SUBSEQUENT EVENT

3 Months Ended

Jul. 31, 2017

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 11 — SUBSEQUENT EVENT

On August 30, 2017, Torotel entered into a Third Amendment (“Amendment”) to the lease for its manufacturing facility located in Olathe, Kansas. The Amendment reconfigured the Suite 520 entry design, and granted Torotel a $37,500 lump sum net base rent abatement, to be applied at $18,750 per month from September 1, 2017 through October 31, 2017.  The Amendment also reduced the current letter of credit requirement from $350,000 to $300,000.  The Amendment did not change the term of the lease, which continues through December 31, 2026 (subject to early termination options and two separate options to extend the lease term for additional five year periods).

Future minimum lease payments on this operating lease are as follows:

Fiscal Years Ending April 30,
2018	$	204,000
2019		332,000
2020		366,000
2021		404,000
2022		428,000
2023		443,000
2024		452,000
2025		457,000
2026		467,000
2027		311,000
Total	$	3,864,000