Prudential Capital Group – Idaho USG Holdings LLC
In May 2016, the Company’s wholly owned subsidiary (Idaho USG Holdings LLC) entered into a loan agreement with the Prudential Capital Group to finance the Company’s development activities. The original principal totaled $20 million and included the option to issue additional debt up to $50 million within the next two years. The original $20 million loan amount bears interest at a fixed interest rate of 5.8% per annum. The principal and interest payments are due semi-annually at amounts based upon a 20 -year amortization period and the scheduled remaining balance of $16,009,495 is due in full at the end of the 7 year term. The loan is secured by the Company’s ownership interests in the Neal Hot Springs (Oregon USG Holdings LLC and USG Oregon LLC) and the Raft River (Raft River Energy I LLC) projects. At June 30, 2016, the balance of the loan was $20,000,000 (current portion $703,525) and the net unamortized debt issuance costs associated with this loan totaled $801,521 ($821,070, less amortized costs of $19,549).

U.S. Department of Energy
On August 31, 2011, USG Oregon LLC (“USG Oregon”), a subsidiary of the Company, completed the first funding drawdown associated with the U.S. Department of Energy (“DOE”) $96.8 million loan guarantee (“Loan Guarantee”) to construct its power plant at Neal Hot Springs in Eastern Oregon (the “Project”). All loan advances covered by the Loan Guarantee have been made under the Future Advance Promissory Note (the “Note”) dated February 23, 2011. Upon the occurrence and continuation of an event of default under the transaction documents, all amounts payable under the Note may be accelerated. In connection with the Loan Guarantee, the DOE has been granted a security interest in all of the equity interests of USG Oregon, as well as in the assets of USG Oregon, including a mortgage on real property interests relating to the Project site. No additional advances are allowed under the terms of the loan. A total of 13 draws were taken and each individual draw or tranche is considered to be a separate loan. The loan principal is scheduled to be paid over 21.5 years from the first scheduled payment date with semi-annual installments including interest calculated at an aggregate fixed interest rate of 2.598% . The principal payment amounts are calculated on a straight-line basis according to the life of the loans and the original loan principal amounts. The principal portion of the aggregate loan payment is adjusted as individual tranches are extinguished. The principal payments started at $1,709,963 on February 10, 2014 and are scheduled to be reduced to $1,499,259 on February 10, 2017 and continue through February 12, 2035. The loan balance at June 30, 2016 totaled $61,836,759 (current portion $3,192,688).

Loan advances/tranches and effective annual interest rates are detailed as follows:

				Annual Interest
Description		Amount		Rate %
Advances by date:
August 31, 2011*	$	2,328,422		2.997
September 28, 2011		10,043,467		2.755
October 27, 2011		3,600,026		2.918
December 2, 2011		4,377,079		2.795
December 21, 2011		2,313,322		2.608
January 25, 2012		8,968,019		2.772
April 26, 2012		13,029,325		2.695
May 30, 2012		19,497,204		2.408
August 27, 2012		7,709,454		2.360
December 28, 2012		2,567,121		2.396
June 10, 2013		2,355,316		2.830
July 3, 2013*		2,242,628		3.073
July 31, 2013*		4,026,582		3.214
		83,057,965
Principal paid through June 30, 2016		(21,221,206	)

Loan balance at June 30, 2016	$	61,836,759

Prudential Capital Group – USG Nevada LLC
On September 26, 2013, the Company’s wholly owned subsidiary (USG Nevada LLC) entered into a note purchase agreement with the Prudential Capital Group to finance the Phase I San Emidio geothermal project located in northwest Nevada. The term of the note is approximately 24 years, and bears interest at fixed rate of 6.75% per annum. Interest payments are due quarterly. Principal payments are due quarterly based upon minimum debt service coverage ratios established according to projected operating results made at the loan origination date and available cash balances. The loan agreement is secured by USG Nevada LLC’s right, title and interest in and to its real and personal property, including the San Emidio project and the equity interests in USG Nevada LLC. At June 30, 2016, the balance of the loan was $29,516,662 (current portion $649,018).

Based upon the terms of the notes payable and expected conditions that may impact some of those terms, the total estimated annual principal payments were calculated as follows:

For the Twelve Months Ended		Principal
June 30,		Payments
2017	$	4,545,231
2018		3,898,652
2019		4,155,445
2020		4,347,724
2021		4,789,681
Thereafter		89,616,688

	$	111,353,421