COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Operating Leases: The Company leases 119,489 square feet of space in Houston, Texas. The Company recognizes escalating rental payments that are quantifiable at the inception of the lease on a straight-line basis over the lease term. The leases expire from February 2020 to August 2020 with options to renew the Company’s leases for warehouses for 5 years and for office space for 10 years.

Rent expense for the fiscal years ended June 30, 2015, 2014 and 2013 was $1.3 million, $1.3 million and $1.2 million, respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2015 are as follows (in thousands):

	Year Ended June 30,
	2016		2017		2018		2019		2020		Thereafter
Operating lease obligations	$	743	$	846	$	852	$	867	$	814	$	113

The Company amended the corporate office lease agreement on August 5, 2015, to include an additional 9,368 square feet of space in Houston, Texas to expand corporate office space effective in November 2015. The future minimum lease payments for the new office space will be an additional $0.1 million, $0.2 million, $0.2 million, $0.2 million, $0.2 million and $0.1 million for fiscal years ending June 30, 2016, 2017, 2018, 2019, 2020 and thereafter, respectively.

Legal Settlement: On June 30, 2014, the Company entered an agreement to settle its claims against the United States government and various agencies related to the January 2012 termination of the Company’s February 2009 contract with the Centers for Disease Control and Prevention (“CDC”). The settlement agreement resulted in a cash payment of $1.5 million, which was received by the Company in July 2014.

Other: The Company is also involved in legal proceedings and litigation in the ordinary course of business. In the opinion of management, the outcome of such matters will not have a material adverse effect on the Company’s consolidated financial position or consolidated results of operations.