Notes payable is summarized as follows as of September 30, 2017 and December 31, 2016:

	September 30,		December 31,
(in thousands)	2017		2016
Mortgage note payable ⁽¹⁾	$	3,373	$	3,439
Acquisition Note Payable - related party ⁽²⁾		5,304		5,304
Ending Balance	$	8,677	$	8,743

⁽¹⁾

On October 1, 2013, the funding of the purchase of the Company’s Tualatin, Oregon corporate offices from Barakel, LLC was completed. The purchase price for this asset was $5.1 million. The purchase was funded, in part, by a promissory note payable to Wells Fargo Bank in the amount of $3.7 million 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 the nine months ended September 30, 2017, the Company made principal payments of $66 thousand against the mortgage promissory note payable. At September 30, 2017, the balance owed on the mortgage promissory note payable was $3.4 million, of which $93 thousand and $3.3 million were in current and long-term liabilities, respectively. See Note 14, Working Capital Line of Credit and Overdraft Facility, for more information on the Company's debt covenants.

⁽²⁾

The note payable to International Electronic Devices, Inc. (formerly CUI, Inc.) is associated with the acquisition of CUI, Inc. The promissory note is due May 15, 2020 and includes a 5% interest rate 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 holder’s option, convert the note principal into common stock at $0.001 per share. As of September 30, 2017, the Company is in compliance with all terms of this promissory note and the conversion feature is not effective.