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ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2018

NOTE 7. ACCRUED EXPENSES

At March 31, 2018 and December 31, 2017, accrued expenses amounted to $3,478,918, and $3,674,430, 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 costs to be incurred. The following table details the items comprising the balances outstanding as of March 31, 2018 and December 31, 2017.

	March 31, 2018		December 31, 2017
Accrued professional fees	$	241,281	$	241,281
PayOnline accrual		1,438,900		1,438,900
Accrued interest		145,264		145,264
Accrued bonus		1,036,726		1,249,852
Accrued foreign taxes		133,948		137,141
Other accrued expenses		482,799		461,992
	$	3,478,918	$	3,674,430

The accrual for PayOnline at March 31, 2018 and December 31, 2017 consists primarily of a $1.1 million obligation for refundable merchant reserves, assumed pursuant to an amendment to the PayOnline acquisition agreement.

Accrued interest at March 31, 2018 and December 31, 2017 is comprised primarily of loan costs associated with RBL notes as a result of the issuance of additional RBL notes.

We owed $133,948 and $137,141 in foreign taxes, which primarily consist of VAT and payroll taxes related to our International Transaction Solutions segment at March 31, 2018 and December 31, 2017, respectively.

On March 8, 2018, we paid our CEO the previously approved discretionary bonus of $300,000. This was offset by $86,374 additional bonuses accrued for the three months ended March 31, 2018.

Other accrued expenses, consisting primarily of $461,992, were primarily the result of various travel, professional and other expenses paid for by our CEO and charged on his personal credit cards and not yet paid off at March 31, 2018 and December 31, 2017 respectively.