Commitments and Contingencies

12 Months Ended

Mar. 31, 2013

Commitments and Contingencies

Commitments and Contingencies

4. Commitments and Contingencies

We currently lease 35,870 square feet of office and manufacturing space at our facilities at 6797 Winchester Circle, Boulder, Colorado under noncancelable lease agreements through July 31, 2014.  The minimum total future lease payment, by fiscal year, as of March 31, 2013 is as follows:

Fiscal Year	Amount
2014	$	320,080
2015	108,303
Total	$	428,383

Our minimum future equipment lease payments with General Electric Capital Corporation as of March 31, 2013, by fiscal year, are as follows:

Fiscal Year	Amount
2014	$	8,488

Rent expense for our facilities for the fiscal years ended March 31, 2013 and 2012 was $293,830 and $263,597, respectively. Rent expense for our equipment for the fiscal years ended March 31, 2013 and 2012 was $101,873 and $101,873, respectively.

On May 10, 2012, we signed an amendment to our credit facility agreement with Silicon Valley Bank, effective May 10, 2012. The terms of the credit facility include a line of credit for $2,000,000 for two years at an interest rate calculated at the prime rate plus 1.25%, subject to increase upon a default.

Our borrowing under the credit facility is limited by our eligible receivables and inventory at the time of borrowing. The credit facility is secured by all tangible and intangible assets, whether now owned or hereafter acquired, wherever located. As of March 31, 2013 we had no borrowings from the credit facility. As of March 31, 2013 under our eligible receivables and inventory limit, we had an additional approximately $997,000 available to borrow.

We are subject to regulation by the United States Food and Drug Administration (“FDA”). The FDA provides regulations governing the manufacture and sale of our products and regularly inspects us and other manufacturers to determine our and their compliance with these regulations. As of March 31, 2013, we believe we were in substantial compliance with all known regulations. FDA inspections are conducted periodically at the discretion of the FDA. We were last inspected in December 2012 and were notified of five observations from that inspection, none of which we believe to be material.

Our obligation with respect to employee severance benefits is minimized by the “at will” nature of the employee relationships. Our total obligation as of March 31, 2013 with respect to contingent severance benefit obligations is less than $123,980.