NOTE 5 – DEBT

NOTES PAYABLE

At December 31, 2012, notes payable consisted of approximately $32,000 of borrowings for the purchase of equipment. These notes, which were paid in full during the year ended December 31, 2013, bore interest at rates ranging from 8.0% to 9.5% per year and matured in August 2013.

CAPITAL LEASE OBLIGATIONS

The Company has equipment under six capital lease obligations expiring at various times through June 2016. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair values of the assets.

At December 31, 2013, future minimum payments under these capital leases are:

Year Ending	Amount
December 31	(in thousands)
2014	$	198
2015		31
2016		10
Total minimum lease payments		239
Less: amounts representing interest		(16	)
Net minimum lease payments		223
Current portion		187
Long-term portion	$	36

The implied annual interest rates related to these capital leases range from 0.0% to 9.0%. As of December 31, 2013, the gross book value and the net book value of the related assets included in property and equipment is approximately $646,000 and $241,000, respectively.

Amortization of assets under capital leases is included in depreciation expense.