7. Operating Leases of Lessee Disclosure

12 Months Ended

Oct. 31, 2016

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 $234,000. The Company’s software development and manufacturing facility, located in Bohemia, New York, is subject to a lease through October 31, 2017, at an average annual rental rate of $134,000. 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, which includes utilities, was $590,000 and $439,000 for fiscal years 2016 and 2015, respectively.

Fiscal Year Ended October 31:	Contractual obligations under operating leases
2017	431,000
2018	122,000
2019	65,000
2020	72,000
Thereafter	61,000
Total minimum contractual obligations	$ 751,000