OPTC » Topics » 8. Commitments and Contingencies

These excerpts taken from the OPTC 10-K filed Mar 30, 2009.

8. Commitments and Contingencies

        Operating Leases—In March 2003, the Company began to occupy its corporate office and manufacturing facility located in Germantown, Maryland. As an inducement to enter this operating lease, the Company received certain incentives such as rent abatement. Additionally, the lease provides

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Table of Contents


OPTELECOM-NKF, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

8. Commitments and Contingencies (Continued)

for scheduled rent increases. These lease incentives are being amortized over the lease period. Rent expense is being recognized on a straight-line basis.

        We have a lease for office facilities located in the Netherlands that expires in March 2015, in France that expires in June 2009, and Spain which expires in April 2009. In the U.K. we have a monthly lease for office facilities.

        As of December 31, 2008, future net minimum rental payments required under capital and operating leases that have initial or remaining non-cancelable terms in excess of one year are as follows:

Year ended December 31, (Dollars in thousands):
  Operating   Capital   Total  

2009

  $ 1,374   $   $ 1,374  

2010

    1,269         1,269  

2011

    1,187         1,187  

2012

    1,157         1,157  

2013

    965           965  

Thereafter

    699         699  
               

Gross Payments

  $ 6,651   $   $ 6,651  

Less Amounts Representing Interst

             
               

Net Minimum Rental Payments

  $ 6,651   $   $ 6,651  

        Rent expense was $1.1 million and $1.0 million for the years ended December 31, 2008 and 2007, respectively.

        Legal Proceedings—Optelecom-NKF is not involved in legal proceedings or litigation at this time.

8. Commitments and Contingencies



        Operating Leases—In March 2003, the Company began to occupy its corporate office and manufacturing facility located in Germantown, Maryland. As an
inducement to enter this operating lease, the Company received certain incentives such as rent abatement. Additionally, the lease provides



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HREF="#bg70602a_main_toc">Table of Contents





OPTELECOM-NKF, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007



8. Commitments and Contingencies (Continued)



for
scheduled rent increases. These lease incentives are being amortized over the lease period. Rent expense is being recognized on a straight-line basis.



        We
have a lease for office facilities located in the Netherlands that expires in March 2015, in France that expires in June 2009, and Spain which expires in April 2009. In the U.K. we
have a monthly lease for office facilities.



        As
of December 31, 2008, future net minimum rental payments required under capital and operating leases that have initial or remaining non-cancelable terms in excess
of one year are as follows:






































































































































































Year ended December 31, (Dollars in thousands):



 Operating  Capital  Total  

2009

 $1,374 $ $1,374 

2010

  1,269    1,269 

2011

  1,187    1,187 

2012

  1,157    1,157 

2013

  965     965 

Thereafter

  699    699 
        

Gross Payments

 $6,651 $ $6,651 

Less Amounts Representing Interst

       
        

Net Minimum Rental Payments

 $6,651 $ $6,651 




        Rent
expense was $1.1 million and $1.0 million for the years ended December 31, 2008 and 2007, respectively.



        Legal Proceedings—Optelecom-NKF is not involved in legal proceedings or litigation at this time.



These excerpts taken from the OPTC 10-K filed Mar 27, 2008.

8. Commitments and Contingencies

        Operating Leases—In March 2003, the Company began to occupy its corporate office and manufacturing facility located in Germantown, Maryland. As an inducement to enter this operating lease, the Company received certain incentives such as rent abatement. Additionally, the lease provides for scheduled rent increases. These lease incentives are being amortized over the lease period. Rent expense is being recognized on a straight-line basis.

43


OPTELECOM-NKF, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005

8. Commitments and Contingencies (Continued)

        In Europe we have leases for office and sales facilities located in the Netherlands that expires in March 2015, in France that expires in June 2009, and Spain which expires in April 2009. In the U.K. we have a monthly lease for office and sales facilities.

