COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2016

COMMITMENTS AND CONTINGENCIES [Abstract]

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Operating Leases: The Company leases 128,857 square feet of space in Houston, Texas. The Company recognizes escalating rental payments that are quantifiable at the inception of the lease on a straight-line basis over the lease term. The Houston leases expire from February 2020 to August 2021 with options to renew the Company’s leases for warehouses for 5 years and for office space for 10 years.

The Company also leases 45,480 square feet of space in Pennsylvania, including 40,000 square feet which the Company plans to utilize as a fully-permitted facility to house a treatment and distribution facility. The Company’s Pennsylvania lease expires in 2021 with an option to renew the lease for ten years.

Rent expense for the fiscal years ended June 30, 2016, 2015 and 2014 was $1.5 million, $1.3 million and $1.3 million, respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2016 are as follows (in thousands):

	Year Ended June 30,
	2017		2018		2019		2020		2021		Thereafter
Operating lease obligations	$	1,137	$	1,144	$	1,159	$	1,104	$	341	$	28

Legal Settlement: On June 30, 2014, the Company entered into an agreement to settle its claims against the United States government and various agencies related to the January 2012 termination of the Company’s February 2009 contract with the Centers for Disease Control and Prevention (“CDC”). The settlement agreement resulted in a cash payment of $1.5 million by the government, which was received by the Company in July 2014.

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