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 had been extended through 2029 and does not include a renewal option. We terminated our lease agreement in Marietta 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 December 31, 2024 was $160,629 including $163,266 of operating lease expense and a credit of $2,637 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 December 31, 2023 was $161,272 including $162,264 of operating lease expense and a reduction of $992 of other lease associated expenses such as association dues, taxes, utilities and other month to month rentals.

Consolidated lease expense for the nine months ended December 31, 2024 was $495,342, including $487,099 of operating lease expense and $8,244 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the nine months ended December 31, 2023 was $502,889, including $477,065 of operating lease expense and $25,824 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.


Years Ended March 31,
2025(1)	$	166,321
2026		650,195
2027		564,681
2028		360,055
2029		242,595
Total Lease Payments		1,983,847
Less: Amount Representing Interest		(302,930	)
Present value of lease liabilities	$	1,680,917

(1)

This amount represents future lease payments for the remaining three months of fiscal year 2025. It does not include any lease payments for the nine months ended December 31, 2024.