Commitments and contingencies

9 Months Ended

Mar. 31, 2016

Commitments and contingencies [Text Block]

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 Company’s 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 Company’s consolidated financial position, results of operations and cash flows.