Business Context and Reporting Period
Precision Optics Corporation, Inc. (POCI) filed a Form 8-K on June 2, 2025, reporting the entry into a material definitive agreement. The company is incorporated in Massachusetts and trades on the Nasdaq Stock Market under the symbol POCI.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on the terms of a new lease agreement.
Material Changes and Agreement Details
On June 2, 2025, the Company entered into a Lease Agreement with 550 King Street, LLC for approximately 19,590 rentable square feet in Littleton, Massachusetts. Key terms include:
- Term: Initial term of 7.5 years, with two options to extend for additional five-year periods.
- Commencement: Targeted for August 1, 2025, upon substantial completion of tenant improvements.
- Rent Structure: Base rent is abated for the first six months. The annual base rent for the first year is $361,435.50 ($30,119.63 per month), increasing by 3% annually thereafter.
- Additional Costs: The Company is responsible for a 7.22% pro-rata share of real estate taxes and operating expenses.
- Permitted Use: General office, laboratory, manufacturing, warehousing, and showroom.
- Termination Rights: If the Term Commencement Date does not occur by January 1, 2026 (excluding tenant delays), the Company may terminate the lease and receive a refund of all sums paid.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on financial outlook, or discussion of general business risks. The primary contingency noted is the potential delay in tenant improvements; if the Landlord fails to complete improvements by October 1, 2025, the Company is entitled to one additional day of abated rent for each day of delay.
Investor Verification Checklist
- Verify the actual completion date of tenant improvements against the October 1, 2025 deadline to assess potential rent abatement.
- Confirm the final "Term Commencement Date" to calculate the precise start of rent obligations.
- Review the full text of the Lease Agreement (Exhibit 10.1) for detailed definitions of operating expenses and real estate taxes.
- Monitor the company's cash flow to ensure it can support the new fixed cost of approximately $361,436 annually starting in the second half of the lease term.