COMMITMENTS AND CONTINGENCIES

Operating Leases: The Company operates in a number of locations across the U.S. including space for corporate offices in Houston, Texas. Sharps has manufacturing, assembly, storage, distribution and warehousing operations as well as two (2) fully-permitted facilities that house our processing and treatment operations. The Company owns one processing and treatment facility and leases all other spaces. The Company also leases a number of trucks and office equipment. The leases expire between fiscal years 2019 to 2024 with options to renew ranging from 1 years to 5 years.

Rent expense for the fiscal years ended June 30, 2019, 2018 and 2017 was $2.2 million, $2.0 million and $1.5 million, respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2019 are as follows (in thousands):



	Year Ended June 30,
	2020		2021		2022		2023		2024		Total
Operating lease obligations	$	2,059	$	1,322	$	532	$	155	$	38	$	4,106

On August 21, 2019, the Company amended the corporate office lease agreement pursuant to the lease agreement originally dated July 13, 2006. This fifth amendment to the lease extends the term of the lease from February 29, 2020 to February 28, 2025 and sets base rent amounts for the extended term of the lease (“Extended Term”). The blended base rent for the first year of the Extended Term is $14.00 per square foot with subsequent annual increases of 3%. The future minimum lease payments for the extended lease will be an additional $0.1 million, $0.3 million, $0.4 million, $0.4 million, $0.4 million and $0.3 million for fiscal years ending June 30, 2020, 2021, 2022, 2023, 2024 and 2025, respectively.

Performance Bonds: The Company utilizes performance bonds to support operations based on certain state requirements. At June 30, 2019, the Company had performance bonds outstanding covering financial assurance up to $1.0 million.

Other: From time to time, the Company is involved in legal proceedings and litigation in the ordinary course of business. In the opinion of management, the outcome of such matters is not anticipated to have a material adverse effect on the Company’s consolidated financial position or consolidated results of operations.