Annual report pursuant to Section 13 and 15(d)

Accrued Expenses

v3.8.0.1
Accrued Expenses
12 Months Ended
Dec. 31, 2017
Payables and Accruals [Abstract]  
Accrued Expenses
Note 7 — Accrued Expenses
 
Accrued expenses consisted of the following: 
 
 
 
December 31,
2017
 
December 31,
2016
 
Accrued Wages and Related Costs
 
$
163,305
 
$
119,472
 
Accrued Compensation
 
 
327,469
 
 
648,720
 
Accrued Professional Services
 
 
531,728
 
 
137,099
 
Accrued Warranty Obligations
 
 
167,503
 
 
41,132
 
Accrued Interest
 
 
171,435
 
 
375,560
 
Other Accrued Expenses
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
Total
 
$
1,371,440
 
$
1,331,983
 
 
Included in the above accrued compensation are amounts owed to officers of the Company for services rendered that remain outstanding primarily for 2016 and prior years. The 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 amounts on the unpaid accrued officer compensation included in Accrued Interest were $171,435 and $141,645, respectively, at December 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 years ended December 31, 2017, 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
 
Reductions for Settling Warranties
 
 
(157,035)
 
Warranty Issued During Year
 
 
283,406
 
Accrued Warranty Obligations at December 31, 2017
 
$
167,503