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Lease Commitments
 12 Months Ended
Jun. 30, 2015
Leases [Abstract]  
Lease Commitments

11. Lease Commitments

 

The Company has operating leases for office space. At June 30, 2015, the Company has a lease agreement for its manufacturing and office facility in Orlando, Florida (the “Orlando Lease”). The Orlando Lease, which is for a seven-year original term with renewal options, expires April 2022 and expands our space to 25,847 square feet, including space added in July 2014. Minimum rental rates for the extension term were established based on annual increases of two and one half percent starting in the third year of the extension period. Additionally, there are two 3-year extension options exercisable by the Company. The minimum rental rates for such additional extension options will be determined at the time an option is exercised and will be based on a “fair market rental rate” as determined in accordance with the sixth lease amendment.

The Company received $420,014 in a leasehold improvement allowance in fiscal 2015. This amount is included in the property and equipment and deferred rent on the consolidated balance sheets. Amortization of leasehold improvements was $5,060 as of June 30, 2015.

As of June 30, 2015, the Company, through its wholly-owned subsidiary, LPOI, has a lease agreement for a manufacturing and office facility in Shanghai, China (the “China Lease”). The China Lease, which was for a two year extension on the five-year original term, expires April 2016.

 

As of June 30, 2015, the Company, through its wholly-owned subsidiary, LPOIZ, has a lease agreement for a manufacturing and office facility in Zhenjiang, China (the “Zhenjiang Lease”). The Zhenjiang Lease, which is for a five-year original term with renewal options, expires March 2019.

 

During fiscal 2014 and 2015, the Company entered into four capital lease agreements, with three to five year terms, for computer and manufacturing equipment, which are included as part of Property and Equipment. Assets under capital lease include approximately $547,000 in computer equipment and software and manufacturing equipment, with accumulated amortization of approximately $67,000 as of June 30, 2015. Amortization related to capital leases is included in depreciation expense.

 

Rent expense totaled $581,679 and $440,576 during the years ended June 30, 2015 and 2014, respectively.

 

The approximate future minimum lease payments under capital and operating leases at June 30, 2015 were as follows:

 

Fiscal year ending June 30,  Capital Leases  Operating Lease
 2016   $169,322   $341,000 
 2017    169,322    357,000 
 2018    167,335    372,000 
 2019    39,001    372,000 
 2020    6,825    357,000 
 2021 and beyond    —      676,000 
 Total minimum payments    551,804   $2,475,000 
    Less imputed interest    (75,090)     
 Present value of minimum lease payments included in capital lease obligations    476,714      
 Less current portion    166,454      
 Non-current portion   $310,260      

 

In July 2014, we negotiated a new lease on our Orlando facility which increased our rental space from 22,000 square feet to 25,847 square feet, or by 20%, thus reducing our rent expense by an estimated 25%. The term also was extended to April 2022. The future minimum lease payments above include this new lease.