Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

v3.10.0.1
Accrued Expenses
 6 Months Ended
Jun. 30, 2018
Payables and Accruals [Abstract]  
Accrued Expenses

4. ACCRUED EXPENSES

 

SUMMARY

 

Accrued expenses consist of the following:

 

    June 30, 2018     December 31, 2017  
    (unaudited)        
Accrued host fees   $ 1,254,762     $ 1,657,663  
Accrued professional, board and other fees     242,686       2,683,557  
Accrued wages     15,000       1,016,563  
Accrued commissions     500       883,763  
Warranty payable     143,000       171,000  
Accrued taxes payable     589,810       551,190  
Accrued payroll taxes payable     -       632,078  
Accrued interest expense     32,034       347,027  
Accrued lease termination costs     -       300,000  
Accrued settlement reserve costs     100,000       12,980,588  
Dividend payable     -       1,892,800  
Other accrued expenses     23,030       19,115  
Total accrued expenses   $ 2,400,822     $ 23,135,344  

 

ACCRUED PROFESSIONAL, BOARD AND OTHER FEES

 

Accrued professional, board and other fees consist of the following:

 

    June 30, 2018     December 31, 2017  
    (unaudited)        
Investment banking fees   $ -     $ 860,183  
Legal fees related to public offering     -       436,715  
Professional fees     94,949       684,673  
Board fees     147,737       608,945  
Other     -       93,041  
Total accrued professional, board and other fees   $ 242,686     $ 2,683,557  

 

On June 8, 2017, the Board approved aggregate compensation of $490,173 (compromised of $344,311 to be paid in cash and $145,862 to be paid in units consisting of shares of the Company’s common stock and warrants (with each such warrant having an exercise price equal to the price per unit of the units sold in the public offering) at a 20% discount to the price per unit sold in the public offering to be paid to members of the Board based on the accrued amounts owed to such Board members as of March 31, 2017. The compensation will be paid by the third business day following: (i) a public offering of the Company’s securities; and (ii) the listing of the Company’s shares of common stock on the NASDAQ or other national securities exchange. During the six months ended June 30, 2018, the Company paid $344,311 in cash and issued 80,704 shares of common stock with an issuance date fair value of $314,414. On April 9, 2018, the Company issued warrants to purchase 1,030,115 shares of common stock with an issuance date fair value of $247,360, which was included within additional paid- capital. See Note 8 – Stockholders’ Equity – Warrant Issuances.

 

See Note 11 – Commitments and Contingencies – Taxes.