NOTE
6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts
payable and accrued expenses as of December 31, 2025 and 2024 consist of the following:
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSE
| | |
December 31, | | |
December 31, | |
| | |
2025 | | |
2024 | |
| | |
(000’s) | | |
(000’s) | |
| Accrued accounting and legal | |
$ | 705 | | |
$ | 391 | |
| Accrued consulting | |
| 406 | | |
| 171 | |
| Accrued interest | |
| 200 | | |
| - | |
| Accrued research and development expenses | |
| 169 | | |
| 351 | |
| Accrued office and other | |
| 38 | | |
| 439 | |
| Accrued insurance premium financing(1) | |
| 916 | | |
| - | |
| Accrued settlement expense | |
| - | | |
| 494 | |
| Accrued payroll | |
| 512 | | |
| 186 | |
| Other accrued expenses | |
| 6 | | |
| 20 | |
| Accounts payable and
accrued expenses | |
$ | 2,952 | | |
$ | 2,052 | |
| |
(1) |
On
August 27, 2025, the Company entered into a premium finance agreement for the policy period beginning August 3, 2025. The total premium
was $2,172,622, of which $544 was paid as a down payment and $1.6 million was financed. The agreement includes a finance charge of
$51, resulting in total payments of $1.7 million payable in nine monthly installments of $187 through May 2026 at an annual percentage
rate of 7.48%. |
The
financing obligation is secured by unearned premiums under the financed policies. As of December 31, 2025, the Company recorded prepaid
insurance of approximately $1.26 million and AFCO loan payable of approximately $0.9 million. Prepaid insurance is amortized over the
policy term, and the financing liability is reduced as payments are made. Interest expense is recognized using the effective interest
method.
|