10. INDEBTEDNESS

Notes payable

In connection with the acquisition of the Andover, Massachusetts facility, the Company issued a promissory note with a principal amount of $5.0 million. The promissory note with interest on the outstanding balance at the lowest short-term applicable federal rate per annum will be paid in two installments on July 15, 2015 and January 15, 2016. As a result, the Company recorded $2.5 million as current portion of notes payable and $2.3 million as notes payable on the consolidated balance sheets as of December 31, 2014.

Long-term debt

The Company has two loans outstanding which bear interest at 4.75%, mature in February 2027 and are collateralized by the facility the Company owns in Corvallis, Oregon. At December 31, 2014, these loans had unpaid principal balances of $1.0 million and $0.6 million, for a total indebtedness of $1.6 million. For each the three years ended December 31, 2014, 2013 and 2012, the Company incurred interest expense on these loans of approximately $0.1 million.

The following table summarizes the total payments under the Company’s debt arrangements:


	Long-term Debt (1)		Notes Payable (1)		Total
	(in thousands)
2015	$	171	$	2,515	$	2,686
2016		171		2,504		2,675
2017		171		—		171
2018		171		—		171
2019		171		—		171
Thereafter		1,224		—		1,224

Total Payments	$	2,079	$	5,019	$	7,098

(1)	Interest is included