Quarterly report pursuant to Section 13 or 15(d)

Accrued and Other Current Liabilities

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Accrued and Other Current Liabilities
9 Months Ended
Sep. 30, 2022
Payables and Accruals [Abstract]  
Accrued and Other Current Liabilities ACCRUED AND OTHER CURRENT LIABILITIES
Accrued and other current liabilities consisted of the following:

September 30, 2022 December 31, 2021
Accrued commissions $ 750,000  $ 4,000,000 
Compensation and related costs 4,367,022  4,030,085 
Accrued interest —  232,222 
Legal reserve (Note 15) 35,000,000  — 
Sales returns and allowances —  2,410,000 
Other 4,708,947  4,080,520 
Total accrued and other current liabilities $ 44,825,969  $ 14,752,827 

Warranties
We generally offer warranty coverage for our products. We accrue warranty related costs under standard warranty terms and for certain claims outside the contractual obligation period that we choose to pay as accommodations to our customers.
Provisions for estimated assurance warranties are recorded at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under its warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, towing and transportation costs, labor and travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved, and the extent of features/components included in product models. The Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign.
Although we believe the estimates and judgments discussed herein are reasonable, actual results could differ and we may be exposed to increases or decreases in our warranty accrual that could be material.

Warranty liability activity consisted of the following for the periods indicated:
Three Months Ended September 30, Nine Months Ended
 September 30,
2022 2021 2022 2021
Warranty liability, beginning of period $ 3,322,212  $ 4,866,213  $ 4,583,916  $ 5,400,000 
Warranty costs incurred (387,584) (379,215) (1,086,542) (1,113,002)
Provision for warranty 404,856  405,000  (157,890) 605,000 
Warranty liability, end of period $ 3,339,484  $ 4,891,998  $ 3,339,484  $ 4,891,998