SAN DIEGO, CA – Airgain, Inc. (NASDAQ:AIRG), a manufacturer of radio and TV broadcasting and communications equipment with a market capitalization of $75.1 million, has amended its corporate headquarters lease, extending its term and adjusting financial terms, as revealed in a recent SEC filing. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.
The company, which is listed on the Nasdaq Capital Market under the ticker AIRG, entered into a Third Amendment to Office Lease with Kilroy Realty (NYSE:KRC), L.P. This amendment extends the lease of their San Diego headquarters from its previous expiration date of November 30, 2025, to September 30, 2031. Notably, the agreement does not grant Airgain the option to extend the lease beyond this new expiration date.
According to the filing, the annual base rent for the space is set at $699,051, which breaks down to a monthly payment of $58,254 starting January 1, 2025. This amount is scheduled to increase by 3% annually beginning on January 1, 2026. Additionally, the company will benefit from a base rent abatement period from January 1, 2025, through October 31, 2025.
To secure the performance of its obligations under the lease, Airgain will maintain a letter of credit, currently amounting to $55,000, in favor of Kilroy Realty. This serves as collateral and is part of the amended lease terms.
The details provided in the 8-K filing indicate that the full text of the Lease Amendment will be included in Airgain's Annual Report on Form 10-K for the fiscal year ending December 31, 2024.
This lease amendment represents a long-term commitment by Airgain to its current headquarters location and provides a clear picture of its future real estate expenses. The company's current ratio of 1.92 indicates strong ability to meet short-term obligations, though InvestingPro analysis shows an overall WEAK financial health score.
The disclosure of this information is based on a press release statement, offering investors and stakeholders a transparent view of the company's financial obligations related to its corporate headquarters. For deeper insights into Airgain's financial position and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers this and 1,400+ other US equities.
In other recent news, Airgain, Inc. reported a 6% sequential increase in Q3 sales, amounting to $16.1 million, driven by robust demand for consumer embedded antennas and the launch of the AirgainConnect fleet for automotive applications. The company also noted a strategic shift toward comprehensive wireless solutions, targeting the burgeoning asset tracking and 5G connectivity markets. Despite facing headwinds in the enterprise market, Airgain remains confident about its long-term growth, forecasting a total addressable market increase from $1.1 billion in 2024 to $5.5 billion by 2028.
In the automotive sector, sales climbed to $2.5 million, buoyed by certifications from T-Mobile and AT&T. However, enterprise market sales fell to $6.7 million due to inventory constraints and a slowdown in embedded modem sales. Looking ahead, Airgain anticipates Q4 sales to range between $16.2 million and $18.2 million, with continued gross margin expansion.
The company is also preparing for two trials for the Lighthouse product to conclude in Q4, expecting initial revenue. Furthermore, Airgain is conducting approximately forty trials for the AirgainConnect fleet, primarily in the U.S.
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