Item 2. Properties
ITEM
2. PROPERTIES
Our
Subsidiary BioLite has its laboratories located in Hsinchu Biomedical Science Park, with an address of 20, Sec. 2, Shengyi Rd., 2nd Floor,
Zhubei City, Hsinchu County 302, Taiwan (R.O.C.). On January 1, 2015, BioLite Taiwan entered into a lease agreement with the National
Science Park Administrative Office (Hsinchu City) under which it rents two dormitory buildings in Hsinchu County, Taiwan for a period
of five years. The aggregate leasing area amounts to approximately 678 square meters (equivalent to approximately 7,298 square feet)
on the second floor of the building. The leased space counts for approximately 1.9% of the total space of the building. On January 1,
2020, BioLite Taiwan extended the contract for another five years. The new expiration date is on December 31, 2024. The rent increases
by a small percentage each year during the term of the lease agreement. BioLite paid $60,296 and $64,506 in rental expense for the laboratory
space for the years ended December 31, 2021 and 2020, respectively.
Another
subsidiary BioKey is headquartered in Fremont, California. BioKey’s office lease will end on February 28, 2026 and the office occupies
approximately 28,186 square feet. BioKey’s space consists of offices, research and production laboratories, and manufacturing facilities,
which are GMP certified. BioKey has an option to extend the lease for its offices in Fremont for a period of five years commencing February
28, 2026, and BioKey may exercise this option for 5 more years. The total BioKey’s rental expenses were $331,482 and $403,776 for
the years ended December 31, 2021 and 2020, respectively.
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