Note 2 - Option Agreement

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Other Income and Other Expense Disclosure [Text Block]

2. OPTION AGREEMENT

On

March 20, 2012,

Intelligent Systems Corporation entered into an Option Agreement (the “Option Agreement”) with Central National Bank, a national banking association (“CNB”) granting to CNB the option to acquire from ISC

five

percent of ISC’s equity ownership in CoreCard at an exercise price of

one million

dollars. The option expired, unexercised, on

December 31, 2017.

We entered into the Option Agreement in recognition of CNB’s cooperation and contribution to building CoreCard’s card processing business. During the year ended

December 31, 2012,

we recorded an expense of

$18,000

in the marketing category and carried a long-term liability of

$18,000

to recognize the financial impact of the Option Agreement. Upon expiration of the option at

December 31, 2017,

the liability of

$18,000

was reversed as income in the marketing category and the liability recorded at

December 31, 2017

is

$0.