Accrued Expenses

12 Months Ended

Dec. 31, 2018

NOTE I – ACCRUED EXPENSES

Accrued expenses consist of the following:


	2018		2017
Compensation and incentives	$	2,567,732	$	1,871,071
Professional services		400,367		329,640
Interest		6,508,621		4,056,337
Accrued insurance obligations		309,826		249,247
Other operating		18,000		45,040

Total accrued expenses	$	9,804,546	$	6,551,335

Professional fees are mainly attributable to legal fees and related and other professional services in support of operations. Included in Professional fees are $230,500 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 2019 and beyond. Mr. Stemm has an additional $80,509 of fees due in accounts payable at December 31, 2018. These fees will be remitted at a mutually agreeable time in the future. Compensation and incentives includes $1.8 million accrued incentive awards for the company employees for 2017 and prior and $0.8 million for 2018. 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 requirements. Other operating expenses contain general items due resulting from general operations. Accrued interest is due to several lenders per debt agreements described in NOTE H.