Item 2. Properties
ITEM 2. PROPERTIES
Our executive offices and manufacturing
facility are located at 2361 McGaw Avenue, Irvine, California 92614. We lease the 28,000 square foot facility from an unrelated third
party at a current base monthly lease rate of approximately $40,000 with 3% annual escalations through the expiration of the lease in
September 2027. The building is a one-story, stand-alone structure of concrete “tilt-up” construction, approximately 30 years
old and in good condition.
We are currently preparing the
Franklin Property, located at 14401 Franklin Avenue, Tustin, California 92780, for our move-in. We purchased this 25,000 square foot facility
in November 2020 from an unrelated third party through a loan (See Note 6 of Notes to consolidated financial Statements contained elsewhere
in this report) and plan to move our assembly and repairs teams as well as certain other staff once our build-out and validations are
completed, currently expected in the first quarter of fiscal 2022. The building is a one-story, stand-alone structure of concrete “tilt-up”
construction, approximately 45 years old and in good condition.
We
believe that our facilities are adequate for our current and expected future needs and are in full compliance with applicable state, EPA
and other agency environmental standards .
ITEM 3. LEGAL PROCEEDINGS
See Note 8
of Notes to Financial Statements contained elsewhere in this report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II
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