LEASES

12 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

NOTE 9 – LEASES

We lease office, manufacturing, and warehouse space in Scottsdale, AZ, Atlanta and Marietta, GA, and Manitowoc, WI under contracts we classify as operating leases. None of our leases are financing leases. The Scottsdale lease does not include a renewal option. In August of 2021 we extended the lease of our Atlanta offices through May of 2027, accordingly we increased our Right of Use Assets and Operating Lease Liabilities by $501,125 at September 30, 2021. In January of 2022, we extended the lease of our second Manitowoc, WI location and increased our Right of Use Assets and Operating Lease Liabilities by $308,326. We terminated our lease agreement in our first Manitowoc, WI location during the year ended March 31, 2023. Accordingly, we decreased our Right of Use Assets and Operating Lease Liabilities by $901,076.

As of March 31, 2023 and March 31, 2022, total Right of Use Assets were $1,261,634 and $2,791,850, respectively. As of March 31, 2023 and March 31, 2022, total Operating Lease Liabilities were $1,374,224 and $2,922,780, respectively. The current portion of our Operating Lease Liability on March 31, 2023 and March 31, 2022 is $470,734 and $831,429, respectively, and is reported as a current liability. The remaining $903,490 of the total $1,374,224 for the year ended March 31, 2023 and the $2,091,351 of the total $2,922,780 for the year ended March 31, 2022 of the Operating Lease Liability is presented as a long-term liability net of the current portion.

AMMO, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated lease expense for the year ended March 31, 2023 was $881,171 including $861,777 of operating lease expense and $19,394 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, 2022 was $1,221,473 including $1,177,589 of operating lease expense and $43,884 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, 2021 was $844,441 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.

The weighted average remaining lease term and weighted average discount rate for operating leases were 3.3 years and 10.0%, respectively at March 31, 2023 and were 3.5 years and 10.0%, respectively at March 31, 2022.

Future minimum lease payments under non-cancellable leases as of March 31, 2023 are as follows:

Years Ended March 31,
2024	$	583,768
2025		387,214
2026		351,962
2027		257,508
2028		43,660
Thereafter		-
		1,624,112
Less: Amount Representing Interest		(249,888	)
	$	1,374,224