NOTE 7. ACCRUED EXPENSES

At June 30, 2017 and December 31, 2016, accrued expenses amounted to $4,437,601 and $5,518,823, respectively. Accrued expenses represent expenses that are owed at the end of the period and have not been billed by the provider or are estimates of services provided. The following table details the items comprising the balances outstanding at June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016

Accrued professional fees	$	317,033	$	220,140
PayOnline accrual		2,509,256		3,784,451
Accrued interest		165,082		183,778
Accrued bonus		1,179,563		774,485
Accrued franchise taxes		-		180,000
Accrued foreign taxes		177,516		131,810
Short term loan advances		55,714		174,376
Other accrued expenses		33,437		69,783
	$	4,437,601	$	5,518,823

The accrual for PayOnline at June 30, 2017 consists of a $1.1 million stock price guarantee obligation pursuant to a settlement agreement entered into in connection with the PayOnline acquisition. Additionally, the accrual includes a $1.4 million obligation for refundable merchant reserves assumed pursuant to an amendment to the PayOnline acquisition agreement. See Note 11 and Note 17 for additional information.

The accrual for PayOnline at December 31, 2016 consists of a $0.3 million earn-out accrual and a $2.0 million stock price guarantee obligation pursuant to a settlement agreement entered into in connection with the PayOnline acquisition. Additionally, the accrual includes a $1.4 million obligation for refundable merchant reserves assumed pursuant to an amendment to the PayOnline acquisition agreement.

Accrued bonuses are attributed to our TOT Group subsidiaries resulting from a discretionary bonus accrual for $1,179,563 and $774,485 at June 30, 2017 and December 31, 2016, respectively.