Item 2. Properties
ITEM
2. PROPERTIES
OmniMetrix’s
activities are currently conducted in approximately 21,000 square feet of office and production space in the Hamilton Mill Business Park
located in Buford, Georgia, under a lease that expires on September 30, 2025. We are currently considering new office space while also
discussing potential renewal terms with our landlord. The annual total rent payment was $129,000 in 2024 and $128,000 in 2023. For 2025,
the annual total rent payment will be $98,000 for the period through September 30, 2025. OmniMetrix is currently utilizing only a portion
of these leased facilities. If we renew this lease, we expect to grow into a portion of the currently unused space.
14
On
July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc. to sublease from the Company 1,900 square feet
of the unused office space for a monthly sublease payment of $2,375 plus annual escalators (the average monthly sublease payment in 2024
was $2,465), which includes the base rent plus a pro-rata share of utilities, property taxes and insurance. Fifty percent of any excess
rent received above the per square foot amount that the Company pays will be remitted to the Company’s landlord less the allocation
of any shared expenses and leasehold improvements specific to the sublease. As of December 31, 2024, after the offset of the investment
in leasehold improvements and other expenses related to the sublease, the Company has paid its landlord $16,000 for its share of the
sublease profit since the lease commencement. The estimated amount the Company expects to remit to the landlord each year of the sublease
subsequent to December 31, 2024 is $7,000 per year. The sublease commenced on October 1, 2021 and will run through September 30, 2025
which is the end of the Company’s lease term with its landlord. Below are the future payments expected under the sublease net of
the estimated annual service cost of $2,750 (gross of the estimated amount we expect to remit to our landlord):
Year ended December 31, 2025
2025
$ 22,000
Total undiscounted cash flows
$ 22,000
ITEM
3. LEGAL PROCEEDINGS
None.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
PART
II
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