19. COMMITMENTS

Lease Commitment

On March 4, 2014, Xi’an TCH’s office lease expired and Xi’an TCH renewed this lease for two years; the monthly rental payment is $20,140. The lease for the office in Xi’an was renewed for two years starting on March 5, 2016 with a monthly rental payment of $21,804 but payable quarterly in advance. For the six months ended June 30, 2017 and 2016, the rental expense of Xi’an TCH was $118,413 and $126,384, respectively. For the three months ended June 30, 2017 and 2016, the rental expense of Xi’an TCH was $59,348 and $69,658, respectively.

Future minimum annual rental payments required under operating leases as of June 30, 2017 were as below (by year):

2018		$	189,124
Total		$	189,124

Construction Commitment

Refer to Note 1 for additional details related to lease commitments with Chengli, Tianyu (and its subsidiaries Xuzhou Tian’an and Xuzhou Huayu), and Zhongtai and Note 8 for commitments on construction in progress.