11.

Financial Liabilities

Financial liabilities consist of (in thousands):


	June 30, 2012		December 31, 2011
Current liability:
Equipment financing liabilities	$	547	$	—
Bank loan		325		—
Debt note		835		829
Mortgage loan payable to bank		53		55

Total current liability	$	1,760	$	884

Non-current liability:
Equipment financing liabilities	$	2,019	$	—
Bank loan		1,383		—
Debt note		—		423
Mortgage loan payable to bank		716		766

Total non-current liability	$	4,118	$	1,189

Total	$	5,878	$	2,073

In connection with its acquisition of payment solution, through its majority-owned subsidiary Bluehill ID AG, the Company acquired obligations for equipment financing liabilities and a bank loan.

The equipment financing liabilities are partially secured by payment solution’s systems installed in the stadiums to which they relate and will mature in 2014. Amounts outstanding under the equipment finance obligations accrue interest in the range of 8.6% to 18.6%, and interest is payable quarterly. payment solution is obligated to pay a quarterly sum of approximately $0.2 million in principal and interest during 2012. The repayments increase to approximately $0.3 million per quarter in 2013, with a final payment of approximately $0.8 million in October 2014. The Company recorded interest expense on the equipment financing obligations of approximately $0.1 million and $0.2 million during the three and six months ended June 30, 2012, respectively.

The bank loan is secured by some of payment solution’s tangible assets installed in the various stadiums and will mature in 2017. Amounts outstanding under the bank loan accrue interest at 11.15% and interest is payable quarterly. payment solution is obligated to pay a quarterly sum of approximately $0.1 million in principal and interest over the life of the loan. The Company recorded interest expense on the bank loan of approximately $0.1 million and $0.1 million during the three and six months ended June 30, 2012, respectively.

In connection with its acquisition of Smartag Pte., Ltd. (“Smartag”) in November 2010, the Company issued a debt note with a face value of $2.2 million to FCI Asia Pte. Ltd. The debt note carries an interest rate of 6% per year, compounded daily and is payable within 30 months from the closing date. The Company is obligated to pay the principal and accrued interest on a quarterly basis beginning February 19, 2011. The Company may at any time prepay the principal amount of this debt note, in whole or in part, together with accrued interest thereon, without penalty. The discount for prepayment shall be 10% on any remaining amount outstanding under the debt note. The debt note is secured by the grant of first-priority security interest in over all the shares and assets of Smartag. The Company recorded interest expense on the debt note of $14,000 and $32,000 during the three and six months ended June 30, 2012, respectively. The Company recorded interest expense on the debt note of $34,000 and $0.1 million during the three and six months ended June 30, 2011, respectively.

In connection with its acquisition of Bluehill ID AG (“Bluehill ID”) in January 2010, the Company acquired an obligation for a mortgage loan and a related revolving line of credit payable to a bank. The mortgage loan and the revolving line of credit are related to one of the wholly-owned subsidiaries of Bluehill ID and are secured by the land and building to which it relates as well as total inventory, machinery, stock, products and raw materials of the subsidiary. Amounts outstanding under the mortgage loan accrue interest at 5.50%, and interest is payable monthly. The mortgage loan will mature in 2026. The Company is obligated to pay a monthly amount of approximately $4,600 over the life of the mortgage loan towards the principal amount in addition to monthly interest payments. The total amount that can be advanced under the line of credit is approximately $0.1 million. The advances on the revolving line of credit accrue interest at a base rate determined by the bank plus 2%, payable quarterly. Any advances over the limit will accrue interest at 10.75%. The revolving line of credit is ongoing with no specific end date. The Company recorded interest expense on the mortgage loan and line of credit of approximately $13,000 and $29,000 during the three and six months ended June 30, 2012, respectively. The Company recorded interest expense on the mortgage loan and line of credit of approximately $19,000 and $38,000 during the three and six months ended June 30, 2011, respectively. As of June 30, 2012 and December 31, 2011, outstanding balances under the revolving line of credit were zero.