NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2014

Notes payable is summarized as follows at December 31, 2014 and 2013:

	December 31,
	2014		2013
(a) Promissory Note - bank	$	3,604,242	$	3,681,056
(b) Acquisition Note Payable		5,303,683		5,303,683
Ending Balance	$	8,907,925	$	8,984,739

(a)

On October 1, 2013, the funding of the purchase of our Tualatin, Oregon corporate offices from Barakel, LLC was completed. The purchase price for this asset was $5,050,000. The purchase was funded, in part, by a promissory note payable to Wells Fargo Bank in the amount of $3,693,750 plus interest at the rate of 2% above LIBOR, payable over ten years with a balloon payment due at maturity. It was secured by a deed of trust on the purchased property which was executed by CUI Properties, LLC and guaranteed by CUI Global, Inc. During 2014, the Company made principal payments of approximately $77 thousand against the mortgage promissory note payable. At December 31, 2014, the balance owed on the mortgage promissory note payable was $3,604,242, of which $80,746 and $3,523,496 were in current and long term liabilities, respectively.

(b)

In May 2013, the Company utilized funds from the equity sale to pay down $2,000,000 of principal owing on the note payable owed to International Electronic Devices, Inc. (formerly CUI, Inc.) associated with the acquisition of CUI, Inc. In conjunction with the 2013 principal payment, the promissory note terms were amended to extend the due date to May 15, 2020 and the interest rate was reduced to 5% per annum, with interest payable monthly and the principal due as a balloon payment at maturity. The note contains a contingent conversion feature, such that in the event of default on the note the holder of the note can, at the holders option, convert the note principal into common stock at $0.001 per share. As of December 31, 2014, the Company is in compliance with all terms of this promissory note and the conversion feature is not effective.

Schedule of Maturities of Long-term Debt

The following table details the maturity of the notes payable and working capital line of credit for CUI Global, Inc. as of December 31, 2014:

		2015			2016			2017			2018			2019			Thereafter
Notes Payable Maturities:		$	80,746		$	84,874		$	89,218		$	93,780		$	98,574		$	8,460,733