COMMITMENTS AND CONTINGENCIES |
12 Months Ended | |
|---|---|---|
Jun. 30, 2015 | ||
| Commitments and Contingencies Disclosure [Abstract] | ||
| COMMITMENTS AND CONTINGENCIES |
NOTE 7 - COMMITMENTS AND CONTINGENCIES From time to time, we may be involved in litigation relating to claims arising out of our operations. We are currently a party to a legal proceeding arising from a work related injury. While we do not presently believe that the ultimate outcome of such proceedings will have a material adverse effect on our business, operating results or financial condition, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, it is possible that such ruling could have a material adverse impact on our business, operating results or financial condition in the period in which the ruling occurs. Our current estimates of the potential impact from such legal proceeding could change in the future. 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 a two year lease agreement for this facility with average monthly rent payments of approximately $12,000 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 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 $102,000 and $77,000 for the fiscal years ended June 30, 2015 and 2014, 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 approximately $100,000 for the year ending June 30, 2016 as, unless extended, the current lease is expiring on February 28, 2016. |