Note 8 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

8. COMMITMENTS AND CONTINGENCIES

Leases

–

We have noncancellable operating leases for offices and data centers expiring at various dates through

June 2022.

Future minimum lease payments are as follows:

Year ended December 31, (in thousands)
2019	$	552
2020		500
2021		284
2022		64
Total minimum lease payments	$	1,400

The above future minimum lease payments include a total of

$484,000

payable to a related party. See Note

12

for further discussion.

The above future minimum lease payments include

$199,000

for operating leases for our offshore subsidiaries located in Bhopal, India and Mumbai, India. The rental expense for these facilities is classified as Research and Development expense as the facilities are utilized to house the software development and testing activities of our offshore subsidiaries, and as such, are

not

included in rental expense in general and administrative expenses.

Rental expense for leased facilities related to domestic operations amounted to

$382,000

and

$383,000

in the years ended

December 31, 2018

and

2017,

respectively.

Legal Matters –

There are

no

pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we

may

be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. We accrue for unpaid legal fees for services performed to date.