NOTE

ACCRUED EXPENSES

December 31, 2019

and

December 31, 2018,

accrued expenses amounted to approximately

$1.8

and

$2.5

million, respectively. Accrued expenses represent expenses that are owed at the end of the period or are estimates of services provided that have

not

been billed by the provider or vendor. The following table reflect the balances outstanding as of

December 31, 2019

and

December 31, 2018.

	December 31, 2019		December 31, 2018
Accrued professional fees	$	276,239	$	174,915
PayOnline accrual		69,039		1,126,273
Accrued interest		43,021		108,202
Accrued bonus		1,318,060		1,157,556
Accrued foreign taxes		2,064		(45,952	)
Other accrued expenses		91,921		14,953
Total accrued expenses	$	1,800,344	$	2,535,947

October 25, 2016,

we entered into an amendment to the PayOnline acquisition agreement with the sellers, in which we agreed to assume

$1,433,475

of certain refundable merchant deposit reserves, and accordingly, recorded the liability. The accrual for PayOnline at

December 31, 2018

consisted of an obligation of approximately

$1.1

million for refundable merchant reserves assumed pursuant to this amendment to the PayOnline acquisition agreement. Management determined that any potential future claims from these certain merchants for these reserves assumed with the amendment are remote, and as such, reversed the amounts which remained in accrued expenses and recognized other income of approximately

$1.1

million on the accompanying statement of operations during the year ended

December 31, 2019.

Included in accrued bonus are non-discretionary compensation due to our Chairman and CEO approximating

$979,000

and

$866,00

December 31, 2019

and

2018,

respectively, and approximately

$339,000

and

$291,000

December 31, 2019

and

2018

for discretionary performance bonuses due to certain employees.