Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

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Accrued Expenses
3 Months Ended
Mar. 31, 2017
Payables and Accruals [Abstract]  
Accrued Expenses
Note 4 — Accrued Expenses
 
Accrued expenses consisted of the following:
 
 
 
March 31, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Accrued Wages and Related Costs
 
$
136,988
 
$
119,472
 
Accrued Compensation
 
 
623,609
 
 
648,720
 
Accrued Professional Services
 
 
157,885
 
 
137,099
 
Accrued Warranty Obligations
 
 
54,592
 
 
41,132
 
Accrued Interest
 
 
262,899
 
 
375,560
 
Other Accrued Expenses
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
Total
 
$
1,245,973
 
$
1,331,983
 
 
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 year, compounding monthly. Those amounts were $333,609 as of March 31, 2017 and $358,720 as of December 31, 2016. The related interest amounts included in Accrued Interest was $156,914 and $141,645 respectively at March 31, 2017 and December 31, 2016. The 2016 bonuses included in Accrued Compensation were $290,000 as of March 31, 2017 and December 31, 2016.
 
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 quarter ended March 31, 2017 and December 31, 2016 were as follows:
 
Accrued Warranty Obligations at December 31, 2016
 
$
41,132
 
Reductions for Settling Warranties
 
 
(24,188)
 
Warranties Issued During Period
 
 
37,648
 
 
 
 
 
 
Accrued Warranty Obligations at March 31, 2017
 
$
54,592