Item 2. Properties
Item
2. Properties
The
Company operates out of several facilities located around the U.S. Each facility is used for manufacturing its products and for administrative
activities. The following table presents the location, size and terms of ownership/occupation:
Location
Size
(sq. ft.)
Own
or Lease
Mitchel Field, NY
93,000
Lease
Garden Grove, CA
37,463
Lease
Northvale, NJ
6,548
Lease
The
Company’s facility located in Mitchel Field, Long Island, New York, is part of the building that the Company constructed in 1981
and expanded in 1988 on land leased from Nassau County. In January 1998, the Company sold the building and the related land lease to
Reckson Associates Realty Corp. (“Reckson”), leasing back the space that it presently occupies.
The
Company leases its manufacturing and office space from RA 55 CLB LLC (as successor-in-interest to Reckson). The lease expires on September
30, 2029. Pursuant to the lease agreement, the Company pays a gradually increasing annual rent of $1,046,810 in 2019 to $1,276,056 in
2029. The Company believes the leased space is adequate to meet the Company’s domestic operational needs which encompass the principal
operations of the FEI-NY segment and also serves as the Company’s corporate headquarters.
The
Garden Grove, California facility is leased by the Company’s subsidiary, FEI-Zyfer. The facility consists of a combination office
and test/assembly areas. The Company has signed a third amendment to the lease, which expanded the square footage rented, and extended
the lease an additional 62 months, beginning February 1, 2025 and expiring March 30, 2030. The average annual rent over the period of
the amendment is approximately $672,000. The Company believes the leased space is adequate to meet FEI-Zyfer’s operational needs.
FEI-Elcom
entered into a new lease agreement on January 12, 2022 regarding its Northvale, New Jersey facility. The facility consists of a combination
office and manufacturing space. The Company has signed a third amendment to the lease, which extended the lease an additional 36 months
beginning February 1, 2022 and expiring January 31, 2025, and reduced the square footage rented. The lease, as amended, requires monthly
payments of $8,270. As of April 30, 2025, the Company is in the process of negotiating a fourth amendment to the lease with the landlord
as the Company continues to utilize the space for FEI-Elcom’s operational needs.
Item
3. Legal Proceedings
From
time to time, the Company may become a defendant in litigation arising out of the ordinary course of business. As of July 18, 2025, the
Company was not party to any material pending legal proceedings.
Item
4. Mine Safety Disclosures
Not
applicable.
16
Table of Contents
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the is authoritative for anything you rely on.