Note 18 - 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 July 2019. Subsequent to June 30, 2018 the lease was renewed through August 2019. Rent expense for the three months ended June 30, 2018 and 2017 was $7,700 and $7,350, respectively. Rent expense for the six months ended June 30, 2018 and 2017 was $15,400 and $14,700, respectively.

WCI manages its Arizona and Texas business from its Tempe, Arizona location where it leases approximately 3,000 square feet of office and warehouse space under an operating lease expiring in January 2020. Rent expense for the three months ended June 30, 2018 and 2017 was $6,600 and $6,633, respectively. Rent expense for the six months ended June 30, 2018 and 2017 was $13,200 and $11,055, respectively.

WCI leases vehicles under a master fleet management agreement with initial terms of 4 years expiring through October 2021. Vehicle lease expense included in cost of sales in the condensed consolidated income statement for the three months ended June 30, 2018 and 2017 was $62,335 and $43,778, respectively. Vehicle lease expense for the six months ended June 30, 2018 and 2017 was $112,642 and $87,159, respectively.

WCI has two small operating leases on office equipment entered into in 2015 with terms of 5 years expiring in 2020.

WCI leases vehicles under a master fleet management agreement with initial terms of 4 years expiring through October 2021. Vehicle lease expense included in cost of sales in the condensed consolidated income statement for the three months ended June 30, 2018 and 2017 was $62,335 and $43,778, respectively. Vehicle lease expense for the six months ended June 30, 2018 and 2017 was $112,642 and $87,159, respectively.

WCI has two small operating leases on office equipment entered into in 2015 with terms of 5 years expiring in 2020.

The approximate remaining annual minimum lease payments under the non-cancelable operating leases existing as of June 30, 2018 with original or remaining terms over one year were as follows: