Item 2. Properties
ITEM 2. PROPERTIES
Our principal offices, which
also serve as a fulfillment center, are located at 8798 9 th Street, Rancho Cucamonga, California. There we lease approximately
99,347 square feet of space, which is used for the storage and distribution of products. The term of the Rancho Cucamonga lease is for
74 months. The lease commenced on February 10, 2022, with rent payments commencing after the first three months, 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. On April 13, 2026, we
entered into a sublease agreement (the “Sublease Agreement”) to sublease part of the warehouse for a term of 25 months, commencing
May 1, 2026 and ending May 31, 2028. Pursuant to the Sublease Agreement, the sublessee will pay Base Rent of $62,500 to $112,710, calculated
based on space used, to the Company monthly.
In addition, we leased a fulfilment
center at 2397 Bateman Avenue, Duarte, CA 91010, which consists of approximately 49,500 square feet of space, with a base rental fee of
$56,000 to $59,410 per month. The lease term expired on April 30, 2025, and the Company did not renew the lease.
On February 15, 2022, upon
completion of the acquisition of Anivia, the Company assumed an operating lease of offices in the PRC. In July 2023, the Company renewed
the lease contract for its existing office plus additional office space. The lease term is for three years expiring on July 14, 2026.
The total base rental fee for these offices is approximately $19,406 per month. In September 2024, the Company terminated the lease contract
of the office space.
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