Commitments and Contingencies

12 Months Ended

Aug. 31, 2019

Note 8. Commitments and Contingencies

Legal Matters

From time to time, we may be subject to legal proceedings and claims that arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject us to damages or equitable remedies, and divert our management and key personnel from our business operations. We currently are not a party to any material legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Operating Lease Obligations

The Company leases its facilities and automobiles under operating lease agreements (three leased facilities are leased from the Trust, which is beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder – see Note 9), which expire on various dates through September 2029 and require minimum rental payments ranging from $1,000 to $67,000 per month. Certain of the leases contain options for renewal under varying terms.

Minimum future rental payments under operating leases are as follows:


Years Ending August 31:
2020		2,989,000
2021		2,433,000
2022		1,886,000
2023		1,618,000
2024		1,565,000
Thereafter		5,748,000
	$	16,239,000

Rental expense for all operating leases for the years ended August 31, 2019 and 2018 was approximately $2,557,000 and $2,024,000, respectively.