Business Context and Reporting Period
Company: Harvard Bioscience, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 22, 2010
Event: Entry into a Material Definitive Agreement (Amendment No. 2 to Lease Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on a lease agreement amendment.
| Item | Details |
|---|---|
| Lease Term Extension | June 1, 2010 to May 31, 2017 |
| Additional Space | 9,200 square feet |
| Initial Monthly Base Rent | $21,820.83 (plus operating expenses and taxes) |
| Future Monthly Base Rent | $25,654.17 (plus operating expenses and taxes) upon completion of landlord work |
| Rent Escalation | Annual increases as set forth in the amendment |
Material Changes
The Company amended its existing lease for its headquarters, office, light manufacturing, and warehouse space in Holliston, Massachusetts. The amendment extends the lease term by seven years and adds 9,200 square feet of space. The agreement is subject to the Company approving detailed design drawings for work to be performed on the premises.
Outlook, Risks, and Unusual Items
- Termination Option: The Company retains an option to terminate approximately 15,000 square feet of space currently subleased to two sub-tenants. This option becomes exercisable upon 120 days' written notice after the twelfth month of the Extended Term.
- Contingency: The higher rent rate ($25,654.17) is contingent upon the Landlord completing certain work on the premises.
- Reference: The summary is qualified in its entirety by reference to the full text of Amendment No. 2 (Exhibit 10.1).
Investor Verification Checklist
- Review Exhibit 10.1 for the specific schedule of annual rent increases.
- Verify the status of the "detailed design drawings" required to finalize the amendment.
- Assess the financial impact of the increased monthly rent and operating expenses on future cash flows.
- Confirm the current status and lease terms of the two sub-tenants occupying the 15,000 square feet subject to the termination option.