XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.19.2

Lease Commitments | 12 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Lease Commitments | The Company has operating leases for its manufacturing and office space. At June 30, 2019, the Company has two lease agreements for its corporate headquarters and manufacturing facilities in Orlando, Florida. The first lease (the “Orlando Lease”) is for approximately 26,000 square feet, has a seven-year original term with renewal options, and expires in April 2022. 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 is one five-year extension option exercisable by the Company. The minimum rental rates for such additional extension option 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 Orlando Lease, as amended. On April 20, 2018, the Company entered into a lease agreement for an additional 12,378 square feet in Orlando, Florida (the “Orlando Lease II”). The Orlando Lease II provides additional manufacturing and office space near the Company’s corporate headquarters. The commencement date of the Orlando Lease II was November 1, 2018, and it has a four-year original term with one renewal option for an additional five-year term. The Company received a $420,000 tenant improvement allowance in fiscal 2015 with respect to the Orlando Lease. In fiscal 2019, the Company received a tenant improvement allowance of $309,450 with respect to the Orlando Lease II. These amounts are included in the property and equipment and deferred rent on the Consolidated Balance Sheets. Amortization of tenant improvements was approximately $284,000 as of June 30, 2019. The deferred rent is being amortized as a reduction in lease expense over the terms of the respective leases. As of June 30, 2019, the Company, through its wholly-owned subsidiary, LPOI, has a lease agreement for an office facility in Shanghai, China (the “Shanghai Lease”) for 1,900 square feet. The Shanghai Lease commenced in October 2015. During fiscal 2019, the Shanghai Lease was renewed for an additional one-year term, and now expires in October 2019. As of June 30, 2019, the Company, through its wholly-owned subsidiary, LPOIZ, has three lease agreements for manufacturing and office facilities in Zhenjiang, China for an aggregate of 55,000 square feet. The initial lease (the “Zhenjiang Lease I”) is for approximately 26,000 square feet, and had a five-year original term with renewal options. In fiscal 2019, the Company renewed the Zhenjiang Lease I and it now expires in June 2022. During fiscal 2018, another lease was executed for 13,000 additional square feet in this same facility (the “Zhenjiang Lease II”). The Zhenjiang Lease II has a 54-month term, and expires in December 2021. During fiscal 2019, LPOIZ entered into another lease agreement for manufacturing space near the existing facility, for an additional 16,000 square feet (the “Zhenjiang Lease III”). The Zhenjiang Lease III has a three-year term and expires in April 2022. At June 30, 2019, the Company, through its wholly-owned subsidiary ISP, has a lease agreement for a manufacturing and office facility in Irvington, New York (the “ISP Lease”) for 13,000 square feet. The ISP Lease, which is for a five-year original term with renewal options, expires in September 2020. As of June 30, 2019, the relocation of the operations formerly housed in this facility is complete and we have ceased use of this facility. See Note 20, Restructuring, to these Consolidated Financial Statements for additional information. At June 30, 2019, the Company, through ISP’s wholly-owned subsidiary ISP Latvia, has two lease agreements for a manufacturing and office facility in Riga, Latvia (the “Riga Leases”) for an aggregate of 23,000 square feet. The Riga Leases, each of which was for a five-year original term with renewal options, were set to expire in December 2019. During fiscal 2019, the Riga Leases were renewed, and now expire in December 2022. As of June 30, 2019, the Company has obligations under five capital lease agreements, entered into during fiscal years 2016, 2017, 2018 and 2019, with terms ranging from three to five years. The leases are for computer and manufacturing equipment, which are included as part of property and equipment in the accompanying Consolidated Balance Sheets. Assets under capital lease include approximately $2.0 million and $1.5 million in manufacturing equipment, with accumulated amortization of approximately $900,000 and $646,000 as of June 30, 2019 and 2018, respectively. Amortization related to assets under capital leases is included in depreciation expense. Rent expense totaled $1.7 million and $1.0 million during the years ended June 30, 2019 and 2018, respectively. For the year ended June 30, 2019, this includes an accrual of $467,000 in future lease payments due pursuant to the ISP Lease, which facility the Company ceased use of as of June 30, 2019. See Note 20, Restructuring, to these Consolidated Financial Statements for additional information. The approximate future minimum lease payments under capital and operating leases at June 30, 2019, including the aforementioned accrued but unpaid lease obligation for the ISP Lease, were as follows:
|  | Capital Leases |  |  | Operating Leases |
Fiscal year ending June 30, |  |  |  |  |  |
2020 |  | $ | 482,598 |  |  | $ | 1,093,000 |
2021 |  |  | 407,954 |  |  |  | 907,000 |
2022 |  |  | 231,783 |  |  |  | 777,000 |
2023 |  |  | 59,647 |  |  |  | 157,000 |
Total minimum payments |  |  | 1,181,982 |  |  | $ | 2,934,000 |
Less imputed interest |  |  | (137,274 | ) |  |  |  |
Present value of minimum lease payments included in capital lease obligations |  |  | 1,044,708 |  |  |  |  |
Less current portion |  |  | 404,424 |  |  |  |  |
Non-current portion |  | $ | 640,284 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration