Item 2. Properties
Item 2.
Properties
In
June 2024, the Company entered into a non-cancelable operating lease agreement for a facility located in Bethesda, Maryland. The lease
commenced on July 1, 2024 and has a term of 63 months. The initial base rent is approximately $7,000 per month and increases annually
by 3%. In addition to base rent, the Company is responsible for its proportionate share of expenses associated with the facility and
the premises.
In
January 2025, the Company entered into a non-cancelable operating lease agreement with an unrelated third party for a 16,000 square foot
facility located in Puerto Rico. The lease commenced on February 1, 2025 on a month-to-month basis and converted to a long-term lease
effective June 1, 2025 with an initial term of five years. The base rent is $7.00 per square foot, or approximately $9,333 per month,
for the first two years, increasing to $7.50 per square foot in the third year and increasing by 3% annually thereafter. Under the terms
of the lease, the Company is responsible for its own utilities and a proportionate share of operating expenses of the premises, not to
exceed $3.25 per square foot. As of December 31, 2025, the Company had two operating leases.
Item 3.
Legal Proceedings
None.
Item 4.
Mine Safety Disclosures
Not
Applicable.
53
PART
II
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