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Subsequent Events
6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events

Note 11 – Subsequent Events

 

On July 3, 2024, the Company completed a purchase agreement (the “Purchase Agreement”) with a third-party purchaser (the “Buyer”) to sell the Company’s warehouse. The purchase price for the Property is $7,460,250. The Company received $5,664,939 after $1,795,310 was charged to pay off existing loans, broker commissions, county taxes, title / escrow charges, and existing tenant security deposit. Within this adjusted purchase payment, the Company paid off the Golden Sunrise Investment LLC loan with the principal and interest amount of $1,327,353. The Company is currently calculating the accounting effects of this transaction.

 

On July 8, 2024, the Company entered into a Standard Industrial/Commercial Single-Tenant Lease (the “Lease”) with the Veena Asset Management, LLC to lease the same Focus Universal premises located at 2311 East Locust Court, Ontario, CA 91761 back for one year commencing at the close of escrow of the Purchase Agreement and ending on July 31, 2025 for 14,004 square foot office and warehouse space. Base monthly rent is $16,804, with a total of $58,812 due upon execution of the lease.

 

On July 9, 2024, the Company repaid the loans it entered into with the Company’s CEO with the principal and interest repayment amounts of $820,501.

 

On July 19, 2024, the Company paid off a third-party loan with the principal and interest amount of $50,500.

 

On August 5, 2024, the Company and the segment manager of AT Tech Systems LLC reached a tentative oral agreement to terminate his employment and the employment of his two direct report team members. While the negotiations are still tentative, the Company expects there will be a termination or severance cost of at most $40,000. Management is currently evaluating how to replace the personnel necessary to run AT Tech Systems LLC.

 

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determined that there were no other subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.