Algorhythm Holdings, Inc. 10-K/A

ITEM 2. PROPERTIES Our corporate headquarters are located in Fort Lauderdale, Florida where we lease approximately 6,500 square feet of office space. The lease expires on March 31, 2024. The annual rental expense for office facilities was approximately $0.2 million for the fiscal year ended March 31, 2020. We lease approximately 86,000 square feet of warehouse space in Ontario, California for our logistics operations. The lease expires on August 31, 2020 (original term of 87 months). The annual rental expense for warehouse facilities was approximately $0.5 million for the fiscal year ended March 31, 2020. On June 15, 2020 we executed a three-year lease extension which will expire on August 31, 2023. We lease a 424 square foot office in Macau. The annual rent expense for this facility was approximately $19,000 for the fiscal year ended March 31, 2020. The rent is fixed at approximately $1,600 per month for the duration of the lease which expires on April 30, 2021. We believe that the facilities are well maintained, in substantial compliance with environmental laws and regulations, and adequately covered by insurance. We also believe that these leased facilities are not unique and could be replaced, if necessary, at the end of the term of the existing leases.