Item 2. Properties
ITEM
2. PROPERTIES
We
own the property underlying our scrap yards located at:
● 4091
Portsmouth Blvd., Portsmouth, VA 23701
● 22097
Brewers Neck Blvd., Carrollton, VA 23314
● 1576
Millpond Rd., Elizabeth City, NC 27909,
● 8952
Richmond Rd., Toano, VA 23168
● 9922
Hwy 17 S., Vanceboro, NC 28586
● 1040
Oceana Blvd, Virginia Beach, VA 23454
● 406
Sandy Street, Fairmont, NC 28340
Further,
we own properties located at 278 and 276 Suburban Drive, Suffolk, VA 23434 and 4087, 4089, 4091, 4103, 4105 and 4117 Portsmouth Blvd,
Portsmouth, VA 23701.
We
lease the properties for our scrap yards located at 130 Courtland Rd., Emporia, VA 23847; 1100 E Princess Anne Rd, Norfolk, VA 23504;
277 Suburban Drive, Suffolk, VA 23434 from third parties.
On
January 24, 2022, the Company entered into leasing agreements for 3,521 square feet of office space commencing upon the completion of
tenant improvements which is expected to be on April 1, 2022 but shall be no later than May 1, 2022 (“Commencement Date”).
Under the terms of the lease, the Company is required to pay $3,668 for the first twelve months of the lease and increasing by approximately
3% every 12 months thereafter until the expiration of the lease. The lease is for a period of five years from the Commencement Date and
the Company was required to make a security deposit of $3,668. The Company does not have an option to extend the lease.
We
lea se the property located at 101
Freeman Ave, Chesapeake, VA 23324 a s a yard for our truck fleet from DWM Properties, LLC, which is controlled by the Company’s
Chief Executive Officer, on a month-to-month basis for $9,000 per month. The lease expires on January
1, 2025 and the Company has two options to extend the lease by 5 years per option. The Company also has the option to extend the term
of the lease for an additional year for the next 5 years upon the same terms and conditions. In the event the Company does not exercise
the options, the lease will continue on a month-to-month basis. The Company cannot sublease the property under the lease agreement.
On
March 15, 2024, the Company entered into leasing agreements for a scrap yard located at 3030 E 55th Street, Cleveland, OH 44127. Under
the terms of the lease, the Company is required to pay $17,000 from March 1, 2024 to February 28, 2025; $23,000 from March 1, 2025 to
February 28, 2026; $23,000 from March 1, 2026 to February 28, 2027; $23,000 from March 1, 2027 to February 28, 2028; and increasing by
the greater of 3% and the CPI every 12 months thereafter until the expiration of the lease. The lease is for a period of five years,
include two options to extend for five years each, and the Company was required to make a security deposit of $17,000. The Company has
the option to purchase the property for $3,277,000 until February 28, 2024.
We
believe that our facilities are adequate for our current needs and that, if required, we will be able to expand our current space or
locate suitable new office space and obtain a suitable replacement for our executive and administrative headquarters.
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