximates fair value because of the relative short maturity of those instruments.</div></div>
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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">5.</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Guarantees</td></tr></table></div><div style="text-align: left; text-indent: 27pt;"><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">In certain geographical regions, particularly Europe, we are sometimes required to issue performance guarantees to our customers as a condition of sale. These guarantees usually provide financial protection to our customers in the event that we fail to fulfill our delivery or warranty obligations. We secure these guarantees with standby letters of credit through our bank. At both March 31, 2014 and December 31, 2013, we had a $0.5 million performance guarantee outstanding to a customer that was secured with a letter of credit. This guarantee expired on April 17, 2014. There is no foreseeable risk that we will not be able to meet the performance obligations. Our restricted cash, as shown on the balance sheet, is related to this guarantee.</div></div>
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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;">Changes in our warranty liability are presented in the following table (in thousands):</div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;"> </div><div style="text-align: left; margin-left: 27pt;"><table border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="height: 12px;"><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at December 31, 2013</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">562</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Warranty expense</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">132</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Payments</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">(215</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Adjustments</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">9</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at March 31, 2014</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 78%; vertical-align: bottom;"><div> </div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Warranty liability included in accrued expenses</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Long-term warranty liability</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">26</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at March 31, 2014</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):</div><div style="text-align: left;"><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="6" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">Three Months Ended </div><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="width: 66%; vertical-align: top;"></td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(restated)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="vertical-align: top;"><div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Net loss</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(3,874</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(1,421</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Basic and diluted:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 14.4pt; font-size: 10pt;">Weighted-average shares of common stock oustanding used in computing basic and diluted net loss per share</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">20,574</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">19,225</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Basic and diluted net loss per share</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(0.19</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(0.07</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr></table></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;">Inventories consist of the following (in thousands, net of allowance):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Raw materials</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,018</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,521</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Work in process</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">3,105</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">2,429</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Finished goods</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,798</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">12,921</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">12,020</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr></table></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Accrued Expenses</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Accrued expenses consist of the following (in thousands):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Compensation, severance and benefits</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,914</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">2,685</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Warranty liability</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">529</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Taxes</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">424</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">483</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Professional fees</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">517</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">759</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Other</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,213</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,127</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,530</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,583</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr></table></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Accounts receivable consist of the following (in thousands):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Trade receivables</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,659</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,388</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Less: Allowance for doubtful accounts</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(261</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(313</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,398</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,075</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr></table></div>
2888000
2937000
333000
137000
0
2000
19452000
51000
53000
23145000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">1.</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Significant Accounting Policies</td></tr></table></div><div><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Organization and Basis of presentation</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Active Power, Inc. and its subsidiaries (hereinafter referred to as “we”, “us”, “Active Power” or the “Company”) design, manufacture, and sell flywheel-based uninterruptible power supply (“UPS”) products and modular infrastructure solutions (“MIS”). Our products and solutions are based on our patented flywheel and power electronics technology and are designed to ensure continuity for data centers and other mission critical operations in the event of power disturbances. We also offer services, including hardware and software maintenance, on all Active Power products, and other professional services such as assessment and implementation for our customers’ infrastructure projects. </div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Our products and solutions are designed to deliver continuous conditioned power during power disturbances and outages, voltage sags and surges, and provide ride-through power in the event of utility failure, supporting operations until utility power is restored or a longer term alternative power source, such as a diesel generator, is started. We sell our products globally through our direct sales force, manufacturer’s representatives, Original Equipment Manufacturer (“OEM”) channels and IT partners. Our current principal markets are the Americas, Europe, Middle East and Africa (“EMEA”), and Asia.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">We were founded as a Texas Corporation in 1992 and reincorporated in Delaware in 2000 prior to our initial public offering. Our headquarters are in Austin, Texas, with international offices in the United Kingdom, Germany and China.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;"><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from our audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting, and include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring items) necessary to present fairly the consolidated financial position of the Company and its consolidated results of operations and cash flows. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. </font><font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Please refer to our filing on Form 10-Q/A for the period ended March 31, 2013 for information regarding the restatement of our financial results for the period ended March 31, 2013.</font></div></div>
562000
488000
132000
215000
8000
0
0
0
108000
0
108000
0
0
0
0
0
0
0
0
34000
20306000
27349000
-271168000
19000
-215000
706000
290964000
704000
23000
-275042000
301886000
-222000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">6.</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Stockholders’ Equity</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">In March 2014, we sold approximately 3.7 million shares of common stock at a purchase price of $3.15 per share in a public underwritten offering made under a shelf registration statement that we had filed with the SEC and that had been declared effective in June 2013. This offering resulted in proceeds, net of expenses including underwriting discounts, commissions and fees of $0.8 million and professional service expenses of $0.2 million, of approximately $10.5 million. The proceeds from this offering will be used by us to help fund our working capital requirements and for general corporate purposes.</div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">2.</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Supplemental Balance Sheet Information</td></tr></table></div><div><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Restricted Cash</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Our restricted cash balance of $0.5 million as of March 31, 2014 consists primarily of secured performance and deposit guarantees given to customers. Upon satisfaction of these guarantees, the restriction on these funds will be released.