3. Leases

The Company leases building space, office equipment and motor vehicles under operating leases. Lease terms generally cover periods from two to five years and may contain renewal options. The following is a summary, as of June 30, 2015, of the future minimum annual lease payments required under the Company’s operating leases having initial or remaining non-cancelable terms in excess of one year:



Year	Minimum Rentals
2016	$	1,115,766
2017		574,301
2018		185,717
2019		31,830
2020 and beyond		32,360

Total minimum lease payments	$	1,939,974

Rental expenses for operating leases in the fiscal years ended June 30, 2015, 2014 and 2013 were $1,007,000, $1,018,000 and $955,000, respectively.