Item 1.01. Entry into a Material Definitive Agreement.
On November 5, 2021, Solitron Devices, Inc. (the "Company" or "Solitron")
entered into the Second Amendment to Lease with LaBoheme Properties, Inc. (the
"Landlord"), effective as of November 3, 2021 (the "Lease Amendment"). The Lease
Amendment amends the Reinstatement and Amendment to Lease Agreement entered into
by and between Solitron and CF EB REO II LLC, dated October 6, 2014 (the
"Lease"). The Lease relates to the occupancy and use of the Company's 47,000
square foot facility located at 3301 Electronics Way, West Palm Beach, Florida
that was scheduled to expire on December 31, 2021. The property was sold to
LaBoheme Properties, Inc. subsequent to Solitron entering into the Lease who
then became the Landlord pursuant to such sale. As previously disclosed, the
Company acquired a facility and real estate in West Palm Beach, Florida in April
2021 and began making the necessary improvements to the property to relocate its
manufacturing operations and corporate headquarters. Due to circumstances beyond
its control, the Company is unable to complete the relocation of all of its
manufacturing operations and corporate headquarters by the end of the calendar
year so it entered into the Lease Amendment to extend the lease term over a
portion of the leased premises through February 28, 2022 (the "First Extension
Term") and extend the lease term over a portion of the leased premises through
March 31, 2022 (the "Second Extension Term"). Solitron will also be entitled to
use up to 20 parking spaces until the expiration of the First Extension Term and
will be entitled to use up to 10 parking spaces until the expiration of the
Second Extension Term. In consideration for the lease extension, Solitron will
convey the air conditioning unit for the property to the Landlord and will pay
rent of $3,000 per month in January and February 2022 and $1,500 for the month
of March 2022. The new monthly rent amounts will be significantly lower than the
current base rent of $38,808 per month, excluding sales tax.
Item 9.01. Financial Statements and Exhibits.
Exhibit
No. Description
10.1 Second Amendment to Lease, effective as of
November 3, 2021, between LaBoheme Properties,
Inc. and Solitron Devices, Inc.
104 Cover Page Interactive Data File (embedded within
the Inline XBRL document).
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