NORTECH SYSTEMS INC 10-K

Item 2. Properties Administration Our corporate headquarters consists of an approximately 19,000 square feet building located in Maple Grove, Minnesota, a northwestern suburb of Minneapolis, Minnesota, and its lease expires January 2025. 14 Manufacturing facilities Our manufacturing facilities are in good operating condition and we believe our overall production capacity is sufficient to handle our foreseeable manufacturing needs and customer requirements. The following are our manufacturing facilities as of December 31, 2020: Manufacturing Space Office Space Total Location Own/Lease Lease End Date Square Feet Square Feet Square Feet Bemidji, MN Lease August 31, 2035 56,000 13,000 69,000 Blue Earth, MN Own 92,000 48,000 140,000 Merrifield, MN Own 34,000 12,000 46,000 Milaca, MN Lease June 30, 2022 15,000 5,000 20,000 Mankato, MN Lease August 31, 2035 43,000 15,000 58,000 Monterrey, Mexico Lease January 24, 2029 76,000 1,000 77,000 Suzhou, China Lease March 9, 2021 27,000 3,000 30,000 Suzhou, China Lease October 17, 2023 15,000 - 15,000 As discussed below, we are consolidating our production facilities and are closing our owned facility in Merrifield, MN in 2021. The Suzhou, China lease that was expiring on March 9, 2021 has been extended to March 9, 2024 as of the date of this filing. Item 3. Legal Proceedings From time to time, we are involved in ordinary, routine or regulatory legal proceedings incidental to the business. When a loss is deemed probable and reasonably estimable an amount is recorded in our consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. 15 PART II