Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

Notes Payable

6 Months Ended

Jun. 30, 2017

7. NOTES PAYABLE

	June 30, 2017		December 31, 2016
Vendors Notes (Unsecured)
Long term vendor Notes (“Vendor Notes”) issued to settle litigation bearing interest rates between 0% and 6% per annum. Terms range from 1 to 48 months.	$	3,613		1,337

Other Notes Payable

Notes refinanced in conjunction with the senior debt		-		5,094
Less deferred financing costs		-		(926	)
Total other notes payable, net		-		4,168

Notes payable bearing interest at a stated rate between 10% and 12% per annum. Terms range from 1 to 12 months.		3,110		2,000

Unsecured Notes Issued in Connection with Benchmark Acquisition
Series A Convertible Notes		12,500		-
Series B Notes		30,000		-
Series C Notes		7,500		-
Total notes issued in connection with Benchmark acquisition		50,000		-

Equipment Notes

Obligations under leases, bearing interest rates between 4.1% and 8.2% per annum, secured by equipment having a value that approximates the debt value. Terms range from 48 to 60 months.		838			961
Various Equipment notes, bearing interest rates between 2% and 41% per annum, secured by equipment having a value that approximates the debt value. Terms range from 36 to 72 months.		1,432			1,508
Total Notes payables	$	58,993		$	9,974
Less: Current portion	$	(12,012	)	$	(3,444	)
Total Notes non-current portion	$	46,981		$	6,530

During the six months ended June 30, 2017, the Company issued in Series A Notes, convertible promissory notes, in the aggregate principal amount of $12,500 to certain stockholders of Benchmark, which mature on April 20, 2019. Interest is computed at the rate of five percent per annum on the outstanding principal. Interest expense and accrued interest expense was approximately $122 for the six months ended June 30, 2017. This Note shall be convertible into conversion shares, at the holder’s option, upon an event of default at a conversion price per share of $0.475.

During the six months ended June 30, 2017, the Company issued in Series B Notes in the aggregate principal amount of $30,000 to certain stockholders of Benchmark which mature on April 20, 2020. Interest is computed at the rate of three percent per annum on the outstanding principal. Interest expense and accrued interest expense was approximately $175 for the six months ended June 30, 2017.

During the six months ended June 30, 2017, the Company issued in Series C Notes in the aggregate principal amount of $7,500 to certain stockholders of Benchmark which mature on October 20, 2018. Interest is computed at the rate of three percent per annum on the outstanding principal. Interest expense and accrued interest expense was approximately $42 for the six months ended June 30, 2017.

The required principal payments for all borrowings for each of the five years following the balance sheet date are as follows:

2017 (Remaining)	$	5,052
2018		9,782
2019		13,152
2020		30,532
2021		334
Thereafter		141
Total	$	58,993