Annual report pursuant to Section 13 and 15(d)

Accrued Expenses

v3.3.1.900
Accrued Expenses
12 Months Ended
Dec. 31, 2015
Payables and Accruals [Abstract]  
Accrued Expenses
Note 8 — Accrued Expenses
 
Accrued expenses consisted of the following:
 
 
 
December 31,
 
December 31,
 
 
 
2015
 
2014
 
Accrued Wages and Related Costs
 
$
102,792
 
$
101,445
 
Accrued Compensation
 
 
358,719
 
 
428,786
 
Accrued Professional Services
 
 
89,000
 
 
45,000
 
Accrued Warranty Obligations
 
 
64,002
 
 
39,624
 
Accrued Interest
 
 
109,984
 
 
75,471
 
Other Accrued Expenses
 
 
10,000
 
 
8,741
 
 
 
 
 
 
 
 
 
Total
 
$
734,497
 
$
699,067
 
 
Included in the above accrued compensation amounts owed to officers of the Company for services rendered that remain outstanding. These amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per annum, compounding monthly. The amounts were $327,469 as of December 31, 2015 and $393,536 as of December 31, 2014. The related interest amounts included in Accrued Interest was $97,801 and $62,081 respectively at December 31, 2015 and December 31, 2014.
 
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 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 years ended December 31, 2015 and 2014 were as follows:
 
Accrued Warranty Obligations at December 31, 2013
 
$
31,619
 
Reductions for Settling Warranties
 
 
(96,460)
 
Warranty Issued During Year
 
 
104,465
 
 
 
 
 
 
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