(

)

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

lease term runs 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

and

second

of its

four

(

)

one

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

two

(

)

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, 2017

consist of the following:

Fiscal year	Operating Lease
2018		318,629
2019		327,106
2020		72,041
Total	$	717,776

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

October 31,

201

2016

and

2015

was

$403,178,

$391,116

and

$479,937,

respectively.