NOTE 14 - COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Operating Leases:

The Company has entered into office leases at various locations as follows:

Date	Term (Years)	Location	Expiration
09/2012	7	NJ	10/31/2019
06/2013	5	MI	10/31/2018
07/2014	3	GA	08/31/2017
06/2015	7	IL	12/31/2022

The Company also added facilities (in CA, FL and NY) on a month-to-month basis. As of September 30, 2016, the Company’s future minimum lease payments are as follows:

Year Ending September 30,	Amount
2017	$	162,871
2018		122,521
2019		59,533
2020 and beyond		28,662
	$	373,587

Rent expense for the nine months ended September 30, 2016 and 2015 were $313,415 and $301,915, respectively, and for three months ending September 30, 2016 and 2015 were $197,863 and $127,979, respectively.

Capital Lease:

Effective February 1, 2015, the Company entered into a business lease agreement for computer hardware equipment with monthly payments of $13,926 for a term of three years with a $1.00 end-of term purchase option.

In accordance with FASB ASC 840, Leases, the Company has recorded this capital lease asset and capital lease obligation initially at an amount equal to the present value at the beginning of the lease term of minimum lease payments. As of September 30, 2016, the equipment of $458,701 less accumulated depreciation of $160,545 had a net book value of $298,156. As of December 31, 2015, the equipment of $458,701 less accumulated depreciation of $91,740 had a net book value of $366,961.

The following is a schedule of future minimum lease payments as of September 30, 2016.

Year ending September 30,
2017	$	181,040
2018	$	27,853
Total minimum lease payments	$	208,893
Less: amount representing interest	$	(7,078	)
Present value of net minimum lease payments, presented as current and non-current obligations under capital leases of $174,166 and $27,649, respectively.	$	201,815

Legal:

On May 13, 2014, a claim was filed against the Company in the Superior Court of California, County of Santa Clara arising from a collections dispute related to vendors of an acquisition target of the Company. All plaintiffs were vendors of the target and are seeking recovery of approximately $222,000. The Company is vigorously defending its position and it is expected that enforcement of the judgment will remain stayed pending a ruling from the appellate court. The case has been fully briefed at the appellate level but no hearing has been set. In response to the claim, the Company has recorded an accrual in the amount of $123,000.

In the normal course of business, the Company may become subject to claims or assessments. Such matters are subject to many uncertainties, and outcomes, which are not readily predictable with assurance.