Note 4 — Accrued Liabilities

Accrued liabilities consisted of the following:

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As of June 30, 2022, accrued expenses includes $3,962,162 related to the partial redemption of common units issued in connection with the acquisition of Orange142 (See Note 9 — Stockholders’ / Members’ Equity (Deficit) and Stock-Based Compensation Plans).  On July 28, 2022, the Company paid the $3,962,162 plus $36,473 of accrued interest in connection with the Second Amendment to the Redemption Agreement (the “Redemption Agreement Amendment”). (See Note 14 – Subsequent Events).

On July 10, 2019, Huddled Masses was named as a defendant in a lawsuit related to a delinquent balance to a vendor. On July 28, 2022, the Company entered into a settlement agreement with the vendor and agreed to pay a total of $515,096 with monthly installment payments of $21,500 over 24 months beginning September 1, 2022. (See Note 14 – Subsequent Events).