COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company.  

Leases

For the three months ended June 30, 2019, lease expense was approximately $236,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of June 30, 2019 were as follows:

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	243,105
Operating lease ROU assets – included in Other Assets		178,532
Total operating lease assets	$	421,637

Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	251,206
Long-term portion of ROU liabilities – included in Other liabilities		170,163
Total operating lease liabilities	$	421,369

The weighted average lease term remining is 1.5 years and weighted average discount rate is 13.55%.

The following table presents the maturity of the Company’s operating lease liabilities as of June 30, 2019:

Remainder of 2019	$	163,216
2020		183,519
2021		92,391
2022		46,196
Total operating lease payments		485,322
Less: Imputed interest		(63,953	)
Total operating lease liabilities	$	421,369

The Company leases approximately 2,100 square feet of office space in Plantation, Florida. Monthly rental is approximately $2,700 per month with a 3% increase on each annual anniversary. The Company will be responsible for their respective share of building expenses. The lease term is through August 2020.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $7,425. The agreement is month to month and can be terminated on 30 days’ notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our CEO and his family.

In October 2018, the Company a entered into an office lease in Alpharetta, Georgia, for approximately $3,800 per month through June 30, 2020 or through the termination of the master lease.

The Company leases an office location in Bogota, Colombia. In April 2017, MultiPay S.A.S. entered an office lease beginning April 22, 2017 for two years. The new lease cost is approximately $8,500 per month with an inflation adjustment after one year. The lease is automatically extended for one additional year unless written notice to the contrary is provided at least six months in advance. Furthermore, the Company leases an apartment at approximately $2,000 a month for one of the management team.

The Company also leases space for its operation in South Africa. The current lease is through June 30, 2022 and the approximate monthly rent is $8,000.