Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, lease expense was approximately $21,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of March 31, 2022 were as follows:

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	46,383
Operating lease ROU assets – included in Other Assets	$	-
Total operating lease assets	$	46,383
Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	38,290
Long-term portion of ROU liabilities – included in Other liabilities		-
Total operating lease liabilities	$	38,290

The original weighted average lease term was 1.8 years and the weighted average discount rate used in the calculations were 13.55%.

The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2022:

2022	$	39,318
Total operating lease payments		39,318
Less: Imputed interest		(1,028	)
Total operating lease liabilities	$	38,290

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 agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our former CEO and Board Member along with his family.

The Company leases an office location in Bogota, Colombia. 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.