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Leases – CCRC leases various equipment and facilities under non-cancelable operating lease agreements expiring at various dates through 2025. The future minimum lease payments required under these lease agreements at June 30, 2017 are as follows:
Years Ending
2018 2019 2020 2021 2022 Thereafter
June 30
Child Care Resource Center, Inc. Notes to Financial Statements
Note 12 – Commitments and Contingencies
$
$
4,155,856 4,138,135 2,425,724
981,748 568,624 696,070
12,966,157
Rent expense for facilities includes common maintenance charges. Total rent expense for the years ended June 30, 2017 and 2016 was $4,220,026 and $3,918,894, respectively.
Note 13 – Temporarily Restricted Net Assets
Temporarily restricted net assets as of June 30, 2017 and 2016 were available to purchase equipment for the Business Center.
Note 14 – Subsequent Events
Subsequent events are events or transactions that occur after the statement of financial position date but before financial statements are available to be issued. CCRC recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of financial position, including the estimates inherent in the process of preparing the financial statements. CCRC does not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial position but arose after the statement of financial position date and before the financial statements are available to be issued.
CCRC purchased a property located at 250 Grand Cypress Avenue, Palmdale, California 93551 for $5,950,000 on August 31, 2017. CCRC entered into a loan agreement dated August 15, 2017 with Grandpoint Bank and California Enterprise Development Authority (CEDA) to finance the purchase of the property. The Lender (Grandpoint Bank) agreed to loan $5,355,000 in the form of issuer loan obligation to the Issuer (CEDA) and the Issuer (CEDA) agreed to lend the loan proceeds to the Borrower (CCRC).
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