Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

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 that the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company.

Executive Compensation

As of December 31, 2021, the Company had employment agreements with members of the management team providing base salary amounts and provisions for stock compensation, cash bonuses and other benefits to be granted at the discretion of the Board of Directors. Additionally, certain employment agreements include provisions for base salary, bonus amounts upon meeting certain performance milestones, severance benefits for involuntary termination from a change in control or other events as defined in their respective agreements. Additionally, the vesting of certain awards could be accelerated upon a change in control (as defined) or by action of the Board of Directors. As of December 31, 2021, the Company has an agreement with a former member of the management team to pay a total of approximately $279,600 on a monthly basis over the next eleven months.

Leases

The lease related balances included in the Consolidated Balance Sheet as of December 31, 2021 were as follows:

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	74,654
Operating lease ROU assets – included in Other Assets		-
Total operating lease assets	$	74,654
Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	69,812
Long-term portion of ROU liabilities – included in Other liabilities		-
Total operating lease liabilities	$	69,812

The weighted average lease term remining is less than one year and the weighted average discount rate is 13.55%.

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2021:

Years Ending December 31,
2022	$	72,852
Total operating lease payments		72,852
Less: Imputed interest		(3,040	)
Total operating lease liabilities	$	69,812

The Company rents office space in Long Beach, New York at a monthly cost of $2,500 (reduced from $5,000 in September 2020) in 2021 and 2020, respectively. 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 former CEO and Director and his family.

The Company leased office space in Plantation, Florida for a monthly rental of approximately $2,700 plus a share of building expenses. The lease ended in August 2020. The Company leased office space in Alpharetta, Georgia for a monthly rental of approximately $3,800 per month. The lease ended March 31, 2020.

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 the original lease date in 2017. 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 leased an apartment for a management team member for approximately $2,000 a month through April 2020. The Company did not renew the apartment lease after it ended in October 2020.

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. The Company plans to renew the lease of the current space or locate a similar facility.

Rent expense included in general and administrative on the Consolidated Statements of Operations for the years ended December 31, 2021 and 2020 was approximately $187,000 and $284,000, respectively.

Potential Obligation

The Company has entered into an agreement with a facial recognition software company for the grant of a perpetual license for commercial use (unless terminated for breach by either party). The initial payment under the license of $160,000 was paid in 2018 with two additional installments due on the first and second anniversary of the Effective Date of the arrangement amounting to $80,000 and $40,000, respectively. The Company has recorded the outstanding liability and it is included in “Other of Accounts Payable and Accrued Expenses”. See Note 4. The Company is in discussion with the provider with respect to functionality as well as the financial obligation.