Warranty Reserves

3 Months Ended

Mar. 31, 2015

Warranty Reserve

Warranty Reserve

13.   Warranty Reserve

The GenDrive contracts we enter into generally provide a one to two year standard product warranty to customers from date of installation, and the ReliOn contracts we enter into generally provide a two to five year product warranty. The Company currently estimates the costs of satisfying warranty claims based on an analysis of past experience and provides for future claims in the period the revenue is recognized.  Factors that affect the warranty liability include the number of installed units, estimated material costs, estimated travel, and labor costs.

The following table summarizes standard product warranty activity recorded during the three months ended March 31, 2015 and 2014:

	2015			2014
Beginning balance - January 1	$	1,311,442		$	1,608,131
Additions for current period deliveries	111,107			227,431
Reductions for payments made	(195,180		)	(357,391		)
Ending balance - March 31	$	1,227,369		$	1,478,171