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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.