8. Operating Leases of Lessee Disclosure

12 Months Ended

Oct. 31, 2017

Notes

8. Operating Leases of Lessee Disclosure

8. 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 $235,000. The Company’s software development and manufacturing facility, located in Bohemia, New York, is subject to a lease through October 31, 2018, at an average annual rental rate of $139,000. The Company’s primary software development facility, located in Orlando, Florida, is subject to a lease through August 31, 2021, at an average annual rental rate of $67,000. 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 $645,000 and $590,000 for the year ended October 31, 2017 and 2016, respectively.

	Contractual obligations
Fiscal Year Ended October 31:	under operating leases
2018	$                                            287,133
2019	64,002
2020	71,882
2021	61,392
Thereafter	-
Total minimum contractual obligations	$                                            484,409

On November 20, 2017, the Company modified its lease agreement for its Company headquarters located in Stamford, Connecticut, extending the term to June 30, 2023, at an annual rate of $220,000. On December 20, 2017, the Company entered into a new lease through April 30, 2023 for a regional office in Irving, Texas, at an annual rate of $60,000.  These subsequent lease agreements are not included in the table above.