Company: EACO
Filing Date: 2025-11-20
Form Type: 10-K
Source: 0001104659-25-114547
Chunk: 13

Company: EACO CORP
Filing Date: 2025-11-20
Form: 10-K
Item: Item 13
Chunk 13
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Item 13.  Certain Relationships and Related Transactions

Certain Relationships and Related Transactions

Since September 1, 2022, except as described below or under Item 11 (Executive Compensation), there has not been, nor is there any proposed transaction, where we (or any of our subsidiaries) were or will be a party in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of the Company’s total assets at year end for the last two fiscal years and in which any director, director nominee, executive officer, holder of more than 5% of any class of our voting securities, or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest.

On November 21, 2017, Bisco entered into the Chicago Lease with the Trust for the Glendale Heights Property, which consists of office and warehouse space in Glendale Heights, Illinois. The initial base monthly rent is $22,600, which is subject to a 2.5% annual increase. As of August 31, 2024, the Company leased the Glendale Heights Property under operating lease agreements with the Trust, which is a grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder. 

On July 26, 2019, the Company entered into the Hunter Lease Agreement with the Trust, for the lease of the Hunter Property, which houses the Company’s corporate headquarters. The Company completed its move to the headquarters located at the Hunter Property in March 2020. The term of the Hunter Lease commenced on September 2, 2019 and ended on October 20, 2023, when the Company purchased the Hunter Property as discussed below. The Hunter Lease had an initial monthly rental rate of $66,300, which was subject to annual rent increases of approximately 2.5% as was set forth in the Hunter Lease.

During fiscal 2025 and fiscal 2024, the Company paid approximately $321,000 and $436,000, respectively, of rent related to the Chicago Lease and Hunter Lease.

The term of the Hunter Lease ended on October 20, 2023, when the Company completed the purchase of the Hunter Property from the Trust for the amount of $31,000,000 in cash. The Company agreed to the Property Purchase primarily to utilize its cash position and to reduce its corporate overhead expenses. The Hunter Property is expected to continue to