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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS
 3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
NOTE 9. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

In March 2014, we entered into a lease for offices located in Purchase, New York. The lease is for 3,650 square feet of office space.

 

The following is a schedule of approximate future minimum lease payments under operating leases having remaining terms in excess of one year as of March 31, 2015 for the calendar years ended December 31, 2015 and 2016 (in thousands):

 

2015 $ 81  
2016   111  
Therafter   378  
Total $ 570  

  

Rent expense approximated $27,000 and $12,000 for the three month periods ending March 31, 2015 and 2014 respectively.

 

Other future contractual obligations for agreements with initial terms greater than one year and agreements to purchase materials in the normal course of business are summarized as follows (in thousands):

 

    Years Ending December 31,  
Description   2015     2016     2017  
Purchase commitments   $ 4,574     $ -     $ -  
Long-term debt     239       239       2,874  
Total   $ 4,813     $ 239     $ 2,874  

  

Litigation

 

In the normal course of business, we are subject, from time to time, to legal proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. If any of these matters arise in the future, it could affect the operating results of any one or more quarters.

 

We expense costs of litigation related to contingencies in the periods in which the costs are incurred.

 

Concentrations

 

Our ten largest customers accounted for approximately 65.6% and 58.7% of net revenues for the three months ended March 31, 2015 and 2014 respectively. For the three months ended March 31, 2015, McKesson, NDC, and Medline accounted for 18.9%, 13.8% and 11.0% of our sales, while for the same three month period ended in 2014, Arthrex accounted for 10.1% of our sales.