NOTE 13 — COMMITMENTS

The Company leases certain office space and other facilities under non-cancelable operating leases expiring on various dates through December 2019. Certain leases contain renewal options. As it is management’s intention to continue to occupy the headquarters facility of SMC, the future minimum lease payment amounts presented below include the payment amounts associated with one remaining two-year option term. The future minimum lease payments presented below also include amounts due under a long-term lease covering the primary offices and plant for Roberts with the founder and current chief executive officer of Roberts. Based on a recently completed report provided by an independent property appraiser, the future minimum annual lease payment amounts were reduced to $300,000 from $400,000, effective April 1, 2016 through the end of the lease term, April 30, 2017. None of the Company’s leases include significant amounts for incentives, rent holidays, penalties, or price escalations. Under certain lease agreements, the Company is obligated to pay property taxes, insurance, and maintenance costs. The following is a schedule of future minimum lease payments for the operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of January 31, 2016:

2017	$	622
2018	333
2019	198
2020	89
2021	89
Thereafter	—

Total	$	1,331

The amounts of rent included in selling, general and administrative expenses were $331,000, $195,000 and $171,000 for the years ended January 31, 2016, 2015 and 2014, respectively. Rent included in the costs of revenues, which consisted primarily of rent incurred on construction projects, was $15,004,000, $14,413,000 and $3,612,000 for the years ended January 31, 2016, 2015 and 2014, respectively.