Commitments and Contingencies

3 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 14. COMMITMENTS AND CONTINGENCIES

Operating Leases

On July 23, 2014, the Company entered into an agreement with its landlord to extend the facilities lease by five years. The previous ten year lease was to expire on December 31, 2015. The agreement amends the lease to expire on December 31, 2020. The lease amendment is effective August 1, 2014 and includes a four month rental abatement in the amount of $117,660. In exchange for the rental abatement, the Company has agreed to make improvements to the facility totaling $123,505 within six months of August 1, 2014. As of September 30, 2015, the Company has completed $56,473 of the leasehold improvements. In addition, the monthly rent on the facility decreases from the current rent of $33,139 to $29,415 per month, beginning on December 1, 2014. Beginning January 1, 2015, the monthly rent is on an escalating schedule with the final year of the lease at $35,123 per month. The rent expense under this lease for the three months ended September 30, 2015 and 2014 was $88,120 and $88,779, respectively.

The Company also leases certain postage equipment under an operating lease.  The monthly lease is $104 per month and expires January 2017.

Future minimum lease payments under non-cancelable operating leases at September 30, 2015 are as follows:

Year ending June 30,
2016 (nine months)	$	279,064
2017		381,131
2018		391,496
2019		403,241
2020		415,338
Thereafter through 2020		210,738
Total minimum lease payments	$	2,081,008

Capital Leases

The Company has acquired equipment under the provisions of long-term leases. For financial reporting purposes, minimum lease payments relating to the equipment have been capitalized. The leased properties under these capital leases have a total cost of $287,104. These assets are included in the fixed assets listed in Note 5 - Equipment and Leasehold Improvements and include computers, software, furniture, and equipment. The capital leases have stated or imputed interest rates ranging from 7% to 21%.

The following is an analysis of the minimum future lease payments subsequent to September 30, 2015:

Year ending June 30,
2016 (nine months)	$	61,281
2017		67,538
2018		45,337
2019		29,391
2020		7,978
Future Minimum Lease Payments	$	211,525
Less Amount Representing Interest		(29,547	)
Present Value of Minimum Lease Payments		181,978
Less Current Portion		(64,784	)
Long-Term Obligations under Leases Payable	$	117,194

Equipment Notes Payable

The Company has acquired equipment under the provisions of long-term equipment notes. For financial reporting purposes, minimum note payments relating to the equipment have been capitalized. The equipment acquired with these equipment notes have a total cost of $189,329. These assets are included in the fixed assets listed in Note 5 - Equipment and Leasehold Improvements and include production equipment. The equipment notes have stated or imputed interest rates ranging from 10.5% to 11.3%.

The following is an analysis of the minimum future equipment note payable payments subsequent to September 30, 2015:

Year ending June 30,
2016 (nine months)	$	37,911
2017		50,548
2018		50,548
2019		48,301
2020		37,050
Future Minimum Note Payable Payments	$	224,358
Less Amount Representing Interest		(46,308	)
Present Value of Minimum Note Payable Payments		178,050
Less Current Portion		(33,238	)
Long-Term Obligations under Equipment Notes Payable	$	144,812

 Legal Proceedings

As of the date of this Quarterly Report on Form 10-Q, there are no material pending legal or governmental proceedings relating to our company or properties to which we are a party, and to our knowledge there are no material proceedings to which any of our directors, executive officers or affiliates are a party adverse to us or which have a material interest adverse to us.