ACCRUED LIABILITIES

6 Months Ended

Jun. 30, 2021

Other Liabilities Disclosure [Abstract]

ACCRUED LIABILITIES

NOTE 5 – ACCRUED LIABILITIES

Accrued liabilities as of June 30, 2021 and December 31, 2020 consist of the following:

	June 30, 2021		December 31, 2020
Accrued interest – related parties	$	378,650	$	1,039,977
Accrued interest – third parties		1,260,495		1,395,133
Accrued payroll		52,946		—
Accrued PTO		42,331		—
Accrued residuals		89,096		62,174
Accrued merchant equity		88,903		91,023
Other		38,675		44,027
Total accrued liabilities	$	1,951,096	$	2,632,334

Accrued Interest

Notes payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. The accrued interest in most cases is currently in technical default due to the notes being past their maturity date.

Accrued Residuals

The Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts.

Accrued Merchant Equity Liability

The Company provided all merchants the opportunity to earn shares of the Company’s common stock through their Merchant Equity Program (the “Program”). Under the Program, the merchant earned 1% of their total Visa/MasterCard volume processed during the first year of their contract. For example, if a merchant processes $1.0 million in credit card charges, the merchant will receive 10,000 shares of the Company’s common stock. The merchant must process with the Company for a period of three years for the shares to vest. All merchants became fully vested when the Company ended the program effective December 31, 2015.

The Company accounts for the value of the shares under the program as a sales incentive and thus the amounts in connection with the Program are recorded as a reduction to revenues. As of June 30, 2021, the Company has an obligation to issue approximately 750,000 shares of the Company’s common stock issuable under the Program.