eHealth, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by eHealth, Inc. on August 17, 2017. The report details the entry into a material definitive agreement regarding the Company's office space in Utah.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on a specific lease amendment.
Material Changes and Agreement Details
On August 17, 2017, eHealthInsurance Services, Inc., a wholly-owned subsidiary of eHealth, Inc., entered into Amendment No. 1 to its Office Lease with SLC Lake Pointe SPE LLC. Key terms include:
- Lease Extension: The lease term is extended for 63 months, commencing January 1, 2018, and expiring March 31, 2023.
- Option: The Company has an option to extend the lease for an additional five-year period at the end of the extended term.
- Expansion Rights: The Company may request additional space on the third and fifth floors of the building if available.
- Financial Inducements: The Landlord provided an improvement allowance of $222,640 and a renewal allowance of $55,660.
Rent Schedule (Monthly Base Rent)
| Period | Monthly Base Rent |
|---|---|
| January 1, 2018 to March 31, 2018 | Abated |
| April 1, 2018 to December 31, 2018 | $51,021.67 |
| January 1, 2019 to December 31, 2019 | $52,552.32 |
| January 1, 2020 to December 31, 2020 | $54,128.89 |
| January 1, 2021 to December 31, 2021 | $55,752.75 |
| January 1, 2022 to December 31, 2022 | $57,425.34 |
| January 1, 2023 to March 31, 2023 | $59,148.10 |
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or discussion of general business risks. The primary obligation created is the direct financial commitment to the lease payments outlined above.
Key Facts for Investor Verification
- Verify the total committed lease obligation over the 63-month extended term.
- Confirm the utilization of the $222,640 improvement allowance and $55,660 renewal allowance.
- Monitor the Company's decision regarding the optional five-year extension at the end of 2023.
- Review the full text of Exhibit 10.1 for complete legal terms and conditions.