EBT

In connection with the acquisition of Genasys, as described in Note

the Company acquired certain debts of Genasys. The carrying value of the acquired debt approximates fair value. The components of the acquired debt consisted of the following as of

March 31, 2018:

Loans with Governmental Agencies (1)	$	847,215
Revolving Credit Facilities (2)		198,850
Term Loans (3)		119,483
Total debt		1,165,548
Less current portion		(896,317	)
Total long-term debt	$	269,231

(

)

Loans with governmental agencies represents debt granted by ministries within Spain and the European Union for the purpose of stimulating economic development and promoting research and development. Loans with governmental agencies as of

March 31, 2018

are as follows:

Agency	Due Date	Interest Rate	Principal
Ministry of Industry, Tourism, and Commerce	December 31, 2018	0.53%	$	73,865	a
Ministry of Industry, Tourism, and Commerce	December 31, 2019	0.51%		107,933	b
Ministry of Industry, Tourism, and Commerce	January 31, 2020	3.95%		94,634	c
Ministry of Science and Innovation	February 2, 2022	0.00%		74,136
Ministry of Science and Innovation	February 2, 2024	0.00%		296,440	d
Center for Development of Industrial Technology	March 31, 2021	0.00%		94,306
European Union Agency for Network and Information Security	October 28, 2018	2.95%		105,902
			$	847,215

This loan is secured by

$26,113

of cash pledged as collateral by Genasys. This amount is included in restricted cash at

March 31, 2018.

The cash will be released upon repayment of the loan.

This loan is secured by

$40,373

of cash pledged as collateral by Genasys, which represents

25%

of the original principal received. This amount is included in restricted cash at

March 31, 2018.

The cash will be released upon repayment of the loan.

This loan is secured by

$63,774

of cash pledged as collateral by Genasys, which represents

35%

of the original principal received. This amount is included in restricted cash at

March 31, 2018.

The cash will be released upon repayment of the loan.

This loan is secured by

$296,440

of cash pledged as collateral by Genasys, which is the current balance of the loan. This amount represents

66.6%

of the original principal received. This amount is included in restricted cash at

March 31, 2018.

The Company expects the Ministry of Science and Innovation to declare the terms of the loan satisfied within fiscal year

2018,

and that the outstanding balance of the loan will be paid in full during fiscal year

2018.

Accordingly, this has been included in the current portion of notes payable as of

March 31, 2018.

(

)

Revolving credit facilities were used by Genasys to meet short-term operating needs. Revolving credit facilities as of

March 31, 2018

are as follows:

Description	Interest Rate	Principal
Revolving Credit Facility A	3.50%	$	58,092
Revolving Credit Facility B	3.95%		60,811
Revolving Credit Facility C	3.00%		60,199
Other Revolving Credit Facilities	4.20%		19,748
		$	198,850

Borrowing under Revolving Credit Facilities A, B, and C are up to a maximum of

€50,000

(approximately

$61,600

). These revolving credit facilities mature during the

three

months ended

June 30, 2018.

The Other Revolving Credit Facilities were used by Genasys to fund local tax payments and mature during the

three

months ended

June 30, 2018.

(

)

Term Loans as of

March 31, 2018

are as follows:

Description	Due Date	Interest Rate	Principal
Term Loan A	October 20, 2018	4.80%	$	12,681
Term Loan B	May 27, 2019	Variable		18,549
Term Loan C	June 20, 2019	4.29%		39,951
Term Loan D	July 12, 2020	Variable		48,302
			$	119,483

Term Loan A

is an unsecured

4.80%

fixed rate loan due in

October 2018

issued to fund the working capital needs of Genasys. There is a prepayment penalty of

of the outstanding balance. Principal and interest payments are payable on the

of each month.

Term Loan B

is an unsecured variable rate loan due in

May 2019

issued to fund the working capital needs of Genasys. The interest rate is Euribor +

3.5%.

There are

prepayment penalties. Principal and interest payments are payable on the

of each month.

Term

oan C

is an unsecured fixed rate loan due in

June 2019

issued to fund the working capital needs of Genasys. There is

prepayment penalty. Principal and interest payments are due on the

of each month.

Term

oan D

is an unsecured variable rate loan due in

July 2020

issued to fund the working capital needs of Genasys. There is a prepayment penalty of

0.5%

of the outstanding balance. The interest rate is fixed at

2.44%

until

July 2018

at which point the interest rate becomes Euribor +

2.44%.

Principal and interest payments are due on the

of each month.

The following is a schedule of future annual payments as of

March 31, 2018:

April 2018-March 2019	$	896,317
April 2019-March 2020		173,035
April 2020-March 2021		48,796
April 2021-March 2022		47,400
April 2022-March 2023		-
Thereafter		-
Total	$	1,165,548

The Company has pledged

$428,425

of cash as collateral against debt. This restricted cash amount is included in restricted cash and long-term restricted cash as of

March 31, 2018.

The Company recorded

$9,815

in interest expense for the

three

months and

six

months ended

March 31, 2018

in the condensed consolidated statements of income in connection with the above referenced debt.