(8)

Leases

The Company has an operating lease agreement for approximately

34,000

square feet of office, manufacturing and warehouse space in Plano, Texas (near Dallas). The original lease of approximately

21,000

square feet became effective

September 15, 2009

and had an original term of

five

years. Effective

May 19, 2011,

the Company extended the term of the lease through

November 30, 2016

and agreed to lease approximately

13,000

square feet of additional space adjacent to the existing leased property. The lease term for the additional space became effective

September 1, 2011

and had the same termination date,

November 30, 2016,

as the original leased property. Effective

August 10, 2016,

the Company extended the term of the lease through

November 30, 2019.

The minimum rent payments, including rent holidays, are recognized on a straight line basis over the term of the lease.

Centric Solutions entered into an operating lease agreement in

August 2008

for approximately

23,000

square feet of office and manufacturing space in Coppell, Texas, with a term of approximately

seven

years. On

November 30, 2015

Centric Solutions’ operating lease expired and was not renewed.

The Company entered into an operating lease agreement in

April 2015

for approximately

36,000

square feet of warehouse space in Roanoke, Virginia. The lease term is for

twelve

months and terminated on

April 30, 2016,

but the Company exercised the

first

of its

four (4) one

year options to renew the lease and anticipates it will exercise the remaining

three (3) one

year options. The rent payments are recognized on a straight line basis over the extended term of the lease.

The Company’s future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of

one

year) as of

October 31, 2016

consist of the following:

Fiscal year	Operating Lease
2017	$	309,743
2018		318,629
2019		327,106
2020		72,041
Total	$	1,027,519

Total rent expense associated with the operating leases for the fiscal years ended

October 31, 2016,

2015

and

2014

was

$391,116,

$479,937

and

$425,084,

respectively.