Note 5 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Operating Leases

The Company leases the Rancho Cordova, Emeryville and Gurgaon, India facilities pursuant to operating leases, which contain scheduled rent increases. The leases expire in May 2019, April 2020 and March 2018, respectively. The Company recognizes rent expense on a straight-line basis over the term of the facility lease. The annual future minimum lease payments for the Company’s non-cancelable operating leases are as follows:

2016		501
2017		541
2018		665
2019		629
2020		315
Total	$	2,651

Rent expense was $652 and $496 for the years ended June 30, 2015 and 2014, respectively.

Financial Covenants

On December 31, 2013, the Company entered into a Sale and Purchase Agreement with Cord Blood Registry (“CBR”) in which the Company will supply CBR with the AXP cord blood processing system and disposables. The term of the agreement is for 5 years with automatic two-year renewal options unless CBR provides a 6 month notice of non-renewal. Effective December 31, 2013, the Company entered into the Fourth Amended and Restated Technology License and Escrow Agreement to delete or reduce the financial covenants that the Company must meet in order to avoid an event of default to one financial covenant, to maintain a balance of cash and short-term investments net of debt or borrowed funds of not less than $2,000 at any month end.

Employee Agreements

As of June 30, 2015, the Company had employment agreements in place with three of its key executives. The agreements provide, among other things, for the payment of eighteen to twenty-four months of severance compensation for termination under certain circumstances. With respect to these agreements at June 30, 2015, potential severance amounted to $1,900.

Contingencies

Effective June 1, 2015, the Company, Harvest Technologies Corp. (Harvest) and Celling signed an agreement settling the complaint Harvest filed on October 24, 2012, against the Company and the counter complaint the Company and Celling asserted against Harvest. In the settlement agreement, the Company agreed to an immaterial settlement payment which was accrued during the quarter ended March 31, 2015. The Company and Celling also agreed not to make, sell, import or license the Res-Q product in the United States after May 31, 2016.

In the normal course of operations, the Company may have disagreements or disputes with customers, employees or vendors. Such potential disputes are seen by management as a normal part of business. As of June 30, 2015, management believes any liability that may ultimately result from the resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, operating results or cash flows.

Warranty

The Company offers a warranty on all of the Company’s non-disposable products of one to two years. The Company warrants disposable products through their expiration date. The Company periodically assesses the adequacy of the Company’s recorded warranty liabilities and adjusts the amounts as necessary.

Changes in the Company’s product liability which is included in other current liabilities during the period are as follows:

	For years ended June 30,
	2015			2014
Beginning balance	$	498		$	489
Warranties issued during the period		258			172
Settlements made during the period		(168	)		(104	)
Changes in liability for pre-existing warranties during the period		39			(59	)
Ending balance	$	627		$	498