Commitments and Contingencies

12 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(10)        Commitments and Contingencies

Legal Matters and Routine Proceedings

The Company has settled complaints that had been filed with various states’ pharmacy boards in the past.  There can be no assurances made that other states will not attempt to take similar actions against the Company in the future.  The Company initiates litigation to protect its trade or service marks.  There can be no assurance that the Company will be successful in protecting its trade or service marks.  Legal costs related to the above matters are expensed as incurred.

Employment Agreements

On January 25, 2013, the Company amended the existing Executive Employment Agreement of Menderes Akdag, the Company’s President, Chief Executive Officer, and Director, and entered into Amendment No. 4 to the Executive Employment Agreement with Mr. Akdag.  The Agreement amended certain provisions of the Executive Employment Agreement as follows: the term of the Agreement is for three years, commencing on March 16, 2013; Mr. Akdag’s salary remained at $550,000 per year throughout the term of the Agreement, and Mr. Akdag was granted 108,000 shares of restricted stock.  The restricted stock was granted on March 16, 2013, in accordance with the Company’s 2006 Employee Equity CompensationRestricted Stock Plan and the restrictions lapse ratably over a three-year period.

Operating Lease

The Company leases its 65,300 square foot executive offices, warehouse facility, and customer service and pharmacy contact centers under a non-cancelable operating lease.  On January 29, 2010, the Company signed a sixth addendum to its existing lease extending the terms of the lease until May 31, 2015.  The Company is responsible for certain maintenance costs, taxes, and insurance under this lease.

The future minimum annual lease payments are as follows:

Years Ending March 31, (in thousands)
2015		794
2016		133
Total lease payments	$	927

Rent expense was $785,000, $767,000, and $745,000 for the years ended March 31, 2014, 2013 and 2012, respectively.