That my friend is the last nail in the coffin. You can get by for a while with stuffing goo in it to stop the leak, but odds are it leaks because the rubber is starting to dry out and crack. You may be able to take an old bike inner tube and cut it open length wise. Then wrap it around with alot of goooo. If that doesn't work you can always cut off the boots for spring cleaning and save the neoprene for tying up water spiders for gills...
Other than that...get a new pair, nowadays you can find a decent pair for around 60 bucks. For future reference, when storing them don't fold them at that seam to the boots. I learned the hard way too.
