Evaluación de la Condición del Transformador Utilizando

Notes payable as of December 31, 2013 and 2012 consist of the following:

2013 2012

Auto loan, secured by the underlying asset, with Honda Financial, with an original principal amount of $17,555, maturing on July 7, 2013. Principal and interest is paid monthly in accordance with the note’s

amortization schedule. Interest is payable at 6.5%. $ — $ 2,486 The loan was fully repaid on February 19, 2013. Auto loans payable to financial institution in Pakistan, with original

principal amounts aggregating to $57,482 maturing on dates ranging from February 28, 2014 to February 25, 2016. Principal and interest is paid monthly in accordance with the loan amortization schedule. Interest is payable from 15% to 21%. The auto loans are denominated in Pakistan rupees and translated to U.S. dollars at the balance sheet date. During the year 2013, two auto loans with original principal amount of $18,293 have been paid in full. Their maturity date was

March 28, 2013 and September 28, 2013, respectively. 13,279 31,732 Term loan payable to Santander Bank (formerly Sovereign Bank), with

an original principal amount of $100,000, maturing on August 3, 2015. Principal and interest is paid monthly in accordance with the note’s

amortization schedule. Interest is payable at 7.7%. 11,667 51,667 Note payable to the former owner of Sonix Medical Technologies, Inc.,

with an original principal amount of $300,000, maturing on June 29,

2014. The interest is payable at 10%. 72,591 207,369 Note payable to the former owner of GlobalNet Solutions, Inc., with an

original principal amount of $678,856, maturing on April 15, 2014.

The interest is payable at 5%. 117,899 460,054 Note payable to the former owner of Medical Management LLC, with an

original principal amount of $320,478, maturing on July 15, 2014. The

interest is payable at 5%. 91,491 244,088

Note payable to the former owner of United Physician Management Services, Inc., with an original principal amount of $42,426, maturing

on March 15, 2014. The interest is payable at 5%. 5,537 27,010 Note payable to the former owner of Metro Medical Management

Services, Inc. with an original principal amount of $1,225,000,

maturing on August 31, 2015. The interest is payable at 5%. 1,029,227 —

TABLE OF CONTENTS

MEDICAL TRANSCRIPTION BILLING, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 9. NOTES PAYABLE AND LINE OF CREDIT – (continued)

Maturities of notes payable as of December 31, 2013 are as follows:

2013 2012

Convertible note payable to AAMD LLC, a Delaware limited liability corporation, with an original principal amount of $500,000, maturing

on March 23, 2016. The interest is payable at 7%. 472,429 — Note payable to the majority shareholder, with an original principal

amount of $1,000,000, maturing on May 31, 2015. The interest is

payable at 7%. 735,680 —

2,549,800 1,024,406

Current portion 916,104 694,593

Total $ 1,633,696 $ 329,813

Revolving Line of Credit — In January 2011, the Company entered into an agreement with TD Bank for a revolving line of credit for up to $400,000. The line of credit has a variable rate of interest per annum at the Wall Street Journal prime rate plus 1% (4.25% for the entire period from January 1, 2012 through December 31, 2013). The line of credit is collateralized by all the Company’s assets and is guaranteed by the majority shareholder of the Company. In March 2012, the credit line was renewed and availability was increased to $750,000. On July 1, 2013, the agreement with TD Bank was amended to extend the maturity date on the revolving line of credit from May 31, 2013 to August 29, 2014. On September 30, 2013, the credit line availability was increased to $1,215,000. The outstanding balance on this revolver was $1,015,000 and $571,313 as of December 31, 2013 and 2012, respectively. The Company recorded interest expense on the revolving line of credit of $18,164 and $16,389 for the years ended December 31, 2013, and 2012, respectively.

TD Loan — In January 2011, the Company entered into a term loan agreement in the amount of $200,000 with TD Bank.

Principal and interest payments on the term loan are payable in equal consecutive monthly installments of $3,797, commencing February 28, 2011 and continuing up to February 28, 2016. The term loan was collateralized by all of the Company’s assets and was guaranteed by the majority shareholder of the Company. On April 13, 2012, the Company refinanced its term loan with TD Bank to $292,000 with a stated interest rate of 4.47% and maturing on April 13, 2017. During 2012, the TD Bank term loan was fully repaid. The Company recorded interest expense of $4,713 for the year ended December 31, 2012 on this loan.

Santander Bank (formerly Sovereign Bank) Loan Agreement — In January 2007, the Company entered into a financing

agreement with Santander Bank for purposes of providing working capital. The financing agreement provided for an unsecured credit facility to the Company in an amount up to $100,000. The majority shareholder of the Company guaranteed the financing agreement. The financing agreement had a term of one year. On August 11, 2010, this line of credit was converted to a term loan providing for revolving advances to the Company up to $100,000, and the interest rate was revised from the prime rate, plus 2%, to 7.74% per annum. The amount outstanding under this term loan was $11,667 and $51,667 as of December 31, 2013 and 2012, respectively. The Company recorded interest expense related to the Santander Bank loan of $2,248 and $4,916 for the years ended December 31, 2013, and 2012, respectively.

Years Ending December 31,

2014 $ 916,104

2015 1,160,239

2016 473,457

Total $ 2,549,800

TABLE OF CONTENTS

MEDICAL TRANSCRIPTION BILLING, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 9. NOTES PAYABLE AND LINE OF CREDIT – (continued)

Convertible Note — On September 23, 2013, the Company issued a convertible promissory note in the amount of $500,000

to an accredited investor that matures on March 23, 2016. The convertible note accrues interest at the rate of 7% per year and all principal and interest are due and payable on the maturity date, March 23, 2016. If, prior to the maturity date, the Company completes an initial public offering of its common stock, the note will be automatically converted into the number of shares of common stock equivalent to the outstanding principal and accrued interest of the note divided by a conversion price equal to 90% of the per-share issuance price for common stock issued in the initial public offering.

The Company reviews the terms of convertible debt and equity instruments issued to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. The automatic conversion feature of this promissory note has the economic characteristics of a contingent redemption because the total fair value of shares delivered to settle this feature will always be equal to a fixed amount regardless of the IPO price. Consequently, in substance, the automatic conversion feature has the economic characteristics of a contingent early redemption of the convertible note using shares rather than cash (i.e., stock-settled debt), and represents an embedded derivative instrument under ASC 815-15-25 that is required to be accounted for separately from the debt instrument.

As of December 31, 2013, the carrying value of the convertible note payable was $472,429, including $11,767 of accrued interest.

The Company accounted for the automatic conversion feature as a derivative liability to be recorded at fair value at each reporting period. The value of the derivative liability will be re-measured at each reporting period with changes in fair value included in earnings. The fair value of the automatic conversion feature at inception was estimated to be $39,338 at September 23, 2013, the date of issuance. As of December 31, 2013 the value has been estimated $38,142 and is included in other long-term liabilities on the consolidated balance sheet.