Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

Accrued Expenses

6 Months Ended

Jun. 30, 2020

Note 6 – Accrued Expenses

Accrued expenses at June 30, 2020 (unaudited) and December 31, 2019 consisted of the following:

	June 30,		December 31,
	2020		2019
Accrued payroll and related liabilities	$	7,892,855	$	7,859,739
Accrued interest		6,838,360		4,905,749
Accrued legal		970,997		1,308,997
Other accrued expenses		567,627		509,469
Accrued expenses	$	16,269,839	$	14,583,954

Accrued payroll and related liabilities at June 30, 2020 included approximately $1.8 million for penalties associated with $5.4 million of accrued past due payroll taxes. Accrued interest at December 31, 2019 included accrued interest of $1.9 million on loans made to the Company by Mr. Diamantis, a former member of our Board of Directors. The increase in accrued interest is primarily due to interest associated with outstanding debentures. Debentures are more fully discussed in Note 8. On June 30, 2020, the Company exchanged the loans and the related accrued interest owed to Mr. Diamantis for shares of the Company’s Series M Preferred Stock as more fully discussed in Notes 7 and 13.