13.

Notes Payable

On January 17, 2012, the Company assumed from MIT a note payable with Los Alamos National Bank (“LANB”) in the amount of $700,000. On February 10, 2012, MIT refinanced with LANB the principal and accrued interest of this note payable with a promissory note of $708,000, maturing on April 1, 2019. The monthly payment to LANB on the promissory note is $10,000, with the interest rate of 5.5% at June 30, 2013. The promissory note is guaranteed by the Company and secured by all assets of the Company. Total interest paid on the promissory note was $19,000 during the six months ended June 30, 2013. The note’s outstanding amount was $595,000 at June 30, 2013.

During the six months ended June 30, 2013, the Company received $935,000 in short term notes and advances from its CEO and CFO to help fund operations. The notes are non-interest bearing and are included in current maturities.

Future maturities of the notes payable are as follows:

Debt maturities as of	June 30,
2014	$	1,057,000
2015		122,000
2016		122,000
2017		122,000
2018 and thereafter		107,000
Total		1,530,000
Less: current portion		(1,057,000)
Note payable – noncurrent portion	$	473,000