Note 15  Commitments and contingencies Lease Commitments The Company has a lease agreement for a concrete plant with an unrelated party which will expire on September 30, 2017, with annual payments of approximately $211,000. The Company has a lease agreement to lease office space from a third party through October 31, 2016, with annual payments of approximately $25,000. Operating lease expenses are allocated between the cost of revenue and selling, general, and administrative expenses. Total operating lease expenses for the three months ended March 31, 2016 and 2015 were approximately $0.2 million and $0.3 million, respectively. Total operating lease expenses for the nine months ended March 31, 2016 and 2015 were approximately $0.6 million $1.4 million, respectively. Future annual lease payments, net of rent prepayment non-cancelable operating leases with a term of one year or more consist of the following: Twelve months ending March 31, Amount 2017 $ 225,000 2018 105,000 Total $ 330,000 Legal Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Companys management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Companys consolidated financial position, results of operations and cash flows.