NOTE 5 ? COMMITMENTS AND CONTINGENCIES Leases The Company leases one of its tasting rooms and a winery production facility. The lease for both of these facilities was modified in July 2016. The modification calls for the Company to vacate the tasting room portion of the property no later than December 31, 2016, and the balance of the space no later than May 31, 2017. The tasting room located on Westside Rd. was vacated as of December 31, 2016. The Company has two lease agreements for administrative office space. Both are three-year leases with an end date of October 31, 2019. One of these leases contains three one-year renewal options with adjustment to market rates. Lease payments for these facilities were $ 0.09 million and $ 0.2 million for the three and six months ended December 31, 2016, respectively, compared to $ 0.1 million and $ 0.2 million for the same periods in FY16. Future lease commitments are: YearsendingJune30, (inthousands) 2017 (remaining six months) $ 96 2018 84 2019 90 2020 31 Thereafter - Total future lease payments $ 301 Supply Contracts The Company enters into short and long term contracts with third-parties and related party growers to supply a portion of its future grape and bulk wine inventory requirements. The grape commitments for the fiscal year 2017 were received in the first quarter of FY17. The Company did not extend a large contract for the purchase of bulk wine to future years. Future minimum grape and bulk wine inventory purchase commitments are as follows: YearsendingJune30, Third-Parties RelatedParties Total (inthousands) 2017 $ 1,652 $ - $ 1,652 2018 531 57 588 2019 310 - 310 Thereafter - - - Total grape and bulk purchase commitments $ 2,493 $ 57 $ 2,550 At December 31, 2016, total future purchase commitments for finished goods were approximately $ 1.8 million and are expected to be fulfilled during fiscal 2018. Moreover, at December 31, 2016, a $ 0.03 million liability was outstanding to a related party for grapes from the 2016 harvest. Production &amp; Storage The