Business Context and Reporting Period
This Form 8-K was filed by REED's, INC. on September 11, 2018, reporting a material definitive agreement entered into on the same date. The filing relates to the Company's relocation of its principal place of business to Norwalk, Connecticut.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. It details the following lease financial terms:
- Total Premises: 8,620 square feet at 201 Merritt 7 Corporate Park, Norwalk, Connecticut.
- Initial Phase (September 2018): 4,620 square feet at a monthly base rent of $9,240.
- Second Phase (On or after April 21, 2021): 4,000 square feet at a monthly base rent of $8,500.
- Rent Escalation: Base rent increases annually at a rate of $0.50 per square foot.
- Lease Type: Gross lease.
- Expiration: December 15, 2024.
Material Changes
The primary material change is the execution of a sublease agreement with Merritt 7 Venture L.L.C. (landlord) and GE Capital US Holdings, Inc. (sublessor) to facilitate the relocation of the Company's principal executive offices. The filing text does not provide comparative financial data against prior periods.
Guidance, Outlook, and Risks
Management Commentary: The Company expects to take possession of the initial 4,620 square feet in September 2018, with the remaining space becoming available on or after April 21, 2021.
Risks and Contingencies: The Sublease is subject to a master lease agreement and will terminate automatically upon the termination of the master lease. The full text of the Sublease will be filed as an exhibit to the Form 10-Q for the quarter ending September 30, 2018.
Investor Verification Checklist
- Verify the total annualized rent obligation based on the phased occupancy schedule and annual escalation rates.
- Review the master lease agreement referenced in the filing to understand the conditions under which the sublease could terminate automatically.
- Confirm the impact of the relocation on operating expenses in the upcoming quarterly reports.
- Check the Form 10-Q for the quarter ending September 30, 2018, for the complete text of the Sublease agreement.