Business Context and Reporting Period
This Form 8-K Current Report was filed by Quantum-Si Inc on June 18, 2021, with the report date of June 24, 2021. The filing discloses the entry into a material definitive agreement regarding a new facility lease.
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.
- Monthly Base Rent: Approximately $117,183.88 for the first 12 months.
- Rent Escalation: Subject to a 3% annual increase thereafter.
- Additional Rent: Company responsible for 23.74% of taxes, insurance, maintenance, and operating expenses.
- Security Deposit: $117,183.88 paid upon execution.
- Lease Term: Initial term of 6 years and 4 months, commencing September 1, 2021.
- Extension Option: One additional 5-year period available at fair market rent.
Material Changes
The primary material change is the execution of a Lease Agreement for approximately 25,586 rentable square feet on the 4th floor of 5510 Morehouse Drive, San Diego, California. This facility will serve as the Company's product development and operations center. This represents a new direct financial obligation and off-balance sheet arrangement.
Outlook, Risks, and Contingencies
The lease contains customary events of default, including nonpayment of rent, uncured breaches of covenants, abandonment of the premises, assignment to the benefit of creditors, and bankruptcy or insolvency events. In the event of default, the Landlord may terminate the lease and recover all rent payments due for the remainder of the term, plus additional costs and expenses. The filing notes that the Company is an emerging growth company.
Investor Verification Checklist
- Verify the Company's current cash position to ensure it can cover the $117,183.88 monthly rent and the initial security deposit.
- Review the full text of the Lease Agreement (Exhibit 10.1) for specific definitions of "Additional Rent" and operating expense caps.
- Assess the impact of the 3% annual rent escalation on future operating expenses.
- Confirm the status of the facility build-out and the September 1, 2021, commencement date.