Item 2. Properties
ITEM 2. PROPERTIES
We lease approximately 12,775
square feet of office space in San Diego, California, at a monthly rent of $25,754, pursuant to a lease expiring in December 2023. In
addition to monthly rent, the lease includes payment for certain common area costs. Our facility is covered by an appropriate level of
insurance, and we believe it to be suitable for our use and adequate for our present needs. Rent expense related to this property was
$309,053 for the years ended June 30, 2023 and 2022.
Our Korea-based subsidiary,
FTI, leases approximately 10,000 square feet of office space, at a monthly rent of approximately $8,000, and additional office space consisting
of approximately 2,682 square feet at a monthly rent of approximately $2,700, both located in Seoul, Korea. These leases expired on August
31, 2023, and were extended for an additional twelve months to August 31, 2024. In addition to monthly rent, the leases provide for periodic
cost of living increases in the base rent and payment for certain common area costs. These facilities are covered by an appropriate level
of insurance, and we believe them to be suitable for our use and adequate for our present needs. Rent expense related to these leases
was approximately $128,400 for each of the years ended June 30, 2023 and 2022.
We lease one corporate housing
facility, located in Seoul, Korea, primarily for our employees who travel, under a non-cancelable operating lease that expired on September
4, 2023, and was extended for an additional twelve months to September 4, 2024. Rent expense related to this lease was $8,095 and $8,604
for the years ended June 30, 2023 and 2022, respectively.
ITEM 3. LEGAL PROCEEDINGS
Refer to NOTE 8 - COMMITMENTS
AND CONTINGENCIES in the Consolidated Financial Statements.
ITEM 4. MINE SAFETY DISCLOSURES
None.
8
PART II
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