</div><div><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Receivables</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Accounts receivable consist of the following (in thousands):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Trade receivables</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,659</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,388</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Less: Allowance for doubtful accounts</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(261</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">(313</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,398</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">9,075</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr></table><div style="clear: both;"><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">We estimate an allowance for doubtful accounts based on factors related to the credit risk of each customer. Historically, our credit losses have been minimal, primarily because the majority of our revenues were generated from large customers, including Caterpillar, Inc. (“Caterpillar”) and Hewlett Packard Corporation (“HP”).</div><div> </div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Inventories</div><div><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;">Inventories consist of the following (in thousands, net of allowance):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Raw materials</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,018</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,521</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Work in process</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">3,105</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">2,429</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Finished goods</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,798</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">12,921</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">12,020</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr></table><div style="clear: both;"><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Accrued Expenses</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Accrued expenses consist of the following (in thousands):</div><div><br /></div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">March 31, 2014</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: top;"> </td><td colspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: top;"><div style="text-align: center; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">December 31, 2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Compensation, severance and benefits</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,914</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">2,685</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Warranty liability</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">529</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Taxes</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">424</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">483</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Professional fees</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">517</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">759</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 66%; vertical-align: top;"><div style="text-align: left; text-indent: -7.2pt; font-family: ''Times New Roman'', Times, serif; margin-left: 7.2pt; font-size: 10pt;">Other</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,213</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">1,127</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: top;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 66%; vertical-align: top;"><div> </div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">4,530</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: top;"><div style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">5,583</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: top;"> </td></tr></table><div style="clear: both;"><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Warranty Liability</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Generally, the warranty period for our power quality products is 12 months from the date of commissioning or 18 months from the date of shipment from Active Power, whichever period is shorter. Occasionally, we offer longer warranty periods to certain customers. The warranty period for products sold to our primary OEM customer, Caterpillar, is 12 months from the date of shipment to the end-user, or up to 36 months from shipment from Active Power. This is dependent upon Caterpillar complying with our storage requirements for our products in order to preserve this warranty period beyond the standard 18-month limit. We provide for the estimated cost of product warranties at the time revenue is recognized and this accrual is included in accrued expenses and long-term liabilities on the accompanying consolidated balance sheet.</div><div style="text-align: left; text-indent: 27pt;"><br /></div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;">Changes in our warranty liability are presented in the following table (in thousands):</div><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; margin-left: 27pt; font-size: 10pt;"> </div><div style="text-align: left; margin-left: 27pt;"><table border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="height: 12px;"><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at December 31, 2013</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">562</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Warranty expense</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">132</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Payments</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">(215</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; margin-left: 9pt; font-size: 10pt;">Adjustments</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">9</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at March 31, 2014</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 78%; vertical-align: bottom;"><div> </div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Warranty liability included in accrued expenses</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Long-term warranty liability</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">26</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 78%; vertical-align: bottom;"><div style="text-align: left; font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">Balance at March 31, 2014</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: ''Times New Roman'', Times, serif; color: #000000; font-size: 10pt;">488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div style="text-align: left; margin-left: 27pt;"> </div><div style="text-align: left; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; font-weight: bold;">Revenue Recognition</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">In general, we recognize revenue when four criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. In general, revenue is recognized when revenue-generating transactions generally fall into one of the following categories of revenue recognition:</div><div><br /></div><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; align: right;">●</td><td style="text-align: justify; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top;">We recognize product revenue at the time of shipment for a significant portion of all products sold directly to customers and through distributors because title and risk of loss pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. If title and risk of loss pass at some other point in time, we recognize such revenue for our customers when the product is delivered to the customer and title and risk of loss have passed.  We may enter into bill-and-hold arrangements and when this happens delivery may not occur, but other criteria are reviewed to determine proper timing of revenue recognition.</td></tr></table></div><div><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; align: right;">●</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top;">We recognize installation, service and maintenance revenue at the time the service is performed.</td></tr></table></div><div> </div><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; align: right;">●</td><td style="text-align: justify; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top;">We recognize revenue associated with extended maintenance agreements (“EMAs”) over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as a current liability in the deferred revenue line of the consolidated balance sheet or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.</td></tr></table></div><div><br /></div><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; align: right;">●</td><td style="text-align: justify; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top;">We recognize revenue on certain rental programs over the life of the rental agreement using the straight-line method. Amounts collected in advance of revenue recognition are recorded as a current or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.</td></tr></table></div><div><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top; align: right;">●</td><td style="text-align: left; width: auto; font-family: ''Times New Roman'', Times, serif; font-size: 10pt; vertical-align: top;">Shipping costs reimbursed by the customer are included in revenue.</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">When collectability is not reasonably assured, we defer revenue and will recognize revenue on a cost recovery basis as payments are received.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Multiple element arrangements (“MEAs”) are arrangements to sell products to customers that frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of our CleanSource® UPS or CleanSource PowerHouse products, combined with one or more of the following products: design services, project management, commissioning and installation services, spare parts or consumables, and EMAs. Delivery of the various products or performance of services within the arrangement may or may not coincide. Certain services related to design and consulting may occur prior to delivery of product. Commissioning and installation typically take place within six months of product delivery, depending upon customer requirements. EMAs, consumables, and repair, maintenance or consulting services generally are delivered over a period of one to five years. In certain arrangements revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of future products and services.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">When arrangements include multiple elements, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition have been met. We establish the selling price of each element based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or Best Estimate of Selling Price (“BESP”) if neither VSOE nor TPE is available. We generally determine selling price based on amounts charged separately for the delivered and undelivered elements to similar customers in standalone sales of the specific elements. When arrangements include an EMA, we recognize revenue related to the EMA at the stated contractual price on a straight-line basis over the life of the agreement.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Any taxes imposed by governmental authorities on our revenue-producing transactions with customers are shown in our consolidated statements of operations on a net-basis; that is, excluded from our reported revenues.</div></div>
424000
483000
-301000
-2000
222000
215000
19225000
20574000
20574000
19225000
101000
82000
P36M
P12M
P12M
P5Y
1
1
4
P18M
P6M
P1Y
9000
7000
36000
3700000
800000
200000
0
3651000
10481000
0
10485000
4000
Restated