Leases

9 Months Ended

12 Months Ended

Dec. 31, 2019

Mar. 31, 2019

Leases [Abstract]

Leases

NOTE 6 – 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 December 31, 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 December 31, 2019, the current portion of our operating lease liability was $496,095 and is reported as a current liability.

Consolidated lease expense for the nine months ended December 31, 2019 was $375,275 including $117,243 of operating lease expense and $258,482 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 December 31, 2019 are as follows:

Years Ended March 31,
2020	$	173,307
2021		693,229
2022		693,229
2023		693,229
2024		640,118
Thereafter		2,168,932
		5,062,044
Less: Interest		(893,273	)
	$	4,168,771

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

	December 31, 2019
Current portion	$	496,095
Long-term, net of current portion		3,672,676
	$	4,168,771

NOTE 13 – OPERATING LEASES

We are obligated under a triple-net operating lease for our 20,000 square foot manufacturing facility located in Payson, Arizona. The terms of the lease require a payment of approximately $10,000 per month, which includes an estimate for utilities, taxes, and repairs. This lease expires in November of 2021.

We believe this facility will be adequate to meet our needs in the near future. However, we are making plans to expand our building footprint to accommodate additional automation equipment. We intend to pay for these improvements using working capital and will amortize the costs over the remaining lease period.

The following table outlines our future contractual financial obligations associated with this lease by fiscal year in which payment is expected, as of March 31, 2019:

	2020		2021		2022		Total
Payson Lease	$	120,000	$	120,000	$	80,000	$	320,000

Our executive offices are located in Scottsdale, Arizona where we lease 21,000 square feet of office and warehouse space for $17,702, which will increase by approximately 4.4% each year. This space houses our principal executive, administration, marketing, and research and development functions. The lease expires in December of 2023.

The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019:

	2020		2021		2022		2023		2024		Total
Scottsdale Lease	$	216,591	$	226,587	$	236,583	$	246,580	$	147,240	$	1,073,581

Our ammunition casing operations are located in Manitowoc, Wisconsin where we lease approximately 50,000 square feet. The terms of the lease provide for a monthly payment of approximately $32,844. The lease expires in March of 2026 and can be renewed every three years thereafter.

The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019:

	2020		2021		2022		2023		2024		2025		2026		Total
Manitowoc Lease	$	394,128	$	394,128	$	394,128	$	394,128	$	394,128	$	394,128	$	394,128	$	2,758,896

Additional offices are located in Scottsdale, Arizona where we lease approximately 5,000 square feet under a month-to-month triple net lease for $3,800 per month. This office building is owned by a related party.

Total lease and rent expense for the year ended March 31, 2019, for the three months ended March 31, 2018 and the year ended December 31, 2017 were $272,700, $47,400 and $199,950, respectively.