Clearfield, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note B - Commitments and Facilities

Note B - Commitments and Facilities

12 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

NOTE B – COMMITMENTS AND FACILITIES

Operating Leases:

The Company leases office and manufacturing facilities in Brooklyn Park, Minnesota for its ongoing operations. The lease term commenced on January 1, 2015. The Company also leases various pieces of office equipment. Certain of these leases have escalating rent payment provisions. We recognize rent expense under such leases on a straight-line basis over the term of the lease. For the years ended September 30, 2015, 2014 and 2013, total rent expense was $630,000, $505,000 and $450,000 respectively.

As of September 30, 2015, the future minimum lease payments required under operating lease agreements are as follows:

Year ending September 30		Operating leases
	2016	$	433,189
	2017		364,300
	2018		373,409
	2019		382,746
	2020		392,318
	Thereafter		1,852,117
	Total minimum lease payments	$	3,798,079

Share Repurchase:

On November 13, 2014, the Company announced that its board of directors had approved a stock repurchase program under which it will purchase up to $8 million of its outstanding shares of common stock. The program does not obligate Clearfield to repurchase any particular amount of common stock during any period. The repurchase will be funded by cash on hand. The repurchase program is expected to continue indefinitely until the maximum dollar amount of shares has been repurchased or until the repurchase program is earlier modified, suspended or terminated by the board of directors. As of September 30, 2015, the Company may repurchase up to $7,151,000 of its outstanding shares of common stock.