Business Context and Reporting Period
Company: Monolithic Power Systems, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 23, 2008
Event: Entry into a Material Definitive Agreement (Lease Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It discloses a new long-term operating lease obligation for the Company's headquarters.
| Lease Term | Monthly Base Rent |
|---|---|
| Nov 1, 2009 – Oct 31, 2010 | $82,674.00 |
| Nov 1, 2010 – Oct 31, 2011 | $85,981.00 |
| Nov 1, 2011 – Oct 31, 2012 | $89,420.00 |
| Nov 1, 2012 – Oct 31, 2013 | $92,997.00 |
| Nov 1, 2013 – Oct 31, 2014 | $96,717.00 |
| Nov 1, 2014 – Oct 31, 2015 | $100,586.00 |
| Nov 1, 2015 – Oct 31, 2016 | $104,609.00 |
Additional Costs: The Company is responsible for certain building operating expenses and real estate taxes.
Material Changes
The Company entered into a new 84-month lease agreement for 55,116 square feet at its headquarters located at 6409 Guadalupe Mines Road, San Jose, CA. The lease term commences on November 1, 2009, and ends on October 31, 2016.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on financial outlook, or specific risk factors beyond the commitment to the lease payments and associated operating expenses.
Investor Verification Checklist
- Verify the total committed rent obligation over the 7-year term.
- Confirm the impact of the new lease on future operating cash flows starting November 2009.
- Review the attached Exhibit 10 (Lease Agreement) for details on operating expense caps or escalation clauses.
- Assess the necessity of the 55,116 square foot space relative to current and projected headcount.