Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

v3.10.0.1
Accrued Expenses
9 Months Ended
Sep. 30, 2018
Payables and Accruals [Abstract]  
Accrued Expenses
Note 6 – Accrued Expenses
 
Accrued expenses consisted of the following:
 
 
 
September 30,
 
 
December 31,
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Accrued Wages and Related Costs
 
$
628,130
 
 
$
163,305
 
Accrued Officer Compensation
 
 
-
 
 
 
327,469
 
Accrued Professional Services
 
 
226,348
 
 
 
531,728
 
Accrued Warranty Obligations
 
 
280,852
 
 
 
167,503
 
Accrued Interest
 
 
86,457
 
 
 
171,435
 
Other Accrued Expenses
 
 
20,833
 
 
 
28,331
 
 
 
 
 
 
 
 
 
 
Total
 
$
1,242,620
 
 
$
1,389,771
 
 
Included in Accrued Wages and Related Costs are remaining provisions for the costs related to the separation of two officers of Vuzix, the Vice President of Sales and its COO, which occurred in the second quarter of 2018. The accrued interest is related to previously unpaid officer compensation remaining at September 30, 2018 and December 31, 2017.
 
The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve (12) months except in certain European countries where it can be twenty-four (24) months for some consumer 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 nine months ended September 30, 2018 and the balance as of December 31, 2017 were as follows:
 
Accrued Warranty Obligation at December 31, 2017
 
$
167,503
 
Reductions for Settling Warranties
 
 
(259,905
)
Warranties Issued During Period
 
 
373,254
 
 
 
 
 
 
Accrued Warranty Obligations at September 30, 2018
 
$
280,852