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Craig A. Smith & Associate, Inc. and MPS31), LLC Notes to Financial Statements NOTE 4 — OTHER ASSETS Technology License Craig A. Smith & Associates, Inc. and MPS3D, LLC entered into a technology license agreement for the use of Witten Technologies proprietary 3D radar tomography. The technology is used to locate underground utilities to assist in engineering projects. As of December 31, 2016 and 2015 the Witten Technologies License is recorded as $60,000 with accumulated amortization of $60,000 for both years. The license automatically renews annually with no fee unless there is a material breach of the agreement. The Witten Technology Company went bankrupt in 2009 and the company's remaining assets were purchased by Underground Imaging Technologies, LLC, a subsidiary of the Caterpillar Corporation. Royalties due per an existing Software Licensing Agreement have been accrued in the amounts of $146,401 and $146,268 in the event that the holder of the license should request the royalties due per the agreement. The royalties are calculated at 10% of Gross Revenues from Radar Tomography for services sold under the Trademarks and 15% of Gross Revenues from the provision of previously -acquired data to subsequent customers of Licensee. Royalty expense for years ended December 31, 2016 and 2015 was $133 and $17,684, respectively. These royalties have not been billed or subject to claim for over 7 years. NOTE 5 — DEBT Note Payable — Bank The Companies entered into a $610,700 Promissory Note Payable ("Note") with JP Morgan Chase Bank in 2011. The note has a 60 month term which commenced March 2011 with monthly principal and interest payments of $11,905. Interest on the Note is calculated at 6.14% per annum based on a year of 360 days. The final payment was due April 2016. During the years ended December 31, 2016 and 2015 the Companies incurred $687 and $7,511 of interest expense respectively related to the Note. The balance on the note payable was $0 and $46,730 as of December 31, 2016 and 2015, respectively. In 2012 the Companies entered into a $64,000 Promissory Note Payable ("Note") with JP Morgan Chase Bank related to the purchase of a building. The Note has a 10 year term which commenced April 1, 2012 with monthly principal and interest payments of $435. Interest on the Note is calculated at 5.25% per annum based on a year of 360 days. The final payment is due March 1, 2022. During the years ended December 31, 2016 and 2015 the Companies incurred $2,987 and $3,104 of interest expense respectively related to the Note. The balance on the note payable was $0 and $56,405 as of December 31, 2016 and 2015, respectively. The Companies' assets were pledged as collateral related to the notes with JP Morgan Chase Bank. Line of Credit In 2016 the Companies executed a $500,000 revolving line of credit Promissory Note Payable ("LOC") with JP Morgan Chase Bank. Interest on the line of credit is equal to the sum of the Prime Rate in effect from time to time plus 3.0 and 3.0 percentage points for December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, the Companies' balance related to the LOC was $0 and $120,000, respectively. During the years ended December 31, 2016 and 2015 the Companies incurred $270 and $10,158 of interest expense respectively related to the LOC. The Companies' assets were pledged as collateral related to the line of credit with JP Morgan Chase Bank. _10 - EN