The table below shows the status of transaction settlements:

	December 31, 2019			December 31, 2018
Settlement Processing Assets:
Cash held for settlements	$	763,110		$	239,124
Cash due from gateways		3,073,183			291,112
Amount due from gateways and merchants – hold and fees		4,824,223			-
Chargeback allowances (1)		-			(139,374	)
Reserves (2)		5,353,661			474,224
Total before allowance for uncollectable		14,014,177			865,086
Allowance for uncollectable – hold and fees		(5,587,333	)		-
Total – settlement processing assets	$	8,426,844		$	865,086

Settlement Processing Liabilities:
Settlement liabilities to merchants		14,014,177			786,425
Settlement liabilities to ISOs		-			107,342
Refund allowances (3)		-			(28,681	)
Totals	$	14,014,177		$	865,086

(1) During 2018, the Company absorbed all chargeback costs as a cost of services provided – essentially a sales promotion tool to onboard customers in 2018. The Chargeback Allowance shown in the table above reflects our estimate of potential chargebacks that are likely to be realized in 2019, which are connected to sales transactions that occurred in 2018. The allowance decreases the amount that GreenBox is owed from the Gateways we use in our proprietary ecosystem. In 2019, the actual dollar amount of chargebacks will be reconciled with our allowance.

(2) Reserves are essentially an escrow fund that protects a gateway/card issuer from financial losses. In the Reserve, funds are held until chargeback time limits expire.

(3) The Refund Allowance shown in the table above reflects our estimate of potential refunds that may be realized in 2019, which are connected to sales transactions that occurred in 2018. The allowance decreases the amount that GreenBox owes to Merchants using our proprietary ecosystem. In 2019, the actual dollar amount of refunds with be reconciled with our allowance.