        As of December 31, 2007, future net minimum rental payments required under capital and operating leases that have initial or remaining non-cancelable terms in excess of one year are as follows:

Year Ended December 31 (Dollars in thousands):

  Operating
  Capital
  Total
2008   $ 1,361   $ 46   $ 1,407
2009     1,271         1,271
2010     1,198         1,198
2011     1,175         1,175
Thereafter     2,834         2,834
   
 
 
Gross Payments   $ 7,839   $ 46   $ 7,885
Less Amounts Representing Interest         1     1
   
 
 
Net Minimum Rental Payments   $ 7,839   $ 45   $ 7,884

        Rent expense was $1.1 million, $1.0 million, and $1.0 million for the years ended December 31, 2007, 2006, and 2005, respectively.

        Legal Proceedings—From time to time, Optelecom-NKF is involved in legal proceedings and litigation arising in the ordinary course of business. In management's opinion, the ultimate resolution of any such actions will not materially affect the Company's financial position or results of operations.

8. Commitments and Contingencies



        Operating Leases—In March 2003, the Company began to occupy its corporate office and manufacturing
facility located in Germantown, Maryland. As an inducement to enter this operating lease, the Company received certain incentives such as rent abatement. Additionally, the lease provides for scheduled
rent increases. These lease incentives are being amortized over the lease period. Rent expense is being recognized on a straight-line basis.



43








NAME="page_fs17601_1_44">










OPTELECOM-NKF, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005




8. Commitments and Contingencies (Continued)



        In Europe we have leases for office and sales facilities located in the Netherlands that expires in March 2015, in France that expires in June 2009, and Spain
which expires in April 2009. In the U.K. we have a monthly lease for office and sales facilities.



        As
of December 31, 2007, future net minimum rental payments required under capital and operating leases that have initial or remaining non-cancelable terms in excess
of one year are as follows:
































































































































Year Ended December 31 (Dollars in thousands):

 Operating
 Capital
 Total
2008 $1,361 $46 $1,407
2009  1,271    1,271
2010  1,198    1,198
2011  1,175    1,175
Thereafter  2,834    2,834
  
 
 
Gross Payments $7,839 $46 $7,885
Less Amounts Representing Interest    1  1
  
 
 
Net Minimum Rental Payments $7,839 $45 $7,884




        Rent
expense was $1.1 million, $1.0 million, and $1.0 million for the years ended December 31, 2007, 2006, and 2005, respectively.



        SIZE=2>Legal Proceedings—From time to time, Optelecom-NKF is involved in legal proceedings and litigation arising in the
ordinary course of business. In management's opinion, the ultimate resolution of any such actions will not materially affect the Company's financial position or results of operations.




This excerpt taken from the OPTC 10-K filed Mar 25, 2005.
7.   COMMITMENTS AND CONTINGENCIES

Operating LeasesIn March 2003, the Company began to occupy its corporate office and manufacturing facility located in Germantown, Maryland. As an inducement to enter this operating lease, the Company received certain incentives such as rent abatement. Additionally, the lease provides for scheduled rent increases. These lease incentives will be amortized over the lease period. Rent expense is being recognized on a straight-line basis.

Optelecom Europe, Ltd. has leases for office and sales facilities, which expire in June, 2006.

As of December 31, 2004, future net minimum rental payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year are as follows:

Year Ended
December 31:

 

 

 

 

 

2005

 

$

519,031

 

2006

 

512,105

 

2007

 

511,024

 

2008

 

525,617

 

2009

 

541,383

 

Thereafter

 

2,129,268

 

 

 

$4,738,428

 

 

Rent expense was $565,733, $530,478 and $263,642 in 2004, 2003 and 2002, respectively.

During 2004 and 2003, Optelecom leased office and laboratory equipment and a motor vehicle. These leases have terms ranging from one to five years and were recorded as operating and capital leases. The future minimum payments under these leases are $28,892.

Legal Proceedings—From time to time, Optelecom is involved in legal proceedings and litigation arising in the ordinary course of business. As of the date of this report Optelecom is not a party to any litigation or other legal proceeding that, in the opinion of management, could have a material adverse effect on our business, financial condition or results of operations.

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