Note 6 — Commitments and Contingencies

Leases

Optex Systems Holdings leases its office and manufacturing facilities under a non-cancellable operating lease expiring March 31, 2021, in addition to maintaining several non-cancellable operating leases for office and manufacturing equipment.

On December 10, 2013 Optex Systems Holdings executed a lease amendment, renewing its Richardson, TX lease, effective as of December 10, 2013.  The terms of the office and manufacturing facilities lease are as follows:

Total expenses under the facility lease for the twelve months ended September 28, 2014 was $337 thousand and total expenses for manufacturing and office equipment was $20 thousand.  Total expenses under the facility lease agreements for the twelve months ended September 29, 2013 was $312 thousand and included $13 thousand related to a six month short term lease expiring in January, 2014. Total expenses for manufacturing and office equipment was $18 thousand.

As of September 28, 2014, the remaining minimum lease payments under the non-cancelable operating leases for equipment, office and facility space are as follows:

Pursuant to the terms of the recent amendment to the facilities lease, there was no base rent payment due from January 1, 2014 through March 31, 2014, and the total value of the rent abatement related to the lease amendment is $63.5 thousand. As of September 28, 2014 the unamortized deferred rent was $91 thousand as compared to $44 thousand as of September 29, 2013. Deferred rent expense is recognized at a rate of $1.2 thousand per month over the life of the lease. Commencing on April 1, 2014 the base rent payment is $21.2 thousand per month.