ACCRUED LIABILITIES

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

ACCRUED LIABILITIES

NOTE 4 – ACCRUED LIABILITIES

Accrued liabilities as of March 31, 2022 and December 31, 2021 consist of the following (in thousands):

	March 31, 2022		December 31, 2021
Accrued interest – third parties	$	1,305	$	1,420
Accrued payroll		251		294
Accrued residuals		28		98
Anti-dilution provision		—		1,290
Other		237		34
Total accrued liabilities	$	1,821	$	3,136

Accrued Interest

Notes payable and convertible notes payable incur interest at rates between 10% and 15%, per annum.

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.

Anti-dilution provision

The agreement between the Company and Infinios, formerly NEC Payments B.S.C., has an anti-dilution provision. To remain in compliance, the Company accrued 73,848 shares of its common stock at $17.46 per share for a total value of $1.3 million as of December 31, 2021. Further, in connection with the capital raise discussed in Note 1, the Company accrued an additional 378,109 shares of its common stock at $2.20 per share for a value of $832 thousand or a total value of $2.1 million as of March 31, 2022. The 451,957 total shares were issued in May 2022, were classified as a long-term liability and treated as additional consideration to Infinios.