Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v2.4.1.9
Commitments and Contingencies
6 Months Ended
Jan. 31, 2015
Commitments and Contingencies  
Commitments and Contingencies

Note 9—Commitments and Contingencies

 

In the ordinary course of business, the Company may become a party to lawsuits involving various matters. The Company is unaware of any such lawsuits presently pending against it which individually or in the aggregate, are deemed to be material to the Company’s financial condition or results of operations.

 

On December 31, 2014, the Company entered into a Lease Agreement (the “Lease Agreement”).  Pursuant to the Lease Agreement, the Company has leased certain premises of approximately 33,928 rentable square feet located at 5820 Nancy Ridge Drive, San Diego, California (the “Premises”) to serve as the Company’s corporate headquarters and research and development laboratory. The term of the Lease Agreement is expected to commence on or about October 1, 2015 (the “Commencement Date”), and expires one hundred twenty (120) months after the Commencement Date (the “Term”). The Company has an option to extend the Term for an additional five (5) years, if notice is given within 12 months prior to the expiration of the Term. The Company also has the right to terminate the Lease (“Termination Right”) with respect to the entire Premises only as of expiration of the 84th month after the Commencement Date (“Early Termination Date”) so long as the Company delivers to the Landlord a written notice of its election to exercise its Termination Right no less than 12 months in advance of the Early Termination Date. The Lease Agreement provides for base rent at $2.65 per rentable square feet, subject to a 3% rate increase on each annual anniversary of the first day of the first full month during the Term of the Lease Agreement. The “Rent Commencement Date” shall be the date that is 12 months after the Commencement Date. In addition, the Company is required to share in certain operating expenses of the Premises. In December 2014, pursuant to the Lease Agreement, the Company delivered a security deposit of approximately $90,000.