The Company is involved in environmental remediation and monitoring activities at its Randolph, Wisconsin manufacturing facility and accrues for related costs when such costs are determined to be probable and estimable. The Company currently utilizes a pump and treat remediation strategy, which includes semi-annual monitoring and reporting, consulting, and maintenance of monitoring wells. We expense these annual costs of remediation, which have ranged from

38,000

to $

131,000

per year over the past

five years

. The Company’s estimated liability for these costs was $

916,000

at both May

2020

and

2019

, measured on an

undiscounted

basis over an estimated period of

years; $

100,000

of the liability is recorded within current liabilities and the remainder is recorded within other

non-current

liabilities in the consolidated balance sheet. In fiscal

2019

, the Company performed an updated Corrective Measures Study (CMS) on the site, per a request from the Wisconsin Department of Natural Resources (WDNR), and is currently in discussion with the WDNR regarding potential alternative remediation strategies going forward. The Company believes that the current pump and treat strategy is appropriate for the site. At this time, the outcome in terms of approach and future costs is unknown, but a change in the current remediation strategy, depending on the alternative selected, could require an increase in the currently recorded liability, with an offsetting charge to operations in the period recorded.

The Company has agreements with unrelated third parties that provide for the payment of royalties on the sale of certain products. Royalty expense, recorded in sales and marketing, under the terms of these agreements was $2,524,000, $2,795,000 and $2,876,000 for fiscal years 2020, 2019 and 2018, respectively. Some of these agreements provide for guaranteed minimum royalty payments to be paid each fiscal year by the Company for certain technologies. Future minimum royalty payments are as follows: 2021—$182,000, 2022—$110,000, 2023—$105,000, 2024—$105,000 and 2025—$105,000.

We lease office and manufacturing facilities, vehicles and equipment under

non-cancelable

operating leases. Rent expense for fiscal years 2020, 2019 and 2018 was

1,373,000

, $

1,633,000

and $

1,083,000

respectively.

The Company is subject to certain legal and other proceedings in the

normal

course of business that, in the opinion of management, are not expected to have a material effect on its future results of operations or financial position.