Note 7 - Lease Commitments

3 Months Ended

Mar. 31, 2012

Leases of Lessee Disclosure [Text Block]

7.  LEASE COMMITMENTS

The Company has operating lease commitments for office equipment and its office and maintenance facilities.  The Company leases its corporate offices from a company controlled by certain of the Company’s officers and directors.  The lease for this facility provided for monthly rent of $13,689 through May 31, 2012.  A two-year option through May 2014 was exercised in April 2012 increasing the monthly rent to $14,428.

The Company leases an aircraft maintenance facility located in Kinston, N. C. under an agreement that extends through January 2018, with monthly rental amounts increasing every five years.  However, based on the occurrence of certain events related to the composition of aircraft fleet, the lease may be canceled by the Company with 90 days notice.  The Company currently considers the lease to be cancelable.

GGS leases its production facility under an agreement that extends through August 2014.

At March 31, 2012, future minimum annual lease payments under non-cancelable operating leases with initial or remaining terms of more than one year are as follows:

Year ended March 31,
2013	$	607,000
2014		610,000
2015		197,000
Total minimum lease payments	$	1,414,000

Rent expense for operating leases totaled approximately $1,424,000 and $1,228,000 for fiscal 2012 and 2011, respectively, and includes amounts to related parties of $164,000 in fiscal 2012 and 2011.