NOTE 12 – Commitments and Contingencies

Leases

The Company leases land, facilities, and equipment under various non-cancellable operating lease agreements expiring through 2022, and contain various renewal options. Rent expense was $1.7 million and $1.4 million for the years ended June 30, 2018 and 2017, respectively. The Company also leases equipment and a building under non-cancellable capital lease agreements expiring through 2024. The capital leases have interest rates ranging from 2.95% to 7.65%.

At June 30, 2018, approximate future rental commitments were as follows (in thousands):


June 30,	Capital Leases		Operating Leases
2019	$	1,629	$	2,728
2020		474		2,157
2021		269		1,629
2022		167		974
2023		160		71
Thereafter		48		—
Total minimum lease payments		2,747	$	7,559
Amount representing interest		(239)
Present value of total minimum lease payments		2,508
Current portion		(1,429)
Capital lease obligation, net of current portion	$	1,079

Business Interruption Claim

During the third quarter of fiscal 2017, Kecy experienced a wind-generated power disruption that temporarily halted production for several days and severely damaged key equipment. The Company is insured for these business interruption and equipment repair costs and filed an insurance claim with its insurance provider. The estimated loss of $0.8 million was covered by insurance and $0.4 million was collected during the fourth quarter of fiscal 2017. The remaining $0.4 million is recorded as an insurance claim receivable at June 30, 2017. There was no receivable outstanding at June 30, 2018.

Legal Proceedings

From time to time, the Company is a party to various litigation matters incidental to the conduct of its business. The Company is not presently a party to any legal proceedings, the resolution of which, management believes, would have a material adverse effect on its business, operating results, financial condition or cash flows.