Company: EACO
Filing Date: 2025-11-20
Form Type: 10-K
Source: 0001104659-25-114547
Chunk: 30

Company: EACO CORP
Filing Date: 2025-11-20
Form: 10-K
Item: Item 2
Chunk 30
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Item 2.  Properties

We have 51 sales offices and seven distribution centers located throughout the United States and in Canada and have one additional sales office in Asia located in the Philippines. We plan to open an additional international sales office in Chihuahua, Mexico in December 2025.

In September 2019, Bisco entered into a Commercial Lease Agreement (the “Hunter Lease”) with the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, our Chief Executive Officer, Chairman of the Board and majority shareholder. The Hunter Lease had a lease term that expired on August 31, 2029. Pursuant to the Hunter Lease, Bisco has leased from the Trust approximately 80,000 square feet of office and warehouse space located at 5065 East Hunter Avenue, Anaheim, California (the “Hunter Property”). The Company moved its corporate headquarters to the Hunter Property in March 2020. The initial base rent for the Hunter Lease was $66,300 per month, which increased by 2.5% annually over the term of the lease. On October 20, 2023, the Company purchased the Hunter Property from the Trust for a purchase price of $31,000,000 and terminated the Hunter Lease. The Hunter Property was purchased with cash, funded by the Company’s available cash accounts and liquidated securities. See Notes 2 and 10 of the Notes to Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report for further explanation.  The Company recently leased an additional 25,000 square feet of additional office and warehouse space in a building adjacent to the Company’s corporate headquarters from an independent third party.

Bisco also leases its Chicago area sales office and distribution center located in Glendale Heights, Illinois under an operating lease agreement (the “Chicago Lease”) from the Trust, which has a term that expires in May 2029. The initial base rent for this lease is $22,600 per month, which increases by 2.5% annually over the term of the lease.

All of our other properties are leased, consisting of sales offices and warehouse space. Leases of sales offices generally have a lease term of three years and leases of warehouse locations usually have a lease term of five to ten years. For additional information regarding our obligations under property leases, see Note 8 of the Notes to Consolidated Financial Statements, included in Part II, Item