OPERATING LEASES

12 Months Ended

Dec. 31, 2015

NOTE 11 OPERATING LEASES

Vehicles

The Company leases vehicles under noncancelable operating leases. Total lease expense under the agreements was approximately $45,000, $30,000 and $28,000 for the years ended December 31, 2015, 2014, and 2013, respectively.

Minimum future lease payments under these vehicle leases are approximately $45,000 in 2016, $41,000 in 2017, and $30,000 in 2018.

Building

Effective November 2011, the Company extended their original operating lease agreement on 3,044 square feet of office space and added an additional 1,609 square feet of office space, for a total of 4,653 square feet. The two leases require initial gross monthly lease payments of $18,612. The monthly payments increase by 4% on each anniversary date. The Company has extended the lease for an additional year and it will expire in November 2016. The Company also has annual and month to month lease agreements related to storage and parking spaces. Total rent expense under the agreements was approximately $287,000, $267,000 and $249,000 for the years ended December 31, 2015, 2014, and 2013, respectively.

Minimum future lease payments under the building leases are as follows:

Year Ended December 31,	Amount
2016	$	274,000
2017		49,000
Total	$	323,000

Effective October 2014, the Company entered into an operating lease agreement on 1,900 square feet of office space in Denver. The lease requires an initial monthly lease payment of $4,750. The monthly payments increase by 2% on each anniversary date. The lease expires in November 2017. Total rent expense under the agreement was approximately $62,000 for the year ended December 31, 2015.