Business Context and Reporting Period
Company: Lantronix, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 16, 2005
Event: Creation of a direct financial obligation via a lease amendment.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. It specifically discloses a new long-term lease obligation:
- Lease Extension Term: August 1, 2005, to July 31, 2010 (5 years).
- Aggregate Basic Rent: $2,886,324 for the extension period.
- Additional Obligations: Proportionate share of Lessor's operating expenses; modified security deposit provisions.
Material Changes
The Company entered into a Third Amendment to its lease with Irvine Technology Partners III. Material changes include:
- Extension of the lease term by five years, moving the expiration date from July 31, 2005, to July 31, 2010.
- Adjustment of the basic rent payable.
- Modification of security deposit provisions.
- Specification of maintenance and repair responsibilities assigned to the Lessor.
- Provisions for tenant improvements to be completed by the Lessor.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of general business risks. The primary contingency noted is the binding financial obligation of the lease extension and the requirement to pay operating expenses.
Investor Verification Checklist
- Verify the total annualized rent cost derived from the $2,886,324 aggregate figure.
- Review the specific terms regarding the "proportionate share of operating expenses" to estimate total occupancy costs.
- Confirm the impact of the extended lease term on the Company's future cash flow projections.
- Examine the details of the tenant improvements to be funded by the Lessor.