Quarterly report pursuant to Section 13 or 15(d)

3. Accrued Expenses and Accounts Payable

3. Accrued Expenses and Accounts Payable
3 Months Ended
Mar. 31, 2018
Payables and Accruals [Abstract]  
Accrued Expenses and Accounts Payable

Accrued Expenses


On April 1, 2017, the Company executed a separation agreement and release effective with the Company’s Chief Executive Officer (CEO). As part of the agreement, the Company agreed to pay the CEO $580,000 in severance, payable in equal installment over 24 months. In addition, the Company also agreed to continue paying certain expenses for the CEO for 24 months with an estimated cost of $44,000. As a result, the Company accrued the entire $624,000 as of March 31, 2017 which was also reported as part of Operating expenses in the accompanying consolidated statements of operations. As of March 31, 2018 and December 31, 2017, $377,000 and $390,000, respectively, was due to our former CEO which was reported as part of Accrued expenses and accounts payable in the accompanying consolidated balance sheet.


Accrued Expenses and Accounts Payable – Related Parties


Accrued expense – related parties consists accrued salaries of officers and fees due to members of the Board of Directors. As of March 31, 2018, and December 31, 2017, accrued expenses and accounts payable to related parties amounted to $37,000 and $31,000, respectively.