CS Disco, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by CS Disco, Inc. on May 19, 2022. The filing discloses the entry into a material definitive agreement regarding the company's new corporate headquarters.
Key Financial Metrics and Obligations
The filing details a new long-term lease obligation rather than historical financial performance metrics such as revenue or profit.
- Lease Term: Commences approximately May 31, 2022, through July 31, 2028.
- Initial Base Rent: Approximately $168,000 per month.
- Maximum Base Rent: Increases annually to approximately $194,000 per month.
- Security Deposit: Approximately $307,000.
- Additional Costs: Company is responsible for its proportionate share of building operating expenses.
Material Changes
The primary material change is the execution of a sublease agreement for approximately 46,250 rentable square feet at One Eleven Congress in Austin, Texas. This represents a significant expansion of the company's physical footprint and a new fixed financial commitment.
Outlook and Management Commentary
Management anticipates the lease commencement on or about May 31, 2022. The agreement includes a right of first refusal for certain additional adjacent office space. The full text of the lease is expected to be filed as an exhibit to the Quarterly Report on Form 10-Q for the quarter ending June 30, 2022.
Investor Verification Checklist
- Verify the exact commencement date of the lease and any potential rent abatement periods.
- Review the upcoming Form 10-Q for the full lease agreement text and specific operating expense calculations.
- Assess the impact of the new monthly rent obligation on the company's cash flow projections.
- Confirm the status of the security deposit payment.