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 has been extended through 2029 and does not include a renewal option. We terminated our lease agreement in Marietta, GA during the year ended March 31, 2024, which decreased our right of use asset and operating lease liabilities on our condensed consolidated balance sheet by $38,185.

Consolidated lease expense for the three months ended September 30, 2024 was $167,357 including $161,916 of operating lease expense and $5,440 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the three months ended September 30, 2023 was $167,809 including $160,757 of operating lease expense and $6,851 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals.

Consolidated lease expense for the six months ended September 30, 2024 was $334,713 including $323,833 of operating lease expense and $10,880 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the six months ended September 30, 2023 was $335,217 including $321,515 of operating lease expense and $13,703 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 3.5 years and 10.0%, respectively.


Years Ended March 31,
2025(1)	$	329,436
2026		650,195
2027		564,681
2028		360,055
2029		242,595
Total Lease Payments		2,146,962
Less: Amount Representing Interest		(346,560	)
Present value of lease liabilities	$	1,800,402

(1)

This amount represents future lease payments for the remaining six months of fiscal year 2025. It does not include any lease payments for the six months ended September 30, 2024.