10. COMMITMENTS AND CONTINGENT LIABILITIES

9 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

10. COMMITMENTS AND CONTINGENT LIABILITIES

a) Premises

The Company maintains its corporate functions, along with sales support, marketing and finance at a leased facility totaling approximately 16,228 square feet at 8601 Ranch Road 2222, Building II, Austin, Texas 78730. This lease expires on June 30, 2020 and has a current annual base rent, before reimbursable operating expenses, of approximately $235. The Company maintains its engineering and operating groups at a leased facility totaling 21,700 square feet at 14000 Summit Drive, Suite 900, Austin, Texas, 78728. This lease expires on August 31, 2019 and has a current annual base rent, before reimbursable operating expenses, of approximately $228. During fiscal year 2016 the Company occupied, with the consent of the landlord, a portion of the leased facility at 8601 RR 2222, Building II, Austin, Texas, where Motion Computing, Inc. (“Motion”) maintained its corporate functions, along with sales support, marketing, finance, engineering and operating groups, prior to the Company purchasing certain assets of Motion in April 2015. The Company did not assume Motion’s lease for the facility, and in fiscal year 2016 negotiated the terms of the new lease with the landlord, as described above, for a portion of Motion’s former space. The Company believes that its present facilities are suitable for its existing and planned operations. Rent expense for the three months ended December 31, 2017 and 2016, was $231 and $228, respectively. Rent expense for the nine months ended December 31, 2017 and 2016, was $712 and $510, respectively.

Minimum annual payments by fiscal year required under all of the Company’s operating leases are:

2018	$	190
2019		767
2020		504
	$	1,461

b) Purchase commitment

At December 31, 2017, the Company had purchase obligations for fiscal 2018 of approximately $15,669 related to inventory and product development items.

c) Litigation

The Company and its subsidiaries are involved in various claims and legal actions arising in the ordinary course of business. None of these actions, individually or in the aggregate, are expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

XPLORE TECHNOLOGIES CORP 10-Q