Note 5 – Debt

Capital Lease Obligations

The Company has equipment under two 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, 2014, future minimum payments under these capital leases are:

Year Ending December 31,	Amount (in thousands)

2015	$	29
2016		9
Total minimum lease payments		38
Less: amounts representing interest		(2	)
Net minimum lease payments		36
Current portion		27
Long-term portion	$	9

The implied annual interest rates related to these capital leases range from 7.4% to 8.9%. As of December 31, 2014, the gross book value and the net book value of the related assets included in property and equipment is approximately $646,000 and $94,000, respectively. Amortization of assets under capital leases is included in depreciation expense.