Note 7 - Commitments

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Commitments Disclosure [Text Block]

NOTE

7

–CO

MMITMENTS

Lease Agreements

Qualstar

’s lease agreement for its

15,160

square foot facility located in Simi Valley, California, expires

February 28, 2018.

On

August 23, 2017,

Qualstar exercised the option to extend the lease term for an additional

three

years expiring

February 28, 2021.

Rent on this facility is

$11,000

 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

13,

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,

202

0.

  Rent on this facility is

$11,000

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 pays Qualstar

$12,000

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

, in thousands, (unaudited):

Years Ending December 31,	Minimum L ease Payment		Sublease Revenue			Net Minimum Lease Payment
Remainder of 2017	$	72	$	(35	)	$	37
2018		268		(143	)		125
2019		267		(147	)		120
2020		148		(13	)		135
2021		23					23
Total Commitment	$	778	$	(338	)	$	440

Net r

ent expense for the

three

months ended

September 30, 2017

and

2016

was

$36,000

and

$48,000,

respectively and for the

nine

months ended

September 30, 2017

and

2016

was

$107,000

and

$148,000,

respectively.