. COMMITMENTS AND CONTINGENCIES

The Company is obligated under a noncancelable operating lease for its Longview, Texas office space. The lease was scheduled to expire on

April

30,

2018

but the Company executed a lease addendum to extend the term for an additional

months resulting in an amended expiration date of

April 30, 2021.

The lease requires a monthly rental payment by the Company of

$2,728.

The following is a schedule of future minimum annual rental payments for the next

five

years required under this operating lease as of

March

31,

2018:

2019	$	32,736
2020		32,736
2021		32,736
2022		2,728
2023		—
Total	$	100,936

Rental expenses for leased properties were approximately

$32,736

and

$64,400

during fiscal

2018

and

2017,

respectively. The Company leased office space in Humble, Texas for part of fiscal

2017

until the lease expired and was

not

renewed.

March 31, 2018,

the Company had supply agreements in place with certain suppliers that require the Company to purchase minimum quantities of steel on a monthly basis. All such agreements expire on

December 31, 2018.

The combined minimum monthly purchase requirements under these agreements fall well below the Company's anticipated monthly steel supply needs. Based on the market price of hot-rolled coil at

March 31, 2018,

the minimum purchase requirements remaining for

April 2018

December 2018

totaled approximately

$33,660,000.

One of the Company’s purchase agreements provides an annual rebate payable to the Company if a certain volume of material is purchased during the term of the agreement. As of

March 31, 2018,

the Company had

not

accrued a receivable related to this rebate due to the uncertainty present at that time about whether the Company would purchase the specified volume. The Company will continue to evaluate the likelihood of meeting the purchase requirements related to the annual rebate. If the Company deems receipt of the rebate to be probable, the Company will recognize the rebate on a systematic and rational basis dictated by the underlying transactions that result in progress toward earning the rebate.

In fiscal

2017,

the Company did

not

have any agreements in place requiring the purchase of certain quantities of steel.