Commitments and Contingencies

12 Months Ended

Feb. 29, 2016

Note 11. Commitments and Contingencies

Operating Leases

The Company leases various manufacturing facilities and transportation equipment under leases classified as operating leases, expiring at various dates through 2025. These leases provide that the Company pay taxes, insurance, and other expenses on the leased property and equipment. Rent expense for all leases was approximately $0.9 million and $0.8 million in fiscal 2016 and 2015, respectively.

Future minimum rental payments due under these leases are as follows (in thousands):


Fiscal Year	Amount
2017	$	507
2018		390
2019		393
2020		398
2021		394
Thereafter		980

	$	3,062

Related Party Leases

Included above are leases for manufacturing and warehouse facilities leased from the Company’s chief executive officer and Ordway Properties, LLC under operating leases expiring at various dates through 2025. Rent expense under these leases totaled approximately $508 thousand in fiscal 2016 and $314 thousand in fiscal 2015. The Company’s Stone Mountain lease terminated on March 23, 2016 when the building location was sold. The Company consolidated its operations in its Tucker, GA. location.

Future minimum rental payments due under these leases with related parties are as follows (in thousands):


Fiscal Year	Amount
2017	$	394
2018		384
2019		388
2020		394
2021		394
Thereafter		980

	$	2,934

Legal Proceedings

The Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. Management is of the opinion, that the ultimate resolution of these matters will not have a material adverse effect on the Company’s business, consolidated financial condition, results of operation or cash flows.