COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2016

NOTE 5—COMMITMENTS AND CONTINGENCIES

As part of our ongoing operations, we enter into arrangements that obligate us to make future payments to various parties. Some of these contractual obligations are not reflected on the accompanying consolidated balance sheets due to the nature of the obligations. Such obligations include operating leases for production space and for equipment.

On December 20, 2013, we entered into a real estate lease agreement to lease approximately 11,000 square feet for manufacturing electromechanical assemblies and larger transformers. This agreement commenced on March 1, 2014 and was originally scheduled to terminate on February 29, 2016. The agreement was renewed and commenced April 1, 2016 and ends September 30, 2016.

On July 10, 2014, we entered into a new real estate lease agreement to lease approximately 5,000 square feet for manufacturing electromechanical assemblies and other transformers. This agreement commenced on August 1, 2014 and continues through July 31, 2017.

Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods free of rent. Total rent expense for all operating leases for the years ended April 30, 2016 and 2015 was $193,000 and $176,000, respectively.

Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of April 30, 2016 are:


	Operating
Year Ending April 30,	Leases
2017	$	105,000
2018		17,000
2019		4,000
	$	126,000