Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13 – 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 nine months ended September 30, 2021, lease expense was approximately $141,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of September 30, 2021 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	99,667
Operating lease ROU assets – included in Other Assets	$	-
Total operating lease assets	$	99,667

Liabilities:  

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	100,290
Long-term portion of ROU liabilities – included in Other liabilities		-
Total operating lease liabilities	$	100,290

The weighted average lease of the remaining term is 1.0 year or less and weighted average discount rate used in the calculations was 13.55%.

The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2021:

Remainder of 2021	$	34,692
2022		66,564
Total operating lease payments		101,256
Imputed interest		(966	)
Total operating lease liabilities	$	100,290

The Company rents office space in Long Beach, New York at a monthly cost of $2,500. The agreement is month to month and can be terminated on 30 days’ notice.

The Company leased an office location in Bogota, Colombia with a base rent of approximately $8,500 per month which was adjusted for inflation when compared to its initial lease date in 2017. The lease expired in April 2021. In April 2021, MultiPay entered into a six-month lease for a monthly rental of approximately $1,375 which terminated in September 2021. In October 2021, MultiPay entered into a one-year lease for approximately $2,900 per month.

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.