Item 2. Properties
ITEM 2. PROPERTIES
Commencing January 2021, we
moved into a new dedicated headquarters and manufacturing facility in Poway, California, just north of San Diego. This state-of-the-art,
energy-efficient facility has ample square footage, shipping and receiving space, and office spaces to support the company’s growth
by providing double the production capability and increases shipping efficiency from that of our previous facility. We believe this facility
will accommodate our growth for at least three years. The facility was secured under a sublease agreement with our former contract manufacturer.
Under the terms of the sublease agreement, we are currently required to make rental payments of $10,750 per month, including our share
of operating expenses. We entered into the sublease agreement with our former contract manufacturer, effective January 1, 2021, for an
initial term of 12 months. The sublease is renewable for additional terms of 12 months upon mutual agreement of both parties, provided
thirty days’ notice is given for each subsequent term, at a modest increase in the monthly rent, through February 28, 2025. However,
we are under no obligation to renew it.
We do not own any real property.
ITEM 3. LEGAL PROCEEDINGS
We are currently not a party
to any pending legal proceeding, nor is our property the subject of a pending legal proceeding, that we believe is not ordinary routine
litigation incidental to our business or otherwise material to the financial condition of our business.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II
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