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 $42,000 per month.
This property serves as both our principal offices and our primary fulfillment center. We also lease
approximately 99,347 square feet of space located at 8798 9th Street, Rancho Cucamonga, California, which space is used 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 74 months. The lease commencement date is February 10, 2022, the
rent commencement date is May 11, 2022 and the expiration date is May 31, 2028. The base rental fee is $114,249 to $140,079 per month
through the expiration date, May 31, 2028.
In addition to our primary
fulfillment centers in Duarte and Rancho Cucamonga, 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.
On February 15, 2022, upon
completion of the acquisition of Anivia Limited, the Company assumed operating lease of offices in People’s Republic of China.
On May 1, 2022, the Company
leased another fulfillment center at 2397 Bateman Avenue, Duarte, CA 91010, which is approximately 49,500 square feet. The base rental
fee is $56,000 to $59,410 per month through April 30, 2025.
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