Business Context and Reporting Period
Company: Marchex, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 5, 2009
Event: Entry into a Material Definitive Agreement (Amended and Restated Lease).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It discloses a new long-term financial obligation related to office space.
| Lease Term | Details |
|---|---|
| Commencement | January 1, 2010 |
| Expiration | March 31, 2018 |
| Space | Approx. 52,000 sq. ft. (520 Pike Tower, Seattle) |
| Termination Fee | Approx. $1,400,000 (if terminated April 1, 2015) |
Fixed Rent Obligations (Annual)
- Year 1 (2010): $900,000
- Year 2 (2011): $1,200,000
- Year 3 (2012): $1,400,000
- Year 4 (2013): $1,500,000
- Years 5-6 (2014-2015): $1,600,000
- Years 7-8 (2016-2017): $1,700,000
Material Changes
The Company entered into a new lease agreement for its principal executive offices. This creates a direct financial obligation for fixed rent payments starting in April 2010, with escalating rates over an 8-year term.
Outlook, Risks, and Contingencies
- Extension Option: The Company has an option to extend the lease for one additional five-year period at fair market value.
- Termination Risk: The Company may terminate the lease early (April 1, 2015) subject to conditions and a termination fee of approximately $1,400,000.
- Management Commentary: No specific commentary on financial outlook or risks beyond the lease terms is provided in this filing.
Investor Verification Checklist
- Verify the Company's current cash position to ensure it can meet the escalating rent obligations starting in 2010.
- Confirm the total square footage requirements relative to the 52,000 sq. ft. leased to assess potential underutilization.
- Review the specific conditions required to exercise the termination option and the associated $1.4 million fee.
- Check subsequent filings for the full text of the Lease Agreement referenced as an exhibit.