Medinotec Inc. 10-K

ITEM 2. PROPERTIES Currently, we do not own any real estate. Our principal executive offices are located at Northlands Business Park at 170-171 Bush Telegraph Avenue, North riding, Johannesburg, South Africa. We have entered into a lease for this 8,783 square foot facility. We believe that our properties are adequate for our current needs, but growth potential may require larger facilities due to anticipated addition of personnel. This is the primary location of our manufacturing plant. § The lease term: Three years commencing February 1, 2020 until January 31, 2023. § Extension terms: Management is already in talks with the landlord to extend the lease for another 3 years. An independent third party has been appointed to negotiate a fair arm’s length market related lease rate to comply with ASC 850-10-50-6. Refer to related party disclosures around this relationship. At present there is no indication of any events which could cause non-renewal of the lease. § Rent is approx.: $3,182 per month (Excluding Value Added Taxes) § No Escalation clause for the Three year term § Rates taxes and Levies are billed in addition to the Rent § DISA Medinotec pays its own utility bills to the local service providers We do not have any policies regarding investments in real estate, securities or other forms of property. Please refer to related party footnotes in the financial statements and as disclosed in the Section of this Annual Report, entitled, “Certain Relationships and Related Transactions” for the related party effects of the lease.