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. 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, 2023: 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 Milaca, MN Lease June 30, 2025 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 February 28, 2024 27,000 3,000 30,000 Suzhou, China Lease January 14, 2024 (1) 15,000 - 15,000 Suzhou, China Lease October 17, 2026 15,000 - 15,000 (1) In January 2024, we extended the Suzhou lease which now expires on January 20, 2027. 19 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. 20 PART II