Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities

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Accrued Liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consisted of the following:
December 31,
2023		 December 31,
2022
Accrued compensation $ 618,630  $ 1,501,736 
Accrued severance 1,375,000  - 
Accrued professional fees 1,355,721  794,021 
Accrued insurance 876,150  590,936 
Accrued sales and property taxes 885,292  171,660 
Accrued royalties 250,000  - 
Accrued AHFS liability 1,158,609  - 
Accrued lease termination costs 657,000  - 
Other accrued expenses 162,697  84,624 
Total accrued expenses $ 7,339,099  $ 3,142,977 
The Hydronaut vessels 2 and 3 are reported as assets held for sale at December 31, 2023 at an amount based on an offer for sale. The offer for sale contains both cash and non-cash considerations. The assets held for sale liability of $1,158,609 includes the non-cash consideration, which are purchase invoices submitted by the purchaser that will be foregone upon closing of the sale. The Hydronaut vessels 2 and 3 were sold on January 22, 2024 and the asset held for sale current asset was offset with the asset held for sale liability and cash received.
In December 2023, the Company started negotiations to exit a lease for office space. The negotiations completed in March 2024 with the Company agreeing a settlement figure with the lessor of $657,000. See Note 8, "Leases" for further discussion. The accrual is recorded under accrued liabilities on the consolidated balance sheet as of December 31, 2023.
In April 2023, the Company received correspondence from the State of Texas assessing a sale and use tax liability of $575,602. The sales and use tax audit is currently ongoing. The accrual is recorded under accrued liabilities of the consolidated balance sheet as of December 31, 2023.