Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities

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Accrued Liabilities
 3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consisted of the following:
March 31,
2024		 December 31,
2023
Accrued compensation $ 425,186  $ 618,630 
Accrued severance 1,130,217  1,375,000 
Accrued professional fees 780,647  1,355,721 
Accrued insurance 970,840  876,150 
Accrued sales and property taxes 768,927  885,292 
Accrued royalties 287,500  250,000 
Accrued interest 1,466,433  - 
Accrued AHFS liability -  1,158,609 
Accrued lease termination costs 657,000  657,000 
Other accrued expenses 13,607  162,697 
Total accrued expenses $ 6,500,357  $ 7,339,099 
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 condensed consolidated balance sheet as of March 31, 2024.
The Hydronaut vessels 2 and 3 are reported as AHFS 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 AHFS 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. Hydronaut vessels 2 and 3 were sold on January 22, 2024, and the AHFS current asset of December 31, 2023 was offset with the AHFS 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 condensed consolidated balance sheet as of December 31, 2023.