Item 2. Properties
ITEM
2. PROPERTIES
We
lease office space at 2107 Wilson Blvd. Suite 530, Arlington, Virginia. In February 2020, we entered into a lease agreement with our
landlord for approximately 3,666 square feet. The lease was effective February 1, 2020, and has a term of five years and six months.
The initial monthly rent is $13,289, and the lease agreement provides for annual rent increases of approximately 2.7%. The amount of
future guaranteed payments is $822,082. We terminated the employment of all of our employees working in the Arlington office space during
our restructure completed in April 2021. On June 9, 2021, we reached a settlement with 2111 Wilson Boulevard, Inc. to terminate the lease
effective June 2021 in exchange for a payment by us of $150,000. Following the settlement with 2111 Wilson Boulevard, Inc., as discussed
above, we did not have any office leases as of September 30, 2021. Tom Wilkinson, the Company’s Chairman of the Board of Directors,
provides us with the use of office space that he rents, located at 6836 Bee Caves Road, Building 1, Suite 279, Austin, TX 78746, which
we use as our corporate headquarters. As of December 1, 2021, we entered into a month-to-month lease agreement with Mr. Wilkinson, under
which we pay Mr. Wilkinson $500 per month in rent.
ITEM
3. LEGAL PROCEEDINGS
See
“Litigation” in Note 7 – Commitments and Contingencies of the Notes to the Financial Statements in Part II, Item 8
of this Annual Report on Form 10-K.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
PART
II
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