Accrued expenses consisted of the following at:

 

		June 30,  2014			December 31,  2013
Accrued consulting fees		$	818,124		$	985,412
Accrued warranty liability			675,781			514,000
Accrued taxes payable			256,225			415,506
Accrued wages			25,691			23,800
Accrued fees			124,618			135,000
Accrued host fees			464,030			356,414
Due to JNS			—			48,797
Accrued interest expense- registration rights penalty			35,810			16,838
Accrued interest expense			22,385			2,699
Total		$	2,422,664		$	2,037,064

 

Consulting Fees

 

Accrued consulting fees represent contractual obligations to issue either shares of the Company’s common stock and or cash to consultants for services rendered. The Company is currently contesting whether the consultants performed in accordance with terms of their respective contracts and therefore has not issued the shares nor paid for the services.

 

Warranty

 

The Company provides a limited product warranty against defects in materials and workmanship for its Blink 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 failure rates differ significantly from estimates, the impact of these unforeseen costs would be recorded as a change in estimate in the period identified. The change in the carrying amount of accrued warranty liability, for the three months ended June 30, 2014 is as follows:

 

Balance as of December 31, 2013		$	514,000
Additional warranty liability accrued			438,076
Warranty costs incurred			(276,295)
Balance at June 30, 2014		$	675,781

 

No warranty costs were incurred during the quarter ended June 30, 2013 nor the six months ended June 30, 2013. Warranty expenses for the three and six months ended June 30, 2014 were $438,076 and $438,076, respectively.

  

Fees

 

Accrued fees consist of professional, board of director and network fees.