Commitment And Contingencies

3 Months Ended

Sep. 30, 2011

Commitment And Contingencies [Abstract]

Commitment And Contingencies

Note 13 – Commitment and Contingencies

Certain Compensation and Employment Agreements

The Company has entered into employment agreements with each of its executive officers. As of September 30, 2011, these employment agreements provided for, among other things, annual base salaries in an aggregate amount of not less than $1,019, from that date through fiscal 2013. This amount does not reflect the extension of the terms of employment agreements for four of these executive officers, effective October 21, 2011, each pursuant to a Mutual Consent to Extend Employment Term between the Company and such executive officer, as disclosed by the Company in its current report on Form 8-K filed with the Securities and Exchange Commission on October 26, 2011.

Purchase Commitments

As of September 30, 2011, the Company had outstanding non-cancelable and cancelable purchase commitments in the amount of $2,506 related to inventory, capital expenditures and other goods and services.

Research and Development Contractual Obligations

Under the Company's Development and Regulatory Services Agreement with The Spectranetics Corporation, as amended, the Company's future contributions are limited to a maximum amount of $2,750 toward the expenses associated with clinical studies to obtain approval from the FDA for certain next-generation endovascular products, which is reduced by the total cumulative expenses incurred through September 30, 2011 of approximately $30.

The Company has entered into other research and development service agreements with certain other customers, pursuant to which the Company is to share certain regulatory and clinical costs associated with future research and development activities. The amounts and timing of any such future payment obligations cannot currently be determined. Research and development costs, if any, under these agreements will be expensed as they are incurred.

Cost Method Investment Obligations

The Company has a commitment to make an additional investment in Orteq of approximately 637 British Pounds in preferred shares of Orteq which is payable in U.S. Dollars. As of the date the Company entered into the investment agreement, the Company estimated the future payable amount to approximate $1 million; however, this future amount is dependent upon the future exchange rate in effect at the date of the additional investment, upon the occurrence of future events specified within the investment agreement with Orteq. Pursuant to an ancillary agreement between the Company and Orteq, the Company has the option to convert its cash advance into preferred shares to satisfy this obligation under the investment agreement. See Note 7 for additional information.

Nerites Purchase Price Obligations

Pursuant to the terms of the asset purchase agreement entered into with Nerites, the Company held back $3.0 million of the purchase price as security for certain potential indemnification obligations of Nerites. The Company will release this $3.0 million of the acquisition purchase price to Nerites in increments of $1.5 million on each of the first and second anniversaries of the acquisition date, to the extent that the hold-back amount is not applied toward such indemnification obligations. See Note 5 for additional information.

Norian Purchase Price Obligation

Pursuant to the terms of the asset purchase agreement entered into with Norian, the Company is required to pay the remaining $14 million of the purchase price on the earlier of the date on which the transfer of the manufacturing operations from the purchased West Chester, Pennsylvania facility to the Company's corporate headquarters facility located in Exton, Pennsylvania has been completed or the 18-month anniversary of the date of acquisition. See Note 5 for additional information.

Operating Lease Commitments

As a result of the Company's asset acquisition of Nerites, the Company became party to leased space in Madison, Wisconsin, as well as a lease for office equipment. As of September 30, 2011, the Company's minimum future annual rental commitment under non-cancelable operating leases related to Nerites was $86.

Pursuant to the Company's acquisition of certain assets of Norian, the Company entered into an 18-month sublease agreement with Synthes to rent the manufacturing space in the Company's West Chester, Pennsylvania facility. As of September 30, 2011, the Company's minimum future annual rental commitment under non-cancelable operating leases related to Norian was $910.

As of September 30, 2011, the Company's total minimum future annual rental commitment under non-cancelable operating leases was $996.