Note 14 - Commitments

On June 5, 2017, the Company entered into a fifth amendment to its lease for its facility in San Diego, California. Prior to the amendment, the Company had intended to surrender approximately 2,321 square feet of warehouse space (known as “Suite 5200”) that the Company was renting as part of its lease in San Diego. Under the amendment, the Company will retain Suite 5200, which will be used as warehouse space by Comnet Telecom. In January 2017, the Company entered into a fourth amendment to the lease in order to increase its leased space by approximately 1,940 square feet of additional space in San Diego with the intention of surrendering Suite 5200. As a result of entering into the fifth amendment to the lease, including the additional space the Company leased in January 2017, the Company now leases a total of approximately 21,908 square feet of office, warehouse and manufacturing space at its San Diego location. The term of the fourth amendment to the lease was extended until July 31, 2022, and the rental payments increased $2,596 per month from $20,125 to $22,721 per month. Rent for this lease was abated for the months of May through August 2017. The term of the fifth amendment also expires July 31, 2022 and the rental payments are $2,693 per month. Rent for this lease was abated for the month of June 2017. The minimum annual rentals are being charged to expense on a straight-line basis over the lease term. The San Diego lease also requires the payment of the Company’s pro rata share of real estate taxes and insurance, maintenance and other operating expenses related to the facilities.

On June 9, 2017, the Cables Unlimited division entered into an amendment to its lease with K & K Unlimited, as landlord, under which Cables Unlimited leases its 12,000 square foot manufacturing facility in Yaphank, New York. Under the amendment, the parties agreed that the term of the lease shall be extended one year to June 30, 2018. Cables Unlimited’s monthly rent expense under the amended lease remained at $13,000 per month, plus payments of all utilities, janitorial expenses, routine maintenance costs and costs of insurance for Cables Unlimited’s business operations and equipment. The landlord is a company controlled by Darren Clark, the former owner and current President of Cables Unlimited.

On June 25, 2017, the Comnet Telecom division entered into an amendment to its lease for approximately 15,000 square feet in two suites located in East Brunswick, New Jersey. Comnet’s current monthly rent expense under the leases is approximately $6,563 per month and, effective October 31, 2017, will increase to $8,542 per month for these facilities. The amended lease expires in September 2022.

On July 25, 2017, the Rel-Tech Electronic division entered into a lease for approximately 13,750 square feet located in Milford, Connecticut. Rel-Tech’s current net monthly rent expense under the lease is approximately $8,307 per month and, effective September 1, 2017, will increase to $8,707 per month for these facilities. The new lease expires in August 2019.