Business Context and Reporting Period
Company: Health Catalyst, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 25, 2020
Event: Entry into a Material Definitive Agreement (Lease Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or debt levels. It discloses specific financial obligations related to a new lease agreement:
- Monthly Base Rent: Approximately $240,000 per month during the Initial Term.
- Additional Costs: Proportionate share of taxes and building/common area operating expenses.
- Lease Term: Approximately 11 years (Initial Term), commencing on or about January 1, 2021.
- Extension Options: Two additional periods of five years each.
Material Changes
The Company entered into a new Lease Agreement with Riverpark Six LLC for approximately 118,000 square feet of office space in South Jordan, Utah. This new facility is intended to replace the Company's current office space in Salt Lake City, Utah, where the existing lease expires on December 31, 2020.
Outlook, Risks, and Contingencies
Management Commentary: The filing indicates a strategic move to consolidate or relocate operations to a larger facility in South Jordan, Utah, effective early 2021.
Subleasing Rights: The Company retains the right to sublease all or a portion of the Premises, subject to certain terms and conditions.
Disclosure Note: The description of the Lease is qualified by reference to the full text of the agreement, which will be filed as an exhibit to the Form 10-Q for the quarter ending March 31, 2020.
Investor Verification Checklist
- Verify the total committed lease obligation over the 11-year Initial Term and potential extension periods.
- Review the full Lease Agreement (exhibit to the upcoming Form 10-Q) for specific details on operating expense calculations and termination clauses.
- Assess the impact of the $240,000 monthly rent on future operating expenses starting January 2021.
- Confirm the timeline for vacating the current Salt Lake City premises to avoid overlapping lease costs.