|9 Months Ended|
Sep. 30, 2019
|Payables and Accruals [Abstract]|
5. ACCRUED EXPENSES
Accrued expenses consist of the following:
The Company provides a limited product warranty against defects in materials and workmanship for its Blink Network residential and commercial chargers, ranging in length from one to two years. The Company accrues for estimated warranty costs at the time of revenue recognition and records the expense of such accrued liabilities as a component of cost of sales. Estimated warranty costs are based on historical product data and anticipated future costs. Should actual cost to repair and failure rates differ significantly from estimates, the impact of these unforeseen costs would be recorded as a change in estimate in the period identified. For the nine months ended September 30, 2019, the change in reserve was approximately $15,000. Warranty expenses for the three and nine months ended September 30, 2019 and 2018 were $152,218 and $324,633 and $121,957 and $271,686, respectively, which has been included within cost of revenues on the condensed consolidated statements of operations. As of September 30, 2019, and December 31, 2018, the Company recorded a warranty liability of $25,000 and $9,700, respectively, representing the estimated cost to repair those chargers under warranty or host owned chargers for which the host has procured a maintenance contract. The Company records maintenance and repairs expenses for chargers it owns deployed at host locations as incurred. The Company estimates an approximate cost of $209,000 to repair those deployed chargers which it owns as of September 30, 2019.
The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef