Item 2. Properties
ITEM 2. PROPERTIES.
Our corporate headquarters are located in Los Gatos, California. The accounting
and legal, as well as a portion of our marketing, sales, and customer support
departments are housed at this location. The headquarters facility is
approximately 2,000 square feet, which is under a lease that expires on
September 20, 2004, with an option to terminate one year earlier without
penalty.
Some of Semotus' subsidiaries have facilities in various locations around the
country. Semotus Systems Corp., which houses the Company's engineering and
Research and Development group, is located in Vancouver, British Columbia, where
it occupies a facility of approximately 2,437 square feet. This lease expires on
June 30, 2007. Application Design Associates has offices located in Englewood,
Colorado, of approximately 3,191 square feet under a three-year lease effective
February 1, 2003. As of May 6, 2003, this lease is no longer an obligation of
Semotus because of the sale of ADA (See Note 26, "Strategic Investment in ADA".)
Five Star's lease was cancelled without penalty on June 30, 2002, at the time of
the closing of the Five Star operations.
We believe that the existing facilities will be sufficient to meet our current
needs. Should we need additional space to accommodate increased activities, we
believe we can secure additional space at comparable cost.
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