Item 2. Properties
Item
2.
Properties.
On
May 13, 2020, the Company entered into an operating lease for new warehouse and office space which had served as its principal
executive office and primary business location, prior to the completed building purchase. The Company plans to relocate the
ticketing operating segment operations to this existing leased facility by the end of 2022. This facility contains approximately
16,531 square feet and is located at 15612 College Blvd, Lenexa, Kansas 66219. The lease terms, as amended, include no base rent for
the first nine months and monthly payments ranging from $12,398 to $14,741 thereafter, with a termination date of December 31, 2026.
On
April 30, 2021, the Company closed on the purchase and sale agreement to acquire a 71,361 square feet commercial office building located
in Lenexa, Kansas which is intended to serve as the Company’s future office and warehouse needs for executive offices and for
management and warehouse operations for the video solutions operating segment. The building contains approximately 30,000 square
feet of office space and the remainder warehouse space. The total purchase price was approximately $5.3 million, the Company funded the
purchase price with cash on hand, without the addition of external debt or other financing.
On
June 30, 2021, the Company completed the acquisition of a private medical billing company, through Nobility Healthcare, a majority
owned subsidiary, Nobility Healthcare. Upon completion of this acquisition, Nobility Healthcare became responsible for the operating
lease for the seller’s office space. The lease terms include monthly payments ranging from $2,648 to $2,774 and terminate
in July 2024. The Company plans to relocate the revenue cycle management operating segment acquired operations to existing owned
or leased facilities upon termination of this operating lease.
On
August 31, 2021, the Company completed the acquisition of another private medical billing company, through Nobility Healthcare.
Upon completion of this acquisition, Nobility Healthcare became responsible for the operating lease for the seller’s
office space. The lease terms include monthly payments ranging from $11,579 to $11,811 and terminate in March 2023. The Company
plans to relocate the revenue cycle management operating segment acquired operations to existing owned or leased facilities upon termination
of this operating lease.
On
September 1, 2021, the Company completed the acquisition of Goody Tickets, LLC and TicketSmarter, LLC, through TicketSmarter. Upon completion
of this acquisition, the Company became responsible for the operating lease for TicketSmarter office space. The lease terms include monthly
payments ranging from $7,211 to $7,364 terminates in December 2022. The Company plans to relocate the ticketing operating segment
operations to existing Company-owned or leased facilities upon termination of this operating lease.
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