Leases

3 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Leases

NOTE 5 – LEASES

We lease office, manufacturing, and warehouse space in Scottsdale and Payson, AZ and Manitowoc, WI under contracts we classify as operating leases. None of our leases are financing leases. The Payson lease has an option to renew for five years, and the Manitowoc lease has an option to renew for the three years. As of June 30, 2019, we are fairly certain that we will exercise the renewal options on both leases, and we have included such renewal options in the lease liabilities and the disclosures herein. The Scottsdale lease does not include a renewal option.

As of June 30, 2019, the current portion of our operating lease liability was $483,872 and is reported as a current liability.

Consolidated lease expense for the three months ended June 30, 2019 was $124,500 including $117,243 of operating lease expense and $7,257 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals.

Futures minimum lease payments under non-cancellable leases as of June 30, 2019 are as follows:

Years Ended March 31,
2020	$	519,922
2021		693,229
2022		693,229
2023		693,229
2024		640,118
Thereafter		2,168,932
		5,408,659
Less: Interest		(1,001,737	)
	$	4,406,922

Right of Use Assets and Operating Lease Liabilities on the Balance Sheet:

	June 30, 2019
Current portion	$	483,872
Long-term, net of current portion		3,923,050
	$	4,406,922