UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On November 5, 2021, Lantronix, Inc. (the “Company”) entered into a building lease agreement dated November 5, 2021 (the “Lease”) with Discovery Business Center LLC (the “Landlord”). Pursuant to the Lease, the Company will lease approximately 13,767 square feet of office space for its corporate headquarters in Irvine, California. The Lease will commence on the date which is the earlier to occur of: (a) the date the Company takes possession of the premises following the completion of certain tenant improvements to the premises, but not earlier than February 1, 2022, or (b) the date the Company commences its regular business activities on the premises.
The term of the Lease will be 84 months from the commencement date, with an option for the Company to extend the lease for one 60-month extension period at a basic rent to be agreed upon by the parties or determined pursuant to the Lease. Pursuant to a Lease Termination Agreement, dated November 5, 2021 between the Company and the Landlord, the Company’s existing lease with the Landlord, dated January 9, 2015 and amended on May 7, 2020, will terminate effective as of the day preceding the commencement date of the Lease, with no early termination fee.
The initial basic rent payable under the Lease will be $28,910.70 per month. The basic rent is subject to customary annual rent increases. The aggregate basic rent payable under the Lease during the 84-month term is $2.7 million. The Company is also obligated to pay as additional rent its proportionate share of Landlord’s operating expenses, including property taxes. The Lease requires the Company to deliver to the Landlord an irrevocable stand-by letter of credit in the amount of $50,000 as security in the case of default.
The foregoing summary of the Lease is subject to and qualified in its entirety by the full text of the Lease, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 1.02 | Termination of a Material Definitive Agreement. |
The information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.02.
| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit Number | Description | ||
| 10.1 |
Lease dated November 5, 2021 between Lantronix, Inc. and Discovery Business Center LLC |
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LANTRONIX, INC. | |||
| By: | /s/ Jeremy Whitaker | ||
|
Jeremy Whitaker Chief Financial Officer | |||
Date: November 8, 2021
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