Capitalized lease obligations - The Company leases vehicles under non-cancelable capital lease agreements with a cost of $77,470 for the years ended October 31, 2018 and 2017 (accumulated amortization of $21,163 and $5,668 as of October 31, 2018 and 2017, respectively). Amortization expense for vehicles under non-cancelable lease agreements amounted to $15,495 and $22,053 for the years ended October 31, 2018 and 2017, respectively. The following is a schedule, by year, of future minimum lease payments under the capitalized leases together with the present value of the net minimum lease payments at October 31, 2018: Twelve months ending October 31, Amount 2019 $ 15,502 2020 15,502 2021 15,502 2022 17,397 Total future minimum lease payments 63,903 Less: Amount of imputed interest ( 4,108 ) Present value of future minimum lease payments 59,795 Current portion of obligation under capital leases (13,768 ) Long-term portion $ 46,027 Operating facilities - The Company conducts its administrative operations in office facilities which are leased under two different rental agreements. In July 2016, with effective date January 1st, 2016, the Company renegotiated a lease agreement with an affiliate of our Chairman of the Board, for the headquarters and laboratory testing facilities in Dorado, Puerto Rico. The renegotiated lease incorporates additional space for the laboratory testing facility expansion. The lease agreement is for a five-year term, with a renewal option of five years, and monthly rental payments of $30,316 for the term of the lease agreement and renewal option. The lease agreement also requires the payment of utilities, property taxes, insurance and expenses incurred by the affiliate in connection with the maintenance of common areas. As part of the Laboratory Assets transaction (see Note B), this lease was amended to (i) allow the Company to sublease to the Laboratory Assets purchaser (the Subtenant) the laboratory leased space area, and (ii) if Subtenant defaults under the Sublease or terminates the Sublease, the Company shall have the option to either (a) terminate the Sublease and re-occupy the Subleased Premises pursuant to the terms of the Lease, or (b) modify the Lease to terminate the Lease for the portion of the Premises that is the Subleased Premises only, without penalty. Simultaneously with the Laboratory Assets sale closing transaction the Company and Subtenant entered into a sublease agreement (the Sublease) with an initial term commencing at Sales Closing Date through December 31, 2019. The Sublease contains a one-year renewal option, followed by a second renewal option of five years. Provided a six months notice of termination, Subtenant may terminate without penalty the Sublease within the term of the second renewal option of five years. The Sublease calls for monthly rental payments of $17,950 each, and a 5% annual rent increase beginning on the second lease year and thereafter until the expiration of the Sublease initial term or the first renewal option. No rent increase will apply to the five-year term renewal option if exercised. The Sublease requires the payment of utilities, property taxes, insurance and common area expenses incurred and/or allocated to Subtenant. The Company maintains an office facility in Madrid, Spain. The facility is under a month-to-month lease with monthly payments of approximately $1,000. The Company leases certain apartments as dwellings for employees. The leases are under short-term lease agreements and usually are cancelable upon 30-day notification. Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of October 31, 2018 are as follows: Amount 2019 $ 363,800 2020 363,800 2021 60,633 Total minimum future rental payments $ 788,233 Total minimum future rental payments have not been reduced by approximately $252,000 of sublease rentals to be received in the future under non-cancelable subleases. Rent expense for the years ended October 31, 2018 and 2017 was approximately $389,000 and $413,000, respectively. Contingencies - In the ordinary course of business, the Company may be a party to legal proceedings incidental to the business. These proceedings are not expected to have a material adverse effect on the Companys business or financial condition.