Page 35 - 2019 Pancake Supply Chain Co-op, Inc. Annual Report

CENTRALIZED SUPPLY CHAIN SERVICES, LLC
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2019 and 2018

NOTE 5 - COMMITMENTS AND CONTINGENCIES (Continued)

Rental expense for office space and certain office equipment under operating leases amounted to
approximately $251,000 and $221,000 for the years ended December 31, 2019 and 2018, respectively.
The Company has future minimum lease payment commitments through 2023.

Future minimum payments under the leases are as follows:

2020 $ 212,237
2021 177,204
2022 2,044
2023 1,022

$ 392,507

NOTE 6 - 401(k) PLAN

The Company maintains a defined contribution retirement plan under Section 401(k) of the Internal
Revenue Code. Employees with one year of service and who are at least 21 years of age are eligible to
participate in the plan. Once an employee becomes eligible, the plan entry date is the first day of month
after their one year anniversary date. Eligible employees may contribute up to 100% of pretax annual
compensation, not to exceed maximum dollar limits established by law. The Company matches dollar for
dollar up to the first 3% of employee contributions and 50% of the employee elective contributions between
3% and 5%. Employees are fully vested in the Company match. A five-year vesting schedule will be applied
to any additional discretionary match that is made. Company contributions to the plan were $215,241 and
$206,712 for the years ended December 31, 2019 and 2018, respectively.

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