NOTE 14 – GENERAL COMMITMENTS



On August 2, 2018, the Company entered into a purchase agreement with Launch Properties, LLC for the sale of the Company’s building located at 10900 Red Circle Drive, Minnetonka, MN for $10,000,000. The building currently includes the Company’s corporate administrative offices, as well as some operations for Transition Networks and JDL Technologies. The closing of the transaction was subject to several closing conditions, including the buyer’s ability to complete due diligence within 180 days and the buyer’s ability to obtain regulatory approval for its intended use of the property. The original due diligence period lapsed on January 29, 2019, and through two amendments to the original agreement, the due diligence period was extended to June 30, 2020, and the buyer met certain required obligations under these amendments. One of the conditions of the agreement and amendments included non-refundable deposits into an escrow account. As of June 30, 2020, the balance in this escrow account was $225,000 and is included within restricted cash within the condensed consolidated balance sheet. On July 28, 2020, the parties executed an agreement terminating the original purchase agreement. The $225,000 in earnest money in the escrow account was transferred to the Company.