Quarterly report pursuant to Section 13 or 15(d)

Accounts Payable and Accrued Expenses

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

NOTE 15 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

 

Accounts payable and accrued expenses consist of the following:

 

    December 31, 2018     September 30, 2019  
              (Unaudited)  
Accounts payable   $ 6,644,000     $ 15,513,000  
Accrued warranty     422,000       337,000  
Accrued compensation     870,000       488,000  
Other current liabilities     91,000       245,000  
                 
    $ 8,027,000     $ 16,583,000  

 

I.D. Systems’ products are warranted against defects in materials and workmanship for a period of one to three years from the date of acceptance of the product by the customer. The customers may purchase an extended warranty providing coverage up to a maximum of 60 months. A provision for estimated future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2018 and September 30, 2019.

 

The following table summarizes warranty activity for the nine-month periods ended September 30, 2018 and 2019:

 

    Nine Months Ended September 30,  
    2018     2019  
             
Accrued warranty reserve, beginning of period   $ 535,000     $ 422,000  
Accrual for product warranties issued     70,000       204,000  
Product replacements and other warranty expenditures     (124,000 )     (165,000 )
Expiration of warranties     (90,000 )     (124,000 )
                 
Accrued warranty reserve, end of period   $ 391,000     $ 337,000