Note 14 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

14.

     Commitments and Contingencies

Fuel Tech is subject to various claims and contingencies related to, among other things, workers compensation, general liability (including product liability), and lawsuits. The Company records liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when

no

amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is

not

probable or the amount is

not

estimable, or both, if there is a reasonable possibility that a material loss

may

have been incurred.

From time to time we are involved in litigation with respect to matters arising from the ordinary conduct of our business. In the opinion of management, based upon presently available information, either adequate provision for anticipated costs have been accrued or the ultimate anticipated costs will

not

materially affect our consolidated financial position, results of operations, or cash flows.  We do

not

believe we have any pending loss contingencies that are probable or reasonably possible of having a material impact on our consolidated financial position, results of operations or cash flows.

During the

third

quarter of

2020,

the Company was notified of an equipment component failure at a foreign customer location.  The failure is being remedied under the warranty provision of the contract that is in place with the customer and supplier.  As of

March 31, 2021

 and

December 31, 2020,

respectively, a charge of

$50

and

$176

was recorded in the other accrued liability line of the consolidated balance sheets.  

Fuel Tech issues a standard product warranty with the sale of its products to customers. Our recognition of warranty liability is based primarily on analyses of warranty claims experienced in the preceding years as the nature of our historical product sales for which we offer a warranty are substantially unchanged. This approach provides an aggregate warranty accrual that is historically aligned with actual warranty claims experienced.

There was

no

change in the warranty liability balance included in the other accrued liabilities line of the Consolidated Balance Sheets during the

three

months ended

March 31, 2021

and

2020

. The warranty liability balance was

$159

at

March 31, 2021 

and

December 31, 2020.