NOTE 16 - FOREIGN OPERATIONS

6 Months Ended

Jun. 30, 2016

Disclosure Text Block Supplement [Abstract]

NOTE 16 – FOREIGN OPERATIONS

The Company’s headquarters and operations are located in the United States. However, the Company does have a key supplier and subcontractor known as Quadrant 4 Software Solutions (Pvt.) Limited located in India (“Q4 India”). The Company has no ownership, directly or indirectly, in Q4 India. On May 25, 2016, Stonegate Holdings sold its 100% interest in Q4 India to Info-drive Analytics (Mauritius) Limited, which is also unrelated to the Company either directly or indirectly. The Company also markets its activities through Q4 India. Q4 India billed the Company $2,040,000 and $2,070,000 for the three months ended June 30, 2016 and 2015, respectively. Q4 India billed the Company $5,225,000 and $3,975,000 for the six months ended June 30, 2016 and 2015, respectively. The Company owed Q4 India $1,950,000 and $700,000 as of June 30, 2016 and December 31, 2015, respectively.

The Company has entered into a long term master services agreement with its India key supplier and subcontractor that ends on December 31, 2018 with customary options for termination with a 30 day notice. The India key supplier and subcontractor provides captive services to the Company and is paid on a cost plus basis. The Company is the sole customer of the key supplier and subcontractor. The Company paid the following amounts to the India key supplier and subcontractor for providing different classes of services:

	Six Months Ending		Six Months Ending
Description of Cost	June 30, 2016		June 30, 2015

Client delivery and support	$	2,608,280	$	1,535,400
Platform development (capitalized by the Company)		1,335,000		1,170,000
Sales support		101,790		88,040
Back office support		1,049,890		984,830
Research & Development		130,040		196,730
	$	5,225,000	$	3,975,000