7. Operating Leases of Lessee Disclosure

12 Months Ended

Oct. 31, 2014

Notes

7. Operating Leases of Lessee Disclosure

7. Leases

The Company’s headquarters, located in Stamford, Connecticut, are subject to a lease through January 31, 2018, at an average annual rental rate of $230,000. The Company’s software development and manufacturing facility, located in Bohemia, New York, is subject to a lease through October 31, 2015, at an average annual rental rate of $126,000. These leases provide for additional payments of real estate taxes and other operating expenses over the base amount in the rental agreement. Other short-term operating leases are included below. All other operating leases are under a month-to-month arrangement. Rent expense was $445,000 and $386,000 for fiscal years 2014 and 2013, respectively.

Fiscal Year Ended October 31	Contractual obligations under operating leases
2015	426,000
2016	265,000
2017	270,000
2018	96,000
Thereafter	-
Total minimum contractual obligations	1,057,000