Note 16 - Commitments and Contingencies

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 16. COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases various facilities and offices throughout the world including the following subsidiary locations:

Gourmet Foods has operating leases for its office, factory and warehouse facilities located in Tauranga, New Zealand, as well as for certain equipment including vehicles. These leases are generally for

three

-year terms, with options to renew for additional

three

-year periods. The leases mature between

September 2019

and

August 2021,

and require monthly rental payments of approximately

US$11,278

translated to U.S. currency as of

March 31, 2019.

Brigadier leases office and storage facilities in Saskatoon and Regina, Saskatchewan with expiration dates in

May

and

June 2019.

The company expects to renew its leases on reasonable terms for an additional

three

years. The minimum lease obligations require monthly payments of approximately

US$4,572

translated to U.S. currency as of

March 31, 2019.

Original Sprout currently leases office and warehouse space in San Clemente, CA under a

three

-year lease agreement expiring or renewing at

March 1, 2021.

Minimum monthly lease payments are approximately

$7,837

with increases annually.

Wainwright leases office space in Walnut Creek, California under an operating lease which expires in

December 2024.

Minimum monthly lease payments are approximately

$12,000

with increases annually.

Future minimum consolidated lease payments for Concierge and its subsidiaries are as follows:

Year Ended June 30,	Lease Amount
2019	$	106,049
2020		375,823
2021		340,575
2022		198,719
2023		187,326
2024		100,952
Total minimum lease commitment	$	1,309,444

Additionally, Gourmet Foods entered into a General Security Agreement in favor of the Gerald O’Leary Family Trust and registered on the Personal Property Securities Register for a priority sum of

NZ$110,000

(approximately

US$74,854

) to secure the lease of its primary facility. In addition, a

NZ$20,000

(approximately

US$13,609

) bond has been posted through ANZ Bank and secured with a cash deposit of equal amount to secure a separate facilities lease. The General Security Agreement and the cash deposit will remain until such time as the respective leases are satisfactorily terminated in accordance with their terms. Interest from the cash deposit securing the lease accumulates to the benefit of Gourmet Foods and is listed as a component of interest income/expense on the accompanying Consolidated Statements of Operations.

Other Agreements and Commitments

USCF Advisers has entered into expense limitation agreements with

one

of the funds it manages under which USCF Advisers has agreed to waive, reimburse fees or pay fund expenses in order to limit the fund’s total annual operating expenses to certain threshold amounts. The USCF Commodity Strategy Fund expense limitation agreement remained in effect until

July 31, 2018

and limits fund expenses to

1.30%

and

0.95%

of the funds average daily net assets for the Class A and Class I shares classes, respectively. USCF Advisers

may

terminate the expense limitation agreements at any time upon

not

less than

90

days’ notice to the respective fund trust boards.

USCF manages 

four

funds which have expense waiver provisions, whereby USCF will reimburse funds when fund expenditure levels exceed certain thresholds amounts. As of

March 31, 2019,

and

June 30, 2018

the expense waiver payable was

$0.5

million and

$0.7

million, respectively. However, USCF has

no

obligation to continue such payments into subsequent periods.

Litigation

From time to time, the Company is involved in legal proceedings arising mainly from the ordinary course of its business. In management’s opinion, the legal proceedings are

not

expected to have a material effect on the Company’s financial position or results of operations.

Retirement Plan

Wainwright's wholly owned subsidiary USCF, has a

401

(k) Profit Sharing Plan covering its employees who are over

21

years of age and who have completed a minimum of

1,000

hours of service and have worked for USCF for

one

or more years. Participants

may

make contributions pursuant to a salary reduction agreement. In addition, USCF makes an annual safe harbor contribution. There were

no

annual profit sharing contributions paid during the

nine

months ended

March 31, 2019

and

2018.