Item 2. Properties
Item 2. Properties .
On February 6, 2018, we entered into a
lease for 6,969 square feet of general office space at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA 90212 pursuant to a
91-month lease that commenced on May 25, 2018. We paid rent of $364,130 annually, subject to annual escalations of 3.5%.
Effective January 21, 2019, we entered
into a sublease for the 6,969 square feet of general office space located at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA
90212 pursuant to an 83-month sublease that commenced on February 4, 2019. The subtenant paid us rent of $422,321 annually, subject
to annual escalations of 3.5%.
On September 11, 2020, the Company entered
into a Surrender Agreement with the landlord, for the space at 131 South Rodeo Drive, which terminated the lease agreement. As
a result, the Company recorded decreases in the Right Of Use asset, accumulated amortization, and the lease liability of $2,142,863,
$465,124 and $1,760,302 respectively. The termination of the lease resulted in a loss of $338,856. Simultaneously, as part of the
Surrender Agreement the Sublease was terminated.
On December 28, 2018, we entered into a
lease for 5,765 square feet of general office space at 8383 Wilshire Blvd., Suite 412, Beverly Hills, CA 90211 pursuant to a 6-month
lease that commenced January 28, 2019. We paid rent of $24,501 monthly.
On January 30, 2019, we entered into a
lease for 5,838 square feet of general office space at 190 Cannon Drive, Suite 400, Beverly Hills, CA 90210 pursuant to a 96-month
lease that commenced on September 1, 2019. We pay rent of $392,316 annually, subject to annual escalations of 3.5%.
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