Quarterly report pursuant to Section 13 or 15(d)

Lease commitments

Lease commitments

9 Months Ended

Sep. 30, 2016

Note 12 - Lease commitments

Operating Leases

Mentor currently rents approximately 2,000 square feet of office space under a one year lease in Ramona, California in San Diego County, expiring in May 2017. Rent expense for the three months ended September 30, 2016 and 2015 were $7,350 and $6,750, respectively. Rent expense for the nine months ended September 30, 2016 and 2015 were $21,050 and $19,850, respectively.

WCI rents approximately 3,000 of office and warehouse space in Tempe, Arizona under an operating lease expiring in January 2017. Rent expense for the three months ended September 30, 2016 and 2015 was $6,633 and $6,540, respectively. Rent expense for the nine months ended September 30, 2016 and 2015 was $19,899 and $19,620, respectively.

WCI leases vehicles under a master fleet management agreement with initial terms of 4 years expiring through July 2020. Vehicle lease expense is included in cost of sales in the condensed consolidated income statement. Vehicle lease expense for the three months ended September 30, 2016 and 2015 was $47,503 and $29,555, respectively. Vehicle lease expense for the nine months ended September 30, 2016 and 2015 was $127,891 and $82,091, respectively.

WCI entered into two operating leases for office equipment in 2015 which expire in February and April 2020. Equipment lease expense for the three months ended September 30, 2016 and 2015 was $379 and $380, respectively. Equipment lease expense for the nine months ended September 30, 2016 and 2015 was $1,397 and $758, respectively.

The approximate remaining annual minimum lease payments under the non-cancelable operating leases existing as of September 30, 2016 with original or remaining terms over one year were as follows:


Period ending		Rental
September 30,		Expense
2017	$	156,009
2018		93,928
2019		64,637
2020		28,664

	$	343,238