Annual report pursuant to Section 13 and 15(d)

Accrued Expenses and Other Current Liabilities

v3.19.1
Accrued Expenses and Other Current Liabilities
12 Months Ended
Dec. 31, 2018
Accrued Liabilities [Abstract]  
Accrued Expenses and Other Current Liabilities

Note 5 — Accrued Expenses and Other Current Liabilities

 

Accrued expenses and other current liabilities consisted of the following as of:

 

    December 31, 2018     December 31, 2017  
             
Bonus   $ 873,621     $ 459,451  
Payroll     145,937       125,088  
Vacation     38,763       28,722  
EsoCheck™ License Agreement fee     222,553        
Fees - board of directors           82,500  
Operating expenses     49,872       11,203  
Total accrued expenses and other current liabilities   $ 1,330,746     $ 706,964  

 

The accrued bonus as of December 31, 2018 and 2017 represents the guaranteed bonus payment to the Company’s Chief Executive Officer (“CEO”) under the CEO Employment Agreement and discretionary bonus payments to the CEO and other employees.

 

The Company’s CEO agreed to the payment of a reduced salary of $4,200 per month for the period July 1, 2017 through January 31, 2018, with such earned but unpaid salary to be paid to the CEO only upon the Senior Secured Note first being repaid-in-full. The earned but unpaid salary has been recognized as an accrued salary expense liability of $145,937 and $125,088 as of December 31, 2018 and December 31, 2017, respectively. The accrued CEO payroll was subsequently paid in January 2019 upon the Senior Secured Note being repaid-in-full on December 27, 2018 concurrent with the issue of the Senior Secured Convertible Note. See Note 12 — Debt, for a discussion of each of the “Senior Secured Convertible Note” and the “Senior Secured Note”.

 

The unpaid board of director fees as of December 31, 2018, of $61,250 included in accounts payable, and the fees as of December 31, 2017 included in accrued expense, each represent amounts payable to all non-executive members of the board of directors, including, as of December 31, 2017, $10,000 payable to each of two former board members each previously deemed to be a related party.

 

The EsoCheck™ License Agreement fee is the remaining unpaid balance of such fee incurred in connection with the EsoCheck™ License Agreement, as discussed in Note 7, Agreements Related to Acquired Intellectual Property Rights.