Note 7 - Notes payable:

On October 1, 2009, One Group purchased the following membership units from a former member: 10.14% in JEC II, 6.55% in One Marks, 5.19% in Little West 12^th and 4.63% in One LA. The Company paid $400,000, of which $300,000 was paid in cash and $100,000 in the form of a note and issued warrants to purchase up to 10,090 membership units of the Company at an exercise price of $22.94 per membership unit which were cancelled in connection with the Merger. Commencing in December 2009, quarterly payments of principal and interest in the amount of $5,656 are to accrue at an interest at a rate of 5% through September 2014. At June 30, 2014 and December 31, 2013, $5,000 and $15,000 remained outstanding under this note, respectively.

On June 3, 2014 the Company entered into Amendment No. 3 to the Credit Agreement with BankUnited, N.A., or BankUnited (formerly Herald National Bank) dated October 31, 2011, as amended on January 29, 2013 and October 15, 2013 (as amended, the Credit Agreement), to adjust the commitment termination date to October 31, 2014 and the maturity date of the Credit Agreement to October 31, 2015.

On August 6, 2014, the Company entered into Amendment No. 4 and Addendum to the Credit Agreement with BankUnited to, among other things, increase its credit facility for up to $9.1 million, as well as update certain definitions remove the advance ratio covenant and add a debt service coverage ratio calculation. The covenant calculations were effective for the period ending June 30, 2014 and the Company was in compliance with all of the new covenants as of June 30, 2014.

At June 30, 2014, the Credit Facility accrues at a rate equal to the greater of prime plus 1.75% or 5% (5% at June 30, 2014 and 2013, respectiively) through April 30, 2014. Our tangible net worth, calculated pursuant to the Credit Agreement, was $17,185,207 and $ 8,226,636 at June 30, 2014 and December 31, 2013, respectively.

At June 30, 2014 and December 31, 2013, $ 4,993,849 and $4,316,865 remained outstanding under the Credit Agreement, respectively.

Minimum future payments on the notes payable in each of the years subsequent to June 30, 2014 are $5,000 in 2014 and $4,993,849 in 2015.

Interest expense recognized related to these notes amounted to $72,892 and $80,603 for the six months ended June 30, 2014 and 2013, respectively and $44,635 and $48,331 for the three months ended June 30, 2014 and 2013, respectively.