Commitments and Contingencies

6 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

9. Commitments and Contingencies

Leasing Obligations

The Company is obligated under certain lease agreements for office space. These leases expire on January 7, 2019, June 30, 2019, and May 31, 2020, respectively. Rent expense amounted to $125,950 and $222,352 in the three and six months ended September 30, 2015, of which $36,837 and $60,346 was classified in cost of revenue for the three and six months ended September 30, 2015, respectively. The remainder of the rent expense, $89,562 and $162,006, was classified as operating expense for the same periods. For the three and six months ended September 30, 2014, total rent expense of $32,333 and $61,927 was classified in operating expenses.

The Company entered into multiple lease agreements for tower space related to its new DispatchPlus business and deployment of the related dedicated, wide-area, two-way dispatch radio network. The lease expiration dates range from February 28, 2020 to September 30, 2025.

The straight-line method is used to recognize minimum rent expense under leases which provide for varying rents over their term. The effect of applying the straight-line basis resulted in an increase in rental expense of approximately $45,000 and $104,000 in the three and six months ended September 30, 2015, respectively. The impact to the three and six months ended September 30, 2014 was a decrease in rental expense of approximately $4,300 and $8,500. At September 30, 2015, accumulated deferred rent payable amounted to approximately $203,000 and is included as part of accounts payable and accrued expenses in the accompanying September 30, 2015 consolidated balance sheet.

Aggregate rentals, under non-cancelable leases for office and tower space (exclusive of real estate taxes, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases are as follows:



Period Ending March 31,
2016 (6 months)	$	341,843
2017		669,410
2018		701,954
2019		1,165,387
2020		1,181,512
After 2020		4,070,650
Total	$	8,130,756

Litigation

The Company is not involved in any material legal proceedings or other litigation matters at this time. However, from time to time, the Company may be involved in litigation that arises from the ordinary operations of the business, such as contractual or employment disputes or other general actions. In the event of an adverse outcome of these proceedings, the Company believes the resulting liabilities would not have a material adverse effect on its financial condition or results of operations.