Note 7 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2016

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, September 2016 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:

2017		428
2018		305
2019		260
Total	$	993

Rent expense was $657 and $652 for the years ended June 30, 2016 and 2015, respectively.

Financial Covenants

Effective September 30, 2015, the Company entered into a Fifth Amended and Restated Technology License and Escrow Agreement with Cord Blood Registry Systems, Inc. which modified the financial covenant that the Company must meet in order to avoid an event of default: cash balance and short-term investments net of debt or borrowed funds that are payable within one year of not less than $2,000 must be maintained. The Company is in compliance with this financial covenant as of June 30, 2016.

Employee

and Severance

Agreements

As of June 30, 2016, the Company had employment agreements in place with two of its key executives. The agreements provide, among other things, for the payment of twelve to twenty-four months of severance compensation for termination under certain circumstances. With respect to these agreements at June 30, 2016, potential severance amounted to $1,147.

In September 2015, in connection with the resignation of the Company’s President, the Company and the President entered into a general release and waiver agreement in which the Company agreed to make severance payments over 18 months as long as the President actively abided by the terms of the agreement. As of June 30, 2016, approximately $265 remained to be paid out under this agreement.

Contingencies

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, 2016, 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,
	2016			2015
Beginning balance	$	627		$	498
Warranties issued during the period		97			258
Settlements made during the period		(287	)		(168	)
Changes in liability for pre-existing warranties during the period		129			39
Ending balance	$	566		$	627