US GEOTHERMAL INC - 10-Q filing on 2013-05-13

CONVERTIBLE NOTE PAYABLE	3 Months Ended
Mar. 31, 2013
CONVERTIBLE NOTE PAYABLE [Text Block]	NOTE 10 – CONVERTIBLE NOTE PAYABLE On August 5, 2011, the Oregon USG Holdings, LLC (“Oregon Holdings”), a subsidiary of the Company, signed a convertible note agreement with the other equity partner (Enbridge Inc.). The principal of the loan totaled $2,125,000, and will accrue interest at a rate of 4.75% per annum. The loan balance plus accrued interest will convert to an equity interest in Oregon Holdings upon the earliest of a conversion event or April 1, 2014. Conversion events include the collection of grant funds by the Project. The converted balance would increase Enbridge Inc.’s ownership at a ratio of 1.5% for each $1 million contributed. In April 2013, the grant funds were collected and the note balance and all accrued interest is considered to be due; therefore, the loan balance of $2,125,000 is considered to short-term at March 31, 2013. See note 18.

CONVERTIBLE NOTE PAYABLE

3 Months Ended

Mar. 31, 2013

NOTE 10 – CONVERTIBLE NOTE PAYABLE

On August 5, 2011, the Oregon USG Holdings, LLC (“Oregon Holdings”), a subsidiary of the Company, signed a convertible note agreement with the other equity partner (Enbridge Inc.). The principal of the loan totaled $2,125,000, and will accrue interest at a rate of 4.75% per annum. The loan balance plus accrued interest will convert to an equity interest in Oregon Holdings upon the earliest of a conversion event or April 1, 2014. Conversion events include the collection of grant funds by the Project. The converted balance would increase Enbridge Inc.’s ownership at a ratio of 1.5% for each $1 million contributed. In April 2013, the grant funds were collected and the note balance and all accrued interest is considered to be due; therefore, the loan balance of $2,125,000 is considered to short-term at March 31, 2013. See note 18.