Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

v3.5.0.2
Accrued Expenses
6 Months Ended
Jun. 30, 2016
Payables and Accruals [Abstract]  
Accrued Expenses
Note 4 — Accrued Expenses
 
Accrued expenses consisted of the following:
 
 
 
June 30, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Accrued Wages and Related Costs
 
$
84,538
 
$
102,792
 
Accrued Compensation
 
 
358,719
 
 
358,719
 
Accrued Professional Services
 
 
79,208
 
 
89,000
 
Accrued Warranty Obligations
 
 
55,997
 
 
64,002
 
Accrued Interest
 
 
326,600
 
 
109,984
 
Other Accrued Expenses
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
Total
 
$
915,062
 
$
734,497
 
 
Included in the above accrued compensation are amounts owed to officers of the Company for services rendered that remain outstanding. The amounts were $327,469 as of June 30, 2016 and December 31, 2015. The related interest amounts on the officer’s accrued compensation included in Accrued Interest were $115,051 and $97,801 respectively as of June 30, 2016 and December 31, 2015. These amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per year, compounding monthly. The related interest expense amounts for the six months ended June 30, 2016 and 2015 were $17,249 and $18,171 respectively. 
 
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. 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 six months ended June 30, 2016 were as follows:
 
Accrued Warranty Obligations at December 31, 2015
 
$
64,002
 
Reductions for Settling Warranties
 
 
(31,173)
 
Warranties Issued During Period
 
 
23,168
 
 
 
 
 
 
Accrued Warranty Obligations at June 30, 2016
 
$
55,997