Accrued Expenses

12 Months Ended

Dec. 31, 2019

NOTE I – ACCRUED EXPENSES

Accrued expenses consist of the following:


	2019		2018
Compensation and incentives	$	2,821,349	$	2,567,732
Professional services		422,130		400,367
Deposit		450,000		—
Interest		9,494,391		6,508,621
Accrued insurance obligations		221,504		309,826
Other operating		13,341		18,000

Total accrued expenses	$	13,422,715	$	9,804,546

Professional fees are mainly attributable to legal fees and related and other professional services in support of operations, (See NOTE J). Compensation and

incentives

includes $2.6 million accrued incentive awards for the company employees for 2018 and prior and $0.2 million

additional for 2019. 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. During the quarter ended September 30, 2019, we received an earnest money deposit

of $450,000

from a company controlled by Greg Stemm, our past Chairman of the Board (see NOTE J for further information). The earnest money deposit relates to a draft agreement related to potential sale of a stake of our equity in CIC. This transaction has not yet been consummated. Accrued insurance obligations for the years ended December 31, 2019 and 2018 primarily consisted of directors and officers insurance obligations.