11. Commitments and Contingencies

12 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

11. Commitments and Contingencies

The Company entered into a lease in August 2014 for its new Bohemia, New York premises through February 2025 which requires minimum annual rental payments plus other expenses, including real estate taxes and insurance. The future minimum annual rental expense, computed on a straight-line basis, is approximately $169,800 under the terms of the new lease. Rental expense for the Bohemia facility under its current and old lease amounted to approximately $199,400 in 2015 and $239,800 in 2014. Accrued rent, payable in future years, amounted to $46,700 and $18,700 at June 30, 2015 and 2014, respectively.

The Company is also obligated under an operating lease for its facility in Pittsburgh, Pennsylvania, which requires monthly minimum rental payments through November 2017, plus common area expenses. Total rent expense for the Pittsburgh facility was $99,000 and $95,000 for the fiscal years ended June 30, 2015 and 2014, respectively.

In addition, the Company’s new Torbal division was operating from a Clifton, New Jersey facility and as of mid-July 2014 moved to a significantly smaller office facility in Oradell, New Jersey from which it performs its sales and marketing functions. The Company was obligated under a previous agreement to pay $24,000 for an early lease termination for the Clifton facility. Total rent expense for the New Jersey facilities, including the fee in 2014, was $25,700 and $47,900 for the years ended June 30, 2015 and 2014, respectively.

The Company’s approximate future minimum rental payments under all operating leases are as follows:

Fiscal Years
2016	$ 255,600
2017	264,000
2018	205,000
2019	174,000
2020	179,300
Thereafter	475,900
	$ 1,553,800

The Company has employment contracts with its President providing for an annual base salary of $157,100 and $154,000 for the fiscal years ending June 30, 2016 and 2015 and with its Executive Vice President providing for an annual base salary of $141,800 and $139,000 for the fiscal years ending June 30, 2016 and 2015, respectively. Both contracts also provide for discretionary performance bonuses. No bonuses were awarded for the fiscal year ended June 30, 2015 or 2014 to either executive except for a stock option granted to the Executive Vice President during the year ended June 30, 2014, valued at $3,500 using the Black-Scholes-Merton option pricing model.

The Company has an employment contract with the President of Altamira through June 30, 2016, which may be extended by mutual consent for an additional year. The contract provides for an annual base salary of $142,800 and $140,000 for each of the fiscal years ending June 30, 2016 and 2015, respectively, plus discretionary bonuses. No bonuses were awarded for the fiscal years ended June 30, 2015 or 2014, except for a stock option granted during the year ended June 30, 2014, valued at $3,500 using the Black-Scholes-Merton option pricing model.

The Company has an employment agreement dated February 2014 with the President of its Torbal Division which expires in February 2017, which may be extended by mutual consent for another two years. The contract provides for an annual base salary of $140,000 subject to increases commencing with the second year based on percentage increases in the Consumer Price Index (“CPI”) from the end of the immediately preceding year’s CPI plus discretionary bonuses. No bonuses were awarded during the fiscal years ended June 30, 2015 or 2014, however as part of the employment agreement, he was awarded a 4,000 and 2,000 share stock option during the years ended June 30, 2015 and 2014 valued at $7,100 and $3,900 using the Black-Scholes-Merton option pricing model, respectively. In addition, he is to be granted, subject to his continued employment in February 2016 and 2017 options for 5,000 shares and 6,000 shares, respectively.

The Company has a consulting agreement which expires on December 31, 2015 with an affiliate of the Chairman of the Board of Directors for marketing consulting services. The agreement provides that the consultant be paid a monthly fee of $3,600 for a certain number of consulting days as defined in the agreement. Stock options were granted to the Chairman of the Board of Directors valued at $8,700 during the year ended June 30, 2014. Consulting expense related to this agreement amounted to $43,200 and $50,100 for the years ended June 30, 2015 and 2014, respectively.

The Company has a consulting agreement which expires December 31, 2015 with another member of its Board of Directors for administrative services providing that the consultant be paid at the rate of $85 per hour. Consulting expense related to this agreement amounted to $4,300 and $5,700 for the fiscal years ended June 30, 2015 and 2014, respectively.