COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

NOTE 8

COMMITMENTS AND CONTINGENCIES

Dye Candy Company leases its office and manufacturing facility, located at 1307 South 59^th, St. Joseph, Missouri, from an entity owned by the Vice-President and Director of the Company. The lease term is from February 1, 2005 through March 31, 2025, with an option to extend for an additional term of five years, and currently requires payments of $6,500 per month. At the end of the first five years, the base rent may be increased an amount not greater than 30%, at the sole discretion of lessor and for each additional term of five years. Rental expense was $78,000 for each year ended June 30, 2016 and 2015. The amounts are included in cost of sales.

Future minimum lease payments under this lease are as follows:

Year ending June 30:
2017	$	78,000
2018		78,000
2019		78,000
2020		78,000
2021		78,000
Thereafter		292,500
	$	682,500

As of June 30, 2016, the Company had raw materials purchase commitments with six vendors totaling approximately $256,000.