ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2023

Accrued expenses and other liabilities at March 31, 2023 and December 31, 2022 consisted of the following:


	March 31, 2023		December 31, 2022
Accrued interest expense	$	127,717	$	43,398
Accrued payroll costs	559,058		627,210
Accrued executive bonuses	1,160,156		928,125
Accrued vendor liabilities	300,345		115,653
Other accrued expenses	5,431		5,211
Total accrued expenses	$	2,152,707	$	1,719,597

On July 1, 2022, the Board of Directors approved a performance objective based, cash incentive bonus for executives of the Company, with the potential to earn a performance bonus of up to 100% of base salary. The bonuses are discretionary and based on the progress and achievement of performance objectives as depicted in the strategic plan approved by the Board of Directors. The final assessment of progress and achievement requires the compensation committee’s approval. For the three months ended March 31, 2023 and 2022, the Company expensed $232,031 and $0, respectively, for the cash incentive bonus plan in the condensed consolidated financial statements (see Note 17, Subsequent Events).