NOTE 14 COMMITMENTS AND CONTINGENCIES Licenses The Company has commitments under license agreements which are described in Note 5. Leases Operating leases primarily relate to the Company?s leases of laboratory and office space expiring in December 2020. The Company also has short term ?month to month? leases of office space. In March 2019, the Company entered into finance leases of laboratory equipment. The validation process for the leased equipment was completed and payments commenced in October 2019. The lease expires in September 2022, at which time the Company has the option to purchase the leased equipment for one dollar. The table below presents the future minimum lease payments under operating and finance leases: Year Ending June 30, Operating Finance Total 2020 $ 313,213 $ 589,635 $ 902,848 2021 210,855 748,361 959,216 2022 - 740,797 740,797 2023 - 167,719 167,719 2024 - - - Total cash payments 524,068 2,246,512 2,770,580 Less: Imputed interest (32,501) (255,332) (287,833) Total lease liability $ 491,567 $ 1,991,180 $ 2,482,747 Lease information for the three months ended September 30, 2019 is as follows: Three months ended September 30, 2019 Lease cost Finance lease cost Amortization of right of use assets $ 24,413 Interest on lease liabilities 4,413 Operating lease cost 104,404 Short-term lease cost 64,337 Total lease cost $ 197,567 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 4,413 Operating cash flows from operating leases 102,357 Financing cash flows from finance leases 24,413 Weighted average remaining lease term ? finance leases (Years) 2.94 Weighted average remaining lease term ? operating leases (Years) 1.25 Weighted average discount rate ? finance leases 8.11% Weighted average discount rate ? operating leases 9.69% Lease expense under operating leases was $51,777 for the three months ended September 30, 2018. Purchase commitments In March 2019, in connection with the lease of laboratory equipment described above, the Company agreed to purchase a fixed quantity of the consumables used by the equipment for a total of $1,386,710. The Company is obligated to pay for the consumables in twelve fixed monthly installments beginning in October 2019. At September 30, 2019, the Company had taken delivery of consumables worth $500,502. The amount due for goods that have been delivered is included in accrued liabilities on the consolidated balance sheet. Remaining payments due under the purchase commitment total $1,040,233 during the year ending June 30, 2020 and $346,477 during the year ending June 30, 2021. Legal proceedings On or about July 13, 2018, RTJ, LLC and two of its principals filed a lawsuit against Predictive Therapeutics LLC, Predictive Biotech, Inc., both subsidiaries of Predictive Technology Group, Inc., and Jack Turner, Jr., an employee of Predictive Biotech, Inc. The plaintiffs had acted in a distributor capacity. The relationship was terminated. Plaintiffs are alleging breach of contract, promissory estoppel, unjust enrichment, fraud, breach of fiduciary duty, defamation, false light, and tortious interference. Based on the information available to us, we do not believe any of the RTJ proceedings will have a material adverse effect on our business, results of operations, financial position or liquidity. Further, we deny the allegations in the complaint, have not discovered any evidence of wrongdoing with respect to the allegations and will vigorously defend against these allegations. On or about May 1, 2019, Surgenex, LLC and one of its principals filed a lawsuit against Predictive Therapeutics LLC, Predictive Biotech, Inc., both subsidiaries of Predictive Technology Group, Inc., and Doug Schmid, an employee of Predictive Biotech, Inc. In 2014 Surgenex contracted with Utah Cord Bank, Inc., a former employer of Doug Schmid, to assist Surgenex in the doing work relating to allograft tissue. Schmid was later hired by Predictive Biotech, Inc. In connection with Schmid?s employment with Predictive Biotech, Surgenex has filed a lawsuit alleging unjust enrichment, conspiracy, conversion, tortious interference with contractual and business relations, violations of trade secrets act, and other claims. Based on the information available to us, we do not believe the Surgenex proceedings will have a material adverse effect on our business, results of operations, financial position or liquidity. Further, we deny the allegations in the complaint, have not discovered any evidence of wrongdoing with respect to the allegations and will vigorously defend against these allegations. On or about July 12, 2019, Predictive Technology Group, Inc. and Predictive Therapeutics, LLC, a subsidiary of Predictive Technology Group, Inc. filed a lawsuit against Michael Schramm. Schramm had previously acted as our patent agent. While acting as our patent agent, Schramm entered into an agreement to sell us certain patents and patent applications in consideration for equity securities. Schramm represented that he owned all right, title and interest in and to the intellectual property. We were subsequently advised by the patent counsel who replaced Schramm that Schramm?s representation was false. The Company raised these concerns with Schramm, who did not provide satisfactory evidence addressing the concerns of our current patent counsel. We sued Schramm for breach of contract, conversion and on other legal theories and are seeking, among other things, rescission of the purchase and sale transaction. Schramm filed a counterclaim against us and Bradley C. Robinson, our Chief Executive Officer and Transfer Online, Inc., our transfer agent. Schramm is alleging he did not make any false representations. He is alleging, among other things, that various parties involved in the transaction committed breach of contract, conversion, violations of Nevada state law for failure to transfer securities, breach of fiduciary duty, tortious interference, and civil conspiracy. Based on the information available to us, we do not believe the Schramm proceedings will have a material adverse effect on our business, results of operations, financial position or liquidity. Further, we deny the allegations in the counterclaim, have not discovered any evidence of wrongdoing with respect to the allegations in the counterclaim and will vigorously prosecute our claims against Schramm. As of September 30, 2019, we did not record a liability related to these matters as it was determined that an unfavorable resolution is either not currently probable or that an amount or relevant range is not reasonably estimable, or both. However, litigation is inherently unpredictable and it is possible that losses may occur. Any unfavorable resolution of any of these matters could materially affect our consolidated financial position, cash flows, or results of operations. All legal costs associated with litigation are expensed as incurred.