Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

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Accrued Expenses
3 Months Ended
Mar. 31, 2018
Payables and Accruals [Abstract]  
Accrued Expenses
Note 5 — Accrued Expenses
 
Accrued expenses consisted of the following:
 
 
 
March 31,
2018
 
December 31,
2017
 
 
 
 
 
 
 
 
 
Accrued Wages and Related Costs
 
$
259,910
 
$
163,305
 
Accrued Officer Compensation
 
 
235,469
 
 
327,469
 
Accrued Professional Services
 
 
185,400
 
 
531,728
 
Accrued Warranty Obligations
 
 
198,016
 
 
167,503
 
Accrued Interest
 
 
160,649
 
 
171,435
 
Other Accrued Expenses
 
 
36,488
 
 
28,331
 
 
 
 
 
 
 
 
 
Total
 
$
1,075,932
 
$
1,389,771
 
 
Included in the above accrued officer compensation are amounts owed to officers of the Company for services rendered prior to 2016. The amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per year, compounding monthly. Accrued interest at March 31, 2018 and December 31, 2017 is related to interest amounts accrued upon the unpaid officer compensation.
 
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 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 three months ended March 31, 2018 and the balance as of December 31, 2017 were as follows:
 
Accrued Warranty Obligations at December 31, 2017
 
$
167,503
 
Reductions for Settling Warranties
 
 
(92,547)
 
Warranties Issued During Period
 
 
123,060
 
 
 
 
 
 
Accrued Warranty Obligations at March 31, 2018
 
$
198,016