Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities and Other and Warranty Liability

Accrued Liabilities and Other and Warranty Liability
3 Months Ended
Mar. 31, 2022
Payables and Accruals [Abstract]  
Accrued Liabilities and Other and Warranty Liability ACCRUED LIABILITIES AND OTHER AND WARRANTY LIABILITY
Accrued liabilities and other current liabilities consisted of the following:

March 31, 2022 December 31, 2021
Accrued commissions $ 2,750,000  $ 4,000,000 
Compensation and related costs 2,334,887  4,030,085 
Accrued interest 293,333  232,222 
Sales return reserve —  2,410,000 
Other 4,567,492  4,080,520 
Total accrued liabilities and other $ 9,945,712  $ 14,752,827 
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 the warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, towing and transportation costs, labor and sometimes 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:

Three Months Ended March 31,
2022 2021
Warranty liability, beginning of period $ 4,583,916  $ 5,400,000 
Warranty costs incurred (350,953) (244,957)
Provision for warranty 82,500  100,000 
Warranty liability, end of period $ 4,315,463  $ 5,255,043