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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS
 3 Months Ended
Mar. 31, 2016
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, where we are obligated to pay $9,277 per month for the lease expiring June 14, 2019. The lease is for 3,650 square feet of office space.

 

In October 2015, pursuant to our acquisition of Bovie Bulgaria, we are obligated to pay $6,350 per month for the lease expiring on December 31, 2016.

 

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, 2016 for the calendar years ended December 31, 2016 and 2017 (in thousands):

 

2016   $ 187  
2017     114  
Thereafter     267  
Total   $ 568  

 

Rent expense approximated $45,050 and $27,000 for the three month periods ending March 31, 2016 and 2015, respectively.

 

Other future contractual obligations for other 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):

 

    Year Ending December 31,  
Description   2016     2017  
Purchase commitments   $ 3,539     $ -  
Mortgage debt     239       2,874  
Total   $ 3,778     $ 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 61.1% and 65.6% of revenues for the three months ended March 31, 2016 and 2015 respectively. For the three months ended March 31, 2016, McKesson, NDC, and Medline accounted for 20.2%, 10.5%, and 9.5% of our sales, while for the same three month period in 2015, McKesson, NDC, and Medline accounted for 18.9%, 13.8% and 11.0% of our sales.