Item 2. Properties
ITEM
2.
PROPERTIES
We
do not own any real property. We moved out of our previous corporate facility located at 3480 Land O’Lakes Blvd, Land O Lakes,
Florida 33556 on December 31, 2021 and entered into a lease for our current corporate office space at 2420 Brunello Trace, Lutz, Florida
33558 on November 8, 2021. The lease has a five-year term, beginning January 1, 2022, and ending December 31, 2026. Our office space
occupies approximately 9,850 square feet. Pursuant to the lease, the Company will also be responsible for water/sewer costs ($140 per
month) and its proportionate share of the building’s operating expenses, including property taxes. We paid a security deposit of
$38,500 in connection with our entry into the agreement.
Our
rental cost under the agreement during the term of the lease, is as follows:
Lease Period
Monthly Rent
January 1, 2023 to December 31, 2023
$ 19,023
January 1, 2024 to December 31, 2024
$ 19,594
January 1, 2025 to December 31, 2025
$ 20,181
January 1, 2026 to December 31, 2026
$ 20,787
Pursuant
to the lease, we have an option to renew the lease for two additional five-year terms with a mutually agreed increase in rental cost.
The
Company’s obligations under the lease are guaranteed by Suren Ajjarapu, the Company’s Chief Executive Officer and Chairman,
but such guarantee has not been formally documented to date.
The
Company also has, pursuant to the terms of the lease, a right to match any offer for purchase on 4.12 acres of Sienna Village I, parcel
26-26-18-0000-04800-000 and 4 buildings totaling 23,048 square feet of office space in its entirety, for a 2-year period commencing with
the execution of the lease. We also have a right of first refusal to lease available vacant buildings at the then current market rate
only after the landlord has made such space available for leasing.
In
connection with our entry into the lease, we purchased certain furniture and assets of the landlord located at the leased premises for
(a) $60,000, payable in 12 installments of $5,000 each, with title to such assets transferring on the date of the last payment, December
1, 2022; and (b) $37,500, which was payable upon our entry into the lease agreement, upon which payment, title to such purchased assets
transferred. This payable has been paid in full as of December 31, 2022.
The
lease contains customary indemnification and termination provisions. In addition, the lease contains customary events of default, including
payment defaults, breaches of covenants and/or certain representations and warranties, bankruptcy or insolvency proceedings and other
events of default customary for this type of transaction. The lease also contains remedies for such events of default, including the
landlord’s right to cure a default (together with our requirement to pay a 15% administrative fee in connection therewith), interest
and other amounts, the right to accelerate all amounts due during the remaining term of the lease, termination of the lease and other
remedies customary for this type of transaction.
We
entered into a lease for Integra Pharma Solutions, LLC at 6308 Benjamin Road, Tampa, Florida 33634 for approximately $43,000 per
year ($3,583 per month) under a five-year lease agreement, effective October 17, 2018, occupying approximately 6,300 square
feet.
We
believe our current and future facilities are adequate for our current and near-term needs. Additional space may be required as we expand
our activities. We do not currently foresee any significant difficulties in obtaining any required additional facilities.
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