Note 10 - Commitments

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note 

10

 – Commitments

Qualstar’s lease agreement for its

15,160

square foot facility located in Simi Valley, California, expires on

February

28,

2018.

Rent on this facility is

$10,000

 per month with a step-up of

3%

annually.

Qualstar subleases a portion of the warehouse space to Interlink Electronics, Inc. (Interlink) and is reimbursed for the space and other related expenses on a monthly basis. As described in Note

14,

Interlink is a related party.

Qualstar also leases approximately

5,400

 square feet of office space in Westlake Village, California. Our lease on this facility expires on

January

31,

2020.

  Rent on this facility is

$10,000

per month, with a step-up of

3%

annually. On

March

21,

2016,

we signed a sublease agreement for the Westlake Village facility. The

tenant

will pay Qualstar

$11,000

per month with a step-up of

3%

annually.

Effective

April

1,

2016,

a

two

year lease was signed for

1,359

square feet for

$2,200

per month in Singapore, which expires on

September

30,

2018.

The Company provides for rent expense on a straight-line basis over the lease terms.

Future minimum lease payments under these leases are as follows:

Years Ending December 31,	Minimum Lease Payment		Sublease Revenue			Net Minimum Lease Payment
2017	$	288	$	(139	)	$	149
2018		160		(143	)		17
2019		135		(147	)		(12	)
2020		11		(12	)		(1	)
Total Commitment	$	594	$	(441	)	$	153

Rent expense for the

twelve

months ended

December

31,

2016

and

2015

was

$184,000

and

$314,000

(unaudited), respectively. Rent expense for the

six

months ended

December

31,

2015

and year ended

June

 

30,

2015

was

$132,000,

and

$402,000,

respectively.