Business Context and Reporting Period
Company: Accuray Incorporated
Filing Type: Form 8-K (Current Report)
Date of Report: June 20, 2014
Event: Entry into a Material Definitive Agreement (Seventh Amendment to Lease) for headquarters office space located at 1310 and 1320 Chesapeake Terrace, Sunnyvale, California.
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 lease amendment.
| Lease Term Extension | 8 years and 7 months (New expiration: December 31, 2023) |
|---|---|
| Base Rent (Year 1) | $272,678.40 per month |
| Rent Escalation | 3% annually |
| Early Termination Right | Available for 1320 Chesapeake Terrace premises only; exercisable on May 31, 2020 |
| Renewal Options | Two additional five-year options at prevailing market rates |
Material Changes Versus Prior Period
The filing does not provide comparative financial data or operational changes versus prior periods. The material change reported is the modification of the existing lease agreement (originally dated July 9, 2003) to extend the occupancy term and adjust rental rates.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking financial guidance or strategic outlook beyond the lease terms.
Risks and Contingencies: The filing notes the existence of an early termination right for a portion of the premises (1320 Chesapeake Terrace) exercisable on May 31, 2020. Future rent for renewal options is contingent on prevailing market rates at the time of exercise.
Key Facts for Investor Verification
- Verify the total annualized rent obligation starting at approximately $3.27 million ($272,678.40 x 12) and the impact of the 3% annual escalation on future operating expenses.
- Confirm the specific conditions and penalties associated with the early termination right for the 1320 Chesapeake Terrace premises.
- Review the full text of the Seventh Amendment to Lease (Exhibit 10.1) for any covenants or restrictions not summarized in the 8-K.
- Assess the strategic rationale for extending the lease term to 2023 given the company's long-term operational plans.