Note 8 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Disclosure Text Block Supplement [Abstract]

Legal Matters and Contingencies [Text Block]

8.     COMMITMENTS AND CONTINGENCIES

Leases – We have noncancellable operating leases for offices and data centers expiring at various dates through April 2017. Future minimum lease payments are as follows:

Year ended December 31,
(in thousands)
2014	$	465
2015		194
2016		60
2017		20
Total minimum lease payments	$	859

The above future minimum lease payments include $659,000 payable to a related party. See Note 11 for further discussion.

Rental expense for leased facilities and equipment related to continuing operations amounted to $467,000 in each of the years ended December 31, 2013 and 2012. Non-affiliated companies sublease space from the company. In the years ended December 31, 2013 and 2012, respectively, we received $27,000 and $33,000 in sublease rental income which reduced our rental expense during these years.

Legal Matter – In April 2013, Clearwater Environmental Services (“CES”) asserted a claim against ChemFree for additional sales commission (of an unspecified amount but in excess of $1 million) that CES alleges is owed to it pursuant to a sales agreement that expired October 31, 2012. The company believes that all amounts due to CES have been paid in full in accordance with the terms of the sales agreement and intends to vigorously defend against this claim. The dispute is now the subject of arbitration proceedings as required under the expired contract. Presently, the proceeding is in the discovery phase and an arbitration hearing on the matter is expected in the second quarter of 2014.

In the ordinary course of business, from time to time we may be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations.