NOTE 9 – COMMITMENTS AND CONTINGENCIES
leases certain equipment under non-cancelable operating leases. Future minimum rental commitments under these leases at September 30, 2012 totaled $60,000 and are due over the next three years.
Total rental expense for the fiscal years ended September 30, 2012 and 2011 was $318,000 and $302,000, respectively.
The Company has various
pending litigation and other claims. Those claims which are made in the ordinary course of business may be covered in whole or in part by insurance, and if found against the Company, management does not believe these matters will have a material
effect on the Company’s financial position, results of operations or cash flows. Management has reviewed all litigation matters arising in the ordinary course of business and has made provisions, not deemed material, for any estimable losses
and expenses of litigation.