Accrued Expenses

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accrued Expenses

NOTE L – ACCRUED EXPENSES

Accrued expenses consist of the following:

	2015		2014
Compensation and bonuses	$	866,551	$	1,451
Vessel operations		1,528,478		1,525,513
Professional services		942,604		465,000
Interest		828,888		—
Accrued insurance payable		—		304,584
Other operating		98,935		91,414
Total accrued expenses	$	4,265,456	$	2,387,962

Vessel operations relates to expenditures required to operate our ships such as fuel, repair and maintenance, port fees and charter related. Professional fees are mainly attributable to legal fees and related and other professional services in support of operations. Included in Professional fees are $716,009 of fees earned by Greg Stemm, former chief executive office and current chairman of the board, in accordance to his consulting service agreement executed in 2015. These fees are to be paid out monthly over 2016, 2017 and 2018. Compensation and bonus includes $0.8 million accrued incentive awards for the company employees. However, the Board of Directors will only approve bonuses to be paid when and if there is sufficient excess cash above and beyond normal operating means. Other operating expenses contain general items related to, but not limited to marketing and insurance. Accrued interest is due to MINOSA per the promissory note described in NOTE K.