9. Leases

12 Months Ended

Dec. 31, 2014

Notes

9. Leases

9. LEASES

In the United States, the Company owns its main operating facility located at 451 Creamery Way in Exton, PA, but the Company does however also lease additional manufacturing, warehousing and distribution space in Exton, which is under contract through January of 2018.  During 2014, the Company obtained a new five year lease on a warehousing and distribution center in Houston, Texas.  Additionally, the Company leases its corporate office space in Middletown, CT.

In the United Kingdom, the Company leases a facility in Banbury, England, which serves sales, warehousing and operational functions.  The lease in Banbury was effective April 1, 2006 and has a 15-year term ending in March 2021.  There is an option to terminate the lease in December of 2017.  Termination in 2017 requires a penalty of 2 months rentals, or approximately $40,000.  The Company’s current intention is to utilize the facility for the 15 years.

In addition to property rentals, the Company also leases several automobiles, which are included in the rent expense and in the operating lease details below.

Rent expense for operating leases was approximately $475,000 and $435,000 for the years ended December 31, 2014, and 2013, respectively.

Future minimum lease payments under non-cancelable leases as of December 31, 2014 is as follows:

Year Ending December 31,	Operating Leases
	(in thousands)
2015	$591
2016	556
2017	458
2018	296
2019	277
Thereafter	281
Total Minimum Lease Payments	$2,459