Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

Accrued Expenses
3 Months Ended
Mar. 31, 2020
Payables and Accruals [Abstract]  
Accrued Expenses





Accrued expenses consist of the following:


    March 31, 2020     December 31, 2019  
Accrued host fees   $ 111,597     $ 108,683  
Accrued professional, board and other fees     89,276       40,518  
Accrued wages     258,100       295,250  
Warranty payable     23,000       12,000  
Accrued income, property and sales taxes payable     423,761       417,669  
Other accrued expenses     11,231       23,428  
Total accrued expenses   $ 916,965     $ 897,548  




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 three months ended March 31, 2020, the change in reserve was approximately $11,000. Warranty expenses for the three months ended March 31, 2020 and 2019 were $114,909 and $88,872, respectively, which has been included within cost of revenues on the condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the Company recorded a warranty liability of $23,000 and $12,000, respectively, which represents 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 as incurred for chargers it owns and deploys at host locations. The Company estimates an approximate cost of $254,000 to repair those deployed chargers which it owns as of March 31, 2020.