NOTE 4 — LEASES

We rent office space and equipment under non-cancelable operating leases that expire at various times through fiscal year 2022. Future minimum lease payments under non-cancelable operating leases for the next five fiscal years are as follows:


	Facilities		Equipment		Fiscal Year Totals
2018 (six months remaining)	$	524,000	$	4,000	$	528,000
2019		967,000		7,000		974,000
2020		504,000		7,000		511,000
2021		519,000		7,000		526,000
2022		445,000		11,000		456,000
Total	$	2,959,000	$	36,000	$	2,995,000

In the second quarter of fiscal 2018, we closed our New York office and subleased the office space for the remaining period of the original lease term. As a result of vacating and subleasing the office, we recorded an $806,000 loss on exit of the operating lease in the second quarter of fiscal 2018. As of July 31, 2018, the total minimum rentals to be received under this non-cancelable sublease was $360,000.

Rent and leasing expense for facilities and equipment was $486,000 and $312,000 for the three months ended July 31, 2018 and 2017, respectively, and $803,000 and $625,000 for the six months ended July 31, 2018 and 2017.

In fiscal 2018, we entered into a new capital lease to finance our equipment purchases. Total cost and accumulated depreciation of fixed assets acquired under our outstanding capital lease were $67,000 and $17,000 as of July 31, 2018, respectively. As of January 31, 2018, we had no capital lease obligations outstanding. The current and non-current portions of our capital lease obligation are included in other current and other non-current liabilities, respectively. The amortization expense of the leased equipment was included in depreciation expense.