Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities

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Accrued Liabilities
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consisted of the following:
June 30,
2024		 December 31,
2023
Accrued compensation $ 275,966  $ 618,630 
Accrued severance 1,031,731  1,375,000 
Accrued professional fees 41,115  1,355,721 
Accrued insurance 370,834  876,150 
Accrued sales and property taxes 613,088  885,292 
Accrued royalties 325,000  250,000 
Accrued interest 2,121,612  - 
Accrued AHFS liability -  1,158,609 
Accrued lease termination costs 410,251  657,000 
Other accrued expenses 23,338  162,697 
Total accrued expenses $ 5,212,935  $ 7,339,099 
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 to be paid over 8 months commencing April 2024. See Note 8, "Leases" for further discussion. The accrual is recorded under accrued liabilities on the condensed consolidated balance sheet as of June 30, 2024.
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 on the condensed consolidated balance sheet as of June 30, 2024.