LEASES

Operating Leases

The Company leases

three

facilities including

one

from a related party and certain vehicles and equipment under operating leases expiring through

June 30, 2026.

The Company's minimum commitment under these operating leases is as follows:

	Facility		Equipment

2019	$	1,235,424	$	122,280
2020		1,197,062		118,052
2021		1,201,202		87,746
2022		1,205,384		32,724
2023		1,216,978		-
Thereafter		6,829,804		-
Total minimum lease payments	$	12,885,854	$	360,802

Rental expense was

$245,029

and

$48,819

for the

three

months ending

December 31, 2017

and

2016,

respectively, and

$1,228,012

and

$361,539

for the fiscal years ending

December 31, 2018

and

September 30, 2017,

respectively.

Commitments and Contingencies

From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently

not

material, there can be

assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will

not

have an adverse effect on its business, financial condition or results of operations.