Leases

12 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

NOTE 7 – LEASES

We lease office, manufacturing, and warehouse space in Scottsdale and Payson, AZ and Manitowoc and Two Rivers, 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 Two Rivers has an option to renew the lease for up to twelve months. The Scottsdale lease does not include a renewal option and we do not intend to exercise the renewal option on the Two Rivers lease. As of June 26, 2020, the Company entered into an amended agreement that modified the Manitowoc lease to monthly payments of $34,071 and decrease the term to March 2025. The agreement does not contain a renewal option. Accordingly, we modified our Right of Use Assets and Operating Lease Liabilities by $737,680 during the current fiscal year. As of March 31, 2021, we no longer intend to exercise the renewal option of the Payson lease, and we have reduced our Right of Use Asset and Operating Lease Liability by $318,116.

As of March 31, 2021 and 2020, total Right of Use Assets on the Balance Sheet were $2,090,162 and $3,431,746, respectively. As of March 31, 2021 and 2020, total Operating Lease Liabilities on the Balance Sheet were $2,141,440 and $3,483,724, respectively. The current portion of our Operating Lease Liability at March 31, 2021 and 2020 is $663,784 and $375,813 respectively and is reported as a current liability. The remaining $1,477,656 of the total $2,141,440 for the year ended March 31, 2021 and the $3,107,911 of the total $3,483,724 for the year ended March 31, 2020 of the Operating Lease Liability is presented as a long-term liability net of the current portion.

Consolidated lease expense for the year ended March 31, 2021 was $844,442 including $742,433 of operating lease expense and $102,008 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the year ended March 31, 2020 was $836,665 including $706,692 of operating lease expense and $129,973 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals.

The weighted average remaining lease term and weighted average discount rate for operating leases were 3.4 years and 10.0%, respectively at March 31, 2021 and 7.8 years and 10.0%, respectively at March 31, 2020.

Future minimum lease payments under non-cancellable leases as of March 31, 2021 are as follows:

Years Ended March 31,
2022		847,219
2023		679,432
2024		598,160
2025		408,852
Thereafter		-
		2,533,663
Less: Amount Representing Interest		(392,223	)
	$	2,141,440