Capital Lease Commitments

3 Months Ended

Sep. 30, 2015

Leases [Abstract]

Capital Lease Commitments

10.    Capital Lease Commitments

We have operating leases for office space. At September 30, 2015, we have a lease agreement for our manufacturing and office facility in Orlando, Florida (the “Orlando Lease”). The Orlando Lease, which is for a seven-year original term with renewal options, expires April 2022 and expands our space to 25,847 square feet, including space added in July 2014. Minimum rental rates for the extension term were established based on annual increases of two and one half percent starting in the third year of the extension period. Additionally, there are two 3-year extension options exercisable by us. The minimum rental rates for such additional extension options will be determined at the time an option is exercised and will be based on a “fair market rental rate” as determined in accordance with the sixth lease amendment.

We received $420,014 in a leasehold improvement allowance in fiscal 2015. This amount is included in the property and equipment and deferred rent on the consolidated balance sheets. Amortization of leasehold improvements was $20,242 as of September 30, 2015.

As of September 30, 2015, we, through our wholly-owned subsidiary, LPOI, have a lease agreement for a manufacturing and office facility in Shanghai, China (the “China Lease”). The China Lease, which was extended for an additional two years after the expiration of the original five-year term, expires April 2016.

As of September 30, 2015, we, through our wholly-owned subsidiary, LPOIZ, have a lease agreement for a manufacturing and office facility in Zhenjiang, China (the “Zhenjiang Lease”). The Zhenjiang Lease, which is for a five-year original term with renewal options, expires March 2019.

During fiscal 2014 and 2015, we entered into four capital lease agreements, with three to five year terms, for computer and manufacturing equipment, which are included as part of Property and Equipment. Assets under capital lease include approximately $547,000 in computer equipment and software and manufacturing equipment, with accumulated amortization of approximately $100,000 as of September 30, 2015. Amortization related to capital leases is included in depreciation expense.

Rent expense totaled $152,720 and $83,902 during the three months ended September 30, 2015 and 2014, respectively.

The approximate future minimum lease payments under capital and operating leases at September 30, 2015 were as follows:

Fiscal year ending June 30,	Capital Leases			Operating Lease
2016	$	126,992		$	268,000
2017		169,322			356,000
2018		167,335			371,000
2019		39,000			371,000
2020		6,825			357,000
2021 and beyond		—			676,000
Total minimum payments		509,474		$	2,399,000
Less imputed interest		(62,224	)
Present value of minimum lease payments
included in capital lease obligations		447,250
Less current portion		166,454
Non-current portion	$	280,796