Note 14 - 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 2018. Rent expense for the three months ended June 30, 2017 and 2016 was $7,350 and $6,950, respectively. Rent expense for the six months ended June 30, 2017 and 2016 was $14,700 and $13,700, respectively.

WCI rents approximately 3,000 of office and warehouse space in Tempe, Arizona under an operating lease expiring in January 2018. Rent expense for the three months ended June 30, 2017 and 2016 was $6,633 and $6,633, respectively. Rent expense for the six months ended June 30, 2017 and 2016 was $11,055 and $13,266, 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 June 30, 2017 and 2016 was $43,778 and $42,903, respectively. Vehicle lease expense for the six months ended June 30, 2017 and 2016 was $87,159 and $80,388, 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 June 30, 2017 and 2016 was $379 and $379, respectively. Equipment lease expense for the six months ended June 30, 2017 and 2016 was $758 and $1,018, respectively.

The approximate remaining annual minimum lease payments under the non-cancelable operating leases existing as of June 30, 2017 with original or remaining terms over one year were as follows: