|
Note 5 - Operating Leases and Rental Expense
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases of Lessee Disclosure [Text Block] |
Note
5. Operating
Leases and Rental Expense
The
Company’s corporate headquarters is located in
approximately 5,100 square feet of office space located
in Chicago, Illinois. On March 10, 2011, the Company
signed a lease amendment, effective November 1, 2010,
which extended the lease term for this office space for a
five year period commencing on November 1, 2011 and
ending on October 31, 2016. The lease
amendment grants the Company a five month lease abatement
beginning November 1, 2010, reduces base rent and
provides a tenant improvement allowance. The
lease requires escalating monthly payments ranging from
$6,797 to $7,859, plus real estate taxes, utilities and
maintenance expenses from April 1, 2011 to October 31,
2016. The lease stipulates that after five
years, the Company shall have a one-time right to extend
the term of the lease for an additional three years by
giving the landlord no less than twelve months prior
notice in writing.
The
Company leases 6,400 square feet of office space located
in London, England. The lease, which expires in June
2020, includes an option by the Company to terminate the
lease in 2015 by giving the landlord no less than six
months prior notice in writing. The lease requires
quarterly payments of approximately $13,500 through
December 2011 and quarterly payments of approximately
$27,000 from January 2012 through June
2015. The lease stipulates that after 5 years
(June 2015) the principal rent will be reviewed and
adjusted to the higher of the principal rent immediately
prior to the review date or the market rate. Per the
terms of the lease agreement, the Company was also
required to make a security deposit equivalent to six
months’ rent (approximately $71,000).
The
Company leases 16,000 square feet of manufacturing space
in Selangor D.E., Malaysia under a lease that
requires
monthly payments of approximately $13,000 through August
2013 and may be renewed at the option of the Company for
an additional three year term. The Company
also leases 11,000 square feet of warehouse space in
Selangor D.E., Malaysia under a lease that requires
monthly payments of approximately $4,000 through
February 2014
and may be renewed at the option of the Company for an
additional one year term.
The
Company also leases equipment under a number of lease
agreements which expire at various dates through June
2015. The aggregate monthly rental was $402 at
September 30, 2012. Details of operating lease expense,
including real estate taxes and insurance, for the years
ended September 30, 2012, 2011 and 2010 are as
follows:
Future
minimum payments under leases consisted of the following
as of September 30, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||