Note 7 – Accrued Expenses

Accrued expenses at December 31, 2020 and 2019 consisted of the following:

Accrued payroll and related liabilities at December 31, 2020 and 2019 included approximately $2.5 million and $1.3 million, respectively, for penalties associated with approximately $4.4 million of accrued past due payroll taxes as of December 31, 2020.

As of December 31, 2020, we have deferred $4.4 million of HHS Provider Relief funds as more fully discussed in Note 1.

Accrued interest decreased by $0.2 million at December 31, 2020 as compared to December 31, 2019. On June 30, 2020, the Company exchanged loans and the related accrued interest owed to Mr. Diamantis, a former member of our Board of Directors, outstanding as of that date for shares of the Company’s newly-issued Series M Convertible Preferred Stock (the “Series M Preferred Stock”) as more fully discussed in Notes 8 and 14. On August 31, 2020, the Company exchanged certain debentures and associated accrued interest outstanding as of that date for shares of its newly-issued Series N Convertible Redeemable Preferred Stock (the “Series N Preferred Stock”) and the interest accrued on certain outstanding debentures was reduced as more fully discussed in Note 9. Accrued interest at December 31, 2020 and 2019 included accrued interest of $0.2 million and $1.9 million, respectively, on loans made to the Company by Mr. Diamantis.