Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

Accrued Expenses
9 Months Ended
Sep. 30, 2019
Payables and Accruals [Abstract]  
Accrued Expenses





Accrued expenses consist of the following:


    September 30, 2019     December 31, 2018  
Accrued taxes payable   $ 613,245     $ 556,211  
Accrued host fees     57,011       54,527  
Accrued professional, board and other fees     84,500       159,500  
Accrued wages     233,961       493,069  
Accrued commissions     -       22,300  
Warranty payable     25,000       9,700  
Accrued interest expense     -       32,034  
Inventory in transit     -       195,480  
Other accrued expenses     22,414       22,100  
Total accrued expenses   $ 1,036,131     $ 1,544,921  




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.