2.4.0.8060400 - Disclosure - Commitments and Contingenciestruefalsefalse1falsefalsefalsec20120401to20130331http://www.sec.gov/CIK0000890846duration2012-04-01T00:00:002013-03-31T00:00:001true1us-gaap_CommitmentsAndContingenciesDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div><div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: times new roman; width: 100%;"><tr valign="top"><td align="right" style="width: 18pt;"><div style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">4.  </div></td><td><div style="font-size: 10pt; font-family: times new roman; font-weight: bold; text-align: justify; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">Commitments and Contingencies</div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-weight: bold; display: inline;">Royalties.</font>   We received an absolute assignment of a patent relating to the Macroplastique Implantation System, in return for a royalty of 10 British Pounds for each unit sold during the life of the patent.  Under the terms of an agreement with some former officers and directors of our company, we pay royalties equal to five percent of the net sales of certain Macroplastique products, subject to a specified monthly minimum of $4,500.  The royalties payable under this agreement will continue until certain patents referenced in the agreement expire in 2015.  We recognized an aggregate of $353,000, $383,000 and $266,000 of royalty expense, under these agreements in fiscal 2013, 2012 and 2011, respectively.</div><div style="display: block; text-indent: 0pt;"><br /></div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-weight: bold; display: inline;">Purchase Requirements</font>.  In our normal course of business we have commitments, generally for periods of less than one year, to purchase from various vendors finished goods and manufacturing components under issued purchase orders.  As of March 31, 2013 payments of our contractual obligations for purchase commitments within the next twelve months are $281,000.</div><div style="display: block; text-indent: 0pt;"><br /></div><div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-weight: bold; display: inline;">Operating Lease Commitments.</font>  We lease office, warehouse, and production space under operating lease agreements, which include escalating lease payments, and lease various automobiles for our European employees.  These leases expire at various times through August 2016.  At March 31, 2013, the approximate future minimum lease payments in subsequent fiscal years under noncancelable operating leases with an initial term in excess of one year are as follows:</div><div style="display: block; text-indent: 0pt;"><br /></div><div><div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: times new roman; width: 100%;"><tr bgcolor="#cceeff"><td align="left" valign="bottom" style="width: 88%;"><div><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">2014</div></div></td><td align="right" valign="bottom" style="font-size: 10pt; font-family: times new roman; display: inline; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div>$</div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: right; width: 9%;"><div>233,000</div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td></tr><tr bgcolor="white"><td align="left" valign="bottom" style="width: 88%;"><div><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">2015</div></div></td><td align="right" valign="bottom" style="font-size: 10pt; font-family: times new roman; display: inline; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: right; width: 9%;"><div>83,000</div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" style="width: 88%;"><div><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">2016</div></div></td><td align="right" valign="bottom" style="font-size: 10pt; font-family: times new roman; display: inline; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: right; width: 9%;"><div>41,000</div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td></tr><tr bgcolor="white"><td align="left" valign="bottom" style="width: 88%;"><div><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">2017</div></div></td><td align="right" valign="bottom" style="font-size: 10pt; font-family: times new roman; display: inline; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: right; width: 9%;"><div>3,000</div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; text-align: left; width: 1%;"><div> </div></td></tr><tr bgcolor="#cceeff"><td valign="bottom" style="font-size: 10pt; font-family: times new roman; padding-bottom: 2px; width: 88%;"><div></div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; padding-bottom: 2px; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 2px solid; text-align: left; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 2px solid; text-align: right; width: 9%;"><div> </div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 2px solid; text-align: left; width: 1%;"><div> </div></td></tr><tr bgcolor="white"><td valign="bottom" style="font-size: 10pt; font-family: times new roman; padding-bottom: 4px; width: 88%;"><div></div></td><td align="right" valign="bottom" style="font-size: 10pt; font-family: times new roman; padding-bottom: 4px; width: 1%;"><div> </div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 4px double; text-align: left; width: 1%;"><div>$</div></td><td valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 4px double; text-align: right; width: 9%;"><div>360,000</div></td><td nowrap="nowrap" valign="bottom" style="font-size: 10pt; font-family: times new roman; border-bottom: black 4px double; text-align: left; width: 1%;"><div> </div></td></tr></table></div></div><div style="display: block; text-indent: 0pt;"><br /></div></div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Total operating lease expenses were $252,000, $271,000 and $249,000 in fiscal 2013, 2012 and 2011, respectively.</div><div style="display: block; text-indent: 0pt;"><br /></div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-weight: bold; display: inline;">Employment Agreements.</font>  We have entered into employment agreements with certain officers, the terms of which, among other things, specify a base salary subject to annual adjustments by mutual agreement of the parties, and a severance payment to the employee upon employment termination without cause.  We provide for various severance amounts payable under the agreements after employment termination.  Contemporaneously with the execution of their employment agreement, some of the officers executed an "Employee Confidentiality, Inventions, Non-Solicitation, and Non-Compete Agreement."  This agreement prohibits the employee from disclosing confidential information, requires the employee to assign to us without charge all intellectual property relating to our business which is created or conceived during the term of employment, prohibits the employee from encouraging employees to leave our employment for any reason and prohibits competition with us during the term of employment and for a specified term thereafter.</div><div style="display: block; text-indent: 0pt;"><br /></div><div style="font-size: 10pt; font-family: Times New Roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-weight: bold; display: inline;">Product Liability.</font>  The manufacture and sale of medical devices exposes us to significant risk of product liability claims, some of which may have a negative impact on our business.  Any defects or risks that we have not yet identified with our products may give rise to product liability claims.  Our existing $10 million of worldwide product liability insurance coverage may be inadequate to protect us from liabilities we may incur or we may not be able to maintain adequate product liability insurance at acceptable rates.  If a product liability claim or series of claims is brought against us for uninsured liabilities or in excess of our insurance coverage and it is ultimately determined that we are liable, our business could suffer.</div><div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><br /></div></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for commitments and contingencies.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249
Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349
Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308
Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.
false0falseCommitments and ContingenciesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://uroplasty.com/role/CommitmentsAndContingencies12