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COMMITMENTS AND CONTINGENCIES
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12 Months Ended | |||||||||||||||||||||
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Jun. 30, 2014
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| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES |
NOTE 6 - COMMITMENTS AND CONTINGENCIES From time to time, we may be involved in litigation relating to claims arising out of our operations. As of June 30, 2014, we are not a party to any legal proceedings that are expected, individually or in the aggregate, to have a material adverse effect on our business, financial condition or operating results. Operating Leases The Company’s corporate headquarters totals 22,054 square feet and is located in Vista, California. Effective February 25, 2014, the Company entered into an amended lease for this facility with average monthly rent payments of approximately $12,130 per month. In conjunction with the amended lease facility, the Company paid a security deposit of $25,000, or approximately 2 months of rent. The monthly rent payments after 2014 will increase by 3% per year. The Company also subleases space to a related party, Epic Boats, on a month-to-month basis at a rate of 10% of lease expense. Total rent expense was approximately $77,000 and $161,000 for the fiscal years ended June 30, 2014 and 2013, respectively, net of sublease income.
Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows:
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