(8) Commitments and Contingent Liabilities Operating Leases The Company has three main operating leases. The lease at 2500 Northwinds Parkway is for the Company's headquarters in Alpharetta, Georgia. The lease commenced in April, 2013 and expires in September, 2018. The lease includes an escalating base rent schedule; a seven month rent holiday and a tenant incentive towards leasehold improvements of approximately $ 0.1 million, which were recognized as a reduction in rent expense on a straight line basis over the term of the lease. The lease at 585 Blackburn Road, Notting Hill, Victoria, Australia relates to the main Biota laboratories. The lease commenced in September 2004 and was last amended in December 2007. The lease term expires on September 1, 2014 and the Company has the option at that time to extend this lease for a further term of five years at an agreed market rate. The lease at 597 Blackburn Road, Notting Hill, Victoria, Australia commenced on November 2007 and expired on July 30, 2013. Under the term of the lease, a security deposit of $ 0.1 million has been paid and has been recorded under  Other Assets  in the Consolidated Balance sheets. In accordance with the terms of the lease, the lessee has to restore the building to its original condition and the lessor can deduct costs from the security cost. Future minimum lease payments, in millions, under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2013 are: 2014 $ 0.5 2015 0.3 2016 0.3 2017 0.2 2018 0.1 Thereafter 0.1 Total minimum lease payments $ 1.5 Rent expense was $1.1 million, $0.8 million and $0.8 million for the fiscal years ended June 30, 2013, 2012 and 2011, respectively. The Company also has operating lease agreements for the Oxford, UK offices and office copier equipment under standard terms which are included in the minimum lease payment schedule above. Government Research Grants Grant funding is initially recognized as deferred income and released to revenue to match the cos