Note 9 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Legal Matters and Contingencies [Text Block]

9.	COMMITMENTS AND CONTINGENCIES

Leases

–

We have noncancellable operating leases for offices and data centers expiring at various dates through

May 2022.

Future minimum lease payments are as follows:

Year ended December 31, (in thousands)
201 8	$	331
201 9		268
20 20		252
2021		178
2022		44
Total minimum lease payments	$	1,073

The above future minimum lease payments include

a total of

$64,000

payable to a related party. See Note

for further discussion.

The above

future minimum lease payments are inclusive of

$266,000

for operating leases for our offshore subsidiaries located in Bhopal, India and Mumbai, India. The rental expense for these facilities is classified as Research and Development expense as the facilities are utilized to house the software development and testing activities of our offshore subsidiaries, and as such, are

not

included in rental expense in general and administrative expenses.

Rental expense for leased facilities related to

domestic operations amounted to

$383,000

and

$351,000

in the years ended

December 31, 2017

and

2016,

respectively.

Legal Matters

–

There are

pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we

may

be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations.