NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2016

Notes payable is summarized as follows at December 31, 2016 and 2015:

(in thousands)

	2016		2015
(a) Mortgage note payable	$	3,439	$	3,524
(b) Acquisition Note Payable - related party		5,304		5,304
Ending Balance	$	8,743	$	8,828

(a)

On October 1, 2013, the funding of the purchase of the Company’s Tualatin, Oregon corporate offices from Barakel, LLC was completed. The purchase price for this asset was $5.1 million. The purchase was funded, in part, by a promissory note payable to Wells Fargo Bank in the amount of $3.7 million plus interest at the rate of 2% above LIBOR, payable over ten years with a balloon payment due at maturity. It was secured by a deed of trust on the purchased property, which was executed by CUI Properties, LLC and guaranteed by CUI Global, Inc. During 2016, the Company made principal payments of approximately $85 thousand against the mortgage promissory note payable. At December 31, 2016, the balance owed on the mortgage promissory note payable was $3.4 million of which $89 thousand and $3.3 million were in current and long-term liabilities, respectively. At December 31, 2015, the balance owed on the mortgage promissory note payable was $3.5 million of which $85 thousand and $3.4 million were in current and long-term liabilities, respectively.

(b)

The note payable to International Electronic Devices, Inc. (formerly CUI, Inc.) is associated with the acquisition of CUI, Inc. The promissory note is due May 15, 2020 and includes a 5% interest rate per annum, with interest payable monthly and the principal due as a balloon payment at maturity. The note contains a contingent conversion feature, such that in the event of default on the note the holder of the note can, at the holder’s option, convert the note principal into common stock at $0.001 per share. As of December 31, 2016, the Company is in compliance with all terms of this promissory note and the conversion feature is not effective.

Schedule of Maturities of Long-term Debt

The following table details the maturity of the notes payable and mortgage note payable for CUI Global, Inc. as of December 31, 2016 (in thousands):

Notes Payable Maturities
2017	$	89
2018		94
2019		99
2020		5,407
2021		109
Thereafter		2,945
Total	$	8,743