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Commitments and Contingencies
12 Months Ended
Sep. 30, 2018
Commitments and Contingencies  
Commitments and Contingencies

14.  Commitments and Contingencies

 

Operating Leases

 

Rent expense under operating leases totaled approximately $113,000,  $94,000 and $83,000 for the years ended September 30, 2018, 2017 and 2016, respectively. Future minimum lease payments under non-cancelable operating leases are $62,000  for the year ended September 30, 2018.

 

Purchase Obligations

 

A “purchase obligation” is defined as an agreement to purchase goods or services that is enforceable and legally binding on the Company and that specifies all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions, and the approximate timing of the transaction. These amounts are comprised primarily of open purchase order commitments entered in the ordinary course of business with vendors and subcontractors pertaining to fulfillment of the Company’s current order backlog.  The purchase obligations on open purchase orders were $0.7 million, $0.9 million and $0.9 million as of September 30, 2018, 2017 and 2016, respectively.

 

Product Liability

 

The Company has product liability insurance of $50,000,000.  The Company has not experienced any material product liability claims.

 

Legal Proceedings

 

In the ordinary course of business, IS&S is at times subject to various legal proceedings and claims. The Company believes it is not reasonably possible that such matters that are currently pending will, individually or in the aggregate, have a material effect on the results of operations or financial position.