Accrued Expenses

12 Months Ended

Dec. 31, 2017

NOTE J – ACCRUED EXPENSES

Accrued expenses consist of the following:


	2017		2016
Compensation and bonuses	$	1,871,071	$	1,687,214
Professional services		329,640		544,412
Interest		4,056,337		2,391,857
Accrued insurance payable		249,247		393,715
Other operating		45,040		60,927

Total accrued expenses	$	6,551,335	$	5,078,125

Professional fees are mainly attributable to legal fees and related and other professional services in support of operations. Included in Professional fees are $227,000 of fees earned by Greg Stemm, former chief executive office and current chairman of the board, in accordance to his consulting service agreement executed in 2015. These fees are to be paid out monthly over 2018 and 2019. Mr. Stemm has an additional $80,509 of fees due in accounts payable at December 31, 2017. These fees will be remitted at a mutually agreeable time in the future. Compensation and incentives includes $1.3 million accrued incentive awards for the company employees for 2016 and prior and $0.5 million for 2017. However, the Board of Directors will only approve incentives to be paid when and if there is sufficient excess cash above and beyond normal operating means. Other operating expenses contain general items due resulting from general operations. Accrued interest is due to MINOSA, Epsilon, SMOM and Monaco per debt agreements described in NOTE I.