Item 2. Properties
ITEM 2. PROPERTIES
Our principal offices are
located at 2399 Bateman Avenue, Duarte, CA 91010, which property is approximately 48,867 square feet and we lease at the rate of approximately
$46,000 per month. This property serves as both our principal offices and our primary fulfillment center.
In addition to our primary
fulfillment center in Duarte, we maintain a 22,700 square foot fulfillment center located at 14750 E. Nelson Avenue, Unit #I, Industry
City, CA 91744, which we have leased at the rate of approximately $28,000 per month since September 2020. We also recently entered into
an agreement to lease approximately 99,347 square feet of space located at 8798 9th Street, Rancho
Cucamonga, California, which space we anticipate using for the storage and distribution of hydroponic equipment, lighting and garden accessories,
home products, pet products, other consumer products and other ancillary uses. The term of the Rancho Cucamonga lease is for 62 months,
with an initial monthly rental rate of approximately $114,000 commencing on the date on which the landlord completes certain proscribed
improvements on the property, which we anticipate will be on or before November 15, 2021.
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