Commitments

The Company leases land, buildings and equipment under various operating leases, which generally have renewal options of one to five years. Rent expense was $68,839 in the 2015 transition period, $72,826 in fiscal 2015 and $67,972 in fiscal 2014.

Scheduled operating lease payments are as follows (as restated):



2016	$	72,822
2017	60,757
2018	55,487
2019	50,389
2020	41,435
Thereafter	90,933
Total	$	371,823

The Company currently leases its facility in Magna, Utah from a private party. This facility is used in the production and testing of some of the Company's rocket motors. The current lease extends through September 2022. The lease requires the Company to surrender the property back to its owner in its original condition. While the Company currently anticipates operating this facility indefinitely, the Company could incur significant costs if the Company were to terminate this lease.

The Company has known conditional asset retirement obligations, such as contractual lease restoration obligations, to be performed in the future, that are not reasonably estimable due to insufficient information about the timing and method of settlement of the obligation. Accordingly, these obligations have not been recorded in the consolidated financial statements. A liability for these obligations will be recorded in the period when sufficient information regarding timing and method of settlement becomes available to make a reasonable estimate of the liability's fair value.