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 Company has delivered notice of its intent to extend the term of the lease for an additional three year period ending October 31, 2019.  The Company has the right to rescind such lease extension upon receipt of the landlord’s notice of the new base rent for the extended term.

The Company leases 6,400 square feet of office space located in London, England. The lease expires in June 2020.  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 stipulated 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. As of September 30, 2015, the lease has not been reviewed or adjusted and quarterly payments of approximately $27,000 will continue.  Based on the terms of the lease agreement, the Company was also required to make a security deposit equivalent to six months’ rent (approximately $67,000).

The Company leases 45,800 square feet of manufacturing space in Selangor D.E., Malaysia under a lease that requires monthly payments of approximately $13,000 through September 2016 and may be renewed at the option of the Company for an additional three year term. 

The Company also leases equipment under a number of lease agreements which expire at various dates through June 2020.  The aggregate monthly rental was $616 at September 30, 2015. Details of operating lease expense, including real estate taxes and insurance, for the years ended September 30, 2015, 2014, and 2013 are as follows:

Future minimum payments under leases consist of the following as of September 30, 2015: