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Note 14 - Legal Proceedings
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Legal Matters and Contingencies [Text Block]
Note
14.
Legal Proceedings
 
 
The Company was involved in a lawsuit with a customer that alleged it did not warn or stop the processing of
$181,709
in fraudulent credit transactions from occurring.  The Company believes that the customer breached the Company’s processing agreement and that a security breach occurred because of the customer’s lack of controls over the login and password information utilized by the customer to process transactions resulting in the customer becoming a victim of a malware attack.  On
March
24,
2016,
the Company entered into a settlement agreement with Brightmoor Church and on
March
28,
2016,
the Company filed to dismiss the lawsuit for no consideration. The case was dismissed by Brightmoor Church on
April
4,
2016.
 
On
April
26,
2016,
Michael McFarland, derivatively on behalf the Company, re-filed a class-action lawsuit in United States District Court, District of Nevada that had been previously filed and dismissed. The suit alleges breach of fiduciary duties and unjust enrichment by the Company’s Board of Directors and certain executive officers and directors in connection with excessive and unfair compensation paid or awarded during fiscal years
2013
and
2014.
The lawsuit seeks disgorgement of excessive compensation as well as damages in an unspecified amount. In
July
2016,
the Company filed a motion to dismiss the case. In
January
2017,
the court granted a partial dismissal of the claims and suggested the plaintiffs re-file their petition. Subsequently, the Company re-filed a motion to dismiss the case.
 
On
March
1,
2016,
the Company was granted a temporary restraining order against Shelby Systems, Inc. by the District Court for the judicial district of Bexar County, Texas to prevent Shelby Systems from, among others, publishing false information about the Company and interfering with the Company’s customers after the termination of the Company’s referral agreement with Shelby Systems. On
July
5,
2016,
the Company agreed to dismiss the lawsuit with no further fees due Shelby Systems which netted the Company
$97,493
in income.
 
The Company believes the claims are without merit and it is unlikely that a loss will be incurred; therefore the Company has not accrued for a potential loss. However, the outcomes of the disputes are still uncertain and it is possible the Company
may
incur legal fees and losses in the future.
 
Aside from the lawsuits described above, the Company
may
be involved in legal matters arising in the ordinary course of business from time to time. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is or could become involved in litigation will not have a material adverse effect on the Company’s business, financial condition or results of operations.