Giga-tronics Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 16 - Commitments and Contingencies

Note 16 - Commitments and Contingencies

12 Months Ended

Mar. 25, 2017

Commitments and Contingencies Disclosure [Text Block]

16	Commitments and Contingencies

The Company leased a

47,300

square foot facility located in San Ramon, California that expired in

April 2017.

January 5, 2017,

the Company entered a

seventy-seven

-month commercial building lease agreement for a

23,873

square feet facility in Dublin, California. The new lease began on

April 1, 2017.

The Company’s operations were in the San Ramon facility as of

March 25, 2017.

The Company also leases certain other equipment under operating leases.

Total future minimum lease payments under the new building lease and certain equipment are as follows. Fiscal year (Dollars in thousands) Fiscal year (Dollars in thousands)

Fiscal year (Dollars in thousands) Fiscal year (Dollars in thousands)
2018		421
2019		436
2020		450
2021		464
Thereafter		1,169
Total	$	2,940

The Company leases certain equipment under capital leases that expire through

May 2021.

Capital leases with costs totaling

$249,000

and

$249,000

are reported net of accumulated depreciation of

$61,000

and

$32,000

March 25, 2017

and

March 26, 2016,

respectively.

Total future minimum lease payments under these capital leases are as follows.

Fiscal year (Dollars in thousands)	Principal		Interest		Total
2018	$	50	$	19	$	69
2019		52		12		64
2020		40		5		45
2021		23		1		24
Total	$	165	$	37	$	202

The Company is committed to purchase certain inventory under non-cancelable purchase orders. As of

March 25, 2017,

total non–cancelable purchase orders were approximately

$541,000

and are scheduled to be delivered to the Company at various dates through

March 2018.