Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2025

Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities

Note 5 – Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at June 30, 2025 and December 31, 2024 were as follows:

	June 30, 2025		December 31, 2024
Accounts payable and accrued liabilities	$	765,574	$	827,025
Cash overdraft		7,110		-
Payroll tax liabilities		2,561,164		1,729,120
Accrued interest payable		1,211,258		972,510
Accounts payable and accrued liabilities	$	4,545,106	$	3,528,655

As of June 30, 2025, the Company has accrued payroll and related payroll tax liabilities totaling $2,561,164. This amount includes $1,802,770 of payments made that were remitted on a timely basis to the appropriate taxing authorities during fiscal 2024, but subsequently refunded in error during the current year.

In March 2025, the Company became aware of this error. In response, management has initiated a review of its payroll tax processes and is engaging external advisors to help address the non-compliance and communicate with the relevant tax authorities. The Company anticipates reaching an agreement on a repayment plan.

Because of this non-compliance, the Company may incur penalties and interest, which at this time, we are unable to estimate.

Sentinel Holdings Ltd. 10-Q