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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS
 6 Months Ended
Jun. 30, 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 June 30, 2015 for the calendar years ended December 31, 2015 and 2016 (in thousands): 

 

2015    $ 53  
2016      111  
Thereafter      378  
Total    $ 542  

 

Rent expense approximated $52,925 and $16,000 for the six month period ending June 30, 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    $ 3,801     $ -     $ -  
Long-term debt      239       239       2,814  
Total    $ 4,040     $ 239     $ 2,814  

 

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 57.1% and 60.7% of revenues for the six months ended June 30, 2015 and 2014 respectively. For the six months ended June 30, 2015, McKesson, and NDC accounted for 17.7% and 13.2% of our sales, while for the same six month period ended in 2014, NDC accounted for 10.5% of our sales.