NOTE 6                  ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities at June 30, 2024 and  December 31, 2023 consisted of the following:

On July 1, 2022, the Board of Directors of the Company approved a performance objective based, cash incentive compensation plan for executives of the Company, with the potential to earn a performance bonus of up to 100% of base salary. For the three and six-months ended June 30, 2024, the Company expensed $103,125 and $412,500, respectively, for accrued incentive compensation in the condensed consolidated financial statements. For the three and six-months ended June 30, 2023, the Company expensed $656,081 and $888,112, respectively, for accrued incentive compensation. The compensation committee of the Board of Directors has not yet approved the 2023 incentive compensation and the estimated expense was reduced to $825,000 based on the progress assessed on the objectives, and accordingly, the Company reduced the 2023 incentive accrual by $507,169 in the second quarter of 2024. On April 28, 2023, the compensation committee of the Board of Directors approved executive incentive compensation of $970,000 for named executive officers other than the chief executive officer earned through December 31, 2022 and paid in the second and third quarters of 2023. As of June 30, 2024, accrued incentive compensation of $1,237,500 consists of the remaining $825,000 incentive accrual for 2023 expected to be paid in 2024 and $412,500 of the estimated 2024 incentive accrual expected to be paid in 2025. 

As of June 30, 2024, the short-term payable to research and development company of $410,139 and long-term payable of $740,285 consists of payments due under the Securities Purchase Agreement dated March 1, 2024, between the Company and research and development company (see Note 2, Investments). For the three and six-months ended June 30, 2024, the Company recognized interest expense of $33,104 and $44,467, respectively.