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Product Warranty
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Product Warranties Disclosures [Abstract]    
PRODUCT WARRANTY

NOTE 6. PRODUCT WARRANTY

 

Movement of product warranty was as follows:

 

   Three Months Ended
March 31,
 
   2021   2022 
Balance at beginning of the period  $19,356   $58,458 
Provided during the period   909    2,685 
Utilized during the period   (1,160)   (9,712)
Balance at end of the period  $19,105   $51,431 

 

   December 31,
2021
   March 31,
2022
 
Product warranty – current  $20,922   $17,420 
Product warranty – non-current    37,536    34,011 
Total  $58,458   $51,431 

11. PRODUCT WARRANTY

 

Movement of product warranty was as follows:

 

   Year Ended December 31, 
   2019   2020   2021 
Balance at beginning of the period  $16,565   $18,416   $19,356 
Provided for new sales during the period   3,501    3,477    6,447 
Provided for pre-existing legacy product   
    
    46,485 
Utilized during the year   (1,650)   (2,537)   (13,830)
Balance at end of the year  $18,416   $19,356   $58,458 
Product warranty – current  $3,723   $4,296   $20,922 
Product warranty – non-current   14,693    15,060    37,536 

 

Warranty provisions are based upon historical experience. Changes in provisions related to pre-existing legacy products were made based on actual claims and intensive testing and analysis on the legacy products. In 2021, as a result of the increases in the repairing cost and frequency of claims with respect to a legacy product sold in 2017 and 2018, the Company conducted intensive experiments and a root cause analysis, which was completed in October 2021. The Company concluded that a component purchased from a supplier was not meeting the Company’s performance standards. As a result, the Company expects that the impacted legacy products sold will need to be replaced before the expiration of the warranty term. This reassessment resulted in a change in estimate for additional accrual of $46,485 for such legacy product sold. As the component was not incorporated into other products, no additional accrual was made to other existing products sold. The Company is in negotiation with the supplier for compensation and will take legal action if necessary.