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
Boulder, CO
4,140
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 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 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. Until a new lease is signed, the Company will make monthly payments
of $13,491; all other terms and conditions of the previous lease shall remain in full force and effect. As of April 30, 2026, the Company
has not signed a fourth amendment to the lease with the landlord, however, the Company continues to utilize the space for FEI-Elcom’s
operational needs.
The
Boulder, Colorado facility is leased by the Company and is used as a satellite facility for the FEI-NY segment. The facility consists
of a combination office and test/assembly areas. The Company signed the lease for a period of 62 months, beginning August 1, 2025 and
expiring September 30, 2030. The average annual rent over the period of the lease is approximately $71,100. The Company believes the
leased space is adequate to meet 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 16, 2026, the Company was not party to
any material pending legal proceedings.
Item
4. Mine Safety Disclosures
Not
applicable.
12
Table of Contents
PART
II