Note 5 – Long-Term Debt

Long-term debt consists primarily of eight notes with financing companies, related to Gamma Knife equipment and construction and installation, totaling $9,724,000, as of December 31, 2014. These notes are payable in 36 to 84 fully amortizing monthly installments, mature between December 2015 and November 2021, and are collateralized by the respective Gamma Knife units. The notes accrue interest at fixed annual rates between 3.95% and 7.48%. Long term debt as of December 31, 2014 also includes $1,000,000 in promissory notes and warrants funded by four members of the Company’s Board of Directors. The fair value of the warrants are estimated at $145,000 and are reported as capital contributed during 2014. The promissory notes are reported net of the amount allocated to the warrants, which is amortized over the term of the obligation. See Note 13-Note, Warrant, & Common Stock Purchase Agreement for additional discussion on promissory notes and warrants with the Board. As of December 31, 2013 long-term debt consisted of eleven notes totaling $15,544,000.

The following are contractual maturities of long-term debt by year at December 31, 2014:

Year ending December 31,	Principal		Interest
2015	$	2,053,000	$	654,000
2016		2,698,000		525,000
2017		2,669,000		369,000
2018		1,546,000		159,000
2019		891,000		85,000
Thereafter		867,000		58,000

	$	10,724,000	$	1,850,000