Annual report pursuant to Section 13 and 15(d)

Accrued Expenses

v3.6.0.2
Accrued Expenses
12 Months Ended
Dec. 31, 2016
Payables and Accruals [Abstract]  
Accrued Expenses
Note 7 — Accrued Expenses
 
Accrued expenses consisted of the following: 
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
Accrued Wages and Related Costs
 
$
119,472
 
$
102,792
 
Accrued Compensation
 
 
648,720
 
 
358,719
 
Accrued Professional Services
 
 
137,099
 
 
89,000
 
Accrued Warranty Obligations
 
 
41,132
 
 
64,002
 
Accrued Interest
 
 
375,560
 
 
109,984
 
Other Accrued Expenses
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
Total
 
$
1,331,983
 
$
734,497
 
 
Included in the above accrued compensation are amounts owed to officers of the Company for services rendered that remain outstanding from prior to 2015, as well as 2016 declared bonuses. The pre-2015 amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per annum, compounding monthly. Those amounts were $358,720 as of December 31, 2016 and $358,719 as of December 31, 2015. The related interest amounts included in Accrued Interest was $141,645 and $97,801 respectively at December 31, 2016 and December 31, 2015. The 2016 bonuses included in Accrued Compensation were $290,000 as of December 31, 2016 and zero as of December 31, 2015.
 
The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally one year except in certain European countries where it is two years for some of our products. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its future warranty costs based on product-based historical performance rates and related costs to repair.
 
The changes in the Company’s accrued warranty obligations for the years ended December 31, 2016 and 2015 were as follows:
 
Accrued Warranty Obligations at December 31, 2014
 
$
39,624
 
Reductions for Settling Warranties
 
 
(67,858)
 
Warranty Issued During Year
 
 
92,236
 
 
 
 
 
 
Accrued Warranty Obligations at December 31, 2015
 
 
64,002
 
Reductions for Settling Warranties
 
 
(103,265)
 
Warranty Issued During Year
 
 
80,395
 
Accrued Warranty Obligations at December 31, 2016
 
$
41,132